Business
Second Cup Royalty Income Fund announces 2007 third quarter financial results
Second Cup Royalty Income Fund announces 2007 third quarter financial results.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, Nov. 1 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") reported financial results for the third quarter ended September 30,\n2007. The Fund's units are traded on the Toronto Stock Exchange under the\nsymbol "SCU.UN". All amounts in this news release are presented in thousands\nof Canadian dollars, unless otherwise indicated.\n\n\nThird Quarter Results\n\n\nSame cafe sales growth of cafes included in the Royalty Pool was 1.2% for\nthe quarter, representing the eleventh consecutive quarter of sales growth\nsince the inception of the Fund. System sales were $47,202 in the quarter, as\ncompared to $46,343 in the third quarter of 2006, an increase of 1.9%. For the\nnine months ended September 30, 2007, system sales were $141,348 compared to\n$135,528 for the nine months ended September 30, 2006, an increase of 4.3%,\nprimarily due to the same cafe sales growth of 3.8% achieved year-to-date.\n\n\n"Same cafe sales in the third quarter were particularly challenging given\nthe comparably strong results from the third quarter of 2006, and the fact\nthat we were modernizing significantly more cafes this year compared to last.\nIn the third quarter alone, 17 cafes were modernized which negatively impacted\nsame cafe sales by approximately 1.0% due to their temporary closure while\nunder renovation. To date, we have renovated 30 cafes compared to only 11 in\ntotal in the prior year, and expect to renovate approximately 10 more cafes by\nyear end," commented Bruce Elliot, President of The Second Cup Ltd. ("Second\nCup"). "We recently began rolling out our new grilled sandwich program across\nour Montreal and Toronto markets, and have expanded our sandwich program in\nAlberta, which we believe will positively impact sales for the balance of\nyear. We are also looking forward to another successful holiday program which\nwill commence in November."\n\n\nThe Fund reported net earnings of $2,571 or $0.2648 per unit for the\nthird quarter, compared to net earnings of $2,627, or $0.2726 per unit in\n2006. Earnings were impacted in the quarter by additional general and\nadministrative expenses, primarily due to additional legal and advisory costs\nincurred by the Fund. Excluding the reorganization costs and the impact of the\nnon-cash future income tax adjustments recorde...