Boyd Group Services Inc. (The Boyd Group) released its 2020 third quarter financial report recently and noted its financial results were impacted significantly by the pandemic. According to the report, sales decreased by 10.3% to $508.3 million from $567.0 million when compared to the same period last year. Same-store sales decreased by 15%, with Canada having a greater negative impact due to the slower economic reopening, according to the report.
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.
“The steps our team has taken since the onset of the pandemic have positioned us well, and our third quarter results are a direct result of these efforts,” 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:
- Adding five locations, including one intake center;
- Announcing a five-year growth plan; and
- Announcing its U.S. dollar reporting starting January 2021
“In the third quarter of 2020, we have posted strong results, in spite of the decline in revenues caused by COVID-19,” O’Day said. “Throughout the quarter, we continued to adjust our business in accordance with changes in demand for our services, increasing production capacity as demand for collision repair services rose. During the quarter, we were also able to recommence the completion of acquisitions and entered into the state of Arkansas. As we continue to navigate through this pandemic environment, our priorities remain taking care of the health and safety of both our team members and our customers and preparing for the future that lies ahead.”
According to the financial report, thus far in the fourth quarter of 2020, same-store sales activity has continued below normal levels, although slightly better than reported in the third quarter. The company also noted that it took a cautious approach to bringing back resources as revenue grew, which benefited Q3 earnings.
“We are pleased to announce our new five-year growth strategy. Despite the COVID-19 pandemic, our results demonstrate that Boyd is well positioned to continue to navigate through this challenging environment,” said O’Day. “Our new growth strategy is to double the size of the business on a constant currency basis from 2021 to 2025, based on 2019 revenues, implying an average annual growth rate of 15%.”
In order to achieve the company’s five-year strategy it will pursue accretive growth through a combination of organic growth, as well as adding new locations to its network in the United States and Canada, according to the report.
“Additionally, to reduce volatility from exchange rates, effective January 1, 2021, we will change our presentation currency and begin reporting our results in U.S. Dollars,” said O’Day. “Given almost 90% of our revenues come from the U.S., this is an appropriate currency for reporting purposes. With prudent financial management and our strong balance sheet, including dry powder of over $1 billion, we are well-positioned to take advantage of acquisition opportunities as they arise.”