The Becker Milk Company Limited
TSX : BEK.B

July 02, 2015 09:15 ET

The Becker Milk Company Limited: 2015 Annual Financial Results

TORONTO, ONTARIO--(Marketwired - July 2, 2015) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the year ended April 30, 2015.

HIGHLIGHTS

  • Total revenues for the year ended April 30, 2015 were $3,968,896 compared to $3,948,809 for the same period in 2014;
  • Net operating income for the year was $3,475,361 compared to $3,367,305 in 2014;
  • Net income for the year for the year was $1.01 per share, compared to $0.09 per share in 2014.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2015 increased compared with the previous year by $108,056 to $3,475,361, as a result of both increased revenue and reduced operating costs.

Year ended
April 30
2015 2014
Property revenue $3,952,076 $3,887,131
Finance income 16,820 61,678
Total revenues $3,968,896 $3,948,809
Property revenue $3,952,076 $3,887,131
Property operating expenses (476,715 ) (519,826 )
Net operating income $3,475,361 $3,367,305
Adjusted funds from operations $1,518,157 $1,334,110
Net income attributable to common and special shareholders $1,834,215 $157,460
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $1.01 $0.09

Components of the $1,676,755 increase in net income for the year ended April 30, 2015 compared to the year ended April 30, 2014 are:

Changes in net income - Year ended April 30, 2015
compared to Year ended April 30, 2014
Increase in adjustment of fair value of investment properties 1,715,202
Decrease in expenses related to strategic review 362,260
Increase in net operating income 108,056
Decrease in loss on mortgage settlement 17,100
Decrease in loss on disposal 15,609
Increase in administrative expenses (528 )
Decrease in finance income (44,858 )
Increase in current taxes (187,981 )
Increase in deferred taxes on investment properties (308,105 )
Increase in net income $1,676,755

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2015 the Company recorded adjusted funds from operations of $1,518,157 ($0.84 per share) compared to $1,334,110 ($0.74 per share) in 2014

Year ended
April 30
2015 2014
Funds from operations $1,575,204 $1,338,255
Items not affecting cash:
Straight line rent 53,081 10,562
Sustaining capital expenditures (110,128 ) (14,707 )
Adjusted funds from operations $1,518,157 $1,334,110
Adjusted funds from operations per share $0.84 $0.74

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, 2015 total legal and engineering costs of $701,586 had been incurred in connection with the potential sale of the Company.

The Company's annual financial statements for the year ended April 30, 2015, 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

  • G.W.J. Pottow
    President
    416-698-2591