Business
Pizza Pizza Royalty Income Fund announces 2006 results
Pizza Pizza Royalty Income Fund announces 2006 results.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 28 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the\n"Fund") reported financial results for the period of January 1, 2006 to\nDecember 31, 2006 (the "Year). As the Fund began operations on July 6, 2005, a\nfull year comparative is not available.\n\n\nThe Fund's earnings were $15.9 million for the Year or $0.89 per unit and\nthe Fund declared distributions of $15.1 million or $0.84 per unit for the\nYear.\n\n\nSame Store Sales Growth, the key driver of yield growth for Uniholders,\nwas 4.5% for the Year compared with the same period in 2005. During the Year\nthe Fund increased its February distribution by 2%, from $0.0685 to $0.0695,\nand the July distribution by 2%, from $0.0695 to $0.071.\n\n\nBusiness activities underlying the Fund continued to be solid in the\nfourth quarter ended December 31, 2006 as Pizza Pizza Limited experienced a 5%\nsame-store sales growth over the same period last year and the payout ratio\nwas 90%. For the Year the Fund's payout ratio was 95%.\n\n\nWith the continued increase in same store sales, the Fund has previously\nannounced a 2.8% increase of its January 2007 distribution to $0.073 from\n$0.071 per unit. This was the fourth distribution increase since the Fund's\ninitial public offering in July 2005. The current distribution equates to an\nannualized rate per unit of $0.876.\n\n\nFor those Unitholders holding units outside a tax deferred plan, the 2006\ndistributions will be treated as 49.46% taxable income and 50.54% as a\ntax-deferred return of capital. A history of the monthly distributions can be\nfound on the Fund's website at www.pizzapizzaroyaltyincomefund.com.\n\n\nJanuary 1, 2007, the pool of Pizza Pizza restaurants (the "Royalty Pool")\nfor which royalties are paid to the Fund by Pizza Pizza Limited ("PPL") was\nincreased to include the 35 new restaurants opened between September 1, 2005\nand December 31, 2006. Five locations were closed during the calendar year\n2006. Of the 35 new restaurants, 16 are traditional restaurants and 19 are\nnon-traditional locations. With the addition of these 30 net, new restaurants,\nroyalties are now paid to the Fund from 531 Pizza Pizza restaurants in the\nRoyalty Pool. The forecasted 2007 system sales for the 35 new restaurants is\n$16,000,000 and system sales will be reduced by $592,064 as...