Boyd Group Income Fund reports 2008 second quarter results



    
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    THE UNITED STATES./
    


    WINNIPEG, Aug. 13 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the
Fund" or "the Boyd Group") today reported its financial results for the three
and six-month period ended June 30, 2008. The Fund's complete fiscal 2008
second quarter financial statements and MD&A will be filed on www.sedar.com on
August 13, 2008.

    
    2008 Second Quarter Highlights

    -   Revenue increased to $50.6 million compared to $47.7 million in
        Q2 2007
    -   Same store sales growth of 11.3% in the U.S. and 3.7% in Canada
    -   Net earnings from continuing operations of $2.0 million compared to
        $1.0 million in Q2 2007
    -   EBITDA(1) totalled $3.5 million compared to $3.1 million in Q2 2007
    -   Adjusted distributable cash(2) increased to $3.6 million from
        $2.3 million in Q2 2007
    -   Trustees of the Fund approved an increase in monthly cash
        distributions from $0.0175 per unit to $0.01875 per unit
    

    "We are pleased to report on another quarter of improved performance,
with increases in revenue, EBITDA, net earnings from continuing operations and
cash available for distribution," said Terry Smith, CEO of the Boyd Group. "As
a result of our strengthening balance sheet and marked improvement in
financial performance, in both March and May of this year we announced
increases to monthly distributions. Subsequent to the end of the second
quarter, on August 13, 2008, the Trustees of the Fund approved an additional
increase in monthly distributions to $0.01875 per unit beginning in October
2008. With stable to improving financial performance, we expect that
distributions will continue to be gradually increased over time."
    Despite the negative effect of translating U.S. revenues at lower
exchange rates, revenue for the three months ended June 30, 2008 increased
6.2% to $50.6 million compared to revenue of $47.7 million in the second
quarter of 2007, after adjusting for the effect of discontinued operations.
The increased revenue resulted from same store sales growth, both in Canada
and the U.S., as well as new sales generated from one U.S. start-up which
began operations in 2007 and two U.S. start-ups which commenced operations in
2008.
    Earnings before interest, income taxes, depreciation and amortization
("EBITDA")(1) for the second quarter of 2008 totalled $3.5 million or 6.9% of
sales compared to EBITDA of $3.1 million or 6.6% of sales in the same period
of the prior year.
    Net earnings from continuing operations for the second quarter of 2008
increased to $2.0 million or 3.9% of sales from $1.0 million or 2.1% of sales
for the same period in 2007.
    For the three months ended June 30, 2008, net earnings after discontinued
operations were $0.2 million or $0.018 per unit and Class A common share,
compared to $0.9 million or $0.081 per unit and Class A common share for the
same period a year ago. The decrease in earnings reflects a loss of $1.7
million related to the decision to discontinue operations in certain
underperforming facilities.
    On a segmented basis, sales in Canada in the second quarter of 2008
totalled $18.3 million, an increase of $0.7 million or 3.7%, compared to the
second quarter a year ago. Sales increases in Canada were entirely due to same
store sales growth.
    Sales in the U.S. in the second quarter of 2008 totalled $32.3 million up
by $2.3 million or 7.6% from $30.0 million in the second quarter a year ago.
Sales in the U.S. included $1.6 million in new sales from one 2007 start-up in
Arizona, as well as two 2008 start-ups in Kansas and Washington. Excluding the
impact of foreign currency translation, U.S. same store sales increased by
$3.4 million or 11.3%, when compared to the second quarter a year ago.
    For the six months ended June 30, 2008 revenue increased 3.9% to
$102.1 million compared to revenue of $98.3 million in the same period a year
ago. The Fund's EBITDA for the six months ended June 30, 2008 totalled $7.1
million, or 6.9% of sales, compared to EBITDA of $6.5 million, or 6.6% of
sales, in the corresponding period a year ago. For the six months ended June
30, 2008, net earnings from continuing operations were $4.1 million or 4% of
sales compared to $2.0 million of 2.0% of sales for the same period in 2007.
Net earnings after discontinued operations were $2.1 million or $0.179 per
unit and Class A common share, compared to earnings of $1.6 million or $0.153
per unit and Class A common share in the same period a year ago.
    The Fund had total debt outstanding at June 30, 2008 of $21.8 million
compared to $30.1 million at December 31, 2007 and $36.1 million at June 30,
2007. On April 15, 2008, the Fund repaid the final $0.6 million U.S. of its
Canadian senior debt facility. The net working capital ratio was 0.92:1 at
June 30, 2008, unchanged from December 31, 2007.

