Sales at Boyd Group increased 33.1 percent in 2013

Winnipeg, Manitoba — March 21, 2014 — Sales for Boyd Group increased by 33.1 percent in 2013 compared to 2012, according to a statement released today by Boyd Group Income Fund. The company’s complete fiscal 2013 financial statements and MD&A have been filed at sedar.com.

“Last year truly was an incredible year for the Boyd Group on multiple fronts: in terms of organic growth, executing on our growth strategy and taking prudent steps to position the Company for enhanced profitability and continued growth in the future,” said Brock Bulbuck, President and Chief Executive Officer of Boyd Group. “The successful completion of the multi-location Glass America and Hansen Collision and Glass acquisitions combined with steady increases in same-store sales and the continued addition of single locations contributed to strong year-over-year sales growth. Additionally, the completion of our bought deal equity financing and our new credit facility together increased our financial flexibility and put Boyd in a strong position to continue to execute on accretive opportunities to achieve our growth objectives. And finally, our unitholders were rewarded with a 103 percent increase in unit price over the course of the year, along with an increase in monthly distributions that came into effect in November and contributed to the Fund’s addition to the S&P/TSX Canadian Dividend Aristocrats Index.”

Total sales increased by 33.1 percent to $578.3 million, compared with sales of $434.4 million for the same period last year. The $143.8 million increase was due largely to sales generated from 33 new single locations, six Pearl locations, 11 The Recovery Room locations, 14 Autocrafters locations, and 25 Hansen locations which combined contributed $96.6 million of additional sales. With the acquisition of Glass America, the glass business contributed incremental sales of $24.6 million over the $22.2 million contributed last year. Same-store sales, excluding the combined glass business, increased $16.0 million or 4.1 percent and increased a further $10.1 million due to translation of same-store sales at a higher U.S. dollar exchange rate.

Sales in Canada were $79.8 million, an increase of $5.6 million or 7.6 percent, over the same period in 2012. The increase was driven by increased same-store sales of $4.0 million or 5.5 percent plus $2.4 million of sales from one new location partially offset by the closure of an underperforming glass facility that decreased sales by $0.8 million.

Sales in the U.S. were $498.5 million, an increase of $138.2 million or 38.4 percent over the same period in 2012. Increased sales resulted from incremental sales from new locations, which together contributed additional sales of $94.1 million. The new combined glass business contributed $24.6 million of incremental sales. Same-store sales growth of 3.8 percent increased $12.1 million. Sales also increased by $10.1 million due to the strengthening U.S dollar, offset by $2.5 million in lost sales due to the closure of three underperforming facilities in 2012.

“We expect the momentum gained by the Company in 2013 to continue into 2014,” says Bulbuck. “With three single-location acquisitions already completed in 2014, we are on track to meet our 6 percent to 10 percent single location growth target for 2014. And while the market for larger multi-shop operator (‘MSO”) acquisitions is becoming more competitive, we continue to believe that there are opportunities for accretive MSO acquisition growth. We intend to remain disciplined and selective in pursuit of those opportunities, and the increased borrowing capacity afforded by our expanded credit facility, combined with our strong balance sheet, will allow us to continue to execute on these opportunities as they arise. We remain confident in the ability of our business model to increase market share in both Canada and the U.S. through strategic acquisitions, single location growth and organic growth from existing locations, and to continue to deliver solid value for our unitholders going forward.

“Looking ahead to our first quarter, the unusually severe winter weather conditions experienced in both Canada and many parts of the U.S. have increased demand for our collision services in many of our markets, however this has been somewhat offset by weather related production challenges and business interruption that we have also experienced in multiple markets.We need to also bear in mind the seasonality of some of our operating expenses, including payroll taxes, which are typically highest during the first quarter, as well as the seasonality of our expanded glass business, which experiences its lowest demand in the winter months.”

For more information, please visit boydgroup.com


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