Canadian-based Boyd Group Income Fund, parent company to Gerber Collision & Glass and Glass America in the United States, among others, reported today that 2015 sales grew by 39.1 percent to $757. 4 million USD ($1.2 billion CAD) year-over-year. The company will likely double in size over the next five years, Boyd Group’s CEO said during the conference call.
“Looking forward, we will continue to pursue accretive growth through a combination of organic growth (same-store sales growth) as well as acquisitions and new-store development,” said Brock Bulbuck, president and CEO. “Acquisitions will include both single location acquisitions as well as multi location acquisitions. Combined, we expect this strategy to generate growth sufficient to double the size of our business over the next five years, implying an average annual growth rate of 15 percent.”
On the glass front, Gerber National Claim Services (GNCS), the company’s third-party insurance claims administrator (TPA) business, is affiliated with 5,500 AGRR provider locations in United States, according to the company’s investor report. Boyd Group’s retail glass operations stretch across 30 U.S. states. Canadian glass operations are integrated in the collision business.
“Approximately $144.4 million USD ($190.6 million CAD) of incremental sales were generated from 39 new single locations as well as 25 Collision Revision locations, 16 Collex locations, seven Champ’s locations, six Craftmaster locations as well as incremental glass network and other network sales from the acquisition of Netcost [which was integrated into Gerber’s TPA],” according to the company’s annual report.
Same-store sales, excluding foreign exchange, increased $30 million USD ($39.5 million CAD) or 5.6 percent.
Operating expenses for the year increased $86.8 million USD ($114.6 million CAD) to $329.7 million USD ($435.2 million CAD) from $243 million USD ($320.6 million CAD) in 2014, primarily due to the acquisition of new locations.
Operating expenses as a percentage of sales were 37.1 percent for the year, which compares to 38.0 percent for the same period in 2014.
“The decrease in operating expenses as a percentage of sales was primarily due to the lower operating expense ratios in GNCS and the impact of higher same-store sales levels leveraging the fixed component of operating expenses,” according to the report.
The company’s business model is dependent on the number of insurance claims, said Bulbuck.
“The volume of accidents and related insurance claims can be significantly impacted by changes in technology such as collision avoidance systems, driverless vehicles and other safety improvements made to vehicles,” he said.
In conjunction with reporting annual results, the company announced it has acquired a multi-store operation in the Portland, Ore., area. The five stores previously operated as J&M Body Shops, with the first location established in 1975 in Oregon City. They now operate under Gerber Collision & Glass.
In addition to the Oregon City location, the new locations are based in Canby, Milwaukie and Portland, Ore. The two locations acquired in Portland include a repair center and an intake center, which allows for vehicle pick-up and drop-off.
“All of these locations are well-established in their markets and the existing teams will continue to provide professional and timely repairs,” said Tim O’Day, president and chief operating officer of the Boyd Group’s U.S. operations.
The company also just recently expanded its glass footprint through the acquisition of Ohio-based Ryan’s Auto Glass.