Boyd Group Services Inc · TSX:BYD
Boyd Group Services — Shareholder Meeting (May 2022)
26 slides from Boyd Group Services's shareholder meeting presentation, May 11, 2022
Slide 1: Boyd Group Services Inc. Annual General Meeting
BOYD GROUP SERVICES INC. Annual General Meeting May 11, 2022 1
Slide 2: David Brown, Independent Chair of the Board
David Brown Independent Chair of the Board 2
Slide 3: Meeting Agenda
Meeting Agenda • Introduction • Audited Financial Statements • Scrutineer’s Report • Number of Directors • Election of Directors • Appointment of Auditors • Advisory Vote/Say on Pay • Management Presentation • Q&A 3
Slide 4: Timothy O'Day, President & Chief Executive Officer
Timothy O’Day President & Chief Executive Officer 4
Slide 5: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, other than historical facts, which reflect the view of the Company's management with respect to future events. Such forward-looking statements reflect the current views of the Company's management and are made on the b
Slide 6: 2021 Summary
2021 Summary • Converted to U.S. dollar reporting starting January 2021 • Added a record 127 new locations, including 101 acquisition locations, 10 start-up locations and 16 intake centers • Financial results were significantly impacted by a tight labor market, wage pressure and supply chain disrupt
Slide 7: Financial Performance
Financial Performance (US$ millions) Sales Adjusted EBITDA* Adjusted Net Earnings* $2,000 $1,873 $250.0 $45.0 $41.4 $1,800 $220.0 $219.5 $40.0 $1,561 $1,600 $200.0 $35.0 $1,400 $30.0 $28.0 $1,200 $150.0 $25.0 $1,000 $20.0 $800 $100.0 $600 $15.0 $400 $50.0 $10.0 $200 $5.0 $0 $0.0 $0.0 2020 2021 2020
Slide 8: Total Location Growth
Total Location Growth New Locations 140 127 120 108 100 • Added 127 locations 80 • Market remains fragmented and 60 54 continues to provide attractive 40 acquisition opportunities 20 - 2019 2020 2021 8
Slide 9: Dividends
Dividends Annualized dividends have increased by 9.1% since 2017 Annualized Dividend per Share (C$) $0.60 0.576 0.564 0.552 $0.55 0.54 0.528 $0.50 $0.45 $0.40 Nov 17 - Oct 18 Nov 18 - Oct 19 Nov 19 - Oct 20 Nov 20 - Oct 21 Nov 21 - Present 9
Slide 10: Five-year Return to Shareholders
Five-year Return to Shareholders Boyd Group S&P/TSX Composite 250% 5-year total return: 200% 138.07%* 150% 100% S&P/TSX Composite 39.29% 50% 0% -50% 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 *Source: Irwin. Total return based on reinvestment of dividends. Note: In 2021, financial r
Slide 11: Outlook
Outlook • Boyd has taken specific actions to address the sales and margin challenges, including: • Investing in and doubling our Technician Development Program • Increasing recruitment support staff to improve lead generation and follow-up • Proactively evaluating compensation levels and making appr
Slide 12: Financial Review
Financial Review THE p> Boyd GROUP
Slide 13: 2021 Sales
2021 Sales (US$ millions) $2,000 $1,873 19.9% $1,800 $1,600 $1,561 $311.4 $1,400 $1,200 • + $201.0 million: 154 new locations $1,000 $800 • + $107.5 million same-store sales* $600 • + $9.1 million: exchange rate $400 conversion of same-store sales $200 • - $6.2 million due to closure of under- $0 20
Slide 14: 2021 Adjusted EBITDA
2021 Adjusted EBITDA* (US$ millions) $250.0 $220.0 $219.5 $200.0 • + $9.8 million positive impact of CEWS, $150.0 compared to $12.7 million positive impact in 2020 • Adjusted EBITDA was significantly $100.0 impacted by the tight labor market, wage inflation and supply chain disruption in $50.0 the s
Slide 15: 2021 Adjusted Net Earnings
2021 Adjusted Net Earnings* (US$ millions) $45.0 $41.4 • Adjusted net earnings was impacted by a $40.0 lower gross margin percentage and higher levels of operating expenses, as well as $35.0 location growth. New locations are subject to $30.0 $28.0 the same labor and supply challenges Boyd $25.0 is
Slide 16: Q1 2022 Financial Summary
Q1 2022 Financial Summary 3-months ended (US$ millions, except per share and percent amounts) March 31, March 31, 2022 2021 Sales $556.8 $421.6 Gross Profit $245.4 $194.0 Adjusted EBITDA* $53.8 $52.7 Adjusted EBITDA Margin* 9.7% 12.5% Adjusted Net Earnings* $2.1 $8.3 Adjusted Net Earnings per share*
Slide 17: Strategy & Outlook
Strategy & Outlook THE p> Boyd GROUP
Slide 18: Business Strategy
Business Strategy Expense management Operational excellence Enhance SHARE Shareholder THE BOYD HOLDERS GROUP Value Same-store sales growth New location and and optimize returns from acquisition growth existing operations 18
Slide 19: Operational Excellence
Operational Excellence • Best-in-Class Service Provider Average cost of repair Cycle time Customer service Quality Integrity • “WOW” Operating Way Embedded as part of our operating culture • Company-wide diagnostic repair scanning technology • I-Car Gold Class facilities • Industry leade
Slide 20: Expense Management
Expense Management Operating expenses as a % of sales 35.0% 33.1% 31.4% 32.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2019 2020 2021 20
Slide 21: Same-Store Sales Growth
SSSG - Optimizing Returns from Existing Operations Same-store sales increases in 32 of 40 most recent quarters 35% 10-year average SSSG prior to COVID-19 Pandemic: 4.5%* 30% 5-year average SSSG prior to COVID-19 Pandemic: 4.0%* Same-Store Sales Growth** 25% 20% 3-year average SSSG prior to COVID-19
Slide 22: Strong Growth in Collision Locations
Strong Growth in Collision Locations 140 900 841 800 120 700 100 600 80 500 60 127 400 105 108 300 40 81 64 58 200 54 20 42 29 100 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual additions Total Locations 22
Slide 23: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (“ESG”) • Inaugural Environment, Social and Governance report published in March 2022 • Represents a foundational step in Boyd’s ESG journey 23
Slide 24: Summary: Focus on enhancing shareholders' value
Summary Strong balance sheet Stability Insurer preference for MSOs Recession Resilient + US$36.9 billion fragmented industry High ROIC growth strategy Growth Market leader/consolidator in North America = Cash dividends/conservative payout ratio Shareholder Value 5-year total sharehol
Slide 25: Q&A
Q&A THE p> Boyd GROUP
Slide 26: Boyd Group Services Inc. Annual General Meeting
BOYD GROUP SERVICES INC. Annual General Meeting May 11, 2022 26