Boyd Group Services (BYD) Q2 2024 earnings summary

Executive summary

• Sales for Q2 2024 reached $779.2 million, up 3.4% year-over-year, driven by new locations despite a 3.2% decline in same-store sales amid industry-wide claim softness.

• 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.

• Adjusted EBITDA for Q2 2024 was $89.6 million (11.5% margin), down from $95.4 million (12.7%) in Q2 2023, reflecting lower repairable claims volumes.

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

• 17 new locations were added year-to-date, with a robust pipeline and a focus on greenfield and brownfield development; 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 (-6.1% 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).

• Operating expenses Q2 2024: $265.9 million (34.1% of sales), up from $247.3 million (32.8% of sales) YoY.

Outlook and guidance

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

• Management remains confident in long-term growth, aiming to double business size from 2021 to 2025 against 2019 sales.

• Growth strategy includes a robust pipeline of new locations, with increased focus on start-up sites for market density and flexibility.