Tonix Pharmaceuticals stock halted ahead of FDA approval news
Boyd Group Services Inc. (BYD) experienced a notable 18.38% increase in its stock price following its second-quarter earnings call for 2025. According to InvestingPro data, the company’s stock is currently trading above its Fair Value, with a "GOOD" overall financial health score of 2.78 out of 5. The company’s financial performance showed a slight increase in sales and improved margins, despite challenges in same-store sales. This positive market reaction comes as Boyd continues to focus on operational efficiencies and strategic growth initiatives.
[Discover 10+ exclusive InvestingPro Tips for Boyd Group Services, including detailed valuation metrics and growth indicators.]
Key Takeaways
- Boyd Group’s stock rose by 18.38% following the earnings call.
- Q2 sales increased by 0.2% to $780.4 million.
- Gross margin improved to 46.8%, a 120 basis point increase year-over-year.
- The company is on track with its cost savings initiative, targeting $30 million in annual run-rate savings.
- Boyd Group is focusing on expanding its market presence with a target of 1,400+ locations.
Company Performance
Boyd Group Services reported a modest increase in sales for Q2 2025, with total sales reaching $780.4 million, up 0.2% from the previous year. The company’s trailing twelve-month revenue stands at $4.03 billion, with a healthy gross profit margin of 61.27%. Despite a decline in same-store sales, the company managed to improve its gross margin to 46.8%, up from 45.6% in Q2 2024. This improvement was driven by operational efficiencies and strategic initiatives such as the internalization of scanning and calibration processes and the implementation of an indirect staffing model.
Financial Highlights
- Revenue: $780.4 million, up 0.2% year-over-year
- Gross margin: 46.8%, up 120 basis points from the previous year
- Adjusted EBITDA: $93.8 million, a 4.7% increase year-over-year
- Adjusted EBITDA margin: 12%, up from 11.5% in Q2 2024
- Net earnings: CAD 5.4 million, compared to CAD 10.8 million in Q2 2024
Market Reaction
Following the earnings call, Boyd Group’s stock surged by 18.38%, trading at $83.59, near its 52-week high of $87.76. InvestingPro analysis indicates the stock trades at a P/E ratio of 12.88 and an EV/EBITDA multiple of 8.58, suggesting relatively high valuations. This increase reflects positive investor sentiment, likely driven by the company’s improved margins and ongoing cost-saving initiatives. The stock has delivered an impressive 49.63% total return over the past year, indicating strong confidence in the company’s strategic direction.
Outlook & Guidance
Boyd Group maintains a positive outlook, with plans to open 8-10 new startup locations per quarter and a focus on Project 360 initiatives. The company aims to reach $5 billion in revenue and expand its network to over 1,400 locations. InvestingPro data shows the company has maintained dividend payments for 19 consecutive years, with analysts forecasting EPS of $7.04 for FY2025. The company’s strong dividend history and growth prospects make it an interesting case study in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Executive Commentary
CEO Brian Kaner highlighted the company’s progress, stating, "We’ve begun to see the results of the team’s hard work in our second quarter results." He also emphasized the success of the cost savings initiative, noting, "We are on track to generate $30 million in annual run-rate savings from this initiative."
Risks and Challenges
- Decline in same-store sales could impact future revenue growth.
- Market saturation and increased competition may pose challenges to expansion plans.
- Macroeconomic factors, such as changes in auto insurance premiums and used car prices, could affect demand.
- Achieving targeted cost savings may require continued operational adjustments.
- Dependence on insurance partnerships necessitates maintaining strong relationships.
Q&A
During the earnings call, analysts inquired about Boyd Group’s acquisition strategy and the modest growth in same-store sales. The company clarified its focus on building market density through strategic acquisitions and highlighted the absence of significant tariff impacts to date. Boyd Group also emphasized its commitment to achieving revenue synergies through these acquisitions.
Full transcript - Boyd Group Income Fund (BYD) Q2 2025:
Conference Operator: Good morning, everyone. Welcome to the Boyd Group Services, Inc. Second Quarter twenty twenty five Results Conference Call. Listeners are reminded that certain matters discussed in today’s conference call or answers that may be given to questions asked could constitute forward looking statements that are subject to risks and uncertainties related to Boyd’s future financial or business performance. Actual results could differ materially from those anticipated in these forward looking statements.
The risk factors that may affect results are detailed in Boyd’s annual information form and other periodic filings and registration statements, and you can access these documents at SEDAR’s database found at sedarplus.ca. I would like to remind everyone that this conference call is being recorded today, Wednesday, 08/13/2025. I would now like to introduce Mr. Brian Kaner, President and Chief Executive Officer of Boyd Group Services Inc. Please go ahead, Mr.
Kaner.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thank you, operator. Good morning, everyone, and thank you for joining us for today’s call. On the call today with me or on the call with me today is Jeff Murray, our Executive Vice President and Chief Financial Officer. We released our second quarter twenty twenty five results before markets open today. You can access our news releases as well as our complete financial statements and management discussion and analysis on our website at boydgroup.com.
Our news release, financial statements and MD and A have also been filed on SEDAR plus this morning. On today’s call, we will discuss the financial results for the quarter ended 06/30/2025, and provide a general business update. We will then open the call for questions. The Boyd team has been focused on improving profitability, deepening our customer relationships, and strengthening our go to market strategy for new location growth. I’m pleased to report that we’ve begun to see the results of the team’s hard work in our second quarter results.
