Toronto Stock Exchange: BPF.UN
Franchise Sales of $844.5 million for 2017 increased by 1.9%
versus one year ago
Highlights
- System-Wide Gross Sales1 of $275.5 million for the Period and
$1.1 billion for the Year,
representing increases of 1.8% and 1.7%, respectively, versus the
same periods one year ago.
- Franchise Sales2 from royalty pool restaurants of
$207.9 million for the Period and
$844.5 million for the Year,
representing increases of 1.8% and 1.9%, respectively, versus the
same periods one year ago.
- Same store sales growth of positive 0.1% for the Period and
negative 0.3% for the Year.
- Distributable Cash3 per Unit decreased 2.9% for the
Period and decreased 0.6% for the Year.
- Payout Ratio4 of 104.2% for the Period and 100.0%
for the Year. Cash balance at the end of the Year was
$3.3 million.
- Boston Pizza opened eight net new full service restaurants and
completed 28 restaurant renovations in 2017.
- On February 7, 2018, the trustees declared the
January 2018 distribution to
unitholders of 11.5 cents per
Unit.
VANCOUVER, Feb. 8, 2018
/CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and
Boston Pizza International Inc. ("BPI") reported financial
results today for the fourth quarter period from October 1,
2017 to December 31, 2017 (the "Period") and
January 1, 2017 to December 31, 2017 (the
"Year"). A copy of this press release, the annual
consolidated financial statements and related Management's
Discussion and Analysis ("MD&A") 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
February 8, 2018 at 8:30 am Pacific Time (11:30 am
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, 2018 by dialling 1-855-669-9658 or
1-604-674-8052 and entering the access code: 2014 followed by the #
sign. The replay will also be available at
http://www.bpincomefund.com/.
Same store sales growth ("SSSG"), a key driver of
distribution growth for unitholders of the Fund, was positive 0.1%
for the Period and negative 0.3% for the Year compared with
negative 3.1% and negative 0.3%, respectively, for the same periods
in 2016. Franchise Sales, the basis upon which
Royalty5 and Distribution Income5 are paid to
the Fund, exclude revenue from the sale of liquor, beer, wine and
approved national promotions and discounts. On a Franchise
Sales basis, SSSG was negative 0.2% for the Period and negative
0.4% for the Year compared with negative 3.1% and negative 0.5%,
respectively, for the same periods in 2016. The SSSG for the Period
and the Year was attributable to the combined impact of menu
re-pricing, higher online take-out and delivery sales, weak general
economic conditions in regions directly connected to the Canadian
oil and gas industry, the adverse impact of the Saskatchewan 6% provincial sales tax on
restaurant purchased food, and in the case of the Year, having one
less day compared to the same period one year ago. Franchise
Sales of restaurants in the Fund's Royalty Pool were $207.9 million for the Period and
$844.5 million for the Year compared
to $204.1 million and
$828.6 million, respectively for the
same periods in 2016. The $3.8
million increase in Franchise Sales for the Period was
primarily due to the additional Franchise Sales from 11 Net
New Restaurants added to the Royalty Pool on January 1,
2017. The $15.9 million
increase in Franchise Sales for the Year was primarily due to the
additional Franchise Sales from 11 Net New Restaurants added
to the Royalty Pool on January 1, 2017, partially offset by
negative SSSG.
"We are satisfied with our finish to the year with positive SSSG
in the fourth quarter of 2017 and System-Wide Gross Sales
increasing by 1.7% to $1.1 billion for the year. Our results
in 2017 were also driven by the continued investment in the brand
as evidenced by the opening of 11 new Boston Pizza restaurants
and the extensive renovation of our downtown Toronto location showcasing our urban
concept," said Jordan Holm,
President of BPI. "Although we continued to be impacted by
weak economic conditions in oil and gas regions, we started to see
improvements in these areas towards the end of the year and we
continue to see strength in other parts of Canada."
The Fund's net and comprehensive income was $7.1 million for the Period compared to net
and comprehensive income of $8.7 million for fourth quarter of 2016. The
$1.6 million decrease in the
Fund's net and comprehensive income for the Period compared to the
fourth quarter of 2016 was primarily due to a $2.5 million change in fair value
adjustments and lower interest income of $0.5 million, partially offset by lower
interest and financing expenses of $1.0 million. The Fund's net and
comprehensive income was $27.0 million for the Year compared to
$37.8 million in 2016. The
$10.8 million decrease in the
Fund's net and comprehensive income for the Year compared to the
same period in 2016 was primarily due to a $12.5 million change in fair value
adjustments partially offset by lower deferred income tax expense
of $1.2 million and higher
Royalty income of $0.7 million.
