TORONTO, ONTARIO--(Marketwire - Dec. 13, 2011) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ending October 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 October 31, 2011.
| HIGHLIGHTS |
- Total revenues for the six months ended October 31, 2011 were $1,988,053 compared to $2,012,888 for the same period in 2010;
- Total net operating income for the six months was $1,655,850 compared to $1,680,540 in 2010;
- Adjusted funds from operations for the six months were $0.44 per share, compared to $0.43 per share in 2010.
| FINANCIAL HIGHLIGHTS |
| Six months ended | ||||||||
| October 31 | ||||||||
| 2011 | 2010 | |||||||
| Property revenue | $ | 1,956,424 | $ | 1,985,863 | ||||
| Finance income | 31,629 | 27,025 | ||||||
| Total revenues | $ | 1,988,053 | $ | 2,012,888 | ||||
| Property revenue | $ | 1,956,424 | $ | 1,985,863 | ||||
| Property operating expenses | (300,573 | ) | (305,321 | ) | ||||
| Net operating income | $ | 1,655,851 | $ | 1,680,542 | ||||
| Adjusted funds from operations | $ | 786,959 | $ | 778,675 | ||||
| Net income attributable to common and special shareholders | $ | 783,996 | $ | 1,714,466 | ||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||||
| Income per share | $ | 0.43 | $ | 0.95 | ||||
Significant components of the $930,470 change in net income between the six months ended October 31, 2011 compared to the six months ended October 31, 2010 are:
| Change in fair value of investment properties | $ | (1,382,481 | ) | |
| Change in deferred taxes on investment properties | 491,246 | |||
| Net operating income | (24,689 | ) | ||
| Other items | (14,546 | ) | ||
| Change in net income | $ | (930,470 | ) |
NET OPERATING INCOME
Net operating income for the six months ended October 31, 2011, decreased by $24,691 to $1,655,851 compared to $1,680,542 in 2010. The decrease was predominantly the result of a one-time retroactive allowance to a significant tenant for rent amounts resulting from the successful completion of a number of lease renewal negotiations;
| ADJUSTED FUNDS FROM OPERATIONS |
| Six months ended | |||||||||
| October 31 | |||||||||
| 2011 | 2010 | ||||||||
| Net income attributable to common and special shareholders | $ | 783,996 | $ | 1,714,466 | |||||
| Items not affecting cash: | |||||||||
| Fair value gains on investment properties | 345,773 | (1,036,708 | ) | ||||||
| Deferred income taxes | (297,037 | ) | 194,209 | ||||||
| Straight line rent | (12,883 | ) | (22,522 | ) | |||||
| Sustaining capital expenditures | (32,890 | ) | (70,770 | ) | |||||
| Adjusted funds from operations | $ | 786,959 | $ | 778,675 | |||||
| Adjusted funds from operations per share | $ | 0.44 | $ | 0.43 | |||||
For the six months ended October 31, 2011 the Company recorded Adjusted funds from operations of $786,959 ($0.44 per share) compared to $778,675 ($0.43 per share) in 2010. This increase is largely the result of lower sustaining capital expenditures during the most recent period.
The Company's interim unaudited financial statements for the six months ended October 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.
For the Board of Directors
G.W.J. Pottow, President
Contact Information:
G.W.J. Pottow
President
416-698-2591