Business
Second Cup Royalty Income Fund announces 2007 results and distribution increase
MISSISSAUGA, ON, March 12 /CNW/ - Second Cup Royalty Income Fund (the "Fund") reported today fina...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, March 12 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") reported today financial results for the fourth quarter and year ended\nDecember 31, 2007, and other matters as discussed below. The Fund's units are\ntraded on the Toronto Stock Exchange under the symbol "SCU.UN". All amounts in\nthis news release are presented in thousands of Canadian dollars, unless\notherwise indicated.\n\n\nHighlights\n\n - A 3.3% increase in monthly distributions to 9.4 cents per unit\n from 9.1 cents per unit, on an annualized basis this represents an\n increase in the distribution to $1.1280 per unit from\n $1.0920 per unit\n - Same Cafe Sales growth of 3.0% for the year, 0.7% in the\n fourth quarter\n - A one-time recovery of $450 by a subsidiary of the Fund pursuant\n to reassessments received on prior year income tax returns as\n discussed below\n - A decrease in current income tax expense from $318 in 2006 to\n $56 for 2007, as a result of the reorganization of the Fund's\n structure on April 2, 2007\n\n\n"The deceleration in the rate of growth in same Cafe sales during the\nfourth quarter while disappointing, is reflective of a similar trend in the\nindustry and the sector in general for the period. The principal contributing\nfactors to this were strong sales in the comparable quarter from a year ago; a\nmarginal slow down in the Canadian economy; and the inclement weather\nexperienced during the month of December which is our busiest month of the\nyear," commented Gabriel Tsampalieros, Chairman and Chief Executive Officer of\nThe Second Cup Ltd. ("Second Cup"), and the President and Chief Executive\nOfficer of Second Cup GP Inc. ("GP Inc."). "That said, given the various sales\ngrowth initiatives underway and assuming a stable economy for the balance of\nthis year, we are confident that our track record of 17 consecutive quarters\nof positive same cafe sales growth will continue. As always, I wish to thank\nour franchise partners and colleagues for their significant role in attaining\nand continuing this achievement," added Mr. Tsampalieros.\n\n\nDistribution Increase Announcement\n\n\nThe Fund is pleased to announce that its Board of Trustees has approved a\n3.3% increase to the monthly unitholder distribution effective for the\nFebruary 2008 distribut...