Toronto Stock Exchange: BPF.UN HIGHLIGHTS Franchise Sales1 of $222.0 million for the Period, representing a decrease of 1.0% versus the same period one year ago. Same Restaurant Sales2 of negative 1.0% for the Period. Cash flows generated from operating activities of $9.1 million for the Period, representing a decrease of 1.3% versus the same period one year ago. Distributable Cash3 increased 1.8% for the Period and Distributable Cash per Unit4 increased 3.0% for the Period. Payout Ratio5 of 96.8% for the Period and 89.9% on a trailing 12-month basis. Cash balance at the end of the Period was $4.7 million. On February 13, 2024, the Fund increased its monthly distribution rate to $0.113 per unit of the Fund ("Unit") for the January 2024 distribution from the previous monthly rate of $0.107 per Unit, being an increase of $0.006 per Unit or 5.6%. On May 9, 2024, the trustees of the Fund declared a distribution for the period of April 1, 2024 to April 30, 2024 of $0.113 per Unit, which will be payable on May 31, 2024 to unitholders of the Fund ("Unitholders") of record on May 21, 2024. VANCOUVER, BC, May 10, 2024 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the first quarter period from January 1, 2024 to March 31, 2024 (the "Period").  A copy of this press release, the unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") of the Fund and BPI are available at www.sedarplus.ca and www.bpincomefund.com.  The Fund will host a conference call to discuss the results on May 10, 2024 at 8:30 am Pacific Time (11:30 am Eastern Time).  The call can be accessed by dialling 1-844-763-8274 or +1-647-484-8814.  A replay will be available until June 10, 2024 by dialling 1-855-669-9658 or +1-604-674-8052 and entering the access code: 0804 followed by the # sign.  The replay will also be available at www.bpincomefund.com.  Capitalized terms used in this press release that are not otherwise defined have the meanings ascribed to them in the Fund's MD&A for the Period. "The first quarter of 2024 presented macroeconomic challenges for the full-service restaurant industry", stated Jordan Holm, BPI's President.  "The prevailing economic conditions, characterized by high interest rates and inflationary pressures have influenced consumer behavior, impacting discretionary spending and leading to a cautious approach towards dining out.  Despite these obstacles, we had solid Franchise Sales in the first quarter underscoring the resilience of our business.  We remain pleased with the dedication demonstrated by our franchisees and their restaurant teams." PERIOD RESULTS SRS, a key driver of distribution growth for Unitholders, was negative 1.0% for the Period compared to positive 25.7% reported in the first quarter of 2023.  SRS for the Period was principally due to macroeconomic challenges faced by the full-service industry, partially offset by menu price increases.  The COVID-19 restrictions that existed during the first quarter of 2022 were a significant factor in the positive SRS reported in the first quarter of 2023. Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $222.0 million for the Period compared to $224.2 million for the same period one year ago.  The $2.2 million decrease in Franchise Sales for the Period was primarily due to negative SRS. The Fund's net and comprehensive income was $8.5 million for the Period compared to $6.7 million for the first quarter of 2023.  The $1.8 million increase in the Fund's net and comprehensive income for the Period compared to the first quarter of 2023 was primarily due to a $2.4 million increase in fair value gain, partially offset by a $0.4 million increase in deferred income tax expense, a $0.1 million decrease in Royalty6 and Distribution Income7 and a $0.1 million increase in interest expense on Class B Unit liability. The Fund's cash flows generated from operating activities was $9.1 million for the Period compared to $9.2 million in the first quarter of 2023.  The decrease of $0.1 million was primarily due to an increase in income taxes paid of $0.2 million and a decrease in Royalty and Distribution Income of $0.1 million, partially offset by an increase in working capital of $0.2 million. The Fund generated Distributable Cash of $7.3 million for the Period compared to $7.2 million for the first quarter of 2023.  The increase in Distributable Cash of $0.1 million or 1.8% was primarily due to SIFT Tax on Units adjustment of $0.2 million and lower interest paid on debt of $0.1 million, partially offset by decreased cash flows generated from operating activities of $0.1 million. The Fund generated Distributable Cash per Unit of $0.344 for the Period compared to $0.334 for the same period one year ago.  