The Boyd Group (TSX: BYD.TO), the Canada-based parent company of Gerber Collision & Glass, reported in mid-May that its first quarter sales were down 1% compared to the same period a year earlier, impacted in part by one fewer production day in the quarter this year.
The company reported same-store sales, pulled down in part by 58 newer stores that were not in operation for the full comparative period, 2.8% lower compared to Q1 2024, and the company posted a net loss of $2.6 million (CAN) for the first quarter compared to net earnings of $8.4 million in the same period of 2024.
“Market dynamics, including continuing declines in claims volume and overall economic uncertainty, continue to impact demand for services,” incoming CEO Brian Kaner said.
But crediting such factors as internalization of more scanning and calibration work, improved glass margins, and a first quarter hiring freeze of non-production employees, the company said its gross profit for the first quarter was 46.2%, up from 44.8% in the fourth quarter of last year.
“Operating expenses for the first quarter of 2025 were $278.7 million, or 35.8% of sales compared to $270.9 million or 34.4% of sales in the same period of 2024,” Jeff Murray, executive vice president and CFO for Boyd said during the company’s quarterly earnings call. “Operating expenses as a percentage of sales was negatively impacted by the decline in same-store sales, and the new locations, which contributed positively to sales, but had a higher operating ratio of 38.4%.”
The company added nine collision shop locations—six start-ups and three acquisitions—in the first quarter.
During his final quarterly earnings report as CEO before his retirement at the end of May, Tim O’Day expressed his gratitude to the company’s shareholders, clients, trading partners, board and employees.
“I’m immensely proud of what we’ve accomplished, and truly appreciate the confidence you have placed in me and our leadership team throughout this journey,” O’Day said.
O’Day had been with Gerber for six years when the company was acquired by Boyd in 2004, and served in various leadership roles including becoming chief operating officer for all of Boyd’s North American collision operations in 2017, before becoming CEO in 2020.
During the company’s annual meeting that followed the earnings call, Dave Brown, independent chair of the company’s Board of Directors, praised O’Day for his contributions and leadership “during his 27 years of dedicated service to the Boyd-Gerber group of companies.”
“Tim served the company with passion, dedication and perseverance, and we will really miss Tim,” Brown said.
Kaner, who succeeds O’Day as CEO, joined Boyd in October of 2022 as COO for Boyd’s collision operations. He was previously CEO of Pep Boys & Icahn Automotive Services.
“Tim leaves Boyd in great hands,” Brown said. “We were very excited that Brian agreed to accept the position [as CEO], and very much look forward to working with Brian in his new role. I can say we are extremely confident that Brian is the right person and will serve the company very well.”
Boyd is the second-largest shop operator in North America, behind only Caliber Collision, ending Q1 2025 with 859 U.S. shops. It also operates 126 shops in Canada under the trade names Boyd Autobody & Glass and Assured Automotive. Kaner has said the company holds about 6% of the total market share in the industry, and the company’s five-year growth plans would help it reach about 10% market share by 2029.
