Toronto Stock Exchange: BPF.UN
July 2022
distribution increased to $0.100 per
unit from $0.085 per unit
Highlights
- Franchise Sales1 of $219.4
million for the Period and $398.0
million YTD, representing an increase of 62.7% and 50.8%,
respectively, versus the same periods one year ago.
- Same Restaurant Sales2 of 64.9% for the Period and
52.3% YTD. As COVID-19 began to adversely affect sales in
Boston Pizza restaurants in March of 2020, the Fund believes that
it is also useful to calculate and report SRS comparing 2022
Franchise Sales to 2019 Franchise Sales. If SRS were
calculated comparing Franchise Sales in the Period and YTD to
Franchise Sales in the same periods in 2019, SRS would be positive
4.6% and negative 2.8%, respectively.
- Cash flows generated from operating activities of $9.1 million for the Period and $15.8 million YTD, representing an increase of
41.4% and 27.5%, respectively, versus the same periods one year
ago.
- Distributable Cash3 increased 53.4% for the Period
and 41.4% YTD, and Distributable Cash per Unit4
increased 53.5% for the Period and 41.5% YTD.
- Payout Ratio5 of 88.9% for the Period, 100.9% YTD
and 87.5% on a trailing 12-month basis. Cash balance at the
end of the Period was $5.0
million.
- As previously announced on June 28,
2022, the Fund and BPI renewed their respective credit
agreements with favourable terms and extended the maturity to
July 1, 2026.
- On August 4, 2022, the trustees
of the Fund declared a distribution for the period of July 1, 2022 to July 31,
2022 of $0.100 per unit of the
Fund, which will be payable on August 31,
2022 to unitholders of the Fund ("Unitholders") of
record on August 21, 2022. This is an
increase of $0.015 per Unit, or
17.6%, from the previous monthly distribution rate of $0.085 per Unit.
VANCOUVER, BC, Aug. 5, 2022
/CNW/ - 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, 2022
to June 30, 2022 (the "Period") and January 1,
2022 to June 30, 2022 ("YTD"). 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 August 5, 2022 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
September 5, 2022 by dialling 1-800-319-6413 or 604-638-9010
and entering the access code: 9115 followed by the # sign. The
replay will also be available at www.bpincomefund.com. Capitalized
terms used in this press release that are not otherwise defined
have the meanings ascribed to them in the Fund's MD&A for the
Period and YTD.
"The Fund is pleased to announce a 17.6% increase to the monthly
cash distribution rate to unitholders. The second quarter
generated the strongest sales results for Boston Pizza since the
start of the COVID-19 pandemic," said Marc
Guay, Chair of the Board of Trustees. "The trustees
are pleased to see Boston Pizza franchise sales results exceed
pre-pandemic levels. However, the trustees remain cautious and will
continue to closely monitor the Fund's available cash balances and
distribution levels, based on our goal of stable and sustainable
distribution flow to unitholders."
COVID-19 continues to impact the business of the Fund, BPI and
Boston Pizza Canada Limited Partnership ("BP Canada LP"), and the
operation of Boston Pizza restaurants. Despite the impact of
COVID-19, Franchise Sales of Boston Pizza restaurants in the
Royalty Pool, and the resulting Royalty and Distribution Income,
for July 2022 increased by
approximately 6.1% compared to July
2021 and approximately 4.6% compared to July 2019. SRS for July
2022 was approximately 6.5% when compared to the same period
in 2021 and approximately 8.3% when compared to the same period in
2019.
Period AND YTD Results
SRS, a key driver of distribution growth for Unitholders, was
positive 64.9% for the Period compared to 27.0% reported in the
second quarter of 2021. If SRS were calculated comparing Franchise
Sales in the Period to Franchise Sales for the same period in 2019,
SRS would be positive 4.6%. SRS was positive 52.3% YTD compared to
negative 5.1% reported year-to-date in 2021. If SRS were calculated
comparing Franchise Sales YTD to Franchise Sales year-to-date in
2019, SRS would be negative 2.8%. The increase in SRS during the
Period and YTD was principally due to increases in restaurant guest
traffic mainly due to the easing and elimination of dining
restrictions.
