May 13, 2011

Boyd Group Income Fund Reports a Strong First Quarter

Winnipeg, Manitoba - May 13, 2011 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund” or “the Boyd Group”) today reported its financial results for the three-month period ended March 31, 2011. The Fund’s complete fiscal 2011 financial statements and MD&A have been filed on SEDAR ( This news release is not in any way a substitute for reading the Boyd Group’s financial statements including notes to the financial statements and Management’s Discussion & Analysis.


  • Sales increased by 48.5% to $81.6 million from $54.9 million in Q1 2010; True2Form Collision Repair Centers, Inc. (“True2Form”) and eight other new locations contributed $22.5 million of sales
  • Same-store sales increased by 11.5%, excluding the impact of foreign exchange translation
  • Gross margin improved to 45.2% compared with 44.9% in Q1 2010
  • Adjusted EBITDA1 totalled $5.3 million compared with Adjusted EBITDA1 of $3.3 million in Q1 2010 despite the negative impact of $0.4-million due to foreign exchange translation and $0.2 million of acquisition search and transaction expenses
  • Adjusted distributable cash2 increased to $3.0 million compared with $2.8 million in Q1 2010
  • Payout ratio of 38.2% compared with 31.3% in Q1 2010, due to higher level of distributions
  • Net earnings were $0.9 million, compared with $1.9 million in Q1 2010, due to fair value adjustments for exchangeable shares and unit options and the recording of deferred income tax expense

“We are very pleased to report a strong start to 2011 on all financial performance metrics, as we were able to continue the momentum seen at the end of last year,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “We generated record sales levels notwithstanding the weaker U.S. dollar during the first quarter. We continued to see favourable market conditions driven in part by a return to normal winter weather compared with last year’s mild and dry winter. As a result, we also recorded strong overall same-store sales growth, excluding the effect of currency translation, and the third consecutive quarter of positive same-store sales growth in Canada. The contribution of True2Form to our results continues to meet and exceed our expectations, and we expect this to further improve as we continue the integration of True2Form into our operations.”

“In line with our stated growth plan of opening eight to 13 new locations per year, we opened two new repair centers in Georgia subsequent to the end of the quarter,” continued Mr. Bulbuck. “We also continue to be confident that our sales growth reflects market share gains, as automobile insurers consolidate Direct Repair Program revenues with fewer auto collision repairers.”

Adoption of IFRS

The Fund adopted International Financial Reporting Standards (“IFRS”) for fiscal year 2011, with a restatement of fiscal year 2010 comparables and a transition date of January 1, 2010. The first quarter of 2011 is the Fund’s first reporting period under IFRS. The most significant changes under IFRS are that both the exchangeable class A shares of Boyd Group Holdings Inc. and the unit options issued by the Fund are now recorded as liabilities on the balance sheet, whereas they were treated as equity under previous GAAP. Revaluations upward to the liability result in a corresponding expense being recorded and revaluations downward result in corresponding income. These fair value adjustments for the first quarter of 2011 resulted in a $1.5-million expense primarily based upon the increase in the underlying price of the Fund’s unit value. Going forward, these quarterly adjustments will be recorded as either expense or income on the Fund’s consolidated statements of earnings. In addition to fair value adjustments, another significant change is the treatment of acquisition search and transaction costs, which will now be expensed as incurred going forward as opposed to being capitalized to the acquired business under previous GAAP.

Q1 Financial Results

Sales for the three months ended March 31, 2011 increased by 48.5% to $81.6 million, compared with sales of $54.9 million for the three months ended March 31, 2010. The increase consisted of $22.5 million in sales generated from True2Form and eight other new collision repair locations, and $6.4 million in same-store sales growth, offset by $2.2 million due to a lower U.S. dollar translation rate on sales generated from Boyd Group’s U.S. operations. Excluding the effect of foreign currency translation, same-store sales grew by 11.5%.

Sales in Canada were $19.6 million for the three months ended March 31, 2011, an increase of $0.6 million, or 3.3%, over the same period in 2010. Sales growth in Canada was due entirely to same-store sales increases.

Sales in the U.S. totalled $62.0 million, an increase of $26.0 million, or 72.4%, over the same period in 2010. Sales in the U.S. included sales of $20.2 million from True2Form as well as $2.3 million from new locations in Cartersville, Georgia; Owasso, Oklahoma; Evanston, Illinois; Las Vegas, Nevada; Bellingham, Washington; Yuma, Arizona; and two new locations in the Atlanta, Georgia area. Translation of U.S. revenues at a weaker U.S. dollar exchange rate relative to the Canadian dollar resulted in a decrease of $2.2 million. Excluding the impact of currency translation, same-store sales in the U.S. increased by $5.7 million, or 15.8%, compared with the same period in 2010.

Earnings before interest, income taxes, depreciation and amortization, adjusted for the fair value adjustments related to the exchangeable shares and unit options (“Adjusted EBITDA” 1) for the first quarter totalled $5.3 million, or 6.5% of sales, compared with Adjusted EBITDA of $3.3 million, or 5.9% of sales, during the same period a year ago. The 63.6% increase in Adjusted EBITDA was the result of improved gross margin percentage, same-store-sales growth, and contributions from acquisitions and new locations. Changes in the U.S. dollar negatively impacted Adjusted EBITDA by $0.4 million compared with the same quarter last year. Also, the expensing of acquisition search and transaction costs, now required under accounting rules, negatively impacted Adjusted EBITDA by $0.2 million.

