MONCTON, NB, Dec. 21 /CNW/ - PDM Royalties Income Fund (the "Fund") (TSX: PDM.UN) announced today a cash distribution of $0.12 per unit for the month of December, 2006, this reflects an annual distribution of $1.44 per unit. The distribution will be paid to unitholders of record at the close of business on December 31, 2006 and will be payable on or before January 31, 2007.
For those unitholders holding units outside a tax deferred plan, the Fund estimates that the 2006 distributions will be treated approximately as 80% taxable income and 20% as a return of capital. The proportion of these figures may change when the actual results for the fiscal year are calculated.
Royalties paid to the Fund will be adjusted annually to include the franchise revenues of the new Pizza Delight, Mikes, Scores, and Baton Rouge restaurants opened prior to October 2 of each year.
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, Mikes, and Scores brands and has licensed them to Pizza Delight in consideration for a royalty equal to 4% of system sales, and in the case of Scores and Baton Rouge, the royalty rate is 6%.
Pizza Delight 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 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 has operations in Quebec and Ontario in the high end casual segment.