Throughout the second quarter, we continued to gain market share despite industry headwinds and expanded our gross margins by 120 basis points on the back of continued internalization of scanning and calibration, improved performance based pricing, and improved parts margins. We also made headway with Project three sixty, which helped increase adjusted EBITDA margins to 12%, the highest quarterly adjusted EBITDA margin performance since 2023. In addition, early in the second quarter we closed our first MSO acquisition since 2021 and surpassed the thousandth location milestone. During the second quarter we successfully executed the indirect staffing model which was the first major initiative of Project three sixty. We are on track to generate $30,000,000 in annual run rate savings from this initiative starting in Q2 and expect to achieve $40,000,000 in incremental savings between 2025 and the 2026 with incremental key initiatives focused on direct and indirect procurement spending.
The remaining $30,000,000 of our $100,000,000 cost savings goal will be realized between 2027 and 2029. In addition to Project three sixty, there are several other important initiatives that we have been working on to strengthen our customer relationships, gain market share, and improve the cadence and strategic fit of our new location growth. To further strengthen our customer relationships, we’ve taken our long standing Wow Operating Way one step closer to our insurance company clients. While this enabled Boyd to achieve above industry performance in Net Promoter Score, total cycle time, and average cost of a repair. We’ve expanded this initiative to focus on each of our insurance company clients’ unique performance indicators, striving to provide all vehicle owners with an exceptional customer service experience.
We have linked the compensation structure of our regional and field management to these custom performance metrics and believe this initiative has played an important role in our same store sales industry outperformance. We have augmented our go to market strategy. We have undergone a comprehensive analysis of each of our regions to enable the company to take a more strategic approach to our new location growth with an emphasis on strengthening our position in our core markets. This will enable Boyd to generate enhanced revenue synergies and operating leverage, provide a more predictable cadence of new startup locations and position ourselves to better serve our insurance company clients. In early twenty twenty five, we shifted our approach to development of new start up locations.
On a go forward basis, the development of start up facilities will be primarily outsourced and upon completion ownership will transfer directly to a leasing company. This approach will streamline the development process, deliver greater cost certainty, enable the company to build a robust pipeline of new location growth. We have seen great progress in building this pipeline and beginning Q3 twenty twenty five we are now on track to open an average of eight to 10 new startup locations per quarter going forward. While the industry volumes continue to be challenged in the second quarter, over the past six months we’ve seen an improvement in several factors that contributed to the industry decline, namely a return to positive growth in used car pricing and moderating growth rates in insurance premiums. While we expect it to take time for the industry volumes to normalize and customers to adjust to higher insurance costs, we did experience some initial signs in our business late in the second quarter.
We have thus far in the quarter and we have this has continued thus far in the third quarter, the company to post a modest amount of same store sales growth in July. While we are pleased to see the initial signs of improvement in our volumes, we will continue to maintain our steadfast focus on executing our growth strategy, enhancing our profitability and generating strong returns for our shareholders. I will now turn the call over to Jeff to run through our Q2 results in more detail.
Jeff Murray, Executive Vice President and Chief Financial Officer, Boyd Group Services Inc.: Thanks, Brian. During the second quarter, our sales increased 0.2% to $780,400,000 with same store sales excluding foreign exchange decreasing by 2.1%. This decline was offset by $21,000,000 of incremental revenue from 53 new locations that were not in operation for the full comparative period. Similar to prior quarters Boyd continued to outperform the industry Based on claims processing platform data for the second quarter, we estimate that industry volumes were down in the range of 6% to 8%. Gross margin was 46.8% in the 2025, up 120 basis points from the 45.6% achieved in the same period of 2024.
Gross margin percentage increased due to several factors including the benefits of internalization of scanning and calibration, improvements to performance based pricing and an increase in parts margins. Improvements to parts margins are the result of Project three sixty initiatives to enhance direct parts procurement to drive cost efficiencies. To date, the company has not experienced any material impact as a result of tariffs. Operating expenses for the 2025 were $271,700,000 or 34.8% of sales compared to $265,900,000 or 34.1% of sales in the same period of 2024. Operating expenses as a percentage of sales was positively impacted by the introduction of Project three sixty, the transformational cost initiative launched during the 2024.
During the quarter, the company successfully rolled out the indirect staffing model and is on track to realize an annualized cost savings run rate of $30,000,000 as a result. More than offsetting this positive impact were lower same store sales causing negative leverage, quarter to quarter variation in certain accruals and an investment in facilities maintenance costs was spent in the quarter being elevated due to pent up demand from deferred work. The company also experienced incremental costs associated with the internalization of scanning and calibration and higher information technology expenses related to additional licensing and security costs. While the internalization of scanning and calibration continues to be positive for gross profit and adjusted EBITDA, it does not contribute incremental sales and therefore increases operating expenses as a percentage of sales. Despite the challenges faced this quarter, the company remains on track to realize its margin enhancement objectives.
Adjusted EBITDA or EBITDA adjusted for fair value adjustments to financial instruments and costs related to acquisitions and transformational cost initiatives was $93,800,000 an increase of 4.7% over the same period of 2024. Adjusted EBITDA margins increased to 12% in the second quarter, up from 11.5% in Q2 twenty twenty four and ten point three percent in 2025. The year over year increase in adjusted EBITDA was a result of improvements in gross margin as well as lower operating costs and shop labor as a result of the rollout of Project three sixty. Net earnings for the 2025 were CAD5.4 million compared to CAD10.8 million in the same period of 2024. Excluding fair value adjustments and acquisition and transformational cost initiatives, adjusted net earnings for the 2025 was 10,800,000 or $0.50 per share compared to $11,900,000 or $0.56 per share in the same period of the prior year.
Net earnings and adjusted net earnings for the period benefited from higher adjusted EBITDA, but were negatively impacted by increased depreciation expense and increased finance costs. The increase in depreciation expense was primarily due to growth in locations, investment in network technology upgrades, as well as growth related to the calibration business. At the end of the period we had total debt net of cash of $1,200,000,000 Debt net of cash before lease liabilities increased from 487,200,000.0 at 12/31/2024 to 505,800,000.0 at 06/30/2025. Debt net of cash before lease liabilities increased as a result of location growth. As noted earlier during the 2025, the company changed its approach whereby on a go forward basis the development of startup facilities will primarily be outsourced and upon completion ownership will transfer directly to a leasing company.
