May 13, 2013

Boyd Group Income Fund Reports First Quarter

- A record quarter marked by 22% growth in revenue -

Winnipeg, Manitoba - May 15, 2013 - 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, 2013. The Fund’s complete fiscal 2013 first quarter 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.

Q1 2013 Highlights
  • Record quarterly sales and record Q1 Adjusted EBITDA1
  • Added four single locations during the quarter and three additional single locations subsequent to the end of the quarter
  • Sales increased by 21.6% to $130.6 million from $107.4 million in 2012
  • Same-store sales increased by 2.1%, excluding the impact of foreign exchange translation
  • Gross margin was $58.8 million, or 45.0%, compared with $48.7 million, or 45.3%, in 2012
  • Adjusted EBITDA1 increased to $8.2 million, compared with $7.0 million in 2012
  • Adjusted net earnings1 increased to $3.7 million, or 2.8% of sales, compared with adjusted net earnings of $3.3 million, or 3.0% of sales, in 2012
  • Net earnings were significantly impacted by fair value adjustments of $3.0 million resulting from unit price appreciation, and were $30 thousand compared with $2.1 million, or $0.166 per unit (diluted) in 2012
  • Adjusted distributable cash1 of $2.4 million, compared with $2.3 million in 2012

“The first quarter 2013 results reflected the continued successful execution of our stated growth strategy, leading to record quarterly sales and record Q1 Adjusted EBITDA,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “We added four more single-location facilities during the quarter and another three since quarter-end for a total of 226 locations across North America. Our results were encouraging with same-store sales increasing 2.1% for the quarter even though we experienced some challenges in some of our markets due to mild and dry winter weather conditions, less production days in the quarter and some seasonality of certain operating expenses. Our increase in market share, quality of service offerings, reputation of our brands, and continuing consolidation of our industry provides us with continued optimism for the future.”

Financial Results

For the three months ended March 31, 2013

Sales increased by 21.7% to $130.6 million, compared with sales of $107.4 million for the same period last year. The increase was driven largely by multi-location acquisitions and new single-location additions from the previous year, along with 2.1% same-store sales growth and a further $0.6 million due to the positive effect of favourable exchange rate.

Sales in Canada were $19.4 million and decreased $0.2 million when compared with the same period last year, representing a 0.9% same store sales reduction due to fewer productions days in the current quarter combined with unfavorable market and weather conditions in some markets. Sales in the U.S. were $111.3 million, an increase of $23.4 million or 26.6%, over the same period in 2012. The increase resulted primarily from acquisitions, new single-location additions, and 2.8% same-store sales growth excluding foreign exchange, offset by $1.3 million from the closure in 2012 of three underperforming locations.

Earnings before interest, income taxes, depreciation, amortization, fair value adjustments to financial instruments, and acquisition and transaction costs (“Adjusted EBITDA”1) increased to $8.2 million, or 6.3% of sales, compared with Adjusted EBITDA of $7.0 million, or 6.5% of sales, for the same period a year ago. The increase in Adjusted EBITDA was primarily the result of improvements in same store sales and EBITDA contributions from single and multi-location acquisitions, offset slightly by foreign currency translation and lost contribution from underperforming location closures.

The Fund recorded income tax expense in the amount of $0.4 million, below the $0.7 million for the same period a year ago.

Net earnings were $30 thousand, or $0.002 per unit (fully diluted), compared with net earnings of $2.1 million, or $0.166 per unit (fully diluted), for the same period last year. Earnings were negatively impacted by recording fair value adjustments for financial instruments of $3.0 million, acquisition costs of $0.4 million and accelerated brand name amortization of $0.2 million. Excluding the impact of these adjustments, net earnings would have increased to $3.7 million, or $0.292 per unit (fully diluted). This compares to adjusted earnings of $3.3 million, or $0.261 per unit (fully diluted) for the same period in 2012 if the same items were adjusted. The increase in the adjusted net income for the year is the result of the contribution of new acquisitions and new location growth as well as increases in same-store sales.

During the quarter, the Fund generated adjusted distributable cash of $2.4 million and declared distributions and dividends of $1.5 million, resulting in a payout ratio based on adjusted distributable cash of 64.2% for the quarter. This compares with adjusted distributable cash of $2.3 million, distributions and dividends of $1.4 million, and a payout ratio of 63.0% a year ago. The first quarter is often a quarter of higher working capital usage, which negatively impacts the payout ratio. On a trailing four-quarter basis at March 31, 2013, the Fund’s payout ratio stands at 32.8%.


“Overall we are encouraged with the prospects for the remainder of 2013”, added Mr. Bulbuck. “We see positive indicators of growth in many of our markets but there remain some challenges in others. We remain confident of attaining our targeted 6%-10% growth through single-location additions in existing and adjacent markets. So far this year we have announced seven single location additions and we have more we are currently evaluating. There remain many low-cost opportunities in the market for these additions. We also continue to believe in the availability of accretive multi-location acquisition targets and we will continue with our disciplined and selective approach to identifying and assessing these potential acquisitions. In this regard, the convertible debenture capital raise near the end of 2012 has further strengthened our balance sheet, providing additional flexibility to execute on our growth strategy in the future.”

“As we had previously advised, the positive impact of one of our recent acquisitions, The Recovery Room, is taking time as it continues to ramp up, but we are still very encouraged by the potential of this addition,” added Mr. Bulbuck. “Autocrafters however, another one of our recent acquisitions, is on target with our internal forecasts in terms of sales and integration. We continue to have a positive outlook on our business and on the potential of making further acquisitions and we look forward to updating investors on further developments in the coming periods.”

2013 First Quarter Conference Call & Webcast

Management will hold a conference call on Wednesday, May 15, 2013, at 10:00 a.m. (ET) to review the Fund’s 2013 first quarter financial results. You can join the call by dialing 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 Wednesday, May 22, 2013, at midnight by calling 1-855-859-2056 or 416-849-0833, reference number 59338924.

(1) EBITDA, Adjusted EBITDA, distributable cash, adjusted distributable cash and adjusted net earnings 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, adjusted net earnings, 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, adjusted distributable cash and adjusted net earnings 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 these measures 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 non-GAAP measures are calculated, please refer to the Fund’s MD&A filing for the period ended March 31, 2013, 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 North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass (, as well as in 14 U.S. states under the trade names Gerber Collision & Glass (, The Recovery Room and Autocrafters. 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. The Boyd Group Income Fund convertible debentures trade on the TSX under the symbol BYD.DB.

For further information, please contact:
Brock Bulbuck
President & CEO
Tel: (204) 895-1244

Philip Dale
Investor Relations
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 253)

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: dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; operational performance; rapid growth; loss of key customers; brand management and reputation; insurance risk; quality of corporate governance; tax position risk; risk of litigation; acquisition risk; credit & refinancing risks; dependence on key personnel; employee relations; decline in number of insurance claims; market environment change; reliance on technology; weather conditions; expansion into new markets; fluctuations in operating results and seasonality; increased government regulation and tax risk; Canadian tax related risk; execution on new strategies; operating hazards; energy costs; U.S. health care costs and workers compensation claims; low capture rates; key supplier relationships; capital expenditures; competition; potential undisclosed liabilities associated with acquisitions; foreign currency risk; margin pressure; acquisition and start-up growth and ongoing access to capital; environmental, health and safety risk; interest rates; unitholder liability limitation 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.