    Distributable Cash(2)

    Adjusted distributable cash for the second quarter, which includes
adjustments for the collection of additional prepaid rebates, cash flow used
in discontinued operations, proceeds on the sale of equipment and capital
lease repayments, increased to $3.6 million from $2.3 million in the second
quarter a year ago.
    Based on continued improvement in the Fund's financial performance, on
August 13, 2008, the Trustees of the Fund approved an increase in monthly
distributions and dividends to $0.01875 per unit/exchangeable share commencing
October 2008, for unitholders and shareholders of record on September 30,
2008.

    2008 Second Quarter Conference call & Webcast

    Management will hold a conference call on Thursday, August 14, 2008 at
10:00 a.m. (ET) to review the Fund's 2008 second quarter financial results. A
live audio webcast of the conference call will be available through
www.boydgroup.com. An archived replay of the webcast will be available for 90
days. A taped replay of the conference call will also be available until
Thursday, August 21, 2008 at midnight by calling 1-877-289-8525 or
416-640-1917, reference number 21278350 followed by the number sign.

    ((1))((2)) EBITDA, distributable cash and adjusted distributable cash are
not recognized measures under Canadian generally accepted accounting
principles (GAAP). Management believes that in addition to revenue, net
earnings and cash flows, the supplemental measures of distributable cash,
adjusted distributable cash and EBITDA are useful as they provide investors
with an indication of earnings from operations and cash available for
distribution, both before and after debt management, productive capacity
maintenance and non-recurring and other adjustments. Investors should be
cautioned, however, that EBITDA, distributable cash and adjusted distributable
cash should not be construed as an alternative to net earnings determined in
accordance with GAAP as an indicator of the Fund's performance. Boyd's method
of calculating distributable cash and adjusted distributable cash may differ
from other public issuers and, accordingly, may not be comparable to similar
measures used by other issuers. For a detailed explanation of how the Fund's
distributable cash and adjusted distributable cash is calculated, please refer
to the Fund's MD&A filing for the three-month period ended June 30, 2008,
which can be accessed via the SEDAR Web site (www.sedar.com).

    About The Boyd Group Inc.

    The Boyd Group Inc. is the largest operator of collision repair centres
in Canada and among the largest in North America. The company operates
locations in the four western Canadian provinces principally under the trade
names Boyd Autobody & Glass and Service Collision Repair, as well as in seven
U.S. states principally under the trade name Gerber Collision & Glass. The
company also operates Gerber National Glass Services, an auto glass repair and
replacement referral business with affiliated service providers throughout the
United States. For more information on The Boyd Group Inc. or Boyd Group
Income Fund, please visit our Web site at www.boydgroup.com.
    To view Boyd Group Income Fund's Q2 financial statements, please click: 
http://files.newswire.ca/698/Boyd_Group.pdf

    About The Boyd Group Income Fund

    The Boyd Group Income Fund 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.

    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: fluctuations in cash distributions and capital expenditures;
dependence on the Fund's operating subsidiary to pay its interest obligations;
loss of services of key senior management personnel; operational and
infrastructure risks including possible equipment failure and performance of
information technology systems; the ability to complete acquisitions of
collision repair facilities and other businesses and to integrate these
acquisitions successfully; the ability to identify start-up locations and
reach anticipated profitability levels; access to capital; management of
credit and refinancing risks; potential discovery of undisclosed liabilities
associated with acquisitions; ability to expand into the United States; loss
of key customers; impact of government owned insurance; variation in the
number of insurance claims; competition from established competitors and new
entrants in the businesses in which the Company operates; the management of
key supplier relationships; employee relations; fluctuations in the cost of
benefit plans; insurance coverage of sufficient scope to satisfy any liability
claims; environmental risk; pending and proposed legislative or regulatory
developments including the impact of changes in laws, regulations and the
enforcement thereof; quality of corporate governance; quality of internal
control systems; fluctuations in operating results and seasonality; energy
costs; weather conditions; technology risks; interest rate fluctuations and
general economic conditions; fluctuations in foreign currencies; and the
possible impacts from public health emergencies, international conflicts and
other developments including those relating to terrorism; 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. The Fund does not undertake to update any
forward-looking statements; such statements speak only as of the date made.

    %SEDAR: 00018929E




For further information:

For further information: Terry Smith, CEO, Tel: (204) 895-1244,
terry.smith@boydgroup.com; Bruce Wigle, Investor Relations, Tel: (416)
815-0700 or toll free 1-800-385-5451 (ext.228), bwigle@equicomgroup.com; Dan
Dott, Chief Financial Officer, Tel: (204) 895-1244, dan.dott@boydgroup.com


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