Payout ratio was 100.5% for the quarter and 91.1% YTD
The gross sales reported by the 105 Keg restaurants in the Royalty Pool were $150,731,000 for the quarter, a decrease of $243,000 or 0.2% from the comparable quarter of the prior year. Year-to-date gross sales increased by $3,569,000 or 1.1% to $316,506,000. The increase in Royalty Pool sales during the quarter and year-to-date, reflect the sales of the new Keg restaurants added to the Royalty Pool on January 1, 2019, and a same store sales decrease of 1.2% for the quarter and an increase of 0.4% year-to-date.
The Keg’s same store sales (sales of restaurants that operated during the entire period of both the current and prior years) decreased by 1.8% in Canada and increased by 1.2% in the United States (“U.S.”) for the 13-week period ended June 30, 2019. For the 26-week period ended June 30, 2019, same store sales decreased by 0.3% in Canada and increased by 2.6% in the U.S. After translating the sales of the U.S. restaurants into their Canadian dollar equivalent, consolidated same store sales decreased by 1.2% for the 13-week period and increased by 0.4% for the 26-week period. The average exchange rate moved from 1.2923 to 1.3383 in the comparable 13- week period, and from 1.2779 to 1.3339 in the comparable 26-week period, significantly increasing the Canadian dollar equivalent of the U.S. restaurant sales in the comparable periods.
Royalty income increased by $92,000 or 1.5% from $6,044,000 in the three months ended June 30, 2018 to $6,136,000 in the three months ended June 30, 2019. For the six months ended June 30, 2019 royalty income increased by $299,000 or 2.4% from $12,523,000 to $12,822,000.
Distributable cash before SIFT tax decreased by $21,000 from $4,332,000 (38.2 cents/Fund unit) to $4,311,000 (38.0 cents/Fund unit) for the quarter and increased by $126,000 from $9,305,000 (82.0 cents/Fund unit) to $9,431,000 (83.1 cents/Fund unit) for the six-month period. Distributable cash available to pay distributions to public unitholders increased by $18,000 from $3,189,000 (28.1 cents/Fund unit) to $3,207,000 (28.2 cents/Fund unit) for the quarter and $132,000 from $6,942,000 (61.1 cents/Fund unit) to $7,074,000 (62.3 cents/Fund unit) year-to-date. The Fund’s payout ratio was 100.5% for the second quarter of 2019 and 91.1% year-to-date.