/NOT FOR DISTRIBUTION TO
- Adjusted EBITDA challenged as mild winter weather impacts demand -
Results and Highlights for the First Quarter Ended
- Sales increased by 10.0% to
$786.5 million from$714.9 million in the same period of 2023, including same-store sales1 increases of 2.2%. The first quarter of 2024 recognized the same number of selling and production days when compared to the same period of 2023 - Gross Profit increased by 7.8% to
$352.6 million or 44.8% of sales from$327.0 million or 45.7% of sales in the same period in 2023 - Adjusted EBITDA1 decreased 3.5% to
$81.7 million , or 10.4% of sales, compared with Adjusted EBITDA of$84.7 million , or 11.8% of sales in the same period of 2023 - Adjusted net earnings1 decreased to
$9.4 million , compared with$21.2 million in the same period of 2023 and adjusted net earnings per share1 decreased to$0.44 , compared with$0.99 in the same period of 2023 - Net earnings decreased to
$8.4 million , compared with$20.8 million in the same period of 2023 and net earnings per share decreased to$0.39 , compared with$0.97 in the same period of 2023 - Debt, net of cash before lease liabilities increased from
$399.2 million atDecember 31, 2023 to$438.5 million atMarch 31, 2024 - Declared first quarter dividend in the amount of
C$0.15 per share - Added 13 collision repair locations, including 12 through acquisition and one start-up location
- Extended the revolving credit facilities maturity to
March 2028 and increased availability to a maximum of$850 million , with the existing$125 million Term Loan A maturing inMarch 2027 remaining unchanged
Subsequent to Quarter End
- Added seven collision repair locations, including six through acquisition and one start-up location
- Published Boyd's third Environmental, Social and Governance ("ESG") Report
"First quarter results were disappointing, with sales of
_________________________________________ |
1 Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers. For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release. |
Results of Operations | For the three months ended, | |||||
(thousands of | 2024 | % change | 2023 | |||
Sales – Total | 786,547 | 10.0 | 714,941 | |||
Same-store sales – Total (excluding foreign exchange)(1) | 727,794 | 2.2 | 712,324 | |||
Gross margin % | 44.8 % | (2.0) | 45.7 % | |||
Operating expense % | 34.4 % | 1.5 | 33.9 % | |||
Adjusted EBITDA (1) | 81,707 | (3.5) | 84,694 | |||
Acquisition and transaction costs | 1,446 | 160.1 | 556 | |||
Depreciation and amortization | 52,618 | 20.1 | 43,795 | |||
Fair value adjustments | (7) | N/A | — | |||
Finance costs | 16,122 | 33.6 | 12,064 | |||
Income tax expense | 3,147 | (57.8) | 7,456 | |||
Adjusted net earnings (1) | 9,444 | (55.5) | 21,234 | |||
Adjusted net earnings per share (1) | 0.44 | (55.6) | 0.99 | |||
Net earnings | 8,381 | (59.8) | 20,823 | |||
Basic and diluted earnings per share | 0.39 | (59.8) | 0.97 |
1.Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Ratios" section of this news release. |
Outlook
"The continuing mild weather and resulting low demand environment has impacted demand for services into the second quarter. This, along with strong comparative period same-store sales has made it challenging to deliver same-store sales growth thus far in the quarter. As is typical, during the summer months we anticipate miles driven to increase and the claims volume and demand for services to increase. While the Company expects claims volumes and demand for services to normalize as the year progresses, Boyd is prepared to take steps to address the challenges the business is currently facing, should the current softer level of demand continue", said
"We have made meaningful progress towards our goal of internalizing scanning and calibration services to drive down cost to our customers and convert a sublet operation to an internal operation. During 2024, we have increased the amount of scanning and calibration services we are able to perform in-house by increasing our workforce in this area by over 60% and expanding the footprint of states that we are able to serve while continuing to increase the remote services we are able to offer."
"Given the high level of location growth in 2021, the strong same-store sales growth during 2022, the combination of same-store sales growth and location growth in 2023, the location growth thus far in 2024, and the commitment of our team to improving performance throughout the remainder of 2024, we remain confident that the Company is on track to achieve its long-term growth goals, including doubling the size of the business on a constant currency basis from 2021 to 2025 against 2019 sales."
2024 First Quarter Conference Call & Webcast
As previously announced, management will hold a conference call on
About
About The
The
Non-GAAP Financial Measures and Ratios
Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures. Boyd's management uses certain non-GAAP financial measures to evaluate the performance of the business and to reward employees. These non-GAAP financial measures are not defined in International Financial Reporting Standards ("IFRS") and should not be considered an alternative to net earnings or sales in measuring the performance of BGSI.
The following is a reconciliation of BGSI's non-GAAP financial measures and ratios:
ADJUSTED EBITDA
Standardized EBITDA and Adjusted EBITDA are measures commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. They are also key measures that management uses to evaluate performance of the business and to reward its employees. While EBITDA is used to assist in evaluating the operating performance and debt servicing ability of BGSI, investors are cautioned that EBITDA and Adjusted EBITDA as reported by BGSI may not be comparable in all instances to EBITDA as reported by other companies.
Three months ended | |||||
(thousands of | 2024 | 2023 | |||
Net earnings | $ 8,381 | $ 20,823 | |||
Add: | |||||
Finance costs | 16,122 | 12,064 | |||
Income tax expense | 3,147 | 7,456 | |||
Depreciation of property, plant and | 16,400 | 11,916 | |||
Depreciation of right of use assets | 29,659 | 25,777 | |||
Amortization of intangible assets | 6,559 | 6,102 | |||
Standardized EBITDA | $ 80,268 | $ 84,138 | |||
Add: | |||||
Fair value adjustments | (7) | — | |||
Acquisition and transaction costs | 1,446 | 556 | |||
Adjusted EBITDA | $ 81,707 | $ 84,694 |
ADJUSTED NET EARNINGS
BGSI believes that certain users of financial statements are interested in understanding net earnings excluding certain fair value adjustments and other items of an unusual or infrequent nature that do not reflect normal or ongoing operations of the Company. This can assist these users in comparing current results to historical results that did not include such items.
(thousands of | Three months ended | |||
2024 | 2023 | |||
Net earnings | $ 8,381 | $ 20,823 | ||
Add: | ||||
Fair value adjustments (non-taxable) | (7) | — | ||
Acquisition and transaction costs (net of tax) | 1,070 | 411 | ||
Adjusted net earnings | $ 9,444 | $ 21,234 | ||
Weighted average number of shares | 21,472,194 | 21,472,194 | ||
Adjusted net earnings per share | $ 0.44 | $ 0.99 |
SAME-STORE SALES
Same-store sales is a non-GAAP measure that includes only those locations in operation for the full comparative period. Same-store sales is presented excluding the impact of foreign exchange fluctuation on the current period.
Three months ended | ||||
(thousands of | 2024 | 2023 | ||
Sales | $ 786,547 | $ 714,941 | ||
Less: | ||||
Sales from locations not in the comparative | (58,563) | (2,624) | ||
Sales from under-performing facilities closed | — | 7 | ||
Foreign exchange | (190) | — | ||
Same-store sales (excluding foreign exchange) | $ 727,794 | $ 712,324 |
Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: employee relations and staffing; acquisition and new location risk; operational performance; brand management and reputation; market environment change; reliance on technology; supply chain risk; margin pressure and sales mix changes; pandemic risk & economic downturn; changes in client relationships; decline in number of insurance claims; environmental, health and safety risk; climate change and weather conditions; competition; access to capital; dependence on key personnel; tax position risk; corporate governance; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates;
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of BGSI's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.
SOURCE
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