The Boyd Group Services Inc. reported a 2.0% increase in revenue in Q3 2024, despite a challenging environment marked by a decline in repairable claims and hurricane-related disruptions.
The company’s revenue rose to $752.3 million, up from $737.8 million in the same period of 2023, driven by an additional production day. However, same-store sales dropped 3.5%, largely attributed to industry-wide challenges and economic uncertainty impacting claims volumes.
Gross profit increased to $343.6 million, a 2.9% rise from $333.8 million in Q3 2023. However, Adjusted EBITDA dropped by 14.7% to $80.1 million, reflecting higher operating costs, including a rise in expenses as a percentage of sales, which reached 35.0% in Q3 2024.
“Third quarter results continued to be impacted by low claims volumes. Although we are disappointed with the third quarter results, we continue to gain market share by performing better than the industry on key client performance metrics,” said Timothy O’Day, CEO of the Boyd Group.
Boyd reported a 3.5% year-over-year decline in repairable claims, compared to 12.6% industry-wide.
The hurricanes also presented challenges for Boyd, with temporary closures in multiple states, contributing to an estimated $4 million negative sales impact.
Despite these factors, the company remained focused on long-term growth strategies, adding 15 new locations in Q3 through acquisitions and start-ups.
Looking ahead, Boyd aims to mitigate the effects of lower demand by increasing internal efficiencies and focusing on cost management.
“The sales and gross margin initiatives along with a heightened focus on our operating expenses will help mitigate the impact of the current challenging market environment and put Boyd in the best possible position as conditions improve,” said O’Day.
As the year progresses, Boyd is preparing for continued expansion through acquisitions and new locations, despite a slower pace compared to previous years. The company expressed confidence in its long-term growth goal to double its business size from 2019 levels by 2025, although it acknowledged potential delays due to current market conditions.
