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- Strong and growing demand with results constrained by staffing shortages, wage pressure and supply disruptions -
Results and Highlights for the Third Quarter Ended
- Sales increased by 28.4% to
$490.2 million from$381.7 million in the same period of 2020, including same-store sales increases of 10.7%, recognizing the same number of selling and production days in theU.S. andCanada in the third quarter of 2021 when compared to the same period of 2020. Same-store sales increases inCanada were much lower than same-store sales increases in theU.S. - Gross Profit increased by 19.6% to
$215.7 million or 44.0% of sales from$180.3 million or 47.2% of sales in the same period in 2020, including the recognition of theCanada Emergency Wage Subsidy ("CEWS") of approximately$0.2 million , as compared to$2.9 million in the same period of the prior year - Adjusted EBITDA1 decreased 18.9% to
$51.5 million , or 10.5% of sales, including,$0.5 million of CEWS, compared with Adjusted EBITDA of$63.5 million , or 16.6% of sales in the same period of 2020, which included$7.5 million of CEWS - Adjusted net earnings1 decreased to
$2.4 million , compared with$16.4 million in the same period of 2020 and adjusted net earnings per share1 decreased to$0.11 , compared with$0.76 in the same period of 2020 - Net earnings decreased to
$0.4 million , compared with$15.9 million in the same period of 2020 and net earnings per share decreased to$0.02 , compared with$0.74 in the same period of 2020 - Net debt of
$896.9 million , with no significant maturities untilMarch 2025 - Declared third quarter dividend in the amount of
C$0.141 per share - Added 52 locations, including 48 through acquisition, two intake centers and two start-up locations. Included in the locations added is the acquisition of 35 locations previously operating as Collision Works in
Oklahoma ,Kansas andMissouri .
Subsequent to Quarter End
- Added seven locations
- Announced a dividend increase of 2.1% to
$0.576 per share annualized from$0.564 per share annualized
"Throughout the third quarter, demand for services exceeded our capacity in all
Results of Operations | For the three months ended, | For the nine months ended, | ||||||||||
(thousands of | 2021 | % change | 2020 | 2021 | % change | 2020 | ||||||
Sales – Total | 490,178 | 28.4 | 381,689 | 1,356,464 | 17.2 | 1,157,477 | ||||||
Same-store sales – Total (excluding foreign exchange) | 419,979 | 10.7 | 379,271 | 1,215,545 | 6.7 | 1,139,416 | ||||||
Gross margin % | 44.0 | % | (6.8) | 47.2 | % | 45.3 | % | (1.7) | 46.1 | % | ||
Operating expense % | 33.5 | % | 9.5 | 30.6 | % | 33.4 | % | 3.4 | 32.3 | % | ||
Adjusted EBITDA 1 | 51,500 | (18.9) | 63,514 | 162,244 | 1.6 | 159,640 | ||||||
Acquisition and transaction costs | 2,574 | 878.7 | 263 | 4,444 | 295.4 | 1,124 | ||||||
Depreciation and amortization | 41,038 | 23.0 | 33,367 | 112,169 | 14.9 | 97,588 | ||||||
Fair value adjustments | 50 | (85.8) | 353 | 148 | N/A | (1,910) | ||||||
Finance costs | 7,198 | (5.3) | 7,598 | 19,980 | (21.0) | 25,294 | ||||||
Income tax expense | 206 | (96.6) | 6,078 | 6,864 | (29.1) | 9,683 | ||||||
Adjusted net earnings 1 | 2,389 | (85.4) | 16,403 | 22,076 | (17.6) | 26,783 | ||||||
Adjusted net earnings per share 1 | 0.11 | (85.5) | 0.76 | 1.03 | (19.5) | 1.28 | ||||||
Net earnings | 434 | (97.3) | 15,855 | 18,639 | (33.1) | 27,861 | ||||||
Basic earnings per share | 0.02 | (97.3) | 0.74 | 0.87 | (35.1) | 1.34 | ||||||
Diluted earnings per share | 0.02 | (97.3) | 0.74 | 0.87 | (29.3) | 1.23 |
1. Standardized EBITDA, Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, adjusted for the non-controlling interest call liability and contingent consideration, as well as acquisition and transaction costs), adjusted net earnings and adjusted net earnings per share are not recognized measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to revenue, net earnings and cash flows, the supplemental measures of adjusted net earnings, Standardized EBITDA and Adjusted EBITDA are useful as they provide investors with an indication of earnings from operations and cash available for distribution, both before and after debt management, productive capacity maintenance and non-recurring and other adjustments. Investors should be cautioned, however, that Standardized EBITDA, Adjusted EBITDA, adjusted net earnings and adjusted net earnings per share should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of |
Outlook
"While the COVID-19 pandemic significantly impacted
"The long-term solution to the staffing shortage is through internal training and development programs" continued
"Through these actions outlined and along with the normalization of the supply chain issues, we expect our revenue throughput as well as gross margins and Adjusted EBITDA margins to recover in the coming quarters; however, the actions noted are unlikely to have a material impact on the fourth quarter. We are committed to driving the needed change aggressively. Despite these near-term market challenges, our leadership position and strong balance sheet position us well to successfully execute on our plan to double the size of our business by 2025 and deliver attractive returns to our shareholders."
2021 Third Quarter Conference Call & Webcast
As previously announced, management will hold a conference call on
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Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: pandemic risk & economic downturn; operational performance; acquisition risk; employee relations and staffing; brand management and reputation; market environment change; reliance on technology; changes in client relationships; decline in number of insurance claims; margin pressure and sales mix changes; environmental, health and safety risk; climate change and weather conditions; competition; access to capital; foreign currency risk; dependence on key personnel; tax position risk; corporate governance; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates;
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of BGSI's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.
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