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Friday, 27 March 2020 23:17

Boyd Group Services Inc. Gives Updates on COVID-19 Pandemic

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Boyd Group Services Inc. (the Boyd Group) announced its business has been identified by the Cybersecurity and Infrastructure Security Agency in the U.S. as an essential critical infrastructure, as well as in Ontario’s list of Essential Workplaces.

According to the company, in order to continue offering service to its customers, insurance clients and government authorities, all locations remain open at this time; however, certain locations may be closed in the future to comply with local mandatory government orders.

 

Since March 18, the Boyd Group has experienced what it calls significant COVID-19-related reductions in demand, and estimates demand to be down in the range of 40% to 50% from normal levels.

 

As a result, the company is responding by beginning to implement temporary staffing reductions, which will take place over the next few weeks.

 

Boyd has fully drawn on available financing facilities, other than swing lines of US$40 million and an accordion feature of US$275 million, providing significant available cash liquidity of approximately CDN$575 million.

 

Additionally, as was previously disclosed, while in the long term, the company will continue to pursue accretive growth through a combination of organic growth as well as acquisitions and new store development, the immediate focus is on preserving financial flexibility as it deals with the uncertain impacts of COVID-19.

 

Boyd is therefore taking a near-term pause on closing and funding acquisitions and all non-essential capital expenditures.


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