BP Canada

Calgary, Canada

BP Canada

Calgary, Canada

Time filter

Source Type

SSSG of 0.0% for the Period despite continued weak general economic conditions in oil and gas regions and the impact of 2016 being a leap year Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) and Boston Pizza International Inc. ("BPI") reported financial results today for the first quarter period from January 1, 2017 to March 31, 2017 (the "Period"). A copy of this press release, the condensed consolidated interim financial statements and related Management's Discussion and Analysis ("MD&A") of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The Fund will host a conference call to discuss the results on May 11, 2017 at 8:30 am Pacific Time (11:30 am Eastern Time). The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay will be available until June 11, 2017 by dialling 1-855-669-9658 or 604-674-8052 and entering the access code: 1389 followed by the # sign. Same store sales growth ("SSSG"), a key driver of distribution growth for unitholders of the Fund, was 0.0% for the Period compared to 0.6% reported in the first quarter of 2016. Franchise Sales, the basis upon which Royalty5 and Distribution Income5 are paid to the Fund, exclude revenue from the sale of liquor, beer, wine and approved national promotions and discounts. On a Franchise Sales basis, SSSG was negative 0.3% for the Period compared to positive 0.5% for the first quarter of 2016. The SSSG for the Period was principally due to menu re-pricing and higher sales as a result of Boston Pizza's nachos promotion offset by the negative impacts of continued weak general economic conditions in regions directly connected to the Canadian oil and gas industry and one less day during the Period compared to the same period one year ago due to 2016 being a leap year. Franchise Sales of restaurants in the Fund's royalty pool were $202.4 million for the Period compared to $198.0 million for the first quarter of 2016. The increase in Franchise Sales for the Period is primarily due to the additional Franchise Sales from 11 net new restaurants added to the royalty pool on January 1, 2017. "We continue to see positive SSSG in all regions that are not directly connected to the Canadian oil and gas industry," said Mark Pacinda, President and CEO of BPI. "We are satisfied with our sales results for the Period given the negative impacts of continued weak general economic conditions in regions directly connected to the Canadian oil and gas industry and one less day during the Period compared to the same period one year ago due to 2016 being a leap year. After a significant renovation to our corporately owned Boston Pizza restaurant on Front and John Street in downtown Toronto during the Period, we were excited to re-open this location on April 4th to showcase our new urban prototype." The Fund's net and comprehensive income was $6.6 million for the Period compared to $8.5 million for first quarter of 2016. The $1.9 million decrease in the Fund's net and comprehensive income for Period compared to the first quarter of 2016 was primarily due to a net $2.0 million change in fair value adjustments. For a detailed discussion on the Fund's net and comprehensive income, please see the "Operating Results - Net and Comprehensive Income / Basic and Diluted Earnings" section in the Fund's MD&A for the Period. The Fund's net income under International Financial Reporting Standards ("IFRS") contains non-cash items, such as the fair value adjustments on financial instruments and deferred income taxes, that do not affect the Fund's business operations or its ability to pay distributions to unitholders. In the Fund's view, net income is not the only or most meaningful measurement of the Fund's ability to pay distributions. Consequently, the Fund reports the non-IFRS metrics of Distributable Cash and Payout Ratio to provide investors with more meaningful information regarding the amount of cash that the Fund has generated to pay distributions and the extent to which the Fund has distributed that cash. Readers are cautioned that Distributable Cash and Payout Ratio are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. For a reconciliation between cash flow from operating activities (the most directly comparable IFRS measure) and Distributable Cash see the "Financial Summary" section of this press release. For a detailed discussion on the Fund's Distributable Cash and Payout Ratio, please see the "Operating Results - Distributable Cash / Payout Ratio" section in the Fund's MD&A for the Period. The Fund generated Distributable Cash of $6.3 million for the Period compared to $6.5 million for the first quarter of 2016. The decrease in Distributable Cash of $0.2 million, or 2.8% was primarily due to higher interest expense on the Class B Units of Boston Pizza Royalties Limited Partnership and one less day during the Period compared to the same period one year ago due to 2016 being a leap year. The Fund's Distributable Cash per unit of the Fund ("Unit") was $0.312 for the Period compared to $0.320 per Unit for the first quarter of 2016. The decrease in Distributable Cash per Unit of $0.008, or 2.5% was primarily attributable to the decrease in Distributable Cash noted above. The Fund's Payout Ratio for the Period was 110.6% compared to 105.7% in the same period in 2016. The increase in the Fund's Payout Ratio was due to the combined effects of Distributable Cash for the Period decreasing by $0.2 million, or 2.8% and distributions paid during the Period increasing by $0.1 million, or 1.7%. The increase in distributions paid during the Period compared to the same period one year ago was due to the Fund increasing the monthly distribution from 10.83 cents per Unit to 11.50 cents per Unit beginning with the January 2016 distribution, which was paid on February 29, 2016. The Fund strives to provide unitholders with consistent monthly distributions, and as a result, the Fund will generally experience seasonal fluctuations in its Payout Ratio. The Fund's Payout Ratio is likely to be higher in the first and fourth quarters each year compared to the second and third quarters each year since Boston Pizza restaurants generally experience higher Franchise Sales during the summer months when restaurants open their patios and benefit from increased tourist traffic. Higher Franchise Sales generally result in increases in Distributable Cash. On a trailing 12-month basis, the Fund's Payout Ratio was 100.0% as at March 31, 2017. A key feature of the Fund is that it is a "top line" structure, in which BPI and Boston Pizza Canada Limited Partnership ("BP Canada LP") pay the Fund an amount based on Franchise Sales from restaurants in the Fund's royalty pool. Accordingly, Fund unitholders are not directly exposed to changes in the operating costs or profitability of BPI, BP Canada LP or individual Boston Pizza restaurants. Given this structure, and that the Fund has no current mandate to retain capital for other purposes, it is expected that the Fund will maintain a Payout Ratio close to 100% over time as the trustees of the Fund continue to distribute all available cash in order to maximize returns to unitholders. On May 10, 2017 the trustees of the Fund approved a cash distribution to unitholders of 11.5 cents per Unit for April 2017. The distribution will be payable to unitholders of record at the close of business on May 21, 2017 and will be paid on May 31, 2017. The Fund periodically reviews distribution levels based on its policy of stable and sustainable distribution flow to unitholders. Including the April 2017 distribution, which will be paid on May 31, 2017, the Fund will have paid out 178 consecutive monthly distributions totalling $257.2 million or $18.34 per Unit since the Fund's initial public offering in 2002. The tables below set out selected information from the Fund's condensed consolidated interim financial statements together with other data and should be read in conjunction with the condensed consolidated interim financial statements and MD&A of the Fund for the three month periods ended March 31, 2017 and 2016. Boston Pizza is well positioned for future growth and should continue to strengthen its position as the number one casual dining brand in Canada by achieving positive SSSG and opening new Boston Pizza locations across Canada. The two principal factors that affect SSSG are changes in customer traffic and changes in average guest cheque. BPI's and BP Canada LP's strategies to drive higher guest traffic include attracting a wide variety of guests into the restaurant, sports bar and take-out/delivery parts of each location, offering a compelling value proposition to guests and leveraging a larger marketing budget versus the previous year along with a revised calendar of national and local store promotions. Increased average cheque levels are expected to be achieved through a combination of culinary innovation and annual menu re-pricing. In addition, the franchise agreement governing each Boston Pizza restaurant requires a complete store renovation every seven years. Restaurants typically close for two to three weeks to complete the renovation and experience an incremental sales increase in the year following the re-opening. Boston Pizza remains well positioned for future expansion as evidenced by the 11 net new restaurants that opened in 2016 and the one new location that has opened to date in 2017. BPI's management believes that Boston Pizza will continue to serve more guests in more locations than any other casual dining brand in Canada by pursuing further restaurant development opportunities across the country. Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited Partnership, Boston Pizza Holdings Limited Partnership, BP Canada LP, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or management of BPI expects or anticipates will or may occur in the future, including such things as, seasonal fluctuations in the Payout Ratio, the Payout Ratio is likely to be higher in the first and fourth quarters, higher Franchise Sales generally result in increases in Distributable Cash, a Payout Ratio close to 100% will be maintained, trustees of the Fund will continue to distribute all available cash in order to maximize returns to unitholders, Boston Pizza being well positioned for future growth, the strengthening of Boston Pizza's position as the number one casual dining brand in Canada, the achievement of positive SSSG, opening of new restaurants, increases in average guest cheques levels, incremental sales increasing after store renovations, plans to pursue restaurant development opportunities and other such matters are forward-looking information. When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology. The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: future results being similar to historical results, expectation related to future general economic conditions, business plans, receipt of franchise fees and other amounts, franchisees access to financing, pace of commercial real estate development, protection of intellectual property rights of Boston Pizza Royalties Limited Partnership and absence of changes of laws. Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others) competition, demographic trends, consumer preferences and discretionary spending patterns, business and economic conditions, legislation and regulation, Distributable Cash and reliance on operating revenues, accounting policies and practices, the results of operations and financial condition of BPI, BP Canada LP and the Fund, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release. Except as required by law, the Fund and BPI assume no obligation to update previously disclosed forward-looking information. For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the Fund's MD&A for the Period available at www.sedar.com and www.bpincomefund.com. The trustees of the Fund approved the contents of this press release.


