Winnipeg, Manitoba — The Boyd Group reported its Q1 sales figures last month, with increases in sales based on “higher repair costs due to increasing vehicle complexity…increased scanning and calibration services and general market inflation,” said the company.
CEO Tim O’Day told investors during the earnings call that most of the company’s scanning and calibrations are completed by third-party sublets, though Boyd Group benefits from the revenue the services bring in.
“Much of the calibration work today is done via mobile, although we are equipping stores with…equipment, with targeting systems and mobile technicians can travel to our stores. We will move work around on a hub-and-spoke basis to provide some of that work. But I think we’re going to continue to see a growth in revenue around scanning and calibration and we’re going to internalize more of it,” O’Day told shareholders.
Total sales for Q1 2023 were US$714.9 million, a 28.4 percent increase compared to US$556.8 million in Q1 2022. Same-store sales increased by 25.2 percent, wrote the company in its report to shareholders.
“Sales benefitted from high levels of demand for services, as well as some increase in production capacity related to technician hiring…although ongoing staffing constraints continued to impact sales and service levels that could be achieved,” reads the note to investors.
Adjusted EBITDA for the first quarter of 2023 was US$84.7 million—11.8 percent of sales—compared to US$53.8 million in Q1 2022.
“The US$30.9 million increase was primarily the result of improved sales levels and gross margin percentage, which also provided improved leveraging of certain operation costs,” wrote Boyd Group.
The network also noted that adjusted EBITDA for the period was constrained by technician capacity, due to the tight labour market.
“Market conditions, including wage pressure and a tight labour market, are impacting the results that can be achieved in the near-term.”
