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Second Cup Royalty Income Fund announces first quarter results and April distribution
MISSISSAUGA, ON, May 12 /CNW/ - Second Cup Royalty Income Fund (the "Fund") reported today financ...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, May 12 /CNW/ - Second Cup Royalty Income Fund (the\n"Fund") reported today financial results for the first quarter ended March 31,\n2009, and the approval of the April distribution payment. 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\nHighlights\n\n- Same cafe sales were down 3.0% in the quarter, with sales adversely\n affected by the continuing downturn in the economy, increased\n unemployment and consumer discretionary patterns.\n- Basic earnings per unit increased by 2.7% to $0.2578 for the quarter,\n up from $0.2511 in the comparable quarter a year ago.\n- Basic earnings per unit, excluding non-cash expenses, decreased 7.0%\n to $0.2574 per unit from $0.2769 for the comparable period in 2008\n- Distributions declared in the quarter were $0.26467 per unit compared\n to $0.2790 in 2008, a decrease of 5.1%\n\n\n"Although we are disappointed in the same cafe sales, we are encouraged\nby the progress we are making in both the expansion of food and innovation in\nthe beverage portfolio, as well as the absolute commitment of our individual\nowner operators to serve and delight our guests," commented Stacey Mowbray,\nPresident of The Second Cup Ltd. ("Second Cup").\n\n\nFirst Quarter Analysis\n\n\nThe source of revenue for the Fund is through its 100% ownership in\nSecond Cup Trade-Marks Limited Partnership ("MarksLP") which, in turn,\nreceives royalty income from Second Cup under a Royalty and Licence Agreement\n(the "Agreement"). The earnings of MarksLP are recorded on an equity accounted\nbasis in the Fund's financial statements.\n\n\nSystem sales for the first quarter were $44,992 (2008 - $47,333),\nrepresenting a decrease of $2,341 or 4.9%. This decrease was mainly the result\nof lower same cafe sales of 3.0% in the quarter and the extra day in February\n2008 as a result of leap year, partially offset by the shift in Easter from Q1\nin 2008 to Q2 in 2009. The softening of cafe sales continued from 2008 into\nthe first quarter of 2009 across Canada's major markets resulting from lower\ncustomer traffic, which management of Second Cup believes is similar to the\ntrend experienced in retail in...