Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

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 > Fiscal 2022 First Quarter Results

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Post by Betteryear2on Dec 23, 2021 8:46pm

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Fiscal 2022 First Quarter Results

BURLINGTON, ON, Dec. 23, 2021 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund") today announced that SIR Corp. ("SIR" or the "Company"), the operating entity from which the Fund earns equity income, has filed its financial results for the 12-week period ended November 21, 2021 ("Q1 2022"). SIR's unaudited interim consolidated financial statements and management's discussion & analysis ("MD&A") for Q1 2022 can be accessed via the Fund's profile on the SEDAR website at www.sedar.com under "Other", or the SIR website at www.sircorp.com/sir-royalty-income-fund/financial-reports.

Q1 2022 Business Update

The state of the restaurant and bar industry trended positively during Q1 2022 due to increased vaccination rates and the reduction of government-mandated capacity restrictions on indoor dining compared to the 12-week period ended November 22, 2020 ("Q1 2021").
Proof of full vaccination (vaccine certificate or passport), along with identification, is required to be shown in order to dine indoors in all provinces where SIR operates its restaurants. In Ontario (44 SIR restaurants), Nova Scotia (two SIR restaurants) and Newfoundland (one SIR restaurant), proof of vaccination is required for those aged 12 years and older. In Quebec (four SIR restaurants), proof of vaccination is required for those aged 13 and older. While these vaccination requirements have enabled SIR to host patrons for indoor dining, the Company's sales remain negatively impacted compared to pre-pandemic periods due to certain limitations that restrict overall guest counts, including public health and workplace safety measures such as (but not limited to) physical distancing.
Food and beverage revenue from corporate restaurant operations for Q1 2022 totaled $45.6 million, an increase of 58.6% compared to Q1 2021.
Consolidated Same Store Sales ("SSS")¹ increased 64% in Q1 2022.
Effective September 15, 2021, having met the conditions stipulated by SIR's senior lender, SIR began its repayment of deferred royalties and interest on the SIR Loan. Pursuant to the eighth amendment under SIR's Credit Agreement, these amounts will be repaid over 10 monthly installments of $0.5 million and $0.4 million, respectively.
SIR completed a renovation of its Jack Astor's restaurant at the Square One shopping centre in Mississauga, Ontario.