Business
Pizza Pizza Royalty Income Fund announces third quarter 2008 results
TORONTO, Oct. 30 /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, Oct. 30 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")\ntoday reported its financial results for the third quarter ended September 30,\n2008.\n\n\n2008 Third Quarter Highlights compared to 2007:\n\n---Same store sales increased 2.2%\n---Royalty Pool system sales increased 10.5%\n---Pre-tax earnings per unit increased 3.6%\n---Working capital balance increased 21.7% and 47% year-to-date\n\n\nPizza Pizza continues to report positive sales growth. Same store sales\ngrowth (SSSG) for the third quarter increased 2.2% and increased 2.5% for the\nnine months ended September 30, 2008, both as compared to the same periods\nlast year. SSSG is the key driver of yield growth for Fund unitholders and\nincludes results of Pizza 73 restaurants.\n\n\nSales\n\n\nSystem Sales for the 609 restaurants in the Royalty Pool increased 10.5%\nfor the quarter to $120.4 million compared to $108.9 million for the 579\nrestaurants in the Royalty Pool for the same quarter in 2007. System sales of\nthe Royalty Pool for the nine months ended September 30, 2008 increased by\n19.8% to $348.2 million from $290.6 million in the comparative period in 2007.\nThe increase in system sales 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 with the\nacquisition of the Pizza 73 trademarks.\n\n\nNet earnings\n\n\nNet earnings for the current quarter were $5.6 million compared to net\nearnings of $708,000 for the third quarter last year, which had pre-tax\nearnings of $5.1 million reduced by $4.2 million of non-cash future income\ntaxes and $169,000 of issuance costs. Pre-tax earnings per unit for the third\nquarter increased 3.6% to $0.257 from $0.248 per unit during the same quarter\nin 2007.\n\n\nOn a year-to-date basis, pre-tax earnings per unit increased 6.9% to\n$0.740 per unit from $0.692 per unit during the same period in 2007.\nYear-to-date earnings in 2008 have benefited from the accretive acquisition of\nthe Pizza 73 trademarks in the third quarter last year. Earnings for the year,\nbefore future tax and issuance costs, were $16.2 million and were increased to\n$18.4 million as a result of a non-cash future tax recovery of $2.2 million.\nFor the same nine month period in 2007, the Fund had ...