Diversified Royalty Corp. (TSX: DIV and DIV.DB.A) (the
“Corporation” or “DIV”) is pleased to announce its financial
results for the three months ended September 30, 2024 (“Q3 2024”)
and nine months ended September 30, 2024.
Highlights
- The weighted
average organic royalty growth1 of DIV’s diversified royalty
portfolio was 4.3% in Q3 2024 and 4.8% for the nine months ended
September 30, 2024, compared to 6.8% for the three months ended
September 30, 2023 (“Q3 2023”) and 9.1% for the nine months ended
September 30, 2023. The weighted average organic royalty growth1 on
a constant currency basis was 4.0% in Q3 2024 and 4.6% for the nine
months ended September 30, 2024.
- Revenue of $16.1
million in Q3 2024 and $48.0 million for the nine months ended
September 30, 2024, up 18.3% and 19.6%, respectively, compared to
the same periods in 2023.
- Adjusted revenue1
of $17.4 million in Q3 2024 and $51.9 million for the nine months
ended September 30, 2024, up 16.9% and 18.1%, respectively,
compared to the same periods in 2023.
- Distributable cash1
of $11.0 million in Q3 2024 and $32.2 million for the nine months
ended September 30, 2024, up 20.5% and 16.1%, respectively,
compared to the same periods in 2023.
- Payout ratio1 of
94.1% in Q3 2024 based on dividends of $0.0625 per share for the
quarter, compared to 94.4% in Q3 2023 based on dividends of $0.0602
per share for the comparable quarter and 93.0% for the nine months
ended September 30, 2024 based on dividends of $0.1862 per share
for the period, compared to 92.5% based on dividends of $0.1802 per
share for the comparable period.
- DIV celebrated the
10-year anniversary of the closing of its first royalty
transaction.
Third Quarter Results
|
|
Three months
ended September 30, |
|
Nine months ended
September 30, |
|
(000’s) |
|
2024 |
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mr. Lube + Tires |
$ |
7,763 |
|
$ |
7,312 |
|
$ |
22,587 |
|
$ |
20,619 |
|
Stratusa |
|
2,154 |
|
|
2,018 |
|
|
6,445 |
|
|
6,072 |
|
BarBurrito |
|
2,101 |
|
|
- |
|
|
6,302 |
|
|
- |
|
Nurse Next Doorb |
|
1,323 |
|
|
1,297 |
|
|
3,969 |
|
|
3,891 |
|
Oxford |
|
930 |
|
|
915 |
|
|
3,325 |
|
|
3,359 |
|
Sutton |
|
1,117 |
|
|
1,096 |
|
|
3,307 |
|
|
3,244 |
|
Mr. Mikes |
|
1,088 |
|
|
1,180 |
|
|
3,187 |
|
|
3,440 |
|
AIR MILES® |
|
924 |
|
|
1,071 |
|
|
2,744 |
|
|
3,308 |
|
Adjusted revenuec |
$ |
17,400 |
|
$ |
14,889 |
|
$ |
51,866 |
|
$ |
43,933 |
|
a) |
Stratus royalty income for the three and nine months ended
September 30, 2024 was US$1.6 million and US$4.7 million,
respectively, translated at an average foreign exchange rate of
$1.3634 and $1.3600 to US$1, respectively (three and nine months
ended September 30, 2023 – royalty income of US$1.5 million and
US$4.5 million, respectively, translated at an average foreign
exchange rate of $1.3413 and $1.3454 to US$1, respectively). |
b) |
Represents the DIV Royalty Entitlement plus management fees
received from Nurse Next Door. |
c) |
DIV Royalty Entitlement and adjusted revenue are non-IFRS financial
measures and as such, do not have standardized meanings under IFRS.
