Boyd Group Income Fund, parent company to U.S.-based Gerber Collision & Glass, Glass America, Hansen Collision and Glass and others, has reported a 33.1-percent increase in annual sales to $578.3 million from $434.4 million in 2012. Same-store sales grew by 4.1 percent.
“The successful completion of multi-location Glass America and Hansen Collision and Glass acquisitions combined with steady increases in same-store sales and the continued addition of single locations contributed to strong year-over-year sales growth,” said Brock Bulbuck, president and CEO.
The glass business contributed incremental sales of $24.6 million in annual sales, compared to $22.2 million in the previous year. The acquisition of Glass America helped to drive this growth, according to management.
Same-store sales, excluding the combined glass business, increased $16 million, or 4.1 percent, according to officials.
Looking specifically at the U.S., sales came in at $498.5 million, up $138.2 million, or 38.4 percent from 2012.
“The new combined glass business contributed $24.6 million of incremental sales,” according to the company statement. “Same-store sales growth of 3.8 percent increased $12.1 million. Sales also increased by $10.1 million due to the strengthening U.S. dollar, offset by $2.5 million in lost sales due to the closure of three underperforming facilities in 2012.”
For the fourth quarter, total sales were up 40.1 percent to $161.1 million, compared with sales of $115.0 million for the same period in the previous year.
“The $46.1-million increase was due largely to the contributions from acquisitions of $35.7 million and improvement in same-store sales, excluding the combined glass business, of 5.2 percent, or $5.5 million, compared to the same period a year ago,” officials explained. “In addition, Boyd benefited from favorable currency translation in the amount of $5.4 million from same-store sales converted at a higher U.S. dollar exchange rate.”
Reviewing the U.S. results, sales were $140.4 million, up $45.6 million, or 48.1 percent, over the same period in 2012.
“The increase resulted from contributions of $34.6 million from acquisitions, including Glass America and Hansen Collision and Glass, as well as a $5.7 million, or 6.7-percent increase in same-store sales,” officials reported. “Additionally, foreign exchange positively impacted sales by $5.4 million due to higher U.S. dollar exchange rates.
“We expect the momentum gained by the company in 2013 to continue into 2014,” said Bulbuck. “[A]nd while the market for larger multi-shop operator acquisitions (MSO) is becoming more competitive, we continue to believe that there are opportunities for accretive MSO acquisition growth,” he added. “We intend to remain disciplined and selective in pursuit of those opportunities, and the increased borrowing capacity afforded by our expanded credit facility, combined with our strong balance sheet, will allow us to continue to execute on these opportunities as they arise.”
He went on to note that while the company’s collision side witnessed increased demand in the first quarter, the automotive glass side saw lower demand.
“Looking ahead to our first quarter, the unusually severe winter weather conditions experienced in both Canada and many parts of the U.S. have increased demand for our collision services in many of our markets; however, this has been somewhat offset by weather-related production challenges and business interruption that we have also experienced in multiple markets,” Bulbuck said.
“We need to also bear in mind the seasonality of some of our operating expenses, including payroll taxes, which are typically highest during the first quarter, as well as the seasonality of our expanded glass business, which experiences its lowest demand in the winter months,” he concluded.