The Becker Milk Company Limited
TSX : BEK.B

September 11, 2014 09:00 ET

The Becker Milk Company Limited: Three Month Financial Results and Regular Dividend

TORONTO, ONTARIO--(Marketwired - Sept. 11, 2014) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the three months ended July 31, 2014.

HIGHLIGHTS

  • Total revenues for the three months ended July 31, 2014 were $976,569 compared to $989,081 for the same period in 2013;
  • Net operating income for Q1 fiscal 2015 was $874,851 compared to $845,812 in 2014;
  • Net income for Q1 fiscal 2015 was $ 0.10 per share, compared to $0.15 per share in 2014.

FINANCIAL HIGHLIGHTS

Three months ended
July 31
2014 2013
Property revenue $ 971,533 $ 971,842
Finance income 5,036 17,239
Total revenues $ 976,569 $ 989,081
Property revenue $ 971,533 $ 971,842
Property operating expenses (96,682 ) (126,030 )
Net operating income $ 874,851 $ 845,812
Adjusted funds from operations $ 386,441 $ 422,375
Net income attributable to common and special shareholders $ 181,003 $ 274,351
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.10 $ 0.15

Significant components of the $93,348 decrease in net income between the three months ended July 31, 2014 compared to the three months ended July 31, 2013 are:

Changes in net income - three months ended July 31, 2014 compared to three months ended July 31, 2013

Change in fair value of investment properties (94,690 )
Change in deferred taxes on investment properties 28,586
Change in current taxes (28,559 )
Change in net operating income 29,039
Change in administrative expenses (20,027 )
Change in expenses related to strategic review 4,626
Other items (12,203 )
Change in net income ($93,348 )

NET OPERATING INCOME

Net operating income for the three months ended July 31, 2014 was higher compared with the previous year, increasing $29,039 to $874,851 compared to $845,812 in 2013, principally as a result of reduced property operating expenses.

ADJUSTED FUNDS FROM OPERATIONS

Three months ended
July 31
2014 2013
Funds from operations $ 413,141 $ 440,265
Items not affecting cash:
Straight line rent 15,590 (17,890 )
Sustaining capital expenditures (42,290 )
Adjusted funds from operations $ 386,441 $ 422,375
Adjusted funds from operations per share $ 0.21 $ 0.23

For the three months ended July 31, 2014 the Company recorded adjusted funds from operations of $386,441 ($0.22 per share) compared to $422,375 ($0.23 per share) in 2013. Lower 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 July 31, 2014 legal and engineering costs of $537,366 had been incurred in connection with the potential sale of the Company.

DIVIDEND

The Directors of the Company have declared the regular semi-annual dividend on Class B Special and Common Shares of 40 cents per share. This dividend of 40 cents will be paid to those shareholders of record as of September 24, 2014 and payable on October 7, 2014.

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

The Company's interim financial statements for the three months ended July 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 a nd 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