For Immediate Release Toronto Stock Exchange: BPF.UN
BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES STRONG SSSG
AND RECORD FRANCHISE SALES FOR Q4 AND 2011
Trustees announce January distribution
to unitholders of 9.2 cents per unit
VANCOUVER,
BC, February 9, 2012 - Boston Pizza Royalties Income Fund (the “Fund”) and
Boston Pizza International Inc. (“BPI”) each reported today financial results
for the period from October 1, 2011 to December 31, 2011 (the “Period”) and
from January 1, 2011 to December 31, 2011 (the “Year”). A copy of this press
release, the annual consolidated financial statements for the Year and related
Management’s Discussion and Analysis of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The financial results below are reported in accordance with
International Financial Reporting Standards (“IFRS”) and as a result are not
directly comparable to those figures contained within historical financial
statements of the Fund that were prepared in accordance with Canadian generally
accepted accounting principles (“Canadian GAAP”). The Fund will host a
conference call to discuss the results on February 9, 2012 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 March 8, 2012
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 positive 6.4%
for the Period and positive 4.9% for the Year, compared to positive 1.3% and
negative 1.3%, respectively, for the same periods in 2010. Franchise sales, the
basis upon which royalties are paid by the franchisees to BPI, exclude revenue
from the sale of liquor, beer, wine and tobacco and approved national
promotions and discounts. On a franchise sales basis, SSSG was positive 5.8% for
the Period and positive 4.9% for the Year, compared to positive 2.6% and
negative 0.7%, respectively, for the same periods in 2010. The increases in
SSSG for the Period and the Year were principally due to higher takeout and
delivery sales resulting from continued promotion of Boston Pizza’s online
ordering system and higher sales of the new chicken wing product that was
launched in early 2011 through successful national television, radio and online
ad campaigns. Other key sales initiatives in the Period included a “Festive
Favourites” menu feature sheet in December, and the sale of Boston Pizza Gift
Cards throughout the fourth quarter. Franchise sales of restaurants in the
royalty pool were a record $177.5 million for the Period and a record $699.3
million for the Year compared to $166.2 million and $663.8 million,
respectively, in the same periods in 2010. The increases in franchise sales for
the Period and Year are largely attributed to positive SSSG.
“We
are very pleased with the strong same store sales growth of 6.4% in the fourth
quarter and 4.9% in 2011. This is a key metric with respect to distribution
growth for Boston Pizza Royalties Income Fund and our steady top line growth
has enabled the fund to increase monthly distributions to unitholders a total
of 14 times since the initial public offering in 2002” said Mark Pacinda, President and CEO of BPI. “In
addition, Boston Pizza International opened seven new full service locations in
2011 and posted record annual system-wide sales which exceeded $900 million from
343 locations, further expanding Boston Pizza’s position as Canada’s #1 casual
dining brand”.
The Fund’s net income was $0.3 million for
the Period and $15.6 million for the Year compared to a loss of $1.8 million
and a loss of $0.2 million, respectively, in the same periods in 2010. The Fund’s net income under IFRS contains many non-cash items
that do not affect the Fund’s operations or its ability to pay distributions to
unitholders. As such, it is not in the Fund’s view, the only or most meaningful
measurement of the Fund’s ability to pay distributions. Consequently, the Fund
has provided the non-IFRS metrics of distributable cash and payout ratio (as
set forth in the tables contained herein) to provide investors with more
meaningful information about the Fund’s ability to pay distributions. Readers
are cautioned that distributable cash and payout ratio are non-IFRS financial
measures that do not have standardized meanings prescribed by IFRS and
therefore may not be comparable to similar measures presented by other issuers.
For reconciliation between cash flow from operating activities (the most
directly comparable IFRS measure) and distributable cash, please see the table below.
For a detailed discussion on the Fund’s distributable cash and payout ratio,
please refer to the Management’s Discussion and Analysis for the Period and the
Year as filed on SEDAR and posted on the Fund’s website at www.bpincomefund.com.
