Diversified Royalty Corp. (TSX: DIV and DIV.DB) (the
“Corporation” or “DIV”) is pleased to announce its financial
results for the three months ended December 31, 2021 (“Q4 2021”)
and year ended December 31, 2021.
Highlights
- Revenue of $10.6
million for Q4 2021 and $37.3 million for the year ended December
31, 2021.
- Adjusted revenue1
of $11.9 million for Q4 2021 and $42.2 million for the year ended
December 31, 2021.
- Distributable cash1
of $7.9 million for Q4 2021 and $27.9 million for the year ended
December 31, 2021.
- Payout ratio1 of
83.5% for Q4 2021 and 89.8% for the year ended December 31,
2021.
- Two dividend
increases from $0.20 per share to $0.21 per share, followed by an
increase to $0.22 per share, effective with the August and November
2021 monthly dividends respectively.
- Effective May 1,
2021, the Mr. Lube royalty rate increased from 7.45% to 7.95% on
non-tire sales and 13 locations were added to the Mr. Lube royalty
pool.
Fourth Quarter and Year Results
|
Three months ended December 31, |
|
Year ended December 31, |
|
(000’s) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Mr. Lube |
$ |
5,752 |
|
$ |
4,232 |
|
$ |
19,459 |
|
$ |
15,414 |
|
AIR MILES® |
|
1,772 |
|
|
1,940 |
|
|
6,570 |
|
|
7,026 |
|
Sutton |
|
1,054 |
|
|
1,033 |
|
|
4,175 |
|
|
3,415 |
|
Oxford1 |
|
990 |
|
|
812 |
|
|
3,650 |
|
|
1,845 |
|
Mr. Mikes |
|
1,046 |
|
|
879 |
|
|
3,350 |
|
|
2,720 |
|
Nurse Next Door |
|
1,263 |
|
|
1,246 |
|
|
5,002 |
|
|
4,912 |
|
Adjusted revenue2 |
$ |
11,878 |
|
$ |
10,142 |
|
$ |
42,206 |
|
$ |
35,332 |
|
1) 2020 figures include
royalties and management fees from Oxford from the date of the
Oxford Rights acquisition on February 20, 2020.
2) Adjusted revenue is a
non-IFRS financial measure and as such, does not have a
standardized meaning under IFRS. For additional information, refer
to “Non-IFRS Financial Measures” in this news release.
For the three months and year ended December 31,
2021, DIV generated $10.6 million and $37.3 million of revenue
respectively, compared to $8.9 million and $30.5 million for
the same periods in 2021. After taking into account the DIV Royalty
Entitlement1 (defined below) related to DIV’s royalty arrangements
with Nurse Next Door Professional Homecare Services Inc. (“Nurse
Next Door”), DIV’s adjusted revenue was $11.9 million and $42.2
million for the three months and year ended December 31, 2021,
compared to $10.1 million and $35.3 million for the same periods in
2020. Adjusted revenue increased primarily due to positive trends
experienced by most of DIV’s royalty partners, as discussed in
further detail below. COVID-19 and the related government
restrictions more adversely impacted DIV’s royalty partners in the
three months and year ended December 31, 2020, compared to the
current year. In addition, incremental revenue was generated from
the addition of 13 locations to the Mr. Lube Canada Limited
Partnership (“Mr. Lube”) royalty pool and the increase in the Mr.
Lube royalty rate on non-tire sales on May 1, 2021.
_____________________________________
1 Adjusted revenue, distributable cash and DIV Royalty
Entitlement are non-IFRS financial measures and payout ratio is a
non-IFRS ratio, and as such, do not have a standardized meanings
under IFRS. For additional information, refer to “Non-IFRS
Financial Measures” in this news release.
