/C O R R E C T I O N from Source -- SIR Royalty Income Fund/



    
    In c4969, originally transmitted on August 13, 2009, an error occurred in
    the third column of the "Same Store Sales" table, as well as in the
    description of the same in the paragraph that follows. The figure (0.8%)
    for Jack Astor's six-month year-to-date same store sales should have read
    (3.4%) and the figure (5.1%) for the overall six-month year-to-date same
    store sales should have read (6.7%). Corrected copy follows:

    SIR Royalty Income Fund reports fiscal 2009 second quarter results
    

    BURLINGTON, ON, Aug. 13 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN)
("the Fund") today reported its fiscal 2009 second quarter ("Q2") results for
the three-month and six-month periods ended June 30, 2009.

    
    Second Quarter 2009 Highlights

    -   Net earnings totaled $1.9 million or $0.35 per Fund unit (basic and
        diluted) compared to $2.0 million or $0.37 per fund unit (basic and
        diluted) for the same period in 2008;
    -   The Fund generated distributable cash(2) of $1.9 million and declared
        distributions totaling $1.8 million, representing a payout ratio(2)
        of 97.5%. This compares to Q2 2008 distributable cash(2) of $2.0
        million and declared distributions of $1.8 million, representing a
        payout ratio(2) of 90.6%;
    -   Same store sales(1) ("SSS") for the Royalty Pooled Restaurants
        declined 7.6% compared to Q2 2008
    

    "Despite the continued recessionary climate, we have maintained our
monthly distributions to unitholders of $0.115 per unit and still achieved a
payout ratio(2) below 100% in the second quarter. Since our initial public
offering in October 2004, the Fund has consistently declared stable or
increasing monthly distributions to our unitholders," said Peter Fowler, Chief
Executive Officer of SIR Corp. ("SIR") "Going forward, as we do not expect to
see substantive economic recovery in the near term, we will combat these
external pressures on our sales by providing our guests with consistently
excellent food and service supported by effective advertising campaigns,"
continued Mr. Fowler. "In addition, Jack Astor's sales have been supported by
the 'Get Fresh' campaign launched in Q2 2009. Subsequent to Q2 2009, SIR
launched a four-week media campaign for Canyon Creek that includes print,
television, on-line and radio advertisements. We will continue to focus on our
core strategy of providing our guests with excellence and innovation in their
dining experience, and providing our investors with stable distributions. "

    Financial Results

    Revenue for Royalty Pooled Restaurants for the three-month period ended
June 30, 2009, increased by 9.3% to $49.6 million compared to $45.4 million
for the same period in 2008. For the six-month period ended June 30, 2009,
Pooled Revenue increased 8.8% to $95.1 million compared to $87.4 million for
the same period in 2008. The increase in Pooled Revenue in 2009 resulted
primarily from the addition of six new restaurants to Royalty Pooled
Restaurants effective January 1, 2009.
    Distributable cash(2) for Q2 2009 totaled $1.9 million or $0.35 per Fund
Unit (basic and diluted), and declared distributions to unitholders totaled
$1.8 million, representing a payout ratio(2) of 97.5% for the period. For Q2
2008, distributable cash(2) totaled $2.0 million or $0.37 per Fund Unit (basic
and diluted) and declared distributions totaled $1.8 million, representing a
payout ratio(2) of 90.6%. For the six-month periods ended June 30, 2009 and
2008 distributable cash(2) totaled $3.6 million and $3.8 million,
respectively. With distributions declared of $3.7 million and $3.6 million in
2009 and 2008 respectively, the payout ratio was 102.8% and 93.9% in 2009 and
2008 respectively.
    The Fund's net earnings for Q2 2009 totaled $1.9 million, or $0.35 per
Fund Unit (basic and diluted), compared to $2.0 million or $0.37 per Fund Unit
(basic and diluted) for the same period in 2008. For the six-month periods
ended June 30, 2009 and 2008 net earnings totaled $3.6 million and $3.8
million, respectively.

