Business
Second Cup Royalty Income Fund announces 2007 second quarter financial results
Second Cup Royalty Income Fund announces 2007 second quarter financial results.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, July 25 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") reported financial results for the second quarter ended June 30, 2007.\nThe Fund's units are traded on the Toronto Stock Exchange under the symbol\n"SCU.UN". All amounts in this news release are presented in thousands of\nCanadian dollars, unless otherwise indicated.\n\n\nHighlights\n\n - Same cafe sales growth of 4.4% for the quarter and 5.2% year-to-\n date.\n - Distributable cash per unit, excluding reorganization costs and\n changes in non-cash working capital, increased 6.4% on a per unit\n basis compared to the second quarter of 2006.\n - Basic earnings per unit, adjusted to exclude reorganization costs\n and the impact of the reorganization and new tax legislation on non-\n cash future income tax balances was $0.2787 for the quarter,\n compared to $0.2644 for the comparable period a year ago,\n representing a 5.4% increase on a per unit basis.\n - Completion of previously announced reorganization of the Fund's\n structure.\n\n\n"We continue to be pleased with the same cafe sales performance of cafes\nin the Royalty Pool of 5.2% on a year to date basis. The achievement of 4.4%\nin the second quarter was particularly challenging given that we were lapping\nour menu board change, which moved many of our guests up one beverage size,\nand increases to the prices of our blender beverage line up, both of which\noccurred in mid May of last year," commented Bruce Elliot, President of The\nSecond Cup Ltd. ("Second Cup"). "We expect to modernize between 22 and 27\ncafes in the third and fourth quarter which will put some pressure on same\ncafe sales growth due to the temporary closure of these cafes for the period\nof the renovation. However, we continue to expect to achieve our previously\nstated range of 3 to 5% for the year on the strength of our summer, fall, and\nholiday programs."\n\n\nReorganization of the Fund\n\n\nAs previously announced, on April 2, 2007, the Unitholder-approved\nreorganization of the structure of the Fund effectively replaced its\nsubsidiary corporations, including Second Cup Trade-Marks Inc. ("MarksCo"),\nwith a newly formed trust (Second Cup GP Trust) and non-taxable limited\npartnership (Second Cup Trade-Marks Limited Partnership, or "MarksLP"). As ...