Q4 2020 Boyd Group Services Inc Earnings Call
Thank you operator. Good morning everyone and thank you for joining us for today's call on the call with me today are Patty our Executive Vice President and Chief Financial Officer and Brock bulb or executive chair.
We released our
Twenty twenty fourth quarter and urine results for for markets opened today, you can access our news release as well as our complete financial statements and management discussion and Analysis on our website at ww.w. Our news release financial statements and md&a have also been filed on Sedar this morning today's call. We will discuss the finance results for the three month period ended December 31st, 2020 provide a general business update and discuss our long-term growth strategy. We will then open the call for questions.
On January 22nd 2020. We completed the conversion of the boy group income fund to a corporate form reporting as boydgroup Services Inc, effective January one thousand. Well, this was an important change. It does not impact or change the underlying business or operations avoid on January 2nd 2020. I was appointed president and CEO of boydgroup Services Inc and concurrent with this change Rockville Buck moved into the role of the executive chair. We are now over a year into our transition plan and it has been a very well and as planned Rock has provided me with great support which has been incredibly helpful during the challenging times that arose during 2020.
Well, the past year began is expected near the end of the first quarter the COVID-19 pandemic brought uncertain Economic and Business conditions.
The steps our team has taken since the onset of the pandemic have consistently positioned as well during these unprecedented times and our 2020 results reflect the impact of these prudent management of expenses of focus on liquidity and our ability to adjust capacity relative to changes in demand. We posted respectable results in spite of the declines of Revenue caused by COVID-19.
Throughout the year we continue to adjust our business in accordance with the changes in demand for our services first decreasing and then subsequently adding back production of fantasy as demanding a collision repair services Rose as we navigate through this pandemic environment in 2021. Our priorities remain taking care of the health and safety of both our team members of our customers and ensuring that we are prepared for the future that lies ahead.
We continue to focus on health and safety practices such as contact customer drop-off and pick-up enhance vehicle and Facility Cleaning practices, social distancing and wearing a whole personal protective equipment to keep our employees and customers saved. We continue to follow key practices that include deep cleaning of facilities where an employee or potential potential or confirmed case of COVID-19 is identified as well as defined processes for quarantine and testing in situations of potential exposures exposure to help prevent the spread of the virus.
for the
You're ended December 31st, 2023 reported sales of 2.1 billion a decrease of 8.5% over the prior-year driven by same-store sales declines of 15.6% partially offset by contributions from new locations that had not been in operation for the full comparative.
The decrease in the same store sales percentage was impacted by the business slow down caused by the COVID-19 demek that began in mid-march of twenty-twenty same-store sales declines in Canada were significantly higher than same-store sales declines in the US which reflects more significant restrictions as well as the continued slower economic reopening in Canada when compared to the u.s.
Gross margin increased to 46% of sales compared to 45.4% in the comparative.
The gross margin percentage was positively impacted by higher labor margins primarily due to the Canadian emergency wage subsidy program in Canada, which more than offset incremental COVID-19 labor costs and work for workforce management in the US as well as a favorable mix of retail glass sales and normal variability in d r p pricing.
The recognition of Sue's related to direct labor was approximately 7.1 million dollars for the year ended December 31st, 2020 which positively impacted the gross margin percentage and importantly allowed us to retain employees that would have otherwise been temporarily laid off.
Operating expenses decreased 48.2 million when compared to the same period of the prior year primarily due to COVID-19 related cost reductions such as Staffing reductions salary and other compensation adjustments and reductions to other variable expenses operating expenses benefited from the Canada emergency wage subsidy of approximately 9.8 million recorded as an offset to applicable in direct wages. Again, this program allowed the company to retain employees that would have otherwise been laid off.
Adjusted ebitda for the year ended December 31st 2020 was 293.6 Million compared to three hundred nineteen point nine million in the same period of the month or year the twenty six point three million dollar decrease was the result of the business slowdown caused by the COVID-19 pandemic including operating expenses that may not be mitigated in relation to the decline in sales such as property taxes and utility costs.
