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Vancouver – May 8, 2023 – The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce its financial results for the three months ended March 31, 2023 (the “quarter”).
• Royalty Pool Sales(1) up 35.4% to $191.9M for the quarter
• KRL Average Sales per Operating Week(1) up 15.3.% to $140,000 per operating week
• Distributable Cash(1) up 53.7% to 34.0 cents/Fund unit for the quarter
Royalty Pool Sales reported by the 107 Keg restaurants in the Royalty Pool were $191,874,000 for the quarter, an increase of $50,169,000 or 35.4% from the comparable quarter of the prior year. The increase in Royalty Pool Sales during the first quarter of 2023 was primarily due to the combination of 197 more Operating Weeks(1) in the first quarter of the current year, and 15.3% growth in average weekly restaurant sales. During the first quarter of the prior year, restaurants were closed for 218 Operating Weeks because of temporary government-mandated restaurant closures related to the Covid-19 pandemic, whereas in the current year there were no such closures.
Royalty income increased by $2,007,000 or 35.4% from $5,668,000 in the three months ended March 31, 2022 to $7,675,000 in the three months ended March 31, 2023.
Distributable Cash available to pay distributions to public unitholders increased by $1,350,000 from $2,515,000 (22.2 cents/Fund unit) to $3,865,000 (34.0 cents/Fund unit) for the quarter. During the first quarter of 2023 and 2022, distributions of $3,222,000 (28.4 cents/Fund unit) were paid to Fund unitholders. The Payout Ratio was 83.4% for the first quarter of 2023.
The Fund remains financially well positioned with cash on hand of $2,241,000 and a positive working capital balance of $3,657,000 as at March 31, 2023.
(1) This is a non-IFRS supplementary financial measure. Please refer to the “non-GAAP and other financial measures disclosure (NI 52-112)” section of this press release. (2) This is a non-IFRS ratio. Please refer to the “non-GAAP and other financial measures disclosure (NI 52-112)” section of this press release.
“We are very pleased with the sales results of KRL thus far in 2023,” said Kip Woodward, Chairman of the Fund. “We are even more pleased that with the growth in royalty income during the current quarter, the payout ratio has returned to more traditional norms.”
“We are pleased with KRL’s financial performance during the first quarter of 2023. Our business continues to show a strong rebound since the pandemic related closures enforced during the same quarter in 2022” said Nick Dean, President of KRL. “Recently, KRL was ranked the number one restaurant company to work for in Canada in the latest edition of Forbes “Canada’s Best Employers” survey, securing third place in the overall ranking across all industries in the country. This award is a testament to our incredible team of Keggers, and we firmly believe a strong culture directly correlates with a heightened guest experience in our restaurants,” he concluded.