March 16, 2006
Boyd Group Announces Significant Customer Program Changes
Not for distribution to U.S. newswire services or for dissemination in the United States.
Winnipeg, Manitoba — March 16, 2006
— Boyd Group Income Fund (TSX: BYD.UN) today announced that it has completed an evaluation of the potential financial impact of market pricing changes precipitated by recent Direct Repair Program (DRP) alterations initiated by one of its largest insurance company customers. Through its evaluation, Boyd Group has assessed that these pricing changes may materially impact its operating margins in the near term.
The insurance company customer’s DRP changes, which are being tested in a number of U.S. states, including Illinois where Boyd Group has a considerable presence, are aimed at making the insurer’s DRPs more performance driven and more competitively priced. While these changes have the potential to be a positive development for Boyd Group over the long term, given the heightened focus on performance evaluation, and the opportunity for Boyd Group to secure more referrals through strong performance metrics, the financial impact of implementing the required pricing changes under the program is expected to be negative in the near term. Without considering the potential offsetting benefit of any increased repair volume from these program changes, which Boyd Group is unable to accurately forecast at this time, the margin impact of the pricing changes is expected to be in the range of $500,000 to $1,000,000 annually. About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in Canada and among the largest in North America. The company operates locations in the four western Canadian provinces principally under the trade names Boyd Autobody & Glass and Service Collision Repair, as well as in six U.S. states principally under the trade name Gerber Collision & Glass. The company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with affiliated service providers throughout the United States. The Boyd Group Inc. is focused on its plan to be a leader in the consolidation of the highly fragmented North American collision repair industry, recently estimated to generate approximately US$25 billion to US$30 billion in revenue annually. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our Web site 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.
For further information, please contact:
Tel: (204) 895-1244 (ext. 222)
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 228)
email@example.com This press release contains forward-looking statements, other than historical facts, which reflect the view of the Fund’s management with respect to future events. Such forward-looking statements reflect the current views of the Fund’s management and are made on the basis of information currently available. Although management believes that its expectations are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements contained herein are subject to these factors and other risks, uncertainties and assumptions relating to the operations, results of operations and financial position of the Fund. The Fund assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.