We reported net earnings a 57.7 million compared to 64.1 million in the same period prior Year's adjusted net earnings per unit decreased from 4.53 to 2.57 in adjusted net earnings per share. These amounts were significantly impacted by the COVID-19 pandemic which resulted in reduced sales rep in addition relatively fixed levels of depreciation and amortization as well as increased Finance costs negatively impacted adjusted veterans and adjusted earnings-per-share in 2020 the equity offering although position as well for the future also had a negative impact on adjusted net earnings per share in 2012.
No.
moving on to our Q4 results
During the quarter we recorded sales of $526 billion a 10.2% decrease when compared to the same period of 2019 our same-store sales excluding a foreign currency exchange decreased by 12.6% in the fourth quarter same-store sales declines in Canada continue to be significantly higher than the same-store sales declines in the US which again reflects the continued slower economic reopening and more significant restrictions in Canada when compared to the u.s.
Gross margin was 45.8% in the fourth quarter of 2020 compared to 45% that was achieved in the same period of 2019 the gross margin percentage has increased as a result of improved labor margins as well as variability and Erp pricing arrangements and the recognition of Sue's related to direct labor, which was approximately a 1.0 million for the 3 months ended December 31st, 2020.
Operating expenses for the fourth quarter of 2020 or 162 point five million or 30.9% of sales compared to 30.7% off the same period of 2019. Well many operating expenses were managed in relation to the decline in sales certain expenses could not be reduced such as property taxes and utility wage which increased as a percentage of sales.
Late in the third quarter as revenues became more stable. We brought back support resources that have been laid off at the onset of the pandemic which increased are expensive relative to the prior quarter of
Adjusted ebitda or even adjusted for fair value adjustments to financial instruments and costs related to Acquisitions and transactions with 78.4 million wage increase of 6.7% over the same period of 2019.
The decrease was primarily due to the Slowdown caused by the COVID-19 pandemic including operating expenses. That could not be mitigated.
In addition adjusted ebitda for the 3 months ended December 31st 2020 benefited from the Sue's in the amount of approximately 2.3 million.
Earnings for the fourth quarter of 2020 was 21 million compared to 14.3 million in the same period of 2019 excluding fair value adjustments and acquisition and transaction costs adjusted net earnings for the fourth quarter of 2020 was 18.9 million four eighty eight cents per share compared to adjusted net earnings off of 23.8 million or $1.19 per unit in the same period of the prior year.
the decrease in
Adjusted and earnings-per-share is primarily attributed to the impact of the COVID-19 pandemic as well as a higher number of shares outstanding as a result of the equity offering in twenty-twenty month.
At the end of the year we had total debt net of cash of 685.6 million compared to $672 million at September 30th, 2028 eight hundred ninety, three point two million at the end of 2019 at the onset of the pandemic. We Face significant uncertainty regarding the extent and duration of the impact of COVID-19 on our business in addition to acting quickly to reduce our expenses. We further address the uncertainty by driving down in our credit facility and raising Equity off to ensure that our balance sheet could withstand the impact of the pandemic and be prepared for growth is condition stabilized month.
Is conditions have stabilized the impact of COVID-19 has become better understood Boyd has made 3 payments of 917907.4 million during the December 31st 2020 to reduce the level of outstanding debt.
Based on the strength of and confidence in our business. We announced an increase to our dividend by 2.2% to 56.4 cents per share on an annualized basis month beginning in the fourth quarter of 2020. This is the 13th consecutive year. We've increased dividends to shareholders.
During 2021 the company expects makes cash Capital expenditures within the range of 1.6 to 1.8% of sales.
This excludes those Capital expenditures related to acquisition and development of new locations the investment and environmental initiatives such as LED lighting and the investment the expansion of while operating way practices through the corporate applications and process Improvement efficiency project.
During 20/20 the company invested approximately 3.5 million dollars in LED lighting in order to reduce energy consumption and enhance the shop work environment continued investment in a few lighting will not only provide environmental and social benefits, but also achieve a creative Returns on invested capital.
Disloyal the company has begun to expand its while operating way practices to corporate business processes to related technology and process efficiency project will result in a couple of $70 invested over the next nine months and will also be expected to streamline various processes as well as generate economic returns after the project is fully implemented.
