FINANCIAL HIGHLIGHTS
First Quarter Ended March 25, 2007
Draft: April 25, 2007 @ 8:06 PM
Safe Harbour Statement on Forward-Looking Information
Any forward-looking statements in this presentation are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from current estimates, expectations and projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Priszm and Priszm LP to execute a growth and development strategy, the reliance of Priszm and Priszm on key personnel, the terms and conditions of Priszm LP’s franchise arrangements, and the risks set out in Priszm’s filings with the Canadian securities regulatory authorities including the risks associated with the structure of income trusts. Priszm and Priszm LP assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
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First Quarter Financial Overview
(in thousands of dollars) Restaurant sales Cost of restaurant sales Restaurant operating expenses Rent Franchise royalty expense Depreciation and amortization Income from restaurant operations As a % of restaurant sales
Q1 2007 100,686 61,428 16,872 8,675 6,045 2,930 4,736 4.7%
Q1 2006 101,148 60,748 16,165 8,342 6,072 2,989 6,832 6.8%
Change (462) 680 707 333 (27) (59) (2,096) (2.1%)
% Change (0.5%) 1.1% 4.4% 4.0% (0.4%) (2.0%) (30.7%) (30.9%)
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Restaurant Sales
QUARTERLY RESTAURANT SALES ($ millions)
156.4 150.2
160 140 120 100 80 60 40 20 0 Q1 Q2 Q3
96.9 101.1 100.7 113.8 118.4 123.6 127.4
Q4
2005
2006
2007 4
Same Store Sales Growth
SAME STORE SALES GROWTH (% Change versus Q1 2006)
1%
0.2%
0%
Re s t of Canada Ontario Total
-1%
-1.5%
-2%
-3%
-4%
-3.8%
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Growth Through Multi-Branding
KFC / TACO BELL MULTI-BRANDED SAME STORE SALES GROWTH
10%
9.0% 7.9%
8%
6%
4%
2.1%
2%
1.6%
0% Q1 2004 Q1 2005 Q1 2006 Q1 2007
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Cost of Restaurant Sales
QUARTERLY COST OF RESTAURANT SALES ($ millions)
100
89.1 90.8
80
67.0 68.2 61.0 58.8 60.0
73.1 74.7
60
40
20
0 Q1 Q2 Q3 Q4
2005
2006
2007 7
EBITDA
EBITDA ($ millions)
15
12.1 10.9
13.7 12.1
13.3
10
9.9
5.2
5
3.5 3.0
0 Q1 Q2 Q3 Q4
2005
2006
2007 8
Distributable Cash
DISTRIBUTABLE CASH ($ millions)
15
11.5 10.1 10.0 9.1 8.3
11.1
10
2005 2006 2007
5
2.1
3.7
1.0
0 Q1 Q2 Q3 Q4
2005
2006
2007 9
Liquidity
(in millions, except where indicated)
March 25 2007 7.8
March 20 2006 16.6
Cash and Cash Equivalents Outstanding Debt Long-term debt
75.6
73.6
10
11