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Second Cup Royalty Income Fund Announces 2008 Fourth Quarter Same Cafe Sales and Annual Adjustment to Royalty Pool
MISSISSAUGA, ON, Jan. 15 /CNW/ - Second Cup Royalty Income Fund (the "Fund") and The Second Cup L...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, Jan. 15 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") and The Second Cup Ltd. ("Second Cup") announced today their unaudited\nsame cafe sales results for the fourth quarter and the annual adjustment to\nthe number of Second Cup cafes in the royalty pool (the "Royalty Pool"). The\nsales of Second Cup cafes in the royalty pool is the basis on which the Fund's\nsubsidiary, Second Cup Trade-Marks Limited Partnership ("MarksLP") receives\nroyalty payments from Second Cup. The Fund expects to release its audited\nannual financial results on or before March 9, 2009.\n\n\nUnaudited Same Cafe Sales Growth\n\n\nSame cafe sales growth for cafes in the Royalty Pool for the fourth\nquarter and the year ended December 31, 2008 is expected to be lower by 1.4%\nand higher by 0.2% respectively.\n\n\n"In line with reported lower retail spending throughout Canada, Second\nCup experienced a relatively soft holiday season to deliver a -1.4% in same\ncafe sales for the quarter and +0.2% for the full year. I would like to thank\nour franchise partners for their passion and commitment to delivering a great\nguest experience every time. We are confident in Second Cup's value\nproposition and will continue to reinforce our core fundamentals of superior\nquality, inviting and relaxing atmosphere with caring individual owners\ncommitted to growing and maintaining our guest base during these economic\ntimes," commented Stacey Mowbray, President of Second Cup.\n\n\nRoyalty Pool Adjustment\n\n\nThe Royalty Pool is adjusted on January 1 of each year to include sales\nfrom new cafes that have been open for at least 60 days prior to November 1 of\nthe preceding year, after deducting sales of any Second Cup cafes that have\nclosed since the previous adjustment date. The Fund (through MarksLP) pays\nSecond Cup for the additional royalty stream, if any, from the sales of the\nnew cafes vended in to the Royalty Pool, based upon a formula set out in the\nlicence and royalty agreement between Second Cup and MarksLP (the\n"Agreement"). The formula, designed to be accretive, is based on the sales\nfrom the new cafes and the yield of the Fund's units. The accretion is\nachieved by discounting the payment by 7.5%. The payment to Second Cup may be\nin the form of cash or additional ...