Boyd Group Services Inc. (BYD.TO)

EPS of 93c missed estimates of $1.05; revenue of $740M matched estimates. EBITDA of $94M was 1% light. Same store sales were good at 8.7%, but below estimates (9.5%). The company blamed mild winter weather. The long term forecast (doubling the size of the business in 2025 from 2019 levels) remains intact. It added 78 (net) locations last year. Heading into 2024, same store sales growth is still positive but running below the 10-year average. The stock has been quite strong but will likely sell off on the 'miss'. 
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Dominant in a fragmented industry. Grows through acquisition, very successful, still lots of runway for this. Good long-term hold.

Lots against them during Covid with no one driving, labour costs going up, and blocked supply chains. Those trends are unwinding. More driving = more accidents. With automation, repair costs are that much higher. M&A mojo should return.

Interesting business model, gets referrals from insurers. Labour shortages and other issues slowly being addressed. Well managed. He tries to avoid labour-intensive businesses, but he is looking at it.

Tough during Covid. Insurance rates and labour costs have come up. Good numbers last quarter. Now insurance is paying more, labour costs are going down, and consolidation is continuing. Fragmented industry, so lots of runway. Positive on the name.

Has sold shares in company.
Company has too much retail orientation (very hard business).
Auto-body shops require large capital investments.
Strong franchise - but would wait for shares to fall before investing.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. One of the largest operators of non-franchised collision repair centers in North America. 860 locations of which 724 are Gerber glass. Sales at $613 million, up 37.8% for the quarter ended June 30th, 2022. Management noted that demand is exceeding capacity in all US markets and indicating a recovery in Canadian markets. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Relationships with major insurance companies. Industry leader and major consolidator. Expanding EBITDA margins. Five-year growth plan to double its size. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Underlying fundamentals remain good. Labour shortages and supply issues could persist for some time, however. In general they beat estimates in their latest quarter, with sales at $516M, rising 28%. esP beat estimates of 12c at 28c. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Same store sales increased by 10.7%. They beat sales estimates slightly but missed on EPS. EBITDA came in at $51.1M, missing estimates. Demand is still below pre-covid levels and margins are seeing pressure from labour and material shortages. Confident in management’s ability to manage short-term headwinds. Unlock Premium - Try 5i Free