The Fund’s distributable cash
was $4.1 million or $0.281 per unit of the Fund (“Unit”) for the Period and $16.1
million or $1.104 per Unit for the Year compared to $5.0 million or $0.345 per Unit
and $20.5 million or $1.413 per Unit for the same periods, respectively, in
2010. The decreases in distributable cash and distributable cash per Unit for
the Period and the Year are a result of the Fund becoming taxable under the
specified investment flow through tax (“SIFT Tax”) beginning on January 1,
2011. For comparative purposes, if the Fund was not liable to pay SIFT Tax in
respect of the Period and Year, distributable cash for the Period and Year would
have been $5.5 million or $0.377 per Unit and $21.6 million or $1.480 per Unit,
respectively. As a result of the SIFT Tax, the Fund pays tax at a rate
approximately equal to the rate applicable to income earned by a Canadian
corporation, and is prevented from deducting trust distributions when
calculating taxable income. The SIFT Tax rate was 26.5% in 2011 and is anticipated
to be 25.0% for 2012. The Fund’s liability to pay SIFT Tax reduces the amount
available for distributions to unitholders. The SIFT Tax also recharacterizes
such distributions as eligible dividends received from a Canadian corporation
for individual tax purposes. Eligible dividend treatment for distributions to
unitholders will generally be beneficial to Canadian resident investors holding
their Units in taxable accounts compared to the previous characterization
primarily as other income because of the potential for individuals to claim a
dividend tax credit. Distributions for
the Period and the Year were funded entirely by cash flow from
operations. No debt was incurred at any point during the Period or the Year to
fund distributions. The table below sets out the Fund’s distributable cash and
distributable cash per Unit for the Period and Year along with comparable
figures for the same periods one year ago.
Description | Q4 2011 | Q4 2010 | 2011 | 2010 |
Distributable Cash | $4.1 million | $5.0 million | $16.1 million | $20.5 million |
Distributable Cash per Unit | $0.281 | $0.345 | $1.104 | $1.413 |
Distributable Cash without SIFT Tax† | $5.5 million | $5.0 million | $21.6 million | $20.5 million |
Distributable Cash per Unit
without SIFT Tax† | $0.377 | $0.345 | $1.480 | $1.413 |
† These rows are provided for comparative purposes
only and assume that the Fund was not liable to pay SIFT Tax in respect of the
applicable periods
The Fund’s payout ratio (amount distributed
divided by distributable cash) was 98.3% for the Period and 95.7% for the Year compared
to 100.0% and 98.1%, respectively, in the same periods one year ago. The
Fund’s payout ratio for the Period and for the Year decreased compared to the
same periods one year ago primarily due to the impact of positive SSSG
partially offset by the distribution increase beginning with the July 2011
distribution to unitholders. A key
feature of the Fund is that it is a “top line” structure, in which BPI pays the
Fund a royalty equal to 4% of franchise sales from restaurants in the Fund’s
royalty pool. Accordingly, Fund unitholders are not directly exposed to changes
in the operating costs or profitability of BPI or of individual Boston Pizza
restaurants. Given this structure, and that the Fund has no current mandate to
retain capital for other purposes, it is expected that the Fund will maintain a
payout ratio close to 100% over time as the trustees of the Fund continue to
distribute all available cash in order to maximize returns to unitholders.
The trustees of the Fund
announced a cash distribution to unitholders of 9.2 cents per Unit for January
2012. The distribution will be payable to unitholders of record at the close of
business on February 21, 2012 and will be paid on February 29, 2012. The Fund
periodically reviews distribution levels based on its policy of stable and
sustainable distribution flow to unitholders.
HIGHLIGHTS
The tables below sets out selected information from
the annual consolidated financial statements of the Fund, which consolidates
the accounts of the Boston Pizza Royalties Limited
Partnership’s (the “Partnership”),
together with other data and should be read in conjunction with the annual consolidated
financial statements of the Fund.