During the first half of twenty twenty five, the company completed sale leaseback transactions for proceeds of $9,200,000 The sale leaseback transactions allowed the company replenish capital that can be redeployed to further grow the business. During 2025 the company plans to make cash capital expenditures excluding those related to network technology upgrades and acquisition and development of new locations within the range of 1.61.8% of sales. In addition to these capital expenditures the company plans to invest in network technology upgrades to further strengthen our technology and security infrastructure and prepare for advanced technology needs in the future. Excluding expenditures related to network technology upgrades and acquisition and development, the company spent approximately CAD 11,100,000.0 or 1.4% of sales on capital expenditures during the 2025. The company spent $16,100,000 or 2.1% of sales on capital expenditures excluding expenditures related to acquisition and development during the same period of 2024.
I will now pass it back to Brian for closing remarks.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thanks, Jeff. As I mentioned in my initial remarks, the Boyd team has put forward great efforts to improve our business and put us in the best possible position demand for services increases. I want to thank them for their hard work and dedication. We had a busy start to the third quarter and as we completed the acquisition of L and M Body Shop, a regional Virginia based MSO with eight locations and surpassed the thousandth location milestone. Over the past two quarters, we’ve seen an increase in acquisition opportunities and thanks to our strong balance sheet and disciplined approach to acquisitions through the downturn, we are well positioned to take advantage of this opportunity.
As we look forward, we will continue to remain focused on delivering our Project three sixty targets, realizing the benefits of our enhanced go to market strategy, and expanding our customer performance metrics, and executing our proven growth strategy. With that, I’d now like to open the call to questions. Operator?
Conference Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. And your first question is from Steve Hansen from Raymond James. Your line is now open.
Steve Hansen, Analyst, Raymond James: Good morning, Steve. Yeah. Good morning, guys. Thanks for the time. Brian, as you look at your current levels of activity that you described sort of in group is progressing in a positive territory, you know, is it too early to call sort of the negative period behind us?
I’m just trying get a sense whether we run the risk of dipping back and forth between positive and negative same store sales here. I know the comps do get easier as the year progresses, but I’m just trying to get a sense for your confidence here and how things have progressed thus far.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah. I mean, one month doesn’t make a trend. But we had seen, as we said, positive momentum coming out of the second quarter and that continuing into the third quarter. Does that is that coupled with the commentary around just some of the easing of the pressures that we’ve been experiencing over the last couple of quarters seems to point to positive. But I still think it’s too early to tell how sustained that is.
Steve Hansen, Analyst, Raymond James: Okay. That’s helpful. And just on a similar sort of tact, the small tuck in on post quarter of eight shops by itself isn’t a big needle mover, but it does seem to signal that you’re more confident in being willing to go after growth at the location side through M and A. It’s you know, how do you feel about that landscape today, you know, relative to the recent pace? And how quickly do you think you’d want to accelerate just given there appears to be some stability showing?
Thanks.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. Well, I think the one thing that we are experiencing is an increase in the number of those types of acquisitions or those types of opportunities coming into the pipeline. But as I said, given the strength of our balance sheet, it puts us in a really good position to be able to take advantage of those. We are and still remain very focused on leveraging larger deals like that to be able to get us an entry point into a market where it actually gives us an established one or two position as we’ve expressed in our five year goal. We continue to look for those smaller tuck ins and then the leveraging our brownfield greenfield strategy to be able to build out density in the existing markets.
I’m actually really pleased with the progress, as we said, coming out of the beginning of this year, we had liked we would have liked to have been in a pipeline build of eight to 10 greenfield locations by the time we got to the end of the year. And as we sit here today and look out four quarters, we now have a fairly robust pipeline that’s aligned to that eight locations. To So I think we’ll continue to be active in that small regional MSO space as well as continue to build out density in the markets that we participate in today.
Steve Hansen, Analyst, Raymond James: Very helpful. Thanks. I’ll jump back to queue.
: Thank
Conference Operator: you. And your next question is from Krista Braxton from CIBC. Your line is now open.
Krista Braxton, Analyst, CIBC: Hi, thanks for taking my question. Maybe just to follow-up on some of the positive trends that you’re starting to see. Is it broad based or are there kind of various pockets where you’re starting to see more of an improvement in same store sales?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, I wouldn’t say that there’s any particular pocket. We have experienced a pretty equal number or pretty equal value of positivity across the market, which does indicate that some of the more positive signs that we’re seeing in the market backdrop are part of the benefit that we’re experiencing.
Krista Braxton, Analyst, CIBC: Okay, great. And then maybe just on the expanding of the Wow! Operating way to your insurance partners. Is that already underway and how long would you expect kind of the rollout of that to take?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, it actually is already underway. We changed the compensation structure of our regional and field leadership at the beginning of the year. And again, we’ve got the focus we’ve got the field really focused on winning with the customers. And as we said in the release, in the prepared remarks, it’s not just good enough to win on Net Promoter Score and total cost of repair and length of rental anymore or cycle time. It’s we have to be cognizant of what it means to be successful with each of the individual clients and be able to have a team of people that are out in the field that are educated on what those metrics are and to win with those particular customers.
And we’ve now aligned their compensation to those metrics as well. And it’s really given us a, from the top to the bottom, a very aligned organization around delivering what we do best, is delivering an exceptional customer experience for both our insurance client and their customers.
Krista Braxton, Analyst, CIBC: Okay, thanks. And if I could just squeeze one more in there, just as you switched over this compensation structure, you been experiencing much pushback from the employees or maybe some increased turnover just as this shift has occurred?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: No. Look, generally speaking, I would say our employee base wants to do what’s right for the customer. You know, it it has been a bit of an education opportunity to make sure that they understand what those metrics are and and how to move the needle. But we have not experienced any increase in in turnover or pushback from the employee base.
