Toronto Stock Exchange: BPF.UN HIGHLIGHTS Franchise Sales1 of $236.8 million for the Period and $458.8 million YTD, representing an increase of 1.3% and 0.2%, respectively, versus the same periods one year ago. Same Restaurant Sales2 of 1.7% for the Period and 0.4% YTD. Cash flows generated from operating activities of $9.6 million for the Period and $18.7 million YTD, representing decreases of 1.5% and 1.4%, respectively, versus the same periods one year ago. Distributable Cash3 decreased 4.5% for the Period and 1.5% YTD, and Distributable Cash per Unit4 decreased 3.6% for the Period and 0.4% YTD. Payout Ratio5 of 96.2% for the Period, 96.5% YTD and 91.9% on a trailing 12-month basis.  Cash balance at the end of the Period was $5.2 million. On August 1, 2024, the trustees of the Fund declared a distribution for the period of July 1, 2024 to July 31, 2024 of $0.113 per Unit, which will be payable on August 30, 2024 to unitholders of the Fund ("Unitholders") of record on August 21, 2024. VANCOUVER, BC, Aug. 2, 2024 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the second quarter period from April 1, 2024 to June 30, 2024 (the "Period") and January 1, 2024 to June 30, 2024 ("YTD").  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 August 2, 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 September 2, 2024 by dialling 1-855-669-9658 or +1-604-674-8052 and entering the access code: 0814 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 and YTD. "Boston Pizza is pleased to announce positive second quarter sales despite high interest rates and inflation having created difficulties for the restaurant industry," stated Jordan Holm, BPI's President.  "Boston Pizza's ability to deliver solid financial performance in this economic environment speaks volumes about the dedication and resilience of our team.  We remain optimistic about our future prospects and confident in our capacity to continue providing exceptional experiences to our guests." PERIOD RESULTS SRS, a key driver of distribution growth for Unitholders, was 1.7% for the Period compared to 6.6% reported in the second quarter of 2023. SRS for the Period was principally due to menu price increases.  SRS was 0.4% YTD compared to 15.2% reported year-to-date in 2023.  SRS was principally due to menu price increases, partially offset by macroeconomic challenges faced by the full-service restaurant industry that negatively impacted guest traffic.  The COVID-19 restrictions that existed during the first half of 2022 were a significant factor in the positive SRS reported year-to-date in 2023.  Franchise Sales of Boston Pizza Restaurants in the Royalty Pool were $236.8 million for the Period compared to $233.7 million for the second quarter of 2023. The $3.1 million increase in Franchise Sales for the Period was primarily due to positive SRS.  Franchise Sales of Boston Pizza Restaurants in the Royalty Pool were $458.8 million YTD compared to $457.9 million year-to-date in 2023. The $0.9 million increase in Franchise Sales YTD was primarily due to positive SRS. The Fund's net and comprehensive income was $7.5 million for the Period compared to $12.8 million for the second quarter of 2023.  The $5.3 million decrease in the Fund's net and comprehensive income for the Period compared to the second quarter of 2023 was primarily due to a $6.0 million decrease in fair value gain, an increase in net interest expense of $0.2 million and an increase in administrative expenses of $0.1 million, partially offset by a $0.8 million decrease in deferred income tax expense and an increase in Royalty6 and Distribution Income7 of $0.2 million.  The Fund's net and comprehensive income was $15.9 million YTD compared to $19.5 million year-to-date in 2023.  The $3.6 million decrease in the Fund's net and comprehensive income YTD compared to the same period in 2023 was primarily due to a $3.6 million decrease in fair value gain, an increase in net interest expense of $0.3 million and an increase in administrative expenses of $0.1 million, partially offset by a $0.4 million decrease in deferred income tax expense. Cash generated from operating activities for the Period was $9.6 million compared to $9.8 million in the second quarter of 2023.  The decrease of $0.2 million was primarily due to a decrease in working capital of $0.3 million and an increase in administrative expenses of $0.1 million, partially offset by an increase in Royalty and Distribution Income of $0.2 million and a decrease in income taxes paid of $0.1 million.  Cash generated from operating activities YTD was $18.7 million compared to $19.0 million in the same period in 2023. The decrease of $0.3 million was primarily due to a decrease in working capital of $0.1 million, an increase in administrative expenses of $0.1 million and an increase in income taxes paid of $0.1 million. The Fund generated Distributable Cash of $7.5 million for the Period compared to $7.9 million for the second quarter of 2023.  The decrease in Distributable Cash of $0.4 million or 4.5% was primarily due to decreased cash flows generated from operating activities of $0.2 million, increased Class B Unit entitlement of $0.1 million and decreased income taxes paid of $0.1 million.  