May 14, 2009

Boyd Group Income Fund Reports Record 2009 First Quarter Results; Fund Trustees approve sixth consecutive quarterly increase to distributions

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

- Fund Trustees approve sixth consecutive quarterly increase to distributions -

Winnipeg, Manitoba - May 14, 2009 - 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, 2009. The Fund’s complete fiscal 2009 first quarter financial statements and MD&A have been filed on SEDAR ( Boyd Group also announced that the Trustees of the Fund have approved a 5.9% increase in monthly distributions from $0.02125 per unit to $0.0225 per unit commencing July 2009 for unitholders of record on June 30, 2009.

Q1 2009 Highlights
  • Sales increased 23.8% to a record $63.7 million from $51.5 million in Q1 2008
  • Same store sales growth of 1.3%
  • Net earnings increased 17.2% to a record $2.0 million from $1.7 million in Q1 2008
  • EBITDA1 totalled $3.5 million compared to Adjusted EBITDA1 of $3.3 million in Q1 2008
  • Adjusted distributable cash2 increased to $2.1 million from $2.0 million in Q1 2008
  • Payout ratio of 34.2% compared to 25.9% in Q1 2008
  • Commenced operations at two new collision repair start-up facilities located in Manitoba and Arizona
“We are pleased to report a strong start to the 2009 fiscal year, with record first quarter sales and net earnings” said Terry Smith, CEO of the Boyd Group. “Despite continued weakness in the North American economy in Q1, we have been able to continue to post same store sales growth and improved results, thus demonstrating the success of our operating model.”

“As a result of this strong performance, we have increased distributions in six consecutive quarters, including two increases in 2009 from $0.02 per unit to $0.0225 per unit. With stable to improving financial performance, we expect that distributions will continue to be gradually increased over time. We will, however, continue to closely monitor our payout ratio to insure that it is at a stable and sustainable level, especially in light of current economic conditions.”

Brock Bulbuck, President and Chief Operating Officer of the Boyd Group added “during the first quarter, the Fund also made considerable progress in advancing its growth strategy, commencing operations at two new collision repair start-up locations, one in Manitoba and one in Arizona. Boyd now owns and operates 37 centers in Canada and 46 centers in the U.S., for a total of 83 centers in North America. We will continue moving ahead with our expansion program and we are now targeting to accelerate our plan and open eight to ten new facilities each year for the foreseeable future. Our balance sheet strength along with market opportunities to open or acquire locations for prices approximating asset values, make this a good time to endeavour to grow our business.”

Financial Results

Three Months Ended March 31, 2009

Sales for the three months ended March 31, 2009 increased 23.8% to $63.7 million, compared to sales of $51.5 million for the three months ended March 31, 2008, after adjusting for the effect of discontinued operations. This increase resulted from a higher U.S dollar translation rate on sales generated from Boyd Group’s U.S. operations as well as from same store sales growth in Canada and new sales generated from new collision repair start-ups in Canada and the U.S.

On a segmented basis, sales in Canada totalled $19.9 million for the three months ended March 31, 2009, an increase of $1.3 million or 7.0%. Sales increases in Canada were due to same store sales growth of 3.8% and new sales of $0.6 million from two new start-ups in Calgary, Alberta and Winnipeg, Manitoba.

Sales in the U.S. totalled $43.9 million in the first quarter of 2009, an increase of $11.0 million or 33.4% over the same period in 2008. Sales in the U.S. included new sales of $3.1 million from four new start-ups in Wichita, Kansas; Lacey, Washington; Las Vegas, Nevada; and Mesa, Arizona, as well as a glass repair and replacement services business located in Texas. Same store sales in the US declined a modest 0.1% when compared to Q1 2008. Translation of U.S. revenues at a stronger U.S. dollar exchange rate, relative to the Canadian dollar, resulted in an increase in same store sales of $7.9 million.

Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 for the first quarter of 2009 totalled $3.5 million or 5.5% of sales compared to EBITDA adjusted for discontinued operations (“Adjusted EBITDA”)1 of $3.3 million or 6.5% of sales in the same period a year ago. The decrease in EBITDA as a percentage of sales was primarily due to unrealized foreign exchange losses of $0.1 million recorded in the current period compared to $0.3 million of realized foreign exchange gains recorded in the prior year.

In the first quarter of 2009, earnings from continuing operations were $2.0 million, or 3.2% of sales, compared to $1.9 million, or 3.8% of sales in the same quarter a year ago.

For the three months ended March 31, 2009, net earnings after discontinued operations were $2.0 million or $0.170 per diluted unit and Class A common share, compared to net earnings of $1.7 million or $0.142 per diluted unit and Class A common share in the same period in 2008. The increase in earnings reflects the impact of discontinued operations in the first quarter of 2008 as well as reduced interest expense in the first quarter of 2009 when compared to the first quarter of 2008.

In the first three months of 2009, the Fund generated adjusted distributable cash2, which includes adjustments for the collection of additional prepaid rebates, cash flow used in discontinued operations, proceeds on the sale of equipment, adjustments to reserves for working capital changes, and capital lease repayments, of $2.1 million and declared distributions of $0.7 million, representing a payout ratio of 34.2% for the quarter.

As at March 31, 2009, the Fund had total debt outstanding of $22.2 million compared to $21.6 million at December 31, 2008, $20.2 million at September 30, 2008, $21.8 million at June 30, 2008 and $22.6 million at March 31, 2008. The increase in total debt in the first quarter of 2009 was primarily due to the translation of U.S. denominated debt to Canadian dollars at a higher U.S. dollar exchange rate. The Fund’s net working capital ratio was 0.97:1 as at March 31, 2009 (December 31, 2008 - 0.94:1).

Subsequent Event

Based on the Fund’s continued strong financial performance , on May 13, 2009, the Trustees of the Fund approved a sixth consecutive quarterly increase in monthly distributions and dividends to $0.0225 per unit commencing July 2009, for unitholders and shareholders of record on June 30, 2009.

Q1 2009 Results Conference Call & Webcast

Management will hold a conference call on Thursday, May 14, 2009 at 10:00 a.m. (ET) to review the Fund’s 2009 first quarter financial results. 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 Thursday, May 21, 2009 at midnight by calling 1-877-289-8525 or 416-640-1917, reference number 21304402#.

(¹)(²)EBITDA, Adjusted EBITDA, distributable cash and adjusted 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, 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 GAAP 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, 2009, 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 seven 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:

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

Bruce Wigle or Adriana Braczek
Investor Relations
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 228 / 240) /

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 subsidiary 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 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. The Fund does not undertake to update any forward-looking statements; such statements speak only as of the date made.