Krista Braxton, Analyst, CIBC: Okay, great. Congrats on the quarter. I’ll pass the line.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thank you.
Conference Operator: Thank you. Your next question is from Chris Murray from ATB Capital Markets. Your line is now open.
Chris Murray, Analyst, ATB Capital Markets: Yes. Thanks, folks. Good morning. Maybe turning back to the store growth discussion. When you released the Strat plan, I think the commentary was kind of a mix of the greenfield brownfield and acquisitions.
And at the time, at least you’d said, the goal was maybe 80 to 100 stores a year. I guess the question I’ve got is, now that we’re starting to see maybe look at acquisitions a little bit more, are you still comfortable in that 80 to 100 range and leverage is still a little bit elevated. Just wondering how hard do you think you can press on the balance sheet or if you need to in order to achieve those types of goals?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. Well, I’ll comment on the first piece and then I’ll let Jeff comment on the leverage side. On the acquisition side, we do still believe that again, our objective is to get to 1,400 plus locations in our five year plan. That’s what enables us to get to the $5,000,000,000 of revenue in the next five years and what allows us to essentially our EBITDA. I expect that that level is what’s going to be required.
And I still believe we have the balance sheet to be able to do that. I think as you look back, obviously our Q1 earnings were a little bit depressed. And as we look forward, coming out of this quarter, you’d expect the leverage to continue to get better based on the EBITDA improvements that we’re seeing. So I don’t see that as a constraint for us going forward. And I would expect that level of activity to continue.
The other thing I would comment on is just part of the reason for the Greenfield strategy, as you guys know, it’s a very the greenfield strategy amongst all the other benefits is a capital light strategy as well. It’s a 1,200,000.0 to $1,400,000 investment in the location. And it allows, as we’ve said in the prepared remarks, it allows somebody to take on the development cost and keeps us out of that equation. So I do think that having and I am pleased that we’ve already gotten to a place where we’ve got that kind of run rate trajectory that we were expecting in the pipeline, and I’d expect it to continue. Jeff, I don’t know if you want to comment on the
Jeff Murray, Executive Vice President and Chief Financial Officer, Boyd Group Services Inc.: No, would echo your response on the balance sheet. Not only was Q1 a challenge, but all of 2024 was really a challenge from a same store performance perspective as well as all of the growth that we did in 2023 and 2024. It’s somewhat been delayed in terms of them being able to achieve what their potential is. The maturation and improvement of overall conditions will generate additional cash from operations that will help give us that capacity to continue to grow. As well as the continued success of Project three sixty and the additional incremental cash flows that we expect to come from that.
Chris Murray, Analyst, ATB Capital Markets: Okay, that’s helpful. Thank you. And then maybe turning back to the same store sales number and the conditions that you’re seeing in the marketplace. Again, appreciating it’s early days, you know, we’ve heard kind of mixed ideas in the industry about some sort of recovery. What I guess the question is, what is it that’s starting to give you some confidence that the number is changing?
And maybe this goes, I think Steve asked the question maybe a different way. But is there anything that you’re seeing in terms of demand? Is it inventory building or WIP building? What’s kind of pointing to your thoughts that not only you’re seeing kind of a in your words, think it was a moderate increase in same store, but that could be sustainable?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, I mean, well, we’ve
Derek Lessard, Analyst, TD Cowen: pointed
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: to for over a year now, we’ve pointed to some very specific things that were happening in the macro backdrop that have had negative impacts One had been the used car pricing, which has a knock on effect to total loss rates. As used car prices go down, total loss rates have a tendency to come up. As used car prices go up, total loss rates have a tendency to go down. So in the quarter or in the month or in the quarter we saw used car prices up 2.8%.
That’s actually a bit of a call it an inflection point for used car pricing. You would expect as tariffs start to more negatively impact use or new car pricing, you’d expect that to kind of continue to move up. So I think that’s one piece of it. The other piece is, you know, as we sat here a year ago and auto insurance premium inflation was sitting at 18.6%. As we sit here today, it’s sitting at 5%.
And many carriers, you know, there’s been some recent research done around carriers that are actually putting premium decreases into the marketplace just because of the high levels of profitability and the high levels of or the low loss rates they’re experiencing. So I think that is also starting to ease its way into the macro backdrop. People are getting, we’ve said for a while that it takes time for the consumer base to work these premium increases into their kind of daily budgeting. And as that happens and as we start to lap that year over year, people start to they better position themselves to spend money on repairs when needed. So I do think that we’re starting to see a little bit of the macro backdrop help us in terms of just the claims environment in general.
So I think that is a piece of it. And we still have not, as you look at the total cost of a repair, we’ve still not seen that recover to the levels that it has been historically. And I think that still remains, at least as it’s reported by CCC, that still remains an opportunity for us to continue to experience more growth.
Chris Murray, Analyst, ATB Capital Markets: Okay, that’s helpful. And if I can squeeze a quick kind of modeling one in. I know I’ve been asked the question a couple of times. Is there any way you can put some numbers around your expectation on that same store number at least at this point in terms of like kind of a numeric range as opposed to just modest?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: I’ll let Jeff answer that.
Jeff Murray, Executive Vice President and Chief Financial Officer, Boyd Group Services Inc.: Well I think I think we wanted to signal certainly that it’s what we’ve seen thus far in the quarter is no longer negative, moved to any other direction. I think the way to think about it is that as the sort of headwinds that we faced coming into this, this negative backdrop was sort of gradual, so will the other direction. I think maybe that’s probably as much as I’m prepared to guide right now in terms of what that would mean. But I think if you look even if you look at some of our history in terms of how we’ve talked about our results to date in other reports over the years, you’ll probably be able to get a good range of what modest means.
