May 11, 2012

Boyd Group Income Fund Reports First Quarter Results

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

- Continued Growth and a Good Quarter Despite Weather-related Headwinds -

Winnipeg, Manitoba — May 11, 2012 — 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, 2012. The Fund’s complete fiscal 2012 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.

  • Added 6 new single locations plus 8 location Master Collision acquisition, together totalling fourteen new locations year-to-date
  • Sales increased by 31.7% to $107.4 million from $81.6 million in Q1 2011; Cars Collision, Master Locations, and eleven new single locations added since Q1 2011 contributed $26.1 million of sales
  • Same-store sales decreased by 0.4%, excluding the impact of foreign exchange translation
  • Gross margin increased to $47.9 million, or 44.6%, compared with $36.8 million, or 45.2%, in Q1 2011
  • Adjusted EBITDA1 of $7.0 million compared with $5.5 million in Q1 2011
  • Net earnings were $2.1 million, or $0.166 per unit (diluted), compared with $0.9 million, or $0.082 per unit (diluted), in Q1 2011
  • Adjusted distributable cash of $2.3 million compared with $3.0 million in Q1 2011
  • Payout ratio of 63.0% compared with 38.2% in Q1 2011
“We are pleased with our achievements for the Quarter,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “We made significant progress towards our growth goals for the year and we posted respectable results despite the weather-related challenges of the mild and dry winter. Total same-store sales were only down slightly, and U.S. same-store sales recorded modest positive growth. Our acquisitions of Cars Collision and Master Collision over the last 12 months, as well as the addition of new single locations, have been positive to our business. We will continue to evaluate similar attractive opportunities as part of our growth strategy. We believe that this strategy, combined with our strong industry position, has helped us mitigate the softer market in the first quarter.”

Financial Results

Sales increased by 31.7% to $107.4 million, compared with sales of $81.6 million for the same period last year. The $25.8-million increase was driven largely by sales from Cars Collision, Master Collision, and eleven other new collision repair locations.

Sales in Canada were $19.5 million for the three months ended March 31, 2012, reflecting a 0.3% decline from $19.6 million for the same period in 2011. Flat sales in Canada resulted primarily from same store-sales decline of 3.6%, offset by sales of $1.2 million from three new locations.

Sales in the U.S. totalled $87.9 million, an increase of $25.9 million, or 41.8%, over the same period in 2011. The increase resulted from $17.3 million of sales from Cars Collision, $5.1 million from Master, $2.5 million from 8 new locations, $0.4 million from 0.6% same-store sales growth, and $0.9 million from favourable currency translation of same-store sales, offset by lost sales from the closure of one location.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”1) for the first quarter totalled $7.0 million, or 6.5% of sales, compared with Adjusted EBITDA of $5.5 million, or 6.7% of sales, for the same period a year ago. The 27.2% increase in Adjusted EBITDA was the result of EBITDA contribution from Cars Collision, Master, and from other new locations, offset by moderate same-store declines due to the mild winter conditions.

In the first quarter of 2012, the Fund recorded income tax expense in the amount of $0.7 million, compared with $0.9 million for the same period in 2011.

Net earnings were $2.1 million, or 2.0% of sales, compared with net earnings of $0.9 million, or 1.1% of sales for the same period last year. Excluding the impact of fair value adjustments for exchangeable shares and unit options, acquisition costs and the accelerated amortization of the True2Form, Cars Collision and Master brands, adjusted net earnings increased to $3.3 million, or 3.0% of sales, compared with adjusted earnings of $2.6 million, or 3.2% of sales, for the same period in 2011.

During the first quarter, the Fund generated adjusted distributable cash of $2.3 million and declared distributions and dividends of $1.5 million, resulting in a payout ratio based on adjusted distributable cash of 63.0% for the quarter. This compares with adjusted distributable cash of $3.0 million and a payout ratio of 38.2% a year ago. The decline in adjusted distributable cash and increase in payout ratio was largely due to higher payments of cash taxes, higher maintenance capital expenditures as well as additional cash used for working capital changes, combined with higher distributions in 2012.


“Our growth strategy targets 6%-10% growth in new start-up locations or single-location acquisitions, as well as being alert for opportunities to acquire attractive multi-location collision operators such as Cars Collision and Master,” added Mr. Bulbuck. Thus far this year, we have executed on growth at a pace which keeps us well on track with our goal. Our business has proven fairly resilient in the face of external and uncontrollable weather and market factors that have had some impact for the first quarter, and which are also expected to negatively impact the second quarter, which has historically been our weakest quarter. We remain positive on the long-term dynamics of our industry and the merits of our business model. We will continue to integrate our acquisitions to benefit from operational synergies while growing organically by adding new and carefully selected single locations, to counter any adverse market conditions. In line with this, we have begun the standardization of our management information systems across all of our repair center locations, which should further enhance our operational and administrative efficiency. Such initiatives will help strengthen our positioning as a growth company that offers an attractive payout, while maintaining the financial flexibility to support our growth strategy and gradually increase distributions to our unitholders over time.”

2012 First Quarter Results Conference Call & Webcast

Management will hold a conference call on Friday, May 11, 2012, at 10:00 a.m. (ET) to review the Fund’s 2012 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 Friday, May 18, 2012, at midnight by calling 1-855-859-2056 or 416-849-0833, reference number 76591797.

(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 non-GAAP measures are calculated, please refer to the Fund’s MD&A filing for the three-month period ended March 31, 2012, 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 thirteen U.S. states under the trade names Gerber Collision & Glass, True2Form, and Cars. 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

To view Boyd Group Income Fund’s Q1 2012 financial statements and notes, please click here:

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: dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; 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; 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; 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.