Franchise Sales of Boston Pizza restaurants in the Royalty Pool
were $219.4 million for the Period
and $398.0 million YTD compared to
$134.8 million and $263.8 million, respectively, for the same
periods one year ago. The $84.5
million increase in Franchise Sales for the Period and
$134.2 million increase in Franchise
Sales YTD were primarily due to positive SRS.
The Fund's net and comprehensive income was $1.8 million for the Period compared to
$7.7 million for the second quarter
of 2021. The $6.0 million
decrease in the Fund's net and comprehensive income for the Period
compared to the second quarter of 2021 was primarily due to an
increase in fair value loss of $10.4
million and an increase in interest expense on Class B Units
of $0.1 million, partially offset by
higher Royalty and Distribution Income of $4.5 million and a decrease in income tax expense
of $0.2 million. The Fund's net and
comprehensive income was $14.7
million YTD compared to $19.3
million year-to-date in 2021. The $4.6 million decrease in the Fund's net and
comprehensive income YTD compared to the same period in 2021 was
due to a decrease in fair value gain of
$9.7 million, an increase in income
tax expense of $1.7 million and an
increase in interest expense on Class B Units of $0.3 million, partially offset by higher Royalty
and Distribution Income of $7.1
million.
The Fund's cash flows generated from operating activities was
$9.1 million compared to $6.4 million in the second quarter of 2021. The
increase of $2.7 million was due to
an increase of Royalty and Distribution Income of $4.5 million, partially offset by a decrease in
changes in working capital of $0.8
million and an increase in income taxes paid of $0.9 million. The Fund's cash flows generated
from operating activities YTD was $15.8
million compared to $12.4
million for the same period one year ago. The increase of
$3.4 million was due to an increase
of Royalty and Distribution Income of $7.1
million, partially offset by a decrease in changes in
working capital of $2.1 million and
an increase in income taxes paid of $1.5
million.
The Fund generated Distributable Cash of $6.2 million for the Period compared to
$4.0 million for the second quarter
of 2021. The increase in Distributable Cash of $2.2 million or 53.4% was primarily due to an
increase in cash flow generated from operating activities of
$2.7 million, partially offset by
increased BPI Class B Unit entitlement of $0.4 million and increased SIFT Tax on Units of
$0.2 million. The Fund
generated Distributable Cash of $10.9
million YTD compared to $7.7
million year-to-date in 2021. The increase in Distributable
Cash of $3.2 million or 41.4% was
primarily due to an increase in cash flow generated from operating
activities of $3.4 million and a
decrease in repayments of long-term debt of $0.6 million, partially offset by increased BPI
Class B Unit entitlement of $0.6
million and increased SIFT Tax on Units of $0.2 million.
The Fund generated Distributable Cash per Unit of $0.287 for the Period compared to $0.187 per Unit for the second quarter of
2021. The increase in Distributable Cash per Unit of
$0.100 or 53.5% was primarily
attributable to the increase in Distributable Cash outlined
above. The Fund generated Distributable Cash per Unit of
$0.505 YTD compared to
$0.357 per Unit year-to-date in
2021. The increase in Distributable Cash per Unit of
$0.148 or 41.5% was primarily
attributable to the increase in Distributable Cash outlined
above.
The Fund's Payout Ratio for the Period was 88.9% compared to
104.3% in the second quarter of 2021. The decrease in the Fund's
Payout Ratio for the Period was due to Distributable Cash
increasing by $2.2 million or 53.4%,
partially offset by distributions paid increasing by $1.3 million or 30.8%. The Fund's Payout Ratio
YTD was 100.9% compared to 165.1% year-to-date in 2021. The
decrease in the Fund's Payout Ratio YTD was due to Distributable
Cash increasing by $3.2 million or
41.4% and distributions paid decreasing by $1.7 million or 13.6%. Payout Ratio is
calculated by dividing the amount of distributions paid during the
applicable period by the Distributable Cash for that period.
