Boyd Group Providers Inc. Stories Fourth Quarter and Full Yr 2020 Outcomes | 2021-03-24 | Press Releases

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– Demonstrating resilience throughout unprecedented times-

WINNIPEG, MB , March 24, 2021 /CNW/ – Boyd Group Providers Inc. (TSX: BYD) (“the Boyd Group”, “Boyd” or “the Firm”) at the moment introduced the outcomes for the three and twelve-month durations ended December 31, 2020. The Boyd Group’s fourth quarter 2020 monetary statements and MD&A have been filed on SEDAR ( www.sedar.com ). This information launch is just not in any means an alternative to studying Boyd’s monetary statements, together with notes to the monetary statements, and Boyd’s Administration’s Dialogue & Evaluation.

2020 Outcomes and Highlights:

  • Accomplished the conversion of the Fund from an revenue belief to a public company named Boyd Group Providers Inc., pursuant to the plan of association below the Canada Enterprise Firms Act
  • Appointed Tim O’Day President & CEO, in accordance with the beforehand introduced CEO succession plan with Brock Bulbuck transferring into the function of Govt Chair
  • Monetary outcomes had been considerably impacted by the COVID-19 pandemic
  • Gross sales decreased by 8.5% to $2.1 billion from $2.3 billion in the identical interval of 2019, together with same-store gross sales decreases of 15.6%, with Canada having a larger damaging affect because of the slower financial reopening and extra important restrictions in place when in comparison with the U.S.
  • Adjusted EBITDA 1 decreased 8.2% to $293.6 million , together with the good thing about $16.9 million of Canada Emergency Wage Subsidy (“CEWS”), in contrast with Adjusted EBITDA of $319.9 million in 2019
  • Adjusted web earnings 1 decreased 43.8% to $54.0 million , in contrast with $96.1 million in adjusted web earnings in 2019 and adjusted web earnings per share/unit 1 decreased 46.8% to $2.57 , in contrast with $4.83 in 2019
  • Web earnings decreased 10.0% to $57.7 million , in contrast with $64.1 million in 2019 and web earnings per share/unit decreased 14.9% to $2.75 , in contrast with $3.23 in 2019
  • Money stability at quarter finish of $77.7 million
  • Constructive money flows offered by working actions of $307.0 million , a rise from $295.9 million in 2019
  • Web debt of $685.6 million and web debt excluding lease liabilities of $151.7 million
  • Elevated and prolonged its revolving credit score facility to US$550 million , with an accordion function which might improve the power to a most of US$825 million , accompanied by the addition of a brand new seven-year fixed-rate Time period Mortgage A within the quantity of US$125 million , maturing in March 2025 and March 2027 , respectively
  • Accomplished a public providing for the issuance of 1,265,000 widespread shares at a worth of $183.00 per share for gross proceeds to the Firm of $231.5 million
  • Entered into an modification to the Credit score Facility meant to regulate the covenant calculations for the distorting affect of the pandemic
  • Introduced the election of John Hartmann and William Onuwa to its Board of Administrators, in addition to Gene Dunn’s retirement from the Board of Administrators
  • Settled the decision choice transaction to amass the 21.16% non-controlling curiosity in Gerber Glass LLC held by a member of the U.S. administration staff
  • Elevated quarterly dividends by 2.2% in November 2020 , bringing dividends to an annualized quantity of $0.56 per share from $0.55 per share
  • Development continued, though acquisition exercise paused from late March to mid-August
  • Added 54 new areas, together with 11 consumption facilities and entered the state of Arkansas
  • Introduced 5 12 months development plan, to double the dimensions of the enterprise on a relentless foreign money foundation from 2021 to 2025, based mostly on 2019 revenues
  • Introduced conversion to U.S. greenback reporting beginning January 2021

Subsequent to Quarter Finish

  • Added 16 areas, together with seven consumption facilities
  • Declared first quarter dividend within the quantity of $0.141 per share
  • Introduced the deliberate retirement of Unbiased Board Chair, Allan Davis

“The steps our staff has taken because the onset of the pandemic have constantly positioned us properly throughout these unprecedented instances, and our 2020 outcomes replicate the affect of those efforts,” stated Tim O’Day , President & Chief Govt Officer of the Boyd Group. “By means of prudent administration of bills, a give attention to liquidity, and our potential to regulate capability relative to modifications in demand, we have now posted respectable outcomes, regardless of the decline in revenues attributable to COVID-19. All year long, we continued to regulate our enterprise in accordance with modifications in demand for our companies, first lowering after which subsequently including again manufacturing capability as demand for collision restore companies rose. As we proceed to navigate by this pandemic atmosphere, our priorities stay caring for the well being and security of each our staff members and our prospects and making ready for the longer term that lies forward.”