The Fund generated Distributable Cash of $14.8 million YTD compared to $15.0 million for the same period in 2023. The decrease in Distributable Cash of $0.2 million or 1.5% was primarily due to decreased cash flows generated from operating activities of $0.3 million and increased Class B Unit entitlement of $0.1 million, partially offset by lower interest paid on debt of $0.1 million and increased income taxes paid of $0.1 million. The Fund generated Distributable Cash per Unit of $0.352 for the Period and $0.696 YTD compared to $0.365 per Unit and $0.699 per Unit, respectively, for the same periods in 2023.  The decrease in Distributable Cash per Unit of $0.013 or 3.6% for the Period and $0.003 or 0.4% YTD and was primarily attributable to the decrease in Distributable Cash outlined above, partially offset by fewer Units outstanding compared to the same periods in 2023 due to the Fund's normal course issuer bid that was in effect from June 20, 2023 to June 19, 2024 ("NCIB"). The Fund's Payout Ratio for the Period was 96.2% compared to 88.0% in the second quarter of 2023.  The increase in the Fund's Payout Ratio for the Period was due to Distributable Cash decreasing by $0.4 million or 4.5% and distributions paid increasing by $0.3 million or 4.4%.  YTD the Fund's Payout Ratio was 96.5% compared to 89.7% year-to-date in 2023.  The increase in the Fund's Payout Ratio YTD was due to distributions paid increasing by $0.8 million or 6.0% and Distributable Cash decreasing by $0.2 million or 1.5%.  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 91.9% as at June 30, 2024. DISTRIBUTIONS During the Period, the Fund declared distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit.  During the second quarter of 2023, the Fund declared distributions on the Units in the aggregate amount of $6.9 million or $0.321 per Unit.  During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit.  During the second quarter of 2023, the Fund paid distributions on the Units in the aggregate amount of $6.9 million or $0.321 per Unit.  The amount of distributions declared and paid during the Period increased by $0.3 million or $0.018 per Unit due to the monthly distribution rate increasing from $0.107 per Unit to $0.113 per Unit commencing with the January 2024 distribution (the "2024 Distribution Increase"), partially offset by fewer Units being outstanding during the Period compared to the second quarter of 2023 due to the NCIB.  YTD, the Fund declared distributions on the Units in the aggregate amount of $12.0 million or $0.565 per Unit.  During the same period in 2023, the Fund declared distributions on the Units in the aggregate amount of $11.3 million or $0.525 per Unit.  YTD, the Fund paid distributions on the Units in the aggregate amount of $14.3 million or $0.672 per Unit.  During the same period in 2023, the Fund paid distributions on the Units in the aggregate amount of $13.5 million or $0.627 per Unit.  The amount of distributions declared YTD increased by $0.7 million or $0.040 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 (the "2023 Distribution Increase") and the 2024 Distribution Increase, partially offset by fewer Units being outstanding YTD compared to the same period in 2023 due to the NCIB.  The amount of distributions paid YTD increased by $0.8 million or $0.045 per Unit due to the 2023 Distribution Increase and the 2024 Distribution Increase, partially offset by fewer Units being outstanding YTD compared to the same period in 2023 due to the NCIB. On August 1, 2024, the trustees of the Fund declared a distribution for the period of July 1, 2024 to July 31, 2024 of $0.113 per Unit, which will be payable on August 30, 2024 to Unitholders of record on August 21, 2024.  Including the July 2024 distribution, which will be paid on August 30, 2024, the Fund will have paid out total distributions of $439.6 million or $26.81 per Unit, which includes 259 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 and six-month periods ended June 30, 2024 and June 30, 2023, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2023. For the periods ended June 30 Q2 2024 Q2 2023 YTD 2024 YTD 2023 (in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items) Number of restaurants in Royalty Pool 372 377 372 377 Franchise Sales reported by restaurants in the Royalty Pool 236,792 233,650 458,824 457,851 Royalty income 9,472 9,346 18,353 18,314 Distribution Income 3,111 3,071 6,030 6,020 Total revenue 12,583 12,417 24,383 24,334 Administrative expenses (497) (401) (933) (792) Interest expense on debt and financing fees (932) (843) (1,760) (1,693) Interest expense on Class B Unit liability (1,063) (982) (1,792) (1,614) Interest income 69 79 135 147 Profit before fair value gain (loss) and income taxes 10,160 10,270 20,033 20,382 Fair value gain on investment in BP Canada LP 1,473 8,511 3,601 8,293 Fair value loss on Class B Unit liability (656) (3,792) (1,604) (3,695) Fair value (loss) gain on Swaps (672) 1,373 (484) 481 Current and deferred income tax expense (2,841) (3,576) (5,615) (6,006) Net and comprehensive income 7,464 12,786 15,931 19,455 Basic earnings per Unit 0.35 0.59 0.75 0.90 Diluted earnings per Unit 0.33 0.59 0.74 0.90