Accordingly, the Payout Ratio for year-to-date in 2021 factors in
the Special Distribution (as defined below) that was paid on
January 29, 2021 even though the cash generated to fund the
Special Distribution was generated during 2020. If the
Special Distribution was excluded in the calculation of Payout
Ratio for year-to-date 2021, the Payout Ratio would be
109.1%. The Fund's Payout Ratio is typically higher in the
first and fourth quarters compared to the second and third quarters
since Boston Pizza restaurants generally experience higher
Franchise Sales levels during the summer months when restaurants
open their patios and benefit from increased tourist traffic. On a
trailing 12-month basis, the Fund's Payout Ratio was 87.5% as at
June 30, 2022.
DISTRIBUTIONS
During the Period, the Fund declared and paid distributions on
the Units in the aggregate amount of $5.5
million or $0.255 per
Unit. During the second quarter of 2021, the Fund declared
and paid distributions on the Units in the aggregate amount of
$4.2 million or $0.195 per Unit. The amount of distributions
declared and paid during the Period increased by $1.3 million or $0.060 per Unit due to the monthly distribution
rate increasing from $0.065 per Unit
to $0.085 per Unit commencing with
the September 2021
distribution. YTD, the Fund declared distributions on the
Units in the aggregate amount of $9.1
million or $0.425 per Unit.
During the same period in 2021, the Fund declared distributions on
the Units in the aggregate amount of $7.0
million or $0.325 per
Unit. YTD, the Fund paid distributions on the Units in the
aggregate amount of $11.0 million or
$0.510 per Unit. During the same
period in 2021, the Fund paid distributions on the Units in the
aggregate amount of $12.7 million or
$0.590 per Unit. The amount of
distributions declared YTD increased by $2.1
million or $0.100 per Unit due
to due to the monthly distribution rate increasing from
$0.065 per Unit to $0.085 per Unit commencing with the September 2021 distribution. The amount of
distributions paid YTD decreased by $1.7
million or $0.080 per Unit due
to a combination of the special distribution of $0.200 per Unit, that was declared on
December 16, 2020 and paid on
January 29, 2021 to Unitholders of
record at the close of business on December
31, 2020 (the "Special Distribution") without any
special distribution being paid YTD, partially offset by the
monthly distribution rate increasing from $0.065 per Unit to $0.085 per Unit commencing with the September 2021 distribution.
On August 4, 2022, the trustees of
the Fund declared a distribution for the period of July 1, 2022 to July 31,
2022 of $0.100 per Unit, which
will be payable on August 31, 2022 to
Unitholders of record on August 21,
2022. This is an increase of $0.015 per Unit, or 17.6%, from the previous
monthly distribution rate of $0.085
per Unit. On an annualized basis, the new monthly distribution rate
equates to $1.20 per Unit compared to
$1.02 per Unit for the previously
monthly distribution rate. Including the July 2022 distribution, which will be paid on
August 31, 2022, the Fund will have
paid out total distributions of $382.8
million or $24.16 per Unit
which includes 235 monthly distributions and the Special
Distribution.
In deciding to increase monthly cash distributions from
$0.085 per unit to $0.100 per unit, the trustees of the Fund
considered, among other factors, the recent financial performance
of the Fund, BPI and Boston Pizza restaurants in the Fund's Royalty
Pool, the Fund's cash position and debt repayment obligations, and
internal financial projections for the Fund and Boston Pizza
restaurants in the Fund's Royalty Pool for the remainder of 2022
and beyond.
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 and six month periods
ended June 30, 2022 and June 30, 2021.
