Toronto Stock Exchange: BPF.UN
Franchise Sales of $204.0 million for the first quarter of 2018
increased by 0.8% versus one year ago
Highlights
- System-Wide Gross Sales1 of $265.5 million for the Period representing an
increase of 1.7% versus the same period one year ago.
- Franchise Sales2 from royalty pool restaurants of
$204.0 million for the Period
representing an increase of 0.8% versus the same period one year
ago.
- Same store sales growth of 0.2% for the Period compared to 0.0%
for the same period one year ago.
- Distributable Cash3 per Unit decreased 2.2% for the
Period to 30.5 cents versus
31.2 cents for the same period one
year ago.
- Payout Ratio4 of 113.1% for the Period compared to
110.6% for the same period one year ago and 100.7% on a trailing
12-month basis. Cash balance at the end of the Period was
$2.4 million.
- Effective January 1, 2018, the
British Columbia provincial
government increased the general corporate income tax rate by 1%,
which increased the Fund's SIFT tax rate by 1% to 27%. The decrease
in Distributable Cash per Unit and the increase in Payout Ratio
compared to the same periods in 2017 were principally due to the 1%
increase in SIFT Tax.
- Trustees declared the April 2018
distribution to unitholders of 11.5
cents per Unit.
VANCOUVER, May 15, 2018 /CNW/ - Boston Pizza Royalties
Income Fund (the "Fund") and Boston Pizza International Inc.
("BPI") reported financial results today for the first
quarter period from January 1, 2018 to March 31, 2018 (the "Period"). A
copy of this press release, the condensed consolidated interim
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 May 15, 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 June 15, 2018 by dialling
1-855-669-9658 or 1-604-674-8052 and entering the access code: 2204
followed by the # sign. The replay will also be available at
www.bpincomefund.com.
Same store sales growth ("SSSG"), a key driver of distribution
growth for unitholders of the Fund, was positive 0.2% for the
Period compared with 0.0% reported in the first quarter of
2017. 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 0.8% for the Period compared with
negative 0.3% for the first quarter of 2017. The SSSG for the
Period was attributable to menu re‑pricing, offset by weak general
economic conditions in regions directly connected to the Canadian
oil and gas industry and the adverse impact of the Saskatchewan 6% provincial sales tax on
restaurant purchased food. Franchise Sales of restaurants in the
Fund's Royalty Pool were $204.0 million for the Period compared to
$202.4 million for the first
quarter of 2017. The $1.6
million increase in Franchise Sales for the Period was
primarily due to the additional Franchise Sales from eight Net New
Restaurants added to the Royalty Pool on January 1, 2018,
partially offset by negative SSSG on a Franchise Sales basis.
"We continue to see weak general economic conditions in regions
directly connected to the Canadian oil and gas industry and results
in the first quarter reflect the impact of these ongoing
challenges," said Jordan Holm,
President of BPI. "We are excited about several initiatives
underway for the year that we expect will drive results going
forward, including our thin crust creations promotion that launched
in April introducing five new recipes of thin crust pizzas with
gourmet toppings."
The Fund's net and comprehensive income was $2.4 million for the Period compared to net
and comprehensive income of $6.6 million for first quarter of 2017.
The $4.2 million decrease
in the Fund's net and comprehensive income for the Period compared
to the first quarter of 2017 was primarily due to a $5.5 million change in fair value adjustments and
lower interest income of $0.5
million, partially offset by lower income taxes of
$1.1 million and lower interest and
financing expenses of $0.5 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. 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.
The Fund generated Distributable Cash of $6.7 million for the Period compared to
$6.3 million for the first
quarter of 2017. The increase in Distributable Cash of
$0.4 million or 5.5% was
primarily attributable to a decrease in BPI's entitlement related
to Class B general partner units ("Class B Units") of
Boston Pizza Royalties Limited Partnership ("Royalties LP") of
$0.4 million as a result of BPI
having exchanged 1,910,597 Class B Units for
1,191,851 units of the Fund ("Units") on September 26,
2017 and higher Royalty and Distribution Income of $0.2 million, partially offset by higher SIFT Tax
of $0.2 million. The
Class C Exchange7 was cash neutral to the Fund as
lower interest expense on Class C GP Units to BPI was offset
by lower interest received on the BP Loan.
