Toronto Stock Exchange: BPF.UN
HIGHLIGHTS
- Franchise Sales1 of $229.8
million for the Period and $627.8
million YTD, representing an increase of 7.9% and 31.7%,
respectively, versus the same periods one year ago.
- Same Restaurant Sales2 of 8.4% for the Period and
32.6% YTD. As COVID-19 began to adversely affect sales in Boston
Pizza restaurants in March of 2020, the Fund believes that it is
also useful to calculate and report SRS comparing 2022 Franchise
Sales to 2019 Franchise Sales. If SRS were calculated comparing
Franchise Sales in the Period and YTD to Franchise Sales in the
same periods in 2019, SRS would be 7.4% and 0.7%,
respectively.
- Cash flows generated from operating activities of $9.7 million for the Period and $25.4 million YTD, representing an increase of
0.8% and 15.9%, respectively, versus the same periods one year
ago.
- Distributable Cash3 increased 12.0% for the Period
and 27.7% YTD, and Distributable Cash per Unit4
increased 11.9% for the Period and 27.7% YTD.
- Payout Ratio5 of 82.0% for the Period, 93.2% YTD and
92.5% on a trailing 12-month basis. Cash balance at the end of the
Period was $6.7 million.
- On November 9, 2022, the trustees
of the Fund declared a distribution for the period of October 1, 2022 to October
31, 2022 of $0.100 per unit of
the Fund ("Unit"), which will be payable on November 30, 2022 to unitholders of the Fund
("Unitholders") of record on November
21, 2022.
VANCOUVER, BC, Nov. 10,
2022 /CNW/ - Boston Pizza Royalties Income Fund
(the "Fund") and Boston Pizza International Inc.
("BPI") reported financial results today for the third
quarter period from July 1, 2022 to September 30, 2022
(the "Period") and January 1, 2022 to
September 30, 2022 ("YTD"). A copy of this press
release, the condensed consolidated interim financial statements
and related management's discussion and analysis
("MD&A") of the Fund and BPI are available at
www.sedar.com and www.bpincomefund.com. The Fund will host a
conference call to discuss the results on November 10, 2022 at 8:30 am Pacific Time
(11:30 am Eastern Time). The call can be accessed
by dialling 1-800-319-4610 or 604-638-5340. A replay will be
available until December 10, 2022 by
dialling 1-800-319-6413 or 604-638-9010 and entering the access
code: 9355 followed by the # sign. The replay will also be
available at www.bpincomefund.com. Capitalized terms used in
this press release that are not otherwise defined have the meanings
ascribed to them in the Fund's MD&A for the Period and YTD.
"The third quarter of 2022 was the second consecutive quarter
that Boston Pizza exceeded pre-pandemic sales levels, so we
continue to be pleased with how our sales are trending in this
post-pandemic recovery period. The elimination of
government-imposed restrictions related to COVID-19 was a key
factor contributing to our improved performance." said
Jordan Holm, President of BPI.
"As we close out 2022, we have several initiatives designed to
continue our positive momentum, while remaining cautious as we help
our franchisees navigate the current macroeconomic conditions and
other challenges facing the restaurant industry."
COVID-19 continues to impact the business of the Fund, BPI and
Boston Pizza Canada Limited Partnership ("BP Canada LP"),
and the operation of Boston Pizza restaurants. Despite the
impact of COVID-19, Franchise Sales of Boston Pizza restaurants in
the Royalty Pool, and the resulting Royalty and Distribution
Income, for October 2022 increased by approximately 23%
compared to October 2021 and approximately 9% compared to
October 2019. SRS for October
2022 was approximately 24% when compared to the same period
in 2021 and approximately 12% when compared to the same period in
2019.
PERIOD AND YTD RESULTS
SRS, a key driver of distribution growth for Unitholders,
was 8.4% for the Period compared to 15.1% reported in the third
quarter of 2021. If SRS were calculated comparing
Franchise Sales in the Period to Franchise Sales for the same
period in 2019, SRS would be 7.4%. SRS was 32.6% YTD compared
to 3.1% reported year-to-date in 2021. If SRS were calculated
comparing Franchise Sales YTD to Franchise Sales year-to-date in
2019, SRS would be 0.7%. The increase in SRS for the Period
and YTD was due to increases in restaurant guest traffic mainly due
to the easing and elimination of dining restrictions, and increased
average guest cheque.
