By Jeff Sanford
Winnipeg, Manitoba -- November 11, 2015 -- Boyd Group Income Fund has reported its financial results for the quarter ending September 30, 2015. The numbers are impressive and confirm that the company continues to execute on its goal of consolidating a broad swath of the North American collision repair industry.
According to the latest numbers Boyd is growing by leaps and bounds. The company added eleven new stores in the quarter. The increase of the number of outlets in the chain led to an increase in sales of 38.1 percent. Total gross sales for Boyd went from to $301.1 million from $218.1 million in 2014.
But the growth did not come just from expansion of the network. Sales are also increasing at individual stores, which is a good sign of a healthy business. Same-store sales increased 7.3 percent over the same period last year. This is corroboration of what has been suggested through anecdote – in general, the collision repair industry is doing solid business this year.
All-in, adjusted earnings (on an EBITDA basis) increased 56.7 percent to $26.4 million. This compared to just $16.9 million in the same period in 2014. Adjusted net earnings increased to $10.3 million. This compares very favourably to the $6.8 million posted in the same period in 2014.
Some company details noted in the report:
- Boyd added eight single locations to its network of over 300 US locations. The company expanded its footprint to 19 US states.
- The company also announced it would increase the amount of cash distributed per unit 2.4 percent to $0.504. This is up from $0.492 distributed per unit in the same period last year.
"In the third quarter of 2015, we continued to progress in line with our strategy by generating meaningful organic growth from same-store sales, combined with contributions from acquired locations," said Brock Bulbuck, President and CEO of Boyd Group. "Our continued success has been the result of our focus on our three-pronged growth strategy and our disciplined approach to operations and financial management. The addition of 12 single store locations since our last report indicates that we are within our 6 to 10 percent target for single location growth for the year and expect more to come in the next quarter.”
The CEO also noted that with more than $375 million in available cash and credit facilities the company has a lot of “dry powder” to deploy to continue the current momentum in acquisitions.
The company continued to add new locations and reached an important milestone in early November with the announcement of the 300th Boyd facility in the US.
Since then, Boyd has opened two collision centres in the state of Washington, one in Indiana and another in Florida, putting the total of US facilities at 304. The company also operates collision centres in five Canadian provinces.