The Fund generated Distributable Cash per Unit of $0.305 for the Period compared to $0.312 per Unit for the first quarter of
2017. The decrease in Distributable Cash per Unit of
$0.007 or 2.2% was primarily
attributable to the British
Columbia provincial government increasing the general
corporate income tax rate by 1% effective January 1, 2018,
which increased the Fund's SIFT tax rate by 1% to 27% for the
Period.
The Fund's Payout Ratio for the Period was 113.1% compared to
110.6% in the same period in 2017. The increase in the Fund's
Payout Ratio for the Period compared to the same period in 2017 was
due to the combined effects of distributions paid increasing by
$0.6 million or 7.9% and
Distributable Cash increasing by $0.4
million or 5.5%. 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. On a trailing 12-month
basis, the Fund's Payout Ratio was 100.7% as at March 31, 2018. A key feature of the Fund
is that it is a "top line" structure, in which BPI and Boston Pizza
Canada Limited Partnership ("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 May 8, 2018, the trustees of
the Fund approved a cash distribution to unitholders of
11.5 cents per Unit in respect of the period from
April 1, 2018 to April 30, 2018. This distribution will
be payable on May 31, 2018 to unitholders of record at the
close of business on May 21,
2018. The Fund periodically reviews distribution levels based
on its policy of stable and sustainable distribution flow to
unitholders. Including the April
2018 distribution, which will be paid on May 31, 2018, the Fund will have paid out 190
consecutive monthly distributions totaling $286.7 million or $19.72 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
condensed consolidated interim financial statements together with
other data and should be read in conjunction with the condensed
consolidated interim financial statements and MD&A of the Fund
for the three month periods ended March 31,
2018 and 2017.
|
|
|
For the periods
ended March 31
|
Q1 2018
|
Q1 2017
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
|
|
System-Wide Gross
Sales
|
265,535
|
261,200
|
Number of restaurants
in Royalty Pool
|
391
|
383
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
204,037
|
202,406
|
|
|
|
Royalty
income
|
8,161
|
8,096
|
Distribution
Income
|
2,722
|
2,558
|
Interest
income
|
9
|
452
|
Total
revenue
|
10,892
|
11,106
|
Administrative
expenses
|
(326)
|
(302)
|
Interest expense on
debt
|
(649)
|
(601)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(641)
|
(1,197)
|
Profit before fair
value adjustments and income taxes
|
9,276
|
9,006
|
Fair value adjustment
on investment in BP Canada LP
|
(10,148)
|
(707)
|
Fair value adjustment
on Class B Unit liability
|
4,054
|
147
|
Fair value adjustment
on interest rate swaps
|
5
|
(1)
|
Current and deferred
income tax expense
|
(775)
|
(1,873)
|
Net and comprehensive
income
|
2,412
|
6,572
|
|
|
|
Basic earnings per
Unit
|
0.11
|
0.32
|
Diluted earnings per
Unit
|
(0.07)
|
0.26
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
Cash flows from
operating activities
|
8,290
|
8,742
|
|
|
Class C GP Unit
distributions to
BPI
|
-
|
(450)
|
|
|
BPI Class B Unit
entitlement
|
(950)
|
(1,330)
|
|
Interest paid on
long-term debt
|
(671)
|
(601)
|
|
SIFT Tax on
Units
|
|
(33)
|
Distributable
Cash
|
6,674
|
6,328
|
Distributions
paid
|
7,551
|
6,999
|
Payout
Ratio
|
113.1%
|
110.6%
|
Distributable Cash
per Unit
|
0.305
|
0.312
|
Distributions paid
per Unit
|
0.345
|
0.345
|
|
|
|
Other
|
|
|
Same store sales
growth
|
0.2%
|
0.0%
|
Number of restaurants
opened
|
0
|
1
|
Number of restaurants
closed
|
1
|
1
|
|
|
Mar 31,
2018
|
Dec 31,
2017
|
Total
assets
|
430,887
|
434,939
|
Total
liabilities
|
137,771
|
139,201
|
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. Management
believes that 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.
|
4)
|
Payout Ratio is
calculated by dividing the aggregate 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. Management believes that this non-IFRS
financial measure provides investors with useful information
regarding the extent to which the Fund distributes cash on the
Units. 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.
|
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 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.
