Boyd Group Services Inc. (The Boyd Group) released its 2020 first quarter financial report today and noted its sales increased by 12.6% to $628.4 million when compared to the same period in 2019. According to the report, its same-store sales decreased by 1.5%.
The Boyd Group is not only a retail auto glass operator, it also has collision repair centers across the United States and Canada. It operates Boyd Autobody & Glass, Gerber Collision & Glass, Gerber National Claim Services, Glass America and Assured Automotive.
“Our team has undertaken proactive steps to adapt to the current environment, and to maintain our strong financial position,” said Tim O’Day,the Boyd Group CEO and president.
The financial report also highlighted some of the company’s additions that were made after the quarter ended, which included:
- The announcement of a “bought-deal” offering for the issuance of 1,100,000 common shares at a price of $183.00 per share for gross proceeds to the Company of $201.3 million.
- On May 12, 2020, the company entered into an amendment to the Credit Facility intended to prevent the effects of COVID-19 from distracting the company or its lenders from managing the quarters ahead.
“We have been able to adjust our business to manage through this challenging situation, while also preparing to ramp back up as the demand for collision repair services begins to rise and growth opportunities emerge,” O’Day said. “We believe there will be many opportunities that come from this crisis, both internal and external and we are pBoydreparing to put ourselves in the best possible position to come out of this crisis as a stronger company.”
Prior to the quarter ending the company noted COVID-19’s “significant impact” that produced reductions in demand in the range of 40% to 50% from normal levels, according to the report. In April its sales were down slightly less than 40%. The Boyd Group implemented initiatives to address its decline in sales. The initiatives included staffing reductions, salary and other compensation adjustments, lease payment deferrals, reductions to other variable expenses, restrictions on capital expenditures, and pausing on closing and funding of acquisitions, according to the report.
“Rapidly flexing the company’s operating expenses and capital expenditures has enabled us to navigate this challenging environment, while preserving our ability to scale our business lower if necessary, and higher as our demand increases,” said O’Day. “Our pending capital raise, combined with our scalable reopening plan, will allow us to quickly bring back our valued team members and to take advantage of other market opportunities as they present themselves.”