Business
Pizza Pizza Royalty Income Fund announces third quarter 2007 results
TORONTO, Nov. 12 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the "Fund") reported financial r...
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Nov. 12 /CNW/ - Today, Pizza Pizza Royalty Income Fund (the\n"Fund") reported financial results for the quarter and nine months ended\nSeptember 30, 2007.\n\n\nDuring the quarter, the Fund acquired the Pizza 73 trademarks thereby\nincreasing the Royalty Pool by 41 "Pizza 73" restaurants. Quarterly sales from\nthe 572 restaurants on which the Fund earns royalties were $108.9 million of\nwhich $13.9 million were Pizza 73 sales; sales from the 501 restaurants during\nthe third quarter of 2006 were $90.8 million.\n\n\nSame store sales growth ("SSSG"), the key driver of yield growth for Fund\nunitholders, was 5.1% for the quarter and 5% for the nine months ended\nSeptember 30, 2007. By brand for the quarter, Pizza 73 SSSG was 20.8% and\nPizza Pizza SSSG was 3.1%.\n\n\nCommenting on the two distinct markets, Pizza Pizza's Chief Marketing\nOfficer, Pat Finelli, indicated that, "While Alberta's foodservice industry is\nthe number one growth market for Canada's restaurant business, retail sales\nfor Ontario's limited service food industry, generally, have been negatively\naffected by pressures on Ontario's manufacturing base and the continued\ndecline in tourism. Having said that, we are very satisfied with the quarterly\nresults and we continue to remain focused on providing the "best food, made\nespecially for each customer."\n\n\n"Pizza Pizza is very pleased with the operational performance and the\nprogress of the integration plan at our recent acquisition in western Canada,"\nsaid Curt Feltner, Chief Financial Officer. "The exceptional Pizza 73 sales\ngrowth coupled with Pizza Pizza's consistent growth continues to generate\nexcellent returns for our unitholders."\n\n\nDistributable Cash\n\n\nDistributable cash for the third quarter was $5.1 million or $0.248 per\nunit compared with $4.1 million or $0.229 per unit for the third quarter of\n2006, which represents an 8.3% increase in distributable cash per unit. The\nFund declared distributions of $4.8 million or $0.222 per unit for the quarter\ncompared with $3.8 million or $0.213 for the same quarter last year, or a 4.2%\nincrease. The payout ratio for the quarter was 94%.\n\n\nDistributable cash for the nine months ended September 30, 2007 was\n$13 million or $0.692 per unit compared with $11.7 millio...