Business
Pizza Pizza Royalty Income Fund announces second quarter 2007 results
Pizza Pizza Royalty Income Fund announces second quarter 2007 results.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 1 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the\n"Fund") reported financial results for the three and six months ended June 30,\n2007.\n\n\nAs previously announced, the Fund reported another strong quarter with\n4.3% same store sales growth and 4.9% for the 6 months ended June 30, 2007,\ncompared with 4% for the same quarter in 2006 and 5% for the 6 months ended\nJune 30, 2006. Same store sales growth is the key driver of yield growth for\nUnitholders. This represents the eighth consecutive quarter of sales growth\nsince the Fund's inception in July 2005.\n\n\nSystem Sales for the Pizza Pizza Limited ("Pizza Pizza") restaurants in\nthe Fund's Royalty Pool for the second quarter increased by $6.1 million or\n7.1% to $92.2 million compared with $86 million for the same quarter in the\nprior year. System Sales of the Royalty Pool for the six months ended June 30,\n2007 increased by $13.2 million or 7.8% to $181.7 million compared with\n$168.5 million for the same quarter in the prior year. The increase in sales\nreflects the sales generated by the new restaurants in the Royalty Pool and an\nincrease in same store sales.\n\n\nDistributable Cash\n\n\nDistributable cash for the second quarter of 2007 was $4.0 million or\n$0.221 per unit compared with $3.8 million or $0.214 per unit for the second\nquarter of 2006, which represents a 3.2% increase in distributable cash per\nunit. The Fund declared distributions of $3.9 million or $0.219 per unit for\nthe quarter compared with $3.7 million or $0.209 for the same quarter last\nyear. The payout ratio for the quarter was 99%.\n\n\nDistributable cash for the six months ended June 30, 2007 was $7.9\nmillion or $0.443 per unit compared with $7.5 million or $0.419 per unit for\nthe six months ended June 30, 2006. The Fund declared distributions of\n$7.9 million or $0.438 per unit for the six months compared with $7.5 million\nor $0.416 for the comparable six months of 2006. The payout ratio for the\nsix-month period ended June 30, 2007 was 99%.\n\n\nDistributable cash is not an earnings measure recognized by generally\naccepted accounting principles ("GAAP") and therefore may not be comparable to\nsimilar measures presented by other issuers. Distributable cash, calculated as\nnet earnings before non-cash, future income tax expense, is b...