The Becker Milk Company Limited
TSX : BEK.B

March 17, 2014 11:26 ET

The Becker Milk Company Limited: Nine Month Financial Results and Dividend

TORONTO, ONTARIO--(Marketwired - March 17, 2014) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ended January 31, 2014.

HIGHLIGHTS

  • Total revenues for the nine months ended January 31, 2014 were $2,993,462 compared to $3,078,510 for the same period in 2013;
  • Net operating income in Q3 2014 was $2,543,476 compared to $2,641,255 in 2013;
  • Adjusted funds from operations in Q3 2014 were $0.54 per share, compared to $0.85 per share in 2013.

FINANCIAL HIGHLIGHTS

Nine months ended
January 31
2014 2013
Property revenue $ 2,945,085 $ 3,024,383
Finance income 48,377 54,127
Total revenues $ 2,993,462 $ 3,078,510
Property revenue $ 2,945,085 $ 3,024,383
Property operating expenses (401,609 ) (383,128 )
Net operating income $ 2,543,476 $ 2,641,255
Adjusted funds from operations $ 977,596 $ 1,530,621
Net income attributable to common and special shareholders $ 406,870 $ 646,637
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.22 $ 0.36

Significant components of the $239,767 decrease in net income between the nine months ended January 31, 2014 compared to the nine months ended January 31, 2013 are:

Changes in net income - nine months ended January 31, 2014 compared to nine months ended January 31, 2013

Change in fair value of investment properties $ 12,607
Change in deferred taxes on investment properties 322,510
Change in current taxes 10,630
Change in net operating income (97,780 )
Change in administrative expenses (37,429 )
Change in expenses related to potential sale (444,556 )
Other items (5,749 )
Change in net income $ (239,767 )

NET OPERATING INCOME

Net operating income for the nine months ended January 31, 2014, decreased by $97,779 to $2,543,476 compared to $2,641,255 in 2013. The decrease was predominantly the result of both reduced rental revenues and increased property operating expenses.

ADJUSTED FUNDS FROM OPERATIONS

Adjusted funds from operations

Nine months ended
January 31
2014 2013
Funds from operations $ 1,020,592 $ 1,595,476
Items not affecting cash:
Straight line rent (28,289 ) (64,855 )
Sustaining capital expenditures (14,707 )
Adjusted funds from operations $ 977,596 $ 1,530,621
Adjusted funds from operations per share $ 0.54 $ 0.85

For the nine months ended January 31, 2014 the Company recorded Adjusted funds from operations of $977,596 ($0.54 per share) compared to $1,530,621 ($0.85 per share) in 2013. This decrease is largely the result of lower operating income and higher administrative expenses related to property surveys and environmental assessments.

SALE OF COMPANY

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.

To date legal and engineering costs of $444,556 have 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 28, 2014 and payable on April 10, 2014.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

The Company's quarterly financial statements for the nine months ended January 31, 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