Diversified Royalty Corp. (TSX: DIV and DIV.DB) (the
“Corporation” or “DIV”) announced today a clarification to the
relevant comparative period for certain SSSG1 (defined below)
figures for the Mr. Lube Canada Limited Partnership (“Mr. Lube”)
locations in the Mr. Lube royalty pool originally reported in DIV’s
management’s discussion and analysis (“MD&A”) for the three
months and year ended December 31, 2021 dated and filed on SEDAR at
www.sedar.com on March 10, 2022.
In the MD&A it was inadvertently stated that
Mr. Lube reported to DIV that Mr. Lube generated SSSG for the Mr.
Lube stores in the Mr. Lube royalty pool of 21.5% and 10.4% for the
three months and year ended December 31, 2021 compared to the three
months and year ended December 31, 2020, respectively, when such
SSSG figures actually reflected the comparative performance of the
Mr. Lube stores in the Mr. Lube royalty pool to the three months
and year ended December 31, 2019.
As previously separately stated in the MD&A,
Mr. Lube reported to DIV that Mr. Lube generated SSSG for the Mr.
Lube stores in the Mr. Lube royalty pool of 20.7% and 15.8% for the
three months and year ended December 31, 2021 compared to the three
months and year needed December 31, 2020, respectively.
The above figures were properly reported in
DIV’s news releases dated February 3, 2022 and March 10, 2022
without error. In addition, no other figures reported in the prior
MD&A were impacted by this inadvertent error.
About Diversified Royalty Corp.
DIV is a multi-royalty corporation, engaged in
the business of acquiring top-line royalties from well-managed
multi-location businesses and franchisors in North America. DIV’s
objective is to acquire predictable, growing royalty streams from a
diverse group of multi-location businesses and franchisors.
DIV currently owns the Mr. Lube, AIR MILES®,
Sutton, Mr. Mikes, Nurse Next Door and Oxford Learning Centres
trademarks. Mr. Lube is the leading quick lube service business in
Canada, with locations across Canada. AIR MILES® is Canada’s
largest coalition loyalty program with approximately two-thirds of
Canadian households actively participating in the AIR MILES®
Program. Sutton is among the leading residential real estate
brokerage franchisor businesses in Canada. Mr. Mikes currently
operates casual steakhouse restaurants primarily in western
Canadian communities. Nurse Next Door is one of North America’s
fastest growing home care providers with locations across Canada
and the United States as well as in Australia. Oxford Learning
Centres is one of Canada’s leading franchised supplemental
education services in Canada and the United States.
DIV expects to increase cash flow per share by
making accretive royalty purchases and through the growth of
purchased royalties. DIV expects to pay a predictable and stable
dividend to shareholders and increase the dividend as cash flow per
share increases allow.
1 SSSG is a supplementary financial measure and
as such, does not have a standardized meaning under IFRS. For
additional information, refer to “Non-IFRS Financial Measures” in
this news release.
Forward-Looking Statements
Certain statements contained in this news
release may constitute “forward-looking information” within the
meaning of applicable securities laws that involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking information. The use
of any of the words “anticipate”, “continue”, “estimate”, “expect”,
“intend”, “may”, “will”, ”project”, “should”, “believe”,
“confident”, “plan” and “intend” and similar expressions are
intended to identify forward-looking information, although not all
forward-looking information contain these identifying words.
Specifically, forward-looking information in this news release
includes, but is not limited to, statements made in relation to:
DIV’s intention to pay monthly dividends to shareholders; and DIV’s
corporate objectives. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events, performance, or achievements of DIV to differ
materially from those anticipated or implied by such
forward-looking information. DIV believes that the expectations
reflected in the forward-looking information included in this news
release are reasonable but no assurance can be given that these
expectations will prove to be correct. In particular, risks and
uncertainties include: DIV may not be able to make monthly dividend
payments to the holders of its common shares; dividends are not
guaranteed and may be reduced, suspended or terminated at any time;
or DIV may not achieve any of its corporate objectives. Given these
uncertainties, readers are cautioned that forward-looking
information included in this news release are not guarantees of
future performance, and such forward-looking information should not
be unduly relied upon. More information about the risks and
uncertainties affecting DIV’s business and the businesses of its
royalty partners can be found in the “Risk Factors” section of its
Annual Information Form dated March 10, 2022 and in DIV’s amended
management’s discussion and analysis for the three months and year
ended December 31, 2021, copies of which are available under DIV’s
profile on SEDAR at www.sedar.com.
In formulating the forward-looking information
contained herein, management has assumed that DIV will generate
sufficient cash flows from its royalties to service its debt and
pay dividends to shareholders; and lenders will provide any
necessary waivers required in order to allow DIV to continue to pay
dividends. These assumptions, although considered reasonable by
management at the time of preparation, may prove to be
incorrect.
All of the forward-looking information in this
news release is qualified by these cautionary statements and other
cautionary statements or factors contained herein, and there can be
no assurance that the actual results or developments will be
realized or, even if substantially realized, that it will have the
expected consequences to, or effects on, DIV. The forward-looking
information in this news release is made as of the date of this
news release and DIV assumes no obligation to publicly update or
revise such information to reflect new events or circumstances,
except as may be required by applicable law.
Non-IFRS Financial Measures
“Same store sales growth” or “SSSG” is a
supplementary financial measure and does not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similar measures presented by other issuers. For further details,
refer to the subsection entitled “Supplementary Financial Measures”
under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios
and Supplementary Financial Measures” in DIV’s amended management’s
discussion and analysis for the three months and year ended
December 31, 2021, a copy of which is available on SEDAR at
www.sedar.com.
Third Party Information
This news release includes information obtained
from third party company filings and reports and other publicly
available sources as well as financial statements and other reports
provided to DIV by its royalty partners. Although DIV believes
these sources to be generally reliable, such information cannot be
verified with complete certainty. Accordingly, the accuracy and
completeness of this information is not guaranteed. DIV has not
independently verified any of the information from third party
sources referred to in this news release nor ascertained the
underlying assumptions relied upon by such sources.
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
The information in this news release should be
read in conjunction with DIV’s consolidated financial statements
and amended management’s discussion and analysis for the three and
year ended December 31, 2021, which are available on SEDAR at
www.sedar.com.
Additional information relating to the
Corporation and other public filings, is available on SEDAR at
www.sedar.com.
Contact:Sean Morrison, President and Chief
Executive OfficerDiversified Royalty Corp. (236) 521-8470
Greg Gutmanis, Chief Financial Officer and VP
Acquisitions Diversified Royalty Corp. (236) 521-8471
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