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The Keg Royalties revenue Fund announces 2nd Quarter 2021 outcomes

no longer for distribution to U.S. information wire features or dissemination within the U.S.

VANCOUVER, British Columbia, Aug. 09, 2021 (GLOBE NEWSWIRE) -- The Keg Royalties profits Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce its economic consequences for the three months ended June 30, 2021 (the “quarter”) and for the six months ended June 30, 2021 (“YTD”).

HIGHLIGHTS

  • Royalty Pool earnings up 225.9% to $fifty nine.3M for the quarter and down 20.5% to $127.9M YTD

  • KRL gadget revenue up 216.0% to $59.3M for the quarter and down 21.5% to $127.9M YTD

  • Distributable cash up 22.1% to 9.9 cents/Fund unit for the quarter and down fifty eight.7% to 18.5 cents/Fund unit YTD

  • Payout ratio become 105.6% for the quarter and 121.eight% YTD

  • Royalty Pool sales said by way of the 106 Keg restaurants in the Royalty Pool had been $fifty nine,298,000 for the quarter, a rise of $forty one,104,000 or 225.9% from the comparable quarter of the prior year. 12 months-to-date Royalty Pool revenue reduced by way of $32,974,000 or 20.5% to $127,873,000. The raise in Royalty Pool sales right through the second quarter of 2021 become due to significantly greater trading weeks of operation in the second quarter of 2021, as KRL’s restaurants were temporarily closed, by way of government fitness mandates related to the Covid-19 pandemic, for less time in the second quarter of 2021, than within the second quarter of 2020. The reduce in Royalty Pool revenue on a year-to-date groundwork become because of vastly less trading weeks of operation all over the primary six months of 2021, as KRL’s eating places had been quickly closed by way of executive fitness mandates for greater time during the primary half of 2021, than within the first half of 2020.

    Royalty income elevated by means of $1,620,000 or 215.four% from $752,000 in the three months ended June 30, 2020 to $2,372,000 in the three months ended June 30, 2021. For the six months ended June 30, 2021 royalty income reduced through $1,343,000 or 20.8% from $6,458,000 to $5,115,000.

    Distributable cash accessible to pay distributions to public unitholders improved by using $204,000 from $925,000 (8.1 cents/Fund unit) to $1,129,000 (9.9 cents/Fund unit) for the quarter and decreased with the aid of $2,981,000 from $5,078,000 (forty four.7 cents/Fund unit) to $2,097,000 (18.5 cents/Fund unit) 12 months-to-date. The Fund’s payout ratio became 105.6% for the 2d quarter of 2021 and 121.eight% year-to-date.

    Story continues

    The Fund is still financially neatly-placed with money reachable of $2,448,000 and a positive working capital stability of $three,148,000 as at June 30, 2021.

    “we are very glad with the income increases generated with the aid of The Keg during the 2d quarter of 2021. These figures symbolize a strong first step on the highway to our return to pre-COVID sales figures,” observed David Aisenstat, CEO of Keg restaurants Ltd. “all over the 2nd quarter, a lot of our locations remained either closed or beneath mighty capacity limitations with the aid of COVID-related restrictions. That condition has more suitable greatly during the last month and we have enjoyed the sales increases we had been anticipating. As of today, all of our restaurants are open for both indoor and outside eating and area simplest to some distinctly minor capacity limitations in some locations,” delivered Aisenstat.

    monetary HIGHLIGHTS

    ($000’s except per unit amounts)

    Apr. 1to Jun. 30,2021

    Apr. 1to Jun. 30,2020

    Jan. 1to Jun. 30,2021

    Jan. 1to Jun. 30,2020

    eating places in the Royalty Pool

    106

    106

    106

    106

    Royalty Pool sales (1)

    $

    fifty nine,298

    $

    18,194

    $

    127,873

    $

    a hundred and sixty,847

    Royalty salary (2)

    $

    2,372

    $

    752

    $

    5,115

    $

    6,458

    interest income (3)

    1,066

    1,064

    2,a hundred and twenty

    2,134

    total earnings

    $

    three,438

    $

    1,816

    $

    7,235

    $

    8,592

    Administrative fees (four)

