Diversified Royalty Corp. Announces July 2019 Cash Dividend, Q2 2019 Earnings Release Date and Closing of $10.3 Million Cred...
05 July 2019 - 7:00AM
Diversified Royalty Corp. (TSX: DIV and DIV.DB) (the
“Corporation” or “DIV”) is pleased to announce that its board of
directors has approved a cash dividend of $0.01854 per common share
for the period of July 1, 2019 to July 31, 2019, which is equal to
$0.2225 per common share on an annualized basis. The dividend will
be paid on July 31, 2019 to shareholders of record on July 15,
2019.
Q2 2019 Earnings Release Date
DIV will release earnings results for the three
and six months ended June 30, 2019 following the closing of regular
trading on the Toronto Stock Exchange on August 8, 2019.
MRM Royalties LP Credit Facility
On June 24, 2019, MRM Royalties Limited
Partnership (“MRM LP”) a subsidiary of DIV that owns the trademarks
and certain other intellectual property rights utilized by Mr.
Mikes Restaurants Corporation (“Mr. Mikes”) in its restaurant
business (collectively, the “Mr. Mikes Marks”) entered into a
credit agreement with a Canadian chartered bank for a senior credit
facility (the “Credit Facility”) that is comprised of a term loan
facility of $10.3 million and a revolving facility of $0.5 million
(which revolving facility is currently undrawn). The non-amortizing
Credit Facility has a term of 60 months and has a floating interest
rate equal to the Bankers’ Acceptance Rate plus 1.95%. The proceeds
from the term loan facility were used to partially refinance the
acquisition of the Mr. Mikes Marks, which closed on May 20, 2019
and was originally funded by cash on hand. The Credit Facility is
secured by the Mr. Mikes Marks and the royalties payable in
connection therewith and has debt covenants customary for this type
of credit facility.
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 Sutton, Mr. Lube, AIR
MILES® and Mr. Mikes trademarks in Canada. Sutton is among the
leading residential real estate brokerage franchisor businesses in
Canada with over 200 offices across Canada. Mr. Lube is the leading
quick lube service business in Canada with 181 locations across
Canada and over $235 million of annual system sales. AIR MILES® is
Canada’s largest coalition loyalty program with over 200 leading
brand-name sponsors; approximately two-thirds of Canadian
households actively participate in the AIR MILES® Program. Mr.
Mikes operates 42 casual steakhouse restaurants primarily in
smaller western Canadian communities with over $85 million of
annual system sales.
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.
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 “intends” and similar expressions are
intended to identify forward-looking information, although not all
forward-looking information contains these identifying words.
Specifically, forward-looking information in this news release
includes, but is not limited to, statements made in relation to:
the amount and timing of the July 2019 dividend to be paid to DIV’s
shareholders; the timing of the release of DIV’s earnings results
for the three and six months ended June 30, 2019; DIV’s ability to
pay a predictable and stable dividend 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 there can be
no assurance that: DIV will be able to make monthly dividend
payments to the holders of its common shares; or DIV will 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 11, 2019, which is available under DIV’s profile on
SEDAR at www.sedar.com.
In formulating the forward-looking information
contained herein, management has assumed that business and economic
conditions affecting DIV and its royalty partners will continue
substantially in the ordinary course, including without limitation
with respect to general industry conditions, general levels of
economic activity and regulations. These assumptions, although
considered reasonable by management at the time of preparation, may
prove to be incorrect.
All of the forward-looking statements made in
this news release are 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 they will have
the expected consequences to, or effects on, DIV. The
forward-looking information included in this news release is
presented 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.
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
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. (604) 235-3146
Greg Gutmanis, Chief Financial Officer and VP
Acquisitions Diversified Royalty Corp. (604) 235-3146
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