For the periods
ended June 30
|
Q2
2022
|
Q2 2021
|
YTD 2022
|
YTD 2021
|
(in thousands of
dollars – except restaurants, SRS, Payout Ratio and per Unit
items)
|
Number of restaurants
in Royalty Pool
|
383
|
387
|
383
|
387
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
219,384
|
134,839
|
397,986
|
263,836
|
|
|
|
|
|
Royalty6 income
|
8,775
|
5,393
|
15,919
|
10,553
|
Distribution
Income7
|
2,895
|
1,797
|
5,258
|
3,514
|
Total
revenue
|
11,670
|
7,190
|
21,177
|
14,067
|
Administrative
expenses
|
(349)
|
(309)
|
(687)
|
(655)
|
Interest expense on
debt and financing fees
|
(977)
|
(999)
|
(1,916)
|
(1,940)
|
Interest expense on
Class B Unit liability
|
(733)
|
(605)
|
(1,298)
|
(1,019)
|
Interest
income
|
10
|
29
|
15
|
69
|
Profit before fair
value (loss) gain and income taxes
|
9,621
|
5,306
|
17,291
|
10,522
|
Fair value (loss) gain
on investment in BP Canada LP
|
(14,622)
|
6,274
|
(3,056)
|
17,840
|
Fair value gain (loss)
on Class B Unit liability
|
6,515
|
(2,796)
|
1,361
|
(7,948)
|
Fair value gain on
Swaps
|
1,337
|
193
|
3,213
|
1,311
|
Current and deferred
income tax expense
|
(1,075)
|
(1,235)
|
(4,134)
|
(2,403)
|
Net and comprehensive
income
|
1,776
|
7,742
|
14,675
|
19,322
|
|
|
|
|
|
Basic earnings per
Unit
|
0.08
|
0.36
|
0.68
|
0.90
|
Diluted (loss) earnings
per Unit
|
(0.20)
|
0.36
|
0.55
|
0.90
|
|
|
|
|
|
Distributable
Cash / Distributions / Payout Ratio
|
|
|
|
|
Cash flows generated
from operating activities
|
9,118
|
6,448
|
15,769
|
12,365
|
BPI Class B Unit
entitlement8
|
(888)
|
(523)
|
(1,552)
|
(989)
|
Interest paid on
long-term debt
|
(954)
|
(929)
|
(1,838)
|
(1,809)
|
Principal repayments
on long-term debt
|
(1,000)
|
(1,036)
|
(1,500)
|
(2,072)
|
Current income tax
expense
|
(2,285)
|
(1,185)
|
(4,054)
|
(2,303)
|
Current income tax
paid
|
2,185
|
1,250
|
4,049
|
2,500
|
Distributable
Cash3
|
6,176
|
4,025
|
10,874
|
7,692
|
Distributions
paid
|
5,488
|
4,197
|
10,976
|
12,698
|
Payout
Ratio5
|
88.9 %
|
104.3 %
|
100.9 %
|
165.1 %
|
Distributable Cash per
Unit4
|
0.287
|
0.187
|
0.505
|
0.357
|
Distributions paid per
Unit
|
0.255
|
0.195
|
0.510
|
0.590
|
|
|
|
|
|
Other
|
|
|
|
|
Same Restaurant
Sales2
|
64.9 %
|
27.0 %
|
52.3 %
|
(5.1 %)
|
Number of restaurants
opened
|
0
|
0
|
0
|
0
|
Number of restaurants
closed
|
0
|
1
|
2
|
2
|
|
|
|
|
|
Jun 30, 2022
|
Dec 31, 2021
|
Total assets
|
|
|
411,460
|
411,313
|
Total
liabilities
|
|
|
130,133
|
135,514
|
|
|
|
|
|
|
SHORT-TERM OUTLOOK
COVID-19 had sudden, unexpected and unprecedented impacts on the
general economy, the restaurant industry and has specifically
caused significant disruption to the business of the Fund, BPI and
BP Canada LP. The focus of BPI's management is to continue to:
(i) monitor carefully the continuously evolving COVID-19
situation; (ii) modify the operating procedures of Boston
Pizza restaurants to ensure the safety of guests and staff of
BP Canada LP's franchisees; (iii) responsibly and
safely operate the dining rooms, sports bars and patios of Boston
Pizza restaurants across Canada as
permitted by applicable provincial health authorities;
(iv) maximize the opportunity to grow its take-out and
delivery business; and (v) review and adapt current and future
plans to responsibly address the challenges and opportunities
presented by COVID-19.
The trustees of the Fund will continue to closely monitor BPI's
and BP Canada LP's business as the COVID-19 situation continues to
develop and consider the best interests of the Fund and its
stakeholders. While COVID-19 persists, the trustees of the Fund
expect that Franchise Sales and SRS at Boston Pizza restaurants,
and resulting Royalty, Distribution Income and Distributable Cash
available for distribution to Unitholders will continue to be
adversely affected.
