Welcome to a S Atisfying Experience
THE KEG ROYALTIES INCOME FUND ANNUAL REPORT 2006 Welcome to a Satisfying Experience KR7010_AR_cover 3/1/07 1:24 PM Page 3 FINANCIAL HIGHLIGHTS Oct. 1 Oct. 1 Jan. 1 Jan. 1 to Dec. 31, to Dec. 31, to Dec. 31, to Dec. 31, ($000’s except per unit amounts) 2006 2005 2006 2005 Restaurants in the Royalty Pool 91 86 91 86 Gross sales reported by Keg restaurants in the Royalty Pool . $ 98,684 $ 85,217 $ 372,472 $ 325,717 Royalty income (1) . $ 4,038 $ 3,449 $ 15,097 $ 13,138 Partnership expenses (2) . (105) (89) (456) (441) Partnership earnings . 3,933 3,360 14,641 12,697 KRL’s interest (3) . (1,876) (1,756) (7,306) (6,965) Equity income (4) . 2,057 1,604 7,335 5,732 Interest income (5) . 1,083 1,079 4,289 4,281 Total income . 3,140 2,683 11,624 10,013 Interest and financing expenses (6) . (234) (192) (900) (711) Earnings for the period . $ 2,906 $ 2,491 $ 10,724 $ 9,302 Earnings per Fund unit (7) . $ .321 $ .296 $ 1.200 $ 1.124 Distributable cash per Fund unit (7)(8) . $ .322 $ .297 $ 1.203 $ 1.127 Distributions declared per Fund unit (7) . $ .382 $ .367 $ 1.139 $ 1.092 Notes: (1) The Fund, indirectly through the Partnership, earns royalty income equal to 4% of gross sales of Keg restaurants included in the Royalty Pool. (2) The Fund, indirectly through the Partnership, incurs administrative expenses and interest on an operating line of credit, to the extent utilized. (3) Represents the interest of KRL in the earnings of the Partnership from the Class A, entitled Class B and Class C Partnership units.
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