Boyd Group: Strong Glass Sales Continued into Q3

Brock Bulbuck

Brock Bulbuck

“While glass sales are traditionally strongest in the second quarter of the year, we continued to see strong glass same-store sales growth in the third quarter,” said Brock Bulbuck, president and CEO of Boyd Group Income Fund, in a letter to shareholders.

Overall sales for the quarter increased by 38.1 percent to $223 million USD ($301.1 million CAD) from $164.44 million USD ($218.1 million CAD) in 2014 for Boyd Group, parent company to Gerber Collision & Glass, Glass America and others. This figure included a same-store sales increase of 7.3 percent.

The company posted a net loss of $14.7 million USD ($19.5 million CAD) for the quarter due to “fair value adjustments to financial instruments primarily as a result of the significant unit price increase in the quarter, as well as acquisition and transaction costs, along with accelerated amortization of acquired brands,” according to the report.

“These non-cash charges amounted to $22.5 million USD ($29.8 million CAD),” writes Bulbuck in the letter. “This compares to net earnings of $6.3 million USD ($8.4 million CAD) in the third quarter of 2014 when the impact of these adjustments were not as significant. Excluding the impact of these items, adjusted net earnings in 2015 were $7.76 million USD ($10.3 million CAD), or 3.4 percent of sales, compared to adjusted net earnings of $5.12 million USD ($6.8 million CAD), or 3.1 percent of sales, in 2014.”

With more than $282.8 million USD ($375 million CAD) in available cash and credit facilities, Bulbuck noted the company is continuing its growth trajectory in purchasing new locations

“As we look forward the next few quarters, we need to acknowledge that we are now entering our seasonally weaker fourth and first quarters for our glass businesses,” said Bulbuck on a conference call discussing third-quarter results. “We also have the uncertainty of the impact on El Nino this coming winter which is expected to bring unusually warm and dry conditions to the northern states.”

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