As a result of the Fund recording its tax losses and other tax assets on its balance sheet in the fourth quarter of 2010, as previously reported, the Fund is now required to record deferred income tax expense in relation to its reported income, even though minimal cash taxes are payable, as they continue to be mostly sheltered by available tax loss carry-forwards. In the first quarter of 2011, the Fund recorded deferred income tax expense in the amount of $0.9 million, whereas no such expense was recorded in 2010.

Net earnings were $0.9 million, or $0.082 per diluted unit, compared with net earnings of $1.9 million, or $0.160 per diluted unit for the same period last year. The decrease in net earnings was due to the deferred income tax expense mentioned above and the fair value adjustments for exchangeable Class A shares and unit options. Excluding the effect of these adjustments, net earnings would have increased to $3.3 million, compared with net earnings of $1.8 million for the same period last year.

During the first quarter, the Fund generated adjusted distributable cash of $3.0 million, which includes adjustments for the collection of additional prepaid rebates, acquisition searches and transaction costs, proceeds on the sale of equipment, and capital lease repayments. The Fund paid distributions of $1.2 million, representing a payout ratio of 38.2% for the quarter.

As at March 31, 2011, the Fund had total debt outstanding, net of cash, of $14.4 million, compared with $16.0 million at December 31, 2010. The Fund has a cash position, net of bank indebtedness of $10.2 million, an improvement from $9.4 million at the end of 2010.


“Our strong results during the first quarter, following a record 2010, give us cautious optimism for the rest of 2011. While the economic recovery seems to be stable, continuing high automobile gas prices could reduce miles driven and, in turn, accident frequency,” added Mr. Bulbuck. “We will continue to work on maintaining same-store sales growth, enhancing gross margins and adjusted EBITDA margins, and increasing efficiencies across our operations. We are confident that we will be able to achieve our performance objectives for this year, including opening eight to 13 new locations. We will also continue to remain alert to opportunities for accelerated growth through the acquisition of other multi-location businesses. With our increase in annual distributions announced in the fourth quarter of 2010 to the $0.42 level, we, in essence, accelerated as a single increase the quarterly increases that unitholders may have expected during 2011. Nonetheless, our long-term objective continues to be to increase distributions over time, while maintaining the financial flexibility needed to support our growth objectives.”

2011 First Quarter Results Conference Call & Webcast

Management will hold a conference call on Friday, May 13, 2011, at 10:00 a.m. (ET) to review the Fund’s 2010 first quarter financial results. You can join the call by dialling 888-231-8191 or 647-427-7450. A live audio webcast of the conference call will be available through An archived replay of the webcast will be available for 90 days. A taped replay of the conference call will also be available until Friday, May 20, 2011, at midnight by calling 800-642-1687 or 416-849-0833, reference number 61434329.

(¹)(²) EBITDA, Adjusted EBITDA, distributable cash and adjusted distributable cash are not recognized measures under International Financial Reporting Standards (“IFRS”). Management believes that in addition to revenue, net earnings and cash flows, the supplemental measures of distributable cash, adjusted distributable cash, EBITDA and Adjusted EBITDA are useful as they provide investors with an indication of earnings from operations and cash available for distribution, both before and after debt management, productive capacity maintenance and non-recurring and other adjustments. Investors should be cautioned, however, that EBITDA, Adjusted EBITDA, distributable cash and adjusted distributable cash should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Fund’s performance. Boyd’s method of calculating distributable cash and adjusted 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 and adjusted distributable cash is calculated, please refer to the Fund’s MD&A filing for the three-month period ended March 31, 2011, which can be accessed via the SEDAR Web site (

To view Boyd Group Income Fund’s Q1 2011 financial statements and notes, please click here:

About The Boyd Group Inc.

The Boyd Group Inc. is the largest operator of collision repair centres in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in eleven U.S. states under the trade names Gerber Collision & Glass and True2Form. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website 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. The Boyd Group Income Fund units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.

For further information, please contact:

Brock Bulbuck
President & CEO
Tel: (204) 895-1244

Salvador Diaz
Investor Relations
Tel: (416) 815-0700 / 1-800-385-5451 (ext. 242)

Dan Dott
Chief Financial Officer
Tel: (204) 895-1244

Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like “may”, “will”, “anticipate”, “estimate”, “expect”, “intend”, or “continue” or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: the economic downturn; loss of key customers; fluctuations in cash distributions; dependence on the Fund’s operating subsidiaries to pay its interest obligations; loss of services of key senior management personnel; damage to the Company’s brand; variation in the number of insurance claims; margin pressure; management of credit and refinancing risks; responding to changes in the market environment; technology risks; the management of key supplier relationships; capital expenditures; competition from established competitors and new entrants in the businesses in which the Company operates; employee relations; the ability to complete acquisitions of collision repair facilities and other businesses and to integrate these acquisitions successfully; the ability to identify start-up locations and reach anticipated profitability levels; potential discovery of undisclosed liabilities associated with acquisitions; energy costs; weather conditions; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in operating results and seasonality; ability to expand into the United States; insurance coverage of sufficient scope to satisfy any liability claims; environmental, health & safety risk; interest rate fluctuations and general economic conditions; quality of corporate governance; pending and proposed legislative or regulatory developments including the impact of changes in laws, regulations and the enforcement thereof; quality of internal control systems; fluctuations in foreign currencies; fluctuations in the cost of benefit plans; impact of government owned insurance; and the possible impacts from public health emergencies, international conflicts and other developments including those relating to terrorism; and the Fund’s success in anticipating and managing the foregoing risks.

We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the “Risk Factors” section of the Fund’s Annual Information Form, the “Risks and Uncertainties” and other sections of our Management’s Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.