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WINNIPEG, Jan. 31, 2014 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) (the "Fund," "Boyd" or the "Boyd
Group") today announced that, further to its news release of October 7,
2013, and the subsequent completion of a competitive market validation
process, it has now entered into a letter of intent with its existing
paint supplier for a new or amended agreement. Under the new or
amended agreement, Boyd will continue to benefit from a back-end
purchase discount structure that was put in place as part of the
amendment and restructuring of its paint supply agreement in October,
2013.
"We are pleased to have taken the next step towards finalizing a new
long-term paint supply arrangement that better reflects our current
size, purchasing scale and access to capital, as well as changing paint
market conditions," said Brock Bulbuck, President and Chief Executive
Officer of the Boyd Group. "Under the new arrangement, we will continue
to benefit from the accretive nature of the higher, market-driven,
back-end purchase discounts achieved by amending and restructuring our
previous arrangement last October. We are also very pleased to be able
to continue to work with our incumbent paint supplier, who has been a
valued business partner since 2006."
Boyd will work with its paint supplier to finalize a definitive
agreement prior to March 31, 2014 and Boyd will continue to benefit
from the higher back-end purchase discounts during this interim period.
Should Boyd not be able to finalize a definitive agreement with it
paint supplier by March 31, it assesses that it would have comparable
competitive offerings available to it.
About The Boyd Group Income Fund
The Boyd Group Income Fund (http://www.boydgroup.com) 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
Units trade on the Toronto Stock Exchange (TSX) under the symbol
BYD.UN.
About The Boyd Group Inc.
In terms of locations, The Boyd Group Inc. is the largest operator of
non-franchised collision repair centres in North America and one of the
largest in terms of sales. The Company operates locations in five
Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 15 U.S. states under the trade names Gerber Collision &
Glass (http://www.gerbercollision.com) and Hansen Collision. The Company is also a major retail auto glass
operator in the U.S. with locations across 28 U.S. states under the
trade names Gerber Collision & Glass, Glass America, Auto Glass
Services, Auto Glass Authority, S&L Glass and Hansen Auto 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.
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", "forecast",
"anticipate", "estimate", "expect", "intend", or "continue" or the
negative thereof or similar variations. Forward looking statements in
this press release include the likelihood of the restructuring of the
paint supply arrangements and the Offering being completed on the
stated terms or at all and the accretive nature of the stated
market-driven, back-end paint purchase discounts to the Fund's earnings
and cash flows.
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: ability to successfully complete paint supply
arrangement restructuring on an accretive basis; dependence upon The
Boyd Group Inc. and its Subsidiaries; cash distributions not
guaranteed; inability to successfully integrate acquisitions; economic
downturn; operational performance; rapid growth; loss of key customers;
brand management and reputation; insurance risk; quality of corporate
governance; tax position risk; risk of litigation; acquisition risk;
credit & refinancing risks; dependence on key personnel; employee
relations; decline in number of insurance claims; market environment
change; reliance on technology; weather conditions; expansion into new
markets; fluctuations in operating results and seasonality; increased
government regulation and tax risk; execution on new strategies;
operating hazards; energy costs; U.S. health care costs and workers
compensation claims; low capture rates; key supplier relationships;
capital expenditures; competition; potential undisclosed liabilities
associated with acquisitions; foreign currency risk; ability to
successfully integrate acquisitions and realize synergies; regulatory
risks; margin pressure; acquisition and start-up growth and ongoing
access to capital; environmental, health and safety risk; interest
rates; 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.
All forward-looking statements are made as of this date and the Fund
assumes no obligation to update such statements.
SOURCE Boyd Group Income Fund