Forward Looking
Information
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 its trustees expect or
anticipate will or may occur in the future, including such things
as, that the trustees of the Fund remain cautious and will continue
to closely monitor the Fund's available cash balances and
distribution levels, based on our goal of stable and sustainable
distribution flow to Unitholders, that COVID-19 continues to impact
the business of the Fund, BPI and BP Canada LP and the operation of
Boston Pizza restaurants, that Boston Pizza restaurants generally
experience higher Franchise Sales levels during the summer months
when restaurants open their patios and benefit from increased
tourist traffic, the focus of BPI's management to continue to: (i)
monitor carefully the continuously evolving COVID-19 situation;
(ii) modify the operating procedures of Boston Pizza restaurants to
ensure the safety of guests and staff of BP Canada LP's
franchisees; (iii) responsibly and safely operate the dining rooms,
sports bars and patios of Boston Pizza restaurants across
Canada as permitted by applicable
provincial health authorities; (iv) maximize the opportunity to
grow its take-out and delivery business; and (v) review and adapt
current and future plans to responsibly address the challenges and
opportunities presented by COVID-19, the trustees of the Fund
continuing to closely monitor BPI's and BP Canada LP's business as
the COVID-19 situation continues to develop and consider the best
interests of the Fund and its stakeholders, the expectation that
Franchise Sales and SRS at Boston Pizza restaurants, and resulting
Royalty, Distribution Income and Distributable Cash available for
distribution to Unitholders will continue to be adversely affected
while COVID-19 persists, 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: the Fund
maintaining the same distribution policy, expectations related to
future general economic conditions, expectations that the Fund's
Payout Ratio is typically higher in the first and fourth quarter,
Boston Pizza restaurants maintaining operational excellence, the
COVID-19 pandemic continuing to negatively impact the restaurant
industry, Franchise Sales, SRS and Distributable Cash, and that
COVID-19 and its negative impacts will eventually dissipate. 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, reliance on operating revenues,
accounting policies and practices, the results of operations and
financial condition of BPI, BP Canada LP and the Fund, pandemics
and national health crises, in particular COVID-19, 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, neither the Fund
nor BPI assumes any 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
most recent Annual Information Form of the Fund available at
www.sedar.com and www.bpincomefund.com.
The trustees of the Fund have approved the contents of this news
release.
® Boston Pizza
Royalties Limited Partnership. All Boston Pizza registered Canadian
trademarks and unregistered Canadian trademarks containing the
words "Boston", "BP", and/or "Pizza" are trademarks 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. 2022.
|
Notes – Non-GAAP, Specified
Financial Measures and Other Information
- "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 that are in the Royalty
Pool; and (ii) reported to BP Canada LP by franchised Boston Pizza
restaurants in Canada that are in
the Royalty Pool, 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. Franchise Sales is
reported on a quarterly basis in the Fund's financial statements,
however, the financial statements do not report it on a monthly
basis. Therefore, when disclosed on a monthly basis herein, this is
a supplementary financial measure under National Instrument 52-112
Non-GAAP and Other Financial Measures Disclosure
("NI 52‑112"). The Fund believes that Franchise Sales
for this month provides useful information to investors regarding
recent performance of Boston Pizza.
- "Same Restaurant Sales" or "SRS" is a
supplementary financial measure under NI 52-112 and therefore may
not be comparable to similar measures presented by other issuers.
Prior to the fourth quarter of 2021, the Fund defined SRS as the
change in gross revenues of Boston Pizza restaurants in the Royalty
Pool as compared to the gross revenues for the same period in the
previous year (where restaurants were open for a minimum of 24
months). Commencing with the fourth quarter of 2021, the Fund
defines SRS as the change in Franchise Sales of Boston Pizza
restaurants in the Royalty Pool as compared to the Franchise Sales
for the same period in the previous year (where restaurants were
open for a minimum of 24 months). The Fund believes that the
current method of calculating SRS provides Unitholders more
meaningful information regarding the performance of Boston Pizza
restaurants since Royalty and Distribution Income are payable to
the Fund by BPI and BP Canada LP on Franchise Sales and not gross
revenues of Boston Pizza restaurants. All historical SRS figures
contained in this press release have been restated to conform to
the current method of calculating SRS.