This initiative began in the third quarter of 2020 and thus far has occurred approximately two million dollars in capital costs.
Thus far we've been able to successfully adjust and manage through the challenging situation that has arisen as a result of the COVID-19 pandemic. Our efforts have continued strong operating cash flow during 20/20 notwithstanding the substantial decline in the revenues caused by COVID-19.
Following the pause on acquisition activity that began in late March we resumed activity in mid August of 2020.
The company added 39 locations through acquisition including one intake Center ten locations opening as the operating as intake centers and five start-up locations for a total of 54 new locations.
The COVID-19 team pandemic continues to impact our business thus far in the first quarter of 2021. Same store sales activity is at a similar level to that achieved in the fourth quarter of 2020 Canada continues to have tighter restrictions and slower economic reopening when compared to the u.s. This has had and continues to have a significant impact on same-store sales activity in Canada.
These declines had been partially offset by the Canada emergency wage subsidy, which has been extended to June of 21 void will continue to make applications under the program as long as eligibility criteria are met however amounts expected to be received and twenty. Twenty-One will be significantly lower than those recorded in 2022 Dodge program changes announced today.
In the sales activity is experienced variability throughout the various States in which we operate variability has been caused by different levels of restrictions by States a significant search and COVID-19 infections and unusual weather events in southern states, which contributed to power outages in, Texas.
Certain operating expenses and Personnel costs along with the continued reduced demand for services will continue to impact the levels of adjusted ebitda. That can be achieved during 1221.
Overall, we are well-positioned to navigate through this challenging environment and we remain committed to our five year growth strategy.
Through which we plan to double the size of our business on a constant currency Revenue basis from 20 21 225 based on 2019 revenues in order to achieve this we will continue to pursue a creative growth through a combination of organic and same-store sales growth as well as adding new locations to our Network and the United States and Canada.
New location growth will continue to include single location Acquisitions as well as Brownfield and Greenfield startups and multi-location Acquisitions addition to reduce volatility from exchange rates effective. January 20-21 is previously announced void will begin reporting results in US Dollars given that almost 90,000 of our revenues come from the US this makes sense as an appropriate currency for reporting purposes.
Despite dealing with the impact of the pandemic. We moved several other important initiatives forward in 2020 that we will build on in the coming years. We increased our focus on ESG welcome and energy-saving LED lighting which reduces energy consumption and improves the work environment.
We implemented updated diversity training and are preparing to establish broader diversity goals for our business. Our board is leading. This is has committed to have at least 30% of our life would be women within the next three years as always operational excellence remains Central to our business model and with continuous improvement in our while operating wave continue to work to drive excellence and repair quality customer satisfaction and repair cycle times to ensure that the continued support of our insurance partners and vehicle owners month. Additionally the company has begun to expand its operating way practices to corporate business processes and initiative that began in the third quarter of 2026 is is expected to stream various processes as well as generate economic returns.
We also announced that L Davis who's been on our board since 2005 and served as our chairman for the past nine years will not seek re-election to our board.
I'd like to thank him for his dedicated service and in particular for his support and guidance to me over the past fifteen months.
In conjunction with Alice planned retirement. The board has nominated David Brown his incoming independent share subject to his re-election at the upcoming General and special meeting additionally Bob SB CEO Parkland Corporation has been nominated and will stand for election to the board. I look forward to working with Dave is incoming independent. Share name is a new member of our board.
In summary and in closing I continue to be incredibly proud of our team who have adjusted to the new environment and positioned us well for the future we've been able to adjust her business to manage through this challenging situation. We continue to believe that there will be many opportunities that come from this crisis both internal and external and we put ourselves in a good position to come out of this crisis as a stronger company. Our priorities remain taken care of the health and safety of our team members and customers as well as preserving our financial flexibility and preparing for the opportunities that lie ahead
With that I would now like to open the call to questions operator.
Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad to withdraw your questions, please press the pound key. Your first question will come from David Bowie, please go ahead your line is open. Brock. How you doing? Good, how are you doing? Very good today here. That's great. I just looking at your life or your your acquisition strategy overall. It seems like you've stepped up the intake in Greenfield strategy overall. So as you look is you're looking out is that could become a larger part of your strategy going forward in terms of building up the intakes and Greenfield. Its it has always been a part of our strategy but we we will increase our offices on Greenfield and Brownfield as a part of the overall mix
Industry anything that came out of the pen.
It's not there's always a silver lining and everything and and there's always an opportunity to kind of, you know, re-evaluate who you are the insights looking at the strategy any learnings that you that you came out of the pandemic beyond the obvious in in terms of your Ford long-term strategy.
I don't really think it's changed our outlook on the long-term strategy. I think we felt very good about our position as we went through the pandemic that we had a a strong balance sheet that I am allowed us to manage the business effectively, but you know without the concerns that a company with a week or balance sheet might have had but it really hasn't adjusted our perspective on the long-term opportunity that we have to continue to consolidate the industry. Okay, and last name from you guys, you know, obviously cheese financing right now, you know, as rates begin to climb could just see more opportunity to evolve in terms of picking up assets either owned or otherwise, obviously your 1 billion is ride powder switching a very very unique position in North America. So anything that you see I'm not in your pipeline that might be heating up. We cannot make any forward-looking statement at David but as you pointed out we do have tremendous Financial flexibility and birth
Yep, being actively pursuing acquisition opportunities. And as you point it out, there are a bunch of people own companies and they do have a finite time frame to harvest their Investments home could be opportunities out there axle. Thanks. I appreciate it.
Your next question comes from Chris Murray from ATV Capital markets, please go ahead and line is open. Thanks. Good morning, Just going back to you. I'm just trying to understand it better. So you talked about same-store sales levels in line with what you're sunk you for so should we should we be expecting that a like on an absolute basis or on a percentage basis? I guess is what I'm trying to make sure I understand. We we were referring to what we've seen thus far in the quarter on a percentage basis rather than $8 business. So so that 12.6% type numbers. I'm just trying to know the queue for it. That's great. And then maybe just quickly back to David's question. Umm on the intake centers and the number that you've been opening is is the strategy around the office is right. Now, is that something that you're just using um part of the as a way to manage COVID-19 and the idea is down the road those convert to actually full shops or is that you know, is it until
To how those intake centers remain as intake centers as you go forward.
Chris you may recall that this was a strategy that had been deployed by assured in Ontario. Yeah, and I had had been executed with good success at driving incremental Revenue off. So I would say our our strategy is really Piggyback in our what we learn from assured when they became part of our company and and I would expect it will you know continue to be one of the month we have to grow our business going forward? Okay, that's fair. And then just one last one for me Pat the you put up some preliminary conversions information for the change to $5 when she leaned be expecting any additional information on the 2020 number to be not take the models within the next two weeks. Okay. That's that's helpful. All right. Thank all my questions. Thanks, Chris. Thanks, Chris.
Question comes from Michael Dumay from Scotiabank, please go ahead your line is open.
Good morning, guys, Michael on the just let me see his store sales declined any way you could break out the Cadence so far in q1, because the end of March life here. You just loaded organic declines were between forty to fifty percent. So that should help use the Comm price or is the reason why we're seeing a similar decline to forge, you know, maybe relating to the storms in February just a little bit of color as to why that's not even
I would say, you know, they're certainly there was some impact from the storms. But if you you know think back to the timing of one cold would head it was really at about this time, maybe slightly earlier when the pandemic was declared. We had pretty good inventory. So our quarter was not terribly impacted by koven. It was really cute to when the month, you know and significant decrease in inbound opportunities translated into large Revenue reductions. I think you to our same-store sales were down a little over 35% and then began covering Q3 and then in the Q4, so I think the we're still faced with the COVID-19 headwinds relative to what had been fairly normal a fairly normal involved at least in terms of work in the shops through pretty close to the end of last quarter of the first quarter last year.
Gotcha. Okay, that makes sense. And then on the operating expenses those were essentially I mean I've telegraphed on the keys recall. Just wondering if you still need to add call us back any dead or if at this point expense for us to generally Trend with with Revenue?