For a detailed discussion on the Fund's net and comprehensive
income, please see the "Operating Results – Net and Comprehensive
Income / Basic and Diluted Earnings" section in the Fund's
MD&A for the Period and the Year. The Fund's net income
under International Financial Reporting Standards ("IFRS")
contains non-cash items, such as the fair value adjustments on
financial instruments and deferred income taxes, that do not affect
the Fund's business operations or its ability to pay distributions
to unitholders. In the Fund's view, net income is not the
only or most meaningful measurement of the Fund's ability to pay
distributions. Consequently, the Fund reports the non-IFRS
metrics of Distributable Cash and Payout Ratio to provide investors
with more meaningful information regarding the amount of cash that
the Fund has generated to pay distributions and the extent to which
the Fund has distributed that cash. 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 a reconciliation between cash flow from
operating activities (the most directly comparable IFRS measure)
and Distributable Cash see the "Financial Summary" section of this
press release. For a detailed discussion on the Fund's
Distributable Cash and Payout Ratio, please see the "Operating
Results – Distributable Cash / Payout Ratio" section in the Fund's
MD&A for the Period and the Year.
The Fund generated Distributable Cash of $7.2 million for the Period compared to
$6.9 million for the fourth
quarter of 2016. The increase in Distributable Cash of
$0.3 million or 4.7% was
primarily attributable to the decrease in BPI's Class B Unit
entitlement of $0.3 million as a
result of BPI having exchanged 1,910,597 Class B general
partner units of Boston Pizza Royalties Limited Partnership and
40,815,839 Class 2 general partner units of Boston Pizza
Canada Limited Partnership ("BP Canada LP") for
1,600,000 units of the Fund ("Units") on
September 26, 2017 (the "Unit Exchanges"). The
Fund generated Distributable Cash of $28.6 million for the Year compared to
$28.2 million in 2016. The
increase in Distributable Cash of $0.4 million or 1.3% was primarily due to
higher Royalty income.
The Fund's Distributable Cash per Unit was $0.331 for the Period and $1.379 for the Year compared to $0.341 and $1.388,
respectively, for the same periods in 2016. The decreases in
Distributable Cash per Unit of $0.010
or 2.9% for the Period and $0.009 or
0.6% for the Year, are primarily attributable to there being more
Units outstanding due to the Unit Exchanges, partially offset by
the increase in Distributable Cash noted above.
The Fund's Payout Ratio for the Period was 104.2% and 100.0% for
the Year compared to 101.1% and 98.9%, respectively, in the same
periods in 2016. The increase in the Fund's Payout Ratio for
the Period compared to the same period in 2016 was due to the
combined effects of distributions paid increasing by $0.6 million or 7.9% and Distributable Cash
increasing by $0.3 million or
4.7%. The increase in the Fund's Payout Ratio for the Year
compared to 2016 was due to the combined effects of distributions
paid during the Year increasing by $0.7 million or 2.4% and Distributable Cash
for the Year increasing by $0.4 million or 1.3%. The increase in
distributions paid for the Year compared to the same period one
year ago was due to the Fund increasing the monthly distribution
from 10.83 cents per Unit to 11.5 cents per Unit
beginning with the January 2016 distribution, which was paid
on February 29, 2016 and there being more Units outstanding as
a result of the Unit Exchanges. The Fund strives to provide
unitholders with consistent monthly distributions, and as a result,
the Fund will generally experience seasonal fluctuations in its
Payout Ratio. The Fund's Payout Ratio is likely to be higher
in the first and fourth quarters each year compared to the second
and third quarters each year since Boston Pizza restaurants
generally experience higher Franchise Sales during the summer
months when restaurants open their patios and benefit from
increased tourist traffic. Higher Franchise Sales generally
result in increases in Distributable Cash. A key feature of
the Fund is that it is a "top line" structure, in which BPI and
BP Canada LP pay the Fund an amount based on Franchise
Sales from restaurants in the Fund's royalty pool.
