The Boyd Group, which operates a number of collision and glass locations, including Gerber Collision & Glass in the U.S., says it experienced a nearly 30% sales increase in reporting the company’s 2022 financial results. Paired with a same-store sales increase of nearly 20% and a net earnings increase of 74%, Timothy O’Day, president and CEO of the Boyd Group, says last year’s demand for services “consistently exceeded” the group’s capacity in all U.S. markets, resulting in records sales.
For 2022, the Boyd Group reports a 29.9% sales increase to $2.4 billion from $1.9 billion during the same period in 2021. That includes same-store sales increases of 19.8%. Additionally, net earnings increased 74% to $41 million compared to $23.5 million in 2021.
The Boyd Group also added 40 new locations, including 23 acquisition locations, 12 start-up locations and five intake centers for the reporting period. If the timeline is expanded to include the first three months of 2023 as well, the total number of new collision repair locations for the Boyd Group increased to 57. Of the group’s 860 locations, 727 are in the U.S., with Florida boasting the most locations at 73 followed by Michigan with 72.
“We are pleased with the strong financial results reported in 2022, achieving record sales and showing resilience in the face of many challenges, including supply chain disruption and an extremely tight labor market with accompanying wage pressure”, O’Day says. “Demand for services consistently exceeded our capacity in all U.S. markets.”
As a result of the demand for services exceeding capacity, the Boyd Group closed 23 intake centers in the U.S. The action was taken as a cost-reduction measure but is not expected to significantly impact financial results, according to the report.
“Our intake location strategy is intended to drive same-store sales growth at times when capacity is not constrained,” O’Day says. “In late 2022 and early 2023, we decided to close many intake locations in the U.S. based on the reality of current capacity constraints we face. We plan to increase production location growth during 2023 in relation to 2022.”
O’Day also notes that disruptions in the supply chain began to ease in 2022 but continued to delay the completion of repairs, with work-in-progress inventory showing a subsequent increase. He adds that the group negotiated selling rate increases from insurance company clients to better reflect labor cost increases.
“We continue to experience high volumes of work and we are benefiting from increased scanning and calibration revenue,” O’Day says. “However, there has also been a continued shift to a higher mix of parts in relation to labor, driven by increasing repair complexity.”