Business
Pizza Pizza Royalty Income Fund Announces 2005 Third Quarter Results
Pizza Pizza Royalty Income Fund Announces 2005 Third Quarter Results.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n\nPizza Pizza has a Strong Third Quarter Posting 6% Same Store Sales\nGrowth. \n\nTORONTO, Nov. 7 /CNW/ - Pizza Pizza Royalty Income Fund (the \"Fund\"),\nreported today third quarter financial results for the period July 1, 2005 to\nSeptember 30, 2005. Management discussion and analysis of the financial\nresults and a copy of the Q3 report will be available at www.sedar.com and\nwww.pizzapizzaroyaltyincomefund.com.\nPizza Pizza Limited (\"Pizza Pizza\"), the operating company, has\ntraditionally ended its fiscal year September 30th. After Pizza Pizza files\nits September 30, 2005 financial statements, it will convert to a\nDecember 31st year end which is also the Fund's year end. Pizza Pizza\nanticipates filing its September 30th year end financial statements before\nDecember 15, 2005.\nPizza Pizza is pleased to announce a strong 2005, third quarter, posting\na 6% same store sales growth (\"SSSG\") over the same period in 2004.\nThe Fund, which is a limited purpose, open-ended trust established under\nthe laws of Ontario, completed its initial public offering on July 6, 2005,\nproceeds of which were used to acquire the intellectual property, systems and\noperating procedures of Pizza Pizza restaurants in Canada. These rights are\nlicensed to Pizza Pizza in consideration for a royalty equal to 6% of system\nsales. The Royalty is calculated based on the system sales of 340 traditional\nquick service restaurants and 160 non-traditional locations that were open at\nMarch 13, 2005 (collectively the \"Royalty Pool\").\nThe Pizza Pizza royalty pool system sales for the quarter were\n$83.6 million, or an increase of 6% compared to the equivalent period in 2004.\nEach Pizza Pizza reporting quarter contains 13 weekly periods. Royalty income\nfor the Fund was $5,014,889 for the quarter, earnings were $0.211 per unit and\nthe Fund declared distributions of $0.189 per unit.\nAt September 30, 2005, the Pizza Pizza restaurant chain included 341\ntraditional restaurants, the majority of which are in Ontario, and 165 \nnon-traditional restaurants located across Canada.\n\nFinancial Highlights\n\nEquity and interest income earned by the Fund through its interest in the\nPartnership has been derived as shown in the table below (the following\ninformation provides additional analysis of the operations and financial\nposition of the Fund an...