November 9, 2006

Boyd Group Income Fund Reports 2006 Third Quarter Results

Not for distribution to U.S. newswire services or for dissemination in the United States.

Winnipeg, Manitoba — November 9, 2006 — Boyd Group Income Fund (TSX: BYD.UN) (“the Fund”) today reported its financial results for the three and nine-month periods ended September 30, 2006.

For the third quarter ended September 30, 2006, revenue declined to $44.9 million compared to revenue of $45.7 million in the third quarter of 2005, after adjusting for discontinued operations. The decline in sales resulted from the impact of foreign currency translation of sales generated from U.S. operations and a same store sales decline in the U.S., offset by same store sales growth in Canada and new revenue generated from glass initiatives and start-up locations in the U.S.

Sales in Canada in the third quarter of 2006 totalled $15.1 million, an increase of $0.8 million or 5.9%, compared to the third quarter a year ago. Sales increases in Canada are entirely due to same store sales growth.

Sales in the U.S. in the third quarter of 2006 decreased 5.2% to $29.8 million compared to $31.5 million in the third quarter of 2005. Sales in the U.S. included $1.5 million in new sales from three new start-ups commenced in 2006 and new glass repair and replacement revenues generated in the Arizona, Georgia, Nevada and Washington markets. Same store sales in the U.S. declined $3.2 million or 10.2% compared to the third quarter a year ago. Translation of U.S. dollar revenues at a weaker U.S. dollar exchange rate, relative to the Canadian dollar, during the quarter accounted for $2.0 million of this same store sales decline. Excluding the impact of foreign currency translation, U.S. same store sales declined $1.2 million or 3.8% compared to the third quarter a year ago.

Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)¹ for the third quarter of 2006 totalled $3.4 million, or 7.6% of sales, compared to EBITDA of $3.1 million, or 6.7% of sales, in the third quarter of 2005. This increase is primarily the result of foreign exchange gains on the prepayment of U.S. denominated debt, offset by lower amortization of prepaid rebates and lower operating margins in the U.S. during the quarter.

Net loss for the third quarter of 2006 after giving effect to the non-controlling interest, and after discontinued operations, was $2.0 million or ($0.20) per fully diluted unit compared to net earnings of $0.6 million or $0.06 per fully diluted unit in the third quarter of 2005. The Fund’s net loss resulted primarily from a $2.3 million write down of goodwill relating to Georgia and Washington based operations, and the impact of losses in the U.S. for which no tax benefit was recorded.

For the nine months ended September 30, 2006 revenue totalled $136.7 million compared to revenue of $137.7 million in the same period a year ago. EBITDA for the nine months ended September 30, 2006 totalled $7.9 million, or 5.7% of sales, compared to EBITDA of $9.6 million, or 6.9% of sales, in the corresponding period a year ago. The Fund’s net loss for the nine months ended September 30, 2006 was $4.4 million or ($0.43) per fully diluted unit compared to net income of $2.1 million or $0.22 per fully diluted unit in the same period a year ago.

The Fund had total debt outstanding at September 30, 2006 of $39.4 million, comprised of: $6.0 million in bank indebtedness; $4.3 million of senior bank term debt; $14.5 million of U.S. bank debt; $0.4 million of supplier debt; $0.7 million of vendor loans; $1.2 million of obligations under capital lease; and, $12.3 million in subordinate convertible debentures and exchangeable notes. This compares to $39.8 million in total debt outstanding as at December 31, 2005. During the three-month period ended September 30, 2006, Boyd Group prepaid US$2.8 million of U.S. bank debt held by the Fund’s senior lenders and amended senior credit facilities to increase the Fund’s operating line of credit from $12 million to $15 million.

Distributable Cash²
On December 15, 2005, the Fund suspended cash distributions to unitholders until further notice. The Trustees of the Fund and senior management of the Boyd Group determined that a temporary suspension of distributions was in the best interests of unitholders as it will allow the Boyd Group to strengthen its balance sheet and improve its cash position and financial flexibility. Based on current financial performance, the Fund does not anticipate reinstating distributions within the next 10 months. Instead, Boyd Group will continue to use its cash flow from operations to strengthen its balance sheet. At the end of this time period, or sooner if the Company experiences meaningful improvement in its financial performance, management of the Company and the Trustees of the Fund would expect to resume distributions at conservative and sustainable levels.

On October 31, 2006, the Government of Canada (Department of Finance) announced the “Tax Fairness Plan” whereby the income tax rules applicable to publicly traded trusts (other than real estate investment trusts) and publicly traded partnerships will be significantly modified. Under the proposed plan, distributions made by income trusts and publicly traded partnerships will be taxed in a manner similar to income earned by (and distributions made by) a corporation. The plan, if adopted, will not become effective until the 2011 taxation year for trusts, such as the Boyd Group Income Fund, that were publicly traded prior to November 1, 2006. The Fund is currently considering these proposals and the possible impact they will have on the Fund and its unitholders, but is unable make an estimate of the impact at this time.

2006 Third Quarter Conference call & Web cast
Management of the Boyd Group Income Fund will host a conference call to discuss the Fund’s 2006 third quarter financial results on November 10, 2006 at 10:00 a.m. EST. The conference call will be webcast live at and archived for 90 days. A taped replay of the conference call will also be available until November 17 at midnight at 1-877-289-8525 or 416-640-1917, reference number 21206964#.

(¹)(²) EBITDA and distributable cash are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management believes that in addition to revenue, net earnings and cash flows, distributable cash and EBITDA are useful supplemental measures as they provide investors with an indication of earnings from operations and cash available for distribution, both before and after debt service, capital expenditures and income tax. Investors should be cautioned, however, that EBITDA and distributable cash should not be construed as an alternative to net earnings determined in accordance with GAAP as an indicator of the Fund’s performance. Boyd’s method of calculating distributable cash may differ from other public issuers and, accordingly, may not be comparable to similar measures used by other issuers. For a detailed explanation of how the Fund’s distributable cash is calculated, please refer to the Fund’s MD&A filing for the three months ended September 30, 2006, which can be accessed via the SEDAR Web site (

About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in Canada and among the largest in North America. The company operates locations in the four western Canadian provinces principally under the trade names Boyd Autobody & Glass and Service Collision Repair, as well as in six U.S. states principally under the trade name Gerber Collision & Glass. The company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our Web site at

About The Boyd Group Income Fund
The Boyd Group Income Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries.

For further information, please contact:

Terry Smith

Bruce Wigle


Investor Relations

Tel: (204) 895-1244

Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext.228)

Dan Dott

Chief Financial Officer

Tel: (204) 895-1244

This press release contains forward-looking statements, other than historical facts, which reflect the view of the Fund’s management with respect to future events. Such forward-looking statements reflect the current views of the Fund’s management and are made on the basis of information currently available. Although management believes that its expectations are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements contained herein are subject to these factors and other risks, uncertainties and assumptions relating to the operations, results of operations and financial position of the Fund. The Fund assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

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