Business
Pizza Pizza Royalty Income Fund announces 2007 and fourth quarter results
TORONTO, March 4 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund") today reported its financia...
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, March 4 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")\ntoday reported its financial results for January 1, 2007 to December 31, 2007\n(the "Year") and fourth quarter results from October 1, 2007 to December 31,\n2007 (the "Period").\n\n\nFull Year Highlights:\n- Royalty Pool sales increased 16%\n- Pizza 73 Acquisition was 4% accretive to unitholders at the\n July closing\n- Same store sales grew 4.6%\n- Distributable cash per unit increased 7.8%\n\nFourth Quarter Highlights:\n- Same store sales grew 4.9%\n- Distributable cash per unit increased 9.3%\n\n\nDuring the Year, the Fund, indirectly through the Pizza Pizza Royalty\nLimited Partnership (the "Partnership"), acquired the Pizza 73 trademarks\nthereby increasing the Royalty Pool to 572 restaurants, with the addition of\n41 "Pizza 73" locations.\n\n\nSame store sales growth ("SSSG"), the key driver of yield growth for Fund\nunitholders, was 4.9% for the Period and 4.6% for the Year. By brand for the\nPeriod, Pizza 73 SSSG was 18.2% and Pizza Pizza SSSG was 2.6%; for the Year,\nPizza 73 SSSG was 19.2% and Pizza Pizza SSSG was 3.4%.\n\n\n"The exceptional Pizza 73 sales growth coupled with Pizza Pizza's\nconsistent growth continues to generate excellent returns for our unitholders.\nPizza Pizza is very pleased with the operational performance and the progress\nof the integration plan at our Alberta acquisition", said Curt Feltner, Chief\nFinancial Officer.\n\n\nThe annual system sales of the restaurants in the Royalty Pool on which\nthe Fund earns royalties increased by 16% for the Year to $409.5 million from\n$353.1 million in 2006. Sales from the 531 Pizza Pizza restaurants were\n$376.4 million for the Year and sales from the 41 Pizza 73 restaurants were\n$33.1 million for the period from July 24 to December 31, 2007. The increase\nin system sales and the corresponding royalty income was the result of the\npositive SSSG, the 30, net new Pizza Pizza restaurants added to the Royalty\nPool on January 1, 2007, and the 41 Pizza 73 restaurants added on July 24,\n2007.\n\n\nNet earnings after non-cash future income taxes and issuance costs\n\n\nDue to substantively enacted income tax legislation which affected all\nincome trusts in 2007, the pre-tax earnings of $18.7 million or $0.954 per\nu...