Boyd Group Services Inc. (the Boyd Group) announced its business has been identified by the Cybersecurity and Infrastructure Security Agency in the United States as an essential critical infrastructure, as well as in Ontario’s list of Essential Workplaces.
According to the company, in order to continue offering service to its customers, insurance clients and government authorities all locations remain open at this time; however, certain locations may be closed in the future to comply with local mandatory government orders. Since March 18, 2020 the Boyd Group has experienced, what it calls, significant COVID-19 related reductions in demand and estimates demand to be down in the range of 40% to 50% from normal levels. As a result, the company is responding by beginning to implement temporary staffing reductions, which will take place over the next few weeks.
Boyd has fully drawn on available financing facilities, other than swing lines of US$40 million and an accordion feature of US$275 million, providing significant available cash liquidity of approximately CDN$575 million. Additionally, as was previously disclosed, while in the long-term, the Company will continue to pursue accretive growth through a combination of organic growth as well as acquisitions and new store development, the immediate focus is on preserving financial flexibility as we deal with the uncertain impacts of COVID-19 and Boyd is therefore taking a near-term pause on closing and funding acquisitions and all non-essential capital expenditures.
Boyd has also implemented measures aimed at preventing the spread of COVID-19 both at its operating locations as well as within its support services. These include stringent operating practices to ensure cleanliness and distancing and overall employee and customer safety, work from home protocols wherever possible, halting all non-essential travel, halting all cross-border travel, and following established guidelines in the event an infected employee is identified, according to the company.
“While events continue to unfold, we continue to adjust and adapt”, said Tim O’Day, president and CEO. “We are closely monitoring the impact of this pandemic on our business. Recent government orders as well as social distancing and self-isolation practices have resulted in a weakening of demand in recent days, which, in turn has resulted in the painful decision to temporarily layoff some of our workforce. These temporary layoffs are not expected to impact service levels, and they will help to preserve liquidity in this uncertain time period as well as assist in the more rapid recovery of our business. We are well positioned and we will continue to work to minimize the risk and impact of the COVID-19 pandemic to our employees, customers and shareholders.”