Boyd Group Announces 9.3 Percent Increase in Sales for Second Quarter
August 13, 2009

The Boyd Group, which includes Boyd Auto Body and Glass, announced a 9.3 percent increase in sales for the second quarter of 2009, totaling $55.4 million, compared to sales of $50.6 million for the quarter that ended on June 30, 2008. The company attributes the increase to a higher U.S. dollar translation rate on sales generated from Boyd Group's U.S. operations as well as sales generated from new collision repair start-ups in Canada and the United States, offset in part by lower same-store sales. (Same-store sales account for locations that were present both this year and last year.)

Same store sales for the company decreased by 5.7 percent for the second quarter of 2009, after excluding the effect of foreign currency translation. A company statement attributes the downturn to the "result of the prolonged and severe economic downturn." Sales in Canada increased 1.3 percent to $18.6 million for the quarter, from $18.3 million for the same period last year. Sales in the United States increased 13.9 percent to $36.8 million in the second quarter of 2009, from $32.3 million in the same quarter a year ago.

EBITDA for the second quarter of 2009 increased 14.3 percent to a second-quarter record-$3.7 million or 6.7 percent of sales, compared to adjusted EBITDA of $3.2 million or 6.4 percent of sales in the same quarter a year ago.

Company officials cite the result of U.S. EBITDA being translated at higher exchange rates as well as the EBITDA contribution from new start-ups as the reason for the surge. Net earnings after discontinued operations also set a record-surpassing all previous quarters-at $2.1 million, compared to $0.1 million for the 2008 second quarter.

"We look forward to supporting the positive results and momentum achieved in the first half of 2009 with a continued focus on optimizing the performance of our business and expanding our operations in both Canada and the United States," says Terry Smith, chief executive officer.

The company notes that it opened two new auto glass locations this year-one was set up to service a third-party collision repair center in Texas, and the other was a new start-up in Mesa, Ariz.

CLICK HERE for full statement from Boyd.

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.