Tozer R.S.J.,BP Canada | Tozer R.S.J.,British Petroleum | Choi A.P.,BP Canada | Pietras J.T.,BP Canada | And 2 more authors.
AAPG Bulletin | Year: 2014

The petroleum trap for the Athabasca oil sands has remained elusive because it was destroyed by flexural loading of the Western Canada Sedimentary Basin during the Late Cretaceous and Paleocene. The original trap extent is preserved because the oil was biodegraded to immobile bitumen as the trap was being charged during the Late Cretaceous. Using well and outcrop data, it is possible to reconstruct the Cretaceous overburden horizons beyond the limit of present-day erosion. Sequential restoration of the reconstructed horizons reveals a megatrap at the top of the Wabiskaw-McMurray reservoir in the Athabasca area at 84 Ma (late Santonian). The megatrap is a four-way anticline with dimensions 285 x 125 km (177x78 mi) and maximum amplitude of60m(197ft). The southeastern margin of the anticline shows good conformance to the bitumen edge for 140 km (87 mi). To the northeast of the anticline, bitumen is present in a shallower trap domain in what is interpreted to be an onlap trap onto the Canadian Shield; leakage along the onlap edge is indicated by tarry bitumen outliers preserved in basement rocks farther to the northeast. Peripheral trap domains that lie below the paleospillpoint, in northern, southern, and southwestern Athabasca, and Wabasca, are interpreted to represent a late charge of oil that was trapped by bitumen already emplaced in the anticline and the northeastern onlap trap. This is consistent with kimberlite intrusions containing live bitumen, which indicate that the northern trap domain was charged not before 78 Ma. The trap restoration has been tested using bitumen-water contact well picks. The restored picks fall into groups that are consistent both with the trap domains determined from the top reservoir restoration and the conceptual charge model in which the four-way anticline was filled first, followed by the northeastern onlap trap, and then the peripheral trap domains. © 2014. The American Association of Petroleum Geologists. All rights reserved.


