Business
Pizza Pizza Royalty Income Fund Announces Second Quarter 2006 Results
Pizza Pizza Royalty Income Fund Announces Second Quarter 2006 Results.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Aug. 9 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the\n\"Fund\") reported financial results for the quarter ended June 30, 2006. As the\nFund's initial public offering date was July 6, 2005, there are no prior year\ncomparables for the quarter.\nSame Store Sales Growth, the key driver of yield growth for unitholders\nof the Fund, increased by 4% for the second quarter and by 5% for the six\nmonths ended June 30, 2006 compared with the comparable periods in 2005.\nThe Fund's net earnings for the quarter were $3.8 million or $0.214 per\nunit and earnings for the six month period were $7.5 million or $0.419 per\nunit.\nAs previously announced, the Fund increased its July 2006 distribution by\n2.1%, from $0.0695 to $0.071 per unit. This is the Fund's third distribution\nincrease since the initial public offering.\nPizza Pizza Limited (\"Pizza Pizza\"), the operating company, opened five\nrestaurants during the second quarter and none were closed; 14 have been\nopened in the six months ended June 30, 2006 and two have been closed bringing\nthe total number to 517 locations.\nPizza Pizza's system sales for the first quarter have generally been the\nsoftest quarter and the fourth quarter system sales have been the strongest\ndue to seasonality of the business.\n\nFINANCIAL HIGHLIGHTS\n\nEquity earned by the Fund through its interest in the Partnership and\ninterest income from the Pizza Pizza Limited Loan have been derived as shown\nin the table below:\n\n>\n\nPizza Pizza Royalty Limited Partnership (the \"Partnership\") Operating\nResults\n\nThe Partnership, which is 79.7% owned by the Fund at June 30, 2006, earns\na 6% royalty income on the Royalty Pool system sales of the Pizza Pizza\nrestaurants. The Fund earns equity income from its investment in the\nPartnership. The Fund's equity income from the Partnership is calculated as\nthe royalty income less the Partnership's operating expenses less earnings\nattributable to Pizza Pizza.\nThe following provides information on the Partnership performance for the\nquarter and six months ended June 30, 2006.\n\n>\n\nThe unaudited, consolidated financial statements of the Fund, together\nwith its Management's Discussion and Analysis, are available in conjunction\nwith this press release on the Fund's website at\nwww.pizzapizzaroyaltyincomefund.com and will be available...