BURLINGTON, ON, June 20 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN)
("the Fund") today announced that SIR Corp. ("SIR"), the private operating
entity from which the Fund derives distribution income and interest income,
has filed its fiscal 2007 third quarter financial results for the 12 and
36-week periods ended May 6, 2007.
SIR has advised the Fund that revenue for restaurants in the Royalty pool
for the third quarter of fiscal 2007 increased 7.9% to $37.6 million compared
to $34.9 million for the same period a year ago. The number of restaurants in
the Royalty pool increased to 38 as at May 6, 2007, compared to 36 as at
May 7, 2006. Three new Canyon Creek(R) restaurants were added to the Royalty
pool effective January 1, 2007, which was offset by the exclusion of the
closed Jack Astor's(R) Don Mills location. The increase in number of
restaurants, along with same store sales growth(1) ("SSSG") has contributed to
the increase in revenue from the Royalty Pooled Restaurants. During the third
quarter of fiscal 2007, SIR opened a new Jack Astor's restaurant in Hamilton,
Ontario. Subsequent to the end of the third quarter of fiscal 2007, SIR opened
a new Jack Astor's restaurant in Dartmouth, Nova Scotia. It is anticipated
that these restaurants will be added to the Royalty Pooled Restaurants
effective January 1, 2008.
For the 36-week period ended May 6, 2007, revenue for the restaurants in
the Royalty pool increased 9.1% to $107.9 million compared to $98.9 million in
revenue for restaurants in the Royalty pool for the 36-week period ended
May 7, 2006. During the period, SIR Concept Restaurants (Jack Astor's, Alice
Fazooli's!(R) and Canyon Creek Chop House(R) accounted for approximately 87%
of Royalty Pooled Revenue and the Signature Restaurants (reds(R), Far
Niente(R) & Soul of the Vine(R), Brasserie Frisco(TM), Armadillo Texas
Grill(R) and the Loose Moose Tap & Grill(R)) accounted for approximately 13%
of Royalty Pooled Revenue.
SIR's loss from continuing operations decreased 24.8% to $0.4 million in
the third quarter of fiscal 2007 compared to a loss from continuing operations
of $0.5 million in the third quarter of fiscal 2006. SIR's loss from
continuing operations totalled $3.4 million for the 36-week period ended
May 6, 2007, down from a loss from continuing operations of $3.5 million in
the same period a year ago.
For the third quarter of fiscal 2007, SIR's cash provided by continuing
operations decreased to $0.5 million from $1.4 million in the same period a
year ago. For the 36-week period ended May 6, 2007, cash provided by
continuing operations increased to $3.7 million, compared to $3.5 million in
the same period a year ago. SIR used cash in continuing investing activities
of $2.8 million and $7.9 million for the 12 and 36-week periods ended May 6,
2007, respectively, primarily for the purchase of property, plant and
equipment related to new and renovated restaurants.
SIR believes that it has sufficient cash resources to fund its current
working capital requirements and current commitments for estimated
construction costs for new restaurants. Subsequent to May 6, 2007, SIR entered
into a $15 million credit facility to help facilitate its future restaurant
expansion plans. The credit facility consists of a two-year revolving credit
facility and a revolving construction credit facility. SIR and the lender are
currently completing final legal documentation. The financial close has not
SIR has advised the Fund that same store sales(1) ("SSS") for restaurants
in the Royalty pool for the 12-week period ended May 6, 2007 increased 3.9% to
$35.5 million compared to $34.1 million for the comparable period a year ago.
For the 36-week period ended May 6, 2007, SSS(1) increased 3.2% to
$104.7 million compared to $101.4 million for the comparable period in 2006.
SSSG(1) for Restaurants 12-week period ended 36-week period ended
in the Royalty pool May 6, 2007 May 6, 2007
Jack Astor's 2.6% 2.0%
Alice Fazooli's! 6.3% 5.3%
Canyon Creek 6.8% 6.5%
Signature Restaurants 5.4% 4.2%
Overall SSSG 3.9% 3.2%
SIR's fiscal 2007 third quarter filings, which include its unaudited
interim consolidated financial statements and management's discussion &
analysis, can be accessed via the SIR website or under the Fund's profile on
the SEDAR website at www.sedar.com under "Other".
About SIR Corp.
SIR is a privately held Canadian corporation that owns and operates a
portfolio of more than 40 restaurants in Canada. SIR's concept brands include:
Jack Astor's(R) Bar and Grill, with 24 locations; Alice Fazooli's!(R), with
five locations; and Canyon Creek Chop House(R), with seven locations. SIR also
operates one-of-a-kind "signature" brands in downtown Toronto, which comprise
the upscale reds(R), Far Niente(R) & Soul of the Vine(R), Brasserie
Frisco(TM), the casual Armadillo Texas Grill(R) 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 38 restaurants currently included
in the Royalty Pool. 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
Certain statements in this news release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Fund 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 are such words as "may", "will",
"expect", "believe", "plan", "anticipate", "intend", "estimate" and other
similar terminology. These statements reflect SIR Management's current
expectations regarding future events and operating performance and speak only
as of the date of this document. 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 with regard thereto or any changes in events, conditions or
circumstances on which any statement is based.
In formulating the forward-looking statements contained herein,
management has assumed, among other things, 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. For more information concerning the Fund's
risks and uncertainties, please refer to the Fund's periodic interim filings,
October, 2004 prospectus and/or its March 30, 2007 Annual Information Form.
(1) Same store sales and same store sales growth exclude revenue from
restaurants which are not included in the Royalty pool, 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.
For further information:
For further information: Jeff Good, Chief Financial Officer, SIR Corp.,
Tel: (905) 681-2997; Bruce Wigle, Investor Relations, Tel: (416) 815-0700 ext.
228, Email: email@example.com