Not for distribution to U.S. Information wire companies or dissemination within the U.S.
VANCOUVER, British Columbia, March 06, 2025 (GLOBE NEWSWIRE) — The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is happy to announce its monetary outcomes for the three months ended December 31, 2024 (the “quarter”) and the twelve months ended December 31, 2024 (“YTD”).
HIGHLIGHTS
- Royalty Pool Gross sales(1) down 7.1% to $188.2M for the quarter and down 3.0% to $719.5M YTD
- Keg Eating places Ltd. (“KRL”) Common Gross sales per Working Week(1) up 0.4% to $140,000 for the quarter and down 0.8% to $132,000 YTD
- KRL Similar Retailer Gross sales(1) up 2.6% for the quarter and down 0.7% YTD
- Distributable Money(1) up 9.9% to $0.262/Fund unit for the quarter and up 7.7% to $1.248/Fund unit YTD
- Particular money distribution of $0.04/Fund unit declared on December 23, 2024, and was and paid on January 31, 2025
- Payout Ratio(2) was 123.8% for the quarter and 94.2% YTD
Royalty Pool Gross sales reported by the 105 Keg eating places within the Royalty Pool had been $188,167,000 for the fourth quarter of 2024, a lower of $14,350,000 or 7.1% from the comparable quarter of the prior 12 months. The lower in Royalty Pool Gross sales in the course of the fourth quarter of 2024 was primarily because of the further week of gross sales reported by KRL within the fourth quarter of 2023. Year-to-date, Royalty Pool Gross sales decreased by $22,157,000, or 3.0% to $719,541,000 because of the mixture of the additional week of gross sales reported by KRL within the 12 months ended December 31, 2023, and the slight lower in Similar Retailer Gross sales of 0.7% for the comparable 52-week durations.
Royalty revenue decreased by $574,000 or 7.1% from $8,101,000 within the three months ended December 31, 2023 to $7,527,000 within the three months ended December 31, 2024. For the twelve months of 2024, royalty revenue decreased by $886,000 or 3.0% from $29,668,000 for the twelve months ended December 31, 2023 to $28,782,000 for the twelve months ended December 31, 2024.
Distributable Money out there to pay distributions to public unitholders elevated by $268,000 from $2,703,000 ($0.238/Fund unit) to $2,971,000 ($0.262/Fund unit) for the quarter, and elevated by $1,016,000 from $13,154,000 ($1.159/Fund unit) to $14,170,000 ($1.248/Fund unit) year-to-date. Throughout the fourth quarter of 2024, distributions of $3,677,000 ($0.324/Fund unit) had been declared to Fund unitholders, in comparison with $4,130,000 ($0.364/Fund unit) within the fourth quarter of 2023. Throughout 2024, distributions of $13,343,000 ($1.175/Fund unit) had been declared to Fund unitholders, in comparison with $13,797,000 ($1.215/Fund unit) in the course of the 2023 fiscal 12 months. The lower of $0.04/Fund unit in distributions declared to Fund unitholders for each the three and twelve month comparable durations, is completely because of the distinction between the $0.08/Fund unit particular distribution declared in December of 2023, in comparison with the $0.04/Fund unit particular distribution declared in December of 2024, because of KRL’s 53rd week of operation in 2023.
In any reporting interval, the Fund’s Distributable Money is affected, each positively and negatively, by any modifications in non-cash Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities balances acknowledged in that reporting interval. The improve within the Fund’s Distributable Money within the fourth quarter of 2024, was primarily attributable to the optimistic results of modifications in non-cash working Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities balances in the course of the fourth quarter of 2024. The improve within the Fund’s Distributable Money within the twelve months of 2024, was primarily attributable to the optimistic results of modifications in non-cash working Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities balances in the course of the twelve months of 2024, because the incremental working money stream related to KRL’s 53rd week of operation within the 2023 fiscal 12 months was not acquired by the Fund till January 2024. The Fund’s 12 months ended December 31, 2024 included this further week of working money stream, thereby rising Distributable Money and lowering the year-to-date Payout Ratio.
The Payout Ratio was 123.8% for the fourth quarter of 2024 and 94.2% for the 12 months.
The Fund stays financially effectively positioned with money readily available of $2,065,000 and a optimistic Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities stability of $2,627,000 as at December 31, 2024.
(1) This can be a non-IFRS supplementary monetary measure. Please confer with the “Non-GAAP and different monetary measures disclosure (NI 52-112)” part of this press launch.