We've we've continued to to bring back resources as needed during Q4 and in q1, but I think that back in the not-too-distant future. We'll have a pretty stable run right on the expense side. Got you. Okay, and then just one last one and beginning of the pandemic. I think you talked about you know, how government programs were supporting Iraq players and just wondering if that was your expectation. It's a 2021 and as it relates to him and I mean has the Bimini ask spread somewhat narrowed between I guess what you guys are looking for and what colors are looking to sell just trying to get a sense for whether you know, there's some pent-up m&a activity in 2021 that we can expect to see.
I I think there's plenty of opportunity out there the we don't really comment on valuation, so I can't really make a statement on that. But we see ample a rep available to us in the marketplace to compete for I think we have we have talked in the market of seeing that there are other private-equity back players out there as well. But but we we feel very good about our opportunity to to meet our five year plan. Perfect. Thanks guys. Thanks, Michael.
Your next question.
Comes from Steve Jansen from Raymond James, please go ahead your line is open a good morning guys. Just a couple of follow-ups on the earlier themes. If I made the first one is, you know, just basically, you know, why not go faster, you know, I'm just curious here. We seen you know a number of what I'll call Super Regional MSO sort of evolved here over the last six to eight months. I've been going at a pretty brisk Pace on m&a past and and you guys have started to accelerate admittedly, but I would still suggest relative to your liquidity profile. It's been relatively slow. So just maybe what's the back you suggest the opportunity is is strong. So why not go faster?
I think that what I've seen over the over the years eve is when businesses have gotten ahead of their capacity to integrate effectively, they end up stumbling and then suspending growth period of time. So I think The Five-Year Plan that we've laid out delivery shareholder value. We know we can execute it effectively if there were opportunities to exchange rate that and to operate effectively we would consider that but but I think we're trying to line up resources to grow at that pace and make sure we do it very well.
Okay, I think it's fair and just another one on you know, this is actually stems back to a couple of quarters back. Now you had mentioned you would evaluate some opportunities in and around the the dealer Channel just curious if that that sort of effort his you know, only did anything significant if you can comment on it where you're at today, if you're still pursuing that I understand there are several hundred shops off within that dealer channel that might you know at some point want to make them make their way out.
Yeah, the dealers today have about 18% of the North American Collision Repair market and some dealers love being in the business and others do not we're certainly interested in in working with a dealer that has a body shop that really doesn't love being in that business, but it would be just one of the elements that we would look at to grow our business going forward.
Okay.
No, next question comes from Maggie MacDougal from stifel, please go ahead your line is open. Thanks. Good morning Peggy running everybody off. So first off. Just wanted to Circle back on it on Sylvania a couple of years from already touched on a bit The increased focus on Greenfield and Brownfield versus m&a. Is there an underlying reason for that in terms of market conditions or perhaps you're looking at sort of a map and seeing em, you know, you'd like a larger facility or one with you were equipment in a specific region, and it's blowing a hole and I'm just guessing so so any color you can give us in terms of dead why that approach today and how we should be thinking about secondly the economics of Greenfield Brownfield versus acquisition.
yeah, I think any time we
Times that we would like to enter a market we would look at the the way that makes the most sense for us to enter the market historically we've entered through a single shot Acquisitions or performs multi shop Acquisitions, and we've occasionally done a green field or Brownfield but it has not been in a an organized intentional manner. We've moved to the point where we have that capability to drive that in house. And when we're looking at new markets will evaluate the best way for us to answer that market and if it's a green field or field operation, we're now very very capable of that you as you might expect a green field or Brownfield opportunity would have a lower investment then acquiring something that has revenue and Goodwill. So the up-front investment is lower. It does take a little longer to build the revenue. So the you know, the returns could come a little bit more money.
Ultimately, we think we would get to a similar place in terms of Revenue. So it should have higher roic characteristics than the two other main Alternatives that we've got it being single shot, then mso's. So it's just I guess in addition to that Maggie there are markets that may be Emerging Markets are markets where there's been a firm amount of growth. It could be attractive to us that there is an a an acquisition alternative to get into and those would be areas where Greenfield our Brownfield maybe are only viable choice.
