The Becker Milk Company Limited
TSX : BEK.B

June 27, 2014 17:00 ET

The Becker Milk Company Limited: 2014 Annual Financial Results

TORONTO, ONTARIO--(Marketwired - June 27, 2014) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the year ended April 30, 2014.

HIGHLIGHTS

  • Total revenues for the year ended April 30, 2014 were $3,948,809 compared to $4,089,035 for the same period in 2013;
  • Net operating income for the year was $3,367,305 compared to $3,488,036 in 2013;
  • Net income for the year for the year was $ 0.09 per share, compared to $0.55 per share in 2013.

FINANCIAL HIGHLIGHTS

Year ended
April 30, 2014
2014 2013
Property revenue $ 3,887,131 $ 4,017,858
Finance income 61,678 71,177
Total revenues $ 3,948,809 $ 4,089,035
Property revenue $ 3,887,131 $ 4,017,858
Property operating expenses (519,826 ) (529,822 )
Net operating income $ 3,367,305 $ 3,488,036
Adjusted funds from operations $ 1,334,110 $ 1,937,615
Net income attributable to common and special shareholders $ 157,460 $ 991,791
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.09 $ 0.55

Significant components of the $834,331 decrease in net income between the year ended April 30, 2014 compared to the year ended April 30, 2013 are:

Provision for environmental liability $ (850,000 )
Change in fair value of investment properties 73,831
Change in loss on disposal 58,391
Change in deferred taxes on investment properties 568,183
Change in current taxes 39,463
Change in net operating income (120,731 )
Change in administrative expenses (62,046 )
Change in expenses related to strategic review (531,923 )
Other items (9,499 )
Change in net income $ (834,331 )

NET OPERATING INCOME

Net operating income for the year ended April 30, 2014 was reduced compared with the previous year, decreasing $120,731 to $3,367,305 compared to $3,488,036 in 2013, principally as a result of reduced revenue.

ADJUSTED FUNDS FROM OPERATIONS

Year ended
April 30, 2014
2014 2013
Funds from operations $ 1,338,255 $ 2,022,991
Items not affecting cash:
Straight line rent 10,562 (66,128 )
Sustaining capital expenditures (14,707 ) (19,248 )
Adjusted funds from operations $ 1,334,110 $ 1,937,615
Adjusted funds from operations per share $ 0.74 $ 1.07

For the year ended April 30, 2014 the Company recorded adjusted funds from operations of $1,334,110 ($0.74 per share) compared to $1,937,615 ($1.07 per share) in 2013. This decrease is largely the result of the costs of a strategic review during the year amounting to $531,923 as described below.

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. This process has not reached any conclusion and is ongoing. In support of this process an engineering firm has conducted property condition surveys and environmental assessments of all properties. Management believes none of these assessments have found any circumstances that require immediate remediation to meet currently legislated environmental obligations.

As at April 30, 2014 legal and engineering costs of $531,923 had been incurred in connection with the potential sale of the Company.

The Company's annual financial statements for the year ended April 30, 2014, 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

Contact Information

  • The Becker Milk Company Limited
    G.W.J. Pottow
    President
    416-698-2591