    (117

    )

    (102

    )

    (222

    )

    (200

    )

    interest and financing prices (5)

    (99

    )

    (97

    )

    (196

    )

    (238

    )

    operating salary

    $

    three,222

    $

    1,617

    $

    6,817

    $

    8,154

    Distributions to KRL (6)

    (1,731

    )

    (1,241

    )

    (3,575

    )

    (3,916

    )

    earnings earlier than fair price benefit (loss) and revenue taxes

    $

    1,491

    $

    376

    $

    3,242

    $

    4,238

    fair cost benefit (loss) (7)

    (6,619

    )

    (four,524

    )

    (13,670

    )

    28,076

    profits tax recovery (fee) (8)

    (405

    )

    (262

    )

    (878

    )

    (1,one hundred forty five

    )

    earnings (loss) and finished profits (loss)

    $

    (5,533

    )

    $

    (four,410

    )

    $

    (eleven,306

    )

    $

    31,169

    Distributable money before SIFT tax (9)

    $

    1,518

    $

    1,015

    $

    2,943

    $

    6,190

    Distributable money (10)

    $

    1,129

    $

    925

    $

    2,097

    $

    5,078

    Distributions to Fund unitholders (eleven)

    $

    1,192

    $

    1,192

    $

    2,554

    $

    four,414

    Payout ratio (12)

    one zero five.6

    %

    128.9

    %

    121.8

    %

    86.9

    %

    Per Fund unit tips (13)

    earnings before fair value profit (loss) and earnings taxes

    $

    .131

    $

    .033

    $

    .286

    $

    .373

    profit (loss) and finished salary (loss)

    $

    (.487)

    $

    (.388

    )

    $

    (.996

    )

    $

    2.745

    Distributable money before SIFT tax (9)

    $

    .134

    $

    .089

    $

    .259

    $

    .545

    Distributable money (10)

    $

    .099

    $

    .081

    $

    .185

    $

    .447

    Distributions to Fund unitholders (11)

    $

    .a hundred and five

    $

    .one zero five

    $

    .225

    $

    .389

    Notes:

    (1)

    Royalty Pool revenue are the product sales pronounced by Keg restaurants blanketed within the Royalty Pool in any duration. As of June 30, 2021, the Royalty Pool includes 106 Keg eating places, 51 of which can be owned and operated through KRL and its subsidiaries, (forty one in Canada and 10 in the United Sates), and 55 Keg eating places which can be owned and operated by Keg franchisees (all of which are in Canada).

    (2)

    The Fund, in some way in the course of the Keg Rights constrained Partnership (the “Partnership”), earns royalty earnings equal to 4% of gross sales of Keg eating places in the Royalty Pool.

    (three)

    The Fund at once earns hobby revenue on the $fifty seven.0 million Keg mortgage, with activity revenue accruing at 7.5% once a year, payable monthly.

    (4)

    The Fund, not directly during the Partnership, incurs administrative charges and hobby on the working line of credit, to the extent utilized.

    (5)

    The Fund, in a roundabout way through the Keg Holdings believe (the “trust”), incurs interest rate on the $14.0 million term personal loan and amortization of deferred financing prices.

    (6)

    Represents the distributions of the Partnership attributable to KRL all the way through the respective intervals on the class A, entitled class B, and class D Partnership contraptions (“Exchangeable units”) and class C Partnership units held by KRL. The Exchangeable units are exchangeable into Fund instruments on a one-for-one basis. These distributions are presented as activity rate in the fiscal statements.

    (7)

    fair value gain (loss) is the non-cash reduce or boost available in the market value of the Exchangeable contraptions held through KRL all over the respective length. Exchangeable instruments are categorized as a monetary liability under IFRS. The Fund is required to check the fair value of that legal responsibility at the end of every reporting length and modify for any raise or decrease, bearing in mind the sale of any Exchangeable gadgets and extra Entitlements during the equal length.

    (8)

    revenue taxes include the unique funding flow-through have confidence tax (“SIFT tax”) expense, and both a non-money deferred tax price or deferred tax recovery. The deferred tax rate or healing essentially results from alterations in revenue attention between the Fund’s accounting methods and enacted tax laws. it is also in part as a result of transient differences between accounting and tax bases of the Keg Rights owned through the Partnership.