Jones M.,University of Surrey | Taylor S.E.,University of Surrey | Zeng H.,BP Canada
Society of Petroleum Engineers - SPE Heavy Oil Conference Canada 2014 | Year: 2014

Understanding oil sand structure and recovery processes at the laboratory scale is important for generating accurate models to predict performance 'in the field'. Magnetic resonance imaging and nuclear magnetic resonance (NMR) are powerful nondestructive, non-invasive tools that have been shown to be ideal for characterizing porous materials. Previous work using NMR to investigate heavy oil and bitumen sands has primarily focused on one-dimensional relaxation analysis. Whilst the spectra produced are sensitive to the confining geometry and fluid types, there is often overlap between relaxation peaks from different fluids with similar relaxation times. These peaks are often difficult to separate accurately. We present a 20 MHz, 'H NMR two-dimensional correlation spectroscopy study of a range of synthetic oil sands systematically prepared with varying compositions of bitumen, water, sand and clay. These two-dimensional experiments couple nuclear spin relaxation or self-diffusion in one time period with relaxation or self-diffusion occurring during a subsequent time period. This results in the acquisition of proton population distributions as a function of longitudinal (T1) relaxation time and transverse (T1) relaxation time. This allows further, more accurate, discrimination of the fluids and their different physical environments within in the oil sands. The results can also potentially lead to improved wettability and viscosity analyses of heavy oils in-situ. The results from the synthetic samples are then applied to natural core samples. Copyright © (2014) by the Society of Petroleum Engineers All rights reserved.


Wong R.C.K.,University of Calgary | Kumar D.,EBA and 115 | Gautam R.,BP Canada
Canadian Geotechnical Journal | Year: 2011

Bentonite seams of varying thicknesses, from a few millimetres to about 30 cm, are found at depths of 200-300 m within the Belle Fourche Formation and Second White Specks unit in the Cretaceous Colorado Group in the Cold Lake area of Alberta, which is one of four exploration sites for extraction of heavy oil in Alberta. Thermal heavy oil recovery processes in oil sand reservoirs, such as cyclic steam stimulation and steam-assisted gravity drainage, cause casing impairment and failure in the overlying Colorado Group shales. Based on the results from triaxial compression and direct shear box tests on bentonite seam samples, the material displays not only low stiffness and friction angle, but also pronounced creep. Results from numerical analyses of case studies illustrate that the shear slip mechanism along these bentonite seams is admissible in the field under steam stimulation processes. The slip mechanism is mainly attributed to the huge contrast in deformation moduli and creep between the soft bentonite seam and the stiff Colorado Group shales, rather than due to the low frictional resistance derived from the bentonite seam.


Swiech W.M.,University of Surrey | Taylor S.E.,University of Surrey | Zeng H.,BP Canada
Society of Petroleum Engineers - SPE Heavy Oil Conference Canada 2014 | Year: 2014

It has been considered that water soluble species can influence the recovery of bitumen by having an effect on parameters such as wettability or surface charge, thereby altering interactions between oil sand components. This work considers interactions occurring between representative water soluble acid species and their potential effect on bitumen recovery. It considers the characterization of oil sands components in terms of physicochemical and dielectric properties. Dielectric properties arise from electronic and atomic polarization or dipole, ionic or dielectric relaxation mechanisms. Organic compounds present in the water in the natural environment and also considered to be in oil sand reservoirs arc functionalized with chemical groups that undergo chemical processes dependent on the physical conditions of the environment. The study focusses on a combination of artificially prepared systems analyzed using a variety of techniques, including dielectric spectroscopy, UV-Vis spectrophotometry, sedimentation analysis and adsorption isotherms. Dielectric measurements were undertaken on a range of artificially prepared samples analyzed at moderately low frequencies (10-2 to 107 Hz), which, in the first part of this study, revealed strong, regular dependencies on the composition of the systems, enabling effects of adsorbed species to be discerned. These results revealed information on the properties of a range of compounds naturally present in the oil sand or induced during processing. Colloid and interfacial properties were probed through conductivity, surface tension and zeta potential measurements. With reference to the literature and the new results, an attempt has been made to propose the mechanism representing the interactions between the water soluble compounds and other components present in oil sands such as solids and bitumen, which influence not only heavy oil recovery but also produced water treatment. Copyright © (2014) by the Society of Petroleum Engineers All rights reserved.


Swiech W.M.,University of Surrey | Taylor S.E.,University of Surrey | Zeng H.,BP Canada
Society of Petroleum Engineers - SPE Heavy Oil Conference Canada 2013 | Year: 2013

Dielectric logging tools have been used for some time in attempting to characterize oil reservoirs, and in particular to provide in-situ measurements of oil and water saturation. The particular sensitivity of basic electrical measurements, e.g. resistivity, to the presence of water made the original use of this approach most relevant to the determination of water-filled porosity. In-depth dielectric spectroscopic analyses reveal contributions from underlying processes in materials, including electronic, ionic (electric double layer, EDL) and interfacial (Maxwell-Wagner, M-W) polarization, as well as molecular orientation. Our particular objective is the evaluation of dielectric spectroscopy as a means of characterizing the physico-chemical and structural characteristics of oil sands. Relatively recently, there has been a resurgence in interest in the application of dielectric techniques to unconsolidated heterogeneous systems. The present study builds on recent developments in the literature, and, specifically to determine the extent to which the potentially dominant effects of water can be overcome in order to access additional information, such as particle size and wettability. This initial study has therefore involved investigating a range of synthetic oil sands systematically prepared from bitumen, water, sand and clay, to compare the behaviour with results obtained from a real core sample (obtained from a BP asset). The low-frequency dielectric spectroscopic analysis (102 to 10 7 Hz) yields complex properties (e.g. conductivity, permittivity, impedance) with frequency dependent in-phase and quadrature components. Within this frequency range, dielectric spectra are dominated by EDL and M-W polarization effects. By varying the sample preparation methods, it has been possible to observe structural differences with respect to water. Copyright 2013, Society of Petroleum Engineers.