Royalty Partner Business Updates
Mr. Lube: Mr. Lube generated
same-store-sales-growth (“SSSG”)2 of 20.7% for the Mr. Lube stores
in the royalty pool for Q4 2021, compared to SSSG of 1.1% in Q4
2020. Mr. Lube generated SSSG of 15.8% for the Mr. Lube stores in
the royalty pool for the year ended December 31, 2021, compared to
SSSG of -4.4% for the year ended December 31, 2020. Mr. Lube
generated SSSG of 21.5% and 10.4% for the Mr. Lube stores in the
royalty pool for the three months and year ended December 31, 2021,
respectively, compared to the same periods in 2019. The increase in
2021 compared to the prior year was due to a variety of factors
including growth in Mr. Lube maintenance services and tire sales,
new service offerings, and price increases. In addition, the
relaxing of COVID-19 government restrictions during the year
resulted in more drivers returning to the road.
Same-store-sales growth or SSSG is a non-IFRS
financial measure – see “Non-IFRS Financial Measures” below.
AIR
MILES®: On February 3,
2022, Loyalty Ventures Inc., the parent company of LoyaltyOne Co.
(“LoyaltyOne”), issued a news release regarding the Q4 2021 and
year ended December 31, 2021 performance of the AIR MILES® reward
program announcing that: (i) AIR MILES® reward miles issued
decreased by 6.7% in Q4 2021 and 5.9% for the year ended December
31, 2021, due to the non-renewal of two sponsors and their exit
from the program in the first quarter of 2021; (ii) AIR MILES®
reward miles redeemed increased by 27.8% in Q4 2021 and 12.1% for
the year ended December 31, 2021, reflecting continued strength in
the merchandise category and positive momentum early in the quarter
for travel bookings, before the emergence of the Omicron variant in
November 2021.
Sutton: Since June 2020, DIV
has been collecting 100% of the fixed royalty and management fee
payments from Sutton as the Canadian residential real estate market
experienced a strong recovery following a period of low
transactional activity in April and May 2020. However, DIV
previously waived 50% of Sutton’s March 2020 royalty and management
fees and 75% of Sutton’s April and May 2020 royalty and management
fees in connection with the dramatic slow-down of residential real
estate activity that occurred following the initial onset of the
COVID-19 pandemic, and the related impact on Sutton’s business. The
fixed royalty payable by Sutton increases at a rate of 2% per year,
with the most recent increase effective July 1, 2021.
Oxford: Oxford locations in the
Oxford royalty pool generated SSSG (on a constant currency basis)
of 14.0% in Q4 2021, compared to SSSG of -23% in Q4 2020. Oxford’s
SSSG for the year ended December 31, 2021, was 9.5%, compared to
-26% for the period from February 20, 2020, the acquisition date of
the Oxford Rights, to December 31, 2020. Oxford locations in the
Oxford royalty pool generated SSSG (on a constant currency basis)
of -11.7% and -13.4% for the three months and year ended December
31, 2021, compared to the same periods in 2019 (on a pro forma
basis, had the Oxford transaction closed on January 1, 2019). In
2020, Oxford’s SSSG was negatively impacted by the COVID-19
pandemic, which resulted in the temporary suspension of in-centre
services in Ontario which represents the majority of its locations.
In 2021, government-mandated COVID restrictions began to relax, and
Oxford saw a transition back to in-person tutoring for many
locations. However, ongoing capacity constraints, predominantly in
Ontario, continue to limit in-person services.
Mr. Mikes: The majority of Mr.
Mikes Restaurants Corporation (“Mr. Mikes”) restaurants have been
open for in-restaurant dining at a reduced capacity since mid-June
2021. Overall, SSSG in Q4 2021 for the Mr. Mikes restaurants in the
royalty pool, including stores that were temporarily closed due to
the COVID-19 pandemic, was 9.3% compared to Q4 2020 and -26.4%
compared to Q4 2019. SSSG for the year ended December 31, 2021, for
the Mr. Mikes restaurants in the royalty pool was 6.2% compared to
the year ended December 31, 2020, and -28.4% compared to the year
ended December 31, 2019.
DIV granted royalty and management fee relief to
Mr. Mikes in connection with the COVID-19 pandemic, collecting 81%
of the contractual royalty amount for the year ended December 31,
2021, and 46% for the year ended December 31, 2020. The management
team at Mr. Mikes continues to expect a protracted recovery.
