MONCTON, NB, Aug. 11 /CNW/ - PDM ROYALTIES INCOME FUND (TSX: PDM.UN,
PDM.DB) (the "Fund") today reported its financial results for the second
quarter ending June 30, 2008. Same store sales results for the royalty-pooled
restaurants, Pizza Delight(R), Mikes(R), Scores(R), and Bâton Rouge(R) was a
positive 1.4% for the quarter compared to 2.7% in 2007.
Mikes led all brands with an increase of 3.8% (2007 = -2.5%). Management
views this as a strong indication that the brand's turnaround strategy is
gaining momentum through its concept update roll-out, continued focus on offer
enhancement and creating more value for its customers. Pizza Delight continued
its impressive run of quarterly same store sales increases with a positive
3.6% for the quarter (2007 = 5.2%). This is the 20th consecutive quarter or
the fifth year of same store sales growth for Pizza Delight, a significant
achievement for the brand which recently celebrated its fortieth anniversary.
Scores was a negative 2.7% compared to an 11.8% increase in the second quarter
of 2007. Same store sales for the quarter at Bâton Rouge was a 0.6% increase
(2007 = 1.0%).
For the first six months of 2008 Imvescor same store sales were slightly
negative at 0.4% (2007 = +1.9%). Pizza Delight achieved same store sales
growth of 4.0% (2007 = 3.4%), Mikes was up 0.8%; (-3.2% in 2007). Scores was
negative 5.1% (+11.3% in 2007), as was Baton Rouge at -0.4% (2007 = +0.6%).
Despite the significant increase in the price of gas which impacts
customers' discretionary spending, Imvescor management is cautiously
optimistic that same store sales will not be adversely affected in the long
term because of the strength of each of the brands' marketing programs and the
positive momentum gained from concept updates and renovations.
During the second quarter of 2008 sales for the royalty pooled
restaurants grew to $104 million from $93 million. The Fund earned revenues of
$3.7 million, compared to $3.6 million and net earnings before undernoted
items increased to $3.1 million from $2.9 million for the quarter.
On a year to date basis sales for the royalty pooled restaurants grew to
$201 million from $183 million. The Fund earned revenues of $7.2 million,
compared to $7.1 million and net earnings before undernoted items increased to
$6.0 million from $5.7 million for the comparable 6 month periods.
PDM Royalties Income Fund continues its monthly distributions of $0.12
per unit despite the mild slowdown which persisted into the second quarter of
2008. The Fund's cash position (including the PDM Royalties Limited
partnership), after allowing for the debenture interest payment on June 30,
2008, increased by over $500,000 during the six month period.
Complete financial statements are available at www.sedar.com
About the 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, Mikes, Scores, and Bâton Rouge brands and has
licensed them to Imvescor in consideration for a royalty equal to 4% of system
sales for Pizza Delight and Mikes restaurants, and a royalty rate of 6% for
Scores and Bâton Rouge 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 Bâton 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 Quebec and Ontario in the casual
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 28, 2008 which is available at www.sedar.com. The
Fund's forward-looking statements are expressly qualified in their entirety by
this cautionary statement.
For further information:
For further information: William Lane, CMA, Chief Financial Officer, PDM
Royalties Income Fund, (506) 853-0990, firstname.lastname@example.org; www.pdmfund.ca;
www.imvescor.ca; www.pizzadelight.ca; www.mikes.ca; www.scores.ca;