The Keg Royalties Income Fund
THE KEG ROYALTIES INCOME FUND THIRD QUARTER REPORT For the three and nine months ended September 30, 2020 TO OUR UNITHOLDERS On behalf of the Board of Trustees, I am pleased to present the results of The Keg Royalties Income Fund (the “Fund”) for the three and nine months ended September 30, 2020. RESULTS Royalty Pool sales reported by the 106 Keg restaurants in the Royalty Pool were $106,166,000 for the quarter, a decrease of $46,288,000 or 30.4% from the comparable quarter of the prior year. Year to date, Royalty Pool sales were $267,012,000, a decrease of $201,949,000 or 43.1%. The decrease in Royalty Pool sales was directly attributed to the temporary closure of all Keg restaurants starting in mid-March for approximately three months due to the Covid-19 pandemic. Royalty income decreased by $1,929,000 or 31.0% from $6,225,000 in the three months ended September 30, 2019 to $4,296,000 in the three months ended September 30, 2020. Year-to-date, royalty income decreased by $8,293,000 or 43.5% from $19,047,000 for the nine months ended September 30, 2019 to $10,754,000 for the nine months ended September 30, 2020. Distributable cash available to pay distributions to public unitholders decreased by $2,061,000 from $3,036,000 (26.7 cents/Fund unit) to $975,000 (8.6 cents/Fund unit) for the quarter and decreased by $4,057,000 from $10,110,000 (89.0 cents/Fund unit) to $6,053,000 (53.3 cents/Fund unit) year to date.
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