_____________________________________
2 SSSG is a supplementary financial measure and
as such, does not have a standardized meaning under IFRS. For
additional information, refer to “Non-IFRS Financial Measures” in
this news release.
DIV is in discussions with Mr. Mikes and its
lender regarding additional royalty and management fee relief for
Mr. Mikes, which DIV expects may be required until such time as all
government restrictions impacting the operation of Mr. Mikes
restaurants is lifted and the business stabilizes.
Nurse Next Door: The royalty
entitlement to DIV (the “DIV Royalty Entitlement”) from Nurse Next
Door was $1.2 million in Q4 2021 and $4.9 million for the year
ended December 31, 2021. The DIV Royalty Entitlement from Nurse
Next Door grows at a fixed rate of 2.0% per annum during the term
of the license, with the most recent increase effective October 1,
2021. During the year ended December 31, 2021, Nurse Next Door
signed 113 (2020 – 28) new franchises primarily in major
metropolitan markets (34 in Canada, 60 in the US and 19 in
Australia). Nurse Next Door continues to make its fixed royalty
payment to DIV in full, which DIV expects will continue.
DIV Royalty Entitlement is a non-IFRS measure –
see “Non-IFRS Financial Measures” below.
Fourth Quarter Commentary
Sean Morrison, President and Chief Executive
Officer of DIV stated, “2021 was a year of continued challenges
from the various COVID-19 surges. Through these challenging times,
Mr. Lube, our largest royalty partner, produced record results with
SSSG of 15.8% for the year ended December 31, 2021. Our other
Royalty Partners also recovered in 2021 and paid DIV 14% more
royalties than in 2020. These strong results, combined with the
purchase from Mr. Lube of an incremental 0.5% royalty and a royalty
on 13 new stores enabled DIV to raise its dividend twice in 2021.
I’m extremely proud of the management teams of our Royalty Partners
and their efforts to manage their businesses and support their
franchisees throughout 2021. In summary, DIV is well positioned for
a strong 2022 with continued improvement from our Royalty Partners
and increased royalty acquisition opportunities.”
Distributable Cash and Dividends Declared
In Q4 2021, distributable cash increased to $7.9
million ($0.0649 per share), compared to $7.1 million ($0.0585 per
share) in Q4 2020. The increase in distributable cash was primarily
due to higher adjusted revenue partially offset by higher current
tax expense, salaries and benefits and interest expense. The
increase in distributable cash per share3 was primarily due to the
increase in distributable cash, partially offset by a higher
weighted average number of common shares outstanding for the year
ended December 31, 2021.
For the year ended December 31, 2021,
distributable cash increased to $27.9 million ($0.2291 per share)
compared to $23.7 million ($0.1998 per share) for the year ended
December 31, 2020. The increase in distributable cash was due to
higher adjusted revenue partially offset by higher current tax
expense and salaries and benefits. The increase in distributable
cash per share was primarily due to an increase in distributable
cash partially offset by a higher weighted average number of common
shares outstanding for the year ended December 31, 2021.
In Q4 2021, the payout ratio was 83.5%, a
decrease when compared to the payout ratio in Q4 2020 of 85.5%. The
decrease was primarily due to higher distributable cash, partially
offset by higher dividends declared per share.
For the year ended December 31, 2021, the payout
ratio was 89.8%, a decrease when compared to the payout ratio for
the year ended December 31, 2020, of 104.1%. The decrease was
primarily due to higher distributable cash and lower dividends
declared per share.
Net Income (Loss)
Net income for Q4 2021 was $8.2 million,
compared to net income of $0.8 million in Q4 2020. The increase in
net income was primarily due to higher adjusted revenues, a net
impairment reversal, and a higher fair value gain on financial
instruments partially offset by an increase in tax expense and
salaries and benefits.
_____________________________________
3 Distributable cash per share is a non-IFRS
ratio and as such, does not have a standardized meaning under IFRS.
