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- Delivers positive growth in earnings - Announces five year growth strategy -
Results and Highlights for the Third Quarter Ended
- Financial results were significantly impacted by the COVID-19 pandemic
- Sales decreased by 10.3% to
$508.3 million from$567.0 million in the same period of 2019, including same-store sales decreases of 15.0%, withCanada having a greater negative impact due to the slower economic reopening - Adjusted EBITDA1 increased 9.2% to
$84.5 million , including,$9.9 million ofCanada Emergency Wage Subsidy ("CEWS"), compared with Adjusted EBITDA of$77.4 million in the same period of 2019 - Adjusted net earnings1 increased 5.7% to
$21.8 million , compared with$20.7 million in adjusted net earnings in the same period of 2019 and adjusted net earnings per share/unit1 decreased 1.9% to$1.02 , compared with$1.04 in the same period of 2019 - Net earnings increased 42.9% to
$21.1 million , compared with$14.8 million in the same period of 2019 and net earnings per share/unit increased 32.4% to$0.98 , compared with$0.74 in the same period of 2019 - Cash balance at quarter end of
$141.5 million - Net debt of
$672.0 million and net debt excluding lease liabilities of$140.6 million , with no significant maturities untilMarch 2025 - Settled the call option transaction to acquire the 21.16% non-controlling interest in
Gerber Glass LLC held by a member of theU.S. management team - Declared third quarter dividend in the amount of
$0.138 per share - Added six locations, including one intake center
Subsequent to Quarter End
- Added five locations, including one intake center
- Announced a dividend increase of 2.2% to
$0.564 per share annualized from$0.552 per share - Announced five year growth plan
- Announced
U.S. dollar reporting startingJanuary 2021
"The steps our team has taken since the onset of the pandemic have positioned us well, and our third quarter results are a direct result of these efforts," said
Results of Operations | For the three months ended, | For the nine months ended, | |||||||
(thousands of Canadian dollars, except per | 2020 | % change | 2019 | 2020 | % change | 2019 | |||
Sales – Total | 508,289 | (10.3) | 566,957 | 1,563,112 | (7.9) | 1,697,359 | |||
Same-store sales – Total (excluding foreign | 470,551 | (15.0) | 553,687 | 1,329,146 | (16.5) | 1,590,907 | |||
Gross margin % | 47.2% | 4.2 | 45.3% | 46.1% | 1.3 | 45.5% | |||
Operating expense % | 30.6% | (3.5) | 31.7% | 32.4% | 2.5 | 31.6% | |||
Adjusted EBITDA | 84,519 | 9.2 | 77,398 | 215,118 | (8.8) | 235,819 | |||
Acquisition and transaction costs | 348 | (69.9) | 1,156 | 1,512 | (60.8) | 3,859 | |||
Depreciation and amortization | 44,423 | 12.3 | 39,574 | 132,121 | 17.2 | 112,685 | |||
Fair value adjustments | 477 | (90.5) | 5,029 | (2,678) | (113.7) | 19,531 | |||
Finance costs | 10,134 | 5.0 | 9,647 | 34,337 | 22.4 | 28,056 | |||
Income tax expense | 8,041 | 11.3 | 7,226 | 13,134 | (39.7) | 21,794 | |||
Adjusted net earnings | 21,831 | 5.7 | 20,650 | 35,133 | (51.4) | 72,281 | |||
Adjusted net earnings per share/unit | 1.02 | (1.9) | 1.04 | 1.69 | (53.6) | 3.64 | |||
Net earnings | 21,096 | 42.9 | 14,766 | 36,692 | (26.5) | 49,894 | |||
Basic earnings per share/unit | 0.98 | 32.4 | 0.74 | 1.76 | (29.9) | 2.51 | |||
Diluted earnings per share/unit | 0.98 | 32.4 | 0.74 | 1.61 | (32.6) | 2.39 |
1. Standardized EBITDA, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, adjusted for the fair value adjustments related to the exchangeable share liability, unit option liability, non-controlling interest call liability / put option and contingent consideration, as well as acquisition and transaction costs), adjusted net earnings and adjusted net earnings per share/unit are not recognized measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to revenue, net earnings and cash flows, the supplemental measures of adjusted net earnings, Standardized EBITDA and Adjusted EBITDA are useful as they provide investors with an indication of earnings from operations and cash available for distribution, both before and after debt management, productive capacity maintenance and non-recurring and other adjustments. Investors should be cautioned, however, that Standardized EBITDA, Adjusted EBITDA, adjusted net earnings and adjusted net earnings per share/unit should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of Boyd's performance. Boyd's method of calculating these measures 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 Boyd's non-GAAP measures are calculated, please refer to Boyd's MD&A filing for the period ended |
Outlook
The COVID-19 pandemic continues to impact Boyd's business. Thus far in the fourth quarter of 2020, same-store sales activity has continued below normal levels, although slightly better than reported in the third quarter. CEWS has been extended to
"We are pleased to announce our new five year growth strategy. Despite the COVID-19 pandemic, our results demonstrate that Boyd is well positioned to continue to navigate through this challenging environment," said O'Day. "Our new growth strategy is to double the size of the business on a constant currency basis from 2021 to 2025, based on 2019 revenues, implying an average annual growth rate of 15 percent. In order to achieve this, we will pursue accretive growth through a combination of organic growth (same-store sales growth) as well as adding new locations to our network in
2020 Third Quarter Conference Call & Webcast
As previously announced, management will hold a conference call on
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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: pandemic risk & economic downturn; operational performance; acquisition risk; employee relations and staffing; brand management and reputation; market environment change; reliance on technology; foreign currency risk; loss of key customers; decline in number of insurance claims; margin pressure and sales mix changes; weather conditions and climate change; competition; access to capital; dependence on key personnel; tax position risk; corporate governance; increased government regulation and tax risk; environmental, health and safety risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; dividends not guaranteed; 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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