|
7)
|
Prior to
September 26, 2017, BPI owed the Fund $24.0 million
pursuant to a credit agreement that was acquired by the Fund as
part of the Fund's initial public offering of Units that occurred
on July 17, 2002 (the "BP Loan"). Interest
accrued on all amounts outstanding under the BP Loan at the rate of
7.5% per annum and interest was payable in arrears by BPI to the
Fund on the first day of each month. The principal amount,
together with all accrued and unpaid interest, outstanding under
the BP Loan was to become due and payable on July 17,
2042. On September 26, 2017, BPI exchanged
2,400,000 Class C general partner units of
Royalties LP ("Class C GP Units") for the
assumption by Boston Pizza Holdings Limited Partnership
("Holdings LP") of BPI's obligation to pay the Fund the
BP Loan (the "Class C Exchange"). As part of
the Class C Exchange, Holdings LP received
2,400,000 Class C limited partner units of
Royalties LP, which entitle Holdings LP to receive the
monthly distributions from Royalties LP that BPI previously
received on the Class C GP Units. Immediately following
the Class C Exchange, the Fund and its subsidiaries
capitalized and eliminated the BP Loan.
|
8)
|
Other capitalized
terms used in this press release are defined in the Fund's MD&A
for the Period.
|
SUMMARY OF QUARTERLY RESULTS
|
|
|
|
|
|
Q1
2018
|
Q4
2017
|
Q3
2017
|
Q2 2017
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
|
|
|
|
System-Wide Gross
Sales
|
265,535
|
275,539
|
286,731
|
275,637
|
Number of restaurants
in Royalty Pool
|
391
|
383
|
383
|
383
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
204,037
|
207,852
|
221,547
|
212,691
|
|
|
|
|
|
Royalty
income
|
8,161
|
8,314
|
8,862
|
8,508
|
Distribution
Income
|
2,722
|
2,797
|
2,863
|
2,686
|
Interest
income
|
9
|
9
|
304
|
452
|
Total
revenue
|
10,892
|
11,120
|
12,029
|
11,646
|
Administrative
expenses
|
(326)
|
(299)
|
(273)
|
(335)
|
Interest expense on
debt
|
(649)
|
(613)
|
(611)
|
(612)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(641)
|
(1,138)
|
(1,727)
|
(1,756)
|
Profit before fair
value adjustments and income taxes
|
9,276
|
9,070
|
9,418
|
8,943
|
Fair value adjustment
on investment in BP Canada LP
|
(10,148)
|
1,146
|
(7,455)
|
2,575
|
Fair value adjustment
on Class B Unit liability
|
4,054
|
(393)
|
4,929
|
(1,561)
|
Fair value adjustment
on interest rate swaps
|
5
|
115
|
668
|
493
|
Current and deferred
income tax expense
|
(775)
|
(2,885)
|
(2,115)
|
(2,527)
|
Net and comprehensive
income
|
2,412
|
7,053
|
5,445
|
7,923
|
|
|
|
|
|
Basic earnings per
Unit
|
0.11
|
0.32
|
0.27
|
0.39
|
Diluted earnings
(loss) per Unit
|
(0.07)
|
0.32
|
0.02
|
0.39
|
|
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
|
|
Cash flows from
operating activities
|
8,290
|
8,749
|
9,953
|
9,379
|
|
|
Class C GP Unit
distributions to BPI
|
-
|
-
|
(300)
|
(450)
|
|
|
BPI Class B Unit
entitlement
|
(950)
|
(871)
|
(1,113)
|
(1,304)
|
|
Interest paid on
long-term debt
|
(671)
|
(605)
|
(615)
|
(619)
|
|
SIFT Tax on
Units
|
5
|
(24)
|
(5)
|
53
|
Distributable
Cash
|
6,674
|
7,249
|
7,920
|
7,059
|
Distributions
paid
|
7,551
|
7,551
|
6,999
|
6,998
|
Payout
Ratio
|
113.1%
|
104.2%
|
88.4%
|
99.1%
|
Distributable Cash
per Unit
|
0.305
|
0.331
|
0.389
|
0.348
|
Distributions paid
per Unit
|
0.345
|
0.345
|
0.345
|
0.345
|
|
|
|
|
|
Other
|
|
|
|
|
