Boyd Group Services (BYD) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $779.2 million, up 3.4% year-over-year, driven by new locations, while same-store sales declined 3.2% amid industry-wide claim softness, indicating market share gains.

• Net earnings for Q2 2024 were $10.8 million, down from $26.3 million in Q2 2023; adjusted net earnings per share fell to $0.56 from $1.26.

• Gross margin improved sequentially to 45.6%, aided by internalization of scanning/calibration and alternative parts usage.

• Adjusted EBITDA for Q2 2024 was $89.6 million (11.5% margin), down 6.1% year-over-year.

• 13 new collision repair locations were added in Q2, with 4 more after quarter-end; Brian Kaner appointed President and COO.

Financial highlights

• Q2 2024 sales: $779.2 million (+3.4% YoY); six-month sales: $1.6 billion (+6.6% YoY).

• Adjusted EBITDA for Q2 2024: $89.6 million (11.5% margin), down from $95.4 million (12.7%) YoY; six months: $171.3 million (down from $180.1 million YoY).

• Net earnings for Q2 2024: $10.8 million (down from $26.3 million YoY); six months: $19.2 million (down from $47.1 million YoY).

• Gross margin Q2 2024: 45.6% (up from 45.5% YoY); six months: 45.2% (down from 45.6% YoY).

• Debt, net of cash before lease liabilities, increased to $481.0 million from $438.5 million sequentially.

Outlook and guidance

• Claims softness and lower demand continue into Q3, with similar same-store sales challenges as Q2.

• Management expects long-term fundamentals to remain strong, with confidence in returning to growth and doubling business size from 2021 to 2025 against 2019 sales.

• Pipeline for new locations remains robust, with a focus on greenfield and brownfield development and start-up sites for market density.