Boyd Group Income Fund reports record 2009 second quarter results



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    - Fund Trustees approve seventh consecutive quarterly increase to
      distributions -
    

    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 periods ended June 30, 2009. The Fund's complete fiscal 2009
second quarter financial statements and MD&A have been filed on SEDAR
(www.sedar.com). Boyd Group also announced that the Trustees of the Fund have
approved a 5.6% increase in monthly distributions from $0.0225 per unit to
$0.02375 per unit, commencing October 2009 for unitholders of record on
September 30, 2009.

    
    Q2 2009 Highlights
    ------------------

    -   Sales increased 9.3% to a second quarter record $55.4 million from
        $50.6 million in Q2 2008
    -   EBITDA(1) increased 14.3% to a second quarter record $3.7 million
        compared to $3.2 million in Q2 2008
    -   Net earnings increased to an all-quarter record of $2.1 million
        compared to $0.1 million in Q2 2008
    -   Adjusted distributable cash(2) increased to an all-quarter record
        $3.5 million from $3.4 million in Q2 2008
    -   Payout ratio of 21.5% compared to 17.2% in Q2 2008
    

    "We are pleased to report yet another quarter of record revenue, EBITDA,
net earnings and adjusted distributable cash," said Terry Smith, CEO of the
Boyd Group. "Although we experienced strong second quarter results, our same
store sales growth in Canada and the U.S. was negatively impacted by the
prolonged and severe downturn in the North American economy. While efforts to
grow our market share have been successful and have translated into same store
sales growth in earlier quarters of this recession, the extent and duration of
the downturn was not fully countered by market share gains in the current
quarter. Although we are well positioned to minimize the negative affects from
the current economic environment, we expect that achieving same store sales
growth will continue to be a challenge until economic conditions improve."
    "Despite operating in a challenging economic environment, our strong
overall performance is reflective of our financial discipline, success in
adding new auto collision repair start-ups and acquisitions to our existing
network, as well as our strong relationships with insurance providers." As a
result of this strong performance, we have increased monthly distributions by
a total of 58.3% over seven consecutive quarters, including three increases
thus far in 2009 from $0.02 per unit to $0.02375 per unit. With stable to
improving financial performance, we expect that distributions will continue to
be gradually increased over time. We will, however, continue to closely
monitor our payout ratio to insure that it continues to be at a stable and
sustainable level, especially in light of current economic conditions."
    Brock Bulbuck, President and Chief Operating Officer of the Boyd Group
added, "In addition to working on optimizing the performance of our existing
operations, we will also continue our expansion program of adding eight to ten
new collision repair start-ups each year for the foreseeable future. With a
strong balance sheet, we have sufficient liquidity and capital resources to
finance this growth plan. "

    
    Financial Results
    -----------------

    Three Months Ended June 30, 2009
    

    Sales for the three months ended June 30, 2009 increased 9.3% to $55.4
million, compared to sales of $50.6 million for the three months ended June
30, 2008, after adjusting for the effect of discontinued operations. This
increase resulted from sales generated from new collision repair start-ups in
Canada and the U.S., as well as from a higher U.S. dollar translation rate on
sales generated from Boyd Group's U.S. operations, offset in part by lower
same store sales.
    On a segmented basis, sales in Canada increased 1.3% to $18.6 million for
the three months ended June 30, 2009, from $18.3 million for the three months
ended June 30, 2008. The increase in sales in Canada was primarily due to
sales generated from new start-ups in Calgary, Alberta and Winnipeg, Manitoba.
Same store sales declined 1.4% when compared to the same period in the prior
year.
    Sales in the U.S. increased 13.9% to $36.8 million in the second quarter
of 2009, from $32.3 million in the same quarter a year ago. Sales in the U.S.
included sales from new collision repair start-ups in Lacey, Washington; Las
Vegas, Nevada and Mesa, Arizona as well as a glass repair and replacement
services business located in Texas. Excluding the impact of foreign currency
translation, same store sales in the U.S. decreased 8.1% when compared to the
same period in the prior year.
    Earnings before interest, income taxes, depreciation and amortization
("EBITDA")(1) for the second quarter of 2009 increased 14.3% to $3.7 million
or 6.7% of sales compared to EBITDA adjusted for discontinued operations
("Adjusted EBITDA")(1) of $3.2 million or 6.4% of sales in the same quarter a
year ago. The increase in EBITDA was primarily the result of U.S. EBITDA being
translated at higher exchange rates as well as the contribution from new
start-ups. Reductions in EBITDA due to same store sales declines were offset
by reduced same store operating expenses.
    For the three months ended June 30, 2009, net earnings after discontinued
operations were $2.1 million, or $0.177 per unit (basic) and $0.175 per unit
(diluted), compared to $0.1 million, or $0.006 per unit (basic and diluted)
for the three months ended June 30, 2008. The increase in earnings resulted
from the translation of U.S. earnings at higher exchange rates, earnings
contributions from new start-ups, and reduced same store operating expenses.
In 2008, earnings were impacted by losses resulting from the discontinuation
of a number of facilities.
    For the second quarter of 2009, the Fund generated adjusted distributable
cash(2), 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, of $3.5 million and paid
distributions of $0.7 million, representing a payout ratio of 21.5% for the
quarter.

