Liquor Stores Income Fund
TSX : LIQ.UN

Liquor Stores Income Fund

November 11, 2005 09:00 ET

Liquor Stores Income Fund Reports 2005 Third Quarter Earnings

EDMONTON, ALBERTA--(CCNMatthews - Nov. 10, 2005) - Liquor Stores Income Fund (the "Fund") (TXS:LIQ.UN) announced its third quarter results for 2005. The Fund reported earnings before non-controlling interest of $3.0 million or $0.2871 per (weighted average) unit outstanding for the quarter ended September 30, 2005 and net earnings of $1.8 million or $0.2874 per (weighted average) unit outstanding for the quarter ended September 30, 2005. Distributable cash flow for the quarter was $0.2874 per unit. For the fourth quarter of 2004 and the first three quarters of 2005 combined, distributable cash was $1.0882 and distributions declared were $1.0393 per unit. Distributions of $0.2687 per unit were declared during the third quarter. Sales for the period were $41.4 million, including stores which had not been open for a full twelve months that contributed $12.9 million to sales.

Store gross margin percentages were up 1.44% when compared to the same quarter in 2004. Cash flow from same stores showed a significant improvement for the third consecutive quarter when compared to the same quarter in the previous year.

Irv Kipnes, President and Chief Executive Officer of the Fund stated, "We are pleased with the results for the third quarter of 2005. Since June 30, 2005, we have acquired 2 stores in Calgary, 2 stores in Vancouver and 1 additional store in Fort McMurray. Prior to December 31, 2005, we expect to complete the acquisition of 4 additional stores in Calgary, at which point we will be operating 74 stores. This represents a 48% increase in the number of stores operated by the Fund since our initial public offering. The Fund is on track for further growth through both acquisition and new store development and has both the manpower and the financial resources to continue to execute our growth strategy."

About Liquor Stores Income Fund

The Fund is a publicly traded Canadian Income fund that participates in the retail liquor industry in Alberta and British Columbia through its 59.80% interest in Liquor Stores Limited Partnership ("Liquor Stores LP"). Liquor Stores Income Fund is Canada's only publicly traded entity with interests exclusively in the retailing of liquor products.

The Fund is the largest liquor retailer in Alberta by number of stores. The Fund currently operates 70 stores, 5 of which are located in British Columbia. In 2005, the Fund has acquired or developed 16 stores in Alberta, and 4 in British Columbia.

The Fund Units trade on the Toronto Stock Exchange under the symbol LIQ.UN.

Additional information about Liquor Stores Income Fund is available at www.sedar.com and the Fund's website at www.liquorstoresincomefund.ca.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This management's discussion and analysis should be read in conjunction with the unaudited consolidated interim financial statements and accompanying notes (the "Interim Financial Statements") of Liquor Stores Income Fund (the "Fund") for the three and nine month periods ended September 30, 2005 and the audited consolidated financial statements and accompanying notes of the Fund for the initial period from August 10, 2004 to December 31, 2004, which include business operations from September 28, 2004 to December 31, 2004. Results are reported in Canadian dollars unless otherwise stated and have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). Certain dollar amounts have been rounded to the nearest hundred thousand dollars or thousand dollars. References to notes are to the notes to the Interim Financial Statements of the Fund unless otherwise stated.

This Management Discussion and Analysis is dated November 10, 2005.

OVERVIEW OF THE FUND

Issuance of Fund Units and Acquisition

The Fund is an unincorporated open ended, limited purpose trust established under the laws of the Province of Alberta pursuant to a Declaration of Trust dated August 10, 2004.

The Fund commenced business operations on September 28, 2004, when it completed an initial public offering (the "IPO") of 4,300,000 trust units ("Fund Units"), at a price of $10 per unit, for aggregate gross proceeds of $43,000,000. The costs of issuance of the units were $5,185,828 resulting in an addition to Unitholders Equity of $37,814,172. Concurrent with the closing of the IPO, the Fund used the proceeds from the IPO to acquire a 50.6% indirect interest in Liquor Stores Limited Partnership ("Liquor Stores LP") and Liquor Stores LP used such net proceeds and funds from the new credit facilities to acquire the net assets (the "Acquired Business") of The Liquor Depot Corporation ("Liquor Depot") and Liquor World Group Inc. ("Liquor World") and other wholly owned subsidiaries or companies that were under common control (collectively, the "Vendors"). The capital contributed by the Vendors is represented by the Subordinated LP Units and Exchangeable LP Units more fully described in Note 13 of the December 31, 2004 audited consolidated Financial Statements of the Fund.

On March 2, 2005, the Fund completed a private placement of 1,830,000 Fund Units at $16.40 per unit for gross proceeds of $30,012,000 (note 3) and increased its interest in Liquor Stores LP to 59.34%. The cost of the new issue was $1,341,536, and the net proceeds of $28,670,464 were used to repay bank indebtedness, to acquire 14 retail liquor store businesses and for general corporate purposes. The purchase price of the assets of the 14 stores was allocated as follows and is subject to adjustments as indicated in note 4:



Property and equipment $ 3,195,665
Goodwill 8,307,423
---------------
11,503,088

Working capital $ 3,696,245
---------------
Cash Paid $ 15,199,333
---------------
---------------


During the three month period ended June 30, 2005 two additional stores were developed in British Columbia for an aggregate cost of approximately $847,000 and subsequent to September 30, 2005, the Fund completed the acquisitions of four additional retail liquor stores businesses for $9,048,000 as described in Note 13 and as a result the Fund currently operates seventy retail liquor stores.

The Fund Units trade on the Toronto Stock Exchange under the symbol LIQ.UN.

Non-GAAP Measures

References to "EBITDA" are to earnings before interest, income taxes, depreciation and amortization and references to ''distributable cash'' are to cash available for distribution to Unitholders in accordance with the distribution policies of the Fund. Management believes that, in addition to income or loss, EBITDA and cash available for distribution before debt service, changes in working capital, capital expenditures and income taxes are a useful supplemental measures of performance. Specifically, management believes that EBITDA is the appropriate measure from which to make adjustments to determine the distributable cash of the Fund. Distributable cash of the Fund is a measure generally used by Canadian open-ended trusts as an indicator of financial performance. As one of the factors that may be considered relevant by prospective investors is the cash distributed by the Fund relative to the price of the Fund Units, management believes that distributable cash of the Fund is a useful supplemental measure that may assist prospective investors in assessing an investment in the Fund.

