November 13, 2009

Boyd Group Income Fund Reports Record 2009 Third Quarter Results

Not for distribution to U.S. newswire services or for dissemination in the United States

— Fund Trustees approve eighth consecutive quarterly increase to distributions —

Winnipeg, Manitoba — November 13, 2009 — Boyd Group Income Fund (TSX: BYD.UN) (“the Fund” or “the Boyd Group”) today reported its financial results for the three and nine-month periods ended September 30, 2009. The Fund’s complete fiscal 2009 third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com). Boyd Group also announced that the Trustees of the Fund have approved a 5.3% increase in monthly distributions from $0.02375 per unit to $0.025 per unit, commencing January 2010 for unitholders of record on December 31, 2009.

Q3 2009 Highlights
  • Sales increased 2.4% to a third quarter record of $52.5 million from $51.3 million in Q3 2008
  • EBITDA1 increased 14.3% to an all-quarter record of $3.8 million compared to $3.3 million in Q3 2008
  • Net earnings increased 15.8% to an all-quarter record of $2.2 million compared to $1.9 million in Q3 2008
  • Adjusted distributable cash2 totaled $2.8 million compared to $3.1 million in Q3 2008
  • Payout ratio of 28.6% compared to 20.8% in Q3 2008
“We are pleased to report a record third quarter with increased sales and EBITDA. Net earnings also increased in the quarter and represent a record high for the Boyd Group,” said Terry Smith, CEO of the Boyd Group. “Although we experienced a decline in same store sales growth in the third quarter in both Canada and the U.S., we are confident that this still represents market share gains for our business. As previously disclosed, due to the extent and duration of the downturn, we expect that achieving same store sales growth will continue to be a challenge until economic conditions improve. We believe that we are well positioned to continue to mitigate the impact of the recession and will continue to focus on a return to same store sales growth.”

“This quarter marks our second full year of consecutive quarterly increases to our monthly distributions,” added Mr. Smith. “With stable to improving financial performance, we expect that distributions will continue to be gradually increased over time. We will, however, continue to closely monitor our payout ratio to insure that it continues to be at a stable and sustainable level, especially in light of current economic conditions.”

Brock Bulbuck, President and Chief Operating Officer of the Boyd Group added, “In addition to working on optimizing the performance of our existing operations, we will also continue our expansion program of adding eight to ten new collision repair start-ups each year for the foreseeable future. The current state of the market provides the opportunity for a large multi-center operator, such as the Boyd Group, to act as a consolidator and purchase new centers at attractive values. To date in 2009, we have opened four new collision repair centers in Canada and the U.S. and we are well positioned to achieve our growth target for 2009.”

Financial Results

Three Months Ended September 30, 2009

Sales for the three months ended September 30, 2009 increased 2.4% to $52.5 million, compared to sales of $51.3 million for the three months ended September 30, 2008. This increase resulted from the launch of three new collision repair start-ups as well as sales generated from a glass repair and replacement services business in Texas. The benefit of a higher U.S. dollar translation rate on sales generated from Boyd Group’s U.S. operations was partially offset by lower same store sales.

On a segmented basis, sales in Canada decreased 0.6% to $17.4 million for the three months ended September 30, 2009, from $17.5 million for the three months ended September 30, 2008. Sales increases in Canada from new start-ups in Calgary, Alberta and Winnipeg, Manitoba were partially offset by same store sales declines of 2.8% when compared to the same period in the prior year.

Sales in the U.S. increased 3.9% to $35.1 million in the third quarter of 2009, from $33.8 million in the same quarter a year ago. Sales in the U.S. included sales from new collision repair start-ups in Mesa, Arizona and Glendale, Arizona, as well as a glass repair and replacement services business located in Texas. Excluding the impact of foreign currency translation, same store sales in the U.S. decreased 4.0% when compared to the same period in the prior year.

Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 for the third quarter of 2009 increased 14.3% to $3.8 million, or 7.2% of sales, compared to EBITDA of $3.3 million, or 6.5% of sales, in the same quarter a year ago. The increase in EBITDA was due to foreign exchange gains on derivative contracts and the EBITDA contribution from new start-ups. Improvements in EBITDA resulting from the translation of the U.S. dollar at higher exchange rates helped to offset lower EBITDA due to same store sales declines. For the three months ended September 30, 2009, net earnings were $2.2 million, or $0.190 per unit (basic) and $0.188 per unit (diluted), compared to $1.9 million, or $0.155 per unit (basic) and $0.153 per unit (diluted) for the three months ended September 30, 2008. The increase in earnings was primarily the result of U.S. earnings being translated at higher exchange rates, as well as foreign exchange gains on derivative contracts. The earnings contribution from new start-ups and reduced interest costs were offset by lower earnings associated with same store sales declines and higher depreciation charges. For the third quarter of 2009, the Fund generated adjusted distributable cash2 of $2.8 million, which includes adjustments for the collection of additional prepaid rebates, cash flow used in discontinued operations, proceeds on the sale of equipment, and capital lease repayments. The Fund paid distributions of $0.8 million, representing a payout ratio of 28.6% for the quarter.

