Investor FAQ's

Tax Information

What is the tax treatment of unitholder distributions?
Unitholder distributions declared by the Fund are anticipated to be taxable primarily as other income for unitholders. The Fund will make an annual determination as to the breakdown of dividend and interest income. Unless otherwise communicated, dividends paid or allocated are eligible dividends. Complete tax treatment details will be sent to unitholders annually via a T3 Form. As well, the Fund will annually summarize the tax characteristics of distributions and include them within the investor relations section of its web site.
What is the tax treatment of Class A Boyd Group Holdings Inc. shareholder distributions?
Class A Boyd Group Holdings Inc. shareholder distributions declared by the Fund are anticipated to be taxable as dividend income for shareholders. Unless otherwise communicated, dividends paid or allocated are eligible dividends. Complete tax treatment details will be sent to Class A Boyd Group Holdings Inc. shareholders annually via a T5 Form. As well, the Fund will annually summarize the tax characteristics of dividends and include them within the investor relations section of its web site.
How will the taxable portion of the distributions be communicated to Boyd Group securityholders?
Each year Fund unitholders will receive a T3 Form and Class A Boyd Group Holdings Inc. shareholders will receive a T5 Form the provides this information. The Boyd Group will also post this information annually on the Canadian Depository for Securities ("CDS") Web site and include a summary within the investor relations section of its web site.
What is the tax treatment for U.S. unitholders of the Boyd Group Income Fund?
For U.S. residents that own units of the Boyd Group Income Fund, the Fund's distributions are qualified as a dividend and are subject to a 15% non-resident withholding tax.

For U.S. unitholders that do not have a Tax Identification Number ("TIN") the Fund's interest or dividend paying agent (Computershare Trust Company ) is required to withhold an additional 25% backup withholding tax. A U.S. tax form (W9 Form) is sent to all U.S. unitholders to provide their TIN information
Is it possible for U.S. residents that own units of the Boyd Group Income Fund to obtain an exemption from Canadian withholding taxes?
U.S. residents that own units of the Boyd Group Income Fund can apply for an exemption from Canadian withholding tax by requesting a letter of exemption from the International Tax Services Office in Ottawa, Ontario (Tel: 1-800-267-3395)

Share Information: Pre-2003

How did my original The Boyd Group Inc. shares get converted to income trust units?
On February 28, 2003 the Company converted to an Income Trust. The following is an example of the conversion, assuming a shareholder of The Boyd Group Inc. owned 100 Class A shares prior to the conversion;

Step 1. Share Consolidation on a 4:1 basis
The 100 Class A shares of The Boyd Group Inc were consolidated on a 4:1 basis such that the shareholder would receive 25 new Class A shares of The Boyd Group Inc. This consolidation or reverse split applied to all shareholders such that the relative interest of any one shareholder as a result of this consolidation remained unchanged.

Step 2. Conversion of Class A Shares of The Boyd Group Inc.
As a result of the approved Plan of Arrangement, all Class A shares of The Boyd Group Inc. were exchanged for a combination of: a) Trust Units in Boyd Group Income Fund and b) Class A shares in a new holding company, Boyd Group Holdings Inc. The Class A shares that you refer to that are in your account today (after conversion) are not the publicly traded Class A shares of The Boyd Group Inc.

Here is what happened to the 100 Class A shares of The Boyd Group Inc. in our example: a) 64.96% of the Class A shares were exchanged for Trust Units (64.96%x25 = 16 Units).b) 35.04% of the Class A shares were exchanged for new Class A shares in the holding company mentioned above (35.04% x 25 = 9).
Why would I want to continue to hold the Class A Holding Company share if the distributions are the same after year one?
When your old Boyd Class A shares were exchanged for Trust Units, this is a taxable event. Depending on what you paid for Boyd Class A shares, the conversion of these shares to Trust Units will likely result in a capital gain to you. This capital gain will be taxable in 2003. When your old Boyd Class A shares were exchanged for Holding Company shares, this may or may not be a taxable event, at your option. When a shareholder exchanges shares in this fashion, there is an election available to the shareholder, within the Canadian Income Tax Act, that allows this exchange to take place without resulting in taxable capital gains. This "tax deferral" only continues until such time as you may decide to exchange your Holding Company shares for Trust Units. This exchange (like the exchange of the old Boyd Class A shares) to Trust Units is also a taxable event. Hence, every shareholder, as a result of this mechanism, has an opportunity to defer some tax as long as they may want to, by continuing to hold the shares of the Holding Company (these shares will always be exchangeable for Trust Units, so there is not reason to exchange, unless you want to sell, and in that event you would have a taxable gain anyway). It should be noted that if your holdings are within an RRSP or some other type of "tax deferral plan" then the tax deferral created by these Holding Company shares will not result in any additional benefit to you, hence you may want to elect to have the original conversion treated as a taxable event.
Why do my Class A shares of Boyd Group Holdings Inc. show no value?

