The Becker Milk Company Limited
TSX : BEK.B

March 15, 2013 13:32 ET

The Becker Milk Company Limited: Nine Month Financial Results and Regular Dividends

TORONTO, ONTARIO--(Marketwire - March 15, 2013) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ending January 31, 2013 and an increase in the semi-annual regular dividend.

HIGHLIGHTS

  • Total revenues for the nine months ended January 31, 2013 were $3,078,510 compared to $3,128,671 for the same period in 2012;
  • Net operating income for the year-to-date period was $2,641,255 compared to $2,642,749 in 2012;
  • Adjusted funds from operations were $0.83 per share, compared to $0.74 per share in 2012.

FINANCIAL HIGHLIGHTS

Nine months ended Jan 31
2013 2012
Property revenue $ 3,024,383 $ 3,081,839
Finance income 54,127 46,832
Total revenues $ 3,078,510 $ 3,128,671
Property revenue $ 3,024,383 $ 3,081,839
Property operating expenses (383,128 ) (439,090 )
Net operating income $ 2,641,255 $ 2,642,749
Adjusted funds from operations $ 1,508,389 $ 1,329,744
Net income attributable to common and special shareholders $ 646,637 $ 1,939,018
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.36 $ 1.07

Significant components of the $1,292,381 decrease in net income between the nine months ended January 31, 2013 compared to the nine months ended January 31, 2012 are:

Change in fair value of investment properties $ (1,369,244 )
Change in deferred taxes on investment properties (136,600 )
Net operating income (1,494 )
Administrative expenses 95,766
Provision for current income taxes 111,895
Other items 7,296
Change in net income $ (1,292,381 )

NET OPERATING INCOME

Net operating income for the nine months ended January 31, 2013, decreased by $1,494 to $2,641,255 compared to $2,642,749 in 2012. During the current period lower rental revenues were offset by reduced property operating and administrative expenses.

ADJUSTED FUNDS FROM OPERATIONS

Nine months ended Jan 31
2013 2012
Net income attributable to common and special shareholders $ 646,637 $ 1,939,018
Items not affecting cash:
Fair value losses on investment properties 662,603 (706,641 )
Deferred income taxes 286,236 149,636
Straight line rent (67,839 ) (19,379 )
Sustaining capital expenditures (19,248 ) (32,890 )
Adjusted funds from operations $ 1,508,389 $ 1,329,744
Adjusted funds from operations per share $ 0.83 $ 0.74

For the nine months ended January 31, 2013 the Company recorded Adjusted funds from operations of $1,508,389 ($0.83 per share) compared to $1,329,744 ($0.74 per share) in 2012. This increase is largely the result of higher operating income combined with reduced sustaining capital expenditures.

DIVIDEND

The Directors of the Company have declared a regular dividend on Class B Special and Common Shares of 40 cents per share. This is an increase of 5 cents per share semi-annually. The regular dividend of 40 cents will be paid to those shareholders of record as of March 26th, 2013 and payable on April 8th, 2013.

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

The Company's interim unaudited financial statements for the nine months ended January 31, 2013, 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