The recent acquisition of Glass America helped bolster quarterly sales for Winnipeg, Manitoba-based Boyd Group Income Fund.
The group, which also owns Boyd Autobody and Glass, Gerber Collision and Glass and Gerber National Glass Services, reports that sales grew 33 percent to $136.9 million, compared to $102.9 million at the same period last year.
During the company’s quarterly conference call, Brock Bulbuck, president and CEO, says the “integration and performance” of Glass America is going “as planned.” He adds that Glass America contributed “meaningfully” to second quarter results.
“The additional of six single locations and the acquisition of Glass America demonstrate our continued commitment to accretive growth,” says Bulbuck. “Our sales and adjusted EBITDA for the second quarter increased by 33 percent and 35 percent, respectively, compared to the same period last year. This reflects not only the contributions of new locations, but also an 8-percent growth in same-store sales.”
Sales in the U.S. came in at $117.2 million, up $31.5 million or 36.7 percent, compared to the same time frame of 2012.
Bulbuck attributed the U.S. growth largely to acquisitions, such as the addition of majority interest in Glass America, as well as a $5.9-million increase in same-store sales.
Bulbuck also noted on the company’s conference call that a recent hail storm in Georgia also positively impacted results, though he did not offer specifics.
The company reports sales in Canada were $19.6 million, up $2.4 million or 14.2 percent year-over-year.
“This increase is the result of a $2.1 million, or 12.5-percent increase in same-store sales, plus an additional $0.3 million generated by one month of operations from a new [Ontario] location,” officials write in a company statement.
For the six-month period, total company sales grew by 27.2 percent to $267.5 million, compared with sales of $210.3 million for the same period of 2012.
“The $57.2-million increase was due largely to sales generated from 24 new single locations and multi-location acquisitions, including the first month of operations for the newly acquired Glass America business, which combined contributed $47.7 million,” officials write in the company statement.
“Same-store sales increased by 4.7 percent, adding another $9.6 million of incremental sales,” they add.
In the U.S., sales were $228.5 million, up $54.9 million or 6.2 percent over the same six-month period in 2012.
“Increased sales resulted primarily from $36.1 million of new sales from multi-location acquisitions, including Glass America, $11.2 million of new sales from 23 new single locations and $7.7 million from 4.5 percent same-store sales growth,” officials say.
Sales were also up $1.8 million thanks to the strengthening U.S. dollar but offset by $1.9 million in lost sales due to the closure of three underperforming facilities in 2012, according to officials.
For Canada, sales came in at $39.0 million, up $2.3 million or 6.2 percent year-over-year. Management said the six-month sales increase was driven by same-store sales growth of $2.0 million or 5.4 percent, with the addition of $0.3 million, which represents one month of sales from the new Ontario location.
“The addition of ten new single-store locations in the first half of this year, including an entry into a new market with our Ontario location and the acquisition of Glass America demonstrate our continuing commitment to grow through accretive acquisitions,” says Bulbuck.
“We will also continue this momentum and maintain our annual target of 6 percent to 10 percent growth through single-location additions in existing and adjacent markets,” he adds.
Bulbuck says the company has been “successfully executing” its growth strategy.
“We remain positive about long-term market opportunities,” he said on the conference call.