Third Quarter 2021 Results Not for distribution to U.S. News wire services or dissemination in the U.S.
VANCOUVER, B.C., Nov. 09, 2021 (GLOBE NEWSWIRE) -- The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce its financial results for the three months ended September 30, 2021 (the “quarter”) and for the nine months ended September 30, 2021 (“YTD”).
HIGHLIGHTS
- Royalty Pool sales up 43.4% to $152.3M for the quarter and up 4.9% to $280.1M YTD
- KRL system sales up 42.0% to $153.5M for the quarter and up 3.9% to $281.4M YTD
- Distributable cash up 82.9% to 15.7 cents/Fund unit government mandated for the quarter and down 35.9% to 34.2 cents/Fund unit YTD
- Payout ratio was 133.7% for the quarter and 127.3% YTD
Royalty Pool sales reported by the 106 Keg restaurants in the Royalty Pool were $152,274,000 for the quarter, an increase of $46,108,000 or 43.4% from the comparable quarter of the prior year. Year-to-date, Royalty Pool sales were $280,147,000, an increase of $13,135,000 or 4.9%. The increase in Royalty Pool sales during the third quarter of 2021 was primarily due to less onerous government mandated restrictions on restaurant operations while open in the third quarter of 2021, as compared with the third quarter of 2020.
Royalty income increased by $1,795,000 or 41.8% from $4,296,000 in the three months ended September 30, 2020 to $6,091,000 in the three months ended September 30, 2021. Year-to-date, royalty income increased by $452,000 or 4.2% from $10,754,000 for the nine months ended September 30, 2020 to $11,206,000 for the nine months ended September 30, 2021.
Distributable cash available to pay distributions to public unitholders increased by $808,000 from $975,000 (8.6 cents/Fund unit) to $1,783,000 (15.7 cents/Fund unit) for the quarter, and decreased by $2,173,000 from $6,053,000 (53.3 cents/Fund unit) to $3,880,000 (34.2 cents/Fund unit) year-to-date. The Fund’s payout ratio was 133.7% for the third quarter of 2021 and 127.3% year-to-date.
The Fund remains financially well-positioned with cash on hand of $2,622,000 and a positive working capital balance of $3,794,000 as at September 30, 2021.
“We believe the third quarter represents a very strong indication that The Keg can expect our sales levels to return to pre-COVID levels and beyond.” said David Aisenstat, CEO of The Keg. “As the last of the restaurant capacity restrictions are eliminated, and labour shortages ease, we remain confident that future sales will continue to improve. We thank our amazing Keggers for their enthusiasm as they welcome our equally enthusiastic guests back to enjoy the legendary Keg hospitality.” added Aisenstat.
https://www.globenewswire.com/news-release/2021/11/10/2331050/0/en/The-Keg-Royalties-Income-Fund-Announces-Third-Quarter-2021-Results.html