Nine Months Ended September 30, 2009

Sales for the nine months ended September 30, 2009 increased 11.9% to $171.6 million, compared to sales of $153.4 million for the nine months ended September 30, 2008, after adjusting for the effect of discontinued operations. This increase resulted primarily from the translation of U.S. revenues at a stronger U.S. dollar exchange rate relative to the Canadian dollar and from sales generated from seven new collision repair start-ups and a glass repair and replacement services business, the total of which contributed $9.2 million of new revenue.

On a segmented basis, sales in Canada increased 2.6% to $55.8 million in the first nine months of 2009, compared to sales of $54.4 million a year ago. The increase in sales was attributable to revenue generated from two new collision repair start-ups in Calgary, Alberta and Winnipeg, Manitoba. Same store sales decreased by 0.6% when compared to the same period in the prior year.

Sales in the U.S. increased 16.9% to $115.8 million in the first nine months of 2009, from $99.0 million a year ago. The increase in sales was primarily attributable to the translation of U.S. revenues at a stronger U.S. dollar exchange rate, as well as from revenue generated by five new collision repair start-ups in Wichita, Kansas; Lacey, Washington; Las Vegas, Nevada; Mesa, Arizona and; Glendale, Arizona, as well as a glass repair and replacement services business located in Texas. Excluding the impact of foreign currency translation, same store sales in the U.S. decreased 4.9% when compared to the same period in the prior year.

Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 for the nine-month period ended September 30, 2009 increased 11.5% to $11.0 million, or 6.4% of sales, compared to EBITDA adjusted for discontinued operations (“Adjusted EBITDA”)1 of $9.9 million, or 6.4% of sales, in the same period a year ago. The increase in EBITDA was primarily the result of EBITDA contribution from new start-ups. The improvement in EBITDA resulting from the translation of the U.S. dollar at higher exchange rates was offset by same store sales declines.

For the nine months ended September 30, 2009, net earnings from continuing operations were $6.3 million, or $0.538 per unit (basic) and $0.533 per unit (diluted), compared to net earnings of $5.6 million, or $0.470 per unit (basic) and $0.464 per unit (diluted) in the same period a year ago.

For the nine months ended September 30, 2009, net earnings were $6.3 million, or $0.538 per unit (basic) and $0.533 per unit (diluted), compared to net earnings of $3.7 million, or $0.308 per unit (basic) and $0.305 per unit (diluted), in the same period a year ago. The increase in earnings was primarily the result of U.S. earnings being translated at higher exchange rates, as well as foreign exchange gains on derivative contracts. The contribution from new start-ups and reduced interest costs were partially offset by lower earnings associated with same store sales declines and higher depreciation charges. The net earnings from the same period a year ago were impacted by a prior year loss of $1.9 million upon the decision to discontinue operations in certain facilities.

In the first nine months of 2009, the Fund generated adjusted distributable cash2 of $8.3 million, which includes adjustments for the collection of additional prepaid rebates, cash flow used in discontinued operations, proceeds on the sale of equipment, adjustments to reserves for working capital changes, and capital lease repayments. The Fund paid distributions of $2.3 million, representing a payout ratio of 27.1% for the period.

As at September 30, 2009, the Fund had total debt outstanding, net of cash of $17.2 million, compared to $21.6 million at December 31, 2008. The Fund’s net working capital ratio was 0.99:1 as at September 30, 2009 (December 31, 2008 - 0.94:1).

Q3 2009 Results Conference Call & Webcast

Management will hold a conference call on Friday, November 13, 2009 at 10:00 a.m. (ET) to review the Fund’s 2009 third quarter financial results. A live audio webcast of the conference call will be available through www.boydgroup.com. An archived replay of the webcast will be available for 90 days. A taped replay of the conference call will also be available until Friday, November 20, 2009 at midnight by calling
1-877-289-8525 or 416-640-1917, reference number 4174568#.

(¹)(²)EBITDA, Adjusted EBITDA, distributable cash and adjusted distributable cash are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management believes that in addition to revenue, net earnings and cash flows, the supplemental measures of distributable cash, adjusted distributable cash, 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 EBITDA, Adjusted EBITDA, distributable cash and adjusted distributable cash should not be construed as an alternative to net earnings determined in accordance with GAAP as an indicator of the Fund’s performance. Boyd’s method of calculating distributable cash and adjusted distributable cash may differ from other public issuers and, accordingly, may not be comparable to similar measures used by other issuers. For a detailed explanation of how the Fund’s distributable cash and adjusted distributable cash is calculated, please refer to the Fund’s MD&A filing for the three-month period ended June 30, 2009, which can be accessed via the SEDAR Web site (www.sedar.com).

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 under the trade name Boyd Autobody & Glass, as well as in seven U.S. states 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. 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.

For further information, please contact:
Brock Bulbuck
President & COO
Tel: (204) 895-1244
brock.bulbuck@boydgroup.com

Dan Dott
Chief Financial Officer
Tel: (204) 895-1244
dan.dott@boydgroup.com

Bruce Wigle or Adriana Braczek
Investor Relations
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 228 / 240)
bwigle@equicomgroup.com/ abraczek@equicomgroup.com

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.
Corporate Headquarters
The Boyd Group Inc.

3570 Portage Avenue
Winnipeg, Manitoba, R3K 0Z8
Email: info@boydgroup.com
Tel: 204-895-1244
Fax: 204-895-1283