MONCTON, NB, May 15 /CNW/ - PDM Royalties Income Fund (TSX: PDM.UN, PDM.DB) ("PDM" or the "Fund") reported today its financial results for the first quarter of 2009. The Fund indirectly owns the trademarks and intellectual property for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands and has licensed them to Imvescor.
Total revenue for the fund was $3.501 million during the first quarter of 2009 compared to $3.472 million for the same quarter in 2008. System sales from the 259 restaurants in the Royalty Pool were $101.4 million for the quarter, which represents a 4.9 percent increase over system sales of $96.7 million for the same quarter last year. This compares favourably to the 2.0 percent decline forecast by the (Canadian Restaurant and Food Services Association for full service restaurants in the first quarter of 2009. This system sales increase translated into a 2.6 percent increase of royalty income in the first quarter of 2009.
Net earnings of the Fund for the quarter were $4.9 million ($0.524 per unit on a fully diluted basis) compared to $4.2 million ($0.482 per unit on a fully diluted basis) for the same quarter in 2008. The high earnings per unit are mainly attributed to the future income tax adjustments made in the current and previous years.
Same store sales growth ("SSSG") for three of the four brands increased during the first quarter of 2009 compared to the same quarter last year. Same store sales growth was 4.2% for Pizza Delight compared to 4.3 percent in 2008. Same store sales for Mikes grew by 1.4% in the first quarter, compared to -2.7 percent in the first quarter 2008. Scores registered 1.3% growth in same store sales versus a decline of 7.6 percent for the same period last year. Baton Rouge, which is a higher end format more sensitive to consumer spending declines related to the current economic crisis, recorded a 7.5% decrease in same store sales, compared to a 1.4% decrease in the first quarter of 2008. Overall, SSSG for the group was -0.3%, compared to a SSSG of -2.4% for the same quarter last year.
"Despite a tough economic environment, three of our four brands registered increases in same store sales," said William Lane, chief financial officer of Imvescor. "We are encouraged but we remain cautious in the current environment."
During the quarter, one Mikes and one Pizza Delight restaurant were renovated, and one additional Scores restaurant was opened.
Complete financial statements are available at www.sedar.com
About PDM Royalties Income Fund
The Fund is a limited purpose open-ended trust established under the laws of Ontario. The Fund will make monthly distributions of its available cash to holders of units. The Fund indirectly owns the trade marks and intellectual property for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands and has licensed them to Imvescor in consideration for a royalty equal to 4% of system sales for Pizza Delight(R) and Mikes(R) restaurants, and a royalty rate of 6% for Scores(R) and Baton Rouge(R) restaurants.
Imvescor is a privately owned corporation, headquartered in Moncton, New Brunswick. It operates franchised and corporate restaurants under the brand names Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) restaurants. Pizza Delight(R) operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Baton Rouge(R) operates in the Province of Quebec and Ontario in the casual dining segment.
Certain information regarding the Fund contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Fund cautions that actual performance will be affected by a number of factors, many of which are beyond the Fund's control, and that future events and results may vary substantially from what the Fund currently foresees. Discussion of the various factors that may affect future results is contained in the annual information form of the Fund dated March 30, 2009 which is available at www.sedar.com. The Fund's forward-looking statements are expressly qualified in their entirety by this cautionary statement.