Franchise Sales of Boston Pizza restaurants in the Royalty Pool
were $229.8 million for the
Period and $627.8 million YTD
compared to $213.0 million and
$476.9 million, respectively,
for the same periods one year ago. The $16.8 million increase in Franchise Sales for the
Period and $150.9 million increase in
Franchise Sales YTD were primarily due to positive SRS.
The Fund's net and comprehensive income was $9.5 million for the Period compared to
$5.4 million for the third
quarter of 2021. The $4.1 million increase in the Fund's net and
comprehensive income for the Period compared to the third quarter
of 2021 was primarily due to an increase in fair value gain of
$3.7 million and an increase in
Royalty and Distribution Income of $0.9 million, partially offset by an
increase in interest and financing expenses of $0.2 million and an increase in income tax
expense of $0.2 million.
The Fund's net and comprehensive income was $24.2 million YTD compared to $24.8 million year-to-date in 2021. The
$0.6 million decrease in the
Fund's net and comprehensive income YTD compared to the same period
in 2021 was due to a decrease in fair value gain of $6.0 million, an increase in income tax expense
of $2.0 million and an increase
in interest and financing expense of $0.5
million, partially offset by an increase in Royalty and
Distribution Income of $8.0
million.
The Fund's cash flows generated from operating activities was
$9.7 million compared to
$9.6 million in the third
quarter of 2021. The increase of $0.1 million was due to an increase of
Royalty and Distribution Income of $0.9 million, partially offset by a decrease
in changes in working capital of $0.8
million. The Fund's cash flows generated from
operating activities YTD was $25.4
million compared to $22.0 million for the same period one year
ago. The increase of $3.4 million was due to an increase of
Royalty and Distribution Income of $8.0 million, partially offset by a decrease
in changes in working capital of $2.8 million and an increase in income taxes
paid of $1.6 million.
The Fund generated Distributable Cash of $7.5 million for the Period compared to
$6.7 million for the third
quarter of 2021. The increase in Distributable Cash of
$0.8 million or 12.0% was
primarily due to a decrease of repayments of long-term debt of
$1.0 million and an increase of
cash flows generated from operating activities of $0.1 million, partially offset by increased BPI
Class B Unit entitlement of $0.2
million and increased SIFT Tax on Units of $0.2 million. The Fund generated
Distributable Cash of $18.4 million YTD compared to $14.4 million year-to-date in 2021.
The increase in Distributable Cash of $4.0 million or 27.7% was primarily due to
an increase in cash flow generated from operating activities of
$3.4 million and a decrease in
repayments of long-term debt of $1.6 million, partially offset by increased
BPI Class B Unit entitlement of $0.7 million and increased SIFT Tax on Units
of $0.4 million.
The Fund generated Distributable Cash per Unit of $0.347 for the Period compared to $0.310 per Unit for the third quarter of
2021. The Fund generated Distributable Cash per Unit of
$0.853 YTD compared to $0.668 per Unit
year-to-date in 2021. The increase in Distributable Cash per
Unit of $0.037 or 11.9% for the
Period and $0.185 or 27.7% YTD was
primarily attributable to the increase in Distributable Cash
outlined above.
The Fund's Payout Ratio for the Period was 82.0% compared to
62.9% in the third quarter of 2021. The increase in the
Fund's Payout Ratio for the Period was due to distributions paid
increasing by $1.9 million or
46.2%, partially offset by Distributable Cash increasing by
$0.8 million or 12.0%. The
Fund's Payout Ratio YTD was 93.2% compared to 117.6% year-to-date
in 2021. The decrease in the Fund's Payout Ratio YTD was due
to Distributable Cash increasing by $4.0 million or 27.7%, partially offset by
distributions paid increasing by $0.2 million or 1.3%. Payout Ratio is
calculated by dividing the amount of distributions paid during the
applicable period by the Distributable Cash for that period.
Accordingly, the Payout Ratio for year-to-date in 2021 factors in
the Special Distribution that was paid on January 29, 2021
even though the cash generated to fund the Special Distribution was
generated during 2020. If the Special Distribution was
excluded in the calculation of Payout Ratio for year-to-date 2021,
the Payout Ratio would be 87.6%. The Fund's Payout Ratio is
typically higher in the first and fourth quarters compared to the
second and third quarters since Boston Pizza restaurants generally
experience higher Franchise Sales levels during the summer months
when restaurants open their patios and benefit from increased
tourist traffic. On a trailing 12-month basis, the Fund's
Payout Ratio was 92.5% as at September 30, 2022.
