Business
Second Cup Royalty Income Fund announces 2008 results and March distribution
MISSISSAUGA, ON, March 9 /CNW/ - Second Cup Royalty Income Fund (the "Fund") reported today finan...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, March 9 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") reported today financial results for the fourth quarter and year ended\nDecember 31, 2008, 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\nPerformance Highlights\n\n- System sales for 2008 increased by 0.8% to $197,340\n- Same store sales for 2008 grew 0.2% for the year\n- Distributable cash per unit increased to $1.1510 per unit from\n $1.1356\n- After-tax non-cash impairment charge of $20,956 or $2.12 per unit\n- Bank term loan extended to January 2011 at lower effective interest\n rate\n\n\n"Like most of the retail sector, Second Cup experienced a softening of\nsame cafe sales throughout 2008 with the fourth quarter reflective of the\nsharp downturn in the Canadian economy," commented Stacey Mowbray, President\nof The Second Cup Ltd. ("Second Cup"). "That said, we are confident in the\nstrength of the Second Cup brand and are undertaking several initiatives\naround product innovation, value promotions and cafe experience excellence\nwith a view to driving average cheque and consumer traffic. I would like to\nthank our franchise partners and colleagues for their passion, teamwork and\ncommitment to Second Cup. We view our independently owned network as a great\nasset in these more challenging economic times," added Ms. Mowbray.\n\n\nDistribution Announcement\n\n\nThe Fund announced that its Board of Trustees has approved a cash\ndistribution of $0.0940 per unit for the month of February 2009 to be paid on\nMarch 31, 2009 to Unitholders of record at the close of business on March 27,\n2009.\n\n\n2008 Year Analysis\n\n\nSystem sales increased 0.8% to $197,340 from $195,750 in 2007. Same cafe\nsales growth was 0.2% for the year. Same cafe sales for the year were\npositively impacted by the extra leap year day; by Second Cup's promotional\nprograms and food innovation, which continued to shift its sales mix to food,\nresulting in higher year over year average cheque amounts; and by a modest\nprice increase. On the other hand, the sharp downturn in the Canadian economy\nhad a negative impact on same cafe sales...