For additional information, refer to “Non-IFRS Measures” in this
news release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In Q3 2024, DIV generated $16.1 million of
revenue compared to $13.6 million in Q3 2023. After taking into
account the DIV Royalty Entitlement1 (defined below) related to
DIV’s royalty arrangements with Nurse Next Door, DIV’s adjusted
revenue was $17.4 million in Q3 2024, compared to $14.9 million in
Q3 2023. Adjusted revenue increased primarily due to incremental
revenue received through the acquisition of the BarBurrito rights
on October 4, 2023, positive SSSG1 (defined below) at
Mr. Lube + Tires and Oxford, the annual contractual
royalty increases at Stratus, Nurse Next Door and Sutton, partially
offset by negative SSSG from Mr. Mikes and lower royalty income
from AIR MILES®, all as discussed in further detail below.
1. Adjusted revenue, distributable cash and DIV
Royalty Entitlement are non-IFRS financial measures, payout ratio
is a non-IFRS ratio and weighted average organic royalty growth and
SSSG are supplementary financial measures – see “Non-IFRS Measures”
below.
Royalty Partner Business Updates
Mr. Lube + Tires: Mr. Lube
Canada Limited Partnership (“Mr. Lube + Tires”) generated SSSG2 of
7.7% for the Mr. Lube + Tires stores in the royalty pool for Q3
2024, compared to SSSG of 16.4% in Q3 2023.
2. Same-store-sales growth or SSSG is a
supplementary financial measure – see “Non-IFRS Measures”
below.
Stratus: Royalty income from
SBS Franchising LLC (“Stratus”) was $2.2 million (US$1.6 million
translated at an average foreign exchange rate of $1.3634 to
US$1.00) for Q3 2024. The fixed royalty payable by Stratus
increases each November at a rate of 5% until and including
November 2026 and 4% each November thereafter during the term of
the license, with the most recent increase effective November 15,
2023.
Nurse Next Door: The royalty
entitlement to DIV (the “DIV Royalty Entitlement3”) from Nurse Next
Door Professional Homecare Services Inc. (“Nurse Next Door”) was
$1.3 million in Q3 2024. The DIV Royalty Entitlement from Nurse
Next Door grows at a fixed rate of 2.0% per annum during the term
of the license, with the most recent increase effective October 1,
2024.
3. DIV Royalty Entitlement is a non-IFRS measure
– see “Non-IFRS Measures” below.
Mr. Mikes: SSSG4 for the Mr.
Mikes Restaurants Corporation (“Mr. Mikes”) restaurants in the Mr.
Mikes royalty pool was -3.1% in Q3 2024, compared to SSSG of 3.6%
in Q3 2023. The lower SSSG percentage in the current period is due
to lower restaurant guest traffic.
Royalty income and management fees of $1.1
million were generated from Mr. Mikes in Q3 2024, compared to $1.2
million in Q3 2023.
4. Same-store-sales growth or SSSG is a
supplementary financial measure – see “Non-IFRS Measures”
below.
Oxford: The Oxford Learning
Centres, Inc. (“Oxford”) locations in the Oxford royalty pool
generated SSSG5 (on a constant currency basis) of 1.8% in Q3 2024,
compared to SSSG of -0.9% in Q3 2023. Oxford’s SSSG has returned to
being positive after lapping the completion of the Ontario
Government funding of student learning support, which included
private tutoring, which funding completed in the first half of
2023.
5. Same-store-sales growth or SSSG is a
supplementary financial measure – see “Non-IFRS Measures”
below.
AIR MILES®: In Q3 2024, royalty
income of $0.9 million was generated from the AIR MILES® Licenses
compared to $1.1 million generated in Q3 2023, a decrease of 13.7%
from the comparable quarter. The decrease is largely due to
continued softness in the AIR MILES® Rewards Program.
Sutton: In Q3 2024, royalty
income of $1.1 million was generated from Sutton. The fixed royalty
payable by Sutton increases at a rate of 2% per year, with the most
recent increase effective July 1, 2024.
BarBurrito: Royalty income from
BarBurrito Restaurants Inc. (“BarBurrito”) was $2.1 million for Q3
2024. The royalty payable by BarBurrito initially grows at a fixed
rate of 4% per annum for the first seven years and, commencing on
January 1, 2031, will fluctuate based on the gross sales of the
BarBurrito locations in the royalty pool.
