Boyd Group Income Fund Reports Fourth Quarter and Full Year 2017 Results

President of The Boyd Group, Brock Bulbuck.
By CRM Staff
 
Winnipeg, Manitoba — March 21, 2018 — Boyd Group Income Fund reported its financial results for the three and twelve-month periods ending December 31, 2017. The Fund’s fourth quarter 2017 financial statements and MD&A have been filed on SEDAR. 
 
2017 Highlights
  • Sales increased by 13.1 percent to $1.6 billion from $1.4 billion in 2016, including same-store sales increases of 1 percent. After adjusting for one less selling and production day, same-store sales increased 1.4 percent on a per day basis.
  • Adjusted EBITDA increased 17.2 percent to $145.6 million, compared with $124.3 million in 2016, representing approximately a 0.3 percent or 30 basis point improvement in Adjusted EBITDA margin.
  • Adjusted net earnings increased 11.8 percent to $58.8 million compared with $52.6 million in 2016 and adjusted net earnings per unit increased 9 percent to $3.182 compared with $2.920 in 2016.
  • Added 105 locations, including the strategic acquisition of Assured Automotive, which represented 26 percent growth in new locations.
  • Completed the early redemption and cancellation of the 5.25 percent Convertible Unsecured Subordinated Debentures due October 31, 2021.
  • Increased revolving credit facility to U.S. $300 million, with an accordion feature that can increase the facility to a maximum of U.S. $450 million.
  • Increased monthly distributions by 2.3 percent in November 2017, bringing the distributions to an annualized amount of $0.528 per unit from $0.516 per unit.
  • Unit price increased 17.9 percent from $85.56 to $100.89 during the year.
  • Financial results in the third quarter were meaningfully impacted by Hurricane Irma, and to a lesser degree Hurricane Harvey, with an estimated impact of $5 million on sales and $2.8 million on Adjusted EBITDA.
  • Currency negatively impacted same-store sales by $25 million, adjusted EBITDA by approximately $2.6 million, adjusted net earnings by approximately $1.6 million, and adjusted earnings per unit by approximately $0.086.
Outlook
 
“In 2017 we faced many significant headwinds including mild and dry winter weather followed by business interruptions from severe summer hurricane storms, an unfavourable currency environment and an ongoing technician shortage, which particularly impacted same-store sales growth in the fourth quarter,” says Brock Bulbuck, chief executive officer of the Boyd Group. “Despite this, we were again successful at executing against our goals, achieving record levels of revenue and Adjusted EBITDA and growing to over 500 locations.”
 
Bulbuck adds, “In the fourth quarter of 2017, our results were impacted by the industry-wide technician shortage, which hampered our ability to meet the overall demand for our services in the majority of our markets and therefore negatively impacted same-store sales growth. We have been working to address this shortage with a number of initiatives to attract new technicians and increase retention. To date, this has translated into improved same-store sales growth in the first quarter, moving towards, but not yet reaching our historical levels of average quarterly same-store sales growth . . . In terms of new location growth, we continue to see many opportunities to add new centres and we have the capacity, with approximately $400 million in ‘dry powder,’ to act on opportunities. In summary, we are confident that in 2018 we will continue to progress towards our stated goal of doubling the size of our business on a constant currency basis from 2015 to 2020.”
 
For more information about Boyd, please visit boydautobody.com.
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