Prime Restaurants Royalty Income Fund
 | Webcast Prime Restaurants Royalty Income Fund Third Quarter 2009 Results & Conference CallThursday, November 12, 2009, 10:00 AM ET
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Prime Restaurants Royalty Income Fund is a limited purpose trust established under the laws of the Province of Ontario. Through its subsidiary, PRC Trademarks Inc., Prime Restaurants Royalty Income Fund is entitled to receive royalties of 3.25% of the gross revenue from pooled restaurants under the terms of a 99 year licence agreement with Prime Restaurants of Canada Inc.
Prime Restaurants of Canada Inc. pays the royalties to PRC Trademarks Inc. in consideration for a non-exclusive license to use certain trade-marks in Canada (other than the Northwest Territories) for a term of 99 years from the closing of the offering (July 22, 2002).
Through PRC Trademarks Inc., the Fund is also entitled to receive 3.25% of all gross revenue generated from new restaurants opened within the existing concepts, and will have the option to buy, at a price to be negotiated with Prime Restaurants of Canada Inc., the trade-marks and associated rights relating to new concepts developed or purchased by Prime Restaurants of Canada Inc.
There are currently 161 pooled restaurants contributing to the sales on which the royalty is based. The number of pooled restaurants will be reviewed annually and adjusted as necessary every January 1.
The Fund pays distributions to Unitholders monthly, and the distributions consist of net cash receipts, less estimated amounts required for payment of expenses of the Fund, and cash redemptions of trust units.
Prime Restaurants of Canada Inc.
Prime Restaurants of Canada Inc. ("Prime") owns, operates, and franchises some of Canada's leading chains of casual dining restaurants and premium pubs.
The founders of Prime, pioneers since 1979 in the Canadian casual dining industry, opened the first Casey's restaurant in 1980. Today, Prime's portfolio includes: East Side Mario's; Casey's; a family of authentic pubs operating under the trade-marks Fionn MacCool's, D'Arcy McGee's, Paddy Flaherty's, Tir nan Óg and Slàinte; and Belgian-style brasseries operating under the trade-mark Bier Markt. Prime also operates, directly and franchises an Italian restaurant concept under the name Pat and Mario's.
Prime has a number of competitive strengths that have helped the company maintain a leadership position in the Canadian casual dining industry. The operation of multiple brands mitigates risk through diversification, allows increased sector penetration, increased local market penetration, and greater flexibility. In addition, its "just right" pricing strategy attracts guests in both good and bad economic times. Also, most of its restaurants are operated by independent franchisees, using an attractive franchise program controlled by experienced management.
Prime has achieved significant growth, expanding the number of restaurants operated from 88 in 1997 to 161 at the end of 2008. Prime's revenues have grown annually as a result of the larger restaurant base. The company expects to continue to grow through franchising, multi-brand development, and management and operational excellence.
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As of February 8, 2010 Minimum 20 minute delay.
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Prime Restaurants Royalty Income Fund (905) 568-0000Registrar and Transfer Agent: Inquiries regarding change of address, registered holdings, transfers and duplicate mailings should be directed to: Computershare Trust Company of Canada 100 University Avenue 9th Floor Toronto, Ontario M5J 2Y1 Auditors: PriceWaterhouseCoopers LLP Toronto, Ontario Legal Counsel: Fraser Milner Casgrain LLP Calgary, Alberta Stock Exchange Listing: Toronto Stock Exchange Symbol: EAT.UN Investor Inquiries: John A. Rothschild, Chairman and CEO, Prime Restaurants of Canada jrothschild@primerestaurants.com Steven B. Sharpe, Chairman ssharpe@primerestaurants.com |
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