EBITDA and distributable cash are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that EBITDA and distributable cash should not replace net income or loss (as determined in accordance with GAAP) as an indicator of the Fund's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Fund's methods of calculating EBITDA and distributable cash may differ from the methods used by other issuers. Therefore, the Fund's EBITDA and distributable cash may not be comparable to similar measures presented by other issuers.

Earnings from operations for purposes of disclosure under "Third Quarter Operating Results" has been calculated as described below. In the case of the Fund, earnings from operations have been derived by adding interest expense, income tax expense, amortization of property and equipment, intangibles and pre-opening costs and non-controlling interest to net earnings for the period. In the case of Liquor Depot and Liquor World, earnings from operations have been derived by adding amortization expense, charitable donations, management salaries to directors, officers and shareholders, interest expense, income tax expense and non-controlling interest to the net income for the period and subtracting from the resulting total income taxes recovered and income arising from subsidiaries accounted for on an equity basis.

Earnings from operations as so calculated is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Investors are cautioned that earnings from operations as so calculated should not replace net income or loss (as determined in accordance with GAAP) as an indicator of the Fund's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Fund's method of calculating earnings from operations as so calculated may differ from the methods used by other issuers. Therefore, the Fund's earnings from operations as so calculated may not be comparable to similar measures presented by other issuers.

Basis of Management's Discussion and Analysis ("MD & A")

To provide more meaningful information, the following MD & A refers to the third quarter and year to date operating results of the Fund compared to the results for the Vendors for similar operating accounts combined for the third quarter 2004 and year to date for 2004 (See "Non-GAAP Measures" above). It is management's belief that charitable donations and management salaries and bonuses incurred by Liquor Depot and Liquor World are not relevant when compared to the Fund's operations because of differences between the structure and policies of the Fund and those of the Vendors.

The Business of the Fund

The Fund is the largest liquor store retailer in Alberta by number of stores and the second largest by revenue. The Fund currently operates 70 stores, 52 of which are located in or near the urban centres of Calgary and Edmonton, and five of which are located in British Columbia.

The Province of Alberta is the only province in Canada that has a fully privatized retail distribution system for adult beverages. The Province of British Columbia's model for liquor distribution is a blend of private and government operated retail outlets.

Distributable Cash and Cash Distributions

The Fund's policy is to distribute annually to unitholders available cash from operations after cash required for capital expenditures, working capital reserve, growth capital reserve and other reserves considered advisable by the Trustees of the Fund. The policy allows the Fund to make stable monthly distributions to its Unitholders based on its estimate of distributable cash for the year. The Fund pays cash distributions on or about the 15th of each month to Unitholders of record on the last business day of the previous month.



The following table summarizes the distributions for the nine month
period ended September 30, 2005:

Fund Units

Record date Payment date Declared Paid
$ $

January 31, 2005 February 15, 2005 358,190 358,190
February 28, 2005 March 15, 2005 358,190 358,190
March 31, 2005 April 15, 2005 510,629 510,629
April 29, 2005 May 16, 2005 510,629 510,629
May 31, 2005 June 15, 2005 549,126 549,126
June 30, 2005 July 15, 2005 549,125 549,125
July 29, 2005 August 15, 2005 549,126 549,126
August 31, 2005 September 15, 2005 549,126 549,126
September 30, 2005 October 17, 2005 552,425 -
-------------------------

4,486,566 3,934,141
-------------------------
-------------------------



Exchangeable LP Units
and Subordinated LP
Units
-------------------------
Record date Payment date Declared Paid
$ $

January 31, 2005 February 15, 2005 172,848 172,848
February 28, 2005 March 15, 2005 172,847 172,847
March 31, 2005 April 15, 2005 703,885 703,885
April 29, 2005 May 16, 2005 172,848 172,848
May 31, 2005 June 15, 2005 185,878 185,878
June 30, 2005 July 15, 2005 743,606 743,606
July 29, 2005 August 15, 2005 185,878 185,878
August 31, 2005 September 15, 2005 185,878 185,878
September 30, 2005 October 17, 2005 753,652 -
-------------------------
3,277,320 2,523,668
-------------------------
-------------------------


Total
-------------------------
Record date Payment date Declared Paid
$ $

January 31, 2005 February 15, 2005 531,038 531,038
February 28, 2005 March 15, 2005 531,037 531,037
March 31, 2005 April 15, 2005 1,214,514 1,214,514
April 29, 2005 May 16, 2005 683,477 683,477
May 31, 2005 June 15, 2005 735,004 735,004
June 30, 2005 July 15, 2005 1,292,731 1,292,731
July 29, 2005 August 15, 2005 735,004 735,004
August 31, 2005 September 15, 2005 735,004 735,004
September 30, 2005 October 17, 2005 1,306,077 -
-------------------------
7,763,886 6,457,809
-------------------------
-------------------------


Distributions are paid on Fund Units, Liquor Stores LP Exchangeable LP
Units and Liquor Stores LP Subordinated LP Units. As of September 30,
2005 the following number of units were outstanding:

Fund Units (note 8) 6,166,824
Liquor Stores LP Exchangeable LP Units (note 9) 2,038,176
Liquor Stores LP Subordinated LP Units (note 9) 2,125,000
-------------
10,330,000
-------------
-------------


During the nine month period ended September 30, 2005, the Fund declared distributions of $0.78110 per Fund Unit to Unitholders. The distributions in the third quarter of 2005 were funded from cash flow generated from operations. The Fund's IPO prospectus contemplated monthly distributions of $0.0833 per unit or $1.00 per year in aggregate. The Fund increased its annual distribution rate by $0.075 per unit from $1.00 to $1.075 ($0.08958 per month), commencing with the distribution paid on June 15, 2005 to Unitholders of record on May 31, 2005.

The Fund reviews its distribution policy on a periodic basis.

Management estimates that the portion of distributions that will be tax-deferred to Unitholders in calendar 2005 is approximately 25% to 30%.

