Provides update on previously announced plans to refocus, reorganize and
restructure its business
TORONTO, Jan. 22 /CNW/ - Priszm Income Fund (TSX: QSR.UN) today announced
a cash distribution for the month of January 2008 of $0.10 per unit payable on
February 15, 2008 to Ordinary and Exchangeable Unitholders of record on
January 31, 2008. The reinstatement of its distribution to $0.10 per unit per
month was previously announced in October 2007 as part of its plan to refocus
and restructure its business. The January distribution is the 50th consecutive
cash distribution declared since Priszm began operations on November 10, 2003.
Priszm also reported that as part of the plan to refocus and restructure
its business, it has closed 19 marginally performing stores. The store
closures will result in a positive impact on EBITDA in 2008 of approximately
Priszm Venture Assets Group has been created and is being led by Rupert
Altschuler to drive the process of re-franchising approximately 120 locations
to new owners over the next 24 months as part of a company-wide refocusing
strategy. Priszm expects it will receive between $20 million and $30 million
in gross proceeds from the sale of these restaurants. Parties interested in
the re-franchising opportunities are encouraged to contact the company for
Additionally, to fit with its revised asset base, the company has
realigned the structure of its business, which will result in savings of
$4 million in 2008. The company continues to pursue other cost savings
"While we have had to make some tough decisions in executing against our
stated plans, I am pleased to say we are making good progress on all fronts,"
said Jeff O'Neill, President and Chief Operating Officer of Priszm. "The team
is well along in the process of reorganizing and restructuring the business.
As a result, and as we stated back in October, we are increasing our monthly
cash distribution to $0.10 per unit commencing this month."
As part of the reorganization and streamlining of the business, the
company's operations have now also been divided into two geographic regions.
Jim Robertson has assumed the role of Vice President, Operations Ontario and
Western Canada, and Jean Trudel has assumed the role of Vice President,
Operations, Quebec and Eastern Canada.
"By dividing operations into two geographic regions, we will be better
equipped to identify and maximize opportunities and efficiencies," said Mr.
O'Neill. "The reorganization is an integral part of our turnaround plan and we
are confident it will help improve our business performance."
About Priszm Income Fund
Priszm Income Fund (TSX: QSR.UN) has a 60.2 per cent interest in Priszm
LP, which owns and operates 466 quick service restaurants in seven provinces
across Canada. The KFC, Taco Bell and Pizza Hut restaurants under Priszm serve
1.5 million customers a week and employ approximately 9,000 people. Currently,
99 locations are multi-branded, combining two or more of the Fund's restaurant
concepts. To find out more about Priszm Income Fund (TSX: QSR.UN), visit our
website at http://www.priszm.com.
Any forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties that are
difficult to predict. Actual results might differ materially from projections
suggested in any forward-looking statements due to factors such as the
competitive nature of the quick service restaurant industry, the ability of
Priszm and Priszm LP to execute a growth and development strategy, the
reliance of Priszm and Priszm LP on key personnel, the terms and conditions of
Priszm LP's franchise arrangements, and risk associated with the structure of
income trusts. Priszm and Priszm LP assume no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Additional
information identifying risks and uncertainties is contained in Priszm's
filings with the Canadian securities regulators, available at www.sedar.com.
For further information:
For further information: Investors: Trish Moran, (416) 739-2906,
firstname.lastname@example.org; Media: Wilcox Group, (416) 203-6666,