    Six Months Ended June 30, 2009

    Sales for the six months ended June 30, 2009 increased 16.6% to $119.1
million, compared to sales of $102.1 million for the six months ended June 30,
2008, after adjusting for the effect of discontinued operations. This increase
resulted primarily from the translation of U.S. revenues at a stronger U.S.
dollar exchange rate relative to the Canadian dollar and from sales generated
from six new collision repair start-ups and a glass repair and replacement
services business, the total of which contributed $7.1 million of new revenue.
    On a segmented basis, sales in Canada increased 4.2% to $38.4 million in
the first half of 2009, compared to sales of $36.9 million a year ago. The
increase in sales was attributable to revenue generated from two new collision
repair start-ups in Calgary, Alberta and Winnipeg, Manitoba. Same store sales
increased by 0.5%, when compared to the same period in the prior year.
    Sales in the U.S. increased 23.7% to $80.7 million in the first half of
2009, from $65.2 million a year ago. The increase in sales was primarily
attributable to the translation of U.S. revenues at a stronger U.S. dollar
exchange rate as well as from revenue generated by four new collision repair
start-ups in Wichita, Kansas; Lacey, Washington; Las Vegas, Nevada, and Mesa,
Nevada as well as a glass repair and replacement services business located in
Texas. Excluding the impact of foreign currency translation, same store sales
in the U.S. decreased 4.2% when compared to the same period in the prior year.
Translation of U.S. revenues at a stronger U.S. dollar exchange rate, relative
to the Canadian dollar, resulted in an increase in same store sales of $12.4
million.
    Earnings before interest, income taxes, depreciation and amortization
("EBITDA")(1) for the six-month period ended June 30, 2009 increased 10.2% to
$7.2 million, or 6.1% of sales, compared to EBITDA adjusted for discontinued
operations ("Adjusted EBITDA")(1) of $6.6 million, or 6.4% of sales, in the
same period a year ago. The increase in EBITDA was primarily the result of
U.S. EBITDA being translated at higher exchange rates as well as the
contribution from new start-ups. Reductions in EBITDA due to same store sales
declines were offset by reduced same store operating expenses. The decrease in
EBITDA as a percentage of sales was primarily due to the lower foreign
exchange gains in 2009.
    For the six months ended June 30, 2009, net earnings from continuing
operations were $4.1 million, or $0.348 per unit (basic) and $0.345 per unit
(diluted), compared to net earnings of $3.7 million, or $0.312 per unit
(basic) and $0.307 per unit (diluted) in the same period a year ago.
    For the six months ended June 30, 2009, net earnings after discontinued
operations were $4.1million or $0.348 per unit (basic) and $0.345 per unit
(diluted), compared to net earnings of $1.8 million, or $0.151 per unit
(basic) and $0.150 per unit (diluted) in the same period a year ago. The
increase in earnings was due to the translation of U.S. earnings at higher
exchange rates, earnings contributions from new start-ups, reduced same store
operating expenses, as well as the impact of the prior year losses related to
discontinued operations.
    In the first half of 2009, the Fund generated adjusted distributable
cash(2), which includes adjustments for the collection of additional prepaid
rebates, cash flow used in discontinued operations, proceeds on the sale of
equipment, adjustments to reserves for working capital changes, and capital
lease repayments, of $5.6 million and paid distributions of $1.5 million,
representing a payout ratio of 26.3% for the period.
    As at June 30, 2009, the Fund had total debt outstanding, net of cash of
$19.8 million, compared to $21.6 million at December 31, 2008. The Fund's net
working capital ratio was 0.97:1 as at June 30, 2009 (December 31, 2008 -
0.94:1).

    
    Q2 2009 Results Conference Call & Webcast
    -----------------------------------------
    

    Management will hold a conference call on Thursday, August 13, 2009 at
10:00 a.m. (ET) to review the Fund's 2009 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 20, 2009 at midnight by calling 1-877-289-8525 or
416-640-1917, reference number 21310900 followed by the number sign.

    
    ((1))((2))EBITDA, Adjusted 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, EBITDA and
    Adjusted 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, Adjusted 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, 2009, 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 under the trade name Boyd
Autobody & Glass, as well as in seven U.S. states 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 website at www.boydgroup.com.

    To view Boyd Group Income Fund's Q2 2009 financials statements and notes,
please click here:
    http://files.newswire.ca/736/BoydIZA.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: the economic downturn; loss of key customers; fluctuations in cash
distributions; dependence on the Fund's operating subsidiary to pay its
interest obligations; loss of services of key senior management personnel;
damage to the Company's brand; variation in the number of insurance claims;
margin pressure; management of credit and refinancing risks; responding to
changes in the market environment; technology risks; the management of key
supplier relationships; capital expenditures; competition from established
competitors and new entrants in the businesses in which the Company operates;
employee relations; 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; potential discovery of undisclosed liabilities
associated with acquisitions; energy costs; weather conditions; operational
and infrastructure risks including possible equipment failure and performance
of information technology systems; fluctuations in operating results and
seasonality; ability to expand into the United States; insurance coverage of
sufficient scope to satisfy any liability claims; environmental risk; interest
rate fluctuations and general economic conditions; quality of corporate
governance; pending and proposed legislative or regulatory developments
including the impact of changes in laws, regulations and the enforcement
thereof; quality of internal control systems; fluctuations in foreign
currencies; fluctuations in the cost of benefit plans; impact of government
owned insurance; 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.





For further information:

For further information: Brock Bulbuck, President & COO, Tel: (204)
895-1244, Brock.bulbuck@boydgroup.com; Adriana Braczek or Bruce Wigle,
Investor Relations, Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext.
240/228), abraczek@equicomgroup.com, bwigle@equicomgroup.com; Dan Dott, Chief
Financial Officer, Tel: (204) 895-1244, dan.dott@boydgroup.com


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