Distributable cash per unit (Fund Units, Exchangeable and Subordinated LP Units)

The following table summarizes the distributable cash of the Fund for 2005 and from the inception of the Fund on August 10, 2004, which includes the results of operations from September 28, 2004 to September 30, 2005. The Fund views distributable cash as an operating performance measure. The Fund's purchases of property and equipment required to maintain its existing stores are minimal and the Fund distributes a significant portion of its earnings on an annual basis, once adjusted for non-cash items. Therefore the Fund has selected net earnings as the basis for the calculation of distributable cash.



July 1, Jan 1, Sept 28, From
2005 to 2005 to 2004 to Inception
Sept 30, Sept 30, Dec. 31, to Sept 30,
2005 2005 2004 2005

Net earnings for
the period $1,763,798 $3,896,210 $1,495,705 $ 5,391,915
Add: Interest
expense 168,375 520,946 257,538 778,484
Add: Amortization
of property &
equipment 325,510 883,294 249,728 1,133,022
Add: Amortization
of intangible assets 21,450 64,350 22,534 86,884
Add: Amortization of
pre-opening costs 28,045 45,353 - 0 - 45,353
Add: Future income
taxes 13,300 23,100 6,000 29,100
-----------------------------------------------

EBITDA 2,320,478 5,433,253 2,031,505 7,464,758

Add: Non-controlling
interest 1,202,077 2,739,683 1,460,921 4,200,604
Add: Proceeds on
disposal of property
and equipment - - 1,350 1,350
Less: Interest paid (142,664) (390,224) (135,321) (525,545)
Less: Purchase of
non-growth property
and equipment
(see table below) (411,123) (628,805) (115,786) (744,591)
-----------------------------------------------

Distributable cash $2,968,768 $7,153,907 $3,242,669 $10,396,576
-----------------------------------------------
-----------------------------------------------

Weighted average
units outstanding
during the period 10,330,000 9,921,099 8,500,000 9,554,239
Distributable Cash
per Unit (weighted
average (1)) $ 0.287 $ 0.721 $ 0.381 $ 1.088

Distributions declared $2,776,085 $7,763,886 $2,194,709 $ 9,958,595
Distributions declared
per unit $ 0.26874 $ 0.78110 $ 0.25820 $ 1.03930

Distributable cash
less distributions
declared as of
September 30, 2005 $ 437,981
Distributable cash
less distributions
per Unit (weighted
average (1)) $ 0.0458

Basic earnings per Unit $ 0.29 $ 0.68 $ 0.35
Diluted earnings
per unit $ 0.29 $ 0.67 $ 0.35

(1) Weighted average number of units x number of days outstanding /
number of days in the period.


For the quarter ended September 30, 2005 the Fund had distributable cash of $0.285 per weighted average number of units outstanding during the period. Basic and diluted earnings were $0.29 per unit for the quarter ended September 30, 2005.

The following table provides a reconciliation of the purchase of property and equipment as reported on the Statement of Cash Flows to the purchase of property and equipment as calculated in the distributable cash calculation above:



July 1, Jan 1, Sept 28, From
2005 to 2005 to 2004 to Inception
Sept 30, Sept 30, Dec. 31, to Sept 30,
2005 2005 2004 2005

Purchase of property
and equipment
from the Statement
of Cash Flows $ 722,757 $1,707,943 $ 115,786 $ 1,823,729

Less: Amounts relating
to developed and
acquired stores (311,634) (1,079,138) - (1,079,138)
-----------------------------------------------

Purchase of non-growth
property and equipment
per above calculation
of distributable cash $ 411,123 $ 628,805 $ 115,786 $ 744,591
-----------------------------------------------
-----------------------------------------------


Amounts relating to developed and acquired stores are considered growth expenditures. Growth expenditures are discretionary and represent cash outlays intended to provide additional future cash flows. Growth expenditures will provide benefit in future periods and they have been excluded from the calculation of distributable cash.

Additional details on the purchases of the components of the non-growth property and equipment are as follows:



July 1, Jan 1, Sept 28, From
2005 to 2005 to 2004 to Inception
Sept 30, Sept 30, Dec. 31, to Sept 30,
2005 2005 2004 2005
Leasehold improvements
and fixtures $ 183,786 $ 302,436 $ 17,268 $ 319,704
Equipment 149,972 234,147 1,155 235,302
Vehicles 77,365 92,222 97,363 189,585
-----------------------------------------------
Total property
and equipment $ 411,123 $ 628,805 $ 115,786 $ 744,591
-----------------------------------------------
-----------------------------------------------


Included in the purchases of non-growth property and equipment for the third quarter 2005; are non-reoccurring annual purchases of $292,281. Included in this amount are expenditures of is $95,333 in leasehold improvements and fixtures relating to the installation of new digital camera systems, $150,595 relating to the upgrading of the computer system in head office and a $46,353 delivery truck. The installation of the new head office computer system has resulted in significant improvements in management reporting and staffing requirements.

Repairs and maintenance expenditures are expensed as incurred and have been deducted from earnings for the period. Repairs and maintenance expense incurred is as follows:



July 1, Jan 1, Sept 28, From
2005 to 2005 to 2004 to Inception
Sept 30, Sept 30, Dec. 31, to Sept 30,
2005 2005 2004 2005

Repairs and maintenance $ 54,045 $ 159,457 $ 35,512 $ 194,969
-----------------------------------------------
-----------------------------------------------

Unitholders' Equity and
Non-controlling Interest

Fund Units outstanding as of September 30, 2005 is as follows:

Units Issue Unitholders' Non-controlling
Costs Equity Interest

Fund Units 6,166,824 $6,527,364 $66,852,876 -
Special Voting
Units 4,163,176 - - -
Non-controlling
Interest 4,163,176 - - $41,497,839


On March 2, 2005, the Fund issued 1,830,000 Fund Units at $16.40 per Fund Unit for gross proceeds of $30,012,000. The gross proceeds less issuance costs of $1,341,536 are recorded as unitholder's equity (note 6). During the three months ended September 2005, 36,824 Liquor Stores LP Exchangeable LP Units were exchanged for Fund Units resulting in an increase in Unitholders' Equity of $368,240.

SELECTED FINANCIAL INFORMATION AND RESULTS FROM OPERATIONS

Third Quarter Operating Results

The following table shows the unaudited results of the Fund from July 1, 2005 to September 30, 2005 as well as the year to date results, and the combined unaudited results for Liquor Depot and Liquor World (the "Vendors") for the period from July 1, 2004 to September 27, 2004 and the Fund for the period from September 28, 2004 to September 30, 2004, as well as the 2004 year to date results. Combined sales, cost of sales and administrative and operating expenses of Liquor Depot and Liquor World for the period from July 1, 2004 to September 30, 2004 as well as the year to date results, have been derived from the unaudited combined consolidated financial statements of Liquor World and the unaudited consolidated financial statements of Liquor Depot. The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given period.