Chris Murray, Analyst, ATB Capital Markets: Alright. Sounds great. Okay. Thanks folks.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thanks.
Conference Operator: Thank you. Your next question is from Mark Jordan from Goldman Sachs. Your line is now open.
Mark Jordan, Analyst, Goldman Sachs: Hi. Thank you very much for taking my question. You talk a little bit about the new Augment to go to market strategy and maybe how site selection now might differ from your prior approach? Then this might have any change to your outlook for either unit economics or prospective returns for startups?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. So, we’ve taken a market we’ve taken a bit of a market based approach to our development. What that entails is looking at a lot of different factors in terms of where we want to put new units. Those factors are obviously modeled out and it allows us then see where do our insurance clients need, one, where do our insurance clients need new locations, what’s the competitive density of the marketplace, what’s the car park in the marketplace, What are our relationships with the carrier make up in that marketplace? Amongst a bunch of other different factors.
And that allows us to essentially put a dot on a map. And that dot on the map is then filled with, you know, we would go out to the marketplace. The fastest path to fill in that space is to go look for an existing repair facility that’s in that marketplace and go buy that, you know, go acquire that location. If that’s not available, then we would move to the next step, which is to look for an existing building that’s out there that we might be able to convert to a body shop. And then the third phase would be to put a Greenfield location in that marketplace.
It’s just allowed us to get very specific about building out the density and filling in the white space in our markets to really build towards that one to two position in the marketplaces that we’re in. So it’s a very we leverage CBSAs, which is kind of broader than a market. But, there’s I think there’s three eleven CBSAs in The U. S. So we’re looking at it in that type of a construct.
It’s just allowed us to get very purposeful with our spend. To your point, it hedges our ability to be successful in those locations. Has it sped up the ramp time of these locations, probably still too early to tell. We’re in the very early innings of doing this. We started really meaningfully doing it at the beginning of the year.
But I would expect over time that we’ll have a better answer to that question. Inherently, you would expect it to speed up those ramp times, but we have not experienced enough activity to be able to tell that yet.
Mark Jordan, Analyst, Goldman Sachs: Okay, perfect. Thank you very much. And then just one quick follow-up on that. I think last quarter you’d expected eight start ups for the second quarter, seeing only four in the quarter. But the outlook for the second half at 16 start ups isn’t changed.
So is that were four locations now being pushed into early twenty twenty six or are these out of the pipeline?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, no, there’s nothing out of the pipeline. Think we continue to build, we continue to leverage the methodology I just said to build out the Greenfield strategy. We’ve got plenty of other opportunities identified. From time to time things will shift from one quarter to the next. But as we get to a place where the process is more mature and you’re starting to see that as we get into Q3, Q4, Q1 and Q2, we’ll get to a place where the predictability of that eight to 10 is far more predictable.
Mark Jordan, Analyst, Goldman Sachs: Perfect. Thank you very much.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yep. Thank you.
Conference Operator: Thank you. Your next question is from Sabahat Khan from RBC. Your line is now open.
Sabahat Khan, Analyst, RBC: Great. Hey, thanks and good morning. A bunch of the other questions sort of focused in on sort of the industry drivers around the inflection and positive same store sales. So I hoping to get a bit of an understanding of the industry overall trends are still sort of down year over year on repairable claims. Just curious on the initiatives you’re implementing to perhaps capture share above that industry level to drive this positive inflection.
Just you detailed a lot of the cost saving stuff, but curious whether it’s productivity or other top line initiatives that you’re working on that are helping to maybe capture share, which is driving sort of this inflection here? Thanks very much.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, I think as we said in the prepared remarks, the largest reason for outperformance to the market is driven by our performance with our insurance company clients. This alignment of our field leadership with customers’ KPIs, I think has really allowed us to put a very focused initiative around just how do we improve based on where our outside of the three main areas which we do very well in, how do we make sure that we’re, you know, what we call majoring in the minors, making sure that we’ve got all the finer points that our insurance carrier clients are expecting us to deliver on. And I think that has put us in a position where we’ve seen good improvements in the relationships that we have with our insurance clients. And that’s obviously what’s enabled us to continue to see more volume. Outside of that, to your point, other piece of that is making sure that we have the capacity in the stores to take care of the volume that’s coming in.
So we do remain focused continuing to hire technicians, continuing to develop technicians through our technician development program, as well as focusing on productivity of our existing workforce to make sure that we’ve got the capacity to take on the volume that’s coming in.
Sabahat Khan, Analyst, RBC: Great. And then just I guess, pretty volatile inflation type backdrop and maybe just talk about discussions with insurance partners on how to maybe address that. I think obviously your parts cost is a bit of a pass through, but just give us a perspective on how you’re managing through this tariff and inflation environment and the discussions with your insurance partners? Thanks very much.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. Look, I mean, to date, we have not seen, and I think we said this in the prepared remarks as well, we have not seen significant impacts from tariffs. I don’t know that over time that won’t change, but you would expect some sort of as the clarity around tariffs becomes more real, I think we may see some version of that starting to creep into the system. But to date, we’ve not seen any meaningful tariff impact to the cost structure. As I said earlier, I mean, what we’re also not seeing is an average cost of a repair move up in the same fashion it had historically.
So I think insurance carriers, the conversations with carriers right now around tariffs are, you know, it will likely have some impact, I think still early days to be seen around how much impact, you know, it ultimately does have.
Sabahat Khan, Analyst, RBC: Great, thanks very much.
: Yep, thank you.
Conference Operator: Thank you. Your next question is from Derek Lessard from TD Cowen. Your line is now open.