Maggie just to supplement the typically we underwrite the single shops to 25% pretax, and we expect a better or oh I see on this brownfields in greenfields.
Thanks Pat. That's great. I'm I'm curious is this strategy? I mean, it sounds like you've increased your internal capabilities, but it also seems easy. So the strategy is more doable perhaps in this current employment environment and just give them the the state of the economy. There's likely more human resources and perhaps even physical job opportunities in terms of resources and so on available.
Yeah, there there may be more physical opportunities with if they can seize her up. I'd say that I don't have I don't have an expectation that the labor will be tied again in the in at least in the US market. So I think these are long-term, you know for us to open a green field facility ashore Greenfield would probably be close to a year or a Brownfield unless you know, it could take longer. So we have to look at these with a longer-term perspective and the labor market. Well, that's always something we think about that wouldn't drive are thinking on Greenback Brownfield.
Okay, thank you. Just one more question for me. You've talked to a couple of quarters now about introducing your operating way to your corporate function. Could you provide us with an update in terms of you know, what are you doing with that? Is there some centralization or uh, you know operational efficiency that you expect to gain come back either in terms of processes out ride cost or perhaps it will create some leverage for you within your platform to be able to do more with the same situation. I'll be happy to walk. I'll give an update on that. We are essentially rolling out this cooperating way in our strategic Support Services Finance H or procurement and areas like that. It entails bulb the engineering the processes as well as implementing a technology solution that will help us take the company to the next level and our expectations to get it done by this project before birth.
And will realize a meaningful savings from this exercise.
Thanks Pat. May I speaking with you guys? Hope you have a good day. Thank you.
Your next question comes from Daryl Young from TD Securities, please go ahead your line is open. Good morning. Good morning. So first with the entrance of private equity and and the rise of some of these may be super regionals. Does this change at all of the insurance dynamic in terms of of pricing of allocation of work in those regions, um that we're we're there may be increased competition or any longer-term impacts that you can think of.
I haven't seen any sign of that. They're all I think the you know, we're well-positioned with our insurance clients and our focus is really on making sure that we're meeting or about their expectations. And as we do that, I think it takes care of itself and then the Nationals still have an advantage over the Regionals. Uh, and I would expect that to continue wage. So in most of our markets have a pretty extensive network that we built up but you know, it's it's still competition. But but the our relationship with the insurance carriers would seem to have been impacted by today.
Got you. Okay, and then on the margin front historically, I think he said same-store sales has been one of the the biggest drivers of the historic Thirty to fifty basis points of margin Improvement as we look out your you've been hiding stores obviously in the twenty nineteen stores that got added maybe all that operating leverage wasn't seeing is there anything to change that dynamic or Thursday almost expect two years of of ketchup come 2020 when when same-store sales, we accelerate and and lack 2019 levels.
chip to the margin growth
Yeah, we our expectation is not that will go back to getting more same-store sales growth. And with that we do have the operating a train. So we optimistic about getting those things as business conditions of stabilized.
Perfect. Okay. Thanks very much guys.
Q thanks, Carol to our next question comes from Bret Jordan from Jefferies, please go ahead your line is open Monday to see the cable market share consolidation and I guess you've got the national episode. You've got more Super Regionals when you think about the single shop operators, are they drinking in a celebrating rate just given the increasingly competitive environment and I guess you know the inverse being if they survived the last year does that mean that they're relatively stable one can generally survive into the future?
like I think
2% of the market or very close to it Still Remains single shops. And so well there is, you know, increased activity from private-equity. There's still a pretty large pool of single shops in the marketplace and and many of them many are likely interested in selling at some point. So I think the there probably will be maybe more rapid absorption of some of those single shops. But you also see companies focusing on you know, developing as well such as we're doing so I think the that should help to keep prices rationale for that because we do have alternatives to get into markets, but I do think that there could be some, you know further acceleration as a result of that the regional players come in and with private Equity money. I'm not sure just just because the server last year doesn't mean that going to survive because they got the life support from case act and Recovery Act and things like that so dead.