Accordingly, unitholders of the Fund are not directly exposed to
changes in the operating costs or profitability of BPI,
BP Canada LP or 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.
On February 7, 2018, the trustees of the Fund approved a
cash distribution to unitholders of 11.5 cents per Unit in
respect of the period from January 1, 2018 to January 31,
2018. This distribution will be payable on
February 28, 2018 to Unitholders of record at the close
of business on February 21, 2018. The Fund periodically
reviews distribution levels based on its policy of stable and
sustainable distribution flow to unitholders. Including the
January 2018 distribution, which will be paid on
February 28, 2018, the Fund will have paid out 187 consecutive
monthly distributions totaling $279.2 million or $19.38 per Unit. Unitholders have
received 18 distribution increases since the Fund's initial
public offering of Units in 2002.
FINANCIAL SUMMARY
The tables below set out selected
information from the Fund's annual consolidated financial
statements together with other data and should be read in
conjunction with the annual consolidated financial statements and
MD&A of the Fund for the years ended December 31, 2017 and
2016.
For the years
ended December 31
|
2017
|
2016
|
2015
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
System-Wide Gross
Sales
|
1,099,107
|
1,080,559
|
1,059,549
|
Number of restaurants
in Royalty Pool
|
383
|
372
|
366
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
844,496
|
828,619
|
814,001
|
|
|
|
|
Royalty
income
|
33,780
|
33,145
|
32,560
|
Distribution
Income
|
10,904
|
10,700
|
8,173
|
Interest
income
|
1,217
|
1,808
|
1,844
|
Total
revenue
|
45,901
|
45,653
|
42,577
|
Administrative
expenses
|
(1,209)
|
(1,174)
|
(1,226)
|
Interest expense on
debt
|
(2,437)
|
(2,461)
|
(2,084)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(5,818)
|
(6,392)
|
(5,492)
|
Profit before fair
value adjustments and income taxes
|
36,437
|
35,626
|
33,775
|
Fair value adjustment
on investment in BP Canada LP
|
(4,441)
|
24,733
|
(14,869)
|
Fair value adjustment
on Class B Unit liability
|
3,122
|
(12,960)
|
8,546
|
Fair value adjustment
on interest rate swaps
|
1,275
|
702
|
(613)
|
Current and deferred
income tax expense
|
(9,400)
|
(10,336)
|
(7,685)
|
Net and comprehensive
income
|
26,993
|
37,765
|
19,154
|
|
|
|
|
Basic earnings per
Unit
|
1.30
|
1.86
|
1.02
|
Diluted earnings per
Unit
|
1.16
|
1.86
|
0.59
|
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
|
Cash flows from
operating activities
|
36,823
|
36,858
|
33,151
|
|
Class C
GP Unit distributions to BPI
|
(1,200)
|
(1,800)
|
(1,800)
|
|
BPI
Class B Unit entitlement
|
(4,618)
|
(4,522)
|
(3,802)
|
|
Interest paid on
long-term debt
|
(2,440)
|
(2,394)
|
(1,961)
|
|
SIFT Tax on
Units
|
(9)
|
37
|
(24)
|
Distributable
Cash
|
28,556
|
28,179
|
25,564
|
Distributions
paid
|
28,547
|
27,876
|
24,037
|
Payout
Ratio
|
100.0%
|
98.9%
|
94.0%
|
Distributable Cash
per Unit
|
1.379
|
1.388
|
1.364
|
Distributions paid
per Unit
|
1.380
|
1.373
|
1.274
|
|
|
|
|
Other
|
|
|
|
Same store sales
growth
|
(0.3%)
|
(0.3%)
|
1.8%
|
Number of restaurants
opened
|
11
|
13
|
12
|
Number of restaurants
closed
|
3
|
2
|
6
|
As at December
31
|
2017
|
2016
|
2015
|
Total
assets
|
434,939
|
444,332
|
413,174
|
Total
liabilities
|
139,201
|
181,120
|
157,151
|
|
|
|
|
Notes:
|
|
1)
|
"System-Wide Gross
Sales" means the gross revenue: (i) of the corporate Boston
Pizza restaurants in Canada owned by BPI; and (ii) reported to BP
Canada LP 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 revenue from BP Canada LP approved national promotions and
discounts and excluding applicable sales and similar
taxes.