Fund Vendors/Fund Fund Vendors/Fund
3rd Quarter 3rd Quarter Year to Date Year to Date
2005 2004 2005 2004

Sales $41,434,078 $32,085,540 $106,758,276 $85,602,391
Cost of Sales 32,168,167 25,372,604 83,025,337 67,738,446
--------------------------------------------------------
Gross Margin 9,265,911 6,712,936 23,732,939 17,863,945

Administrative,
operating,
acquisition
and store
development
expenses 5,756,656 5,140,814 15,583,103 12,899,441
Less: income
tax expense
included in
operating
expense 13,300 - 23,100 -
--------------------------------------------------------
5,743,356 5,140,814 15,560,003 12,899,441
--------------------------------------------------------
Earnings from
operations,
as defined(a) $ 3,522,555 $ 1,572,122 $ 8,172,936 $ 4,964,504
--------------------------------------------------------
--------------------------------------------------------

(a) Earnings from operations have been calculated as described under "
Non-GAAP Measures" above.


In order to provide more meaningful information to the reader, the following Management's Discussion and Analysis will compare the results of the Fund's operations for the third quarter of 2005 to the combined Vendors' and Fund's third quarter results for 2004 as described above.

Third Quarter Sales

Third quarter sales increased to $41.4 million from $32.1 million when compared to the same period in 2004, although same store sales (stores open for a full year when compared to another quarter) declined from $30.2 million to $29.4 million. Management believes that factors that contributed to the decline in same store sales include the continued effect of a variety of items such as the implementation of a more stringent discount and credit policy, cancellation of a third party customer affinity program and increased competition at some locations.

For the fourth consecutive quarter, same stores are being operated more profitably and are contributing more to distributable cash. Over the last nine months same stores have contributed an additional $1 million to gross margin as indicated by the table below.



Same Stores Fund Total Vendors Total Difference
Q4 2004 & Q4 2003 &
Q1-Q3 2005 Q1-Q3 2004

Sales $110,030,567 $114,015,949 $(3,985,382)
COGS 85,299,895 90,325,929 (5,026,034)
------------------------------------------------------------------------
Margin $ 24,730,672 $ 23,690,020 $ 1,040,652
------------------------------------------------------------------------
------------------------------------------------------------------------


Third Quarter Cost of Sales and Gross Margin

Gross margin increased by approximately $2.5 million from $6.7 million to $9.3 million or 37%, when compared to the same period in 2004. The gross margin increase was the result of a 29% increase in sales and an increase in gross margin percentage of approximately 1.44%. Factors that contributed to the increase in gross margin included a more stringent credit and discount policy, elimination of a third party affinity program and the harmonization of retail pricing.

Third quarter cost of sales increased from approximately $25.4 million to $32.2 million, when compared to the same quarter in 2004.

New stores and stores that were open for less than 12 months contributed an additional $2.8 million to gross margin on $12.9 million of sales in the third quarter of 2005.

Combined Administrative, Operating and Acquisition and Store Development Expense

Administrative, Operating, and Acquisition and Store Development expenses increased by approximately $0.7 million from approximately $5.1 million to $5.8 million when compared to the same period in 2004.

Administrative expenses increased in the third quarter of 2005 due to an increase in the number of stores operated by the Fund to 66 when compared to the same quarter in 2004 where the Vendors operated 45 stores, public company costs including non-recurring costs relating to acquisitions, bonuses being accrued in 2005 that were not accrued in the comparable period in 2004, increased insurance costs and increases in other operating costs relating to additional stores. Payroll costs also increased as a consequence of annual salary increases and the addition of seven new permanent employee positions in the first quarter of 2005 to support the additional stores and the Fund's growth plans.

Earnings from Operations (as defined)

Earnings from operations (as defined under Non-GAAP Measures above) increased by approximately $1.9 million from $1.6 million to $3.5 million or 118.75%, when compared to the same period in 2004. The increase in earnings from operations resulted from higher gross margin, the addition of new stores, and the savings achieved through synergies on combination of Liquor World and Liquor Depot.



Financial Position and Operating Results

Sept 30, June 30, March 31, December 31,
2005 2005 2005 2004
(3rd Quarter) (2nd Quarter) (1st quarter) (includes
results of
operations
from Sept
28, 2004)
Cash and cash
equivalents $ 171,892 $ 265,785 $10,198,704 $ 178,672

Total assets 127,114,352 118,425,028 126,039,848 102,080,855

Bank
indebtedness 8,993,000 0 7,444,907 11,397,240

Total current
liabilities 11,627,892 2,996,258 10,669,395 14,106,849

Long-term debt 7,358,800 7,500,000 7,481,439 7,397,917

Unitholders'
equity 66,852,876 66,484,636 66,493,494 37,814,172

Non-controlling
interest 41,470,603 41,762,174 41,741,729 42,376,840

------------------------------------------------------------------------

Sales $41,434,078 $38,505,474 $26,818,724 $35,542,909
Gross Margin 9,265,911 8,546,715 5,920,314 7,971,151
Earnings before
non-controlling
interest 2,965,875 2,759,826 910,192 2,956,626
Net earnings
for the period 1,763,798 1,637,049 495,363 1,495,705
Basic earnings
per unit $ 0.29 $ 0.27 $ 0.10 $ 0.35
Diluted
earnings
per unit $ 0.29 $ 0.27 $ 0.10 $ 0.35
Distributable
cash per Unit $ 0.29 $ 0.26 $ 0.14 $ 0.38
------------------------------------------------------------------------


The third quarter of 2005 showed an improvement over the previous two quarters. The first and second quarters are historically the industry's weakest in terms of sales, earnings and EBITDA and the Fund's results to date follows this pattern. Historically sales, earnings and EBITDA improve each quarter throughout a year with the fourth quarter producing the strongest results and the first and the second quarters being the weakest quarters. Results from stores open at the beginning of the year continue to be slightly better than managements' expectations.

