Boyd Group Services Inc · TSX:BYD
Boyd Group Services — Shareholder Meeting (May 2021)
31 slides from Boyd Group Services's shareholder meeting presentation, May 12, 2021
Slide 1: Annual General and Special Meeting May 12, 2021
BOYD GROUP SERVICES INC. Annual General and Special Meeting May 12, 2021 1
Slide 2: Allan Davis, Independent Chair of the Board
Allan Davis 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 • Stock Option Plan • 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: 2020 Summary
2020 Summary • Despite a temporary pause in growth, we still opened 54 new locations in 2020, including 11 intake centers, and we entered the state of Arkansas. • Total sales decreased 8.5% to $2.1 billion, driven by a same-store sales decrease of 15.6% • Adjusted EBITDA decreased 8.2% to $293.6 mil
Slide 7: Financial Performance
Financial Performance (C$ millions) Sales Adjusted EBITDA Adjusted Net Earnings $2,500 $350.0 $100 $96 $2,283 $320 $2,089 $294 $300.0 $2,000 $80 $250.0 $1,500 $60 $54 $200.0 $150.0 $40 $1,000 $100.0 $500 $20 $50.0 $- $- $- 2019 2020 2019 2020 2019 2020 *Adjusted EBITDA and adjusted net earnings are
Slide 8: Balance Sheet
Balance Sheet (C$ millions) Equity Net Debt/ Adjusted EBITDA (x)* $906 1.8 $612 0.9 2019 2020 2019 2020 *Net Debt is calculated as before lease liabilities **Results for 2020 were severely impacted by the COVID-19 Pandemic 8
Slide 9: Total Location Growth
Total Location Growth New Locations 120 • Added 54 locations 108 100 • Entered 1 new state (Arkansas) 81 80 • Market remains fragmented and continues to provide attractive 60 54 acquisition opportunities 40 20 - 2018 2019 2020 *Results for 2020 were severely impacted by the COVID-19 Pandemic 9
Slide 10: Dividends
Dividends Annualized dividends have increased by 9.3% since 2016 Annualized Dividend per Share (C$) $0.60 0.564 0.552 $0.55 0.540 0.528 0.516 $0.50 $0.45 $0.40 Nov 16 - Nov 17 - Nov 18 - Nov 19 - Nov 20 - Oct 17 Oct 18 Oct 19 Present Present 10
Slide 11: Return to Shareholders - 2020
Return to Shareholders - 2020 Boyd Group S&P/TSX Composite +8.69% 20% (+9.01 including 2020 dividends) total return: 10% 9.01%* S&P/TSX Composite +2.17% 0% -10% -20% -30% -40% *Source: Irwin. Total return based on reinvestment of dividends. 11
Slide 12: Five-year Return to Shareholders
Five-year Return to Shareholders Boyd Group S&P/TSX Composite 300% 5-year 250% total return: 243.87%* 200% 150% S&P/TSX 100% Composite 34.00% 50% 0% -50% 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 *Source: Irwin. Total return based on reinvestment of dividends. 12
Slide 13: Delivering long-term value to shareholders
Delivering long-term value to shareholders • Best or second best 10-year performance on the TSX for 6 consecutive years • Best 10-year performance on the TSX in 2015 and 2016 • Second best 10-year performance on the TSX in 2017, 2018, 2019 and 2020 +9966.5% 10-year Total Return +5795.6% +5901.2% +46
Slide 14: Average Daily Trading
Average Daily Trading 80,000.00 $16.0 71,402.66 66,516.72 70,000.00 $14.0 $14.0 60,000.00 $12.0 51,944.94 50,000.00 $10.0 $7.2 40,000.00 $8.0 30,000.00 $5.2 $6.0 20,000.00 $4.0 10,000.00 $2.0 - $- 2018 2019 2020 Average Daily Volume Average Daily Value *Source: TSX Infosuite **Daily Value given in C
Slide 15: COVID-19 Impact and Outlook
COVID-19 Impact and Outlook • COVID 19 began to significantly impact the business just prior to the end of Q1 2020 and continues to impact results. • Boyd continues to take proactive steps to adapt to the new environment, including increased health and safety practices such as contactless drop off &
Slide 16: Canadian Emergency Wage Subsidy ("CEWS")