Swiech W.M.,University of Surrey | Taylor S.E.,University of Surrey | Zeng H.,BP Canada
Journal of Canadian Petroleum Technology | Year: 2015

Bitumen recovery is affected by the water-soluble acid species located in the working area, and this paper takes a look at those interactions and the outcomes each may have on oil-sands recovery. Varying parameters on recovery (e.g., oil-sands components, physicochemical and dielectric properties, and organic compounds found in water) are studied to determine the effects of adsorbed species and their interactions between the water-soluble compounds and bitumen present in oil sands. This research allows the industry to better determine both plans for heavy-oil recovery and water treatment.


Simms A.R.,University of California at Santa Barbara | Ivins E.R.,Jet Propulsion Laboratory | DeWitt R.,Oklahoma State University | DeWitt R.,East Carolina University | And 2 more authors.
Quaternary Science Reviews | Year: 2012

The timing of the most recent Neoglacial advance in the Antarctic Peninsula is important for establishing global climate teleconnections and providing important post-glacial rebound corrections to gravity-based satellite measurements of ice loss. However, obtaining accurate ages from terrestrial geomorphic and sedimentary indicators of the most recent Neoglacial advance in Antarctica has been hampered by the lack of historical records and the difficulty of dating materials in Antarctica. Here we use a new approach to dating flights of raised beaches in the South Shetland Islands of the northern Antarctic Peninsula to bracket the age of a Neoglacial advance that occurred between 1500 and 1700 AD, broadly synchronous with compilations for the timing of the Little Ice Age in the northern hemisphere. Our approach is based on optically stimulated luminescence of the underside of buried cobbles to obtain the age of beaches previously shown to have been deposited immediately inside and outside the moraines of the most recent Neoglacial advance. In addition, these beaches mark the timing of an apparent change in the rate of isostatic rebound thought to be in response to the same glacial advance within the South Shetland Islands. We use a Maxwell viscoelastic model of glacial-isostatic adjustment (GIA) to determine whether the rates of uplift calculated from the raised beaches are realistic given the limited constraints on the ice advance during this most recent Neoglacial advance. Our rebound model suggests that the subsequent melting of an additional 16-22% increase in the volume of ice within the South Shetland Islands would result in a subsequent uplift rate of 12.5 mm/yr that lasted until 1840 AD resulting in a cumulative uplift of 2.5 m. This uplift rate and magnitude are in close agreement with observed rates and magnitudes calculated from the raised beaches since the most recent Neoglacial advance along the South Shetland Islands and falls within the range of uplift rates from similar settings such as Alaska. © 2012 Elsevier Ltd.


