Monday, 30 April 2012 21:43

Boyd Group Reports Record Sales in 2011

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The Boyd Group Income Fund reported record sales in 2011 thanks to several acquisitions made throughout the year that added $94.1 million to the company's top line. The company also reported a same store sales increase of 6.0 percent, a more important indicator of business conditions.

Brock Bulbuck, President and Chief Executive Officer of the Boyd Group, said, "The addition of Cars Collision to our operations had a strong positive impact on our results for the year, as both the performance and integration of this business continues to meet our expectations. We also saw meaningful positive same-store sales growth in 2011 despite the headwinds from persistent challenging market conditions as well as a difficult comparable period in 2010 given a significant hail storm experienced in the Arizona market late in the year. Miles driven continued its trend downwards this past year due, in part, to elevated levels in unemployment and gas prices. However, the merits of our business model and related strong industry position and geographical diversity have proven to counter this downside."

"We added nine new collision repair centers in 2011, in-line with our stated goal of adding eight to 13 new locations per year as part of our unit growth strategy," said Bulbuck.

Fourth Quarter

Sales for the three-months ended December 31, 2011 increased by 24.4 percent to $100.5 million, compared with sales of $80.8 million for the same period last year. After adjusting for the impact of foreign currency, overall same-store sales decreased 0.5 percent when compared to the prior period, however the company said a significant hail storm in the Arizona market in 2010 increased sales in that quarter by an estimated $3.9 million. After removing the impact of this unusual hail in 2010, same-store sales increased $3.5 million or 4.7 percent.

Fourth quarter sales in Canada increased 1.6 percent to $19.1 million primarily from new locations. Same store sales in Canada showed a modest decline of $0.1 million or 0.5 percent for the quarter.

Fourth quarter sales in the U.S. increased 31.3 percent to $81.4 million benefitted by a $19.4 million sales boost from new locations. After adjusting for the impact of foreign currency and the Arizona hail storm, same-store sales increased by $3.6 million, or 6.3 percent compared with the same period in 2010.

Earnings before interest, income taxes, depreciation and amortization, adjusted for several one-time and non- operational items, totaled $7.6 million, or 7.6 percent of sales, compared with Adjusted EBITDA of 8.7 percent of sales for the same period in 2010.

Full Year

Companywide sales for the full-year ended December 31, 2011 increased by 38.9 percent to $357.0 million thanks to $94.1 million in sales from newly acquired locations including True2Form, Cars Collision, and sixteen other facilities. Excluding the effect of foreign currency translation, same-store sales grew by 6.0 percent (8.0 percent after removing the impact of Arizona hail in 2010).

Full year sales in Canada were $75.4 million, an increase of $3.3 million, or 4.6 percent. Same store sales in Canada increased by $2.9 million or 4.1 percent.

Full-year sales in the U.S. totaled $281.6 million, an increase of $96.7 million, or 52.2 percent, over the prior year. Sales in the U.S. included sales of $81.1 million from 37 True2Form locations, $34.0 million from 28 Cars Collision locations, as well as $11.6 million from new locations.

Excluding the impact of currency translation, same-store sales in the U.S. increased by $10.1 million, or 6.9 percent, over the same period in 2010 (9.9 percent after removing the impact of Arizona hail in 2010).

Adjusted EBITDA totaled $24.4 million, or 6.8 percent of sales, compared with Adjusted EBITDA of $18.8 million, or 7.3 percent of sales, during the prior year.

Bulbuck said, "Along with our focus on growth through the acquisition of other multi-location businesses, our goal in 2011 was to also add eight to 13 new single collision repair locations. In 2012, and for the foreseeable future, our goal for the addition of new single repair locations will be in the range of 6-10 percent new unit growth annually. The nine new locations that we added in 2011 represented 7 percent growth in this respect and the 6-10 percent growth target will translate into 11-18 new single locations for 2012. Additionally, an important initiative we have undertaken for 2012 is the standardization of our management information systems. The conversion of a collection of systems being utilized today into a common management platform will better position our business for the integration of future acquisitions as well as help to increase our operational and administrative efficiency. "

"The extremely warm winter weather conditions seen in late 2011, which has continued into 2012, is in contrast to the strong winter that helped drive our results last year," continued Mr. Bulbuck. "This undoubtedly will have some impact on our first and perhaps second quarter results for 2012. Notwithstanding the mild winter, the strength in our core business is very encouraging as we continue to increase our market share and expand throughout the U.S. with key strategic acquisitions and single location unit growth."

The Fund also announced that effective March 22, 2012, Tim O'Day, has been appointed to the Board of Trustees of the Fund. It is also the intention of the Boyd Group to add one to two additional independent Trustees to the Board in 2012. O'Day joined Gerber Collision & Glass in February 1998. With Boyd Group's acquisition of Gerber in 2004, he was appointed Chief Operating Officer for Boyd's U.S Operations. In 2008, he was appointed President and Chief Operating Officer for U.S. Operations. Earlier in his career, he was with Midas International, where he was elevated to Vice President Western Division, responsible for a territory that encompassed 500 Midas locations. O'Day is also a Certified Public Accountant.

The Boyd Group operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 14 U.S. states under the trade names Gerber Collision & Glass, True2Form, and Master Collision Repair.