Acquisitions primarily occurred in March, with one acquisition in July, and continue to have a positive impact on cash flow. Two new locations opened in May in British Columbia have begun to have a positive impact on contribution margin. These results are expected for new locations, as they typically require a few months to become established. Subsequent to September 30, 2005, the Fund acquired an additional four retail liquor locations as described in Note 13.

LIQUIDITY AND CAPITAL RESOURCES

Distributable Cash and Cash Distributions

The Fund's policy is to make stable monthly distributions to its Unitholders based on its estimate of distributable cash for the year. It has a policy to pay cash distributions on or about the 15th of each month to Unitholders of record on the last business day of the previous month.

On May 16, 2004, the Fund increased its annual distribution by $0.075 per unit from $1.00 to $1.075 ($0.08958 per month) commencing with the distribution that was paid to unitholders of record on May 31, 2005.

Credit Facilities

The Fund has a $24 million demand operating loan, a $12.5 million committed non-revolving capital loan and a $10 million committed non-revolving acquisition loan with a Canadian chartered bank. The $10 million committed non-revolving acquisition loan was unutilized as of September 30, 2005.

As of September 30, 2005, total indebtedness under all credit facilities has decreased to $16.4 million from $18.8 million as of December 31, 2004, and cash and cash equivalents have decreased to $172,000 from $179,000 as of December 31, 2004.

Capital Expenditures

Between February 18, 2005 and July 12, 2005, the Fund purchased the assets of 14 retail liquor stores (note 3) with cash from existing credit facilities and the proceeds from the issuance of Fund Units (note 6). In addition, two new stores, Liquor Depot Kamloops and Liquor Depot Richmond, opened in British Columbia on May 6, 2005. On October 17, 2005, the Fund purchased the assets of a retail store in Calgary, on October 18, 2005 the Fund acquired two additional retail liquor stores in British Columbia and on November 7, 2005 the Fund purchased the assets of a retail store in Fort McMurray as described in note 13.

Interest Rate Risk and Sensitivity

The Fund is not significantly impacted by interest rate changes. The Fund's bank indebtedness and long-term debt (note 7), bear interest at floating rates based on the bank's prime rate or at short term banker's acceptance rates, thus exposing the Fund to some interest rate fluctuations. As of September 30, 2005, the Fund has total credit facilities of $46.5 million. Excess funds from the March 2, 2005 issue of Fund Units will be used to fund future acquisitions and have temporarily reduced the amount of debt outstanding. A 1.0% increase in interest rates would have an impact of less than $261,000 on distributable cash based on $26.1 million of debt outstanding on average throughout the year. Based on operating 70 stores, management estimates that the Fund would have approximately $26.1 million of debt ($19.6 million of which would be operating debt) on average outstanding throughout a year.

Contractual Obligations

The table below sets forth, as of September 30, 2005, the contractual obligations of the Fund, due in the years indicated, which relate to various premises operating leases and the $7,358,800, non-revolving loan that is repayable in April of 2007.



2005 2006 2007 2008 2009 and
thereafter
Operating
Leases $1,087,657 $4,334,243 $ 4,007,912 $3,763,259 $10,330,768
Long Term
Debt - - 7,358,800 - -
------------------------------------------------------------------------
Total $1,087,657 $4,334,243 $11,366,712 $3,763,259 $10,330,768
------------------------------------------------------------------------


Off-Balance Sheet Arrangements

The Fund has not entered into any off-balance sheet arrangements.

Critical Accounting Estimates

Because of the nature of the Fund's business and assets, management believes that there are no critical accounting policies that rely on estimates.

Changes in Accounting Policies

Management is not aware of any recent accounting pronouncements or developments that will affect the Fund's financial statements. Management will continue to monitor and assess the impact of accounting pronouncements on the financial statements of the Fund as they become available.

Financial Instruments

Due to the nature of its business, the Fund does not engage in activities or hold assets that would require the Fund to acquire financial instruments for hedging or speculative purposes. The financial instruments that are held by the Fund consist of accounts receivable, bank indebtedness, accounts payable and accrued liabilities, distributions payable and long-term debt. The financial instruments are held in the normal course of operations and as a result no significant accounting policies need to be adopted or assumptions made in reporting the Fund's financial instruments.

Transactions with Related Parties

During the three and nine months ended September 30, 2005, the Fund incurred professional fees of $17,137 and $118,014 respectively to a law firm where one of the partners is a director of a subsidiary of the Fund. The Fund also leases a warehouse from a company controlled by a director of a subsidiary and one retail location is leased from a company of which two directors of a subsidiary are shareholders. Total lease payments under these agreements were $60,894 (see note 4). During the three and nine month period September 30, 2005, the Fund paid fees and expenses to a company controlled by the President of Liquor Stores GP inc., relating to supervision of the construction of developed stores, in the amount $19,122 and $30,650, respectively. Included in accounts payable and accrued liabilities is $14,214 relating to these transactions.

The Fund has a conflict of interest policy that requires the disclosure of potential conflicts and excludes persons with a material conflict of interest from any related decision making process.

Outlook

Management believes there will continue to be a consolidation trend in the industry. The Fund expects continued sales and earnings growth in 2005 and 2006 due to the accretive nature of acquisitions to date and the Fund's program of acquisition and new store development.

Additional information

Additional information relating to the Fund, including the Fund's Annual Information Form and other public filings is available on SEDAR (www.sedar.com) and on the Fund's website at www.liquorstoresincomefund.com.

RISK FACTORS

As at September 30, 2005, there are no material changes in the Fund's risks or risk management activities since the time of the initial public offering. The Fund's results of operations, business prospects, financial condition, cash distributions to Unitholders and the trading price of the Fund's units are subject to a number of risks. These risk factors include: risks relating to government regulation; competition; Liquor Stores LP's ability to locate and secure acceptable store sites and to adapt to changing market conditions; risks relating to future acquisitions and development of new stores; dependence on key personnel; supply interruption; reliance on information and control systems; absence of an operating history as a public company; dependence on capital markets to fund Liquor Stores LP's growth strategy beyond its available credit facilities; dependence of the Fund on Liquor Stores LP; leverage and restrictive covenants in agreements relating to current and future indebtedness of Liquor Stores LP; restrictions on the potential growth of Liquor Stores LP as a consequence of the payment by Liquor Stores LP of substantially all of its operating cash flow; income tax related risks; and the Vendors' right to approve certain material transactions. For a discussion of these risks and other risks associated with an investment in Fund Units, see "Risk Factors" detailed the Fund's Annual Information Form, which is available at www.sedar.com.