Adoption of IFRS:
The Fund adopted IFRS on
January 1, 2011 and the financial results disclosed in this press release
for all periods commencing on or after January 1, 2010 have all been prepared
in accordance with IFRS. Readers are advised that the Fund’s transition to
reporting its financial results in accordance with IFRS from Canadian GAAP,
including consolidating the Partnership accounts with the Fund, has had no
impact, nor is it expected to have any future impact, on the operations of the
Fund’s business, the amount of cash that is available to distribute to
unitholders or the contractual obligations between the Fund, the Partnership,
BPI or any third parties. However, it
has impacted the presentation of certain key financial metrics of the Fund and
BPI. The comparative financial results contained in this press release for
periods in 2010 have been restated to conform to IFRS. Readers are cautioned
that they should refer to the annual consolidated financial statements of the
Fund for a full description of the impact of IFRS on the Fund’s financial
results, copies of which are available at www.sedar.com
and www.bpincomefund.com.
| Jan 1, 2011 to Dec 31, 2011 | Jan 1, 2010 to Dec 31, 2010 Proforma1 | Jan 1, 2010 to Dec 31, 2010 |
(in thousands of dollars – except restaurants,
SSSG, payout ratio and per Unit items) | | | |
Revenues | | | |
Number of restaurants in Royalty Pool2 | 336 | 334 | 334 |
System-wide gross sales3 | 904,872 | 853,461 | 853,461 |
Franchise Sales4 reported by
restaurants in the Royalty Pool | 699,329 | 663,758 | 663,758 |
Royalty revenue – 4% of Franchise Sales of
Restaurants | 27,973 | 26,550 | 26,550 |
Net interest income | 1,815 | 1,803 | 1,803 |
Total revenues | 29,788 | 28,353 | 28,353 |
| | | |
Expenses | | | |
Administrative expenses and interest on bank
debt | (1,894) | (2,053) | (2,053) |
Interest accrued to holders of Units5 | - | - | (16,725) |
Interest accrued to BPI on Class B Units
and Class C Units6 | (5,814) | (5,639) | (5,639) |
Gain on retirement of Unit liability | - | 46 | 46 |
Fair value adjustment on Class B Unit
liability7 | (731) | (3,703) | (3,703) |
Subtotal | (8,439) | (11,349) | (28,074) |
Current income tax expense | (5,474) | - | - |
Deferred income tax expense | (290) | (490) | (490) |
Total expenses | (14,203) | (11,839) | (28,564) |
| | | |
Net Income | | | |
Net income (loss) | 15,585 | 16,514 | (211) |
Basic and diluted earnings per Unit | 1.186 | 1.245 | 0.091 |
| | | |
Distributable
Cash / Distributions / Payout Ratio8, 9 | | | |
Cash flows from operating activities | 27,490 | 26,185 | 26,185 |
BPI
entitlement: | | | |
Class C
distributions | (1,800) | (1,800) | (1,800) |
Class B
entitlement | (4,130) | (3,911) | (3,911) |
SIFT tax on
Units | (5,474) | - | - |
Distributable
Cash8 | 16,086 | 20,474 | 20,474 |
Interest accrued5 / distributions
payable10 | 15,387 | 20,076 | 20,076 |
Payout Ratio9 | 95.7% | 98.1% | 98.1% |
Distributable Cash per Unit8 | 1.104 | 1.413 | 1.413 |
Interest5 / distributions payable per
Unit10 | 1.056 | 1.380 | 1.380 |
| | | |
Other | | | |
Same store sales growth (SSSG) | 4.9% | (1.3%) | (1.3%) |
Number of restaurants opened during the period | 7 | 6 | 6 |
Number of restaurants closed during the period | 4 | 6 | 6 |
| Dec 31, 2011 | Dec 31, 2010
Proforma1 | Dec 31, 2010 |
Total assets | 261,571 | 258,547 | 258,547 |
Total liabilities | 99,794 | 96,968 | 96,968 |
| | | | | |
| Q4
2011 | Q3
2011 | Q2
2011 | Q1
2011 |
(in thousands of dollars – except restaurants,
SSSG, payout ratio and per Unit items) | | | | |
Revenues | | | | |
Number of restaurants in Royalty Pool2 | 336 | 336 | 338 | 339 |
System-wide gross sales3 | 232,713 | 235,911 | 228,766 | 207,482 |
Franchise Sales4
reported by restaurants in the Royalty Pool | 177,465 | 183,163 | 175,568 | 163,133 |
Royalty revenue
– 4% of Franchise Sales of Restaurants | 7,098 | 7,327 | 7,023 | 6,525 |
