Market Overview

Nine Month Financial Results and Regular Dividend

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TORONTO, March 13, 2018 (GLOBE NEWSWIRE) --

The Becker Milk Company Limited (the "Company") (TSX:BEK) is pleased to report the results for the nine months ended January 31, 2018.

HIGHLIGHTS

  • Total revenues for the nine months ended January 31, 2018 were $2,560,850 compared to $2,813,449 for the same period in 2017;
  • Net operating income for Q3 fiscal 2018 was $2,139,917 compared to $2,396,286 in fiscal 2017;
  • Net income for Q3 fiscal 2018 was $ 0.61 per share, compared to $0.19 per share in fiscal 2017.

FINANCIAL HIGHLIGHTS

Net operating income for the nine months ended January 31, 2018 decreased $256,369 compared with the previous year to $2,139,917, as a result of decreased revenue, resulting from vacancies and the sale of properties.

       
  Nine months ended
  January 31
    2018         2017  
Property revenue $ 2,533,628     $ 2,796,401  
Finance income   27,222       17,048  
Total revenues $ 2,560,850     $ 2,813,449  
       
Property revenue $ 2,533,628     $ 2,796,401  
Property operating expenses   (393,711 )     (400,115 )
Net operating income $ 2,139,917     $ 2,396,286  
       
Adjusted funds from operations $ 943,241     $ 1,042,132  
       
Net income attributable to common and special shareholders                                          $ 1,103,368     $ 348,308  
       
Average common and special shares outstanding   1,808,360       1,808,360  
       
Income per share $ 0.61     $ 0.19  
       

Components of the $755,060 decrease in net income for the nine months ended January 31, 2018 compared to the nine months ended January 31, 2017 are:                                                                                                                                            

Changes in net income - Nine months ended January 31, 2018
compared to nine months ended January 31, 2017
   
   
Provision for environmental liability  
Decrease in net operating income ($256,369 )
Increase in fair value adjustment 1,000,892  
Decrease in administrative expenses 157,443  
Decrease in recovery of deferred taxes on investment properties (30,745 )
Increase in current taxes (71,704 )
Increase in finance income 10,174  
Increase in loss on disposal (26,576 )
Increase in strategic expenses (28,055 )
Increase in net income $755,060  
   

ADJUSTED FUNDS FROM OPERATIONS

For the nine months ended January 31, 2018 the Company recorded adjusted funds from operations of $943,241 ($0.52 per share) compared to $1,042,132 ($0.58 per share) in 2017.

         
    Nine months ended
    January 31
      2018         2017  
Funds from operations $ 1,000,296     $ 1,078,524  
Items not affecting cash:      
  Straight line rent   -       33,834  
  Expenses related to strategic review                                                                            (28,055 )     -  
  Sustaining capital expenditures   (29,000 )     (70,226 )
  Sustaining capital expenditures      
Adjusted funds from operations $ 943,241     $ 1,042,132  
         
Adjusted funds from operations per share $ 0.52     $ 0.58  
         

STRATEGIC REVIEW

As reported in a press release dated August 6, 2013 the Company retained PricewaterhouseCoopers Real Estate Inc. to explore the possible sale of the Company. Although this arrangement terminated in fiscal 2016, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.

As at January 31, 2018 total legal and engineering costs of $853,870 had been incurred in connection with the potential sale of the Company.

DIVIDEND

The Directors of the Company have declared a dividend on Class B Special and Common Shares of 40 cents per share.  The dividend of 40 cents will be paid to those shareholders of record as of March 22, 2018 and payable on March 30, 2018.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

The Company's interim financial statements for the nine months ended January 31, 2018, along with the Management's Discussion and Analysis will be filed with SEDAR at www.sedar.com.

Readers are cautioned that although the terms "Net Operating Income", and "Funds From Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles.  Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.

For the Board of Directors
G.W.J. Pottow, President
Tel: 416-698-2591

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