August 17, 2011
Boyd Group Income Fund Comments on Executive Chairman's Sale of Units
- Mr. Terry Smith sells units for personal financial planning and eventual retirement -
Not for distribution to U.S. newswire services or for dissemination in the United States
Winnipeg, Manitoba — August 17, 2011 — Boyd Group Income Fund (TSX: BYD.UN) (“the Fund,” “Boyd” or “the Boyd Group”) today announced that Mr. Terry Smith, Executive Chairman of the Boyd Group, has sold 300,000 units of his ownership position in the Fund. As Mr. Smith approaches eventual retirement, he has chosen to diversify his highly concentrated stake in the Fund, reflecting a more balanced portfolio of personal assets commensurate with his personal circumstance and consideration. After the sale, Mr. Smith now holds approximately 463,000 units and exchangeable Class A shares of the Boyd Group, which reflects his continuing confidence in the Boyd Group. After the transaction, the management team continues to own in excess of 15% of Boyd.
“I am tremendously happy with what Boyd has achieved since I founded the company in 1990,” said Terry Smith, Executive Chairman of the Boyd Group. “Starting with a single repair center in Winnipeg, Boyd has now become the largest collision repair operator in North America with 164 locations covering 13 U.S. states and four Western Canadian provinces. Although many milestones for the Fund have been reached, significant growth and opportunities lie ahead. As I prepare myself for eventual retirement, I have taken a step to prudently diversify my finances by reducing concentration in any one asset. I have no current plans to reduce my equity position in Boyd any further. Although my financial exposure to the Boyd Group is reduced, I am extremely confident with our existing management team and how the company is positioned for continued growth and success in the future.”
“As founder of the Boyd Group, Terry has been instrumental in establishing Boyd as a corporate leader in the automotive collision repair industry and in the success that Boyd has enjoyed to date,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “We are also pleased that in consideration for his future retirement, Terry has decided to maintain a meaningful position in units of the Boyd Group Income Fund as part of his diversified portfolio going forward. This serves as a continued endorsement and sign of confidence in our management team, our strategy, and our opportunity for continuing growth and success.”
Terry Smith, Executive Chairman of the Fund, founded Boyd in 1990 and, through his entrepreneurial skills, marketing philosophies, and management expertise, is widely credited as the architect of Boyd’s growth and development. Brock Bulbuck joined Boyd in 1993 and, along with Mr. Smith, has played a leading role in the growth and development of the Company. As Executive Chairman, Mr. Smith’s principal role is to support and assist Mr. Bulbuck as well as to ensure that the Board of Trustees carries out its responsibilities.
About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 13 U.S. states under the trade names Gerber Collision & Glass, True2Form, and Cars Collision. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at www.boydgroup.com.
About The Boyd Group Income Fund
The Boyd Group Income Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Boyd Group Income Fund units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.
For further information, please contact:
President & CEO
Tel: (204) 895-1244
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 242)
Chief Financial Officer
Tel: (204) 895-1244
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: the economic downturn; loss of key customers; fluctuations in cash distributions; dependence on the Fund’s operating subsidiary to pay its interest obligations; loss of services of key senior management personnel; damage to the Company’s brand; variation in the number of insurance claims; margin pressure; management of credit and refinancing risks; responding to changes in the market environment; technology risks; the management of key supplier relationships; capital expenditures; competition from established competitors and new entrants in the businesses in which the Company operates; employee relations; the ability to complete acquisitions of collision repair facilities and other businesses and to integrate these acquisitions successfully; the ability to identify start-up locations and reach anticipated profitability levels; potential discovery of undisclosed liabilities associated with acquisitions; energy costs; weather conditions; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in operating results and seasonality; ability to expand into the United States; insurance coverage of sufficient scope to satisfy any liability claims; environmental risk; interest rate fluctuations and general economic conditions; quality of corporate governance; pending and proposed legislative or regulatory developments including the impact of changes in laws, regulations and the enforcement thereof; quality of internal control systems; fluctuations in foreign currencies; fluctuations in the cost of benefit plans; impact of government owned insurance; and the possible impacts from public health emergencies, international conflicts and other developments including those relating to terrorism; and the Fund’s success in anticipating and managing the foregoing risks.
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 the Fund’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.