Diversified Royalty Corp. Announces Mr. Lube Q4 and Year End 2019 Results
February 26 2020 - 6:00PM
Diversified Royalty Corp. (TSX: DIV; DIV.DB) (the
“
Corporation” or “
DIV”) is
pleased to announce that Mr. Lube Canada Limited Partnership (“Mr.
Lube”) reported its audited results for the three months and year
ended December 31, 2019, which are available on SEDAR at
www.sedar.com. Mr. Lube reported same-store-sales-growth (“SSSG”)
of 2.1% for the three months and 4.1% for the year ended December
31, 2019 for the Mr. Lube stores in the royalty pool, which are
consistent with the amounts reported in DIV’s news release dated
January 30, 2020.
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, AIR MILES®,
Sutton, Mr. Mikes, Nurse Next Door and Oxford Learning Centres
trademarks. Mr. Lube is the leading quick lube service business in
Canada, with locations across Canada. AIR MILES® is Canada’s
largest coalition loyalty program with approximately two-thirds of
Canadian households actively participating in the AIR MILES®
Program. Sutton is among the leading residential real estate
brokerage franchisor businesses in Canada. Mr. Mikes currently
operates casual steakhouse restaurants primarily in western
Canadian communities. Nurse Next Door is one of North America’s
fastest growing home care providers with locations across Canada
and the United States as well as in Australia. Oxford Learning
Centres is one of Canada’s leading franchised supplemental
education services in Canada and the United States.
DIV expects to increase cash flow per share by
making accretive royalty purchases and through the growth of
purchased royalties. DIV expects to pay a predictable and stable
dividend to shareholders and increase the dividend as cash flow per
share increases allow.
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 “intends” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Specifically, forward-looking information in this news release
includes, but are not limited to, statements made in relation to:
DIV’s corporate objectives; and DIV’s expectation that it will pay
a predictable and stable dividend to shareholders and increase the
dividend as cash flow per share increases allow. 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 in such forward-looking statements. DIV believes that the
expectations reflected in these forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct. In particular there can be no assurance
that: DIV will be able to achieve any of its corporate objectives
or make monthly dividend payments to the holders of its common
shares. Given these uncertainties, readers are cautioned that
forward-looking information included in this news release are not
guarantees 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 11,
2019, the “Risk Factors” section of its management’s discussion and
analysis for the three and nine months ended September 30, 2019 and
the “Risk Factors” section of its preliminary short form prospectus
dated February 24, 2020, each of which is available under DIV’s
profile on SEDAR at www.sedar.com.
All of the forward-looking information disclosed
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
contemplated thereby will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, DIV contemplated by such forward-looking information
contained herein. The forward-looking information included 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 Financial Measures
“Same Store Sales Growth” or “SSSG” is used as a
non-IFRS measure in this news release. SSSG for Mr. Lube means the
percentage increase in store sales over the prior comparable period
for locations that were open in both the current and applicable
prior periods that were included in the Mr. Lube royalty pool,
excluding stores that were permanently closed. SSSG is a non-IFRS
financial measure and does not have a standardized meaning
prescribed by IFRS. However, DIV believes that SSSG is a useful
measure as it provides investors with an indication of the change
in year-over-year sales of Mr. Lube locations. DIV’s method of
calculating SSSG may differ from those of other issuers or
companies and, accordingly, SSSG may not be comparable to similar
measures used by other issuers or companies. Accordingly, non-IFRS
financial measures should never be considered in isolation nor as a
substitute for measures reflected in financial statements prepared
in accordance with IFRS
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
Additional information relating to the
Corporation and other public filings, is available on SEDAR at
www.sedar.com.
Contact:Sean Morrison, President and Chief
Executive Officer Diversified Royalty Corp.(604) 235-3146
Greg Gutmanis, Chief Financial Officer and VP
AcquisitionsDiversified Royalty Corp.(604) 235-3146
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