Pizza Pizza Royalty Income Fund announces first quarter 2008 results

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[{"type":"text","content":"\n\n\n\nTORONTO, May 1 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund") today\nreported its financial results for the quarter ended March 31, 2008.\n\n\n2008 Quarterly Highlights compared to 2007:\n\n- Earnings per unit, before non-cash future income tax, increased 9.0%\n- Distributions per unit increased 4.1%\n- Same store sales grew 3.7%\n- Royalty Pool system sales increased 26.8%\n\n\nThe Fund's two brands continue to report positive sales growth. As\npreviously announced, the Fund's same store sales growth (SSSG) increased 3.7%\nwhen compared to the same period last year. By brand, Pizza Pizza's SSSG was\n2.1% and Pizza 73 SSSG was 11.7%.\n\n\nThe system sales of the restaurants in the Royalty Pool on which the Fund\nearns royalties increased by 26.8% for the quarter to $113.5 million from\n$89.5 million in the comparative period in 2007. Sales for the quarter from\nthe 559 Pizza Pizza restaurants were $94 million and sales from the 50 Pizza\n73 restaurants were $19.5 million. The increase in system sales and the\ncorresponding royalty income was the result of the positive SSSG plus the 37,\nnet new restaurants added to the Royalty Pool on January 1, 2008, and the 41\nPizza 73 restaurants added to the Royalty Pool on July 24, 2007.\n\n\nNet earnings after non-cash future income taxes\n\n\nAs a result of the increase in Royalty Pool sales earnings per unit,\nbefore non-cash future income tax, increased 9% for the quarter over that in\nthe first quarter of 2007, growing to $0.241 from $0.221 per unit\n\n\nEarnings before future income tax of $5.3 million, or $0.241 per unit,\nwere reduced to $4.4 million, or $0.202 per unit, as a result of recording a\nnon-cash, future tax expense of $0.039 per unit. Net earnings for the first\nquarter in 2007 were $4.0 million or $0.221 per unit and federal tax\nlegislation requiring a provision for future income tax expense had not yet\nbeen substantively enacted.\n\n\nDistributions\n\n\nThe Fund declared distributions of $5.0 million or $0.228 per unit for\nthe quarter compared to $3.9 million or $0.219 per unit for the same period\nlast year, or a 4.1% increase per unit. The payout ratio for the quarter was\n95%.\n\n\nAs of March 31, 2008, working capital of the Pizza Pizza Royalty Limited\nPartnership (the "Partnership") increased 21% during the quarter to\n$2.3 m...

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