Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > SIR CORP RESULTS

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Comment by flamingogoldon Dec 01, 2020 10:22am

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Post# 32008882

RE:SIR CORP RESULTS

Once again, thanks for your input, it helps in navigating this difficult time for hospitality.

logicandinertia wrote: the operating business filed its year end results, important as this is the entity with leverage (debt) and operator of the business. certainly not a disaster, and much improved from the previous quarter.

In the quarter ended August 30, Revenue from restaurant operations was $34.5 million and earnings from corporate restaurant operations was $2.47 million, a margin of 7.2%.

For the quarter, Generated positive EBITDA and adjusted EBITDA of $8.45 million and $2.7 million.

For the quarter, Generated positive cash flow from operations of $4.4 million (versus -$1 million in the prior quarter).

And most importantly, cash burn. At the end of Q3, SIR CORP had increased net debt for the YTD by $12.394 million. At the end of Q4, the net debt had increased for the full year by $10.8 million, meaning net debt actually decreased in Q4 by $1.6 million ($12.394-$10.8).

$6.25 million BDC ECAP loan facility was totally undrawn.