Payout ratio of 98.9% for the Year despite weaker general economic conditions in regions affected by the oil and gas industry. Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) and Boston Pizza International Inc. ("BPI") reported financial results today for the fourth quarter period from October 1, 2016 to December 31, 2016 (the "Period") and January 1, 2016 to December 31, 2016 (the "Year"). A copy of this press release, the annual consolidated financial statements and related Management's Discussion and Analysis ("MD&A") of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The Fund will host a conference call to discuss the results on February 16, 2017 at 8:30 am Pacific Time (11:30 am Eastern Time). The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay will be available until March 16, 2017 by dialling 1-855-669-9658 or 604-674-8052 and entering the access code: 1134 followed by the # sign. Same store sales growth ("SSSG"), a key driver of distribution growth for unitholders of the Fund, was negative 3.1% for the Period and negative 0.3% for the Year compared to positive 2.2% and positive 1.8%, respectively, for the same periods in 2015. Franchise Sales, the basis upon which Royalty5 and Distribution Income5 are paid to the Fund, exclude revenue from the sale of liquor, beer, wine and approved national promotions and discounts. On a Franchise Sales basis, SSSG was negative 3.1% for the Period and negative 0.5% for the Year compared to positive 1.8% and positive 1.7%, respectively, for the same periods in 2015. The negative SSSG for the Period and Year was principally due to the progressively weaker general economic conditions in regions directly connected to the Canadian oil and gas industry, partially offset by menu re-pricing and higher sales as a result of Boston Pizza's nachos promotion. Franchise Sales of restaurants in the Fund's royalty pool were $204.1 million for the Period and $828.6 million for the Year compared to $205.4 million and $814.0 million, respectively, for the same periods in 2015. The decrease in Franchise Sales for the Period was primarily due to negative SSSG partially offset by the additional Franchise Sales from six net new restaurants added to the royalty pool on January 1, 2016. The increase in Franchise Sales for the Year was primarily due to the additional Franchise Sales from six net new restaurants added to the royalty pool on January 1, 2016 partially offset by negative SSSG. "We are pleased to have achieved an increase in Distributable Cash per Unit of 1.8% for the Year, a Payout Ratio of 98.9% for the Year, and an increase in System-wide Gross Sales of 2.0% to over $1.08 billion for the Year, despite the impact of weaker economic conditions in regions connected to the oil and gas industry. We also opened 13 new Boston Pizza restaurants and renovated 50 locations in 2016", said Mark Pacinda, President and CEO of BPI. "While the impact of progressively weaker general economic conditions in regions directly connected to the Canadian oil and gas industry has presented challenges, we saw strength in other parts of Canada, including Ontario and British Columbia". The Fund's net and comprehensive income was $8.7 million for the Period, relatively unchanged from the fourth quarter of 2015. The Fund's net and comprehensive income was $37.8 million for the Year compared to net and comprehensive income of $19.2 million in 2015. The $18.6 million increase in the Fund's net and comprehensive income for the Year compared to 2015 was primarily due to a net $19.4 million change in fair value adjustments and an increase in Distribution Income of $2.5 million and Royalty income of $0.5 million, partially offset by an increase in income taxes of $2.6 million and an increase in interest and financing expense of $1.3 million. For a detailed discussion on the Fund's net and comprehensive income, please see the "Operating Results - Net and Comprehensive Income / Basic and Diluted Earnings" section in the Fund's MD&A for the Period and the Year. The Fund's net income under International Financial Reporting Standards ("IFRS") contains non-cash items, such as the fair value adjustments on financial instruments and deferred income taxes, that do not affect the Fund's business operations or its ability to pay distributions to unitholders. In the Fund's view, net income is not the only or most meaningful measurement of the Fund's ability to pay distributions. Consequently, the Fund reports the non-IFRS metrics of Distributable Cash and Payout Ratio to provide investors with more meaningful information regarding the amount of cash that the Fund has generated to pay distributions and the extent to which the Fund has distributed that cash. Readers are cautioned that Distributable Cash and Payout Ratio are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. For a reconciliation between cash flow from operating activities (the most directly comparable IFRS measure) and Distributable Cash see the "Financial Summary" section of this press release. For a detailed discussion on the Fund's Distributable Cash and Payout Ratio, please see the "Operating Results - Distributable Cash / Payout Ratio" section in the Fund's MD&A for the Period and the Year. The Fund's Distributable Cash was $6.9 million for the Period compared to $7.2 million for the same period in 2015. The decrease in Distributable Cash of $0.3 million, or 3.3% was primarily due to higher interest expense on Class B Unit and Class C Unit liabilities of $0.3 million. The Fund generated Distributable Cash of $28.2 million for the Year compared to $25.6 million in 2015. The increase in Distributable Cash of $2.6 million, or 10.2%, is primarily comprised of (a) a $2.5 million increase due to the Fund having completed the Transaction6 and receiving $2.5 million more Distribution Income for the Year than in 2015, (b) a $0.9 million increase related to the Fund having incurred an initial change in working capital of $0.9 million (the "Initial Working Capital Change") in 2015 in connection with completing the Transaction with no corresponding change to working capital for the Year, (c) $0.5 million increase due to higher Royalty income of $0.5 million, partially offset by (d) $0.9 million of higher interest expense on Class B Units, and (e) $0.4 million of higher interest expense on long-term debt. Please see the "Distributable Cash / Payout Ratio" section in the Fund's MD&A for the Period and the Year for details regarding the Initial Working Capital Change. The Fund's Distributable Cash per unit of the Fund ("Unit") was $0.341 for the Period and $1.388 for the Year compared to $0.350 and $1.364, respectively, for the same periods in 2015. The decrease in Distributable Cash per Unit of $0.009 or 2.6% for the Period was primarily attributable to the combined effects of lower Distributable Cash for the Period compared to the fourth quarter of 2015 and there being fewer Units issued and outstanding during the Period compared to the fourth quarter of 2015 due to the repurchase and cancellation of Units under the Fund's normal course issuer bids. The increase in Distributable Cash per Unit of $0.024 or 1.8% for the Year is primarily attributable to the accretive effects of the Transaction and the Fund having incurred the Initial Working Capital Change in 2015 with no corresponding change to working capital for the Year, partially offset by the Fund issuing 5,047,613 Units on May 6, 2015 in connection with the Transaction. The percentage increase in Distributable Cash for the Year was larger than the percentage increase in Distributable Cash per Unit for the Year due to