Sir Royalty Income Fund SIRZF

SIR CORP RESULTS

[logicandinertia]

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.

[flamingogold]

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

[jcw604]

Do you see we will have a bad Q1 because of the winter and the covid lock down? Or we could still make some payments to the debts?

[logicandinertia]

The Corp had all of September and partway thru October without lockdowns before Ford locked down Toronto and peel in mid October.  And from there, restrictions in other areas have increased.   Not sure matters much, but I don't see much cash flow burn,  as they have driven down the cost base so much with the help of govt subsidies that survival doesn't seem to be an issue

[BlueJay2020]

The other factor, and I don't know how significant this is, or how significant a source of significant funding it 'could' be - but there are also gift card inflows, especially at this time of year.  I haven't seen anything other than fairly normal discounts to the face value, which seems to indicate management has not seen the need to get inflows in this way.  I am not

[flamingogold]

A couple of weeks ago I received an email offer for a bonus $50 gift card with a pre-purchased $250 cert. This was the biggest ask I've seen from SIR, but considering current events a good move to pull some demand forward. I took the offer, hopefully they get some traction on it to help tide them over the typcial doldrum months of Jan/Feb and now with record covid cases on top.

[BlueJay2020]

Am I right in thinking that shareholders in SRV receive royalties on the purchases using the $50 free card? If so, I like that idea even better! :)