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Second Cup Royalty Income Fund announces distribution increase, first quarter results
Second Cup Royalty Income Fund announces distribution increase, first quarter results.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\n\nMISSISSAUGA, ON, May 10 /CNW/ - Second Cup Royalty Income Fund\n(TSX:SCU.UN) is pleased to report its first quarter results and announce that\nit is increasing its monthly cash distributions.\nThe monthly distribution will increase 4.04% from $0.0833 per unit to\n$0.0867 per unit. The new monthly distribution of $0.0867 equates to an\nannualized distribution of $1.0404 per unit. The board of trustees has\napproved the first distribution of $0.0867 per unit effective for the month of\nApril 2006 which will be paid on May 31, 2006 to unitholders of record on May\n25, 2006.\n\"The first quarter of 2006 was the fifth consecutive quarter of positive\nsame cafDe sales growth since the Fund's inception in December of 2004. We have\nbeen pleased with the Fund's royalty growth since its inception and wish to\npass on this success to our unitholders in the form of an increase in\ndistributions going forward,\" said David Bloom, Chairman of the Board of\nTrustees of the Fund.\n\nFIRST QUARTER RESULTS\n\nSystem sales of cafDes in the Royalty Pool were $43.4 million for the\nquarter and same cafDe sales growth was 6.4%. System sales benefited from a\ncontinuing improvement in sales mix, driven by increased sales of premium\nbeverages, food and merchandise. System sales growth also benefited from a\nmild winter season in the Ontario market, and the timing of Easter. In\naddition a price increase implemented in the first quarter of 2005 by The\nSecond Cup Ltd. (\"Second Cup\") accounted for approximately one percentage\npoint of the same cafDe sales growth for the period. System sales for the\nquarter reflect the seasonality of the business and were in line with\nmanagement's expectations.\nThe source of revenue for the Fund is its ownership of Second Cup Trade-\nMarks Inc (\"MarksCo\") which, in turn, receives royalty income from Second Cup\nunder a Licence and Royalty Agreement. For the quarter, MarksCo earned total\nroyalty revenue of $2,826,000. The Fund incurred ongoing operating expenses of\n$169,000, including expenses of MarksCo. In addition, expenses of $193,000, or\n$0.02 per unit, were incurred in the quarter related to the previously-\nannounced proposed reorganization of the Fund. Operating expenses of the Fund\nand MarksCo were in line with management's expectations. Net earnings of the\nFund before any cash distributio...