    
                                       3 month   3 month   6 month   6 month
    Financial Highlights                period    period    period    period
    ($000s except restaurant and         ended     ended     ended     ended
     per unit amounts)                 June 30,  June 30,  June 30,  June 30,
    (unaudited)                           2009      2008      2009      2008
    -------------------------------------------------------------------------

    Royalty Pooled Restaurants              45        39        45        39
    Pooled Revenue generated by SIR     49,627    45,424    95,119    87,448
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Royalty income to Partnership -
     6% of Pooled Revenue                2,977     2,725     5,707     5,247
    Partnership other income                 6        15        15        32
    Partnership expenses                   (27)      (24)      (73)      (68)
    -------------------------------------------------------------------------
    Partnership earnings                 2,956     2,716     5,649     5,211
    SIR Corp.'s interest (Class A,
     B, and C GP Units)                 (1,715)   (1,360)   (3,330)   (2,668)
    -------------------------------------------------------------------------
    Partnership income allocated
     to Fund                             1,241     1,356     2,319     2,543
    Interest income                        750       750     1,500     1,500
    -------------------------------------------------------------------------
    Total income of the Fund             1,991     2,106     3,819     4,043
    General & administrative expenses      (96)     (124)     (224)     (248)
    -------------------------------------------------------------------------

    Net earnings of the Fund             1,895     1,982     3,595     3,795
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per Fund unit (basic
     and fully diluted)                   0.35      0.37      0.67      0.71
    Distributable cash(2) per Fund
     unit                                 0.35      0.37      0.67      0.71


    Management believes that weaknesses in the general economy in the first
half of 2009 have negatively impacted Pooled Revenue and the resulting
Royalty, the Fund's net earnings, distributable cash(2) and payout ratios(2)
for the three and six month periods ended June 30, 2009 compared to the same
period in 2008.


    Same Store Sales(1)

                              3 month      3 month      6 month      6 month
                               period       period       period       period
                                ended        ended        ended        ended
    SSSG(1) for Royalty       June 30,     June 30,     June 30,     June 30,
    Pooled Restaurants           2009         2008         2009         2008
    -------------------------------------------------------------------------
    Jack Astor's                (4.0%)        6.6%        (3.4%)        4.3%
    Canyon Creek Chop House    (14.2%)        6.2%       (12.2%)        3.2%
    Alice Fazooli's             (9.8%)        8.1%        (8.3%)        4.7%
    Signature Restaurants      (19.8%)        7.6%       (16.7%)        5.8%
    -------------------------------------------------------------------------
    Overall SSSG(1)             (7.6%)        6.8%        (6.7%)        4.3%
    


    For the three and six-month periods ended June 30, 2009, SIR reported to
the Fund a decline in SSS(1) of 7.6% and 6.7% respectively compared to same
store sales growth ("SSSG")(1) of 6.8% and 4.3% respectively for the same
periods in 2008. Broken out for the quarter, Jack Astor's, which accounts for
approximately 68% of Pooled Revenue, reported SSS(1) declines of 4.0% and 3.4%
for the three- and six-month periods ended June 30, 2009 respectively compared
to SSSG(1) of 6.6% and 4.3% respectively for the same periods in 2008. Alice
Fazooli's had SSS(1) declines of 9.8% and 8.3% for the three- and six-month
periods ended June 30, 2009 respectively compared to SSSG(1) of 8.1% and 4.7%
respectively for the same periods in 2008. Canyon Creek reported SSS(1)
declines of 14.2% and 12.2% for the three- and six-month periods ended June
30, 2009 respectively compared to SSSG(1) of 6.2% and 3.2% respectively for
the same periods in 2008. For the downtown Toronto Signature Restaurants which
includes reds(R), Loose Moose Tap & Grill(R), Far Niente(R)/FOUR(TM)/Petit
Four(TM), SSS(1) declined 19.8% and 16.7% for the three- and six-month periods
ended June 30, 2009 respectively compared to SSSG(1) of 7.6% and 5.8%
respectively for the same period in 2008. Management believes that the Jack
Astor's restaurants with its somewhat lower average cheque has been less
affected by the weaker economy than the higher average cheque restaurants such
as Alice Fazooli's, Canyon Creek and Signature Restaurants. In addition, sales
have been supported by the Jack Astor's "Get Fresh" campaign launched in Q2
2009. The campaign includes direct mail, radio and television banner
advertisements supporting Jack Astor's key markets. Subsequent to Q2 2009, SIR
launched a four-week media campaign for Canyon Creek that includes print,
television, on-line, and radio advertisements.