For additional information, refer to “Non-IFRS Financial Measures”
in this news release.
Net income for the year ended December 31, 2021,
was $23.5 million, compared to a net loss of $8.9 million for the
year ended December 31, 2020. The increase in net income was
primarily due to higher adjusted revenues, the fair value gain on
financial instruments, and non-cash impairment reversals of $5.7
million and $1.2 million related to intellectual property rights
utilized by Mr. Mikes and Oxford respectively, partially offset by
higher income tax expense and other finance costs, and the non-cash
impairment loss of $5.2 million related to the intellectual
property rights utilized by AIR MILES®.
About Diversified Royalty Corp.
DIV is a multi-royalty corporation, engaged in
the business of acquiring top-line royalties from well-managed
multi-location businesses and franchisors in North America. DIV’s
objective is to acquire predictable, growing royalty streams from a
diverse group of multi-location businesses and franchisors.
DIV currently owns the Mr. Lube, AIR MILES®,
Sutton, Mr. Mikes, Nurse Next Door and Oxford Learning Centres
trademarks. Mr. Lube is the leading quick lube service business in
Canada, with locations across Canada. AIR MILES® is Canada’s
largest coalition loyalty program with approximately two-thirds of
Canadian households actively participating in the AIR MILES®
Program. Sutton is among the leading residential real estate
brokerage franchisor businesses in Canada. Mr. Mikes currently
operates casual steakhouse restaurants primarily in western
Canadian communities. Nurse Next Door is one of North America’s
fastest growing home care providers with locations across Canada
and the United States as well as in Australia. Oxford Learning
Centres is one of Canada’s leading franchised supplemental
education services in Canada and the United States.
DIV expects to increase cash flow per share by
making accretive royalty purchases and through the growth of
purchased royalties. DIV expects to pay a predictable and stable
dividend to shareholders and increase the dividend as cash flow per
share increases allow.
Forward-Looking Statements
Certain statements contained in this news
release may constitute “forward-looking information” or “financial
outlook” within the meaning of applicable securities laws that
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information or financial outlook. The use of any of the words
“anticipate”, “continue”, “estimate”, “expect”, “intend”, “may”,
“will”, ”project”, “should”, “believe”, “confident”, “plan” and
“intend” and similar expressions are intended to identify
forward-looking information and financial outlook, although not all
forward-looking information and financial outlook contain these
identifying words. Specifically, forward-looking information and
financial outlook in this news release includes, but is not limited
to, statements made in relation to: the expected financial results
of Mr. Lube, Nurse Next Door, Sutton, Mr. Mikes and Oxford for Q4
2021 and the amount of royalty income expected to be reported by
DIV as having been generated from the AIR MILES licenses during
this period; ongoing capacity constraints, predominantly in
Ontario, continuing to limit in-person services for Oxford; Mr.
Mikes’ expectation that it will continue to experience a protracted
recovery; DIV’s expectation that Mr. Mikes may require additional
royalty relief until such time as all government restrictions
impacting the operation of Mr. Mikes restaurants are lifted and the
business stabilizes; DIV’s expectation that Nurse Next Door will
continue to make its fixed royalty payments in full; DIV’s belief
that Oxford is posed for a strong recovery when COVID-19 related
restrictions, primarily in Ontario, are loosened; DIV’s intention
to pay monthly dividends to shareholders; and DIV’s corporate
objectives. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events, performance, or achievements of DIV to differ materially
from those anticipated or implied by such forward-looking
information and financial outlook. DIV believes that the
expectations reflected in the forward-looking information and
financial outlook included in this news release are reasonable but
no assurance can be given that these expectations will prove to be
correct. In particular, risks and uncertainties include: the
financial results of DIV and its royalty partners may not be
consistent with the preliminary results set forth herein; DIV’s
royalty partners may not make their respective royalty payments to
DIV, in whole or in part; DIV’s royalty partners may request
further royalty relief; COVID-19 may have a more significant
negative impact on DIV and its royalty partners (including their
respective franchisees) than currently expected and the businesses
of DIV’s royalty partners (and their respective franchisees) may
not fully recover following the relaxation of government
restrictions or post vaccinations; current improvement trends being
experienced by certain of DIV’s royalty partners (and their
respective franchisees) may not continue and may regress; royalty
partner locations that are temporarily closed may not reopen; the
rates of recovery for DIV’s royalty partners will be dependent
upon, among other things, the availability and effectiveness of
vaccines for the COVID-19 virus, government responses, rates of
economic recovery, precautionary measures taken by consumers and
the rate at which government restrictions will be lifted or
meaningfully relaxed; DIV may not be able to make monthly dividend
payments to the holders of its common shares; dividends are not
guaranteed and may be reduced, suspended or terminated at any time;
or DIV may not achieve any of its corporate objectives. Given these
uncertainties, readers are cautioned that forward-looking
information and financial outlook included in this news release are
not guarantees of future performance, and such forward-looking
information and financial outlook should not be unduly relied upon.
