Boyd Group Reports 5.1 Percent Decrease in Sales for Second Quarter
August 13, 2010

The Boyd Group, which owns Boyd Autobody and Glass and Gerber Collision and Glass, reported this week that its sales dropped 5.1 percent for the second quarter-to $52.3 million, from $55.1 million in the same quarter of 2009.

The decrease consisted of $4.6 million due to a lower U.S. dollar translation rate on sales generated from Boyd Group's U.S. operations and $0.7 million due to a 1.3 percent same-store sales decline, offset by sales generated from new collision repair start-ups of $2.5 million, according to the company's statement.

Sales in the United States totaled $35.8 million in the second quarter
of 2010, a decrease of $0.7 million, or 1.9 percent, over the same period in 2009. Sales in the United States included sales of $2.5 million from new locations in Glendale, Ariz.; Anthem, Ariz.; Rome, Ga.; Avondale, Ariz.; and three new locations in Tucson, Ariz., as well as Cartersville, Ga.; Owasso, Okla.; and Evanston, Ill.

Sales in Canada totaled $16.5 million for the three months ended June 30, 2010, a decrease of $2.1 million or 11.3 percent. The company attributes the decrease in the Canadian market to same-store sales declines due to a soft market and a mild, dry winter.

The company's net earnings for the quarter were $2.1 million, 4 percent of its sales, compared with the same figure in 2009, comprising 3.8 percent of its sales for that time period.

"We are pleased to again report stable net earnings, EBITDA, and operating cash flow during the quarter, despite the negative impact of the weaker U.S. dollar on our U.S. operations, the continuing negative impact of the economy and the carry-over impact of extreme mild and dry winter months in many of our northern markets," says Brock Bulbuck, president and chief executive officer of the Boyd Group.

He adds, "In addition to posting good results in a challenging market environment this quarter, we are very excited to have recently completed the acquisition of True2Form Collision Repair Centers Inc."

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $3.5 million for the quarter, compared with $3.7 million in 2009-a 5.4 percent drop.

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