    Corporate Development and Liquidity

    SIR has secured sites for three additional new restaurants. Two sites are
located at the corners of Yonge and Gerrard Streets in Toronto, Ontario with
estimated openings in 2011, and the third site is located in Boisbriand,
Quebec where SIR plans to construct a Jack Astor's restaurant with an
estimated opening in fiscal 2010.
    Management believes that there are sufficient cash resources retained in
SIR to finance the construction of these restaurants. SIR also has in place a
credit agreement with a Canadian Schedule one bank (the "Credit Agreement")
totaling $16.0 million. The Credit Agreement provides for a $2.0 million
revolving facility, a $13.0 million construction facility, and a $1.0 million
treasury management facility to hedge the construction facility. As at May 10,
2009, SIR had drawn an aggregate of $12.7 million under these facilities, and
SIR is in compliance with the covenants of the Credit Agreement.
    During Q2 2009, the lender approved the extension of the credit
facilities for 364 days maturing on July 30, 2010, at which time, the
construction line, if not extended, would be converted into a five-year term
loan due in 60 equal monthly installments. The interest rates on the financing
will be banker's acceptance plus 3.75% and prime rate plus 2.25%. All other
terms and conditions remain unchanged.
    The Fund's 2009 second quarter consolidated Financial Statements and
Management's Discussion & Analysis ("MD&A"), and the SIR Royalty Limited
Partnership's Financial Statements, for the three-month and six-month periods
ended June 30, 2009 will be filed on SEDAR today and will be available via the
SEDAR web site at www.sedar.com tomorrow. The Fund's 2009 second quarter
consolidated Financial Statements and MD&A are also available via SIR's
website at www.sircorp.com.

    2009 Second Quarter Conference Call & Web Cast

    Management of SIR Royalty Income Fund will host a conference call to
discuss the Fund's 2009 second quarter financial results on Friday, August 14,
2009 at 10:00 a.m. (EST). The call will be audio-cast live and archived for 90
days at www.newswire.ca or www.sircorp.com. A replay of the conference call
will be available until Saturday, August 22, 2009 at midnight by calling
1-877-289-8525 or 416-640-1917, reference number 21311203#.

    
    (1) Same store sales and same store sales growth exclude revenue from
        restaurants which are not included in the Royalty Pooled Restaurants,
        and exclude revenue from restaurants opened or closed during the
        current or prior fiscal year and therefore not open for the full
        period in both years. SSSG is the percentage increase in SSS over the
        prior comparable period. SSS and SSSG are non-GAAP measures that do
        not have standardized meanings prescribed by GAAP. However, SIR
        believes that SSS and SSSG are useful measures and provide investors
        with an indication of the change in year-over-year sales. SIR's
        method of calculating SSS and SSSG may differ from those of other
        issuers and, accordingly, SSS and SSSG may not be comparable to
        measures used by other issuers.
    (2) Distributable cash and payout ratio are non-GAAP financial measures
        and do not have a standardized meaning prescribed by GAAP. However,
        the Fund believes that distributable cash and the payout ratio are
        useful measures as they provide investors with an indication of cash
        available for distribution. The Fund's method of calculating
        distributable cash and the payout ratio may differ from that of other
        issuers and, accordingly, distributable cash and the payout ratio may
        not be comparable to measures used by other issuers. Investors are
        cautioned that distributable cash and the payout ratio should not be
        construed as an alternative to the statement of cash flows as a
        measure of liquidity and cash flows of the Fund. The payout ratio is
        calculated as cash distributed for the period as a percentage of the
        distributable cash for the period. For a detailed explanation of how
        the Fund's distributable cash is calculated, please refer to the
        Fund's MD&A for the three-month and six-month periods ended June 30,
        2009, which can be accessed via the SEDAR web site (www.sedar.com).
    

    About SIR Corp.

    SIR is a privately held Canadian corporation that owns and operates a
portfolio of 45 restaurants in Canada. SIR's concept brands include: Jack
Astor's Bar and Grill(R), with 29 locations; Alice Fazooli's(R), with five
locations; and Canyon Creek Chop House(R), with eight locations. SIR also
operates one-of-a-kind "signature" brands in downtown Toronto, which comprise
the upscale reds(R), Far Niente(R)/FOUR(TM)/Petit Four(TM), and the Loose
Moose Tap & Grill(R). All trademarks related to the concept and signature
brands noted above are used by SIR under a license agreement with SIR Royalty
Limited Partnership in consideration for a Royalty, payable by SIR to the
Partnership, equal to six percent of the revenue of the 45 Royalty Pooled
Restaurants. For more information on SIR Corp. or the SIR Royalty Income Fund,
please visit www.sircorp.com.

    About SIR Royalty Income Fund

    The Fund is a trust governed by the laws of the province of Ontario that
receives distribution income from its investment in the SIR Royalty Limited
Partnership and interest income from the SIR Loan. The Fund intends to pay
distributions to unitholders on a monthly basis.