the combined effect of the Fund receiving higher Distribution Income, the Initial Working Capital Change, and the Fund issuing 5,047,613 Units on May 6, 2015. The Fund's Payout Ratio was 101.1% for the Period and 98.9% for the Year compared to 92.8% and 94.0%, respectively, for the same periods one year ago. The increase in the Fund's Payout Ratio for the Period compared to the same period in 2015 was due to the combined effects of Distributable Cash for the Period decreasing by $0.3 million, or 3.3%, and distributions paid during the Period increasing by $0.4 million, or 5.4%. The increase in distributions paid during the Period compared to the fourth quarter of 2015 was due to the Fund increasing the monthly distribution from 10.83 cents per Unit to 11.50 cents per Unit beginning with the January 2016 distribution, which was paid on February 29, 2016 (the "2016 Distribution Increase"). The increase in the Fund's Payout Ratio for the Year compared to 2015 was due to the increase in Distributable Cash for the Year, as discussed above, being less than the $3.8 million or 16.0% increase in distributions paid for the Year. The increase in distributions paid for the Year was due to the Fund increasing the monthly distribution from 10.20 cents per Unit to 10.83 cents per Unit beginning with the April 2015 distribution, which was paid on May 29, 2015 (the "2015 Distribution Increase"), the 2016 Distribution Increase and the Fund issuing 5,047,613 Units on May 6, 2015 in connection with the Transaction. The Fund was able to make the 2015 Distribution Increase and 2016 Distribution Increase because of the accretive effect of the Transaction. The Fund strives to provide unitholders with consistent monthly distributions, and as a result, the Fund will generally experience seasonal fluctuations in its Payout Ratio. The Fund's Payout Ratio is likely to be higher in the first and fourth quarters each year compared to the second and third quarters each year since Boston Pizza restaurants generally experience higher Franchise Sales during the summer months when restaurants open their patios and benefit from increased tourist traffic. Higher Franchise Sales generally result in increases in Distributable Cash. A key feature of the Fund is that it is a "top line" structure, in which BPI and BP Canada LP pay the Fund an amount based on Franchise Sales from restaurants in the Fund's royalty pool. Accordingly, Fund unitholders are not directly exposed to changes in the operating costs or profitability of BPI, BP Canada LP or individual Boston Pizza restaurants. Given this structure, and that the Fund has no current mandate to retain capital for other purposes, it is expected that the Fund will maintain a Payout Ratio close to 100% over time as the trustees of the Fund continue to distribute all available cash in order to maximize returns to unitholders. On February 8, 2017 the trustees of the Fund approved a cash distribution to unitholders of 11.5 cents per Unit for January 2017. The distribution is payable to unitholders of record at the close of business on February 21, 2017 and will be paid on February 28, 2017. The Fund periodically reviews distribution levels based on its policy of stable and sustainable distribution flow to unitholders. Including the January 2017 distribution, which will be paid in February 2017, the Fund will have paid out 175 consecutive monthly distributions totalling $250.2 million or $18.00 per Unit since the Fund's initial public offering in 2002. The tables below set out selected information from the Fund's annual consolidated financial statements together with other data and should be read in conjunction with the annual consolidated financial statements and MD&A of the Fund for the years ended December 31, 2016 and 2015. Boston Pizza is well positioned for future growth and should continue to strengthen its position as the number one casual dining brand in Canada by achieving positive SSSG and opening new Boston Pizza locations across Canada. The two principal factors that affect SSSG are changes in customer traffic and changes in average guest cheque. BPI's and BP Canada LP's strategies to drive higher guest traffic include attracting a wide variety of guests into the restaurant, sports bar and take-out/delivery parts of each location, offering a compelling value proposition to guests and leveraging a larger marketing budget versus the previous year along with a revised calendar of national and local store promotions. Increased average cheque levels are expected to be achieved through a combination of culinary innovation and annual menu re-pricing. In addition, the franchise agreement governing each Boston Pizza Restaurant requires a complete store renovation every seven years. Restaurants typically close for two to three weeks to complete the renovation and experience an incremental sales increase in the year following the re-opening. Boston Pizza remains well positioned for future expansion as evidenced by the 11 net new restaurants that opened in 2016 and the two new locations currently under construction. BPI's management believes that Boston Pizza will continue to serve more guests in more locations than any other casual dining brand in Canada by pursuing further restaurant development opportunities across the country. Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited Partnership, Boston Pizza Holdings Limited Partnership, BP Canada LP, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or management of BPI expects or anticipates will or may occur in the future, including such things as, seasonal fluctuations in the Payout Ratio, the Payout Ratio is likely to be higher in the first and fourth quarters, higher Franchise Sales generally result in increases in Distributable Cash, a Payout Ratio close to 100% will be maintained, trustees of the Fund will continue to distribute all available cash in order to maximize returns to unitholders, Boston Pizza being well positioned for future growth, the strengthening of Boston Pizza's position as the number one casual dining brand in Canada, the achievement of positive SSSG, opening of new restaurants, increases in average guest cheques levels, incremental sales increasing after store renovations, plans to pursue restaurant development opportunities and other such matters are forward-looking information. When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology. The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: future results being similar to historical results, expectation related to future general economic conditions, business plans, receipt of franchise fees and other amounts, franchisees access to financing, pace of commercial real estate development, protection of intellectual property rights of Boston Pizza Royalties Limited Partnership and absence of changes of laws. Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others) competition, demographic trends, consumer preferences and discretionary spending patterns, business and economic conditions, legislation and regulation, Distributable Cash and reliance on operating revenues, accounting policies and practices, the results of operations and financial condition of BPI, BP Canada LP and the Fund, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release. Except as required by law, the Fund and BPI assume no obligation to update previously disclosed forward-looking information. For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the Fund's MD&A for the Period and the Year available at www.sedar.com and www.bpincomefund.com. The trustees of the Fund approved the contents of this press release.