Interest income | 454 | 454 | 455 | 452 |
Total revenues | 7,552 | 7,781 | 7,478 | 6,977 |
| | | | |
Expenses | | | | |
Administrative
expenses and interest on bank debt | (432) | (449) | (511) | (502) |
Interest
accrued to BPI on Class B Units and Class C Units6 | (2,042) | (1,447) | (1,388) | (937) |
Fair value adjustment on Class B Unit
liability7 | (3,308) | 1,148 | 2,707 | (1,278) |
Subtotal | (5,782) | (748) | 808 | (2,717) |
Current income tax expense | (1,396) | (1,449) | (1,366) | (1,263) |
Deferred income tax expense | (70) | (100) | (70) | (50) |
Total expenses | (7,248) | (2,297) | (628) | (4,030) |
| | | | |
Net Income | | | | |
Net income | 304 | 5,484 | 6,850 | 2,947 |
Basic and diluted earnings per Unit | 0.089 | 0.401 | 0.495 | 0.201 |
| | | | |
Distributable
Cash / Distributions / Payout Ratio8, 9 | | | | |
Cash flows from operating activities | 7,037 | 7,266 | 6,922 | 6,265 |
BPI
entitlement: | | | | |
Class C
distributions | (450) | (450) | (450) | (300) |
Class B
entitlement | (1,099) | (1,077) | (1,023) | (952) |
SIFT tax on
Units | (1,396) | (1,449) | (1,366) | (1,263) |
Distributable
cash8 | 4,092 | 4,290 | 4,083 | 3,600 |
Interest accrued5 / distributions
payable10 | 4,021 | 4,021 | 3,672 | 3,672 |
Payout Ratio9 | 98.3% | 93.7% | 89.9% | 102.0% |
Distributable cash per Unit8 | 0.281 | 0.294 | 0.280 | 0.247 |
Interest5 / distributions payable per
Unit10 | 0.276 | 0.276 | 0.252 | 0.252 |
| Q4
2010 | Q3
2010 | Q2
2010 | Q1
2010 |
(in thousands of dollars – except restaurants,
SSSG, payout ratio and per Unit items) | | | | |
Revenues | | | | |
Number of restaurants in Royalty Pool2 | 334 | 335 | 338 | 340 |
System-wide gross sales3 | 215,303 | 218,335 | 215,336 | 204,487 |
Franchise Sales4
reported by restaurants in the Royalty Pool | 166,181 | 171,151 | 165,972 | 160,455 |
Royalty revenue
– 4% of Franchise Sales of Restaurants | 6,647 | 6,846 | 6,639 | 6,418 |
Interest income | 452 | 451 | 450 | 450 |
Total revenues | 7,099 | 7,297 | 7,089 | 6,868 |
| | | | |
Expenses | | | | |
Administrative
expenses and interest on bank debt | (687) | (485) | (444) | (437) |
Interest accrued to holders of Units5 | (3,352) | (5,027) | (5,096) | (3,250) |
Interest
accrued to BPI on Class B Units and Class C Units6 | (1,852) | (1,362) | (1,362) | (1,063) |
Gain (Loss) on retirement of Unit liability | - | - | 181 | (135) |
Fair value adjustment on Class B Unit
liability7 | (2,916) | (3,924) | 1,056 | 2,081 |
Subtotal | (8,807) | (10,798) | (5,665) | (2,804) |
Current income tax expense | - | - | - | - |
Deferred income tax expense | (80) | (70) | (70) | (270) |
Total expenses | (8,887) | (10,868) | (5,735) | (3,074) |
| | | | |
Net Income | | | | |
Net income | (1,788) | (3,571) | 1,354 | 3,794 |
Basic and diluted earnings per Unit | (0.058) | (0.218) | 0.120 | 0.256 |
| | | | |
Distributable
Cash / Distributions / Payout Ratio8, 9 | | | | |
Cash flows from operating activities | 6,425 | 6,963 | 6,554 | 6,243 |
BPI
entitlement: | | | | |
Class C
distributions | (450) | (450) | (450) | (450) |
Class B
entitlement | (948) | (1,000) | (931) | (1,067) |
Distributable
cash8 | 5,027 | 5,513 | 5,173 | 4,726 |
Interest accrued5 / distributions
payable10 | 5,027 | 5,027 | 5,068 | 4,953 |
Payout Ratio9 | 100.0% | 91.2% | 98.0% | 104.8% |
Distributable cash per Unit8 | 0.345 | 0.378 | 0.350 | 0.338 |
Interest5 / distributions payable per
Unit10 | 0.345 | 0.345 | 0.345 | 0.345 |
OUTLOOK
The Canadian Restaurant and Foodservices
Association has forecast sales growth of 3.0% for the Canadian full-service
restaurant sector in 2012. BPI’s management believes that Boston Pizza is well
positioned to continue outperforming this growth rate by attracting a wide
variety of guests into the restaurant, sports bar and take-out/delivery parts
of each location, offering a compelling value proposition to our guests and
continuing to open new Boston Pizza locations across Canada.
