Boyd Group Services Inc. reports more than 30% increases to both sales and gross profits for the second fiscal quarter of 2022. Timothy O’Day, president and CEO of the Boyd Group, says demand for services continues to “substantially exceed capacity” in U.S. markets, while Canadian markets see the continued recovery of demand for services.
The Boyd Group wrote in a news release that sales increased by 37.8%, from $444.6 million this time last year to $612.8 million. That includes same-store sale increases of 22.3%. Gross profit increased as well by 35.3%, to $277.5 million from $205.1 million. The company’s adjusted EBITDA1 increased 24.2% to $72 million, with an adjusted EBITDA of $58 million. Boyd Group operations in the U.S. include Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com.
Net earnings increased to $13.3 million compared to $10.5 million during the same period of 2021, while net earnings per share increased to $0.62 compared to $0.49 this time last year. Adjusted net earnings increased to $13.6 million from $11.4 million in the second quarter of 2021, and adjusted net earnings per share increased to $0.63 compared to $0.53 in the same period of 2021.
The Boyd Group also added six locations, including three acquisitions, two start-up locations and one intake center.
“During the second quarter of 2022, we delivered record sales and Adjusted EBITDA, supported by strong same-store sales growth in both Canada and the U.S. as well as solid contributions from new location growth, glass and calibration services,” O’Day says. “Prudent financial management has allowed Boyd to reduce the level of debt, net of cash prior to lease liabilities during both the first and second quarters of 2022. Demand for Boyd’s services continued to substantially exceed capacity in all U.S. markets, while Canadian markets continued to experience recovery of demand for services as conditions began to normalize.”
But the CEO notes that market conditions continue to constrain demand.
“The path to achieving historical levels of performance requires additional labor, pricing increases and continued easing of supply chain pressure,” he continues. “These market conditions continued to result in an under absorption of fixed costs and high levels of work-in-process at the end of the second quarter.”
He says revenue will continue to be impacted in the near-term by levels of absenteeism resulting from COVID-19, in addition to other factors such as vacation time.
“Notwithstanding near-term challenges, Boyd remains confident in the business model and the company’s plan to double the size of the business on a constant currency basis from 2021 to 2025 against 2019 sales,” O’Day says. “In the very near term, same-store sales will continue to be an important driver of growth. Thus far, in the third quarter of 2022, the company has experienced same-store sales growth within the range of the first half of 2022. Accretive growth will remain the company’s long-term focus whether it is through organic growth, new store development, or acquisitions.”