The Boyd Group Income Fund says it intends to add four-to-six new collision repair shops every year for the foreseeable future and to do so without adding new debt or raising new equity.
The Winnipeg-based collision repair operation with 87 locations in Canada and the United States weathered a downturn in the industry earlier this decade that required a suspension of cash distributions to shareholders.
But the company is back on a growth trajectory -- it added three new stores in 2007 and two in 2006 and has already increased cash distribution to unitholders twice this year.
The company reported a slight increase in revenue for the quarter ending March 31 from $52.6 million to $53.1 million, but the impact of the increasing Canadian dollar knocked more than $6 million off the top line.
Same stores sales grew by 10.3 per cent at its U.S. locations and 4.6 per cent in Canada and profits for the quarter increased to $1.9 million compared with $800,000 for the same period last year.
"We remain on the lookout for opportunities to carefully and in a cost effective way build out our business and grow our bottom line," said Boyd CEO Terry Smith.
The company has new stores queued up to open in Wichita, Kan., Lacey, Wash., Rome, Geo., Calgary, and Las Vegas.
Smith said the company is now acquiring locations that are distressed or closed. Boyd will pay only book value, require sellers to finance part of the sale themselves, use * lease financing for any new equipment it needs to install and draw down cash from a growth fund it has at its disposal from its paint supplier.
martin.cash@freepress.mb.ca
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