There is a new risk that regulatory authorities could alter the tax treatment of, "flow-through" entities such as income trusts and limited partnerships, including the distribution of trust income, or the tax on corporations and dividends, which could affect income trusts such as the Fund and their market valuations. The Federal Government has recently stated it intends to review the effect of flow through entities and tax changes may be made, which could adversely affect the tax treatment of income trusts. As of the date of this management discussion and analysis, those changes, if any, are unknown.

FORWARD LOOKING STATEMENTS

This management's discussion and analysis contains forward-looking statements. All statements other than statements of historical fact contained in this management's discussion and analysis are forward-looking statements, including, without limitation, statements regarding the future financial position, cash distributions, business strategy, proposed acquisitions, budgets, litigation, projected costs and plans and objectives of or involving the Fund or Liquor Stores LP. You can identify many of these statements by looking for words such as ''believes'', ''expects'', ''will'', ''intends'', ''projects'', ''anticipates'', ''estimates'', ''continues'' or similar words or the negative thereof. These forward-looking statements include statements with respect to the amount and timing of the payment of the distributions of the Fund. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, those discussed elsewhere in this management's discussion and analysis. There can be no assurance that such expectations will prove to be correct.

Some of the factors that could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include, but are not limited to, those discussed under 'Risk Factors".

The information contained in this management's discussion and analysis, including the information set forth under ''Risk Factors'', identifies additional factors that could affect the operating results and performance of the Fund and Liquor Stores LP.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this management's discussion and analysis is made as of the date of this management's discussion and analysis and the Fund assumes no obligation to update or revise them to reflect new events or circumstances except as required by law.



Liquor Stores Income Fund
Interim Consolidated Financial Statements

September 30, 2005

Liquor Stores Income Fund
Interim Consolidated Balance Sheet
------------------------------------------------------------------------
September 30, December 31,
2005 2004
(unaudited)
Assets $ $

Current assets
Cash and cash equivalents 171,892 178,672
Accounts receivable 524,013 666,130
Inventory 27,408,116 20,676,416
Prepaid expenses and deposits 296,614 413,585
--------------------------------
28,400,635 21,934,803
Pre-opening costs 336,154 164,954
Deposit on future business
acquisitions (note 13) 6,200,000 -
Equity investment 379,801 432,728
Property and equipment 16,204,584 12,184,265
Future income taxes receivable - 14,000
Intangible assets 342,116 406,466
Goodwill 75,251,062 66,943,639
--------------------------------
127,114,352 102,080,855
--------------------------------
--------------------------------
Liabilities

Current liabilities
Bank indebtedness (note 5) 8,993,000 11,397,240
Accounts payable and accrued
liabilities 1,328,795 1,629,896
Distributions payable to
unitholders (note 8) 552,445 358,190
Distributions payable to
non-controlling interest (note 9) 753,652 721,523
--------------------------------
11,627,892 14,106,849
--------------------------------
Future income taxes payable 9,100 -
Long-term debt (note 7) 7,358,800 7,397,917
Non-controlling interest (note 9) 41,470,603 42,376,480
--------------------------------
Unitholders' Equity

Unitholders' equity (note 8)
Fund units 66,852,876 37,814,172
--------------------------------
Cumulative earnings
Cumulative earnings 4,281,647 1,495,705
Distributions declared (note 11) (4,486,566) (1,110,268)
--------------------------------
(204,919) 385,437
--------------------------------
66,647,957 38,199,609
--------------------------------
127,114,352 102,080,855
--------------------------------
--------------------------------


Liquor Stores Income Fund
Interim Consolidated Statement of Earnings and Cumulative Earnings
For the three and nine months periods ended September 30, 2005
------------------------------------------------------------------------
Three Months Period from Nine Months
Ended August 10, 2004 Ended
September 30, to September 30, September 30,
2005 2004 2005
(unaudited) (unaudited) (unaudited)
$ $ $

Sales 41,434,078 806,759 106,758,276

Cost of sales 32,168,167 649,995 83,025,337
------------------------------------------------
Gross margin 9,265,911 156,764 23,732,939
------------------------------------------------
Expenses
Operating 4,667,254 91,012 12,521,672
Administrative 982,847 43,813 2,749,977
Amortization of
property and equipment 325,510 7,927 883,294
Acquisition and
store development 106,555 - 311,454
Amortization of
intangible assets 21,450 - 64,350
Amortization of
pre-opening costs 28,045 - 45,353
------------------------------------------------
6,131,661 142,752 16,576,100
------------------------------------------------
Earnings before the
under-noted 3,134,250 14,012 7,156,839

Interest
Interest expense on
current debt (102,992) (10,835) (282,230)
Interest expense on
long-term debt (65,383) (235) (238,716)
------------------------------------------------
(168,375) (11,070) (520,946)
------------------------------------------------
Earnings before
non-controlling
interest 2,965,875 2,942 6,635,893

Non-controlling
interest (1,202,077) - (2,739,683)
------------------------------------------------
Net earnings for
the period 1,763,798 2,942 3,896,210

Cumulative earnings,
beginning of period 2,517,849 - 385,437
------------------------------------------------
Cumulative earnings,
end of period 4,281,647 2,942 4,281,647
------------------------------------------------
Basic earnings per
unit (note 10) $0.29 $0.00 $0.68

Diluted earnings per
unit (note 10) $0.29 $0.00 $0.67


Liquor Stores Income Fund
Interim Consolidated Statement of Cash Flows
For the three and nine months periods ended September 30, 2005
------------------------------------------------------------------------
Three Months Period from Nine Months
Ended August 10, 2004 Ended
September 30, to September 30, September 30,
2005 2004 2005
(unaudited) (unaudited) (unaudited)

Cash provided by
(used in)

Operating activities $ $ $
Net earnings for the
period 1,763,798 2,942 3,896,210
Items not affecting cash
Amortization 375,005 7,927 992,997
Future income taxes 13,300 - 23,100
Equity income (5,237) - (12,585)
Accrued interest 25,711 - 130,722
Non-controlling interest 1,202,077 - 2,739,683
------------------------------------------------
3,374,654 10,869 7,770,127

