Boyd Group reports quarterly sales increase, but same-store sales decline

Jan. 1, 2020
Boyd Group Income Fund reported its

financial results for the three and nine-month periods

ended September 30, 2012.

Boyd Group Income Fund reported its financial results for the three and nine-month periods ended September 30, 2012. Highlights include adding 28 new locations since the end of 2011, a 12.1 percent sales increase to $109.1 million, and a same-store sales decrease of 0.8 percent.

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For the three-months ended September 30, 2012, sales increased by 12.1 percent to $109.1 million, compared with sales of $97.3 million for the same period last year. The $11.7-million increase was driven largely by sales from Master Collision, Pearl Auto Body, and 18 other new collision repair locations opened since July 1, 2011.

Sales in Canada were $17.3 million for the three months ended September 30, 2012, reflecting a 4.2 percent decline from $18.0 million for the same period in 2011. The decline is primarily due to a same-store decrease of 6.5 percent, or $1.1 million, due to mild winter weather conditions earlier in the year that reduced work-in-process and pent-up market demand, which were then followed by dry spring and summer conditions, further reducing claims from normal levels.

Sales in the United States were $91.8 million, an increase of $12.5 million or 15.8 percent, over the same period in 2011. The increase resulted from $4.8 million of sales from Master Collision, $2.8 million from Pearl Auto Body, $4.2 million from 15 new locations, $0.4 million from 0.5 percent same-store sales growth, and $1.2 million from favourable currency translation of same-store sales, offset by $0.9 million in lost sales from the closure of three underperforming locations.

"We are pleased to report a 12.1 percent growth in revenues during the quarter on the back of our continued execution of our growth strategy," said Brock Bulbuck, president and chief executive officer of the Boyd Group. "Adjusted EBITDA also grew by 17.1 percent reflecting the positive contribution of our multi-location acquisitions and single location growth. However, we recorded lower adjusted distributable cash for the quarter, primarily due to changes in working capital, increased cash taxes, and higher maintenance capital expenditures, leading to a 75.9 percent payout ratio for the quarter and 59.1 percent year-to date. While market conditions continued to be impacted by mild and dry weather conditions, resulting in an overall modest same-store sales decline for the quarter, we continue to believe in the strength of our operations and the opportunities in our industry. As such, we are also pleased to announce that the Board of Trustees has approved a 4.0 percent increase in our monthly distributions to $0.039 per unit, or an annualized distribution of $0.468 per unit, beginning with our November 2012 distribution. This reflects our continued confidence in our business and our commitment to being a growth company that offers an attractive payout."

Adjusted earnings before interest, income taxes, depreciation and amortization (adjusted EBITDA) for the third quarter were $7.5 million, or 6.8 percent of sales, compared with adjusted EBITDA of $6.4 million, or 6.6 percent of sales, for the same period a year ago. The 17.1 percent increase in adjusted EBITDA was primarily the result of EBITDA contribution from Master, Pearl, and other new locations and from improved gross margin, but was offset by $0.1 million in foreign currency losses.

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