Canadian Emergency Wage Subsidy ("CEWS") • CEWS was put into place on April 11, 2020 and has now been extended to June 2021 • As is the objective of the program, Boyd has been able to retain more of its employees than would have been possible, absent the subsidy • Amounts expected to be received in
Slide 17: Financial Review
Financial Review THE pp Boyd GROUP
Slide 18: 2020 Sales
2020 Sales (C$ millions) $2,400 $2,200 $2,283 $2,089 (8.5)% $2,000 $(194.2) $1,800 $1,600 $1,400 • + $128.2 million: 101 new locations $1,200 $1,000 • + $14.6 million: U.S. exchange rate $800 conversion of same-store sales $600 $400 • - $328.2 million same-store sales $200 • - $8.8 million due to cl
Slide 19: 2020 Adjusted EBITDA
2020 Adjusted EBITDA (C$ millions) $350.0 $325.0 $319.9 (8.2)% $293.6 $300.0 $275.0 $(26.3) $250.0 $225.0 $200.0 $175.0 • + $16.9 million positively impacted by $150.0 CEWS $125.0 $100.0 • Decrease was primarily the result of the $75.0 business slow down caused by the $50.0 COVID-19 pandemic, includ
Slide 20: 2020 Adjusted Net Earnings
2020 Adjusted Net Earnings (C$ millions) $100 $90 $96 (43.8)% $80 $(42.0) $70 $60 $54 $50 $40 • The decrease is primarily the result of the negative impact of the COVID-19 pandemic, $30 which resulted in reduced sales levels. $20 • In addition, relatively fixed levels of $10 depreciation and amortiz
Slide 21: U.S. Dollar Reporting
U.S. Dollar Reporting • To reduce volatility from exchange rates, effective January 1, 2021, Boyd began reporting results in U.S. Dollars. • Given almost 90% of Boyd’s revenues come from the U.S., this is considered an appropriate currency for reporting purposes. U.S. > 90% Insurance 21
Slide 22: Q1 2021 Financial Summary
Q1 2021 Financial Summary 3-months ended (US$ millions, except per share and percent amounts) March 31, March 31, 2021 2020 Sales $421.6 $467.8 Gross Profit $194.0 $209.5 Adjusted EBITDA* $52.7 $60.5 Adjusted EBITDA Margin* 12.5% 12.9% Adjusted Net Earnings* $8.3 $15.2 Adjusted Net Earnings* per sha
Slide 23: Strategy & Outlook
Strategy & Outlook THE pp Boyd GROUP
Slide 24: 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 24
Slide 25: 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 26: Expense Management: Operating Expenses as % of Sales
Expense Management Well managed operating expenses as a % of sales Pre-IFRS 16 Post-IFRS 16 40.0% 35.0% 37.1% 36.8% 36.5% 35.9% 31.4% 32.0% Operating Expenses as % of Sales 35.0% 30.0% 30.0% 25.0% 25.0% 20.0% 20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2015 2016 2017 2018 2019 2020 *Results fo
Slide 27: Same-Store Sales Growth
SSSG - Optimizing Returns from Existing Operations Same-store sales increases in 31 of 40 most recent quarters 15.00% 10-year average SSSG: 4.3% 5-year average SSSG: 3.4% 10.00% Same-Store Sales Growth* 3-year average SSSG: 3.5% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% -25.00% -30.00% -35.00% Q1-1
Slide 28: Strong Growth in Collision Locations
Strong Growth in Collision Locations 756 108 105 81 64 58 54 35 29 2014 2015 2016 2017 2018 2019 2020 2021 Annual additions Total locations • May 2013: acquisition of Glass America added 61 retail auto glass locations • March 2016: acquisition of 4 retail auto glass locations *Results for 2020 and 2
Slide 29: Summary
Summary ✓ Strong balance sheet Stability ✓ Insurer preference for MSOs ✓ Recession Resilient + ✓ US$40 billion fragmented industry ✓ High ROIC growth strategy Growth ✓ Market leader/consolidator in North America = ✓ Cash dividends/conservative payout ratio Shareholder Value ✓5-year total shareholder
Slide 30: Q&A
Q&A THE pp Boyd GROUP
Slide 31: Annual General and Special Meeting May 12, 2021
BOYD GROUP SERVICES INC. Annual General and Special Meeting May 12, 2021 31