(2) This can be a non-IFRS ratio. Please confer with the “Non-GAAP and different monetary measures disclosure (NI 52-112)” part of this press launch.
“We’re more than happy with the monetary outcomes of the Fund within the fourth quarter of 2024, regardless of the continued challenges dealing with the full-service restaurant class” stated Kip Woodward, Chairman of the Fund. “Administration continues their strong deal with working efficiencies and delivering one of the best visitor eating expertise throughout these instances of softening financial circumstances. We’re heartened by our long-term visitor loyalty which we at all times endeavor to earn.”
“We’re happy with KRL’s gross sales efficiency in the course of the fourth quarter of 2024. Similar retailer gross sales elevated 2.6% versus the comparable quarter of 2023. Our company proceed to belief that they’ll obtain an amazing expertise every time they go to one among our areas” stated Nick Dean, President of KRL. “All through 2024, administration centered on empowering our exceptionally proficient staff of Keggers to ship our promise of superior hospitality and product high quality for our company. With this technique firmly in place, we anticipate visitor demand for The Keg will proceed to enhance effectively into 2025”, he concluded.
NON-GAAP AND OTHER FINANCIAL MEASURES DISCLOSURE (“NI 52-112”)
NI 52-112 prescribes disclosure necessities that apply to sure Non-IFRS measures referred to as “specified monetary measures”. This press launch makes reference to sure non-IFRS measures which offers essential data concerning the Fund’s monetary efficiency and potential to pay distributions to unitholders. By contemplating these non-IFRS measures together with IFRS measures, the Fund believes that readers are supplied with extra and extra helpful details about the Fund’s monetary efficiency versus contemplating IFRS measures alone. The phrases “System Gross sales”, “Royalty Pool”, “Royalty Pool Gross sales”, “Similar Retailer Gross sales”, “Distributable Money Earlier than SIFT Tax”, “Distributable Money”, “Payout Ratio”, “Working Weeks”, “Common Gross sales per Working Week” and “Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities” are non-IFRS measures and non-IFRS ratios. These non-IFRS measures reported by the Fund would not have standardized meanings as prescribed by IFRS, and the Fund’s methodology of calculating these measures could differ and might not be corresponding to comparable measures reported by different issuers.
“System Gross sales” is a non-IFRS supplementary monetary measure representing the product sales of all company eating places owned by KRL, and the product sales reported to KRL by franchise eating places with out impartial audit, in any interval. The whole System Gross sales of KRL are of curiosity to readers because it finest displays KRL’s general gross sales efficiency.
“Royalty Pool” is a non-IFRS supplementary monetary measure representing a selected pool of Keg eating places for which System Gross sales is calculated, obligating KRL to make month-to-month royalty funds to the Partnership equal to 4% of those product sales.
“Royalty Pool Gross sales” is a non-IFRS supplementary monetary measure representing the whole product sales reported by Keg eating places included in a specified Royalty Pool, for which the Fund receives a royalty of 4% on these reported product sales in any interval.
“Similar Retailer Gross sales” is a non-IFRS supplementary monetary measure representing the general improve or lower in product sales from a bunch of Keg eating places (these eating places that operated throughout the complete interval of each the present and prior years), in comparison with product sales for a similar group of eating places for a similar interval of the prior 12 months.
“Distributable Money Earlier than SIFT Tax” is a non-IFRS supplementary monetary measure and is outlined because the periodic money flows from working actions as reported within the IFRS consolidated monetary statements, together with the results of modifications in non-cash Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities, plus the Specified Funding Stream-through Belief tax (“SIFT” tax) paid (together with present 12 months instalments), much less curiosity and financing charges paid on the time period mortgage, much less the Partnership distributions attributable to KRL by way of its possession of Exchangeable models.
“Distributable Money” is a non-IFRS supplementary monetary measure and is outlined as the amount of money out there for distribution to the Fund’s public unitholders and is calculated as Distributable Money Earlier than SIFT Tax, much less present 12 months SIFT tax expense. Distributable money is a non-IFRS monetary measure that doesn’t have a standardized which means prescribed by IFRS, and due to this fact might not be corresponding to comparable measures offered by different issuers. Nevertheless, the Fund believes that Distributable Money, each earlier than and after SIFT tax, offers helpful data concerning the amount of money out there for distribution to the Fund’s public unitholders.
