VANCOUVER – A&W Revenue Royalties Income Fund (TSX:AW.UN) credits an increase in same-store sales among reasons for a $194,000 or 3.4 per cent increase in third-quarter revenue.
The Vancouver-based fund, which is paying corporate taxes for the first time this year as a result of changes affecting income trusts introduced by Ottawa, said revenue was $5.8 million in the 12-week period ended Sept. 11.
Besides a 0.7 per cent increase in same-store sales, the fund also benefited from an increase in the number of restaurants in the royalty pool to 715 from 700 in 2010.
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Distributable cash generated to pay distributions to unitholders and dividends to A&W Food Services decreased to $4.5 million from $5.5 million due to the higher interest and tax expenses, it said.
Meanwhile, the number of equivalent units also decreased, from 14.7 million in 2010 to 12.6 million in 2011 due to a unit buyback in December 2010 which resulted in the fund purchasing for cancellation 2.5 million units.
As a result, distributable cash per equivalent unit decreased by only 1.5 cents to 35.7 cents per unit for the quarter.
“Despite the burden of 12.9 cents per unit income tax expense, year-to-date distributions in 2011 have been maintained at 98.7 per cent of 2010 levels,” the company said in a release.
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