Third Quarter Commentary
Sean Morrison, President and Chief Executive
Officer of DIV stated, “DIV is pleased with how its royalty
partners performed in the third quarter of 2024. Mr. Lube, our
largest royalty partner, continued to see growth, generating SSSG6
of 7.7% for the three-month period ended September 30, 2024. Oxford
returned to positive SSSG of 1.8% in the third quarter after two
quarters of mildly negative SSSG, while Mr. Mikes continued to show
a slight decline similar to its Q1 and Q2 2024 performance.
However, Mr. Mikes’ management remains optimistic about its future
opportunities for the business, including incremental location
growth. Royalty partners Nurse Next Door, Sutton, Stratus and
BarBurrito made their fixed royalty payments. DIV continues to see
a decrease in royalty income from AIR MILES as a result of softness
in the AIR MILES® Rewards Program. However, DIV management recently
met with the President of AIR MILES and he highlighted their
substantial commitment and continued investment in AIR MILES
Rewards Program under BMO’s ownership.”
6. Same-store-sales growth or SSSG is a
supplementary financial measure – see “Non-IFRS Measures”
below.
Distributable Cash and Dividends Declared
In Q3 2024, distributable cash7 increased to
$11.0 million ($0.0665 per share), compared to $9.1 million
($0.0638 per share) in Q3 2023. The increase in distributable cash7
for the quarter was primarily due to higher adjusted revenue7, and
lower professional fees and general and administrative expenses,
partially offset by higher interest expense, and salaries and
benefits. The increase in distributable cash per share7 for the
quarter was primarily due to an increase in distributable cash,
partially offset by a higher weighted average number of common
shares outstanding.
In Q3 2024, the payout ratio7 was 94.1% on
dividends of $0.0625 per share, compared to the payout ratio of
94.4% on dividends of $0.0600 per share for the same respective
period in 2023. The decrease was primarily due to higher
distributable cash per share, partially offset by higher dividends
declared per share 7.
7. Adjusted revenue and distributable cash are
non-IFRS financial measures and distributable cash per share and
payout ratio are non-IFRS ratios – see “Non-IFRS Measures”
below.
Net Income
Net income for Q3 2024 was $6.9 million compared
to net income of $6.8 million for the three months ended September
30, 2023. The increase in net income in Q3 2024 was primarily due
to higher adjusted revenue8, lower professional fees and general
and administrative expenses, partially offset by higher share-based
compensation expenses, interest expense on credit facilities, and
income tax expense.
8. Adjusted revenue is a non-IFRS financial
measure – see “Non-IFRS Measures” below.
Diversified Royalty Corp. 10-Year
Anniversary
DIV is proud to celebrate the 10-year
anniversary of its first royalty transaction. On September 26,
2014, the Company completed its first royalty transaction and was
renamed Diversified Royalty Corp. In conjunction with this,
the Company began trading on the TSX under the stock symbol “DIV”.
Subsequently, DIV has completed 8 further royalty transactions with
a diversified group of royalty partners. Since November 2014, DIV
has paid a monthly dividend every month, without
exception. These cumulative dividends total over $2.21 per
share as of November 5, 2024. The combination of these
dividends and share price appreciation equates to approximately a
15.9% annualized IRR9 since December 2013. With a diversified
portfolio of royalty partners and proven business model, DIV is
optimistic about its prospects over the next 10 years.
9. IRR is a supplementary financial measure –
see “Non-IFRS Measures” below.
About Diversified Royalty Corp.
DIV is a multi-royalty corporation,
engaged in the business of acquiring top-line royalties from
well-managed multi-location businesses and franchisors in North
America. DIV’s objective is to acquire predictable, growing royalty
streams from a diverse group of multi-location businesses and
franchisors.
DIV currently owns the Mr. Lube + Tires,
AIR MILES®, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning
Centres, Stratus Building Solutions and BarBurrito trademarks. Mr.
