Company Overview - Boyd Group Services Inc. is a Canadian corporation that controls The Boyd Group Inc. and its subsidiaries, with shares trading on the Toronto Stock Exchange under the symbol BYD and on the New York Stock Exchange under the symbol BGSI [2] - The Boyd Group Inc. is one of the largest operators of non-franchised collision repair centers in North America, operating under various trade names including Boyd Autobody & Glass, Assured Automotive, and Gerber Collision & Glass [3] Financial Announcement - Boyd Group Services Inc. announced a cash dividend of C$0.156 per common share for the fourth quarter of 2025, payable on January 28, 2026, to shareholders of record as of December 31, 2025 [1]

Core Viewpoint - Boyd Group Services Inc. has amended its credit facilities to enhance financial flexibility and support the acquisition of Joe Hudson's Collision Center, increasing its revolving credit facilities to US$675 million with a potential maximum of US$1.075 billion [1][3] Group 1: Credit Facilities - The amended credit facilities include an increase in revolving credit to US$675 million, with an accordion feature allowing for a maximum of US$1.075 billion [1] - The existing US$125 million Term Loan A, maturing in March 2027, remains unchanged [1] Group 2: Acquisition Financing - The company plans to partially utilize the amended credit facilities along with proceeds from recent common share and senior unsecured notes offerings to finance the acquisition [3] - The acquisition is progressing through customary closing conditions and regulatory requirements [3] Group 3: Company Overview - Boyd Group Services Inc. is a Canadian corporation that controls The Boyd Group Inc. and its subsidiaries, trading on the TSX under BYD and NYSE under BGSI [4] - The Boyd Group Inc. operates one of the largest networks of non-franchised collision repair centers in North America, with locations in Canada and the U.S. under various trade names [5]

Boyd Group Services Investor Call Summary Company Overview - **Company**: Boyd Group Services Inc. - **Industry**: North American collision industry - **Market Position**: Third largest player in a $50 billion industry with over 1,000 locations and $3 billion in revenue for the trailing twelve months ended June 30, 2025 [4][5] Key Acquisition Announcement - **Acquisition Target**: Joe Hudson's Collision Center - **Purchase Price**: $1.3 billion - **Strategic Importance**: - Increases Boyd's location count by 25% to 1,273 locations - Enhances operational margins and solidifies Boyd's market position [4][7][11] Financial Performance Highlights - **Third Quarter 2025 Estimates**: - Expected revenue growth of approximately 5% year-over-year - Anticipated same store sales growth of 2% to 2.5% - Projected adjusted EBITDA margin improvement to 12.3% to 12.5%, an increase of approximately 170 basis points year-over-year - Expected adjusted EBITDA growth of 21% to 23% for the quarter [5][6] Market Trends and Drivers - **Used Car Prices**: Rise in used car prices and moderation in auto insurance premiums are driving industry volumes - **Repairable Claims Environment**: Improvement in the repairable claims environment has contributed to positive same store sales growth [6][10] Joe Hudson's Collision Center Overview - **Founded**: 1989 in Alabama - **Current Operations**: 258 locations across 18 states, primarily in the Southeast U.S. - **Growth Rate**: 20% compounded annual growth rate in location count since 2020, with $722 million in sales and an adjusted EBITDA margin of 8.7% [8][10][12] Strategic Rationale for Acquisition - **Market Position**: Solidifies Boyd's position in the North American market with a combined estimated revenue share of only 7.6% - **Synergies**: Expected synergies of $35 million to $45 million, with 50% targeted for completion in the near term [11][18][20] - **Operational Improvements**: Enhanced density in key markets will provide opportunities for margin expansion and improved customer service [10][13] Financing and Leverage - **Transaction Financing**: Combination of equity, debt securities, and bank facilities to maintain a strong balance sheet - **Leverage Ratio**: Expected net debt to adjusted EBITDA ratio to increase to 3.4 times at closing, with a plan to reduce it back to current levels by 2027 [17][18] Future Outlook - **Long-term Growth Strategy**: Boyd aims to leverage the acquisition to accelerate profitability and solidify its market position - **Ongoing Initiatives**: Continued execution of Project 360 and other operational strategies to enhance growth and shareholder value [21]

Core Insights - RS Investments' "RS Large Cap Value Strategy" underperformed the Russell 1000 Value Index in Q3 2025, returning 4.47% net compared to the Index's 5.33% [1] - Adverse stock selection in the Consumer Discretionary and Consumer Staples sectors negatively impacted the portfolio's performance [1] Company Analysis: LKQ Corporation - LKQ Corporation is a leading distributor of vehicle products and parts, with a market capitalization of $8.1 billion and a stock price of $31.48 as of October 27, 2025 [2] - The one-month return for LKQ Corporation was 3.08%, but it experienced a significant decline of 15.76% over the last 52 weeks [2] - LKQ is the largest provider of alternative vehicle products in North America, historically growing at GDP+ in a recession-resistant industry [3] - The collision repair industry has faced a cumulative decline of over 15% in vehicle repair volumes due to inflation on insurance rates and repair costs, with LKQ's volumes down 8% to 9% [3] - The anticipated stabilization of the North American collision repair market has not yet occurred, leading to LKQ's stock underperformance in the quarter [3] - Incremental tariffs on imported auto parts are expected to further increase collision repair costs, prompting the company to exit its position in LKQ for the time being [3]

Core Insights - CSN Collision has partnered with ONCAP to acquire various collision centers, marking a significant milestone in its growth strategy [1][2] - The partnership aims to enhance CSN's capabilities to pursue acquisitions of collision repair businesses of any size, supported by ONCAP's financial resources [2][3] - CSN's network of independently owned collision repair centers remains central to its operations, and the investment from ONCAP is expected to facilitate further expansion and support for licensees [2][3] Company Overview - CSN Collision, established in 2002 and headquartered in Oakville, Ontario, is a leading network of collision repair centers in North America, with over 400 locations globally [5] - The company focuses on empowering independent auto body shops through access to insurance programs, procurement advantages, and operational training [5] - CSN Collision is committed to enhancing its presence not only in North America but also in Europe [5] ONCAP Overview - ONCAP is a lower mid-market private equity platform of Onex Corporation, founded in 2000, managing $3.5 billion in assets [6] - The firm specializes in investing in North American businesses and has a team of 39 employees across Toronto and New York [6] - ONCAP's experience in scaling multi-site businesses in the automotive aftermarket is expected to benefit CSN's growth initiatives [3]