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Boyd Group Profit Slips as Financing Costs Rise

Boyd Group Services’ third-quarter net income fell to $81,000 from $10.8 million a year earlier, as higher financing, acquisition and integration costs outweighed revenue growth from newly added collision repair locations.

Boyd Group Profit Slips as Financing Costs Rise

The company, which operates nonfranchised collision repair centers, reported earnings of zero cents a share, compared with 50 cents a share in the same quarter last year. Financing costs rose to $32.3 million from $18.8 million. Higher amortization of intangible assets and acquisition and transformational costs also weighed on profit.

Adjusted earnings were 68 cents a share, below the 83 cents analysts expected, according to FactSet. Revenue increased 28% to $1.01 billion, but fell short of analysts’ $1.02 billion estimate. The Joe Hudson’s Collision Centers acquisition was a major source of growth, adding locations and $206 million in revenue.

Boyd ended the quarter with 1,329 collision locations, up from 1,014 a year earlier. Same-store sales growth slowed to 2.2% from 2.4% in the comparable period.

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