Business
Pizza Pizza Royalty Income Fund announces first quarter 2007 results
Pizza Pizza Royalty Income Fund announces first quarter 2007 results.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, May 2 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the\n"Fund") reported financial results for the quarter ended March 31, 2007.\n\n\nAs previously announced, the Fund reported another strong quarter with\nSame Store Sales Growth, the key driver of yield growth for Unitholders, of\n5.5% for the period, compared with 5% for the same quarter in 2006.\n\n\nSystem Sales for the quarter for the restaurants in the Fund's Royalty\nPool increased by $7 million or 8% to $89.5 million compared with $82.5 for\nthe same quarter in the prior year. The increase in sales reflects the sales\ngenerated by the new restaurants in the Royalty Pool and an increase in same\nstore sales.\n\n\nThe Fund's earnings were $4 million for the quarter or $0.221 per unit\ncompared with $3.7 million or $0.205 per unit for the same quarter last year;\nthe Fund declared distributions of $3.9 million or $0.219 per unit for the\nquarter compared with $3.7 million or $0.207 for the same quarter last year.\nThe payout ratio for the quarter was 99%.\n\n\nOn January 1, 2007, the Royalty Pool for which royalties are paid to the\nFund by Pizza Pizza Limited ("Pizza Pizza") was increased to include the 35\nnew restaurants opened between September 2, 2005 and December 31, 2006. Five\nlocations were closed during calendar 2006. With the addition of these 30 net,\nnew restaurants, royalties are now paid to the Fund from 531 Pizza Pizza\nrestaurants in the Royalty Pool.\n\n\nSystem sales for Pizza Pizza for the first quarter of the calendar year\nhave generally been the softest quarter and the fourth quarter system sales\nhave been the strongest. This seasonality has been repeated in the past two\nquarters.\n\n\nPizza Pizza opened two restaurants and closed one during the quarter\nbringing the total number to 532 restaurants.\n\n\nFINANCIAL HIGHLIGHTS\n\n\nEquity income earned by the Fund through its interest in the Pizza Pizza\nRoyalty Limited Partnership (the "Partnership") and interest income from the\nPPL Loan for the Period, have been derived as shown in the table below:\n\n\nPizza Pizza Royalty Limited Partnership\nAnalysis of Distributable Cash\n\n 3 months ended 3 months ended\n March 31, 2007 March 31, 2006\n-------------------------------------------------------------------------\n (in thousands of dollars, except nu...