At Second Cup, we know that in order to provide the best coffee for our Guests, we must continue to work in harmony with both the environment and people who provide us with the best quality coffee beans. To both our Guests and coffee producers, we pledge that our coffee growing environment is treated with the utmost respect and dignity. All of our coffee producers provide a safe and healthy work environment and employees are compensated in a fair and equitable manner. As well, Second Cup continues to provide financial remuneration for quality beans to directly benefit the farmers, workers and mills. This is our promise.
Second Cup Royalty Income Fund announces March distribution
Apr 20, 2009
9:08am
MISSISSAUGA, ON, April 20 /CNW/ - Second Cup Royalty Income Fund (the
"Fund") (SCU.UN) has announced that its Board of Trustees has approved a cash
distribution of $0.07667 per unit for the month of March 2009. The
distribution for the month of March is to be paid on April 30, 2009 to
unitholders of record at the close of business on April 28, 2009.
In addition, the Fund announced that same café sales for cafés in the
royalty pool declined 3.0% for the period January 1, 2009 through March 31,
2009. Café sales were adversely impacted by the continued downturn in the
economy and consumer discretionary spending patterns.
Having regard to the sales performance and the continued uncertainty in
the retail and economic environment, as well as general market conditions, the
Board of Trustees believes that it is prudent to reduce distributions at this
time to an annualized rate of $0.92 per unit, a decrease of 18% or $0.21 per
unit annually. Distributions by the Fund are not guaranteed and are dependent
on the system sales of cafés in the royalty pool as well as other factors
which the Board continues to monitor. As such, the Board recognizes that this
may result in a build up of cash reserves, but is focused on providing
unitholders with a sustainable level of distributions going forward. The Fund
will continue to work with The Second Cup Ltd. to consider ways to improve
operational performance and the long term outlook for the Second Cup business.
The Fund is an open-ended trust established under the laws of the
Province of Ontario. It holds, through an indirect wholly-owned limited
partnership, the Canadian trade-marks and other intellectual property and
associated rights used by The Second Cup Ltd. ("Second Cup") in connection
with the operation of Second Cup cafés in Canada. For more information on the
Second Cup Royalty Income Fund please visit www.secondcupincomefund.com.
Second Cup is Canada's largest specialty coffee café franchisor and
second largest retailer of specialty coffee, as measured by number of cafés.
For further information on Second Cup, visit www.secondcup.com.
%SEDAR: 00021352E
For further information: please contact: James Anas, (905) 362-1833, investor@secondcup.com, www.secondcupincomefund.com