More information about the risks and uncertainties affecting DIV’s
business and the businesses of its royalty partners can be found in
the “Risk Factors” section of its Annual Information Form dated
March 10, 2022 and in DIV’s most recently filed management’s
discussion and analysis for the three months and year ended
December 31, 2021, copies of which are available under DIV’s
profile on SEDAR at www.sedar.com.
In formulating the forward-looking information
and financial outlook contained herein, management has assumed that
DIV will generate sufficient cash flows from its royalties to
service its debt and pay dividends to shareholders; lenders will
provide any necessary waivers required in order to allow DIV to
continue to pay dividends; the impacts of COVID-19 on DIV and its
royalty partners (including their respective franchisees) will be
consistent with DIV’s expectations and the expectations of
management of each of its Royalty Partners, both in extent and
duration; DIV and its royalty partners (including their respective
franchisees) will be able to reasonably manage the impacts of the
COVID-19 pandemic on their respective businesses; vaccination
programs will be successful and vaccines effective, and the
expected positive impacts thereof on DIV and the businesses of its
royalty partners (including their respective franchisees) will be
consistent with DIV’s expectations; the performance of DIV’s
royalty partners will be consistent with DIV’s and its royalty
partners’ respective expectations; recent positive trends for
certain of DIV’s royalty partners (including their respective
franchisees) will continue and not regress. These assumptions,
although considered reasonable by management at the time of
preparation, may prove to be incorrect.
To the extent any forward-looking information or
statements in this news release constitute a “financial outlook”
within the meaning of applicable securities laws, such information
is being provided to investors to ensure they receive timely
disclosure of material financial information with respect to the
financial performance of the Corporation and its royalty partners
prior to the completion of year end audits.
All of the forward-looking information in this
news release is qualified by these cautionary statements and other
cautionary statements or factors contained herein, and there can be
no assurance that the actual results or developments will be
realized or, even if substantially realized, that it will have the
expected consequences to, or effects on, DIV. The forward-looking
information in this news release is made as of the date of this
news release and DIV assumes no obligation to publicly update or
revise such information to reflect new events or circumstances,
except as may be required by applicable law.
DIV notes that the financial results reported in
this news release for the three months ended December 31, 2021, are
consistent with the preliminary results for such period reported in
DIV’s news release dated February 3, 2022.
Non-IFRS Financial Measures
Management believes that disclosing certain
non-IFRS financial measures provides readers with important
information regarding the Corporation’s financial performance and
its ability to pay dividends and the performance of its royalty
partners. By considering these measures in combination with the
most closely comparable IFRS measure, management believes that
investors are provided with additional and more useful information
about the Corporation and its royalty partners than investors would
have if they simply considered IFRS measures alone. The non-IFRS
financial measures, non-IFRS ratios and supplementary financial
measures do not have standardized meanings prescribed by IFRS and
therefore are unlikely to be comparable to similar measures
presented by other issuers. Investors are cautioned that non-IFRS
measures should not be construed as a substitute or an alternative
to cash flows from operating activities as determined in accordance
with IFRS.
