/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ - Adjusted EBITDA challenged as mild winter weather impacts demand - WINNIPEG, MB, May 15, 2024 /CNW/ - Boyd Group Services Inc. (TSX:BYD) ("BGSI", "the Boyd Group", "Boyd" or "the Company") today announced the results for the three month period ended March 31, 2024. The Boyd Group's first quarter 2024 financial statements and MD&A have been filed on SEDAR+ (www.sedarplus.ca). This news release is not in any way a substitute for reading Boyd's financial statements, including notes to the financial statements, and Boyd's Management's Discussion & Analysis.  Results and Highlights for the First Quarter Ended March 31, 2024:  Sales increased by 10.0% to $786.5 million from $714.9 million in the same period of 2023, including same-store sales1 increases of 2.2%. The first quarter of 2024 recognized the same number of selling and production days when compared to the same period of 2023 Gross Profit increased by 7.8% to $352.6 million or 44.8% of sales from $327.0 million or 45.7% of sales in the same period in 2023 Adjusted EBITDA1 decreased 3.5% to $81.7 million, or 10.4% of sales, compared with Adjusted EBITDA of $84.7 million, or 11.8% of sales in the same period of 2023 Adjusted net earnings1 decreased to $9.4 million, compared with $21.2 million in the same period of 2023 and adjusted net earnings per share1 decreased to $0.44, compared with $0.99 in the same period of 2023 Net earnings decreased to $8.4 million, compared with $20.8 million in the same period of 2023 and net earnings per share decreased to $0.39, compared with $0.97 in the same period of 2023 Debt, net of cash before lease liabilities increased from $399.2 million at December 31, 2023 to $438.5 million at March 31, 2024 Declared first quarter dividend in the amount of C$0.15 per share Added 13 collision repair locations, including 12 through acquisition and one start-up location Extended the revolving credit facilities maturity to March 2028 and increased availability to a maximum of $850 million, with the existing $125 million Term Loan A maturing in March 2027 remaining unchanged Subsequent to Quarter End Added seven collision repair locations, including six through acquisition and one start-up location Published Boyd's third Environmental, Social and Governance ("ESG") Report "First quarter results were disappointing, with sales of $786.5 million, Adjusted EBITDA of $81.7 million and net earnings of $8.4 million", said Timothy O'Day, President & Chief Executive Officer of the Boyd Group. "Following several quarters of demand for services exceeding capacity, the first quarter was significantly impacted by mild winter weather with claims and appraisal volumes experiencing decline, while used car pricing returned to more normal levels, increasing the frequency of total losses.  As reported by industry sources, repairable appraisals were down 8% during the quarter, with a greater share of decline in the month of March, which was unanticipated when we last reported.  As a result of the decline in demand, the cost structure and workforce that Boyd had in place exceeded the level of demand and placed pressure on the level of Adjusted EBITDA the Company could deliver during the first quarter of 2024." _________________________________________ 1 Same-store sales,  Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers.  For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release.   Results of Operations For the three months ended,     March 31, (thousands of U.S. dollars, except per share amounts) 2024 % change 2023 Sales – Total 786,547 10.0 714,941 Same-store sales – Total (excluding foreign exchange)(1) 727,794 2.2 712,324 Gross margin % 44.8 % (2.0) 45.7 % Operating expense % 34.4 % 1.5 33.9 % Adjusted EBITDA (1) 81,707 (3.5) 84,694 Acquisition and transaction costs 1,446 160.1 556 Depreciation and amortization 52,618 20.1 43,795