TORONTO, ONTARIO--(Marketwired - March 12, 2015) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ended January 31, 2015.
HIGHLIGHTS
- Total revenues for the nine months ended January 31, 2015 were $2,985,007 compared to $2,993,462 for the same period in 2014;
- Net operating income for the period was $2,629,117 compared to $2,543,476 in 2014;
- Net income for the period was $ 0.61 per share, compared to $0.22 per share in 2014.
FINANCIAL HIGHLIGHTS
| Nine months ended | ||||
| January 31 | ||||
| 2015 | 2014 | |||
| Property revenue | $2,974,264 | $2,945,085 | ||
| Finance income | 10,743 | 48,377 | ||
| Total revenues | $2,985,007 | $2,993,462 | ||
| Property revenue | $2,974,264 | $2,945,085 | ||
| Property operating expenses | (345,147 | ) | (401,609 | ) |
| Net operating income | $2,629,117 | $2,543,476 | ||
| Adjusted funds from operations | $1,188,216 | $977,596 | ||
| Net income attributable to common and special shareholders | $1,096,329 | $406,870 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||
| Income per share | $0.61 | $0.22 | ||
Components of the $689,459 increase in net income between the nine months ended January 31, 2015 compared to the nine months ended January 31, 2014 are:
Changes in net income - Nine months ended January 31, 2015 compared to Nine months ended January 31, 2014
| Change in investment properties fair value adjustment | 510,601 | |
| Change in deferred taxes on investment properties | (60,261 | ) |
| Change in current taxes | (100,175 | ) |
| Change in net operating income | 85,641 | |
| Change in administrative expenses | (16,581 | ) |
| Change in finance income | (37,634 | ) |
| Change in expenses related to strategic review | 307,868 | |
| Change in net income | $689,459 |
NET OPERATING INCOME
Net operating income for the nine months ended January 31, 2015 was higher compared with the previous year, increasing $85,641 to $2,629,117 compared to $2,543,476 in 2014, principally as a result of reduced property operating expenses.
ADJUSTED FUNDS FROM OPERATIONS
| Nine months ended | |||||
| January 31 | |||||
| 2015 | 2014 | ||||
| Funds from operations | $1,259,711 | $1,020,592 | |||
| Items not affecting cash: | |||||
| Straight line rent | 23,701 | (28,289 | ) | ||
| Sustaining capital expenditures | (95,196 | ) | (14,707 | ) | |
| Adjusted funds from operations | $1,188,216 | $977,596 | |||
| Adjusted funds from operations per share | $0.67 | $0.54 | |||
For the nine months ended January 31, 2015 the Company recorded adjusted funds from operations of $1,188,216 ($0.66 per share) compared to $977,596 ($0.54 per share) in 2014. The decrease in expenses related to the strategic review was the main component of this increase.
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. At this time the Company is engaged in ongoing discussions. 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 January 31, 2015 legal and engineering costs of $668,611 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 25, 2015 and payable on April 10, 2015.
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, 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