Net change in non-cash
working capital items (1,353,916) 476,182 (3,100,789)
------------------------------------------------
2,020,738 487,051 4,669,338
------------------------------------------------
Financing activities
Net proceeds from the
issuance of Units
(note 3) - 38,420,000 28,670,464
Bank indebtedness 8,993,000 13,180,549 (2,404,240)
Long-term debt (143,573) 7,500,000 (146,501)
Due from vendors - (1,260,113) -
Distributions paid
to unitholders (1,647,377) - (4,292,331)
Distributions paid
to non-controlling
interest (1,115,362) - (3,245,193)
------------------------------------------------
6,086,688 57,840,436 18,582,199
------------------------------------------------
Investing activities
Business acquisitions
(note 4) (1,177,746) (56,196,253) (15,199,333)
Deposit on future
business acquisitions (6,200,000) - (6,200,000)
Purchase of property
and equipment (722,757) (1,824) (1,707,943)
Pre-opening costs (106,354) - (216,553)
Repayment from equity
investee 5,538 - 65,512
------------------------------------------------
(8,201,319) (56,198,077) (23,258,317)
------------------------------------------------
Increase (Decrease)
in cash and cash
equivalents (93,893) 2,129,410 (6,780)
Cash and cash
equivalents balance,
beginning of period 265,785 - 178,672
------------------------------------------------
Cash and cash
equivalents balance,
end of period 171,892 2,129,410 171,892
------------------------------------------------
Supplementary information
Interest paid 142,664 11,070 390,224
------------------------------------------------
------------------------------------------------


1 Nature of operations and organization

Liquor Stores Income Fund (the "Fund") is an unincorporated, open ended, limited purpose trust established under the laws of the Province of Alberta pursuant to a Declaration of Trust dated August 10, 2004.

2 Basis of presentation

The accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles ("GAAP") for interim financial statements. The accounting principles and methods of computation adopted in these financial statements are the same as those of the audited financial statements for the year ended December 31, 2004. However, these interim consolidated financial statements do not include all information and footnote disclosures required under Canadian GAAP for annual financial statements. Accordingly, these unaudited consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto, for the year ended December 31, 2004.

3 Issuance of Units

On March 2, 2005, the Fund issued 1,830,000 Fund Units at $16.40 per Fund Unit for aggregate proceeds of $30,012,000. The cost of issuance of the units was $1,341,536, resulting in net proceeds of $28,670,464. The Fund used the net proceeds from the issuance to acquire new stores as described in Note 4, to repay existing indebtedness and for general corporate purposes.

4 Business acquisitions

During the nine month period ended September 30, 2005, the Fund completed the acquisition of 14 retail liquor store businesses. The business acquisitions have been accounted for using the purchase method, whereby the purchase consideration was allocated to the estimated fair values of the assets acquired and liabilities assumed at the effective date of the purchase. The Fund has not yet finalized the allocation of the purchase cost for the acquisitions. The preliminary allocation of the purchase cost is based on management's best estimate and information available at the time of preparing these consolidated financial statements and any changes may be material.

The purchase price allocated to the assets acquired and the liabilities assumed, based on their fair values, is as follows:



$

Property and equipment 3,195,665
Goodwill and intangibles 8,307,423
-------------

11,503,088
Net working capital 3,696,245
-------------

Cash paid 15,199,333
-------------
-------------


5 Bank indebtedness

The bank indebtedness is collateralized by a general security agreement covering all present and after acquired personal property of Liquor Stores LP and also by a floating charge over all of Liquor Stores LP's present and after acquired real property and an assignment of Liquor Stores LP's insurance. Interest is payable at the lender's prime rate plus 0.25% or at the banker's acceptance rate plus 1.50%.

6 Related party transactions

During the three and nine month period ended September 30, 2005, the Fund incurred professional fees of $17,137 and $118,014, respectively, to a law firm where one of the partners is a director of a subsidiary of the Fund. During the three and nine month period ended September 30, 2005, the Fund paid rent to companies controlled by directors of a subsidiary of the Fund in the amount $20,298 and $60,894, respectively. During the three and nine month period ended September 30, 2005, the Fund paid fees and expenses to a company controlled by the President of the Fund, relating to the supervision of construction of developed stores, in the amount $19,122 and $30,650, respectively. These transactions have been recorded at the exchange amount, which is the fair market value. Included in accounts payable and accrued liabilities is $14,214 relating to these transactions.

7 Long-term debt

Interest is payable at the bank's prime rate plus 0.50%. As of September 30, 2005, the effective long-term debt rate of interest was 5.00%. The loan matures on April 30, 2006. The loan does not require principal repayments, but the bank has the right to demand the loan to be repaid in full, three hundred and sixty four days from the maturity of the current term. Therefore the loan is due on April 29, 2007.

The long-term debt is collateralized by a general security agreement covering all present and after acquired personal property of Liquor Stores LP and also by a floating charge over all of Liquor Stores LP's present and after acquired real property and an assignment of Liquor Stores LP's insurance.

8 Unitholders' equity

Fund Units

Units outstanding and capital contributions are as follows:



Number of Net capital
units Issue costs contributions
# $ $

Balance
- December 31, 2004 4,300,000 5,185,828 37,814,172
Units issued on
March 2, 2005 1,830,000 1,341,536 28,670,464
Units issued on exchange
of Liquor Stores LP
Exchangeable LP Units
during the quarter ended
September 30, 2005 36,824 - 368,240
-------------------------------------------

Balance
- September 30, 2005 6,166,824 6,527,364 66,852,876
-------------------------------------------
-------------------------------------------


An unlimited number of Fund Units may be created and issued pursuant to the Declaration of Trust. Each Fund Unit is transferable and represents an equal undivided beneficial interest in any distributions from the Fund, whether of net income, net realized capital gains or other amounts and in the net assets of the Fund in the event of a termination or winding up of the Fund. All Fund Units entitle the holder thereof to one vote and each Fund Unit has equal voting rights and privileges.

Units issued on exchange of Liquor Stores LP Exchangeable LP Units during the quarter ended September 30, 2005 were issued at the carrying amount of the Liquor Stores LP Exchangeable LP Units as per EIC-151.

