The Becker Milk Company Limited

TSX : BEK.B


December 16, 2013 18:03 ET

The Becker Milk Company Limited: Six Month Financial Results

TORONTO, ONTARIO--(Marketwired - Dec. 16, 2013) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2013.

HIGHLIGHTS

  • Total revenues for the six months ended October 31, 2013 were $1,979,695 compared to $2,043,180 for the same period in 2012;
  • Net operating income in Q1 2013 was $1,683,458 compared to $1,766,732 in 2012;
  • Adjusted funds from operations in Q1 2013 were $0.47 per share, compared to $0.58 per share in 2012.

FINANCIAL HIGHLIGHTS

Six months ended
October 31
2013 2012
Property revenue $ 1,944,273 $ 2,007,794
Finance income 35,422 35,386
Total revenues $ 1,979,695 $ 2,043,180
Property revenue $ 1,944,273 $ 2,007,794
Property operating expenses (260,815 ) (241,062 )
Net operating income $ 1,683,458 $ 1,766,732
Adjusted funds from operations $ 843,310 $ 1,054,546
Net income attributable to common and special shareholders $ 419,584 $ 339
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.23 $ 0.00

Significant components of the $419,245 increase in net income between the six months ended October 31, 2013 compared to the six months ended October 31, 2012 are:

Changes in net income - six months ended October 31, 2013 compared to six months ended October 31, 2012

Change in fair value of investment properties $ 365,195
Change in deferred taxes on investment properties 267,971
Change in current taxes (97,302 )
Change in net operating income (83,274 )
Other items (33,345 )
Change in net income $ 419,245

NET OPERATING INCOME

Net operating income for the six months ended October 31, 2013, decreased by $83,274 to $1,683,458 compared to $1,766,732 in 2012. The decrease was predominantly the result of both reduced rental revenues and increased property operating expenses.

ADJUSTED FUNDS FROM OPERATIONS

Six months ended
October 31
2013 2012
Funds from operations $ 874,545 $ 1,088,466
Items not affecting cash:
Straight line rent (16,528 ) (33,920 )
Sustaining capital expenditures (14,707 )
Adjusted funds from operations $ 843,310 $ 1,054,546

For the six months ended October 31, 2013 the Company recorded Adjusted funds from operations of $843,310 ($0.47 per share) compared to $1,054,546 ($0.58 per share) in 2012. This decrease is largely the result of lower operating income and higher current taxes.

SALE OF COMPANY

As reported in a press release dated August 6, 2013 the Company has 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 been engaged to conduct a property condition survey and an environmental assessment of all properties at an estimated cost of $300,000.

The Company's quarterly financial statements for the six months ended October 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