|
2)
|
"Franchise
Sales" is the basis upon which Royalty and Distribution Income
are payable, and means the gross revenue: (i) of the corporate
Boston Pizza restaurants in Canada owned by BPI; and (ii) reported
to BP Canada LP 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 revenue from BP Canada LP approved national
promotions and discounts and excluding applicable sales and similar
taxes. Nevertheless, BP Canada LP 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.
|
3)
|
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. The preceding table provides a
reconciliation from this non-IFRS financial measure to cash flows
from operating activities, which is the most directly comparable
IFRS measure. Investors are cautioned that this should not be
construed as an alternative to cash flows from operating
activities. For additional information regarding this financial
metric, see the heading "Description of Non-IFRS and Additional
IFRS Measures" in the Fund's MD&A for the Period and the
Year.
|
4)
|
Payout Ratio is
calculated by dividing the distributions paid by the Fund during a
period by the Distributable Cash 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. As
the Payout Ratio is calculated from a formula which includes
Distributable Cash, which is a non-IFRS measure, a reconciliation
of Payout Ratio to an IFRS measure is not possible. For additional
information regarding this financial metric, see the heading
"Description of Non-IFRS and Additional IFRS Measures" in the
Fund's MD&A for the Period and the Year.
|
5)
|
The Fund licenses BPI
the right to use various Boston Pizza trademarks in return for BPI
paying the Fund a royalty equal to 4% of Franchise Sales of Boston
Pizza restaurants in the Fund's royalty pool ("Royalty").
"Distribution Income" is income received indirectly by the
Fund on Class 1 LP Units and Class 2 LP Units of BP Canada LP. See
the "Overview – Purpose of the Fund / Sources of Revenue" section
of the Fund's MD&A for the Period and the Year for more
details.
|
6)
|
Profit before fair
value adjustments and income taxes is an additional IFRS measure.
For additional information regarding these financial metrics, see
the heading "Description of Non-IFRS and Additional IFRS Measures"
in the Fund's MD&A for the Period and the Year.
|
7)
|
Other capitalized
terms used in this press release are defined in the Fund's MD&A
for the Period and the
Year.
|
SUMMARY OF QUARTERLY RESULTS
|
Q4
2017
|
Q3
2017
|
Q2
2017
|
Q1 2017
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
|
|
|
System-Wide Gross
Sales
|
275,539
|
286,731
|
275,637
|
261,200
|
Number of restaurants
in Royalty Pool
|
383
|
383
|
383
|
383
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
207,852
|
221,547
|
212,691
|
202,406
|
|
|
|
|
|
Royalty
income
|
8,314
|
8,862
|
8,508
|
8,096
|
Distribution
Income
|
2,797
|
2,863
|
2,686
|
2,558
|
Interest
income
|
9
|
304
|
452
|
452
|
Total
revenue
|
11,120
|
12,029
|
11,646
|
11,106
|
Administrative
expenses
|
(299)
|
(273)
|
(335)
|
(302)
|
Interest expense on
debt
|
(613)
|
(611)
|
(612)
|
(601)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(1,138)
|
(1,727)
|
(1,756)
|
(1,197)
|
Profit before fair
value adjustments and income taxes
|
9,070
|
9,418
|
8,943
|
9,006
|
Fair value adjustment
on investment in BP Canada LP
|
1,146
|
(7,455)
|
2,575
|
(707)
|
Fair value adjustment
on Class B Unit liability
|
(393)
|
4,929
|
(1,561)
|
147
|
Fair value adjustment
on interest rate swaps
|
115
|
668
|
493
|
(1)
|
Current and deferred
income tax expense
|
(2,885)
|
(2,115)
|
(2,527)
|
(1,873)
|
Net and comprehensive
income
|
7,053
|
5,445
|
7,923
|
6,572
|
|
|
|
|
|
Basic earnings per
Unit
|
0.32
|
0.27
|
0.39
|
0.32
|
Diluted earnings per
Unit
|
0.32
|
0.02
|
0.39
|
0.26
|
|
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
|
|
Cash flows from
operating activities
|
8,749
|
9,953
|
9,379
|
8,742
|
|
Class C
GP Unit distributions to BPI
|
-
|
(300)
|
(450)
|
(450)
|
|
BPI
Class B Unit entitlement
|
(871)
|
(1,113)
|
(1,304)
|
(1,330)
|
|
