• Boyd Group Services Inc (TSX:BYD) has reported C$64.1 million in net profit, a $12 million reduction compared to 2018
  • Boyd Group attributes the loss to unspecified asset adjustments
  • Despite this reduction, company sales and earnings before deductions were both up 22.5 per cent and 24.3 per cent respectively
  • The company has already noticed a reduction in customers due to the ongoing COVID-19 outbreak
  • As a result of the outbreak, Boyd Group is pausing all upcoming acquisitions until further notice
  • Boyd Group Services (BYD) is down 12.9 per cent, with shares trading for $149.47 and a market cap of $3.02 billion

Automotive repairs company, Boyd Group Services (TSX:BYD) has released its full year 2019 financial report, and it’s a mixed bag.

Most notably, the company reported C$64.1 million in net profit, a $12 million reduction compared to 2018. Boyd Group attributes the loss to unspecified asset adjustments.

The company did not specify whether or not these negative adjustments will impact their bottom line moving forward.

However, Boyd Group was quick to point out that, deductions aside, net profits were up 17.5 per cent to $100.5 million.

On the positive side, company sales increased 22.5 per cent to $2.3 billion. Earnings before any deductions, a common indicator of a company’s performance, increased by 24.3 per cent to 215.6 million.

Boyd Group’s President and CEO, Tim O’Day, is happy with the company’s progress in 2019.

“In 2019, we continued to grow on pace to achieve our objective of doubling the size of the business and revenues during the five-year period ending in 2020.”

“In addition to achieving our growth goals and entering into a number of new states and markets, we were honoured to be named in the inaugural TSX30 as one of the top-performing TSX stocks over a three-year period,” he said.

Looking forward, the company’s 2020 outlook is cautious, due to the ongoing impact of COVID-19. Boyd Group has already noticed a reduction in customers, as people hold off car repairs until the outbreak settles.

If the situation worsens, Boyd Group may be required to temporarily close some of its operations.

As a result of the surrounding economic uncertainty, the company is pausing all current acquisitions.

Despite this outlook, the company is optimistic about the upcoming year.

Boyd Group Services Inc (BYD) is down 12.9 per cent, with shares trading for $149.47 at 12:29pm EST.

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