    (9)

    Distributable money earlier than SIFT tax is described as the periodic money flows from operating activities as pronounced within the IFRS condensed consolidated financial statements, including the effects of adjustments in non-money working capital, plus SIFT tax paid (including current year instalments), less pastime and financing fees paid on the time period mortgage, much less the Partnership distributions brought on by KRL via its possession of Exchangeable contraptions. Distributable money earlier than SIFT tax is a non-IFRS monetary measure that does not have a standardized meaning prescribed through IFRS, and for this reason can also not be corresponding to identical measures presented by way of other issuers.

    (10)

    Distributable cash is the amount of cash obtainable for distribution to the Fund’s public unitholders and is calculated as distributable money before SIFT tax, less existing 12 months SIFT tax expense. Distributable money is a non-IFRS fiscal measure that does not have a standardized which means prescribed with the aid of IFRS, and for this reason may additionally no longer be comparable to identical measures introduced by different issuers. youngsters, the Fund believes that distributable cash, both before and after SIFT tax, gives advantageous assistance concerning the amount of money purchasable for distribution to the Fund’s public unitholders.

    (11)

    Distributions to Fund unitholders encompass all common month-to-month money distributions paid to Fund unitholders right through a period and any special distributions, both declared or paid, to Fund unitholders in the same duration.

    (12)

    Payout ratio is computed as the ratio of aggregate cash distributions paid during the period plus any particular distributions declared or paid right through the equal length (numerator) to the mixture distributable money of the duration (denominator).

    (13)

    All per unit amounts are calculated in keeping with the weighted common number of Fund devices astounding, which are these gadgets held by public unitholders all through the respective period. The weighted general variety of Fund instruments mind-blowing for the three months ended June 30, 2021 had been 11,353,500 (three months ended June 30, 2020 – eleven,353,500), and for six months ended June 30, 2021 have been eleven,353,000 (six months ended June 30, 2020 – eleven,353,000).

    The Fund (TSX: KEG.UN) is a constrained intention, open-ended have confidence based below the legal guidelines of the Province of Ontario that, throughout the Keg Rights restricted Partnership, owns certain emblems and other related intellectual property used with the aid of Keg eating places Ltd. (“KRL”). In exchange to be used of those emblems, KRL will pay the Fund a royalty of 4% of product sales of Keg eating places covered within the royalty pool.

    Vancouver-based KRL is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in choose regional markets within the u.s.. KRL continues to operate The Keg restaurant equipment and extend that system in the course of the addition of both corporate and franchised Keg steakhouses. KRL has been named one of the most “50 premiere Employers in Canada” for the past seventeen years by using Aon Hewitt. For greater information on our brand, visit www.kegsteakhouse.com.

    This press free up may additionally include certain "forward searching" statements reflecting The Keg Royalties income Fund's latest expectations within the informal dining segment of the restaurant meals industry. buyers are counseled that each one ahead searching statements involve hazards and uncertainties, together with these regarding the Keg’s ability to proceed to understand ancient identical save sales growth, changes in market and latest competition, new competitive traits, and knowledge downturns in economic circumstances commonly. additional information on these and other advantage elements that might affect the Fund's monetary outcomes are targeted in documents filed sometimes with the provincial securities commissions in Canada.

    This press release shall no longer represent a proposal to promote or the solicitation of a suggestion to purchase, which could be made only with the aid of potential of the prospectus, nor shall there be any sale of the Fund devices in any state, province or other jurisdiction during which such present, solicitation or sale can be unlawful earlier than registration or qualification under the securities legal guidelines of any state, province or jurisdiction. The Keg Royalties profits Fund contraptions have not been, and may no longer be registered beneath the U.S. Securities Act of 1933, as amended and may now not be provided or sold within the united states absent registration or an utility for exemption from the registration requirement below U.S. securities legal guidelines.

    The Trustees of the Fund have permitted the contents of this press release.

    CONTACT: For extra assistance: Neil Maclean, Chief fiscal Officer Tel: (604) 821-6416 neilm@kegrestaurants.com www.kegincomefund.com

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