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A and W Revenue Royalties Income Fund T.AW.UN

Alternate Symbol(s):  AWRRF

A&W Revenue Royalties Income Fund (the Fund) is a Canada-based company. The Fund is a limited purpose trust established to invest in A&W Trade Marks Inc. (Trade Marks), which through its interest in the A&W Trade Marks Limited Partnership (Partnership), owns the A&W trademarks used in the A&W quick service restaurant business in Canada. In return for licensing, A&W Food Services of Canada Inc. (A&W Food Services) to use its trademarks, Trade Marks receives royalties equal to 3% of the sales of A&W restaurants in the royalty pool. The total number of A&W restaurants in the royalty pool is 1,047. The Fund's capital management objectives are to have sufficient cash and cash equivalents to pay distributions to its unitholders, after satisfaction of its debt service and income tax obligations; provisions for general and administrative expenses; retention of reasonable working capital reserves, and amounts that may be paid by the Fund in connection with any cash redemptions of units.


TSX:AW.UN - Post by User

Post by TimeScapeon Apr 29, 2020 3:40pm
369 Views
Post# 30968003

Decent earnings report

Decent earnings reportSSS were higher up until mid March.  The royalty payments to the fund will be suspended for all of Q2, in addition to the one that was already held back, so at least 4 months worth of dividends delayed.  They expect ALL royalties/dividends plus interest to be paid by the end of 2021, so for the 18 months from July 2020 to Dec 2021, that makes 22 months worth of dividends being paid in just 18 months.  Of course, the SSS will likely be somewhat lower, even after the stores are all opened again, but the extra months' back dividends will help to make up the difference.
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