Welcome!

News Feed Item

Boston Pizza International Adds Seven New Restaurants Opened in 2012 to the Royalty Pool of Boston Pizza Royalties Income Fund

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/03/13 -- Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) and Boston Pizza International Inc. ("BPI") announced today that effective January 1, 2013, the Fund's royalty pool (the "Royalty Pool") has been adjusted to include the royalties from seven new restaurants opened across Canada between January 1, 2012 and December 31, 2012 (the "Period"), six of which are full service restaurants and one of which is a fast casual location. Two full service restaurants were permanently closed during the Period. This is the eleventh consecutive annual increase of royalties payable to the Fund and, with the adjustment for these openings and closures during 2012, the Royalty Pool now includes 348 Boston Pizza restaurants.

The Fund indirectly owns the Boston Pizza trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada. In 2002, the Fund licensed these trademarks to BPI for 99 years and in return BPI pays the Fund a top line royalty of 4% of franchise revenues of Royalty Pool restaurants. Annually, the Royalty Pool of Boston Pizza restaurants is increased to include the new Boston Pizza restaurants that have opened in the prior year net of any permanent closures.

"Boston Pizza continues to open new locations and grow franchise sales, further strengthening our position as Canada's number one casual dining brand," said Mark Pacinda, President and Chief Executive Officer of BPI. "Since the inception of the Fund, the Royalty Pool has more than doubled, growing by 194 restaurants from 154 in 2002 to 348 Boston Pizza locations today."

On January 1 of each year (the "Adjustment Date"), an adjustment is made to add to the Royalty Pool new Boston Pizza restaurants that opened and to remove any Boston Pizza restaurants that permanently closed since the last Adjustment Date. In return for adding net additional royalty revenue, BPI receives the right to indirectly acquire additional units of the Fund ("Additional Entitlements"). The adjustment for net additional royalty revenue added to the Royalty Pool is designed to be accretive to unitholders. For each Adjustment Date occurring after January 2, 2011, the Additional Entitlements are calculated at 92.5% of the estimated net royalty revenue added to the Royalty Pool, multiplied by one minus the estimated effective average tax rate (expressed as a decimal) that the Fund will pay during that year, divided by the yield of the Fund, divided by the weighted average unit price. BPI receives 80% of the Additional Entitlements initially, with the balance received when both the actual full year performance of the new restaurants and the effective average tax rate paid by the Fund are known with certainty. BPI receives 100% of distributions from the Additional Entitlements throughout the year. Once these new restaurants have been part of the Royalty Pool for a full year, an audit of each of the royalty revenues of these restaurants received from BPI and the effective average tax rate paid by the Fund is performed. At such time an adjustment is made to reconcile distributions paid to BPI and the Additional Entitlements received by BPI.

In return for adding the royalty revenue from the seven new restaurants to the Royalty Pool, less revenue from the two permanent closures, BPI has received 155,559 Additional Entitlements. The 155,559 represents 80% (194,449 represents 100%) of the Additional Entitlements with the balance to be received (as adjusted) by BPI when both the actual full year performance of the new restaurants and the effective average tax rate paid by the Fund are known with certainty. The 155,559 Additional Entitlements represents 0.9% of the Fund units on a fully diluted basis. The full 194,449 Additional Entitlements would represent 1.1% of the Fund on a fully diluted basis. Including the 194,449 Additional Entitlements described above, BPI has the right to acquire 2,197,957 Fund Units, representing 12.4% of the Fund Units on a fully diluted basis. The issuance of the Additional Entitlements to BPI is subject to approval by the Toronto Stock Exchange.