Derek Lessard, Analyst, TD Cowen: Yeah, good morning, everybody. Most of
: my questions have been asked, but maybe I
Derek Lessard, Analyst, TD Cowen: just want to hit on M and A angle another time, obviously you’ve seen the acquisition opportunities pick up, so I just want to ask you guys what’s changed in the market, is it valuation, is it tariffs, is it just a tough environment the smaller
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: players? Yeah, think what you said last is probably the most impactful. I mean, we’ve said historically, we’ve said previously, some of the suppliers, some of our suppliers that supply the balance of the industry would indicate that mid sized, some of these smaller MSOs and some of the single shop operators are double digits in many cases. I think they’re looking at the sustainability of that against the backdrop of having to make investments to keep up with the changing car park. And it’s created a bit of an inflection point for some of the MSO operators that are out there that puts them in the market to potentially be looking to sell.
I wouldn’t say it’s necessarily driven by their expectations on valuation. I would say that it’s probably more driven by just their view of their relative position in the market going forward and the sustained kind of claim declines that we’ve seen for the last, frankly, last couple of years at this point, that’s got them just exploring opportunities on the outside.
Derek Lessard, Analyst, TD Cowen: Great color, Brian. And maybe just one last one for me, just in terms of the OpEx and the impact from the investment in facility maintenance costs. Just wondering if one, I guess you could, I guess, quantify the magnitude. And two, you did talk about pent up demand for deferred works. I’m just wondering if you have any color there.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, I won’t comment on the exact hour amount. I will say that there was as we were going through a period of softer demand, is easier for us to get in shops and do some of that work. So there was some deferred work that’s out there that we are starting to work through. So I don’t think that that’s all very manageable for us. So as we’ve got time to go in and do things, we’ll go in and do things.
If the demand environment picks up in a pace that keeps us from focusing there, we’ll focus our attention on getting cars through the shops.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.0: Thanks, gentlemen. That’s all for me.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. Thank you.
Conference Operator: Thank you. Your next question is from Gary Ho from Desjardins Capital Markets. Your line is now open.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Hi, Gary.
: Thanks. Thanks. Good morning, guys. Brian, just want to go back to the discussion on insurance partners. Maybe of the top four large insurance clients that you have relationships with, have your business that you do with them changed over the last call it twenty four months or so, or relatively unchanged.
I have seen kind of one of your peers doing more work with one particular insurance clients. Just wanted to hear your thoughts.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, mean, unfortunately we don’t comment on one, the makeup or two, the performance with individual insurance clients. I would say that our focus is broadly doing what’s right for every one of our clients so that we can continue to deepen the relationships we have with everyone. As you’re articulating, there are clients out there that are growing more rapidly in the marketplace, there are ones that that share is coming from. And obviously our attentions are focused our attentions are focused to all. The reality is every store has different insurance client makeup.
And when you’ve got a thousand stores, quite frankly, need to be in a position where all of them, where our store associates know how to make sure that they’re delivering on that individual insurance client’s expectations. And that is what we’re really focused on right now.
: Okay, great. And then maybe just going back to that eight shop in the so acquisition that you completed post quarter. I’m assuming you can’t disclose the multiples that you paid, but any color on how kind of compared to the assured deal that you did a couple of years ago and what’s the ROIC kind of expectations as well. So it sounds like you’re doing, you’re seeing. Smaller MSOs pop up on the radar, maybe comments on the dynamics and are they more impacted than you guys or have kind of been less active in the space more recently?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, what I would you’re right. We won’t comment on the multiple. But what I would more point to is what the market based strategies that the market based planning activity has allowed us to do is to take an acquisition like the eight store deal that we’ve done and then build around it in a way that we blend the market to a return that’s acceptable for us. So we’ve talked about over a long stretch of time against our metric of ROIC that we expect that to be in the north of 20%. So what we’re doing is we build out a marketplace as we’re looking at the other densification opportunities that are out there and how do they then blend the average return on invested capital in a particular market up to the levels that we expect.
So it is I think that, again, the market based strategies that we’re deploying are allowing us to get very purposeful with our capital in any given market. This happens to be a market that this prior acquisition and another two store acquisition that was done in the same market, we had one store in Virginia. As we now continue to build that market out, you’ll see us leveraging greenfield and single shop acquisitions to really tuck and go after that second position in the marketplace, which will allow us in the long run to get the returns that we expect.
: Okay, that makes sense. And then maybe just a quick one, Jeff. Mentioned the strategy change in terms of construction or fund how you guys fund the greenfield brownfield build out. Can you maybe elaborate on the financial and cash flow impact as we kind of model these numbers out?
Jeff Murray, Executive Vice President and Chief Financial Officer, Boyd Group Services Inc.: Yeah, think you’ve seen an elevated really volatility to some degree in the acquisition and development line of the cash flow as we’ve been investing in facilities that have not yet been announced or opened. I think that was creating some noise in that line of the cash flow. Then you would occasionally see us do a sale leaseback, which would show up on a separate line in the cash flow. And so you’d have to kind of take that into account, but the timing isn’t consistent on a quarterly basis. So it was creating you know I think volatility.
So what’s going to happen is it’s going to take it’s going to just basically take that volatility and noise out of the numbers. So going forward, once we get this plan fully rolled out, you’re not going to see us doing as many sale leasebacks. And also as a consequence, you’re not going to see quite as high an acquisition development cash flow line item as well. So it should overall more mimic the way we describe the plan to grow through single store acquisitions and brownfield development and just take that volatility out.
: Okay, great. Okay, thanks for that. Those are my questions.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thank you.