The two principal factors that affect SSSG
are changes in customer traffic and changes in average guest cheque. BPI’s
strategies to drive higher guest traffic include a larger marketing budget
versus the previous year along with a revised calendar of national and local
store promotions. Increased average cheque levels will be achieved through a
combination of menu design and annual re-pricing. In addition, BPI’s franchise
agreement requires that each Boston Pizza restaurant undergo a complete store
renovation every seven years and four locations have already completed
renovations in 2012 with many more underway or planned for later this year.
Restaurants typically close for two to three weeks to complete the renovation
and experience an incremental sales increase in the year following the
re-opening.
Boston Pizza remains well positioned for
future expansion as evidenced by the seven new Boston Pizza restaurants that
opened in 2011. Another new Boston Pizza restaurant has opened to date in 2012
and one more is currently under construction and scheduled to open in March
2012. BPI’s management believe that Boston Pizza will continue to strengthen
its position as the number one casual dining brand in Canada by pursuing further restaurant
development opportunities across the country.
Certain information in this
press release may constitute “forward-looking information” that involves known
and unknown risks, uncertainties, future expectations and other factors which
may cause the actual results, performance or achievements of the Fund, Boston
Pizza Holdings Trust, the Partnership, Boston Pizza Holdings Limited
Partnership, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, Boston
Pizza restaurants, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking information. When used
in this press release, forward-looking information may include words such as
“anticipate”, “estimate”, “may”, “will”, “expect”, “believe”, “plan” and other
similar terminology. This information reflects current expectations regarding
future events and operating performance and speaks only as of the date of this
press release. Except as required by law, the Fund and BPI assume no obligation
to update previously disclosed forward-looking information.
For a complete list of the risks associated
with forward-looking information and our business, please refer to the “Risks
and Uncertainties” and “Note Regarding Forward-Looking Information” sections
included in the Fund’s most recent Management’s Discussion and Analysis for the
Period available at www.sedar.com and www.bpincomefund.com. The trustees of the Fund have approved the contents of this
press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083
investorrelations(at)bostonpizza.com
www.bpincomefund.com
® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trade-marks and unregistered Canadian trade-marks containing the words "Boston", "BP", and/or "Pizza" are trade-marks owned by the Boston Pizza Royalties Limited Partnership and licensed by the Boston Pizza Royalties Limited Partnership to Boston Pizza International Inc.
© Boston Pizza International Inc. 2012
www.bpincomefund.com
1. The
results shown in this column assume that the Units were classified under IFRS
as equity at all times during the applicable period rather than as a financial
liability and that amounts paid
by the Fund to Unitholders during or in respect of the applicable period were
classified under IFRS as distributions rather than interest expense. These results are not audited and are
provided only for information purposes.
See note 7 below and the “Operating Results – Expenses” and
“Operating Results – Distributions” sections of the Fund’s most recent
Management’s Discussion and Analysis for more details.
2. Number of restaurants in the Royalty Pool (as
defined herein) excludes restaurants that permanently closed during the
applicable period.
3. System-wide gross sales means the gross
revenue: (i) of the corporate Boston Pizza restaurants in Canada owned by
BPI; and (ii) reported to BPI by franchised Boston Pizza restaurants in Canada, without audit or
other form of independent assurance, and in the case of both (i) and (ii),
including revenue from the sale of liquor, beer, wine and tobacco and revenue
from BPI approved national promotions and discounts and excluding applicable
sales and similar taxes (“System-wide Gross Sales”).