DISTRIBUTIONS
During the Period, the Fund declared and paid distributions on
the Units in the aggregate amount of $6.1 million or $0.285 per Unit. During the third
quarter of 2021, the Fund declared and paid distributions on the
Units in the aggregate amount of $4.2 million or $0.195 per Unit. The amount of
distributions declared and paid during the Period increased by
$1.9 million or $0.090 per Unit due to the monthly
distribution rate increasing from $0.065 per Unit to $0.085 per Unit commencing with the September 2021 distribution and increasing again
from $0.085 per Unit to $0.100 per Unit commencing with the
July 2022 distribution (collectively, the "Distribution
Increases"). YTD, the Fund declared distributions on the
Units in the aggregate amount of $15.3 million or $0.710 per Unit. During the same
period in 2021, the Fund declared distributions on the Units in the
aggregate amount of $11.2 million or $0.520 per Unit. YTD, the Fund paid
distributions on the Units in the aggregate amount of $17.1 million or $0.795 per Unit. During the same
period in 2021, the Fund paid distributions on the Units in the
aggregate amount of $16.9 million or $0.785 per Unit. The amount of
distributions declared YTD increased by $4.1 million or $0.190 per Unit due to due to the Distribution
Increases. The amount of distributions paid YTD increased by
$0.2 million or $0.010 per Unit due to the Distribution
Increases, which was partially offset by a combination of the
special distribution of $0.200 per Unit, that was declared on
December 16, 2020 and paid on January 29, 2021 to
Unitholders of record at the close of business on December 31,
2020 (the "Special Distribution") without any special
distribution being paid YTD.
On November 9, 2022, the trustees of the Fund declared a
distribution for the period of October 1, 2022 to
October 31, 2022 of $0.100 per Unit, which will be payable on
November 30, 2022 to Unitholders of record on
November 21, 2022. Including the October 2022 distribution, which will be paid on
November 30, 2022, the Fund will have paid out total
distributions of $389.3 million
or $24.46 per Unit which includes
238 monthly distributions and the Special Distribution.
FINANCIAL SUMMARY
The tables below set out selected information from the Fund's
condensed consolidated interim financial statements together
with other data and should be read in conjunction with the
condensed consolidated interim financial statements and
MD&A of the Fund for the three month and nine month periods
ended September 30, 2022 and September 30, 2021.
For the periods
ended September 30
|
Q3 2022
|
Q3 2021
|
YTD 2022
|
YTD 2021
|
(in thousands of
dollars – except restaurants, SRS, Payout Ratio and per Unit
items)
|
|
|
|
|
Number of restaurants
in Royalty Pool
|
383
|
387
|
383
|
387
|
Franchise Sales
reported by restaurants in the Royalty Pool
|
229,848
|
213,038
|
627,834
|
476,874
|
|
|
|
|
|
Royalty6 income
|
9,194
|
8,522
|
25,113
|
19,075
|
Distribution
Income7
|
3,027
|
2,815
|
8,285
|
6,329
|
Total
revenue
|
12,221
|
11,337
|
33,398
|
25,404
|
Administrative
expenses
|
(334)
|
(317)
|
(1,021)
|
(972)
|
Interest expense on
debt and financing fees
|
(886)
|
(1,000)
|
(2,802)
|
(2,940)
|
Interest expense on
Class B Unit liability
|
(835)
|
(450)
|
(2,133)
|
(1,469)
|
Interest