“Payout Ratio” is a non-IFRS ratio and is computed because the ratio of mixture money distributions paid in the course of the interval plus any particular distributions declared or paid throughout the identical interval (numerator) to the mixture Distributable Money of the interval (denominator).
“Working Weeks” is a non-IFRS supplementary monetary measure representing the variety of weeks a restaurant is open for in-store eating, with out important capability restrictions, throughout a respective interval.
“Common Gross sales per Working Week” is a non-IFRS supplementary monetary measure and is outlined because the gross sales generated by a median restaurant throughout these working weeks when eating places had been absolutely open for in-store eating, throughout a respective interval. This metric is calculated by dividing whole System Gross sales for any monetary interval by the whole Working Weeks open throughout the identical monetary interval.
“Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities” is a non-IFRS supplementary monetary measure and is outlined because the Fund’s present belongings much less present liabilities earlier than Class C and Exchangeable Partnership models. The Fund believes this metric offers helpful data to readers as Working Capital Earlier than Classification of Class C and Exchangeable Partnership Models as Present Liabilities represents the Fund’s present working capital quantities anticipated to be settled for money inside the subsequent twelve months.
FINANCIAL HIGHLIGHTS
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| ($000’s anticipate per unit quantities) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Eating places within the Royalty Pool | 105 | 107 | 105 | 107 | ||||||||||||
| Royalty Pool Gross sales | $ | 188,167 | $ | 202,517 | $ | 719,541 | $ | 741,698 | ||||||||
| Royalty revenue (1) | $ | 7,527 | $ | 8,101 | $ | 28,782 | $ | 29,668 | ||||||||
| Curiosity revenue (2) | 1,091 | 1,106 | 4,361 | 4,383 | ||||||||||||
| Complete revenue | $ | 8,618 | $ | 9,207 | $ | 33,143 | $ | 34,051 | ||||||||
| Administrative bills (3) | (122 | ) | (106 | ) | (468 | ) | (480 | ) | ||||||||
| Curiosity and financing bills (4) | (224 | ) | (268 | ) | (1,002 | ) | (1,028 | ) | ||||||||
| Working revenue | $ | 8,272 | $ | 8,833 | $ | 31,673 | $ | 32,543 | ||||||||
| Distributions to KRL (5) | (3,398 | ) | (3,572 | ) | (13,134 | ) | (13,414 | ) | ||||||||
| Revenue earlier than truthful worth acquire (loss) and revenue taxes | $ | 4,874 | $ | 5,261 | $ | 18,539 | $ | 19,129 | ||||||||
| Honest worth acquire (loss) (6) | 1,526 | (2,616 | ) | (5,123 | ) | 11,119 | ||||||||||
| Income tax restoration (expense) (7) | (1,337 | ) | (1,439 | ) | (4,992 | ) | (5,091 | ) | ||||||||
| Revenue (loss) and complete revenue (loss) | $ | 5,063 | $ | 1,206 | $ | 8,424 | $ | 25,157 | ||||||||
| Distributable Money Earlier than SIFT Tax | $ | 4,287 | $ | 4,107 | $ | 19,137 | $ | 18,260 | ||||||||
| Distributable Money | $ | 2,971 | $ | 2,703 | $ | 14,170 | $ | 13,154 | ||||||||
| Distributions to Fund unitholders (8) | $ | 3,677 | $ | 4,130 | $ | 13,343 | $ | 13,797 | ||||||||
| Payout Ratio | 123.8 | % | 152.8 | % | 94.2 | % | 104.9 | % | ||||||||
| Per Fund unit data (9) | ||||||||||||||||
| Revenue earlier than truthful worth acquire (loss) and revenue taxes | $ | 0.429 | $ | 0.463 | $ | 1.633 | $ | 1.685 | ||||||||
| Revenue (loss) and complete revenue (loss) | $ | 0.446 | $ | 0.106 | $ | 0.742 | $ | 2.216 | ||||||||
| Distributable Money Earlier than SIFT Tax | $ | 0.378 | $ | 0.362 | $ | 1.686 | $ | 1.608 | ||||||||
| Distributable Money | $ | 0.262 | $ | 0.238 | $ | 1.248 | $ | 1.159 | ||||||||
| Distributions to Fund unitholders (8) | $ | 0.324 | $ | 0.364 | $ | 1.175 | $ | 1.215 | ||||||||
| Notes: | ||
| (1) | The Fund, not directly by way of The Keg Rights Restricted Partnership (the “Partnership”), earns royalty revenue equal to 4% of product sales of Keg eating places within the Royalty Pool. | |
| (2) | The Fund straight earns curiosity revenue on the $57.0 million mortgage to KRL (the “Keg Mortgage”), with curiosity revenue accruing at 7.5% each year, payable month-to-month. | |
| (3) | The Fund, not directly by way of the Partnership, incurs administrative bills and curiosity on the working line of credit score, to the extent utilized. | |
| (4) | The Fund, not directly by way of The Keg Holdings Belief (“KHT”), incurs curiosity expense on the $14.0 million time period mortgage and amortization of deferred financing expenses. | |
