The Becker Milk Company Limited: Three Month Financial Results and Regular Dividend
September 12, 2017 at 05:31 pm EDT
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TORONTO, ONTARIO--(Marketwired - Sep 12, 2017) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the three months ended July 31, 2017.
HIGHLIGHTS
Total revenues for the three months ended July 31, 2017 were $894,428 compared to $938,205 for the same period in 2016;
Net operating income for Q1 fiscal 2018 was $764,803 compared to $799,054 in fiscal 2017;
Net income for Q1 fiscal 2018 was $0.27 per share, compared to $0.08 per share in fiscal 2017.
FINANCIAL HIGHLIGHTS
Net operating income for the three months ended July 31, 2017 decreased $34,251 compared with the previous year to $764,803, as a result of decreased revenue, resulting from the sale of properties, partially offset by decreased property operating costs.
Three months ended
July 31
2017
2016
Property revenue
$
889,476
$
934,589
Finance income
4,952
3,616
Total revenues
$
894,428
$
938,205
Property revenue
$
889,476
$
934,589
Property operating expenses
(124,673
)
(135,535
)
Net operating income
$
764,803
$
799,054
Adjusted funds from operations
$
375,747
$
310,907
Net income attributable to common and special shareholders
$
484,748
$
145,189
Average common and special shares outstanding
1,808,360
1,808,360
Income per share
$
0.27
$
0.08
Components of the $339,559 decrease in net income for the three months ended July 31, 2017 compared to the three months ended July 31, 2016 are:
Changes in net income - Three months ended July 31, 2017 compared to three months ended July 31, 2016
Decrease in net operating income
$
(34,251
)
Increase in fair value adjustment
380,768
Decrease in administrative expenses
54,005
Decrease in recovery of deferred taxes on investment properties
(11,616
)
Increase in current taxes
(43,581
)
Increase in finance income
1,336
Increase in loss on disposal
(2,811
)
Increase in strategic expenses
(4,291
)
Increase in net income
$
339,559
ADJUSTED FUNDS FROM OPERATIONS
For the three months ended July 31, 2017 the Company recorded adjusted funds from operations of $375,747 ($0.21 per share) compared to $310,907 ($0.17 per share) in 2016.
Three months ended
July 31
2017
2016
Funds from operations
$
380,038
$
369,855
Items not affecting cash:
Straight line rent
-
11,278
Expenses related to strategic review
(4,291
)
Sustaining capital expenditures
-
(70,226
)
Adjusted funds from operations
$
375,747
$
310,907
Adjusted funds from operations per share
$
0.21
$
0.17
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 July 31, 2017 total legal and engineering costs of $830,106 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 22, 2017 and payable on October 03, 2017.
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, 2017, 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.
The Becker Milk Company Limited is a Canada-based company, which is engaged in the ownership and management of retail commercial properties in Ontario, Canada. The Company primarily leases retail stores with a few residential sites. The Company owns and manages approximately 38 commercial properties in various southern Ontario communities. Its properties are single store sites with a few multi-store plazas, including one residential unit above a retail commercial store. The Company has leased to third parties 51 retail units, 36 of which were leased to Macâs Convenience Stores Inc. operating under their Macâs Convenience Stores brand (two stores) or their Circle K Stores brand (34 stores). The remaining 15 retail units and one residential unit were leased to other tenants.
THE BECKER MILK COMPANY LIMITED 