income
|
31
|
18
|
46
|
87
|
Profit before fair
value gain (loss) and income taxes
|
10,197
|
9,588
|
27,488
|
20,110
|
Fair value gain (loss)
on investment in BP Canada LP
|
2,183
|
(3,928)
|
(873)
|
13,912
|
Fair value (loss) gain
on Class B Unit liability
|
(972)
|
1,751
|
389
|
(6,197)
|
Fair value gain on
Swaps
|
572
|
262
|
3,785
|
1,573
|
Current and deferred
income tax expense
|
(2,478)
|
(2,230)
|
(6,612)
|
(4,633)
|
Net and comprehensive
income
|
9,502
|
5,443
|
24,177
|
24,765
|
|
|
|
|
|
Basic earnings per
Unit
|
0.44
|
0.25
|
1.12
|
1.15
|
Diluted earnings per
Unit
|
0.41
|
0.13
|
1.00
|
1.15
|
|
|
|
|
|
Distributable
Cash3 / Distributions / Payout
Ratio5
|
|
|
|
|
Cash flows generated
from operating activities
|
9,667
|
9,586
|
25,436
|
21,951
|
BPI Class B Unit
entitlement[8]
|
(1,083)
|
(923)
|
(2,635)
|
(1,912)
|
Interest paid on
long-term debt
|
(939)
|
(991)
|
(2,777)
|
(2,800)
|
Principal repayments
on long-term debt
|
-
|
(1,036)
|
(1,500)
|
(3,108)
|
Current income tax
expense
|
(2,438)
|
(2,190)
|
(6,492)
|
(4,493)
|
Current income tax
paid
|
2,270
|
2,230
|
6,319
|
4,730
|
Distributable
Cash3
|
7,477
|
6,676
|
18,351
|
14,368
|
Distributions
paid
|
6,133
|
4,196
|
17,109
|
16,894
|
Payout
Ratio5
|
82.0 %
|
62.9 %
|
93.2 %
|
117.6 %
|
Distributable Cash per
Unit4
|
0.347
|
0.310
|
0.853
|
0.668
|
Distributions paid per
Unit
|
0.285
|
0.195
|
0.795
|
0.785
|
|
|
|
|
|
Other
|
|
|
|
|
Same Restaurant
Sales2
|
8.4 %
|
15.1 %
|
32.6 %
|
3.1 %
|
Number of restaurants
opened
|
0
|
0
|
0
|
0
|
Number of restaurants
closed
|
1
|
0
|
3
|
2
|
|
|
|
|
|
Sep 30,
2022
|
Dec 31,
2021
|
Total assets
|
|
|
415,906
|
411,313
|
Total
liabilities
|
|
|
131,210
|
135,514
|
|
|
|
|
|
|
SHORT-TERM OUTLOOK
The two principal factors that affect SRS are changes in guest
traffic and changes in average guest cheque. BPI's and BP
Canada LP's strategies to drive higher guest traffic include
attracting a wide variety of guests into the restaurant, sports bar
and take-out and delivery parts of each location, offering a
compelling value proposition to guests and leveraging a larger
marketing budget versus the previous year along with a revised
calendar of national and local store promotions. Increased
average cheque levels are expected to be achieved through a
combination of culinary innovation and annual menu
re-pricing.
The actions taken by BPI and BP Canada LP to strengthen its
business during COVID-19 have allowed BPI and BP Canada LP to be in
a good position to address any on-going COVID-19 related challenges
or other future challenges in the restaurant industry. The
easing and elimination of government-imposed restrictions in
Canada related to COVID-19 has
enabled Boston Pizza to continue to drive improved performance and
guest traffic. However, with supply chain challenges, rising
interest rates, increasing input costs and labour shortages
impacting most of the restaurant industry, BPI's management remains
cautious. The focus of BPI's management is to adapt the
business to mitigate these challenges and capitalize on the recent
sales momentum resulting from the elimination of COVID restrictions
in the restaurant industry.
The trustees of the Fund will continue to closely monitor the
Fund's available cash balances given the volatile economic
outlook.
