The Boyd Group, parent company to Gerber Collision & Glass and Glass America, reported that its second quarter sales totaled $302.5 million USD ($384 million CAD), a 16-percent increase compared to 2016. The growth is attributed to several factors, one of which was the addition of 54 new locations which accounted for $22.9 million USD ($29.1 million CAD). Same-store sales also increased by 3.4 percent compared to Q1 of 2017.
According to Brock Bulbock, CEO of the Boyd Group, the company achieved record results in sales, however its glass company continued to underperform compared to the same three-month period in 2016.
Year-to-date, the company’s sales totaled $600.9 million USD ($762.9 million CAD), up 12 percent from 2016.
On the conference call with investors, Bulbock noted, “Our glass business continues to underperform in comparison to last year due to pricing and market challenges.” However, he said its auto glass business continues to be profitable, despite losing a large portion of its customer base to a competitor. He reminded investors that in 2016, the auto glass business hit double-digit growth, and he expects that could happen again sometime in the future.
While Bulbock didn’t provide an exact amount, as it’s against the company’s policy, he told investors that Boyd’s auto glass segment is worth somewhere near $100 million.
He also addressed the outlook for Q3, noting several factors that may negatively impact the company’s earnings.
“Looking ahead to the third quarter, the company is facing significant currency headwinds as the recent increase in the value of the Canadian dollar compared to the U.S. dollar will make second quarter to third quarter and year-over-year comparisons challenging,” the financial report states. “While it is still very early in the quarter, and conditions could therefore change as the quarter continues, thus far in the third quarter the glass business continues to face pricing and market challenges that are causing it to underperform in comparison to last year.”
Sales from the acquisition of Assured Automotive were subsequent to Q2, as the deal was finalized on July 4. To date, the company has added 85 centers, amounting to 114 locations in Canada and 366 in the U.S., according to Bulbock.