Payout Ratio of 91.8% for the Period. Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) and Boston Pizza International Inc. ("BPI") reported financial results today for the third quarter period from July 1, 2016 to September 30, 2016 (the "Period") and January 1, 2016 to September 30, 2016 ("YTD"). A copy of this press release, the condensed consolidated interim financial statements and related Management's Discussion and Analysis ("MD&A") of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The Fund will host a conference call to discuss the results on November 10, 2016 at 8:30 am Pacific Time (11:30 am Eastern Time). The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay will be available until December 10, 2016 by dialling 1-855-669-9658 or 604-674-8052 and entering the access code: 0896 followed by the # sign. Same store sales growth ("SSSG"), a key driver of distribution growth for unitholders of the Fund, was negative 0.5% for the Period and positive 0.7% YTD compared to positive 2.7% and positive 1.6%, respectively, for the same periods in 2015. Franchise Sales, the basis upon which Royalty4 and Distribution Income4 are paid to the Fund, exclude revenue from the sale of liquor, beer, wine and approved national promotions and discounts. On a Franchise Sales basis, SSSG was negative 1.1% for the Period and positive 0.4% YTD compared to positive 2.6% and positive 1.7%, respectively, for the same periods in 2015. The negative SSSG for the Period was principally due to the impact of progressively weaker general economic conditions in regions directly connected to the Canadian oil and gas industry, partially offset by menu re-pricing and higher sales as a result of the Boston Pizza's nachos promotion. The positive SSSG YTD was principally due to menu re-pricing and higher sales as a result of Boston Pizza's nachos promotions, partially offset by the impact of progressively weaker general economic conditions in regions directly connected to the Canadian oil and gas industry. Franchise Sales of restaurants in the Fund's royalty pool were $215.6 million for the Period and $624.5 million YTD compared to $212.4 million and $608.6 million, respectively, for the same periods in 2015. The increase in Franchise Sales for the Period is primarily due to the additional Franchise Sales from six net new Boston Pizza restaurants added to the royalty pool on January 1, 2016 partially offset by negative SSSG. The increase in Franchise Sales YTD is primarily due to the additional Franchise Sales from six net new Boston Pizza restaurants added to the royalty pool on January 1, 2016 and positive SSSG. "We are pleased that Boston Pizza posted growth in Distributable Cash per unit of 2.2% resulting in a solid Payout Ratio of 91.8% for the third quarter", said Mark Pacinda, President and CEO of BPI. "While the impact of progressively weaker general economic conditions in regions directly connected to the Canadian oil and gas industry has presented challenges, we see strength in other parts of Canada including Ontario and British Columbia. Our successful nachos promotion, which started in our second quarter, and the launch of the new menu during the Period contributed positively to our third quarter results". The Fund's net and comprehensive income was $10.5 million for the Period compared to net and comprehensive loss of $2.9 million for the third quarter of 2015. The $13.4 million increase in net and comprehensive income for the Period was primarily due to a net $15.0 million change in fair value adjustments, partially offset by an increase in income taxes of $1.6 million. For a detailed discussion on the Fund's net and comprehensive income, please see the "Operating Results - Net and Comprehensive Income / Basic and Diluted Earnings" section in the Fund's MD&A for the Period. The Fund's net income under International Financial Reporting Standards ("IFRS") contains non-cash items, such as the fair value adjustments on financial instruments and deferred income taxes, that do not affect the Fund's business operations or its ability to pay distributions to unitholders. In the Fund's view, net income is not the only or most meaningful measurement of the Fund's ability to pay distributions. Consequently, the Fund reports the non-IFRS metrics of Distributable Cash and Payout Ratio to provide investors with more meaningful information regarding the amount of cash that the Fund has generated to pay distributions. Readers are cautioned that Distributable Cash and Payout Ratio are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. For a reconciliation between cash flow from operating activities (the most directly comparable IFRS measure) and Distributable Cash see the "Financial Summary" section of this press release. For a detailed discussion on the Fund's Distributable Cash and Payout Ratio, please see the "Operating Results - Distributable Cash / Payout Ratio" section in the Fund's MD&A for the Period. The Fund's Distributable Cash was $7.6 million for the Period compared to $7.5 million for the same period in 2015. The increase in Distributable Cash of $0.1 million, or 1.1% is primarily due to an increase in Royalty income of $0.1 million and lower administrative expenses of $0.1 million, partially offset by higher interest expense on Class B Units of $0.2 million. The Fund generated Distributable Cash of $21.3 million YTD compared to $18.4 million year-to-date in 2015. The increase in Distributable Cash of $2.9 million, or 15.5%, is primarily comprised of (a) a $2.6 million increase due to the Fund completing an indirect investment in Boston Pizza Canada Limited Partnership ("BP Canada LP") on May 6, 2015 to effectively increase the Fund's interest in Franchise Sales of Boston Pizza restaurants in the royalty pool by 1.5%, from 4.0% to 5.5%, less the pro rata portion payable to BPI in respect of its retained interest in the Fund (the "Transaction"), and receiving $2.6 million more Distribution Income YTD than year-to-date in 2015, (b) a $0.9 million increase related to the Fund having incurred an initial change in working capital of $0.9 million (the "Initial Working Capital Change") year-to-date in 2015 in connection with completing the Transaction with no corresponding change to working capital YTD, (c) $0.7 million increase due to higher Royalty income of $0.7 million, partially offset by (d) $0.6 million of higher interest expense on Class B Units, and (e) $0.5 million of higher interest expense on long-term debt. Please see the "Distributable Cash / Payout Ratio" section in the Fund's MD&A for the Period for details regarding the Initial Working Capital Change. The Fund's Distributable Cash per unit of the Fund ("Unit") was $0.376 for the Period and $1.047 YTD compared to $0.368 and $1.013, respectively, for the same periods in 2015. The increase in Distributable Cash per Unit of $0.008 or 2.2% for the Period was primarily attributable to the combined effects of higher Distributable Cash for the Period compared to the third quarter of 2015 and there being fewer units issued and outstanding during the Period compared to the third quarter of 2015 due to the repurchase and cancellation of units under the Fund's normal course issuer bids. The increase in Distributable Cash per Unit of $0.034 or 3.4% YTD is primarily attributable to the accretive effects of the Transaction and the Fund having incurred the Initial Working Capital Change year-to-date in 2015 with no corresponding change to working capital YTD, partially offset by the Fund issuing 5,047,613 Units on May 6, 2015 in connection with the Transaction. The percentage increase in Distributable Cash YTD was larger than the percentage