Interest paid on
long-term
debt
|
(605)
|
(615)
|
(619)
|
(601)
|
|
SIFT Tax on
Units
|
(24)
|
(5)
|
53
|
(33)
|
Distributable
Cash
|
7,249
|
7,920
|
7,059
|
6,328
|
Distributions
paid
|
7,551
|
6,999
|
6,998
|
6,999
|
Payout
Ratio
|
104.2%
|
88.4%
|
99.1%
|
110.6%
|
Distributable Cash
per Unit
|
0.331
|
0.389
|
0.348
|
0.312
|
Distributions paid
per Unit
|
0.345
|
0.345
|
0.345
|
0.345
|
|
|
|
|
|
Other
|
|
|
|
|
Same store sales
growth
|
0.1%
|
0.4%
|
(1.6%)
|
0.0%
|
Number of restaurants
opened
|
7
|
2
|
1
|
1
|
Number of restaurants
closed
|
0
|
1
|
1
|
1
|
SUMMARY OF QUARTERLY RESULTS (continued)
|
|
|
|
Q4 2016
|
Q3 2016
|
Q2 2016
|
Q1
2016
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
|
|
System-Wide Gross
Sales
|
270,800
|
281,538
|
274,039
|
254,182
|
Number of restaurants
in Royalty Pool
|
372
|
372
|
372
|
372
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
204,121
|
215,597
|
210,852
|
198,049
|
|
|
|
|
|
Royalty
income
|
8,165
|
8,624
|
8,434
|
7,922
|
Distribution
Income
|
2,617
|
2,790
|
2,728
|
2,565
|
Interest
income
|
452
|
452
|
452
|
452
|
Total
revenue
|
11,234
|
11,866
|
11,614
|
10,939
|
Administrative
expenses
|
(299)
|
(292)
|
(296)
|
(287)
|
Interest expense on
debt
|
(620)
|
(619)
|
(612)
|
(610)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(2,184)
|
(1,551)
|
(1,573)
|
(1,084)
|
Profit before fair
value adjustments and income taxes
|
8,131
|
9,404
|
9,133
|
8,958
|
Fair value adjustment
on investment in BP Canada LP
|
5,098
|
9,237
|
6,511
|
3,887
|
Fair value adjustment
on Class B Unit liability
|
(2,668)
|
(4,833)
|
(3,407)
|
(2,052)
|
Fair value adjustment
on interest rate swaps
|
967
|
171
|
7
|
(443)
|
Current and deferred
income tax expense
|
(2,782)
|
(3,473)
|
(2,240)
|
(1,841)
|
Net and comprehensive
income
|
8,746
|
10,506
|
10,004
|
8,509
|
|
|
|
|
|
Basic earnings per
Unit
|
0.43
|
0.52
|
0.49
|
0.42
|
Diluted earnings per
Unit
|
0.43
|
0.52
|
0.49
|
0.42
|
|
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
|
|
Cash flows from
operating activities
|
9,128
|
9,718
|
9,323
|
8,689
|
|
Class C
GP Unit distributions to BPI
|
(450)
|
(450)
|
(450)
|
(450)
|
|
BPI
Class B Unit entitlement
|
(1,134)
|
(1,108)
|
(1,119)
|
(1,161)
|
|
Interest paid on
long-term debt
|
(612)
|
(560)
|
(617)
|
(605)
|
|
SIFT Tax on
Units
|
(7)
|
27
|
(20)
|
37
|
Distributable
Cash
|
6,925
|
7,627
|
7,117
|
6,510
|
Distributions
paid
|
6,999
|
6,999
|
6,998
|
6,880
|
Payout
Ratio
|
101.1%
|
91.8%
|
98.3%
|
105.7%
|
Distributable Cash
per Unit
|
0.341
|
0.376
|
0.351
|
0.320
|
Distributions paid
per Unit
|
0.345
|
0.345
|
0.345
|
0.338
|
|
|
|
|
|
Other
|
|
|
|
|
Same store sales
growth
|
(3.1%)
|
(0.5%)
|
2.1%
|
0.6%
|
Number of restaurants
opened
|
5
|
4
|
4
|
0
|
Number of restaurants
closed
|
0
|
0
|
0
|
2
|
OUTLOOK
Boston Pizza is well positioned for future growth and should
continue to strengthen its position as the number one casual dining
brand in Canada by achieving
positive SSSG and opening 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
and BP Canada LP's strategies to drive higher guest
traffic include attracting a wide variety of guests into the
restaurant, sports bar and take-out and delivery parts of each
location, offering a compelling value proposition to guests and
leveraging a larger marketing budget versus the previous year along
with a revised calendar of national and local store
promotions. Increased average cheque levels are expected to
be achieved through a combination of culinary innovation and annual
menu re-pricing. In addition, the franchise agreement
governing each Boston Pizza restaurant requires a complete store
renovation every seven years. 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 eight net new restaurants that opened in
2017. There are currently two new locations under
construction. BPI's management believes that Boston Pizza
will continue to serve more guests in more locations than any other
casual dining brand in Canada by
pursuing further restaurant development opportunities across the
country.
