Boyd reported that its financial results were impacted by Hurricane Irma, and to a lesser degree Hurricane Harvey with an estimated impact of $5 million on sales and $1.7 million on adjusted net earnings.
Currency negatively impacted same-store sales by $12.3 million and adjusted net earnings by $700,000.
“In the third quarter of 2017 we continued to deliver solid results despite facing significant headwinds from hurricanes and the strengthening Canadian dollar, which is a demonstration of the resilience of our business model and the effectiveness of our strategy,” says Brock Bulbuck, CEO of the Boyd Group Income Fund. “In addition we made several key acquisitions that provide us with a broader market presence and enhanced positioning for further growth.”
Adjusted net earnings decreased 4.6 percent to $12.5 million compared with $13.1 million in 2016. The positive contributions from new locations, including Assured Automotive Inc. on adjusted net earnings were offset by the impact of hurricanes and currency.
Boyd added 76 locations, including the acquisition of Assured. Gerber Glass exercised its call option to acquire the 30 percent non-controlling interest in Glass America. Gerber also added 10 locations, which included entering the state of Tennessee through the acquisition of a multi-store operation with nine locations, as well as a single location in Ontario to leverage the acquisition of Assured.
“Notwithstanding some of the unusual challenges that we faced in the third quarter, we are confident that we are on track to achieve our long-term goals, including doubling the size of our business on a constant currency basis from 2015 to 2020,” says Bulbuck. “We do expect we will continue to face headwinds from the lower value of the U.S. dollar relative to the Canadian dollar in comparison to the fourth quarter 2016; however, the positive industry trends that drive organic growth, our strong balance sheet with over $400 million of ‘dry powder’ and our track record of successful growth, continue to position us well to deliver value enhancing growth into the future.”