increase in Distributable Cash per Unit YTD due to the combined effect of the Fund receiving higher Distribution Income, the Initial Working Capital Change, and the Fund issuing 5,047,613 Units on May 6, 2015. The Fund's Payout Ratio was 91.8% for the Period and 98.2% YTD compared to 88.3% and 94.5%, respectively, for the same periods one year ago. The Fund's Payout Ratio for the Period and YTD increased compared to the same periods in 2015 due to the increase in Distributable Cash for the Period and YTD, as discussed above, being less than the respective increase in distributions paid during the Period and YTD. The increase in distributions paid during the Period compared to the same period one year ago was due to the Fund increasing the monthly distribution from 10.83 cents per Unit to 11.50 cents per Unit beginning with the January 2016 distribution, which was paid on February 29, 2016 (the "2016 Distribution Increase"). The increase in distributions paid YTD compared to the same period one year ago was due to the Fund increasing the monthly distribution from 10.20 cents per Unit to 10.83 cents per Unit beginning with the April 2015 distribution, which was paid on May 29, 2015 (the "2015 Distribution Increase"), the 2016 Distribution Increase and the Fund issuing 5,047,613 Units on May 6, 2015 in connection with the Transaction. The Fund was able to make the 2015 Distribution Increase and 2016 Distribution Increase because of the accretive effect of the Transaction. The Fund strives to provide unitholders with consistent monthly distributions, and as a result, the Fund will generally experience seasonal fluctuations in its Payout Ratio. The Fund's Payout Ratio is likely to be higher in the first and fourth quarters each year compared to the second and third quarters each year since Boston Pizza restaurants generally experience higher Franchise Sales during the summer months when restaurants open their patios and benefit from increased tourist traffic. Higher Franchise Sales generally result in increases in Distributable Cash. On a trailing 12-month basis, the Fund's Payout Ratio was 96.9% as at September 30, 2016. A key feature of the Fund is that it is a "top line" structure, in which BPI and BP Canada LP pay the Fund an amount based on Franchise Sales from restaurants in the Fund's royalty pool. Accordingly, Fund unitholders are not directly exposed to changes in the operating costs or profitability of BPI, BP Canada LP or individual Boston Pizza restaurants. Given this structure, and that the Fund has no current mandate to retain capital for other purposes, it is expected that the Fund will maintain a Payout Ratio close to 100% over time as the trustees of the Fund continue to distribute all available cash in order to maximize returns to unitholders. On November 9, 2016 the trustees of the Fund approved a cash distribution to unitholders of 11.5 cents per Unit for October 2016. The distribution will be payable to unitholders of record at the close of business on November 21, 2016 and will be paid on November 30, 2016. The Fund periodically reviews distribution levels based on its policy of stable and sustainable distribution flow to unitholders. Including the October 2016 distribution, which will be paid in November 2016, the Fund will have paid out 172 consecutive monthly distributions totalling $243.2 million or $17.65 per Unit since the Fund's initial public offering in 2002. The tables below set out selected information from the Fund's condensed consolidated interim financial statements together with other data and should be read in conjunction with the condensed consolidated interim financial statements and MD&A of the Fund for the three month and nine month periods ended September 30, 2016 and 2015. Boston Pizza is well positioned for future growth and should continue to strengthen its position as the number one casual dining brand in Canada by achieving positive SSSG and opening new Boston Pizza locations across Canada. The two principal factors that affect SSSG are changes in customer traffic and changes in average guest cheque. BPI's and BP Canada LP's strategies to drive higher guest traffic include attracting a wide variety of guests into the restaurant, sports bar and take-out/delivery parts of each location, offering a compelling value proposition to guests and leveraging a larger marketing budget versus the previous year along with a revised calendar of national and local store promotions. Increased average cheque levels are expected to be achieved through a combination of culinary innovation and annual menu re-pricing. In addition, the franchise agreement governing each Boston Pizza restaurant requires a complete store renovation every seven years. Restaurants typically close for two to three weeks to complete the renovation and experience an incremental sales increase in the year following the re-opening. Boston Pizza remains well positioned for future expansion as evidenced by the nine new locations that have opened to date in 2016 and the six new locations currently under construction. BPI's management believes that Boston Pizza will continue to serve more guests in more locations than any other casual dining brand in Canada by pursuing further restaurant development opportunities across the country. Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited Partnership, Boston Pizza Holdings Limited Partnership, BP Canada LP, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or management of BPI expects or anticipates will or may occur in the future, including such things as, seasonal fluctuations in the Payout Ratio, the Payout Ratio is likely to be higher in the first and fourth quarters, higher Franchise Sales generally result in increases in Distributable Cash, a Payout Ratio close to 100% will be maintained, trustees of the Fund will continue to distribute all available cash in order to maximize returns to unitholders, Boston Pizza being well positioned for future growth, the strengthening of Boston Pizza's position as the number one casual dining brand in Canada, the achievement of positive SSSG, opening of new restaurants, increases in average guest cheques levels, incremental sales increasing after store renovations, plans to pursue restaurant development opportunities and other such matters are forward-looking information. When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology. The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: future results being similar to historical results, expectation related to future general economic conditions, business plans, receipt of franchise fees and other amounts, franchisees access to financing, pace of commercial real estate development, protection of intellectual property rights of Boston Pizza Royalties Limited Partnership and absence of changes of laws. Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others) competition, demographic trends, consumer preferences and discretionary spending patterns, business and economic conditions, legislation and regulation, Distributable Cash and reliance on operating revenues, accounting policies and practices, the results of operations and financial condition of BPI, BP Canada LP and the Fund, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release. Except as required by law, the Fund and BPI assume no obligation to update previously disclosed forward-looking information. For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the Fund's MD&A for the Period available at www.sedar.com and www.bpincomefund.com. The trustees of the Fund approved the contents of this press release.

Loading BP Canada collaborators
Loading BP Canada collaborators