Bulbuck gave investors two reasons for this as the glass industry is just beginning to enter a seasonally slow quarter. The first, an industry slow-down in the automotive glass replacement industry, which has been growing in decline as the year progresses. He notes factors putting pressure on this decline are mild winters, or lack thereof, reflecting on 2015’s unfavorable winter season. The second, a negative impact due to the drop in NAGS prices which became effective in September.
“Mitchell and NAGS caught us all off guard in September when NAGS dropped about 5 percent,” Bulbuck stated. The drop took a direct hit to sales and margins, he continued, “because acquisition costs don’t change.”
Roughly 10 percent of the Boyd Group’s revenue comes from glass, according to Bulbuck. Besides glass operations done under the Gerber brand, the Boyd Group owns the glass retailers Auto Glass Authority, Autoglassonly.com, Glass America and Auto Glass Service, totaling 31 auto glass locations in America. It also owns Gerber National Claims Service, a third-party claims administrator providing services, which includes 5,500 affiliated glass locations.