That that may go away then we have to see how one horrible they are. And the other one is the tax reform the tax reform could change the Dynamics in terms of the capital gains. And that could also change the thinking of the signature of owners. So those are the couple of other factors to keep in mind. Okay, right and the question I guess unfollow rate. It seems like the fourth quarter was just just over 21% of rashes were totaled. Do you see that sort of being a spike that was driven by the pandemic and we may moderate Google rates or is that just a longer-term trend where we see a higher percentage of cars going to salvage versus repair?
There's certainly been an upward Trend that's been pretty steady over the past five years on total loss rates. So I think the piece of it was probably a continuation of that Trend off but there there were other factors and I don't think we'll ever until we get another year or two behind us. I'm not sure we'll know but as has been reported there were more high speed crashes down through the pandemic because of the lack of congestion and Miles travel and so there were higher levels of damage that may well have contributed to the total loss percentage as well. But I think it's too early to know, you know, whether that's the new bar or whether will fall back a little bit and maybe continue it slow upward trend.
Okay, great. Thank you. Just might just for clarity. You're correct. The in terms of the more high-speed crashes, you're referring to the mix as opposed to the absolute number because the market was down. So we're talking about a greater percentage of high speed crashes in the mix of overall crashes. I don't want anyone to interpret it to be that there were more crashes cuz there weren't no.
Thanks. Bye.
Add reminder to ask a question, please. Press star followed by the number one. Your next question will come from Zachary National Bank, please go ahead your line is open.
Morning jokes, good morning. I was hoping you could give us a little more commentary on maybe how long Texas locations are offline due to power outages whether you're seeing any kind of offset from additional collisions due to the severe winter weather and maybe the magnitude of the impact on operation in other Southern States.
We it wasn't material enough for us to disclose separately. But we did have locations that were shut down for multiple days. There was also some water supply disruption suppliers that couldn't get to us or weren't didn't have employees out on the road that the created, you know production shut down or production issues the the storm hit the South weren't isolated to Texas it hit most of the southern states and as many people will appreciate many of the southern states in the office are really not set up well to handle ice and snow on their roads. They don't have the equipment to mitigate it and make the roads passable. So unfortunately for the clinic collision damage when those types of events happen in those environments most people choose not to drive so it really doesn't create the same type of increased demand that we would get in Northern.
Markets where people are comfortable driving in that and the municipalities have the the equipment to clear the roads.
That's helpful. Thanks, and then separately we were talking about miles driven making a comeback but the traffic pattern the concentration in Russia are traffic that drives a pretty big proportion and collisions not quite there yet for your own internal projections when you assume traffic patterns normalize.
We we are really making any I mean, we we met Noodle around with it internally, but we don't disclose our projections on that.
Sharon us and then one last one and the insurers seemed to be directing traffic to larger operators first free seeing an uptick in smaller owner-operators literally cell phone.
I don't know if I'd characterize it as an uptick. But we we have we're confident in our ability to achieve our growth plan based on what we've done in our Pipeline and how we're managing our pipeline.
All right. Thank you. I'll turn it over. Thank you.
Our last question will come from Steve Jansen from Raymond James, please go ahead to line is open.
Yeah, just one quick follow-up guys. I doubt it's an issue as yet, but just noticing that we're seeing some Auto production lines start to cut production on on ship availability is there is any of that impact the repair supply chain at all? She has it yet. I know collisions are down, but just wondering if there's any shortages materials within the system. Thanks.
We
We've had some reports from the field Steve that died that we have repairs that are being delayed by a lack of Parts availability. I'm not sure the chip issue has hit the aftermarket home yet. There are other supply issues that have had some impact at this point. It hasn't been anything that's been overly significant to us off. In fact it it may be greater than what it's been historically but there are generally supply issues that slow down some repairs and and it may take you know a month to get a part 6 weeks to get a part which is unfortunate and you know doesn't make customers very happy but we manage our way through those issues.
Okay. So we have no further questions. I'd like to turn the call back over to pay for closing remarks.
Very good. Thank you operator and thank you all once again for joining our call today, and we look forward to reporting our first quarter results in May. Thanks again, and have a great day. Thanks for your bye-bye.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.