    
    Caution concerning forward-looking statements
    ---------------------------------------------
    
    Statements in this release, including the information set forth as to the
future financial or operating performance of the Fund or SIR, that are not
current or historical factual statements may constitute "forward-looking"
information within the meaning of securities laws. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Fund,
the Trust, the Partnership, SIR, the SIR Restaurants, or industry results, to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used in this
document, such statements may include, among other language, such words as
"may", "will", "expect", "believe", "plan", "anticipate", "intend", "estimate"
and other similar terminology. These statements reflect Management's current
expectations, estimates and projections regarding future events and operating
performance and speak only as of the date of this document. Readers should not
place undue importance on forward-looking statements and should not rely upon
this information as of any other date. These forward-looking statements
involve a number of risks and uncertainties. The following are some of the
factors that could cause actual results to differ materially from those
expressed in or underlying such forward-looking statements: competition;
changes in demographic trends; changing consumer preferences and discretionary
spending patterns; changes in consumer confidence; changes in national and
local business and economic conditions; changes in availability of credit;
legal proceedings and challenges to intellectual property rights; dependence
of the Fund on the financial condition of SIR; legislation and governmental
regulation; accounting policies and practices; and the results of operations
and financial condition of SIR. The foregoing list of factors is not
exhaustive. Many of these issues can affect the Fund's or SIR's actual results
and could cause their actual results to differ materially from those expressed
or implied in any forward-looking statements made by, or on behalf of, the
Fund or SIR. Readers are cautioned that forward-looking statements are not
guarantees of future performance, and should not place undue reliance on them.
The Fund and SIR expressly disclaim any obligation or undertaking to publicly
release any updates or revisions to any forward-looking statements contained
herein to reflect any change in expectations, estimates and projections with
regard thereto or any changes in events, conditions or circumstances on which
any statement is based, except as expressly required by law.
    In formulating the forward-looking statements contained herein,
Management has assumed that business conditions affecting SIR's restaurants
and the Fund will continue substantially in the ordinary course, including
without limitation with respect to general industry conditions, regulations
(including those regarding employees, food safety, tobacco and alcohol),
weather, taxes, foreign exchange rates and interest rates, that there will be
no pandemics or other material outbreaks of disease or safety issues affecting
humans or animals or food products, and that there will be no unplanned
material changes in its facilities, equipment, customer and employee
relations, or credit arrangements. Management is not anticipating an
improvement, in the near future, in economic conditions (particularly as it
relates to the recent unprecedented deterioration of the economic environment
and consumer confidence, which could significantly negatively affect sales and
profit prospects in the near future). Management is not anticipating an
improvement, in the near future, in the availability of credit (particularly
as it relates to the recent disruption of world credit markets, which could
significantly negatively affect sales and profit prospects in the near
future). These assumptions, although considered reasonable by Management at
the time of preparation, may prove to be incorrect. In particular, in
estimating the revenues for the five new Jack Astor's restaurants and the one
new Canyon Creek restaurant, added to Royalty Pooled Restaurants on January 1,
2009, Management has assumed that they will operate consistent with other Jack
Astor's and Canyon Creek restaurants. For more information concerning the
Fund's risks and uncertainties, please refer to the March 31, 2009 Annual
Information Form which is available under the Fund's profile at www.sedar.com.
    In formulating the forward-looking statements contained herein,
management has assumed that business and economic conditions affecting SIR's
restaurants and the Fund will continue substantially in the ordinary course,
including without limitation with respect to industry conditions, general
levels of economic activity (including in downtown Toronto), regulations
(including regarding employees, food safety, tobacco and alcohol), weather,
taxes, foreign exchange rates and interest rates, that there will be no
pandemics or other outbreaks of disease or safety issues affecting humans or
animals or food products, and that there will be no unplanned material changes
in its facilities, equipment, customer and employee relations, or credit
arrangements. These assumptions, although considered reasonable by SIR
management at the time of preparation, may prove to be incorrect. For more
information concerning the Fund's risks and uncertainties, please refer to the
Fund's periodic interim filings and its March 31, 2009 Annual Information
Form, all of which are available under the Fund's profile at www.sedar.com





For further information:

For further information: Jeff Good, Chief Financial Officer, SIR Corp.,
5360 South Service Road, Suite 200, Burlington, Ontario, Canada, L7L 5L1, Tel:
(905) 681-2997; Bruce Wigle or Alice Dunning, Investor Relations, Tel: (416)
815-0700 ext. 228 or ext. 255, Email: bwigle@equicomgroup.com or
adunning@equicomgroup.com


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