Forward Looking Information
Certain information in this press release constitutes
"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, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited
Partnership, Boston Pizza Holdings Limited Partnership, Boston
Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, BP Canada LP,
Boston Pizza Canada Holdings Inc., Boston Pizza Canada Holdings
Partnership, 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. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Fund or its trustees
expect or anticipate will or may occur in the future, including
such things as, the continued impact of COVID-19 on the business of
the Fund, BPI and BP Canada LP and the operation of Boston Pizza
restaurants, Boston Pizza restaurants generally experiencing higher
Franchise Sales levels during the summer months when restaurants
open their patios and benefit from increased tourist traffic, BPI
and BP Canada LP's ability to implement strategies driving higher
guest traffic and increased average cheque levels, continued
improved performance and guest traffic due to the easing and
elimination of government-imposed COVID-19 restrictions in the
Canadian restaurant industry, the focus of BPI's management to
adapt the business to mitigate challenges related to supply chain,
rising interest rates, increasing input costs and labour shortages,
the trustees of the Fund continuing to closely monitor the Fund's
available cash balances given the volatile economic outlook, and
other such matters are forward-looking information. When used
in this press release, forward-looking information may include
words such as "anticipate", "estimate", "may", "will", "expect",
"believe", "plan", "should", "continue" and other similar
terminology. The material factors and assumptions used to
develop the forward-looking information contained in this press
release include the following: the Fund maintaining the same
distribution policy, expectations related to future general
economic conditions, expectations that the Fund's Payout Ratio is
typically higher in the first and fourth quarter; Boston Pizza
restaurants maintaining operational excellence, the COVID-19
pandemic continuing to negatively impact the restaurant industry,
Franchise Sales, SRS and Distributable Cash; and that COVID-19 and
its negative impacts will eventually dissipate. Risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any
future results, performance or achievement expressed or implied by
the forward-looking information contained herein, relate to (among
others): competition, demographic trends, consumer preferences and
discretionary spending patterns, business and economic conditions,
legislation and regulation, reliance on operating revenues,
accounting policies and practices, the results of operations and
financial condition of BPI, BP Canada LP and the Fund, pandemics
and national health crises, in particular COVID-19, as well as
those factors discussed under the heading "Risks and Uncertainties"
in the most recent Annual Information Form of the Fund. This
information reflects current expectations regarding future events
and operating performance and speaks only as of the date of this
press release. Except as required by law, neither the Fund
nor BPI assumes any obligation to update previously disclosed
forward-looking information. For a complete list of the risks
associated with forward-looking information and the Fund's
business, please refer to the "Risks and Uncertainties" and "Note
Regarding Forward-Looking Information" sections included in the
most recent Annual Information Form of the Fund available at
www.sedar.com and www.bpincomefund.com.
The trustees of the Fund have approved the contents of this news
release.
® Boston Pizza Royalties Limited Partnership. All Boston Pizza
registered Canadian trademarks and unregistered Canadian trademarks
containing the words "Boston", "BP", and/or "Pizza" are trademarks
owned by the Boston Pizza Royalties Limited Partnership and
licensed by the Boston Pizza Royalties Limited Partnership to
Boston Pizza International Inc.
© Boston Pizza International Inc. 2022.
___________
|
Notes – Non-GAAP,
Specified Financial Measures and Other Information
|
|
|
1
|
"Franchise
Sales" is the basis upon which Royalty and Distribution Income
are payable, and means the gross revenue: (i) of the corporate
Boston Pizza restaurants in Canada owned by BPI that are in the
Royalty Pool; and (ii) reported to BP Canada LP by franchised
Boston Pizza restaurants in Canada that are in the Royalty Pool,
without audit or other form of independent assurance, and in the
case of both (i) and (ii), after deducting revenue from the sale of
liquor, beer, wine and revenue from BP Canada LP approved national
promotions and discounts and excluding applicable sales and similar
taxes. Nevertheless, BP Canada LP periodically conducts audits of
the Franchise Sales reported to it by its franchisees, and the
Franchise Sales reported herein include results from sales audits
of earlier periods. Franchise Sales is reported on a quarterly
basis in the Fund's financial statements, however, the financial
statements do not report it on a monthly basis. Therefore,
when disclosed on a monthly basis herein, this is a supplementary
financial measure under National Instrument 52-112 Non-GAAP and
Other Financial Measures Disclosure
("NI 52‑112"). The Fund believes that Franchise
Sales for this month provides useful information to investors
regarding recent performance of Boston Pizza.
|
|
|
2
|
"Same Restaurant
Sales" or "SRS" is a supplementary financial measure
under NI 52-112 and therefore may not be comparable to similar
measures presented by other issuers. Prior to the fourth
quarter of 2021, the Fund defined SRS as the change in gross
revenues of Boston Pizza restaurants in the Royalty Pool as
compared to the gross revenues for the same period in the previous
year (where restaurants were open for a minimum of 24
months). Commencing with the fourth quarter of 2021, the Fund
defines SRS as the change in Franchise Sales of Boston Pizza
restaurants in the Royalty Pool as compared to the Franchise Sales
for the same period in the previous year (where restaurants were
open for a minimum of 24 months). The Fund believes that the
current method of calculating SRS provides Unitholders more
meaningful information regarding the performance of Boston Pizza
restaurants since Royalty and Distribution Income are payable to
the Fund by BPI and BP Canada LP on Franchise Sales and
not gross revenues of Boston Pizza restaurants. All
historical SRS figures contained in this press release have been
restated to conform to the current method of calculating
SRS.