The estimated annual gross franchise revenue for the seven new restaurants in 2013 is $11.6 million. Pursuant to the Amended and Restated Limited Partnership Agreement governing Boston Pizza Royalties Limited Partnership, BPI is required to deduct from this amount the actual gross franchise revenue received from the two permanently closed restaurants during the first 12 month period immediately following their addition to the Royalty Pool, which is $3.4 million. Consequently, the estimated annual net franchise revenue for the new restaurants in 2012 is $8.2 million. The estimated 4% royalty revenue the Fund will receive in 2013 from these additional new restaurants is $0.3 million. The pre-tax royalty revenue for the purposes of calculating the Additional Entitlements, therefore, is approximately $0.3 million or 92.5%. The estimated effective average tax rate that the Fund will pay in the calendar year 2013 is 25.0%. Accordingly, the after-tax royalty revenue for the purposes of calculating the Additional Entitlements is approximately $0.2 million ($0.3 million x (1 - 0.25)). Once both the actual performance of these new restaurants for 2013 and the actual effective average tax rate paid by the Fund for 2013 are known, the number of Additional Entitlements will be adjusted in 2014 to reflect the actual royalty revenue received by the Fund in 2013 and the actual effective average tax rate paid by the Fund in 2013. As of January 1, 2013, there are 348 restaurants in the Royalty Pool.


          Summary of Boston Pizza Royalties Income Fund Units               
                                                                            
                                                               Issued &     
                                                     Outstanding Units,     
                                                             Additional     
                                           Issued &     Entitlements, &     
                               Outstanding Units, &         Holdback of     
                                         Additional          Additional     
                                       Entitlements        Entitlements     
                                                                            
Issued and Outstanding Units as                                             
 of Dec. 31, 2012                        15,570,644          15,570,644     
BPI Additional Entitlements -                                               
 Outstanding as of Dec. 31,                                                 
 2012                                     1,959,875           1,959,875     
BPI Additional Entitlements -                                               
 Holdback as of Dec. 31, 2012                   N/A              43,633  (1)
-----------------------------------------------------------------------     
Number of Fully Diluted Units                                               
 as of Dec. 31, 2012                     17,530,519          17,574,152     
                               ----------------------------------------     
                               ----------------------------------------     
                                                                            
Issued and Outstanding Units as                                             
 of Dec. 31, 2012 & Jan. 1,                                                 
 2013                                    15,570,644          15,570,644     
BPI Additional Entitlements -                                               
 Outstanding as of Dec. 31,                                                 
 2012                                     1,959,875           1,959,875     
BPI Additional Entitlements -                                               
 Holdback as of Dec. 31, 2012                   N/A              43,633  (1)
BPI Additional Entitlements -                                               
 Issued & Outstanding as of                                                 
 Jan. 1, 2013  (5 net new                                                   
 Restaurants added to Royalty                                               
 Pool)                                      155,559             155,559  (2)
BPI Additional Entitlements -                                               
 Holdback as of Jan. 1, 2013 (5                                             
 net new Restaurants added to                                               
 Royalty Pool)                                  N/A              38,890  (3)
-----------------------------------------------------------------------     
Number of Fully Diluted Units                                               
 as of Jan. 1, 2013                      17,686,078          17,768,601     
                               ----------------------------------------     
                               ----------------------------------------     
                                                                            
                                                                            
BPI Total Ownership as of Jan.                                              
 1, 2013                                      12.0%               12.4%     
BPI Ownership based on 5 net                                                
 new Restaurants added to                                                   
 Royalty Pool only as of Jan.                                               
 1, 2013                                       0.9%                1.1%     
                                                                            
(1) Additional Entitlements from the 3 net new restaurants added to         
 Royalty Pool on Jan. 1, 2012 determined in 2013, once audited results      
 of the 3 net new restaurants and actual effective average tax rate         
 paid by the Fund are known.                                                
(2) Issued effective Jan. 1, 2013.                                          
(3) Holdback of Additional Entitlements from 5 net new restaurants          
 added to Royalty Pool on Jan. 1, 2013. Actual number of Additional         
 Entitlements will be determined in early 2014, effective Jan. 1, 2013,     
 once audited results of the 5 net new restaurants and actual effective     
 average tax rate paid by the Fund are known.                               

The Trustees of the Fund have approved the contents of this news release.

® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trade-marks and unregistered Canadian trade-marks 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...