The following is a summary of the Boyd Group Services Inc. (BYDGF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Boyd Group reported Q1 sales up by 10% to $786.5 million due to contributions from new locations.

• Operating expenses increased to $270.9 million or 34.4% of sales.

• The adjusted EBITDA decreased by 3.5% to $81.7 million.

• Net earnings for the first quarter of 2024 were significantly down compared to 2023, at $8.4 million.

• The Group's total debt increased to $1.2 billion, driven by acquisitions and capital expenditures.

Business Progress:

• The company is prepared to face soft market conditions impacting the demand for services into Q2.

• Progress has been made in internalizing scanning and calibration services, which helps reduce costs and increase the scope of services.

• The focus for continued growth will be on strategic acquisitions and organic growth within the highly fragmented North American collision repair industry.

• The company's long-term growth plans include doubling the business size, driven by expected growth in same-store sales and new locations.

• Boyd Group continues to invest in its Technician Development Program and its calibration business. The Group targets covering majority of its internal volume through calibration services in the next 2 to 3 years.

• The company is making efforts to address lower contributions from new locations due to softened demand, with the intention to prudently manage their business if the soft demand persists.

• Boyd Group has planned further expansion of its hub-and-spoke facilities which encompass calibration, glass and collision services under one roof for better capital returns.

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