|
|
|
3
|
"Distributable
Cash" is a non-GAAP financial measure under
NI 52-112. Distributable Cash is not a standardized
financial measure under IFRS and may not be comparable to similar
financial measures disclosed by other issuers. The Fund
defines Distributable Cash to be, in respect of any particular
period, the Fund's cash flows generated from operating activities
for that period (being the most comparable financial measure in the
Fund's primary financial statements) minus (a) BPI's
entitlement in respect of its Class B Units in respect of the
period (see note 8 below), minus (b) interest paid on
long-term debt during the period, minus (c) principal
repayments on long-term debt that are contractually required to be
made during the period, minus (d) the current income tax
expense in respect of the period, plus (e) current income tax
paid during the period (the sum of (d) and (e) being "SIFT Tax
on Units"). Management believes that Distributable Cash
provides investors with useful information about the amount of cash
the Fund has generated and has available for distribution on the
Units in respect of any period. The tables in the "Financial
Highlights" section of this press release provide a reconciliation
from this non-GAAP financial measure to cash flows generated from
operating activities, which is the most directly comparable IFRS
measure. Current income tax expense in respect of any period
is prepared using reasonable and supportable assumptions (including
that the base rate of SIFT Tax will not increase throughout the
calendar year and that certain expenses of the Fund will continue
to be deductible for income tax purposes), all of which reflect the
Fund's planned courses of action given management's judgment about
the most probable set of economic conditions. There is a risk
that the federal government of Canada could increase the base rate
of SIFT Tax or that applicable taxation authorities could assess
the Fund on the basis that certain expenses of the Fund are not
deductible. Investors are cautioned that if either of these
possibilities occurs, then the actual results for this component of
Distributable Cash may vary, perhaps materially, from the amounts
used in the reconciliation.
|
|
|
4
|
"Distributable Cash
per Unit" is a non-GAAP ratio under NI 52-112.
Distributable Cash per Unit is not a standardized financial measure
under IFRS and may not be comparable to similar financial measures
disclosed by other issuers. The Fund defines Distributable
Cash per Unit for any period as the Distributable Cash generated in
that period divided by the weighted average number of Units
outstanding during that period. Management believes that
Distributable Cash per Unit provides investors with useful
information regarding the amount of cash per Unit that the Fund has
generated and has available for distribution in respect of any
period.
|
|
|
5
|
"Payout Ratio"
is a non-GAAP ratio under NI 52-112. Payout Ratio is not
a standardized financial measure under IFRS and may not be
comparable to similar financial measures disclosed by other
issuers. The Fund defines Payout Ratio for any period as the
aggregate distributions paid by the Fund during that period divided
by the Distributable Cash generated in that period.
Management believes that Payout Ratio provides investors with
useful information regarding the extent to which the Fund
distributes cash generated on Units.
|
|
|
6
|
Boston Pizza Royalties
Limited Partnership ("Royalties LP") licenses BPI the
right to use various Boston Pizza trademarks in return for BPI
paying Boston Pizza Royalties Limited Partnership a royalty equal
to 4% of Franchise Sales of Boston Pizza restaurants (the
"Royalty") in the Fund's royalty pool (the "Royalty
Pool").
|
|
|
7
|
"Distribution
Income" is income received indirectly by the Fund on
Class 1 LP Units and Class 2 LP Units of BP Canada
LP. See the "Overview – Purpose of the Fund / Sources of
Revenue" section of the Fund's MD&A for the Period for more
details.
|
|
|
8
|
"BPI Class B
Unit entitlement" is a supplementary financial measure under
NI 52-112 and therefore may not be comparable to similar
measures presented by other issuers. The BPI Class B
Unit entitlement is the interest expense on Class B Units in
respect of a period plus management's estimate of how much cash BPI
would be entitled to receive pursuant to the limited partnership
agreement governing Royalties LP (a copy of which is available
on www.sedar.com) on its Class B Units if Royalties LP
fully distributed any residual cash generated in respect of that
period after the Fund pays interest on long-term debt, principal
repayments on long-term debt and SIFT Tax on Units in respect of
that period. Management believes that the BPI Class B
Unit entitlement is an important component in calculating
Distributable Cash since it represents the amount of residual cash
generated that BPI would be entitled to receive and therefore would
not be available for distribution to Unitholders. Management
prepares such estimate using reasonable and supportable assumptions
that reflect the Fund's planned courses of action given
management's judgment about the most probable set of economic
conditions.
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SOURCE Boston Pizza Royalties Income Fund