The increase in Distributable Cash per Unit of $0.010 or 3.0% was primarily attributable to the increase in Distributable Cash outlined above and fewer Units outstanding compared to the same period in 2023 due to the Fund's normal course issuer bid. The Fund's Payout Ratio for the Period was 96.8% compared to 91.6% in the first quarter of 2023.  The increase in the Fund's Payout Ratio for the Period was due to distributions paid increasing by $0.5 million or 7.6%, partially offset by Distributable Cash increasing by $0.1 million or 1.8%.  Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period.  The Fund's Payout Ratio is typically higher in the first and fourth quarters compared to the second and third quarters since Boston Pizza restaurants generally experience higher Franchise Sales levels during the summer months when restaurants open their patios and benefit from increased tourist traffic.  On a trailing 12-month basis, the Fund's Payout Ratio was 89.9% as at March 31, 2024. DISTRIBUTIONS During the Period, the Fund declared distributions on the Units in the aggregate amount of $4.8 million or $0.226 per Unit.  During the first quarter of 2023, the Fund declared distributions on the Units in the aggregate amount of $4.4 million or $0.204 per Unit.  During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.1 million or $0.333 per Unit.  During the first quarter of 2023, the Fund paid distributions on the Units in the aggregate amount of $6.6 million or $0.306 per Unit.  The amount of distributions declared during the Period increased by $0.4 million or $0.022 per Unit due to the monthly distribution rate increasing from $0.102 per Unit to $0.107 per Unit commencing with the March 2023 distribution and increasing again from $0.107 per Unit to $0.113 per Unit commencing with the January 2024 distribution (collectively, the "2023-2024 Distribution Increases").  Distributions paid during the Period increased by $0.5 million or $0.027 per Unit due to the 2023-2024 Distribution Increases. On February 13, 2024, the trustees of the Fund declared a distribution for the period of January 1, 2024 to January 31, 2024 of $0.113 per Unit, which was paid on February 29, 2024 to Unitholders of record on February 21, 2024.  This was an increase of $0.006 per Unit, or 5.6%, from the previous monthly distribution rate of $0.107 per Unit.  On an annualized basis, the new monthly distribution rate equates to $1.356 per Unit compared to $1.284 per Unit for the previously monthly distribution rate. On May 9, 2024, the trustees of the Fund declared a distribution for the period of April 1, 2024 to April 30, 2024 of $0.113 per Unit, which will be payable on May 31, 2024 to Unitholders of record on May 21, 2024.  Including the April 2024 distribution, which will be paid on May 31, 2024, the Fund will have paid out total distributions of $432.4 million or $26.47 per Unit, which includes 256 monthly distributions and two special distributions. FINANCIAL SUMMARY The tables below set out selected information from the Fund's unaudited condensed consolidated interim financial statements together with other data and should be read in conjunction with the unaudited condensed consolidated interim financial statements and MD&A of the Fund for the three-month periods ended March 31, 2024 and March 31, 2023, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2023. For the periods ended March 31 Q1 2024 Q1 2023 (in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items) Number of restaurants in Royalty Pool 372 377 Franchise Sales reported by restaurants in the Royalty Pool 222,032 224,201 Royalty income 8,881 8,968 Distribution Income 2,919 2,949 Total revenue 11,800 11,917 Administrative expenses (436) (391) Interest expense on debt and financing fees (828) (850) Interest expense on Class B Unit liability (729) (632) Interest income 66 68 Profit before fair value gain (loss) and income taxes 9,873 10,112 Fair value gain (loss) on investment in BP Canada LP 2,128 (218) Fair value (loss) gain on Class B Unit liability (948) 97 Fair value gain (loss) on Swaps 188 (892) Current and deferred income tax expense (2,774) (2,430) Net and comprehensive income 8,467 6,669 Basic earnings per Unit 0.40 0.31 Diluted earnings per Unit 0.37 0.24 Distributable Cash / Distributions / Payout Ratio Cash flows generated from operating activities 9,100 9,220 BPI Class B Unit entitlement8 (1,072) (1,038) Interest paid on debt