Mr. Paul Hollands reports
A&W REVENUE ROYALTIES INCOME FUND ANNOUNCES DISTRIBUTION INCREASE;
A&W ANNOUNCES 2.3% DISTRIBUTION INCREASE FOLLOWING SOLID SALES GROWTH
A&W Revenue Royalties Income Fund is increasing monthly cash distributions by 2.3 per cent, from 13 cents per unit to 13.3 cents per unit, beginning with the July, 2016, distribution. On an annualized basis, this represents a distribution rate of $1.596 per unit. The July distribution of 13.3 cents per unit will be payable to unitholders of record on Aug. 15, 2016, and will be paid on Aug. 31, 2016.
This distribution increase is primarily attributable to continued strong same-store sales growth at A&W restaurants across Canada. On July 26, 2016, the fund reported same-store sales growth of 2.7 per cent for the second quarter and 5.4 per cent year to date, and a surplus of distributable cash of $2.54-million for the most recent quarter ended June 19, 2016. The fund reviews distribution levels on a regular basis with the objective of maintaining the continuity of uniform monthly distributions.
"We are very pleased with A&W's continued strong sales and financial performance," said Paul Hollands, chairman and chief executive officer of A&W Food Services of Canada Inc. "I am delighted that our strong results have allowed the fund to increase distributions for the second time this year."
We seek Safe Harbor.
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