Lube + Tires is the leading quick lube service business in Canada,
with locations across Canada. AIR MILES® is Canada’s largest
coalition loyalty program. Sutton is among the leading residential
real estate brokerage franchisor businesses in Canada. Mr. Mikes
operates casual steakhouse restaurants primarily in western
Canadian communities. Nurse Next Door is a home care provider with
locations across Canada and the United States as well as in
Australia. Oxford Learning Centres is one of Canada’s leading
franchisee supplemental education services. Stratus Building
Solutions is a leading commercial cleaning service franchise
company providing comprehensive building cleaning, and office
cleaning services primarily in the United States. BarBurrito is the
largest quick service Mexican restaurant food chain in
Canada.
DIV’s objective is to increase cash flow
per share by making accretive royalty purchases and through the
growth of purchased royalties. DIV intends to continue to pay a
predictable and stable monthly dividend to shareholders and
increase the dividend over time, in each case as cash flow per
share allows.
Forward-Looking Statements
Certain statements contained in this news
release may constitute “forward-looking information” within the
meaning of applicable securities laws that involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking information. The use
of any of the words “anticipate”, “continue”, “estimate”, “expect”,
“intend”, “may”, “will”, ”project”, “should”, “believe”,
“confident”, “plan” and “intend” and similar expressions are
intended to identify forward-looking information, although not all
forward-looking information contains these identifying words.
Specifically, forward-looking information in this news release
includes, but is not limited to, statements made in relation to:
DIV being optimistic about its prospects over the next 10 years;
Mr. Mikes management being optimistic about future opportunities
for its business, including incremental location growth; AIR MILES®
substantial commitment and continued investment in the AIR MILES®
Reward Program under BMO’s ownership; DIV’s intention to pay
monthly dividends to shareholders; and DIV’s corporate objectives.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events, performance,
or achievements of DIV to differ materially from those anticipated
or implied by such forward-looking information. DIV believes that
the expectations reflected in the forward-looking information
included in this news release are reasonable but no assurance can
be given that these expectations will prove to be correct. In
particular, risks and uncertainties include: DIV’s royalty partners
may not make their respective royalty payments to DIV, in whole or
in part; the decline in royalties received under the AIR MILES®
licenses could cause AM Royalties Limited Partnership (“AM LP”) to
be required to make partial or full repayment of the outstanding
principal amount under its credit agreement, or cause AM LP to be
in default under its credit agreement; current positive trends
being experienced by certain of DIV’s royalty partners (and their
respective franchisees) may not continue and may regress, and
current negative trends experienced by certain of DIV’s royalty
partners (including their respective franchisees) may continue and
may regress; DIV and its royalty partners performance may not meet
management’s expectations; DIV may not be able to make monthly
dividend payments to the holders of its common shares; AIR MILES®
investment in the AIR MILES® Reward Program may not result in
improved performance of the AIR MILES® royalty, and such
investments may be reduced or cease; dividends are not guaranteed
and may be reduced, suspended or terminated at any time; or DIV may
not achieve any of its corporate objectives. Given these
uncertainties, readers are cautioned that forward-looking
information included in this news release is not a guarantee of
future performance, and such forward-looking information should not
be unduly relied upon. More information about the risks and
uncertainties affecting DIV’s business and the businesses of its
royalty partners can be found in the “Risk Factors” section of its
Annual Information Form dated March 21, 2024 and in DIV’s
management’s discussion and analysis for the three and nine months
ended September 30, 2024, copies of which are available under DIV’s
profile on SEDAR+ at www.sedarplus.com.
In formulating the forward-looking information
contained herein, management has assumed that DIV will generate
sufficient cash flows from its royalties to service its debt and
pay dividends to shareholders; lenders will provide any necessary
waivers required in order to allow DIV to continue to pay
dividends; lenders will provide any other necessary covenant
waivers to DIV and its royalty partners; the performance of DIV’s
royalty partners will be consistent with DIV’s and its royalty
partners’ respective expectations; recent positive trends for
certain of DIV’s royalty partners (including their respective
franchisees) will continue and not regress; current negative trends
experienced by certain of DIV’s royalty partners (including their
respective franchisees) will not materially regress; the businesses
of DIV’s respective royalty partners will not suffer any material
adverse effect; and the business and economic conditions affecting
DIV and its royalty partners will continue substantially in the
ordinary course, including without limitation with respect to
general industry conditions, general levels of economic activity
and regulations. These assumptions, although considered reasonable
by management at the time of preparation, may prove to be
incorrect.
