Sir Royalty Income Fund SIRZF

Fiscal 2022 First Quarter Results

[Betteryear2]

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.

[BlueJay2020]

Sales just under 75% of what they were in the same quarter 2 years ago.  It's all ancient history now - the key is how long we'll be at 50% capacity.

[flamingogold]

This Omicron wave will be fast and furious. January could see a big scary spike in cases, but hospital admission to covid won't follow. Look to see what other leading governments do post holidays, as Ford will be forced to follow in their steps to reopen far quicker than last year. Merry Christmas to all. https://www.cnbc.com/2021/12/24/omicron-less-likely-to-cause-hospitalization-uk

[JayBanks]

I haven't read many quarterlies from this company yet so I don't know thier normal tone, but that sounded somewhat ominous with few attempts at perks. As you mention they compare where they have been during this pandemic, but I like your comparison of 75% of where they were, I think that's more useful info especially since this situation isn't over. It signals there is upside

[BlueJay2020]

It's mostly standard boilerplate stuff to satisfy the auditors and really a very similar tone to the last 18 months. Upside is never really referred to.  You have to read between the lines. If the bank has supported them thus far there is no reason why they won't do in future, assuming we don't reach Armageddon with perpetual lockdowns.  If you believe vaccines will