Boyd Group Income Fund reports 2007 third quarter results


    WINNIPEG, Nov. 13 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the
Fund") today reported its financial results for the three and nine-month
periods ended September 30, 2007. The Fund's complete fiscal 2007 third
quarter financial statements and MD&A will be available on on
November 14, 2007.

    2007 Third Quarter Highlights

      -  Revenue increased 6.4% to $47.7 million compared to $44.8 million in
         Q3 2006
      -  Same store sales growth during the quarter of 8.3% in the U.S. and
         14.0% in Canada
      -  Net earnings increased to $1.0 million from a net loss of
         $2.0 million in Q3 2006
      -  Distributable cash of $2.2 million compared to $0.7 million in
         Q3 2006
      -  Repayment of $0.6 million U.S. of Canadian senior debt facility
      -  Declared on November 13, 2007 a distribution to unitholders and
         dividend to Boyd Group Holdings Inc. ("BGHI") Class A shareholders
         of $0.015 per unit and/or Class A share

    "We continued to build on our positive momentum with a fourth consecutive
quarter of same store sales growth in both the U.S. and Canada and our third
consecutive profitable quarter. Our improved financial performance has been
achieved despite a weaker U.S. dollar exchange rate. We believe our financial
results demonstrate the considerable progress we have made in optimizing the
performance of our collision repair, auto glass and network glass businesses,"
said Terry Smith, Chief Executive Officer of the Boyd Group. "As a result of
the ongoing improvement in our financial performance and strengthened balance
sheet, the Trustees of the Fund have approved the reinstatement of monthly
distributions of $0.015 per unit, commencing in December 2007. This annualized
distribution of $0.18 represents a payout ratio estimated to be in the low to
mid 30% range, being a conservative and sustainable level that allows for
continued balance sheet improvement. With stable to improving financial
performance, we expect that distributions will be gradually increased over

    Financial Results

    For the third quarter ended September 30, 2007, revenue increased 6.4% to
$47.7 million, compared to revenue of $44.8 million in the third quarter of
2006. The increase in revenue resulted from same store sales growth, both in
Canada and the U.S., as well as new sales generated from start-ups in the U.S.
    On a regional basis, sales in Canada in the third quarter of 2007
totalled $17.2 million, an increase of $2.1 million or 14.0%, compared to the
third quarter a year ago. Sales increases in Canada are entirely due to same
store sales growth, with continued increases reported in all four western
    Sales in the U.S. in the third quarter of 2007 increased 2.5% to
$30.5 million from $29.7 million in the third quarter a year ago. Excluding
the impact of foreign currency translation, U.S. same store sales increased by
$2.5 million or 8.3%, compared to the third quarter a year ago.
    Earnings before interest, income taxes, depreciation and amortization
("EBITDA")(1) for the third quarter of 2007 totalled $3.1 million or 6.5% of
sales compared to EBITDA of $3.4 million or 7.7% of sales in the same period
of the prior year. The decrease in EBITDA was primarily the result of lower
foreign exchange gains in 2007. Excluding foreign exchange gains, EBITDA was
up 22% from the third quarter in 2006.
    Net earnings for the three months ended September 30, 2007 totalled
$1.0 million or $0.10 per diluted unit compared to a net loss of $2.0 million
or ($0.20) per diluted unit for the same period in the prior year. The
increase in net earnings reflects the strong same store sales growth for the
third quarter of 2007, in both Canada and the U.S., coupled with reductions in
operating costs as a percentage of sales, as well as lower depreciation,
amortization and income tax expenses.
    For the nine months ended September 30, 2007 revenue increased 9.9% to
$149.8 million compared to revenue of $136.4 million in the same period a year
ago. EBITDA for the nine months ended September 30, 2007 totalled
$9.3 million, or 6.2% of sales, compared to EBITDA of $7.9 million, or 5.8% of
sales, in the corresponding period a year ago. The Fund's net earnings for the
nine months ended September 30, 2007 were $2.6 million or $0.25 per diluted
unit compared to a net loss of $4.4 million or $(0.43) per diluted unit in the
same period a year ago.
    The Fund had total debt outstanding at September 30, 2007 of
$33.0 million, comprised of: $5.1 million in net bank indebtedness; $1.8
million of Canadian senior bank term debt; $12.8 million of U.S. senior bank
debt; $0.2 million of supplier debt; $0.5 million of vendor loans; $1.3
million of obligations under capital lease; and $11.3 million in subordinate
convertible debentures and exchangeable notes. This compares to $36.1 million
in total debt outstanding as at June 30, 2007 and $40.3 million at March 31,
2007. Positive cash flow for the year was used to repay $1.8 million U.S. of
Canadian senior bank debt, $0.6 million U.S. per quarter, and reduce net bank
indebtedness. The translation of U.S. debt with a weaker U.S. dollar, relative
to the Canadian dollar, also helped reduce the total debt outstanding.

    Distributable Cash(2)

    Based on increased cash flow and continued improvement in year-over-year
performance, the Trustees of the Fund approved the reinstatement of
distributions in the fourth quarter of 2007. On November 13, 2007, the Fund
declared a distribution to its unitholders and BGHI declared a dividend to its
Class A shareholders of $0.015 per Unit and/or Class A share, payable on
December 21, 2007 to unitholders and BGHI shareholders of record on
November 30, 2007.

    2007 Third Quarter Conference call & Web cast

    Management of the Boyd Group Income Fund will host a conference call to
discuss the Fund's 2007 third quarter financial results on Wednesday,
November 14, 2007 at 10:00 a.m. ET. The conference call will be webcast live
at and archived for 90 days. A taped replay of the
conference call will also be available until Wednesday, November 21, 2007 at
midnight by calling 1-877-289-8525 or 416-640-1917, reference number 21251357
followed by the number sign.

    (1)(2) EBITDA and 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,
    distributable cash and EBITDA are useful supplemental measures as they
    provide investors with an indication of earnings from operations and cash
    available for distribution, both before and after debt service, capital
    expenditures and income tax. Investors should be cautioned, however, that
    EBITDA and 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 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 is calculated, please refer to the
    Fund's MD&A filing for the three months ended September 30, 2007, which
    can be accessed via the SEDAR Web site (

    To view Boyd Group Income Fund's third quarter financial statements,
    please click here:

    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 six
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

    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.

    This press release contains forward-looking statements, other than
historical facts, which reflect the view of the Fund's management with respect
to future events. Such forward-looking statements reflect the current views of
the Fund's management and are made on the basis of information currently
available. Although management believes that its expectations are reasonable,
it can give no assurance that such expectations will prove to be correct. The
forward-looking statements contained herein are subject to these factors and
other risks, uncertainties and assumptions relating to the operations, results
of operations and financial position of the Fund. The Fund assumes no
obligation to update the forward-looking statements or to update the reasons
why actual results could differ from those contemplated by the forward-looking

    %SEDAR: 00018929E

For further information:

For further information: Terry Smith, CEO, Tel: (204) 895-1244,; Dan Dott, Vice President & CFO, Tel: (204)
895-1244,; Bruce Wigle, Investor Relations, Tel: (416)
815-0700 or toll free 1-800-385-5451 (ext.228),

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