Same store sales
growth
|
0.2%
|
0.1%
|
0.4%
|
(1.6%)
|
Number of restaurants
opened
|
0
|
7
|
2
|
1
|
Number of restaurants
closed
|
1
|
0
|
1
|
1
|
SUMMARY OF QUARTERLY RESULTS (continued)
|
|
|
|
|
|
Q1 2017
|
Q4 2016
|
Q3 2016
|
Q2
2016
|
(in thousands of
dollars – except restaurants, SSSG, Payout Ratio and per Unit
items)
|
|
|
|
|
System-Wide Gross
Sales
|
261,200
|
270,800
|
281,538
|
274,039
|
Number of restaurants
in Royalty Pool
|
383
|
372
|
372
|
372
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
202,406
|
204,121
|
215,597
|
210,852
|
|
|
|
|
|
Royalty
income
|
8,096
|
8,165
|
8,624
|
8,434
|
Distribution
Income
|
2,558
|
2,617
|
2,790
|
2,728
|
Interest
income
|
452
|
452
|
452
|
452
|
Total
revenue
|
11,106
|
11,234
|
11,866
|
11,614
|
Administrative
expenses
|
(302)
|
(299)
|
(292)
|
(296)
|
Interest expense on
debt
|
(601)
|
(620)
|
(619)
|
(612)
|
Interest expense on
Class B Unit and Class C GP Unit liabilities
|
(1,197)
|
(2,184)
|
(1,551)
|
(1,573)
|
Profit before fair
value adjustments and income taxes
|
9,006
|
8,131
|
9,404
|
9,133
|
Fair value adjustment
on investment in BP Canada LP
|
(707)
|
5,098
|
9,237
|
6,511
|
Fair value adjustment
on Class B Unit liability
|
147
|
(2,668)
|
(4,833)
|
(3,407)
|
Fair value adjustment
on interest rate swaps
|
(1)
|
967
|
171
|
7
|
Current and deferred
income tax expense
|
(1,873)
|
(2,782)
|
(3,473)
|
(2,240)
|
Net and comprehensive
income
|
6,572
|
8,746
|
10,506
|
10,004
|
|
|
|
|
|
Basic earnings per
Unit
|
0.32
|
0.43
|
0.52
|
0.49
|
Diluted earnings per
Unit
|
0.26
|
0.43
|
0.52
|
0.49
|
|
|
|
|
|
Distributable Cash /
Distributions / Payout Ratio
|
|
|
|
|
Cash flows from
operating activities
|
8,742
|
9,128
|
9,718
|
9,323
|
|
|
Class C GP Unit
distributions to BPI
|
(450)
|
(450)
|
(450)
|
(450)
|
|
|
BPI Class B Unit
entitlement
|
(1,330)
|
(1,134)
|
(1,108)
|
(1,119)
|
|
Interest paid on
long-term debt
|
(601)
|
(612)
|
(560)
|
(617)
|
|
SIFT Tax on
Units
|
(33)
|
(7)
|
27
|
(20)
|
Distributable
Cash
|
6,328
|
6,925
|
7,627
|
7,117
|
Distributions
paid
|
6,999
|
6,999
|
6,999
|
6,998
|
Payout
Ratio
|
110.6%
|
101.1%
|
91.8%
|
98.3%
|
Distributable Cash
per Unit
|
0.312
|
0.341
|
0.376
|
0.351
|
Distributions paid
per Unit
|
0.345
|
0.345
|
0.345
|
0.345
|
|
|
|
|
|
Other
|
|
|
|
|
Same store sales
growth
|
0.0%
|
(3.1%)
|
(0.5%)
|
2.1%
|
Number of restaurants
opened
|
1
|
5
|
4
|
4
|
Number of restaurants
closed
|
1
|
0
|
0
|
0
|
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 five 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 April 2018 distribution which is payable on
May 31, 2018, the Fund has delivered
18 distribution increases and 190 consecutive monthly distributions
to unitholders totaling $286.7 million or
$19.72 per unit since 2002.
The Fund earns revenue based on the franchise system sales of
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 of $1.1 billion serving more than
50 million guests through 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 and expansion, 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 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 available at www.sedar.com and
www.bpincomefund.com.
The trustees of the Fund approved the contents of this press
release.
® 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.
SOURCE Boston Pizza Royalties Income Fund