Conference Operator: Thank you. Your next question is from Daryl Young from Stifel. Your line is now open.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: Hey, good morning, Just wanted to keep talking about acquisition pipelines and I guess specifically around synergies. So historically in pre pandemic period, Boyd sort of deemphasized the potential synergies from MSO acquisitions just given they were already hooked up to DRPs and they were getting supplier discounts. But has that changed as you’ve scaled? Are there more synergies today than there might have been historically if you were to opportunistically acquire some larger MSOs?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: I wouldn’t say meaningfully. I think we still find even with MSOs of this size, we still have pockets of revenue synergy. Our biggest opportunity that we’re bringing to these is results on commercial synergies much more so than cost synergies. As we’ve said in the investor presentation over a long stretch of time, can take a much a single shop acquisition and add four seventy basis points of improvement versus the first year of its performance. For these, to your point, it’s much more focused on how do we just drive the top line up in those locations, leverage the relationships that we have to add incremental clients to their makeup and really drive the growth of the business that way.
So I would say it’s still primarily focused on revenue versus cost when we do a deal like this. And again, we don’t have take what we just did in Virginia. We don’t have we didn’t have infrastructure in Virginia. We can obviously leverage a region vice president and division vice president to be able to manage that. But we had a market manager that’s going to manage those locations.
That’s where the density really matters. When we’re building density in a marketplace, there tends to be a lot more synergies because we’ve got a lot more infrastructure. When we’re entering a market like this, you know, it tends to be a little bit less cost synergy and frankly a lot more revenue synergy.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: Got it. Okay, helpful. And then one other, just as we look at Q3, historically it’s been a seasonally weak quarter with vacations. When you look at your commentary on same store sales, does that factor in sort of peak vacation period? Or is that not an issue just given we’re coming off a lower activity level base?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. I mean, interestingly, I think in The U. S. Market, the vacation period probably tends to be more July, which as we said, we saw modest same store sales growth in July. The other thing seasonally that happens in the third quarter for us is a little bit of fall off in the glass business.
That type of fall off is still going to happen. But I don’t have a tremendous amount of concern that we’re going to see something different, you know, with the the vacation period, which, again, I think in The US we’ve kind of lapped and or, you know, and, you know, in Canada, you know, tends to be August tends to be a bigger month for vacations. But I I I don’t have any concerns about that going forward.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: Okay. That’s great. Congrats on the quarter.
: I’ll get
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: back in the queue.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Awesome. Thank you.
Conference Operator: Thank you. Your next question is from Zachary Evershed from National Bank Financial. Your line is now open.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.2: Good morning, everyone. Congrats on the quarter.
: Thank you.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.2: Beyond Net Promoter Score cycle times and average cost, is there a distinct lack of overlap in the specific performance metrics between insurance partners?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: There are different focal points for the individual carriers. So yeah, would say that those three are the commons. Carriers But are focused on different things. Again, our team needs to be able to understand what those things are and they need to be able to understand how to influence them and ultimately how to deliver an exceptional experience. So is there is enough variation that it does put us in a position where we’ve got an education opportunity with the field and or had an education opportunity with the field to make sure they understood what matters most beyond those three to the insurance clients.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.2: Gotcha. Thanks. And when the strategic plan was unveiled, you did make a point to say that it was not reliant on a rebounding claim volumes and didn’t rely on MSO acquisitions. So now that we are seeing green shoots of positive same store sales growth and your first MSO acquisition in a number of years, is it fair to say that potential upside to the plan does exist?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. I mean, what I would say is what we said on MSOs was large MSOs. I wouldn’t necessarily classify an eight store deal as a large MSO. We don’t expect we would have expected certainly a rebound in the claims environment versus where it had been in the last couple of quarters. We don’t expect claims to go positive in order for us to deliver on the plan that we have.
Look, I think there’s some green shoots out there that do point to positive, whether or not declaring victory this early in the game is I think it’s probably still too early for us to tell. We’ve always put pluses on the end of our five year plan objectives for a reason. 1,400 plus, 14% plus, 5,000,000,000 plus. And so we do believe that there’s opportunity to do better than that. Whether or not this is the time to declare victory or not, I would probably say not yet.
: Totally. Happy
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: with the results we’ve got, but again, early innings.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.2: Understood. And then last one for me. Any thoughts on how an IPO of a large competitor, giving them access to public equity markets might influence industry dynamics?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, look, I actually think we’re generally optimistic about what the knock on effect our business associated with that will be. I think we stack up pretty well other than just pure size. We stack up pretty well against the one that obviously is filed to go public. So generally speaking, I would believe that could potentially be a positive for us.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.2: Thank you very much. I’ll leave it there.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Thank you.
Conference Operator: Thank you. And your next question is from Tristan Thomas Martin from BMO Capital Markets. Your line is now open.
: Hey, good morning.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: How did your repair claims volumes compare to your average ticket in the quarter? And then how are you kind of thinking about that moving forward?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: I won’t comment specifically on our because we don’t comment specifically on our claims volume versus our average ticket growth. But I will tell you that in the industry, average ticket the cost of the average ticket growth continues to be depressed versus where it has been. You know, growth algorithm for our business has historically a 2% decline in claims driven by the adoption of ADAS, partially offset by 1% increase in claims driven by the improvement in miles driven and the number of cars on the road, and then all of that offset by a normal kind of 4% to 5% average growth in ticket, which leads the industry to a 3% to 4% growth. We have not seen right now, we’re seeing that what we would have expected to be 4% to 5% more looking like 1% to 2%. And that puts incremental pressure on the claims experience to actually grow.
So I’ll let you do the if we’re experiencing modest growth in the early days of the quarter, you can probably do a little bit of math around what that might mean between claims and average cost of repair.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: Got it. And then just kind of anecdotally, I think you kind of talked on deferred repairs a little bit. Are you seeing any consumers maybe finally come back to maybe get a repair that they’ve put off actually repaired?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah, don’t know that I would say that there’s this notion of deferred repairs. I think when people make the decision that they’re either going to file a claim and not do the repair, which is a cash out, I don’t think that they make the determination later on that they’re going to come back and do it. So I don’t know that I see that there’s this pent up demand so much as what demand will do over time is hopefully return to just more normalized levels. So I don’t know that I would say that what we’re experiencing right now has anything to do with deferred repairs as much as it does people that are now getting into accidents are more likely to actually file a claim just based on their, you know, the consumer sentiment that’s out there and then some of the other factors that we talked about earlier.