- "Distributable Cash" is a non-GAAP financial
measure under NI 52-112. Distributable Cash is not a standardized
financial measure under IFRS and may not be comparable to similar
financial measures disclosed by other issuers. The Fund
defines Distributable Cash to be, in respect of any particular
period, the Fund's cash flows generated from operating activities
for that period (being the most comparable financial measure in the
Fund's primary financial statements) minus (a) BPI's
entitlement in respect of its Class B Units in respect of the
period (see note 8 below), minus (b) interest paid on
long-term debt during the period, minus (c) principal
repayments on long-term debt that are contractually required to be
made during the period, minus (d) the current income tax
expense in respect of the period, plus (e) current income tax
paid during the period (the sum of (d) and (e) being "SIFT Tax
on Units"). Management believes that Distributable Cash
provides investors with useful information about the amount of cash
the Fund has generated and has available for distribution on the
Units in respect of any period. The tables in the "Financial
Highlights" section of this press release provide a reconciliation
from this non-GAAP financial measure to cash flows generated from
operating activities, which is the most directly comparable IFRS
measure. Current income tax expense in respect of any period is
prepared using reasonable and supportable assumptions (including
that the base rate of SIFT Tax will not increase throughout the
calendar year and that certain expenses of the Fund will continue
to be deductible for income tax purposes), all of which reflect the
Fund's planned courses of action given management's judgment about
the most probable set of economic conditions. There is a risk that
the federal government of Canada could increase the base rate of
SIFT Tax or that applicable taxation authorities could assess the
Fund on the basis that certain expenses of the Fund are not
deductible. Investors are cautioned that if either of these
possibilities occurs, then the actual results for this component of
Distributable Cash may vary, perhaps materially, from the amounts
used in the reconciliation.
- "Distributable Cash per Unit" is a non-GAAP ratio
under NI 52-112. Distributable Cash per Unit is not a standardized
financial measure under IFRS and may not be comparable to similar
financial measures disclosed by other issuers. The Fund
defines Distributable Cash per Unit for any period as the
Distributable Cash generated in that period divided by the weighted
average number of Units outstanding during that period. Management
believes that Distributable Cash per Unit provides investors with
useful information regarding the amount of cash per Unit that the
Fund has generated and has available for distribution in respect of
any period.
- "Payout Ratio" is a non-GAAP ratio under
NI 52-112. Payout Ratio is not a standardized financial
measure under IFRS and may not be comparable to similar financial
measures disclosed by other issuers. The Fund defines Payout Ratio
for any period as the aggregate distributions paid by the Fund
during that period divided by the Distributable Cash generated in
that period. Management believes that Payout Ratio provides
investors with useful information regarding the extent to which the
Fund distributes cash generated on Units.
- Boston Pizza Royalties Limited Partnership
("Royalties LP") licenses BPI the right to use various
Boston Pizza trademarks in return for BPI paying Boston Pizza
Royalties Limited Partnership a royalty equal to 4% of Franchise
Sales of Boston Pizza restaurants (the "Royalty") in the
Fund's royalty pool (the "Royalty Pool").
- "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.
- "BPI Class B Unit entitlement" is a supplementary
financial measure under NI 52-112 and therefore may not be
comparable to similar measures presented by other issuers. The BPI
Class B Unit entitlement is the interest expense on Class B Units
in respect of a period plus management's estimate of how much cash
BPI would be entitled to receive pursuant to the limited
partnership agreement governing Royalties LP (a copy of which is
available on www.sedar.com) on its Class B Units if Royalties LP
fully distributed any residual cash generated in respect of that
period after the Fund pays interest on long-term debt, principal
repayments on long-term debt and SIFT Tax on Units in respect of
that period. Management believes that the BPI Class B Unit
entitlement is an important component in calculating Distributable
Cash since it represents the amount of residual cash generated that
BPI would be entitled to receive and therefore would not be
available for distribution to Unitholders. Management
prepares such estimate using reasonable and supportable assumptions
that reflect the Fund's planned courses of action given
management's judgment about the most probable set of economic
conditions.
SOURCE Boston Pizza Royalties Income Fund