The Boyd Group announced its financial earnings for the fourth quarter and full year of 2016, in which it reported an 18-percent annual increase in revenue. The company also posted a 22-percent increase in adjusted earnings before interest, tax, depreciation and amortization (EBITDA). The company operates locations in five Canadian provinces under the trade name Boyd Autobody & Glass as well as in 20 U.S. states under the trade name Gerber Collision & Glass. it is also a major retail auto glass operator in the U.S. with locations across 31 U.S. states under the trade names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com.
The report notes that sales increased by 18.1 percent to $1.4 billion, compared to $1.2 billion in 2015. The adjusted EBITDA increased 22.2 percent to $124.3 million, compared with $101.7 million in 2015. Adjusted net earnings increased 32.9 percent to $52.6 million compared with $39.6 million in 2015. Unit price increased 29.4 percent from $66.10 to $85.56 during the year, resulting in a total shareholder return of 30.3 percent including distributions, according to the report.
Additionally, Boyd Group added 58 locations, accounting for a 17-percent increase in growth in new locations, totaling 400 across North America. The company also reported it completed the rollout of its new Wow Operating Way program, a program set to decrease wait time for customers and improve satisfaction.
“Our success in 2016 at growing our location count, same-store sales and adjusted EBITDA margins is once again a reflection of our ongoing focus and commitment to both growth and operational excellence,” said Brock Bulbuck, CEO of Boyd Group. “We are on track with our growth goal and by ramping up our corporate development team, we achieved one of the largest annual increases in location additions in our history, through a larger number of smaller transactions,” he added.
“Looking ahead to the first quarter, we are facing some headwinds that will impact our results,” Bulbuck added. “The extremely warm and dry winter weather conditions that we have been experiencing in many parts of the country are now resulting in decreased demand for our services in some of our markets. This, combined with very strong same-store sales comps in Q1 2016, is translating into very modest same-store sales growth for Q1 2017. We are also facing currency headwinds in Q1 2017 in comparison to Q1 2016, which will further impact our reported results. Notwithstanding these short-term challenges, our business continues to perform well.”