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Nine Month Financial Results and Regular Dividend

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

The Becker Milk Company Limited (the “Company”) (TSX:BEK.B) 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 adjustment1,000,892
Decrease in administrative expenses157,443
Decrease in recovery of deferred taxes on investment properties(30,745)
Increase in current taxes(71,704)
Increase in finance income10,174
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

Source:The Becker Milk Company Limited

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