Boyd Group Services Inc. Unveils New Five-Year Goal
/NOT FOR DISTRIBUTION TO
- Driving Growth & Enhancing Profitability -
Key Highlights of Boyd's Five-Year Goal:
- Grow revenue to
$5B in 2029 - Double Adjusted EBITDA(1) to
$700M between 2024-2029 (based on Q3/2024 TTM results) - Expand market share and retain a leadership position in all markets served
- Achieve top-tier profitability in the North American collision industry
"As I prepare for my retirement in May and with Brian's appointment as CEO, it is the ideal time for Boyd to unveil its new five-year goal," said
"I am excited to lead Boyd into this next phase of growth," added
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(1) Adjusted EBITDA and Adjusted EBITDA margins are non-GAAP financial measures and are not standardized financial measures under the International Reporting Standards and may not be comparable to similar financial measures disclosed by other issuers For additional details, please see Non-GAAP Financial Measures and Ratios in Boyd's MD&A filing (dated |
Key Strategic Initiatives:
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Expand Market Share and Retain a Leadership Position in All Markets Served: Boyd's
$5B revenue goal for 2029 will be driven by a combination of same-store sales growth and new shop expansion. This expansion encompasses single shop acquisitions, brownfield and greenfield start-ups and small multi-location acquisitions, all focused on attaining a #1 or #2 market position in each market served. Leveraging its strong free cash flow generation and solid balance sheet, the Company is well positioned to fund this growth with an estimated$1.5B in cash available for growth through the plan period. Boyd will also continue to be a strategic buyer of larger multi-location acquisitions and if successful, these acquisitions would be incremental to the Company's revenue growth goals. -
Achieve Top-Tier Profitability in The North American Collision Industry: The Company is accelerating its focus on operational excellence and profitability with "Project 360", a company-wide transformation initiative launched in Q4 2024 in partnership with a leading global consulting firm. Project 360 is designed to expand margins as Boyd scales its business and grows its market share. Key areas of focus include optimizing the store operating model to improve profitability as volumes scale, enhancing parts and indirect procurement to drive cost efficiencies and leveraging technology to streamline operations and improve scalability. Project 360 is projected to generate
$100M in recurring annual cost savings and position Boyd to grow Adjusted EBITDA(1) by a 15% annual CAGR over the next five years. Upfront investment and transition costs related to Project 360 are projected to be between$20-$23M over the coming quarters.
2029 Financial Targets:
- Revenue:
$5 billion - Adjusted EBITDA(1):
$700 million - Adjusted EBITDA Margin(1): 14%
- Net Debt to Adjusted EBITDA (Pre-IFRS): 2.0-2.5x(1) (2) (3)
- Net Debt to Adjusted EBITDA (Post-IFRS): 3.0-3.5x(1)(2)(3)
Conference Call:
Boyd will host a conference call on
To participate in the conference call, please dial 888-699-1199 or 416-945-7677. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3QopxCu to receive an instant automated callback. A live webcast of the conference call will be available at https://app.webinar.net/ZLxgDPoE7eX. An archived replay of the webcast will be available for 90 days. An audio replay of the conference call will also be available until
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(1)Adjusted EBITDA and Adjusted EBITDA margins are non-GAAP financial measures and are not standardized financial measures under the International Reporting Standards and may not be comparable to similar financial measures disclosed by other issuers. For additional details, please see Non-GAAP Financial Measures and Ratios in Boyd's MD&A filing (dated |
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(2) Net debt / Adjusted EBITDA on a pre- and post-IFRS 16 basis |
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(3) Could exceed on a temporary basis for scaled MSO acquisitions at the right economics |
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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: employee relations and staffing; acquisition and new location risk; operational performance; brand management and reputation; market environment change; reliance on technology; supply chain risk; margin pressure and sales mix changes; pandemic risk & economic downturn; changes in client relationships; decline in number of insurance claims; environmental, health and safety risk; climate change and weather conditions; competition; access to capital; dependence on key personnel; tax position risk; corporate governance; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates;
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 BGSI'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.
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