The Boyd Group Holdings Inc. ("Holdco") shares will not be publicly traded and as a result, most brokers have not attempted to establish the correct value for these shares. They have simply placed these shares in your account at 0 value. These Holdco shares do, however, have significant value for the following three reasons:

  1. The Holdco shares received monthly cash distributions at the same time as the Trust units receive distributions. During the first year after the effective date of the conversion (February 28, 2003), the Holdco shares received a monthly distribution equal to 40% of the distribution that was received on a trust unit. For example, we made the first cash distribution, for the month of March, on April 30, 2003. This distribution was $0.095 per trust unit and $0.038 for each Holdco share ($0.095 x 40% = $0.038). Holdco shares received distributions equivalent to 70% of a trust unit distribution during the second year and equal to 100% thereafter. The primary purpose of the reduced distribution in the first and second year was to provide an incentive for new investors to participate in the Initial Public Offering. The reduced distributions created a "cash reserve" in the company that provided added protection in making future distributions.
  2. The Holdco shares are exchangeable for Trust units at any time.
  3. Tax Deferral on Holdco shares. The third reason why the Holdco shares have value is tax related. When your original Boyd Class A shares were converted to Trust units, this is a taxable event (to the extent this resulted in a capital gain to you, this gain would be taxable immediately). In the case of the conversion of your original Boyd Class A shares to Class A shares of Holdco you, as a shareholder, can elect to defer this gain. This tax deferral feature of the Holdco shares can be very significant to any shareholder that has significant holdings of shares that are not already held within a tax deferred plan (such as an RRSP). Whether or not this tax deferral is a benefit to a particular shareholder will depend on that shareholder's individual tax situation. This tax deferral also has value.
How can I sell my BGHI Class A common shares?
The BGHI Class A common shares are not traded. They must be converted to Trust Units which can then be sold on the public market.
How do I convert my BGHI Class A common shares to Trust Units?
The majority of shareholders hold their shares with a broker or financial institution. If your shares are held in such a manner, please contact your broker or financial institution and they will arrange for the exchange to Trust Units on your behalf.
Where can I obtain further information on The Boyd Group Inc. and the Boyd Group Income Fund?
For more information, please contact Investor Relations

General

What is the size of your market?
The collision repair sector in Canada and the U.S. is a $30 - $40 billion industry.
Are you one of the largest companies in the industry?
Yes, we are one of the largest. It is estimated that, in aggregate the top ten multi-shop operators inclusive of franchise networks, represent 27.9% of the total North American market.
How would you describe your corporate culture?

Our corporate culture is driven by our mission to “WOW” all of our customers with quality work and “best in class” service.

How many employees do you currently have?
The company has approximately 6,000 employees across North America.
When is your fiscal year end?
Our fiscal year end is December 31.
How can I obtain a copy of your Annual Report and other financial documents?
The Fund's Annual Report, as well as other financial documents are contained within the Investor Relations section of our web site. To receive hard copies, please contact Investor Relations. Boyd Group Income Fund is listed on the Toronto Stock Exchange and also files disclosure documents required by provincial securities laws electronically through SEDAR. You can access the Fund's documents on the SEDAR web site at www.sedar.com.
What stock exchange does the Boyd Group Income Fund trade on? What is the ticker symbol?
The Boyd Group Income Fund’s units and convertible debentures trade on the Toronto Stock Exchange under the symbols TSX: BYD.UN and TSX: BYD.DB.A.
Where can Boyd Group Income Fund units be bought or sold?
Boyd Group Income Fund units can be bought or sold through a stockbroker, bank, or any other financial institution that provides brokerage services.
Who is the Boyd Group Income Fund's transfer agent and registrar?
Mail/Courier
Computershare
100 University Avenue, 8th Floor
Toronto, Ontario
M5J 2Y1
Canada

Website
www.computershare.com
How do I sell or transfer ownership of my trust units stock, or change my address or other personal information?
We recommend that you contact your stockbroker. Should you require additional information regarding your account, or assistance with transactions, you may contact our transfer agent and registrar at the address listed above.
How can a certificate for the Boyd Group Income Fund units be obtained?
You may own Boyd Group Income Fund units without actually having a paper certificate. When units are purchased, they are electronically transferred to, and held by custodians through the Canadian Depository for Securities (CDS). If requested, certificates can be obtained in the name of the registered owner by making a request to Boyd's transfer agent and registrar at the address listed above. If your broker is the registered owner, they must make the request for a certificate on your behalf.
Who are the Boyd Group Income Fund's external auditors?
Deloitte LLP
Where is the Boyd Group's head office located?
3570 Portage Avenue
Winnipeg, Manitoba
R3K 0Z8
Ph (204) 895-1244
Fx (204) 895-1283
Who can I contact for additional investor related information on the Boyd Group Income Fund?

Craig MacPhail
National Equicom
Ph (416) 586-1938 / (800) 385-5451
Email: cmacphail@national.ca

OR

Brock Bulbuck
President & CEO
Phone: (204) 594-1770
Email: brock.bulbuck@boydgroup.com

OR

Pat Pathipati
Executive Vice President & CFO
(204) 895-1244 ext. 33841
Email: pat.pathipati@boydgroup.com