4. Franchise sales is the basis on which the
royalty is payable; it means the revenues of Boston Pizza Restaurants (as
defined herein) in respect of which the royalty is payable (“Franchise Sales”).
The term “revenue” refers to the gross revenue: (i) of the corporate
Boston Pizza Restaurants in Canada owned by BPI (as defined herein); and
(ii) reported to BPI by franchised Boston Pizza Restaurants in Canada,
without audit or other form of independent assurance, and in the case of both
(i) and (ii), after deducting revenue from the sale of liquor, beer, wine and
tobacco and revenue from BPI approved national promotions and discounts and
excluding applicable sales and similar taxes. Nevertheless, BPI periodically
conducts audits of the Franchise Sales reported to it by its franchisees, and
the Franchise Sales reported herein include results from sales audits of
earlier periods conducted during the year.
5. Units are classified as a financial liability under IFRS
in respect of the period from January 1, 2010 through December 6,
2010, and as a result the amounts paid by the Fund to Unitholders (as
defined herein) in respect of that period are classified as interest expense of
the Fund and not distributions. From and
after December 7, 2010, amounts paid by the Fund to Unitholders are
classified as distributions of the Fund as the Units are classified as equity
from and after December 7, 2010.
See “Operating Results – Expenses” and “Operating Results –
Distributions” of the Fund’s most recent Management’s Discussion and Analysis
for more details.
6. The
Class B general partner units of the Partnership (the “Class B Units”)
and the Class C general partner units of the Partnership (the “Class C
Units”) are classified as financial liabilities under IFRS, and as such,
amounts paid by the Partnership to BPI in respect of the Class B Units and
Class C Units are classified as interest expense and not
distributions. See the “Operating
Results – Expenses” section of the Fund’s Management’s Discussion and Analysis
for more details.
7. Because the
Class B Units are classified as a financial liability under IFRS, the Fund
is required under IFRS to fair value that liability at the end of each period
and adjust for any increase or decrease in the fair value of that liability as
compared to the fair value of that liability at the end of the immediately
preceding period. See the “Operating
Results – Expenses” section of this Management’s Discussion and Analysis for
more details. This adjustment has no
impact on the Fund’s Distributable Cash.
8. Distributable
Cash is a non-IFRS financial measure that does not have a standardized meaning
prescribed by IFRS and therefore may not be comparable to similar measures
presented by other issuers. This non-IFRS financial measure provides useful
information to investors regarding the amount of cash the Fund has available
for distribution on the Units. Investors are cautioned that this should not be
construed as an alternative net income measure of profitability. The tables
above provide a reconciliation from this non-IFRS financial measure to cash
flows from operating activities, which is the most directly comparable IFRS
measure. See the “Operating Results– Distributable Cash / Payout Ratio” section
of this Management’s Discussion and Analysis for more details.
9. Payout
Ratio is calculated by dividing the interest / distributions payable by the
Fund in respect of the applicable period by the Distributable Cash earned in
that period. This non-IFRS financial measure provides investors with useful
information regarding the extent to which the Fund distributes cash on the
Units. Investors are cautioned that this should not be contrued as an
alternative net income measure of profitability.
10. Under the
Declaration of Trust (as defined in the Fund’s Management’s Discussion and
Analysis), the Fund pays interest / distributions on the Units in respect of
any particular calendar month not later than the last business day of the
immediately subsequent month. Accordingly, interest / distributions on the
Units in respect of the calendar month of January are paid no later than the
last business day of February, interest / distributions on the Units in respect
of the calendar month of February are paid no later than the last business day
of March and soforth. Consequently, interest / distributions payable by the
Fund on the Units in respect of the Period (as defined herein) were the October
2011 distribution (which was paid on November 30, 2011), the November 2011
distribution (which was paid on December 30, 2011) and the December 2011
distributions (which was paid on January 31 2012). Similarly, the interest /
distributions payable by the Fund on the Units in respect of any other period
are the interest / distributions paid in the immediately subsequent month of
each month comprising such other period.