For Immediate Release Toronto Stock Exchange: BPF.UN
BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES THIRD QUARTER
FRANCHISE SALES OF $191.5 MILLION AND YTD OF $571.7 MILLION
Strong top line results drive increases in distributable cash per unit of
4.3% for the Period and 3.9% YTD
Highlights
- Franchise
Sales[i] from
royalty pool restaurants for the third quarter of $191.5 million and for
YTD of $571.7 million.
- Positive
same store sales growth of 0.8% for the Period and 2.5% YTD.
- Distributable
Cash[ii] per Unit increases
by 4.2% for the Period and 3.9% YTD versus the same periods, respectively,
in 2012.
- Trustees
declare October distribution to unitholders of 10.2 cents per Unit.
- Boston
Pizza has opened five new full service restaurants so far in 2013 and has
renovated another 31 existing locations to the latest design standards.
VANCOUVER,
BC, November 7, 2013 - Boston Pizza Royalties Income Fund (the “Fund”) and Boston Pizza International
Inc. (“BPI”) reported financial
results today for the third quarter period from July 1, 2013 to September 30,
2013 (the “Period”) and for the year-to-date
period from January 1, 2013 to September 30, 2013 (“YTD”). A copy of this press release, the consolidated interim financial
statements for the Period 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 November 7, 2013 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 December 6, 2013 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 0.8% for the Period and 2.5% YTD compared
to 1.0% and 3.7%, respectively, for the same periods in 2012. Franchise Sales1,
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 Sales1 basis, SSSG was 0.8% for the Period and 2.7%
YTD compared to 0.9% and 3.5%, respectively, for the same periods in 2012. The
positive SSSG in the Period and YTD were principally due to higher take-out and
delivery sales resulting from continued promotion of Boston Pizza’s online
ordering system and menu re-pricing. The positive SSSG results YTD were
achieved in spite of several challenges including the one less day in the period
compared to 2012 due to the leap year in 2012, the poor weather experienced in
many parts of Canada YTD, and the challenging economic conditions experienced
by the Canadian restaurant sector this year. Franchise Sales1 of
restaurants in the royalty pool were $191.5 million for the Period and $571.7
million YTD compared to $186.1 million and $546.3 million YTD in the same
periods, respectively, in 2012. The increases in Franchise Sales1
for the Period and YTD are attributed to the positive SSSG
and the addition of five net new restaurants to the Fund’s royalty pool on January 1, 2013.
“We
are pleased with Boston Pizza’s continued positive sales growth for the third
quarter and year-to-date in 2013,” said Mark Pacinda, President and CEO of BPI.
“Several key initiatives in the period contributed to our results including the
release of our refreshed national menu with many delicious new items, the
launch of new television advertising campaigns and the sale of Boston Pizza
Kids Cards, which helps raise money for charities while attracting families
into our restaurants.”
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. 2013
[i] Franchise sales is the basis on which the royalty is
payable; it means the revenues of Boston Pizza restaurants 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; 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.
[ii] 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 generated for distribution on the
Units. Investors are cautioned that this
should not be construed as an alternative net income measure of
profitability. The related tables in the Fund’s Management
Discussion and Analysis for the Period provide a reconciliation from this
non-IFRS financial measure to cash flows from operating activities, which is
the most directly comparable IFRS measure.
3 Payout Ratio is calculated by dividing the
interest / distributions payable by the Fund in respect of the applicable
period by the Distributable Cash2
generated in that period. Payout Ratio
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 investors with useful information regarding
the extent to which the Fund distributes cash on the Units. Investors are cautioned that this should not
be construed as an alternative net income measure of profitability.
4 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”).
5 Number of restaurants in the Royalty Pool excludes restaurants that permanently closed
during the applicable period.
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.
9
Under the declaration of trust governing the
Fund, the Fund pays distributions on the Units in respect of any particular
calendar month not later than the last business day of the immediately
subsequent month. Accordingly,
distributions on the Units in respect of the calendar month of January are paid
no later than the last business day of February, distributions on the Units in
respect of the calendar month of February are paid no later than the last
business day of March and so forth.
Consequently, distributions payable by the Fund on the Units in respect
of the Period (as defined herein) were the July 2013 distribution (which was paid on August 31,
2013), the August 2013 distribution (which was paid on September 30, 2013)
and the September 2013 distribution (which was paid on October 31,
2013). Similarly, the distributions
payable by the Fund on the Units in respect of any other period are the
distributions paid in the immediately subsequent month of each month comprising
such other period.