The Becker Milk Company Limited
TSX : BEK.B

October 07, 2011 10:40 ET

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

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2011) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the three months ending July 31, 2011.

These results are, and all future results will be, reported under International Financial Reporting Standards (IFRS) and historical results have been restated to IFRS for comparison purposes. Reconciliations between IFRS and Canadian Generally Accepted Accounting Principles have been included in the Company's unaudited interim financial statements for the period ended July 31, 2011.

HIGHLIGHTS

  • Total revenues for the three months ended July 31, 2011 were $988,979 compared to $1,021,348 for the same period in 2010;
  • Total net operating income in Q1 2011 was $805,505 compared to $860,089 in Q1 2010;
  • Adjusted funds from operations in Q1 2011 were to $0.22 per share, compared to $0.19 per share in 2010.
FINANCIAL HIGHLIGHTS
Three months ended
July 31
2011 2010
Property revenue $ 976,492 $ 1,005,520
Finance income 12,487 15,828
Total revenues $ 988,979 $ 1,021,348
Property revenue $ 976,492 $ 1,005,520
Property operating expenses (170,988 ) (145,433 )
Net operating income $ 805,504 $ 860,087
Adjusted funds from operations $ 399,570 $ 346,652
Net income attributable to common and special shareholders $ 524,204 $ 1,081,936
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.29 $ 0.60

Significant components of the $557,732 change in net income between the three months ended July 31, 2011 compared to the three months ended July 31, 2010 are:

Change in fair value of investment properties $ (994,794 )
Change in deferred taxes on investment properties 459,350
Net operating income (54,583 )
Other items 32,295
Change in net income $ (557,732 )

NET OPERATING INCOME

Net operating income for the three months ended July 31, 2011, decreased by $54,583 to $805,504 compared to $860,087 in 2010. The decrease was predominantly the result of the following:

  • A one–time retroactive allowance to a significant tenant for rent amounts resulting from the successful completion of a number of lease renewal negotiations;
  • Higher non-recoverable property repair and maintenance expenses during the three months ended July 31, 2011.
ADJUSTED FUNDS FROM OPERATIONS
Three months ended
July 31
2011 2010
Net income attributable to common and special shareholders $ 524,204 $ 1,081,936
Items not affecting cash:
Fair value gains on investment properties 189,379 (805,415 )
Deferred income taxes (294,634 ) 164,716
Straight line rent (19,379 ) (23,815 )
Sustaining capital expenditures (70,770 )
Adjusted funds from operations $ 399,570 $ 346,652
Adjusted funds from operations per share $ 0.22 $ 0.19

For the three months ended July 31, 2011 the Company recorded Adjusted funds from operations of $399,570 ($0.22 per share) compared to $346,652 ($0,19 per share) in 2010. This increase is largely the result of lower sustaining capital expenditures during the most recent period.

DIVIDEND

The Directors of the Company have declared a regular semi-annual dividend on Class B Special and Common Shares of 35 cents per share. This is an increase of 5 cents per share semi-annually. This regular dividend of 35 cents will be paid to those shareholders of record as of October 20, 2011, and payable on October 31, 2011.

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

The Company's interim unaudited financial statements for the three months ended July 31, 2011, 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.

Contact Information

  • For the Board of Directors
    The Becker Milk Company Limited
    G.W.J. Pottow
    President
    416-698-2591