| (5) | Represents the distributions of the Partnership attributable to KRL in the course of the respective durations on the Class A, entitled Class B, and Class D Partnership models (“Exchangeable models”) and Class C Partnership models held by KRL. The Exchangeable models are exchangeable into Fund models on a one-for-one foundation. These distributions are offered as curiosity expense within the monetary statements. | |
| (6) | Honest worth acquire (loss) is the non-cash lower or improve available in the market worth of the Exchangeable models held by KRL in the course of the respective interval. Exchangeable models are categorised as a monetary legal responsibility beneath IFRS. The Fund is required to find out the truthful worth of that legal responsibility on the finish of every reporting interval and regulate for any improve or lower, taking into account the sale of any Exchangeable models and Extra Entitlements throughout the identical interval. | |
| (7) | Income taxes embody the SIFT tax expense, and both a non-cash deferred tax expense or deferred tax restoration. The deferred tax expense or restoration primarily outcomes from variations in revenue recognition between the Fund’s accounting strategies and enacted tax legal guidelines. It is usually partially as a result of non permanent variations between accounting and tax bases of the Keg Rights owned by the Partnership. | |
| (8) | Distributions to Fund unitholders embody all common month-to-month money distributions paid to Fund unitholders throughout a interval and any particular distributions, both declared or paid, to Fund unitholders in the identical interval. | |
| (9) | All per unit quantities are calculated primarily based on the weighted common variety of Fund models excellent, that are these models held by public unitholders in the course of the respective interval. The weighted common variety of Fund models excellent for the three and twelve months ended December 31, 2024 had been 11,353,500 (three and twelve months ended December 31, 2023 – 11,353,500). | |
The Fund (TSX: KEG.UN) is a restricted goal, open-ended belief established beneath the legal guidelines of the Province of Ontario that, by way of The Keg Rights Restricted Partnership, owns sure emblems and different associated mental property utilized by Keg Eating places Ltd. (“KRL”). In trade to be used of these emblems, KRL pays the Fund a royalty of 4% of product sales of Keg eating places included within the Royalty Pool.
With roughly 10,000 staff, over 100 eating places and annual System Gross sales exceeding $700 million, Vancouver-based KRL is the main operator and franchisor of steakhouse eating places in Canada and has a considerable presence in choose regional markets in the US. KRL continues to function The Keg restaurant system and increase that system by way of the addition of each company and franchised Keg steakhouses. KRL has been named the primary restaurant firm to work for in Canada within the newest version of Forbes “Canada’s Finest Employers 2025” survey.
This press launch could comprise sure “ahead trying” statements reflecting The Keg Royalties Income Fund’s present expectations within the informal eating phase of the restaurant meals business. Traders are cautioned that each one ahead trying statements contain dangers and uncertainties, together with these referring to the Keg’s potential to proceed to comprehend historic similar retailer gross sales development, modifications in market and current competitors, new aggressive developments, and potential downturns in financial circumstances typically. Extra data on these and different potential elements that might have an effect on the Fund’s monetary outcomes are detailed in paperwork filed every now and then with the provincial securities commissions in Canada.
This press launch shall not represent a proposal to promote or the solicitation of a proposal to purchase, which can be made solely by the use of the prospectus, nor shall there be any sale of the Fund models in any state, province or different jurisdiction during which such supply, solicitation or sale can be illegal previous to registration or qualification beneath the securities legal guidelines of any state, province or jurisdiction. The Keg Royalties Income Fund models haven’t been, and won’t be registered beneath the U.S. Securities Act of 1933, as amended and might not be provided or bought in the US absent registration or an utility for exemption from the registration requirement beneath U.S. securities legal guidelines.
The Trustees of the Fund have authorised the contents of this press launch.
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