For Immediate Release Toronto Stock Exchange: BPF.UN
BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES FRANCHISE SALES FROM ROYALTY
POOL RESTAURANTS OF $196.6 MILLION FOR THE SECOND QUARTER AND $383.0 MILLION
YTD
Boston Pizza to celebrate its 50th anniversary on August 12
Highlights
- System-Wide Gross Sales1 of $255.0 million for the Period and
$493.0 million YTD, representing increases of $4.6 million and $6.3
million, respectively, versus the same periods one year ago.
- Franchise
Sales2 from royalty pool
restaurants of $196.6 million for the Period and $383.0 million YTD, each
representing an increase of $2.8 million versus the same periods one year
ago.
- Payout
Ratio3 of 97.4% for the Period and 105.5% YTD. On a trailing
12-month basis, the Fund’s Payout ratio was 102.3% as at June 30, 2014.
- Trustees
declared July 2014 distribution to unitholders of 10.2 cents per Unit.
VANCOUVER,
BC, August 8, 2014 - Boston Pizza Royalties Income Fund (the “Fund”) and Boston Pizza International
Inc. (“BPI”) reported financial
results today for the second quarter period from April 1, 2014 to June 30, 2014
(the “Period”) and for the
year-to-date period from January 1, 2014 to June 30, 2014 (the “YTD”). A copy of this press release,
the condensed consolidated interim financial statements and related
Management’s Discussion and Analysis of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The Fund will host a conference call to discuss the
results on August 8, 2014 at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time).
The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay
will be available until September 7, 2014 by dialling 1-800-319-6413 or
604-638-9010 and entering the pin code: 4452 followed by the # sign.
Same store sales growth (“SSSG”), a key driver of distribution
growth for unitholders of the Fund, was negative 0.1% for the Period and
negative 0.8% YTD compared to positive 3.6% and positive 3.4% for the same
periods, respectively, in 2013. Franchise Sales, the basis upon which royalties
are paid by BPI to
the Fund, exclude revenue from the sale of liquor, beer, wine and tobacco and
approved national promotions and discounts. On a Franchise Sales basis, SSSG
was negative 0.7% for the Period and negative 1.3% YTD compared to positive 4.1%
and positive 3.8% for the same periods, respectively, in 2013. The negative SSSG
for the Period and YTD was principally due to a higher number of restaurant renovations
in the same periods, respectively, one year ago. In addition, the YTD SSSG was
negatively impacted by extreme winter weather in many parts of Canada during
the first quarter of 2014. Franchise Sales of restaurants in the royalty pool
were $196.6 million for the Period and $383.0 million YTD compared to $193.8
million and $380.2 million in the same periods, respectively, in 2013. The increases
in Franchise Sales for the Period and YTD are attributed to additional Franchise
Sales from 10 net new store openings from the prior year that were added to the
Fund’s royalty pool on January 1, 2014, offset by negative SSSG.
“Boston
Pizza’s sales in the second quarter of 2014 were driven by popular television
and online campaigns to highlight our exciting menu innovation, continued
growth in our online ordering platform and a national promotion featuring our
restaurants as the best place to gather with friends and watch World Cup soccer
games” said Mark Pacinda, President and CEO of BPI. “Boston Pizza started in
Edmonton, Alberta in 1964 and has grown to become Canada’s #1 casual dining
brand, serving 40 million guests each year in over 350 locations
coast-to-coast. On August 12, Boston Pizza will celebrate its 50th
anniversary and we’ll be rolling back prices on our individual gourmet pizzas
to just $5 on that day. We invite everyone to come and celebrate with BP.”