Boyd Group Income Fund Signs Letter of Intent with Paint Supplier
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WINNIPEG, Jan. 31, 2014 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) (the "Fund," "Boyd" or the "Boyd Group") today announced that, further to its news release of October 7, 2013, and the subsequent completion of a competitive market validation process, it has now entered into a letter of intent with its existing paint supplier for a new or amended agreement. Under the new or amended agreement, Boyd will continue to benefit from a back-end purchase discount structure that was put in place as part of the amendment and restructuring of its paint supply agreement in October, 2013.
"We are pleased to have taken the next step towards finalizing a new long-term paint supply arrangement that better reflects our current size, purchasing scale and access to capital, as well as changing paint market conditions," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Under the new arrangement, we will continue to benefit from the accretive nature of the higher, market-driven, back-end purchase discounts achieved by amending and restructuring our previous arrangement last October. We are also very pleased to be able to continue to work with our incumbent paint supplier, who has been a valued business partner since 2006."
Boyd will work with its paint supplier to finalize a definitive agreement prior to March 31, 2014 and Boyd will continue to benefit from the higher back-end purchase discounts during this interim period. Should Boyd not be able to finalize a definitive agreement with it paint supplier by March 31, it assesses that it would have comparable competitive offerings available to it.
About The Boyd Group Income Fund
The Boyd Group Income Fund (http://www.boydgroup.com) is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.
About The Boyd Group Inc.
In terms of locations, The Boyd Group Inc. is the largest operator of non-franchised collision repair centres in North America and one of the largest in terms of sales. The Company operates locations in five Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 15 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com) and Hansen Collision. The Company is also a major retail auto glass operator in the U.S. with locations across 28 U.S. states under the trade names Gerber Collision & Glass, Glass America, Auto Glass Services, Auto Glass Authority, S&L Glass and Hansen Auto Glass. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States.
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", "forecast", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Forward looking statements in this press release include the likelihood of the restructuring of the paint supply arrangements and the Offering being completed on the stated terms or at all and the accretive nature of the stated market-driven, back-end paint purchase discounts to the Fund's earnings and cash flows.
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: ability to successfully complete paint supply arrangement restructuring on an accretive basis; dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; operational performance; rapid growth; loss of key customers; brand management and reputation; insurance risk; quality of corporate governance; tax position risk; risk of litigation; acquisition risk; credit & refinancing risks; dependence on key personnel; employee relations; decline in number of insurance claims; market environment change; reliance on technology; weather conditions; expansion into new markets; fluctuations in operating results and seasonality; increased government regulation and tax risk; execution on new strategies; operating hazards; energy costs; U.S. health care costs and workers compensation claims; low capture rates; key supplier relationships; capital expenditures; competition; potential undisclosed liabilities associated with acquisitions; foreign currency risk; ability to successfully integrate acquisitions and realize synergies; regulatory risks; margin pressure; acquisition and start-up growth and ongoing access to capital; environmental, health and safety risk; interest rates; and the Fund'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 the Fund'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. All forward-looking statements are made as of this date and the Fund assumes no obligation to update such statements.
SOURCE Boyd Group Income FundFor further information:
President & CEO
Tel: (204) 895-1244
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 257)
Chief Financial Officer
Tel: (204) 895-1244