All of the forward-looking information in this
news release is qualified by these cautionary statements and other
cautionary statements or factors contained herein, and there can be
no assurance that the actual results or developments will be
realized or, even if substantially realized, that it will have the
expected consequences to, or effects on, DIV. The forward-looking
information in this news release is made as of the date of this
news release and DIV assumes no obligation to publicly update or
revise such information to reflect new events or circumstances,
except as may be required by applicable law.
Non-IFRS Measures
Management believes that disclosing certain
non-IFRS financial measures, non-IFRS ratios and supplementary
financial measures provides readers with important information
regarding the Corporation’s financial performance and its ability
to pay dividends and the performance of its royalty partners. By
considering these measures in combination with the most closely
comparable IFRS measure, management believes that investors are
provided with additional and more useful information about the
Corporation and its royalty partners than investors would have if
they simply considered IFRS measures alone. The non-IFRS financial
measures, non-IFRS ratios and supplementary financial measures do
not have standardized meanings prescribed by IFRS and therefore are
unlikely to be comparable to similar measures presented by other
issuers. Investors are cautioned that non-IFRS measures should not
be construed as a substitute or an alternative to net income or
cash flows from operating activities as determined in accordance
with IFRS.
“Adjusted revenue”, “adjusted royalty income”,
“DIV Royalty Entitlement” and “distributable cash” are used as
non-IFRS financial measures in this news release.
Adjusted revenue is calculated as royalty income
plus DIV Royalty Entitlement and management fees. The following
table reconciles adjusted revenue and adjusted royalty income to
royalty income, the most directly comparable IFRS measure disclosed
in the financial statements:
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
(000's) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Mr. Lube + Tires |
$ |
7,703 |
|
$ |
7,254 |
|
$ |
22,410 |
|
$ |
20,446 |
|
Stratus |
|
2,154 |
|
|
2,018 |
|
|
6,445 |
|
|
6,072 |
|
BarBurrito |
|
2,080 |
|
|
- |
|
|
6,240 |
|
|
- |
|
Oxford |
|
919 |
|
|
905 |
|
|
3,293 |
|
|
3,329 |
|
Sutton |
|
1,089 |
|
|
1,068 |
|
|
3,224 |
|
|
3,161 |
|
Mr. Mikes |
|
1,078 |
|
|
1,168 |
|
|
3,156 |
|
|
3,405 |
|
AIR MILES® |
|
924 |
|
|
1,071 |
|
|
2,744 |
|
|
3,308 |
|
Royalty income |
$ |
15,947 |
|
$ |
13,484 |
|
$ |
47,512 |
|
$ |
39,721 |
|
DIV Royalty Entitlement |
|
1,303 |
|
|
1,277 |
|
|
3,908 |
|
|
3,831 |
|
Adjusted royalty income |
$ |
17,250 |
|
$ |
14,761 |
|
$ |
51,420 |
|
$ |
43,552 |
|
Management fees |
|
150 |
|
|
128 |
|
|
446 |
|
|
381 |
|
Adjusted revenue |
$ |
17,400 |
|
$ |
14,889 |
|
$ |
51,866 |
|
$ |
43,933 |
|
|
|
|
|
|
For further details with respect to adjusted
revenue and adjusted royalty income, refer to the subsection
“Non-IFRS Financial Measures” under “Description of Non-IFRS
Financial Measures, Non-IFRS Ratios and Supplementary Financial
Measures” in the Corporation’s management’s discussion and analysis
for the three and nine months ended September 30, 2024, a copy of
which is available on SEDAR+ at www.sedarplus.com.