“Adjusted revenue”, “DIV Royalty Entitlement”
and “distributable cash” are used as non-IFRS financial measures in
this news release.
Adjusted revenue is calculated as royalty income
plus DIV Royalty Entitlement and management fees. The following
table reconciles adjusted revenue to royalty income, the most
directly comparable IFRS measure disclosed in the financial
statements:
|
Three months
ended December 31, |
|
Year ended
December 31, |
|
(000's) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Mr.
Lube |
$ |
5,695 |
|
$ |
4,177 |
|
$ |
19,236 |
|
$ |
15,196 |
|
AIR
MILES® |
|
1,772 |
|
|
1,940 |
|
|
6,570 |
|
|
7,026 |
|
Sutton |
|
1,027 |
|
|
1,006 |
|
|
4,065 |
|
|
3,327 |
|
Oxford1 |
|
980 |
|
|
869 |
|
|
3,610 |
|
|
2,686 |
|
Mr.
Mikes |
|
1,037 |
|
|
812 |
|
|
3,337 |
|
|
1,839 |
|
Royalty income |
$ |
10,511 |
|
$ |
8,804 |
|
$ |
36,818 |
|
$ |
30,074 |
|
DIV Royalty
Entitlement |
|
1,242 |
|
|
1,227 |
|
|
4,925 |
|
|
4,836 |
|
Adjusted royalty income |
$ |
11,753 |
|
$ |
10,031 |
|
$ |
41,743 |
|
$ |
34,910 |
|
Management
fees1 |
|
125 |
|
|
111 |
|
|
463 |
|
|
422 |
|
Adjusted revenue |
$ |
11,878 |
|
$ |
10,142 |
|
$ |
42,206 |
|
$ |
35,332 |
|
1) 2020 figures include royalties and management
fees from Oxford from the date of the Oxford Rights acquisition on
February 20, 2020.
For further details, refer to the section on
Non-IFRS Financial Measures entitled “DIV Royalty Entitlement,
Adjusted Royalty Income and Adjusted Revenue” in the Corporation’s
management’s discussion and analysis for the three months and year
ended December 31, 2021, a copy of which is available on SEDAR at
www.sedar.com.
The most closely comparable IFRS measure to DIV
Royalty Entitlement is “distributions received from NND LP”. DIV
Royalty Entitlement is calculated as distributions received from
NND LP, before any deduction for expenses incurred by NND Holdings
Limited Partnership (“NND LP”), which expenses include legal,
audit, tax and advisory services. Note that distributions received
from NND LP is derived from the royalty paid by Nurse Next Door to
NND LP. The following table reconciles DIV Royalty Entitlement to
distributions received from NND LP in the financial statements:
(000's) |
Three months ended December 31, |
|
Years ended December 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Distributions received from NND LP |
$ |
1,238 |
|
$ |
1,219 |
|
$ |
4,906 |
|
$ |
4,588 |
|
Add: NND Royalties LP expenses |
|
4 |
|
|
8 |
|
|
19 |
|
|
248 |
|
DIV Royalty Entitlement |
|
1,242 |
|
|
1,227 |
|
|
4,925 |
|
|
4,836 |
|
|
|
|
|
|
Less: NND Royalties LP expenses |
|
(4 |
) |
|
(8 |
) |
|
(19 |
) |
|
(248 |
) |
Add: Transaction fees and other |
|
- |
|
|
1 |
|
|
- |
|
|
213 |
|
DIV Royalty Entitlement, net of NND Royalties LP
expenses |
$ |
1,238 |
|
$ |
1,220 |
|
$ |
4,906 |
|
$ |
4,801 |
|
For further details, refer to the section on Non-IFRS Financial
Measures entitled “DIV Royalty Entitlement net of NND Royalties LP
Expenses” in the Corporation’s management’s discussion and analysis
for the three months and year ended December 31, 2021, a copy of
which is available on SEDAR at www.sedar.com.
