The Becker Milk Company Limited
TSX : BEK.B

December 12, 2016 14:00 ET

The Becker Milk Company Limited: Six Month Financial Results

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2016.

HIGHLIGHTS

  • Total revenues for the six months ended October 31, 2016 were $1,875,441 compared to $1,987,545 for the same period in 2015;
  • Net operating income for Q1 fiscal 2017 was $1,604,572 compared to $1,721,981 in fiscal 2016;
  • Net income for Q1 fiscal 2017 was $ 0.22 per share, compared to $ 0.30 per share in fiscal 2016.

FINANCIAL HIGHLIGHTS

Net operating income for the six months ended October 31, 2016 decreased $117,409 compared with the previous year to $1,604,572, as a result of decreased revenue and increased property operating costs.

Six months ended
October 31
2016 2015
Property revenue $ 1,864,860 $ 1,976,657
Finance income 10,581 10,888
Total revenues $ 1,875,441 $ 1,987,545
Property revenue $ 1,864,860 $ 1,976,657
Property operating expenses (260,288) (254,676)
Net operating income $ 1,604,572 $ 1,721,981
Adjusted funds from operations $ 650,221 $ 787,581
Net income attributable to common and special shareholders $ 400,291 $ 548,043
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.22 $ 0.30

Components of the $147,752 decrease in net income for the six months ended October 31, 2016 compared to the six months ended October 31, 2015 are:

Changes in net income - Six months ended ended October 31, 2016
compared to six months ended October 31, 2015

Decrease in net operating income (117,409)
Decrease in fair value adjustment (153,530)
Increase in administrative expenses (68,633)
Decrease in expenses related to strategic review $ 124,229
Decrease in deferred taxes on investment properties 45,267
Decrease in current taxes 27,290
Decrease in finance income (307)
Increase in loss on disposal (4,659)
Decrease in net income $ (147,752)

ADJUSTED FUNDS FROM OPERATIONS

For the six months ended October 31, 2016 the Company recorded adjusted funds from operations of $650,221 ($0.36 per share) compared to $787,581 ($0.44 per share) in 2015.

Six months ended
October 31
2016 2015
Funds from operations $ 722,891 $ 757,721
Items not affecting cash:
Straight line rent 22,556 29,860
Sustaining capital expenditures (95,226) 0
Adjusted funds from operations $ 650,221 $ 787,581
Adjusted funds from operations per share $ 0.36 $ 0.44

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. The Company previously announced that PWC had completed the initial steps in the sale process and that the Company was engaged in advanced discussions with a single potential acquirer. Although those discussions were terminated in fiscal 2016, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.

As at October 31, 2016 total legal and engineering costs of $825,815 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, 2016, 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