Boyd Group Services Inc. reports an increase of more than 30% in sales and gross profit for the second fiscal quarter of 2022. Timothy O’Day, President and CEO of Boyd Group, says demand for services continues to “significantly exceed capacity” in US markets, while Canadian markets see continued recovery in demand for services.
The Boyd Group wrote in a press release that sales increased 37.8% from $444.6 million last year to $612.8 million. This includes an increase in comparable store sales of 22.3%. Gross profit also increased by 35.3%, from $205.1 million to $277.5 million. The company’s adjusted EBITDA1 increased by 24.2% to reach $72 million, with an adjusted EBITDA of $58 million. Boyd Group operations in the United States include Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com.
Net income increased to $13.3 million from $10.5 million in the same period of 2021, while net earnings per share increased to $0.62 from $0.49 in the same period last year. Adjusted net earnings increased to $13.6 million from $11.4 million in the second quarter of 2021, and adjusted net earnings per share increased to $0.63 from $0.53 in the same period of 2021.
The Boyd Group also added six sites, including three acquisitions, two start-up sites and a welcome center.
“During the second quarter of 2022, we delivered record sales and adjusted EBITDA, supported by strong comparable store sales growth in Canada and the United States as well as strong contributions from new location growth, glass and calibration services,” said O’Day. . “Prudent financial management allowed Boyd to reduce the level of indebtedness, net of cash before lease obligations during the first and second quarters of 2022. Demand for Boyd’s services continued to significantly exceed the capacity in all U.S. markets, while Canadian markets continued to experience a recovery in service demand as conditions began to normalize.
But the CEO notes that market conditions continue to limit demand.
“Reaching historic performance levels requires additional manpower, price increases, and a continued release of pressure on the supply chain,” he continues. “These market conditions continued to result in under-absorption of fixed costs and high levels of work in progress at the end of the second quarter.”
He says revenue will continue to be affected in the short term by levels of absenteeism resulting from COVID-19, in addition to other factors such as holidays.
“Despite the short-term challenges, Boyd remains confident in the company’s business model and plan to double the size of the business at constant currency from 2021 to 2025 compared to 2019 sales,” said O’Day. “In the very near term, same-store sales will continue to be an important driver of growth. So far in the third quarter of 2022, the company has seen same-store sales growth in the range of the first half of 2022. Accretive growth will remain the company’s long-term focus, whether through organic growth, new store development, or acquisitions.