The following table reconciles distributable
cash to cash flows generated from operating activities, the most
directly comparable IFRS measure disclosed in the financial
statements:
(000's) |
Three months ended December 31, |
Year ended December 31, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
Cash flows generated from operating
activities |
$ |
7,646 |
|
$ |
4,985 |
|
$ |
27,815 |
|
$ |
22,102 |
|
|
|
|
|
|
Changes in working capital |
|
293 |
|
|
831 |
|
|
1,331 |
|
|
963 |
|
Current tax expense |
|
(1,363 |
) |
|
(729 |
) |
|
(4,084 |
) |
|
(1,979 |
) |
Taxes paid |
|
530 |
|
|
1,224 |
|
|
2,717 |
|
|
2,447 |
|
Accrued interest on convertible debentures |
|
756 |
|
|
756 |
|
|
- |
|
|
- |
|
Foreign exchange loss |
|
- |
|
|
6 |
|
|
- |
|
|
1 |
|
Transaction costs |
|
- |
|
|
- |
|
|
104 |
|
|
- |
|
Payment of lease obligations |
|
76 |
|
|
- |
|
|
42 |
|
|
- |
|
Accrued DIV Royalty Entitlement, net of distributions |
|
3 |
|
|
7 |
|
|
18 |
|
|
248 |
|
NND LP expenses |
|
(4 |
) |
|
(7 |
) |
|
(19 |
) |
|
(35 |
) |
Distributable cash |
$ |
7,937 |
|
$ |
7,073 |
|
$ |
27,924 |
|
$ |
23,747 |
|
For further details, refer to the section on Non-IFRS Financial
Measures entitled “Distributable cash” in the Corporation’s
management’s discussion and analysis for the three months and year
ended December 31, 2021, a copy of which is available on SEDAR at
www.sedar.com.
“Distributable cash per share” and “payout
ratio” are non-IFRS ratios that do not have a standardized meaning
prescribed by IFRS, and therefore may not be comparable to similar
ratios presented by other issuers. Distributable cash per share is
defined as distributable cash, a non-IFRS measure, divided by the
weighted average number of common shares outstanding during the
period. The payout ratio is calculated by dividing the dividends
per share during the period by the distributable cash per share, a
non-IFRS measure, generated in that period. For further details,
refer to the subsection entitled “Non-IFRS Ratios” under
“Description of Non-IFRS Financial Measures, Non-IFRS Ratios and
Supplementary Financial Measures” in the Corporation’s management’s
discussion and analysis for the three months and year ended
December 31, 2021, a copy of which is available on SEDAR at
www.sedar.com.
“Same store sales growth” or “SSSG” is a
supplementary financial measure and does not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similar measures presented by other issuers. For further details,
refer to the subsection entitled “Supplementary Financial Measures”
under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios
and Supplementary Financial Measures” in the Corporation’s
management’s discussion and analysis for the three months and year
ended December 31, 2021, a copy of which is available on SEDAR at
www.sedar.com.
Third Party Information
This news release includes information obtained
from third party company filings and reports and other publicly
available sources as well as financial statements and other reports
provided to DIV by its royalty partners. Although DIV believes
these sources to be generally reliable, such information cannot be
verified with complete certainty. Accordingly, the accuracy and
completeness of this information is not guaranteed. DIV has not
independently verified any of the information from third party
sources referred to in this news release nor ascertained the
underlying assumptions relied upon by such sources.
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
The information in this news release should be
read in conjunction with DIV’s consolidated financial statements
and management’s discussion and analysis (“MD&A”) for the three
and year ended December 31, 2021, which are available on SEDAR at
www.sedar.com.
Additional information relating to the
Corporation and other public filings, is available on SEDAR at
www.sedar.com.
Contact:Sean Morrison, President and Chief
Executive OfficerDiversified Royalty Corp. (236) 521-8470
Greg Gutmanis, Chief Financial Officer and VP
Acquisitions Diversified Royalty Corp. (236) 521-8471
Diversified Royalty (TSX:DIV.DB)
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