The Becker Milk Company Limited
TSX : BEK.B

December 10, 2014 12:20 ET

The Becker Milk Company Limited: Six Month Financial Results

TORONTO, ONTARIO--(Marketwired - Dec. 10, 2014) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2014.

HIGHLIGHTS

  • Total revenues for the six months ended October 31, 2014 were $1,951,316 compared to $1,979,695 for the same period in 2013;
  • Net operating income for the period was $1,725,966 compared to $1,683,457 in 2013;
  • Net income for the period was $ 0.29 per share, compared to $0.23 per share in 2013.

FINANCIAL HIGHLIGHTS

Six months ended
October 31
2014 2013
Property revenue $1,945,533 $1,944,273
Finance income 5,783 35,422
Total revenues $1,951,316 $1,979,695
Property revenue $1,945,533 $1,944,273
Property operating expenses (219,567) (260,816)
Net operating income $1,725,966 $1,683,457
Adjusted funds from operations $793,641 $853,379
Net income attributable to common and special shareholders $517,787 $419,584
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $0.29 $0.23

Significant components of the $98,203 increase in net income between the six months ended October 31, 2014 compared to the six months ended October 31, 2013 are:

Changes in net income - six months ended October 31, 2014 compared to six months ended October 31, 2013
Change in investment properties fair value adjustment 130,564
Change in deferred taxes on investment properties (8,614)
Change in current taxes (13,018)
Change in net operating income 42,509
Change in administrative expenses (26,808)
Change in finance income (29,639)
Other items 3,209
Change in net income $98,203

NET OPERATING INCOME

Net operating income for the six months ended October 31, 2014 was higher compared with the previous year, increasing $42,509 to $1,725,966 compared to $1,683,457 in 2013, principally as a result of reduced property operating expenses.

ADJUSTED FUNDS FROM OPERATIONS

Six months ended
October 31
2014 2013
Funds from operations $857,658 $884,614
Items not affecting cash:
Straight line rent 31,179 (16,528)
Sustaining capital expenditures (95,196) (14,707)
Adjusted funds from operations $793,641 $853,379
Adjusted funds from operations per share $0.44 $0.47

For the six months ended October 31, 2014 the Company recorded adjusted funds from operations of $793,641 ($0.44 per share) compared to $853,379 ($0.47 per share) in 2013. Reduced funds from operations and higher sustaining capital expenditures were partially offset by a reversal of the non-cash adjustment for straight line rent.

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. 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 October 31, 2014 legal and engineering costs of $538,783 had been incurred in connection with the potential sale of the Company.

The Company's interim financial statements for the six months ended October 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
    Tel: 416-698-2591