: Makes sense. Thank you.
Chris Murray, Analyst, ATB Capital Markets: Thank
Conference Operator: you. And your next question is from Razi Hassan from Paradigm Capital. Your line is now open.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.0: Good morning. Thanks for taking my question. Just quickly on internalizing the scanning and calibration offering and how difficult it is to implement. Do you still think it takes you two to three years to get to that 80% target that you guys mentioned earlier, or does that maybe come sooner?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. I mean, we’re going to stick with the commitment that we made. I mean, obviously, we reported that we’re just south of 70% as we sit here today. So there’s still a little bit room to grow. The other factor that plays into there is then keeping up with the growth in ADAS adoption that we’re seeing coming through the stores.
So it’s not just both the numerator and the denominator are moving. So we have to keep up with one, the changing car park and then two, get ourselves to a position where we’ve got coverage in all of our markets. So we’ll stick with the timeframe that we’ve outlined thus far. Obviously, we’re extremely pleased with the progress that we’ve made on our scanning and calibration business. The leader that runs that business for us and the team has done a phenomenal job and we’re very pleased with where we’re at.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.0: Thanks. And maybe just lastly, just on gross margin, 46.8%, how sustainable is that in terms of our modeling? Is that a new run rate? Any thoughts there?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: I’ll let Jeff comment on that.
Jeff Murray, Executive Vice President and Chief Financial Officer, Boyd Group Services Inc.: Yeah. I think over the last little while, especially with the slowdown in volumes, we’ve been able to certainly focus much more on margin enhancement opportunities, trying to have more repair versus replace, focusing on client metrics to reduce performance credits. There’s a lot of things that I would say are currently I would depict as favorable. And I would say generally we would see offsets that happen. And so I think that everything that’s going on is more or less sustainable, but it would be probably too optimistic to suggest that we won’t face any headwinds in any of the drivers related to gross margin going forward.
So I would suggest looking back kind of at our historical band to understand how can it sort of fluctuate depending on time of the year and some of the other factors to come up with a model estimate.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.0: Appreciate it. Thanks for the time.
Steve Hansen, Analyst, Raymond James: Thank you.
Conference Operator: Thank you. Your next question is from Bret Jordan from Jefferies. Your line is now open.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: To follow-up on the recent trend of improvement. Is it, in your opinion, more tied to your insurance partners and their relative success in the market? Or are you seeing the recent trend across the entire collision ecosystem improving?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: I wouldn’t necessarily say it’s trends based on the performance of our clients themselves. I mean, meaning that they’re experiencing growth in their policies in force. I don’t know that it’s necessarily tied to that. I think our performance with them is putting us in a position where we’re shining a more positive light on our business. And then, again, a little bit of macro backdrop assistance is probably helping as well.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.1: Great. Thank you.
Derek Lessard, Analyst, TD Cowen: Yep.
Conference Operator: Thank you. And your next question is from Steve Hansen from Raymond James. Your line is now open.
Steve Hansen, Analyst, Raymond James: Yeah. Thanks. Just a quick follow-up. I just wanted to ask about the cadence of the progress on the staffing model progress. Is there a way to think about how much of that was done intra quarter by the end of quarter?
How much needs to still be done through the back half of this year? Just trying to understand how much ultimately was realized in savings in Q2 specifically and how much more to expect? Thanks.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yes. I would tell you, I mean, we implemented that staffing model and I’ll remember the date because it’s a these are tough things to do and they negatively affect people’s lives. We take these things very seriously. April 4 was the date that we implemented that plan. So I can tell you that you saw a good chunk of the savings associated with that in
Chris Murray, Analyst, ATB Capital Markets: the
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: quarter. And that’s considered that one to be, you know, other than the maintenance of making sure that we stay, you know, within the bands at this point. You know, the big activity associated with that, the $30,000,000 that we articulated was implemented all at once.
Steve Hansen, Analyst, Raymond James: That’s great. And just to follow-up on to that, as you move into this phase two and sort of the indirect model and procurement savings, I know you said a ratable move through the tail end of ’26 to get to the target on the 40. But is there how much visibility do you have on that? Like, is it pretty is it fairly visible at this point as you enter in some of the discussions on procurement? Or are you how confident are you in getting there?
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: Yeah. I mean, appreciate that there’s there’s just a lot of activity around it. So we’ve got really good visibility into the activity around it. The timing is what becomes a little bit more elusive. The RTO process, the results delivery office that we are operating to deliver on a lot of these initiatives.
It’s led by Kim Marin, who’s our actual who’s actually our CHRO, but is doing a phenomenal job with that activity. She’s put us in a really good position to be able to continue to have good visibility to where those savings are coming from and then all of the different work streams to deliver it. So we’ve got great visibility and as we continue to manifest the savings coming out of that, I think we’ll get, you know, we will continue to refine the way we describe it. Just easier for now as we’re in the early days to make sure that you guys can model it in a more radical way.
Steve Hansen, Analyst, Raymond James: Very helpful. Thank you.
Conference Operator: Thank you. There are no further questions at this time. I will now hand the call back over to Mr. Brian Kaner for the closing remarks.
Brian Kaner, President and Chief Executive Officer, Boyd Group Services Inc.: All right. Thank you, operator, and thank you all once again for joining us for today’s call. We look forward to reporting our third quarter results in November. Thanks again, and have a very wonderful day. Thank you.
Conference Operator: Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may all disconnect your lines.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.