Business
Pizza Pizza Royalty Income Fund announces second quarter 2008 results
TORONTO, July 31 /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, July 31 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")\ntoday reported its financial results for the second quarter ended June 30,\n2008.\n\n\n2008 Quarterly Highlights compared to 2007:\n\n - Pre-tax earnings per unit increased 9.5%\n - Same store sales grew 1.3%\n - Royalty Pool system sales increased 24%\n - Monthly distribution increased 2% in June\n\n\nPizza Pizza continues to report positive sales growth. As previously\nannounced, same store sales growth (SSSG) for the second quarter increased\n1.3% and grew 2.7% for the six months ended June 30, 2008, both as compared to\nthe same periods last year. SSSG is the key driver of yield growth for Fund\nunitholders and includes results of Pizza 73 restaurants.\n\n\nSystem Sales for the 609 restaurants in the Royalty Pool increased 24%\nfor the quarter to $114.3 million compared to $92.2 million for the 531\nrestaurants in the Royalty Pool for the same quarter in 2007. Sales for the\nquarter from the 559 Pizza Pizza restaurants were $94.2 million and sales from\nthe 50 Pizza 73 restaurants were $20.1 million. System sales of the Royalty\nPool for the six months ended June 30, 2008 increased by 25.3% to\n$227.8 million from $181.7 million in the comparative period in 2007. The\nincrease in system sales and the corresponding royalty income was the result\nof the positive SSSG plus the 37, net new restaurants added to the Royalty\nPool on January 1, 2008, and the 41 Pizza 73 restaurants added to the Royalty\nPool 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, pre-tax earnings per\nunit for the second quarter increased 9.5% over the comparable quarter in\n2007, growing to $0.242 from $0.221 per unit. Earnings before future income\ntax were $5.3 million, or $0.242 per unit; earnings increased to $8.4 million\nas a result of recording a non-cash, future tax recovery of $0.142 per unit.\nEarnings for the second quarter in 2007 were $4 million which were reduced to\na loss of $4.7 million as a result of recording an $8.7 million non-cash,\nfuture tax expense. The provision for future income taxes is unrelated to\nnormal business operations and is the result of federal tax legislation\nrequiring a provision for future income tax expense.\n\n\nOn a year-to-date basis, pre-tax e...