MISSISSAUGA, ON, Jan. 18 /CNW/ - Second Cup Royalty Income Fund ("the Fund") is pleased to announce that it has completed another successful holiday season. Same cafe sales growth for the 4th Quarter and the year ended December 31, 2006 are expected to be 7.8% and 6.2% respectively. The Fund expects to release audited annual financial results on or before March 16, 2007.
"We are extremely pleased with our same cafe sales results for 2006, our strongest in almost 10 years" commented Bruce Elliot, President of The Second Cup Ltd.. "In particular, the 4th Quarter sales growth of 7.8% exceeded our expectations. I wish to take this opportunity to thank our franchisees, operators and the Second Cup team for their efforts this year and most importantly thank our customers for their ongoing patronage and support."
As previously announced, the Fund will make a distribution payment of $0.0867 per unit for the month of December 2006, to be paid on January 31, 2007 to unitholders of record at the close of business on December 29, 2006.
The Fund would also like to report that it has received a favourable Advance Income Tax Ruling from the Canada Revenue Agency with respect to the previously announced proposed reorganization of the Fund's structure. Second Cup Trade-Marks Inc., the administrator of the Fund, together with the Fund's advisors, are currently reviewing the ruling to determine if it remains in the best interests of the Fund and its unitholders to proceed with implementing the reorganization given the proposed tax legislation regarding income trusts announced by the Federal Government on October 31, 2006. A decision by management on whether to move forward on the proposed reorganization is expected to be made by the end of the Fund's first quarter.
The Fund is an open-ended trust established under the laws of the Province of Ontario. It holds, through an indirect wholly-owned subsidiary, the Canadian trade-marks and other intellectual property and associated rights used by Second Cup in connection with the operation of Second Cup cafes in Canada. The Fund is listed on the Toronto Stock Exchange under the symbol SCU.UN. For more information on the Second Cup Royalty Income Fund please visit www.secondcupincomefund.com.
Second Cup is Canada's largest specialty coffee cafe franchisor and second largest retailer of specialty coffee, as measured by number of cafes. For the ultimate on-line coffee experience, visit www.secondcup.com.
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