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Imvescor Restaurant Group Inc. (IRG)
Exchange: Toronto Stock Exchange
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Apr 23, 2014, 9:48 PM EDT
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PDM Royalties Income Fund announces 2007 Results

MONCTON, NB, March 28 /CNW/ - PDM ROYALTIES INCOME FUND (TSX: PDM.UN, PDM.DB) (the "Fund") reported today its financial results for the fourth quarter, 2007 and the year ended December 31, 2007.

2007 was a significant year for the Fund in terms of growth with total revenues during the year increasing by 33% to $14.1 million compared to $10.6 million for 2006. The Fund declared distributions of $1.44 per unit (2006 (equal sign) $1.44 per unit). The revenue increase was generated by a full year of royalty revenue from the Baton Rouge restaurants combined with the new restaurants added to the royalty pool on January 1, 2007.

The Royalty pool sales also enjoyed a large increase, growing by 29% to $368.3 million compared to $284.5 million for 2006 based on the 261 restaurants (2006 - 251) included in the royalty pool in 2007. The growth reflects a full year of operations for Baton Rouge restaurants combined with the new restaurants added to the royalty pool on January 1, 2007.

On a full-year basis, SSSG was 1.4% (2006 (equal sign) 1.5%). The Scores brand performed very well with same store sales increase of 6.3% (2006 (equal sign) 7.4%); Pizza Delight was 3.6% (2006 (equal sign) 4.2%); Mikes was -2.1% (2006 (equal sign) -3.0%); and Baton Rouge was 0.7%.

During the fourth quarter the weather was unusually poor in most markets in which Imvescor operates. The impact of having to close for part or all of a Friday or the weekend due to the weather can more than offset the positive momentum that in many cases was being enjoyed during the first part of the week. Imvescor Inc. ("Imvescor") incurred a same store sales decrease of -0.5% for the fourth quarter of 2007 (2006 (equal sign) 2.8%). For the quarter Pizza Delight had SSSG of 1.7% (2006 (equal sign) 6.8%); Scores was -1.1% (2006 (equal sign) 15.7%); Mikes -1.7% (2006 (equal sign) -6.0%); and Baton Rouge was -0.1%.

On January 1, 2008, the Fund acquired an additional 17 restaurants with sales estimated at $48.7 million annually, less the closure of 19 underperforming locations with annual sales of $12.4 million which were removed from the Royalty Pool, resulting in an estimated net increase in Royalty Pool Sales of $36.3 million annually. As a result of the contribution of the additional sales to the Royalty Pool, Imvescor's additional entitlement is equivalent to 1,514,862 Fund units, subject to final adjustment when actual sales for the new restaurants are confirmed. These net new restaurants are expected to generate an additional $2.4 million in royalties. Imvescor now holds a 31.2% interest in the Fund (25.4% on a fully diluted basis).

The new Oven Fresh Kitchen concept for Pizza Delight and the Trattoria Mikes concept have started to roll-out across the systems with very positive franchisee support suggesting the target of 8 to 10 renovations for each in 2008 should be achieved. Baton Rouge is starting to accelerate in new restaurant development and together with the momentum enjoyed by Scores should open 15 new locations in 2008.

Complete financial statements are available at www.sedar.com

About the Fund

The Fund is a limited purpose open-ended trust established under the laws of Ontario. The Fund will make monthly distributions of its available cash to holders of units. The Fund indirectly owns the trade marks and intellectual property for the Pizza Delight, Mikes, Scores, and Baton Rouge brands and has licensed them to Imvescor in consideration for a royalty equal to 4% of system sales for Pizza Delight and Mikes restaurants, and a royalty rate of 6% for Scores and Baton Rouge restaurants.

Imvescor is a privately owned corporation, headquartered in Moncton, New Brunswick. It operates franchised and corporate restaurants under the brand names Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) restaurants. Pizza Delight(R) operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Baton Rouge(R) operates in the Province of Quebec and Ontario in the casual dining segment.

Forward-Looking Statements

Certain information regarding the Fund contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Fund cautions that actual performance will be affected by a number of factors, many of which are beyond the Fund's control, and that future events and results may vary substantially from what the Fund currently foresees. Discussion of the various factors that may affect future results is contained in the annual information form of the Fund dated March 28, 2008 which is available at www.sedar.com. The Fund's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

%SEDAR: 00018600E

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