Royalty Pool sales down 87.9% to $18.2M for the quarter and down 49.2% to $160.9M YTD
KRL system sales down 87.9% to $18.8M for the quarter and down 49.7% to $162.9M YTD
Distributable cash down 71.2% to 8.1 cents/Fund unit for the quarter and 28.2% to 44.7 cents/Fund unit YTD Payout ratio was 128.9% for the quarter and 86.9% YTD
Royalty Pool Sales reported by the 105 Keg restaurants in the Royalty Pool were $18,194,000 for the quarter, a decrease of $132,537,000 or 87.9% from the comparable quarter of the prior year. Year-to-date Royalty Pool sales decreased by $155,659,000 or 49.2% to $160,847,000. The decrease in Royalty Pool sales during the quarter and year-to-date, was directly attributable to the closure of all restaurants included in the Royalty Pool on March 17, 2020 due to the Covid-19 pandemic.
Royalty income decreased by $5,384,000 or 87.7% from $6,136,000 in the three months ended June 30, 2019 to $752,000 in the three months ended June 30, 2020. For the six months ended June 30, 2020 royalty income decreased by $6,364,000 or 49.6% from $12,822,000 to $6,458,000.
Distributable cash available to pay distributions to public unitholders decreased by $2,282,000 from $3,207,000 (28.2 cents/Fund unit) to $925,000 (8.1 cents/Fund unit) for the quarter and by $1,996,000 from $7,074,000 (62.3 cents/Fund unit) to $5,078,000 (44.7 cents/Fund unit) year-to-date. The Fund's payout ratio was 128.9% for the second quarter of 2020 and 86.9% year-to-date.
The Fund remains financially well-positioned with cash on hand of $2,452,000 and a positive working capital balance of $2,559,000 as at June 30, 2020.
"Our results for the quarter are of course unfortunate, but with the COVID-19 pandemic forcing the temporary closure of all Keg restaurants in both Canada and the United States in mid-March, those results are not surprising" said David Aisenstat, The Keg's CEO. "The better news is that The Keg locations have now all reopened as government regulations allowed over the past couple of months on a jurisdiction by jurisdiction basis. Each jurisdiction has mandated thorough rules and regulations for health and safety and all Kegs are very focused on diligently following all of those directions. The Keg has also developed some additional procedures of our own to ensure The Kegs will remain both highly safe and highly enjoyable." Aisenstat continued, "The really great news is that we have been able to welcome back our Keg team of experienced and talented employees, and to welcome back our loyal guests across the country. The happiness and enthusiasm of both our Keggers and our guests is beyond any expectations; we feel that is a significant indication that the road back to the levels of business we have enjoyed for decades is likely to be less difficult than many have predicted."