Boyd Group Services Inc. Reports Third Quarter 2024 Results
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- Sales under pressure due to continuing soft market conditions-
WINNIPEG, MB, Nov. 5, 2024 /CNW/ - Boyd Group Services Inc. (TSX:BYD) ("BGSI", "the Boyd Group", "Boyd" or "the Company") today announced the results for the three and nine month periods ended September 30, 2024. The Boyd Group's third quarter 2024 financial statements and MD&A have been filed on SEDAR+ (www.sedarplus.ca). This news release is not in any way a substitute for reading Boyd's financial statements, including notes to the financial statements, and Boyd's Management's Discussion & Analysis.
Results and Highlights for the Third Quarter Ended September 30, 2024:
Sales increased by 2.0% to $752.3 million from $737.8 million in the same period of 2023 with same-store sales1 declining 3.5%. The third quarter of 2024 recognized one additional selling and production day when compared to the same period of 2023, which increased selling and production capacity by approximately 1.6%. Sales were modestly impacted by hurricane activity, with an estimated negative impact of less than $4.0 million during the third quarter
Gross Profit increased by 2.9% to $343.6 million or 45.7% of sales from $333.8 million or 45.2% of sales in the same period in 2023
Adjusted EBITDA1 decreased 14.7% to $80.1 million, or 10.7% of sales, compared with Adjusted EBITDA of $94.0 million, or 12.7% of sales in the same period of 2023
Adjusted net earnings1 decreased to $3.2 million, compared with $21.5 million in the same period of 2023 and adjusted net earnings per share1 decreased to $0.15, compared with $1.00 in the same period of 2023
Net earnings decreased to $2.9 million, compared with $20.5 million in the same period of 2023 and net earnings per share decreased to $0.13, compared with $0.95 in the same period of 2023
Debt, net of cash before lease liabilities increased from $481.0 million at June 30, 2024 to $486.2 million at September 30, 2024
Declared third quarter dividend in the amount of C$0.15 per share
Added 10 collision repair locations, including eight through acquisition and two start-up locations
Subsequent to Quarter End
Added five collision repair locations, including four through acquisition and one start-up location
Announced a dividend increase of 2.0% to $0.612 per share annualized from $0.600 per share annualized
Announced the temporary closure of 47 locations in the states of Florida, Georgia, North Carolina and South Carolina due to Hurricane Helene, followed by the temporary closure of 52 locations in the state of Florida as a result of Hurricane Milton
"Third quarter results continued to be impacted by low claims volumes. Although we are disappointed with the third quarter results, we continue to gain market share by performing better than the industry on key client performance metrics," said Timothy O'Day, Chief Executive Officer of the Boyd Group. "During the third quarter of 2024, the industry experienced higher total loss rates as well as a deferral in repairs and an increase in non-filed claims, driven, we believe, by significant insurance premium inflation and overall economic uncertainty. Industry sources report a year-over-year decrease in repairable claims of 12.6% for all losses and 9.5% excluding comprehensive claims. Boyd outperformed the industry, posting a year-over-year same-store sales decline of 3.5%, demonstrating Boyd's ability to gain market share, even in a very difficult environment", continued Mr. O'Day. "We have had a slight sequential improvement in gross margin percentage, moving from 45.6% in the second quarter to 45.7% in the third quarter, primarily driven by the increased internalization of scanning and calibration services. However, our operating expenses as a percentage of sales continued to increase sequentially from 34.1% in the second quarter of 2024 to 35.0% in the third quarter of 2024. During this period, operating expenses as a percentage of sales was significantly impacted by the decline in sales on a quarter over quarter basis," added Mr. O'Day.
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1 Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers. For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release.
Results of Operations
For the three months ended, September 30,
For the nine months ended, September 30,
(thousands of U.S. dollars, except per share amounts)
2024
% change
2023
2024
% change
2023
Sales, Total
752,293
2.0
737,798
2,318,003
5.1
2,205,974
Same-store sales, Total
(excluding foreign exchange)(1)
709,022
(3.5)
734,831
2,122,882
(1.8)
2,161,340
Gross margin %
45.7 %
1.1
45.2 %
45.4 %
(0.2)
45.5 %
Operating expense %
35.0 %
7.7
32.5 %
34.5 %
4.2
33.1 %
Adjusted EBITDA (1)
80,128
(14.7)
93,972
251,411
(8.3)
274,040
Acquisition and transaction costs
1,558
17.1
1,331
4,505
57.6
2,859
Depreciation and amortization
57,731
13.5
50,851
166,173
17.8
141,068
Fair value adjustments
(801)
