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Letter to the Editor
Monday November 15
Boyd Group Income Fund Q3 Profit Up
The Boyd Group Income Fund generated higher profits in the latest quarter on a 45 percent jump in revenues, but said its North American auto body shop business faces a continued slowdown.The Winnipeg-based auto body shop consolidator earned $1.3 million Cdn or 14 cents a unit for the three months ended Sept. 30. That compared with a profit of $980,000 or 18 cents a unit for the same period the previous year. Quarterly revenues rose 45 percent to $42.3 million from $29.1 million, primarily from an acquisition in the United States earlier this year.
"While we have achieved solid revenue growth, primarily as a result of our acquisition of Gerber Group earlier this year, our overall financial performance continues to be negatively impacted by a prolonged slowdown in the North American auto collision repair industry," said Terry Smith, president and CEO of the fund. "As a result, year-to-date revenue and distributable cash generated is below our expectations. Despite challenging market conditions, we remain confident in our business outlook and operating strategy."
During the third quarter, the company opened two new locations in the Chicago area, acquired two additional shops in the Atlanta area and disposed of under-performing operations in Kansas.
"Further, we expect to commence operations in three new locations in Illinois by the end of this year," he said. "These initiatives are expected to positively impact our operating results."
The Boyd Group operates 86 corporate and eight franchised locations under its trade names in Western Canada and the states of Oklahoma, Washington, Nevada, Arizona, Illinois, Kansas and Georgia.
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