The Boyd Group, which encompasses Gerber Collision & Glass, Boyd Autobody & Glass and Glass America, announced third quarter 2021 results on Wednesday, which reveal good and bad news.
Perhaps representative of companies across the U.S., the Boyd Group’s results reveal an increase in demand but challenges with labor and supplies. The Group saw an increase of 28.4% in sales, from $381.7 million to $490.2 million, in the same period of 2020. Gross profit increased by 19.6% compared to the third quarter of 2020. Net earnings decreased to $0.4 million compared to $15.9 million in 2020.
The Group added 52 locations, including 35 previously operated as Collision Works in Oklahoma, Kansas and Missouri.
“Throughout the third quarter, demand for services exceeded our capacity in all U.S. markets, which resulted in high levels of work-in-process,” Tim O’Day, Boyd Group’s president and chief financial officer, says in a statement. O’Day adds that adding staff to meet growing demand “has been challenging in an extraordinarily tight labor market, exacerbated by COVID-related absenteeism.” As a result, increasing costs spent on wages was necessary “to both retain and recruit,” O’Day says in the statement.
During the third quarter of 2021, demand grew slowly in Canada but remained below pre-pandemic levels, O’Day says in the statement.
“We believe that the part availability and related margin challenges related to the supply chain disruption is transitory and will normalize as the underlying manufacturing and distribution issues are resolved. In the meantime, we are working with key suppliers to source parts at normal margins, but will continue to use non-primary suppliers when necessary to complete repairs for our clients,” O’Day says in the financial statement.
As a result, O’Day says the Group expects margins to recover in the coming quarters. “Despite these near-term market challenges, our leadership position and strong balance sheet position us well to successfully execute on our plan to double the size of our business by 2025 and deliver attractive returns to our shareholders,” O’Day says.