Boyd Group Income Fund Reports Second Quarter Results

Boyd Group Income Fund financial results for the three-and six-month periods ended June 30, 2010 showed stability despite results being significantly affected by changes in the U.S. dollar exchange against the Canadian dollar.

Sales for the three months ended June 30, 2010 decreased by 5.1% to $52.3 million, compared to sales of $55.1 million for the three months ended June 30, 2009, after adjusting for the effect of discontinued operations. The decrease consisted of $4.6 million due to a lower U.S. dollar translation rate on sales generated from Boyd Group’s U.S. operations and $0.7 million due to a 1.3% same-store sales decline, offset by sales generated from new collision repair start-ups of $2.5 million.

On a segmented basis, sales in Canada totalled $16.5 million for the three months ended June 30, 2010, a decrease of $2.1 million or 11.3%. Sales decreases in Canada were due to same-store sales declines as a result of softer market conditions, made worse by the carry-over effects of an extremely mild and dry winter.

Sales in the U.S. totalled $35.8 million in the second quarter of 2010, a decrease of $0.7 million, or 1.9%, over the same period in 2009. Translation of U.S. revenues at a weaker U.S. dollar exchange rate relative to the Canadian dollar resulted in a decrease of $4.6 million. Excluding the impact of currency translation, same-store sales in the U.S. increased by $1.4 million or 3.8% when compared to Q2 2009. Sales in the U.S. also included sales of $2.5 million from new locations.

Sales for the six months ended June 30, 2010 decreased by 9.6% to $107.0 million, compared to sales of $118.4 million for the six months ended June 30, 2009, after adjusting for the effect of discontinued operations. This decrease resulted from a lower U.S. dollar translation rate on sales generated from Boyd Group’s U.S. operations of $11.3 million and $4.6 million due to a 3.9% same-store sales decline, offset by sales generated from new collision repair start-ups of $4.5 million.