The most closely comparable IFRS measure to DIV
Royalty Entitlement is “distributions received from NND LP”. DIV
Royalty Entitlement is calculated as distributions received from
NND LP, before any deduction for expenses incurred by NND Holdings
Limited Partnership (“NND LP”), which expenses include legal,
audit, tax and advisory services. Note that distributions received
from NND LP is derived from the royalty paid by Nurse Next Door to
NND LP. The following table reconciles DIV Royalty Entitlement to
distributions received from NND LP in the financial statements:
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
(000's) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Distributions received from NND LP |
$ |
1,292 |
|
|
$ |
1,277 |
|
$ |
3,883 |
|
|
$ |
3,811 |
|
|
Add: NND Royalties LP expenses |
|
11 |
|
|
|
- |
|
|
25 |
|
|
|
20 |
|
|
DIV Royalty Entitlement |
|
1,303 |
|
|
|
1,277 |
|
|
3,908 |
|
|
|
3,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: NND Royalties LP expenses |
|
(11 |
) |
|
|
- |
|
|
(25 |
) |
|
|
(20 |
) |
|
DIV Royalty Entitlement, net of NND Royalties LP
expenses |
$ |
1,292 |
|
|
$ |
1,277 |
|
$ |
3,883 |
|
|
$ |
3,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further details with respect to DIV Royalty
Entitlement, refer to the subsection “Non-IFRS Financial Measures”
under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios
and Supplementary Financial Measures” in the Corporation’s
management’s discussion and analysis for the three and nine months
ended September 30, 2024, a copy of which is available on SEDAR+ at
www.sedarplus.com.
The following table reconciles distributable
cash to cash flows generated from operating activities, the most
directly comparable IFRS measure disclosed in the financial
statements:
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
(000's) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows generated from operating
activities |
$ |
12,712 |
|
|
$ |
10,424 |
|
|
$ |
34,767 |
|
|
$ |
23,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense |
|
(2,075 |
) |
|
|
(1,501 |
) |
|
|
(5,216 |
) |
|
|
(4,216 |
) |
|
Accrued interest on convertible debentures |
|
(788 |
) |
|
|
(788 |
) |
|
|
(788 |
) |
|
|
(788 |
) |
|
Accrued interest on bank loans |
|
17 |
|
|
|
- |
|
|
|
(425 |
) |
|
|
- |
|
|
Distributions on exchangeable MRM units |
|
(30 |
) |
|
|
(53 |
) |
|
|
(104 |
) |
|
|
(126 |
) |
|
Mandatory principal payments on credit facilities |
|
- |
|
|
|
(431 |
) |
|
|
(643 |
) |
|
|
(431 |
) |
|
Payment of lease obligations |
|
(28 |
) |
|
|
(26 |
) |
|
|
(82 |
) |
|
|
(79 |
) |
|
NND LP expenses |
|
(4 |
) |
|
|
- |
|
|
|
(25 |
) |
|
|
(20 |
) |
|
Accrued DIV Royalty Entitlement, net of distributions |
|
4 |
|
|
|
56 |
|
|
|
25 |
|
|
|
- |
|
|
Foreign exchange and other |
|
31 |
|
|
|
315 |
|
|
|
159 |
|
|
|
(166 |
) |
|
Changes in working capital |
|
(342 |
) |
|
|
(503 |
) |
|
|
336 |
|
|
|
4,105 |
|
|
Taxes paid |
|
1,501 |
|
|
|
1,637 |
|
|
|
4,500 |
|
|
|
6,043 |
|
|
Note receivable |
|
- |
|
|
|
- |
|
|
|
(305 |
) |
|
|
- |
|
|
Distributable cash |
$ |
10,998 |
|
|
$ |
9,130 |
|
|
$ |
32,199 |
|
|
$ |
27,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further details with respect to
distributable cash, refer to the subsection “Non-IFRS Financial
Measures” under “Description of Non-IFRS Financial Measures,
Non-IFRS Ratios and Supplementary Financial Measures” in the
Corporation’s management’s discussion and analysis for the three
and nine months ended September 30, 2024, a copy of which is
available on SEDAR+ at www.sedarplus.com.
