Boston Pizza Royalties Income Fund and Boston Pizza International Inc. Announce Third Quarter Result
By Canadian Pizza
By Canadian Pizza
November 4, 2008 – Vancouver, B.C. – Fund's royalty income rises 11% to $19.5 million through the first nine months of 2008
(Marketwire – Nov. 4, 2008) – Boston Pizza
Royalties Income Fund (the "Fund") (TSX:BPF.UN) and Boston Pizza
International Inc. ("BPI") each reported today financial results for
the period of July 1, 2008 to September 30, 2008 (the "Period") and the
year-to-date results from January 1, 2008 to September 30, 2008
("Year-to-date"). A copy of the management's discussion and analysis
and financial statements are available at www.sedar.com and www.bpincomefund.com.
The Fund will host a conference call to discuss the results on November
4, 2008 at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time). The call
can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay
will be available until November 11, 2008 by dialling 1-800-319-6413 or
604-638-9010 and entering the pin code: 4452 followed by # sign.
Same Store Sales Growth ("SSSG"), the key driver of yield growth
for individual Unitholders of the Fund, was 0.3% for the Period and
0.9% Year-to-date compared to the same periods one year ago. Franchise
sales of restaurants in the royalty pool increased 9.4% for the Period
and 10.8% Year-to-date versus 2007. This growth was achieved through
SSSG and the addition of 34 new restaurants to the royalty pool on
January 1, 2008.
"In the third quarter we opened three new Boston Pizza restaurants
and renovated another ten locations to the latest design standards,"
said Mike Cordoba, Chief Executive Officer. "Sales in the Period were
driven by our new menu and a successful 62 Days of Summer promotion,
which ran in all restaurants through July and August and included a
chance to win a vacation package on each day of the event."
Earnings before income taxes of the Fund increased by 17.5% for the
Period and 19.0% Year-to-date compared to the same periods in 2007.
Earnings before income taxes of the Fund for the Period were $5.5
million or $0.352 per unit compared to the third quarter of 2007 in
which earnings before income taxes were $4.7 million or $0.368 per
unit. Distributions declared for the Period were $5.4 million or $0.345
per unit compared to the third quarter of 2007 in which distributions
declared were $4.3 million or $0.339 per unit. Distributions for the
Period were funded entirely by cash flow from operations. No debt was
incurred at any point during the Period to fund distributions.
The Trustees of the Fund are pleased to announce a monthly cash
distribution to Unitholders of 11.5 cents per unit for October 2008.
The distribution will be paid to Unitholders of record at the close of
business on November 21, 2008 and will be payable on November 28, 2008.
The Fund periodically reviews distribution levels based on its policy
of stable and sustainable distribution flow to Unitholders.
On September 22, 2008 the Fund announced that it had received
Toronto Stock Exchange ("TSX") approval of a Notice of Intention to
Make a Normal Course Issuer Bid ("NCIB") through the facilities of the
TSX which permits the Fund to repurchase for cancellation up to
1,336,154 units, being approximately 8.5% of the Fund's issued and
outstanding units (as at September 19, 2008) and approximately 10.0% of
its public float, currently comprised of 13,361,545 units.
Purchases under the NCIB commenced on October 1, 2008 and as of
November 3, 2008, the Fund had acquired 142,900 units at an average
price of $8.88. The NCIB will terminate on September 30, 2009 or such
earlier date that the Fund has acquired the maximum number of units
under the issuer bid. The Fund will pay the market price at the time of
acquisition for any units purchased through the facilities of the TSX
and all units acquired under the NCIB will be cancelled.
The Fund is a limited purpose, open-ended trust established under
the laws of British Columbia to acquire indirectly certain trade-marks
and trade names used by BPI in its Boston Pizza restaurants in Canada.
The trade-marks are licensed to BPI for 99 years for which BPI pays the
Fund 4% of franchise revenues of royalty pooled restaurants.
Boston Pizza is well positioned for future growth and should
continue to strengthen its position as the number one casual dining
brand in Canada. In 2008, management of Boston Pizza International Inc.
anticipates that approximately 27 new locations will open across
Canada. The forecast of new restaurant openings for 2008 was lowered
from the previously estimated range of 30 to 35 locations due to slower
than anticipated site development experienced Year-to-date. Management
will continue to pursue further development in Western Canada, while
the majority of new locations are expected to be in Eastern Canada and
SSSG in the remainder of 2008 will be driven by the new television
advertising campaign, a larger national marketing budget and an updated
menu. In addition, Boston Pizza has surpassed its previously announced
plans for a record 25 to 30 restaurant renovations this year, with 32
completed so far in 2008. Relatively weaker economic conditions
experienced Year-to-date have had an impact on sales at Boston Pizza
Restaurants and BPI management is not expecting a significant
improvement in economic conditions in the near-term.
Certain information in this press release may constitute
"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, the Boston
Pizza Holdings Trust, the Partnership, Boston Pizza Holdings Limited
Partnership, BPI, 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.
When used in this press release, such information uses words including
"anticipate", "estimate", "may", "will", "expect", "believe", "plan"
and other similar terminology. This information reflects current
expectations regarding future events and operating performance and
speaks only as of the date of this press release. Such forward-looking
information involves a number of risks, uncertainties and future
expectations including, but not limited to the risks and uncertainties
set out in the Fund's management's discussion and analysis under "Risks
and Uncertainties". Forward-looking information is made as of the date
hereof and, except as required by law, we assume no obligation to
update or revise forward-looking information to reflect new events or
The trustees of the Fund have approved the contents of this press release.