ABOUT US
The Fund is a limited purpose open ended trust with an
excellent track record for investors since its IPO in 2002.
Including the January 2018 distribution which is payable on
February 28, 2018, the Fund has delivered 18 distribution
increases and 187 consecutive monthly distributions to unitholders
totaling $279.2 million or $19.38 per unit since 2002. The Fund
earns revenue based on the franchise system sales from the 391
Boston Pizza restaurants included in the Fund's royalty
pool.
BPI is Canada's number one
casual dining brand with annual gross sales in excess of
$1.0 billion serving more than
50 million guests through over 390 mainly franchisee
operated restaurants. The Boston Pizza brand has
successfully existed for over 50 years since opening its first
restaurant in Edmonton, Alberta in
1964. BPI has been recognized as a Platinum Member of
Canada's 50 Best Managed Companies
and has been a Franchisees' Choice Designation winner for seven
consecutive years.
Certain information in this press release constitutes
"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, Boston Pizza Royalties Limited
Partnership, Boston Pizza Holdings Limited Partnership, Boston
Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, BP Canada LP,
Boston Pizza Canada Holdings Inc., Boston Pizza Canada Holdings
Partnership, 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. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Fund or management of
BPI expects or anticipates will or may occur in the future,
including such things as, seasonal fluctuations in the Payout
Ratio, the Payout Ratio is likely to be higher in the first and
fourth quarters, higher Franchise Sales generally result in
increases in Distributable Cash, a Payout Ratio close to 100% will
be maintained, trustees of the Fund will continue to distribute all
available cash in order to maximize returns to unitholders, Boston
Pizza being well positioned for future growth, the strengthening of
Boston Pizza's position as the number one casual dining brand in
Canada, the achievement of
positive SSSG, opening of new restaurants, increases in average
guest cheques levels, incremental sales increasing after store
renovations, plans to pursue restaurant development opportunities,
the impact of the economy and the improvements in the economic
conditions in specified regions, and other such matters are
forward-looking information. When used in this press release,
forward-looking information may include words such as "anticipate",
"estimate", "may", "will", "expect", "believe", "plan", "should",
"continue" and other similar terminology. The material
factors and assumptions used to develop the forward-looking
information contained in this press release include the following:
future results being similar to historical results, expectation
related to future general economic conditions, business plans,
receipt of franchise fees and other amounts, franchisees access to
financing, pace of commercial real estate development, protection
of intellectual property rights of Boston Pizza Royalties Limited
Partnership and absence of changes of laws. Risks, uncertainties
and other factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievement expressed or implied by the
forward-looking information contained herein, relate to (among
others) competition, demographic trends, consumer preferences and
discretionary spending patterns, business and economic conditions,
legislation and regulation, Distributable Cash and reliance on
operating revenues, accounting policies and practices, the results
of operations and financial condition of BPI, BP Canada LP and the
Fund, as well as those factors discussed under the heading "Risks
and Uncertainties" in the most recent Annual Information Form of
the Fund. 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 the Fund's
business, please refer to the "Risks and Uncertainties" and "Note
Regarding Forward-Looking Information" sections included in the
Fund's MD&A for the Period and the Year available at
www.sedar.com and www.bpincomefund.com.
The trustees of the Fund approved the contents of this press
release.
SOURCE Boston Pizza Royalties Income Fund