Together with the deliberate retirement of Allan Davis from the Board, the Board has nominated David Brown because the incoming Unbiased Chair, topic to his re-election on the upcoming Annual Basic and Particular Assembly. Moreover, Robert Espey , CEO of Parkland Company has been nominated and can stand for election to the Board. The Board has additionally reaffirmed its dedication to range, aspiring to extend from its present 22% to a minimal of 30% gender range on the Board by the Annual Basic Assembly of 2024.

“On behalf of our whole Firm, in addition to all of our Stakeholders, I want to thank Al for the various years of devoted service he has offered to Boyd. I additionally sit up for working with Dave as incoming Unbiased Chair and Bob as a brand new member of our Board,” stated Tim O’Day .

Outcomes of Operations

For the three months ended,

December 31,

For the years ended,

December 31,

(1000’s of Canadian {dollars}, besides per

unit quantities)

2020

% change

2019

2020

% change

2019

Gross sales – Complete

526,003

(10.2)

585,966

2,089,115

(8.5)

2,283,325

Identical-store gross sales – Complete (excluding overseas

change)

507,313

(12.6)

580,550

1,771,294

(15.6)

2,099,505

Gross margin %

45.8 %

1.8

45.0 %

46.0 %

1.3

45.4 %

Working expense %

30.9 %

0.7

30.7 %

32.0 %

1.9

31.4 %

Adjusted EBITDA (1)

78,433

(6.7)

84,053

293,551

(8.2)

319,872

Acquisition and transaction prices

487

(50.9)

991

1,999

(58.8)

4,850

Depreciation and amortization

44,555

5.4

42,273

176,676

14.0

154,958

Honest worth changes

(2,513)

(128.6)

8,799

(5,191)

(118.3)

28,330

Finance prices

8,259

(18.5)

10,129

42,596

11.6

38,185

Earnings tax expense

6,603

(13.2)

7,608

19,737

(32.9)

29,402

Adjusted web earnings (1)

18,889

(20.6)

23,785

54,022

(43.8)

96,066

Adjusted web earnings per share/unit (1)

0.88

(26.1)

1.19

2.57

(46.8)

4.83

Web earnings

21,042

47.6

14,253

57,734

(10.0)

64,147

Fundamental earnings per share/unit

0.98

36.1

0.72

2.75

(14.9)

3.23

Diluted earnings per share/unit

0.98

36.1

0.72

2.60

(16.6)

3.12

1.Standardized EBITDA, Adjusted EBITDA (earnings earlier than curiosity, revenue taxes, depreciation and amortization, adjusted for the truthful worth changes associated to the exchangeable share legal responsibility, unit choice legal responsibility, non-controlling curiosity name legal responsibility / put choice and contingent consideration, in addition to acquisition and transaction prices), adjusted web earnings and adjusted web earnings per share/unit usually are not acknowledged measures below Worldwide Monetary Reporting Requirements (“IFRS”). Administration believes that along with income, web earnings and money flows, the supplemental measures of adjusted web earnings, Standardized EBITDA and Adjusted EBITDA are helpful as they supply buyers with a sign of earnings from operations and money out there for distribution, each earlier than and after debt administration, productive capability upkeep and non-recurring and different changes. Traders needs to be cautioned, nevertheless, that Standardized EBITDA, Adjusted EBITDA, adjusted web earnings and adjusted web earnings per share/unit shouldn’t be construed as an alternative choice to web earnings decided in accordance with IFRS as an indicator of Boyd’s efficiency. Boyd’s methodology of calculating these measures could differ from different public issuers and, accordingly, might not be similar to comparable measures utilized by different issuers. For an in depth clarification of how Boyd’s non-GAAP measures are calculated, please consult with Boyd’s MD&A submitting for the interval ended December 31, 2020, which might be accessed through the SEDAR Website (www.sedar.com).

Outlook

The COVID-19 pandemic continues to affect Boyd’s enterprise. So far within the first quarter of 2021, same-store gross sales exercise is at the same degree to that achieved within the fourth quarter of 2020. Canada continues to have tighter restrictions and a slower financial reopening when in comparison with the U.S. This has had a big affect on same-store gross sales exercise in Canada . These declines have been partially offset by the Canada Emergency Wage Subsidy (“CEWS”), which has been prolonged to June 2021 . Boyd will proceed to make functions below the CEWS program so long as eligibility standards are met. Nonetheless, quantities anticipated to be acquired in 2021 shall be considerably decrease than these recorded in 2020 as a consequence of program modifications introduced thus far. Within the U.S., gross sales exercise has skilled variability all through the assorted states during which we function. Variability has been attributable to completely different ranges of restrictions by state, a big surge in COVID-19 infections, and weird climate occasions in southern states, which contributed to energy outages skilled in Texas .