“Distributable cash per share” and “payout
ratio” are non-IFRS ratios that do not have a standardized meaning
prescribed by IFRS, and therefore may not be comparable to similar
ratios presented by other issuers. Distributable cash per share is
defined as distributable cash, a non-IFRS measure, divided by the
weighted average number of common shares outstanding during the
period. The payout ratio is calculated by dividing the dividends
per share during the period by the distributable cash per share, a
non-IFRS measure, generated in that period. For further details,
refer to the subsection entitled “Non-IFRS Ratios” under
“Description of Non-IFRS Financial Measures, Non-IFRS Ratios and
Supplementary Financial Measures” in the Corporation’s management’s
discussion and analysis for the three and nine months ended
September 30, 2024, a copy of which is available on SEDAR+ at
www.sedarplus.com.
“Weighted average organic royalty growth” is the
average same store sales growth percentage related to Mr. Lube +
Tires, Oxford and Mr. Mikes (excluding the collection of Mr. Mikes
deferred royalty management fees) plus the average increase in
adjusted royalty income from AIR MILES®, Sutton, Nurse Next Door
and Stratus over the prior comparable period taking into account
the percentage weighting of each royalty partner’s adjusted royalty
income in proportion of the total adjusted royalty income for the
period, excluding BarBurrito as there was no adjusted royalty
income generated from BarBurrito in the prior period. Weighted
average organic royalty growth is a supplementary financial measure
and does not have a standardized meaning prescribed by IFRS.
However, the Corporation believes that weighted average organic
royalty growth is a useful measure as it provides investors with an
indication of the change in year-over-year growth of each royalty
partner, taking into account the percentage weighting of royalty
partner’s growth in proportion of total growth, as applicable. The
Corporation’s method of calculating weighted average organic
royalty growth may differ from those of other issuers or companies
and, accordingly, weighted average organic royalty growth may not
be comparable to similar measures used by other issuers or
companies.
“Same store sales growth” or “SSSG” and “system
sales” are supplementary financial measures and do not have
standardized meanings prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers. SSSG and
system sales figures are reported to DIV by its Royalty Partners –
see “Third Party Information”. For further details, refer to the
subsection entitled “Supplementary Financial Measures” under
“Description of Non-IFRS Financial Measures, Non-IFRS Ratios and
Supplementary Financial Measures” in the Corporation’s management’s
discussion and analysis for the three and nine months ended
September 30, 2024, a copy of which is available on SEDAR+ at
www.sedarplus.com.
“IRR” or Internal Rate of Return, is the
compound annual rate of return that would have been generated on an
investment in shares of DIV, calculated using the annual rate of
return from all monthly dividends per share paid by DIV, plus the
DIV share price appreciation per share over the relevant period.
IRR is a supplementary financial measure and does not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers.
Third Party Information
This news release includes information obtained
from third party company filings and reports and other publicly
available sources as well as financial statements and other reports
provided to DIV by its royalty partners. Although DIV believes
these sources to be generally reliable, such information cannot be
verified with complete certainty. Accordingly, the accuracy and
completeness of this information is not guaranteed. DIV has not
independently verified any of the information from third party
sources referred to in this news release nor ascertained the
underlying assumptions relied upon by such sources.
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
The information in this news release should be
read in conjunction with DIV’s consolidated financial statements
and management’s discussion and analysis (“MD&A”) for the three
and nine months ended September 30, 2024, which are available on
SEDAR+ at www.sedarplus.com.
Additional information relating to the
Corporation and other public filings, is available on SEDAR+ at
www.sedarplus.com.
Contact:Sean Morrison, President and Chief
Executive OfficerDiversified Royalty Corp. (236) 521-8470
Greg Gutmanis, Chief Financial Officer and VP
Acquisitions Diversified Royalty Corp. (236) 521-8471
Diversified Royalty (TSX:DIV)
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から 11 2024 まで 12 2024
Diversified Royalty (TSX:DIV)
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から 12 2023 まで 12 2024