Business
Second Cup Royalty Income Fund Announces Strong Third Quarter Results
Second Cup Royalty Income Fund Announces Strong Third Quarter Results.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\n\nMISSISSAUGA, ON, Nov. 1 /CNW/ - Second Cup Royalty Income Fund (TSX:\nSCU.UN) is pleased to report its third quarter results. All amounts in this\nnews release are presented in thousands of dollars, except cafDes and per unit\namounts.\nSame cafDe sales growth of cafDes in the Royalty Pool was 5.7% for the\nquarter ended September 30, 2006 and 5.6% for the year to date. System sales\nof cafDes in the Royalty Pool were $46,343 for the quarter compared to $43,727\nfor the comparable period. System sales benefited from a continuing\nimprovement in sales mix, driven by increased sales of premium beverages, food\nand merchandise. Sales for the quarter reflect the seasonality of the business\nand were in line with management's expectations.\n\"We are very pleased with the same cafDe sales performance experienced by\nour cafDes year to date,\" said Bruce Elliot, President of The Second Cup Ltd.\n\"Should sales growth continue at its current rate throughout the holiday\nseason, we would expect to exceed our previously stated same cafDe sales growth\nof 3% to 5% for the year.\"\nNet earnings of the Fund before cash distributions benefited from the\nsales growth achieved in the period, and were $2,627 or $0.2716 per unit on a\nfully diluted basis for the quarter, representing a 5.7% increase over fully\ndiluted earnings per unit of $0.2570 for the third quarter of 2005. For the\nyear to date, net earnings were $7,032 or $0.7270 per unit on a fully diluted\nbasis. During the year, the Fund incurred expenses amounting to $367 related\nto the previously-announced proposed reorganization of the structure of the\nFund; $10 of these costs were incurred in the third quarter. The year to date\nearnings also reflect a non-cash tax expense of $224, or $0.0232 per unit,\nincurred in the second quarter for the reduction in future income tax assets\nas a result of the federal government substantially enacting new legislation\nwhich will result in a reduction in federal income tax rates commencing 2008.\nExcluding these items, net earnings for the Fund before cash distributions\nwere $7,623 for the year to date, or $0.7881 per unit on a fully diluted\nbasis, representing a 4.4% increase over the comparable period in 2005.\nCommencing in the current reporting period, the Fund has adjusted the way\nit presents distributable cash flows to confor...