“Regardless of the COVID-19 pandemic, our outcomes show that Boyd is properly positioned to proceed to navigate by this difficult atmosphere,” stated O’Day. “Throughout 2021, we are going to give attention to our development technique, to double the dimensions of the enterprise on a relentless foreign money foundation from 2021 to 2025, based mostly on 2019 revenues, implying a compound annual development charge of 15 p.c. We’ll pursue accretive development by a mix of natural development (same-store gross sales development) in addition to including new areas to our community in america and Canada . New location development will proceed to incorporate single location acquisitions, in addition to brownfield and greenfield start-ups, and multi location acquisitions. As beforehand introduced, with a purpose to scale back volatility from change charges, efficient January 1, 2021 , and starting with the reporting of outcomes for the primary quarter of 2021, we are going to change our presentation foreign money and start reporting our leads to U.S. {Dollars}. Given nearly 90% of our revenues come from the U.S., that is an acceptable foreign money for reporting functions. With prudent monetary administration and our robust stability sheet, together with dry powder of over $1 billion , we’re well-positioned to benefit from acquisition alternatives as they come up.”

2020 Fourth Quarter Convention Name & Webcast

As beforehand introduced, administration will maintain a convention name on Wednesday, March 24, 2021 , at 10:00 a.m. (ET) to evaluate the Firm’s 2020 fourth quarter outcomes. You’ll be able to be a part of the decision by dialing 888-231-8191 or 647-427-7450. A dwell audio webcast of the convention name shall be out there by www.boydgroup.com . An archived replay of the webcast shall be out there for 90 days. A taped replay of the convention name may even be out there till Wednesday, March 31, 2021 , at midnight by calling 1-855-859-2056 or 416-849-0833, reference quantity 6346108.

About Boyd Group Providers Inc.

Boyd Group Providers Inc. is a Canadian company and controls The Boyd Group Inc. and its subsidiaries. Boyd Group Providers Inc. shares commerce on the Toronto Inventory Alternate (TSX) below the image BYD.TO. For extra data on The Boyd Group Inc. or Boyd Group Providers Inc., please go to our web site at http://www.boydgroup.com .

About The Boyd Group Inc.

The Boyd Group Inc. (the “Firm”) is likely one of the largest operators of non-franchised collision restore centres in North America by way of variety of areas and gross sales. The Firm operates areas in Canada below the commerce names Boyd Autobody & Glass ( http://www.boydautobody.com ) and Assured Automotive ( http://www.assuredauto.ca ) in addition to within the U.S. below the commerce title Gerber Collision & Glass ( http://www.gerbercollision.com ). As well as, the Firm is a significant retail auto glass operator within the U.S. with operations below the commerce names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com. The Firm additionally operates a 3rd occasion administrator, Gerber Nationwide Claims Providers (“GNCS”), that provides glass, emergency roadside and first discover of loss companies. For extra data on The Boyd Group Inc. or Boyd Group Providers Inc., please go to our web site at ( http://www.boydgroup.com ).

To view Boyd Group Providers Inc. 2020 monetary statements and notes, please click on right here .

Warning regarding forward-looking statements

Statements made on this press launch, aside from these regarding historic monetary data, could also be forward-looking and due to this fact topic to numerous dangers and uncertainties. Some forward-looking statements could also be recognized by phrases like “could”, “will”, “anticipate”, “estimate”, “anticipate”, “intend”, or “proceed” or the damaging thereof or comparable variations. Readers are cautioned to not place undue reliance on such statements, as precise outcomes could differ materially from these expressed or implied in such statements. Components that might trigger outcomes to range embrace, however usually are not restricted to: pandemic danger & financial downturn; operational efficiency; acquisition danger; worker relations and staffing; model administration and status; market atmosphere change; reliance on expertise; lack of key prospects; decline in variety of insurance coverage claims; margin stress and gross sales combine modifications; environmental, well being and security danger; climate situations and local weather change; competitors; entry to capital; overseas foreign money danger; dependence on key personnel; tax place danger; company governance; elevated authorities regulation and tax danger; fluctuations in working outcomes and seasonality; danger of litigation; execution on new methods; insurance coverage danger; rates of interest; U.S. well being care prices and employees compensation claims; low seize charges; provide chain danger; capital expenditures; and vitality prices and BGSI’s success in anticipating and managing the foregoing dangers.

We warning that the foregoing checklist of things is just not exhaustive and that when reviewing our forward-looking statements, buyers and others ought to consult with the “Threat Components” part of BGSI’s Annual Data Kind, the “Dangers and Uncertainties” and different sections of our Administration’s Dialogue and Evaluation of Working Outcomes and Monetary Place and our different periodic filings with Canadian securities regulatory authorities. All forward-looking statements offered herein needs to be thought of together with such filings.

SOURCE Boyd Group Providers Inc.

Cision View unique content material to obtain multimedia: http://www.newswire.ca/en/releases/archive/March2021/24/c7986.html

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