The Becker Milk Company Limited
TSX : BEK.B

July 13, 2017 17:30 ET

The Becker Milk Company Limited: 2017 Annual Financial Results and Change in Director

TORONTO, ONTARIO--(Marketwired - July 13, 2017) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the year ended April 30, 2017.

HIGHLIGHTS

  • Total revenues for the year ended April 30, 2017 were $3,679,266 compared to $3,786,257 for the same period in 2016;
  • Net operating income for the year was $3,115,911 compared to $3,253,334 in 2016;
  • Net income for the year was $1.25 per share, compared to $1.49 per share in 2016.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2017 decreased $137,423 compared with the previous year to $3,115,911, as a result of decreased revenue partially offset by reduced operating costs.

Year ended
April 30
2017 2016
Property revenue $3,656,548 $3,766,437
Finance income 22,718 19,820
Total revenues $3,679,266 $3,786,257
Property revenue $3,656,548 $3,766,437
Property operating expenses (540,637 ) (513,103 )
Net operating income $3,115,911 $3,253,334
Adjusted funds from operations $1,246,722 $1,475,235
Net income attributable to common and special shareholders $2,254,903 $2,697,023
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $1.25 $1.49

Components of the $442,120 increase in net income for the year ended April 30, 2017 compared to the year ended April 30, 2016 are:

Changes in net income - Year ended April 30, 2017
compared to year ended April 30, 2016

Decrease in net operating income ($137,423 )
Decrease in fair value adjustment (427,220 )
Increase in administrative expenses (148,286 )
Decrease in expenses related to strategic review 124,229
Increase in recovery of deferred taxes on investment properties 100,170
Decrease in current taxes 26,290
Increase in finance income 2,898
Decrease in loss on disposal 17,222
Decrease in net income ($442,120 )

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2017 the Company recorded adjusted funds from operations of $1,246,722 ($0.69 per share) compared to $1,475,235 ($0.82 per share) in 2016.

Year ended
April 30
2017 2016
Funds from operations $1,333,335 $1,465,627
Items not affecting cash:
Straight line rent 45,113 54,103
Sustaining capital expenditures (131,726 ) (44,495 )
Adjusted funds from operations $1,246,722 $1,475,235
Adjusted funds from operations per share $0.69 $0.82

CHANGE IN DIRECTOR

At its meeting on July 13, 2017, Mr. George Duguay was appointed to the Board of Directors to fill the vacancy created by the death of Mr. Duff Scott.

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, 2017 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, 2017, 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.

Contact Information

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