Distributions payable to Unitholders

Distributions to Unitholders are determined based on earnings, before amortization, but reduced by capital expenditures. Distributions totalling $1,650,677 ($0.26874 per Fund Unit) were declared by the Fund for the quarter ended September 30, 2005. Of the distributions declared during the quarter, $1,098,252 were paid and $552,425 were payable as of September 30, 2005. Distributions of $1,647,377 were paid during the quarter, which included $549,125 of distributions that were declared and payable as of June 30, 2005.

9 Non-controlling interest



Liquor Stores LP Liquor Stores LP
Exchangeable LP Subordinated LP
Units Units Total

# # #

Balance
- December 31, 2004 2,075,000 2,125,000 4,200,000
Redemption of Liquor
Stores LP Exchangeable
LP Units for Fund Units
during the quarter ended
September 30, 2005 (36,824) - (36,824)
--------------------------------------------

Balance
- September 30, 2005 2,038,176 2,125,000 4,163,176
--------------------------------------------
--------------------------------------------

Fund Special Voting Units 2,038,176 2,125,000 4,163,176
--------------------------------------------
--------------------------------------------

$ $ $

Opening balance 20,935,999 21,440,481 42,376,480

Fund Special Voting Units
- Amount - - -

Earnings 1,352,741 1,386,942 2,739,683

Units exchanged for
Fund Units (368,240) - (368,240)

Distributions declared
(Note 11) (1,617,484) (1,659,836) (3,277,320)
--------------------------------------------

20,303,016 21,167,587 41,470,603
--------------------------------------------
--------------------------------------------


Distributions payable to non-controlling interest

Distributions to non-controlling interest are determined based on earnings, before amortization, but reduced by capital expenditures. Distributions totalling $544,337 ($0.26874 per Exchangeable LP Unit) and $571,071 ($0.26874 per Subordinated LP Unit) were declared by the Fund for the quarter ended September 30, 2005. Of the distributions declared during the quarter, $371,756 were paid and $753,652 were payable as of September 30, 2005. Distributions of $1,115,362 were paid during the quarter, which included $743,606 of distributions that were declared and payable as of June 30, 2005.



10 Earnings per Unit

Three Months Nine Months
Ended Ended
September 30, 2005 September 30, 2005

Net earnings (Numerator
utilized in basic earnings
per unit) $ 1,763,798 $ 3,896,210
Non-controlling interest 1,202,077 2,739,683
---------------------------------------
Earnings (Numerator utilized
in diluted earnings per unit) 2,965,875 6,635,893
---------------------------------------
---------------------------------------

Earnings per unit - basic $ 0.29 $ 0.68
- diluted $ 0.29 $ 0.67

Equivalent units outstanding,
beginning of period 6,130,000 4,300,000
Weighted average of equivalent
Units issued 7,126 1,423,500
---------------------------------------
Denominator utilized in basic
earning per Unit 6,137,126 5,723,500
Exchangeable and
Subordinated Units 4,192,874 4,197,599
---------------------------------------
Denominator utilized in
diluted earning per Unit 10,330,000 9,921,099
---------------------------------------
---------------------------------------


11 Distributions

Fund Units
-------------------------

Date Date
distribution distribution Declared Paid
declared paid $ $

January 18, 2005 February 15, 2005 358,190 358,190
February 16, 2005 March 15, 2005 358,190 358,190
March 18, 2005 April 15, 2005 510,629 510,629
April 15, 2005 May 16, 2005 510,629 510,629
May 16, 2005 June 15, 2005 549,126 549,126
June 16, 2005 July 15, 2005 549,125 549,125
July 15, 2005 August 15, 2005 549,126 549,126
August 15, 2005 September 15, 2005 549,126 549,126
September 15, 2005 October 17, 2005 552,425 -
--------------------------
4,486,566 3,934,141
--------------------------
--------------------------


Exchangeable LP Units
and Subordinated LP Units
---------------------------

Date Date
distribution distribution Declared Paid
declared paid $ $

January 18, 2005 February 15, 2005 172,848 172,848
February 16, 2005 March 15, 2005 172,847 172,847
March 18, 2005 April 15, 2005 703,885 703,885
April 15, 2005 May 16, 2005 172,848 172,848
May 16, 2005 June 15, 2005 185,878 185,878
June 16, 2005 July 15, 2005 743,606 743,606
July 15, 2005 August 15, 2005 185,878 185,878
August 15, 2005 September 15, 2005 185,878 185,878
September 15, 2005 October 17, 2005 753,652 -
---------------------------

3,277,320 2,523,668
---------------------------
---------------------------


Total
---------------------------

Date Date
distribution distribution Declared Paid
declared paid $ $

January 18, 2005 February 15, 2005 531,038 531,038
February 16, 2005 March 15, 2005 531,037 531,037
March 18, 2005 April 15, 2005 1,214,514 1,214,514
April 15, 2005 May 16, 2005 683,477 683,477
May 16, 2005 June 15, 2005 735,004 735,004
June 16, 2005 July 15, 2005 1,292,731 1,292,731
July 15, 2005 August 15, 2005 735,004 735,004
August 15, 2005 September 15, 2005 735,004 735,004
September 15, 2005 October 17, 2005 1,306,077 -
---------------------------

7,763,886 6,457,809
---------------------------
---------------------------


12 Seasonal nature of the business

The Fund's results for the third quarter of 2005 are not necessarily indicative of the results that maybe expected for the full year due to seasonal variations in sales levels. The Fund historically experiences higher sales in the third and fourth quarters, while the first and second quarter typically experience lower sales levels due to seasonal shopping patterns. Occupancy related expenses; general and administrative expense, amortization and interest expense remain relatively steady throughout the year.

13 Subsequent events

On October 17, 2005, October 18, 2005 and November 7, 2005 the Fund completed the acquisitions of 4 retail liquor store businesses. The aggregate purchase price (including inventory) was approximately $9,048,000 and was paid in cash from existing facilities and the proceeds from the issuance of Fund Units.

The purchase price will be allocated to the fair value of the acquired assets when determined.

Contact Information

  • Liquor Stores GP Inc.
    Ire Kipnes
    Chief Executive Officer
    (780) 944-9994 ext 6
    or
    Liquor Stores GP Inc.
    Tom Thorvaldson, CA
    Chief Financial Officer
    (780) 917-4184
    Website: www.liquorstoresincomefund.ca