Winnipeg, Manitoba — Boyd Group Services released its Q1 2024 financial results on Wednesday, revealing the company spent US$4.8 million on network technology upgrades in the first three months of 2024.
Company CEO Tim O’Day added that the company has increased the number of scanning and calibration services it can perform in-house by increasing its workforce in the area by more than 60 percent.
“Boyd has made meaningful progress towards our goal of internalizing scanning and calibration services to drive down costs to customers and convert a sublet operation to an internal operation,” noted the company in its Q1 2024 results report. The company also operates a mobile auto service offering scanning and calibration services, and it plans to continue to increase the remote services it can offer.
Sales for the quarter ending March 31, 2024, were 786.5 million, a ten percent increase compared to Q1 2023. This reflects a US$55.9 million contribution from 121 new locations, noted O’Day. Same-store sales increased 2.2 percent, compared to the same period of 2023.
Net earnings were US$8.4 million, compared to US$20.8 million in Q1 2023.
Gross margin for Q1 2024 was 44.8 percent, compared to 45.7 percent in Q1 2023. O’Day attributed the decrease in gross margin to several factors, including variability due to performance-based pricing, investments made to support higher demand and lower contributions from a greater number of new locations. Labour rate increases added to sales and gross profit dollars, but margins remain below historical levels, O’Day added.
The negative impacts were “modestly offset,” said O’Day, by the benefit of increased internalization of scanning and calibration in the company’s network.
The company added 13 collision repair locations in Q1 2024; 12 sites through acquisition and one start-up location.
O’Day said Boyd remains confident that the company is on track to achieve its long-term growth goals, including “doubling the size of the business on a constant-currency basis from 2021 to 2025, against 2019 sales.”
Click here for more information on the Boyd Group’s Q1 2024 sales.
