March 26, 2010

Boyd Group Income Fund Reports Record Year

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

- Fund Trustees approve increase to distributions -

Winnipeg, Manitoba - March 26, 2010 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund” or “the Boyd Group”) today reported its financial results for the three and twelve-month periods ended December 31, 2009. The Fund’s complete fiscal 2009 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 5.0% increase in monthly distributions from $0.025 per unit to $0.02625 per unit commencing May 2010 for unitholders of record on April 30, 2010.

2009 Highlights

  • Record sales, EBITDA1, net earnings and distributable cash
  • Sales increased 7.2% to $224.9 million from $209.7 million in 2008
  • EBITDA totalled $14.9 million compared to $13.2 million in 2008
  • Net earnings increased 97.2% to $8.9 million from $4.5 million in 2008
  • Adjusted distributable cash2 increased to $12.6 million from $11.1 million in 2008
  • Trustees of the Fund approved four separate increases to monthly cash distributions during the year, increasing distributions 25.0% from $0.02 per unit to $0.025 per unit
  • Commenced operations at nine new start-up facilities located in Manitoba (1), Georgia (1) and Arizona (7)

“We are pleased to report record sales, net earnings, EBITDA and cash available for distribution in fiscal 2009,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “As a result of our successful 2009 performance, we have announced a further increase to our monthly distributions.”

“In addition to posting good results in a challenging market in 2009, we are also pleased with our progress in advancing both operational and growth initiatives during the year, and we believe that our business is well positioned for the future,” added Mr. Bulbuck. “We are confident that we are continuing to gain market share as many automobile insurers consolidate Direct Repair Program revenues with fewer auto collision repairers. We also opened nine new collision repair centers as part of our growth plan to add eight to ten locations per year. We have the management team, systems, experience and the market opportunity, along with a strong balance sheet, to continue to successfully grow our business.”

“Notwithstanding our positive position and outlook, as a result of the trailing impact of the economic downturn, particularly the continuing high unemployment rates, our market conditions remain soft and we expect that achieving same store sales growth will continue to be a challenge until economic conditions stabilize and unemployment rates show meaningful improvement,” continued Mr. Bulbuck. “In addition, extremely mild and dry winter weather in many of our northern markets is currently adding to the challenges of the economy.”

“Our objective continues to be to gradually increase distributions over time, however, we are committed to a conservative distribution policy in order to maintain our financial flexibility and support our growth initiatives,” concluded Mr. Bulbuck. “We will therefore continue our prudent approach and give full consideration as to whether further distribution increases are appropriate during these challenging times.”

Financial Results

Three Months Ended December 31, 2009

Sales for the three months ended December 31, 2009 decreased 5.3% to $53.3 million, compared to sales of $56.3 million for the three months ended December 31, 2008. This decrease resulted from the impact of foreign currency translation attributable to sales generated from the Company’s U.S. operations, offset by sales growth from nine new start-up locations developed in 2009, and same store sales increases of 0.2%.

Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 for the fourth quarter of 2009 totalled $3.9 million or 7.2% of sales compared to earnings from continuing operations before interest, income taxes, depreciation and amortization (“adjusted EBITDA”)1 of $3.3 million or 5.8% of sales in the same period a year ago.

For the fourth quarter of 2009, net earnings from continuing operations were $2.5 million or 4.8% of sales compared to $1.7 million of 3.0% of sales for the fourth quarter of 2008.

For the three months ended December 31, 2009, net earnings after discontinued operations were $2.5 million or $0.21 per diluted unit and Class A common share, compared to net earnings of $0.8 million or $0.06 per diluted unit and Class A common share in the same period in 2008.

Adjusted distributable cash2 for the fourth quarter of 2009, increased to $4.3 million from $2.6 million in the fourth quarter a year ago.

Twelve Months Ended December 31, 2009

For the twelve months ended December 31, 2009 sales increased 7.2% to $224.9 million compared to sales of $209.7 million in the same period a year ago, after adjusting for the effect of discontinued operations. This increase resulted from the translation of U.S. same store sales at a stronger U.S. dollar exchange rate of $9.5 million and new sales generated from nine new collision repair start-ups of $10.6 million in the regions of Manitoba, Georgia and Arizona. Excluding the effect of foreign currency translation, same store sales decreased $4.9 million or 2.4% for the year ended December 31, 2009.

Sales in Canada totalled $74.4 million in 2009, an increase of 2.3%, compared to $72.7 million a year ago. Sales increases in Canada were due to an increase in sales of $1.9 million from one 2008 start-up in Calgary, Alberta and one 2009 start-up in Winnipeg, Manitoba. Same store sales in Canada decreased $0.2 million or 0.3% when compared to the prior year.

Sales in the U.S. totalled $150.5 million for the year ended December 31, 2009, up 9.9% from $137.0 million a year ago. Sales increases in the U.S. included sales of $8.7 million from: three 2008 start-ups in Wichita, Kansas, Lacey, Washington, and Las Vegas, Nevada; a glass repair and replacement services business located in Texas; as well as seven 2009 start-ups in Arizona and one 2009 start-up in Rome, Georgia. Translation of U.S. revenues at a stronger U.S. dollar exchange rate, relative to the Canadian dollar, resulted in an increase in same store sales of $9.5 million. Excluding the impact of foreign currency translation, same store sales in the U.S. decreased $4.7 million or 3.5% when compared to 2008.

The Fund’s EBITDA for the twelve months ended December 31, 2009 totalled $14.9 million, or 6.6% of sales, compared to adjusted EBITDA of $13.2 million, or 6.3% of sales, for the twelve months ended December 31, 2008. The increase in EBITDA was primarily the result of increased sales from new start-ups and the translation of the U.S. dollar at higher exchange rates.

For the year ended December 31, 2009, net earnings from continuing operations were $8.9 million or 3.9% of sales compared to $7.3 million or 3.5% of sales for the year ended December 31, 2008. Net earnings were $8.9 million or $0.75 per diluted unit and Class A common share, compared to $4.5 million or $0.37 per diluted unit and Class A common share in the same period a year ago.

For the twelve months ended December 31, 2009, adjusted distributable cash2, which includes adjustments for the collection of additional prepaid rebates, cash flow used in discontinued operations, proceeds on the sale of equipment, reserves for working capital requirements and capital lease repayments, increased to $12.6 million from $11.1 million a year ago.

As at December 31, 2009, the Fund had total debt, net of cash of $16.7 million compared to $17.2 million at September 30, 2009, $19.8 million at June 30, 2009, $22.2 million at March 31, 2009 and $21.6 million at December 31, 2008. The change is due to reductions in bank indebtedness and increases of cash positions, partially offset by increases in capital lease financing.

Subsequent Events

Based on continued improvement in the Fund’s financial performance, on March 25, 2010, the Trustees of the Fund approved the ninth consecutive quarterly increase in monthly distributions and dividends to $0.02625 per unit commencing May 2010, for unitholders and shareholders of record on April 30, 2010.

2009 Year End Results Conference Call & Webcast

Management will hold a conference call on Friday, March 26, 2010 at 10:00 a.m. (ET) to review the Fund’s 2009 fourth quarter and year end financial results. You can join the call by dialling 888-231-8191 or 647-427-7450. 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, April 2, 2010 at midnight by calling 800-642-1687 or 416-849-0833, reference number 59344698.

(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 and twelve-month period ended December 31, 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 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.

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

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

Dan Dott
Chief Financial Officer
Tel: (204) 895-1244
dan.dott@boydgroup.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, health & safety 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