The Becker Milk Company Limited
TSX : BEK.B

July 28, 2016 13:55 ET

The Becker Milk Company Limited: 2016 Annual Financial Results

TORONTO, ONTARIO--(Marketwired - July 28, 2016) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the year ended April 30, 2016.

HIGHLIGHTS

  • Total revenues for the year ended April 30, 2016 were $3,786,257 compared to $3,968,896 for the same period in 2015;
  • Net operating income for the year was $3,253,334 compared to $3,475,361 in 2015;
  • Net income for the year was $1.49 per share, compared to $1.01 per share in 2015.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2016 decreased $222,027 compared with the previous year to $3,253,334, as a result of decreased revenue partially offset by reduced operating costs.

Year ended
April 30
2016 2015
Property revenue $3,766,437 $3,952,076
Finance income 19,820 16,820
Total revenues $3,786,257 $3,968,896
Property revenue $3,766,437 $3,952,076
Property operating expenses (513,103 ) (476,715 )
Net operating income $3,253,334 $3,475,361
Adjusted funds from operations $1,475,235 $1,518,157
Net income attributable to common and special shareholders $2,697,023 $1,834,215
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $1.49 $1.01

Components of the $862,808 increase in net income for the year ended April 30, 2016 compared to the year ended April 30, 2015 are:

Changes in net income - Year ended April 30, 2016
compared to Year ended April 30, 2015
Increase in fair value adjustment 1,181,550
Decrease in expenses related to strategic review 45,434
Decrease in current taxes 71,817
Increase in finance income 3,000
Increase in administrative expenses (7,801 )
Increase in losses on disposal (14,360 )
Increase in deferred taxes on investment properties (194,805 )
Decrease in net operating income (222,027 )
Increase in net income $862,808

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2016 the Company recorded adjusted funds from operations of $1,475,235 ($0.82 per share) compared to $1,518,157 ($0.84 per share) in 2015

Year ended
April 30
2016 2015
Funds from operations $1,465,627 $1,575,204
Items not affecting cash:
Straight line rent 54,103 53,081
Sustaining capital expenditures (44,495 ) (110,128 )
Adjusted funds from operations $1,475,235 $1,518,157
Adjusted funds from operations per share $0.82 $0.84

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. The Company previously announced that PWC had completed the initial steps in the sale process and that the Company was engaged in advanced discussions with a single potential acquirer. Although those discussions were terminated in fiscal 2016, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.

As at April 30, 2016 total legal and engineering costs of $825,815 had been incurred in connection with the potential sale of the Company.

The Company's annual financial statements for the year ended April 30, 2016, 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