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- Driving Growth & Enhancing Profitability -
WINNIPEG, MB, Feb. 26, 2025 /CNW/ - Boyd Group Services Inc. (TSX: BYD.TO) ("BGSI", "the Boyd Group", "Boyd" or "the Company"), a leading player in the North American collision and retail glass industry, today announced the launch of its latest five-year goal designed to drive growth and enhance profitability through 2029. The Company will host a conference call on February 26, 2025, at 5:30pm EST to discuss the plan in detail.
Key Highlights of Boyd's Five-Year Goal:
Grow revenue to $5B in 2029
Double Adjusted EBITDA(1) to $700M between 2024-2029 (based on Q3/2024 TTM results)
Expand market share and retain a leadership position in all markets served
Achieve top-tier profitability in the North American collision industry
"As I prepare for my retirement in May and with Brian's appointment as CEO, it is the ideal time for Boyd to unveil its new five-year goal," said Tim O'Day, Chief Executive Officer of the Boyd Group. "Building on the significant growth Boyd has experienced to date; this plan delivers continued double-digit percentage revenue growth and accelerated profitability. I am confident in Brian and the team's ability to execute this plan and capitalize on the significant opportunities in our highly fragmented market."
"I am excited to lead Boyd into this next phase of growth," added Brian Kaner, President & Chief Operating Officer and incoming CEO. "Our new five-year goal is focused on expanding our market share along with Adjusted EBITDA(1) margins as we continue to consolidate the North American collision industry. We will achieve this goal through continued execution of our accretive growth strategy, driving revenue to $5B and delivering double digit annual revenue growth. Our top line growth will be augmented through the implementation of a company-wide cost optimization initiative, focused on enhancing profitability and returns across the organization. Through this initiative, we expect to achieve $100M in recurring annual cost savings, setting us on a path to double Adjusted EBITDA(1) to $700M by 2029. We are confident that as we execute this plan, we will further solidify Boyd's leading position in the North American collision market and drive strong returns for our shareholders."
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(1) Adjusted EBITDA and Adjusted EBITDA margins are non-GAAP financial measures and are not standardized financial measures under the International Reporting Standards and may not be comparable to similar financial measures disclosed by other issuers For additional details, please see Non-GAAP Financial Measures and Ratios in Boyd's MD&A filing (dated November 5, 2024) for the period ended September 30, 2024
Key Strategic Initiatives:
Expand Market Share and Retain a Leadership Position in All Markets Served: Boyd's $5B revenue goal for 2029 will be driven by a combination of same-store sales growth and new shop expansion. This expansion encompasses single shop acquisitions, brownfield and greenfield start-ups and small multi-location acquisitions, all focused on attaining a #1 or #2 market position in each market served. Leveraging its strong free cash flow generation and solid balance sheet, the Company is well positioned to fund this growth with an estimated $1.5B in cash available for growth through the plan period. Boyd will also continue to be a strategic buyer of larger multi-location acquisitions and if successful, these acquisitions would be incremental to the Company's revenue growth goals.
Achieve Top-Tier Profitability in The North American Collision Industry: The Company is accelerating its focus on operational excellence and profitability with "Project 360", a company-wide transformation initiative launched in Q4 2024 in partnership with a leading global consulting firm. Project 360 is designed to expand margins as Boyd scales its business and grows its market share. Key areas of focus include optimizing the store operating model to improve profitability as volumes scale, enhancing parts and indirect procurement to drive cost efficiencies and leveraging technology to streamline operations and improve scalability. Project 360 is projected to generate $100M in recurring annual cost savings and position Boyd to grow Adjusted EBITDA(1) by a 15% annual CAGR over the next five years. Upfront investment and transition costs related to Project 360 are projected to be between $20-$23M over the coming quarters.
2029 Financial Targets:
Revenue: $5 billion
Adjusted EBITDA(1): $700 million
Adjusted EBITDA Margin(1): 14%
Net Debt to Adjusted EBITDA (Pre-IFRS): 2.0-2.5x(1) (2) (3)
Net Debt to Adjusted EBITDA (Post-IFRS): 3.0-3.5x(1)(2)(3)
Conference Call: Boyd will host a conference call on February 26, 2025, at 5:30pm EST to discuss the new strategic plan in more detail. A presentation summarizing the plan will be available after markets close on February 26, 2025, in the "Investors" section of the Boyd Group's website at www.boydgroup.com.
To participate in the conference call, please dial 888-699-1199 or 416-945-7677. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3QopxCu to receive an instant automated callback. A live webcast of the conference call will be available at https://app.webinar.net/ZLxgDPoE7eX. An archived replay of the webcast will be available for 90 days. An audio replay of the conference call will also be available until Wednesday, March 5, 2025, at midnight by calling 888-660-6345 or 289-819-1450, replay entry code 49863 #.
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(1)Adjusted EBITDA and Adjusted EBITDA margins are non-GAAP financial measures and are not standardized financial measures under the International Reporting Standards and may not be comparable to similar financial measures disclosed by other issuers. For additional details, please see Non-GAAP Financial Measures and Ratios in Boyd's MD&A filing (dated November 5, 2024) for the period ended September 30, 2024
(2) Net debt / Adjusted EBITDA on a pre- and post-IFRS 16 basis
(3) Could exceed on a temporary basis for scaled MSO acquisitions at the right economics
About Boyd Group Services Inc. Boyd Group Services Inc. is a Canadian corporation and controls The Boyd Group Inc. and its subsidiaries. Boyd Group Services Inc. shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO. For more information on The Boyd Group Inc. or Boyd Group Services Inc., please visit our website at https://www.boydgroup.com.
About The Boyd Group Inc. The Boyd Group Inc. (the "Company") is one of the largest operators of non-franchised collision repair centres in North America in terms of number of locations and sales. The Company operates locations in Canada under the trade names Boyd Autobody & Glass (https://www.boydautobody.com) and Assured Automotive (https://www.assuredauto.ca) as well as in the U.S. under the trade name Gerber Collision & Glass (https://www.gerbercollision.com). In addition, the Company is a major retail auto glass operator in the U.S. with operations under the trade names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com. The Company also operates a third party administrator, Gerber National Claims Services ("GNCS"), that offers glass, emergency roadside and first notice of loss services. The Company also operates a Mobile Auto Solutions ("MAS") service that offers scanning and calibration services. For more information on The Boyd Group Inc. or Boyd Group Services Inc., please visit our website at (https://www.boydgroup.com).
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; U.S. health care costs and workers compensation claims; foreign currency risk; capital expenditures; low capture rates; and energy costs and BGSI's success in anticipating and managing the foregoing risks.
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.
