Becker Milk : Nine Month Financial Results and Dividend
March 09, 2016 at 12:20 pm EST
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TORONTO, ONTARIO--(Marketwired - Mar 9, 2016) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ended January 31, 2016.
HIGHLIGHTS
Total revenues for the nine months ended January 31, 2016 were $2,995,940 compared to $2,985,007 for the same period in 2015;
Net operating income for the period was $2,604,119 compared to $2,629,117 in 2015;
Net income for the period was $0.51 per share, compared to $0.61 per share in 2015.
FINANCIAL HIGHLIGHTS
Nine Months
January 31
2016
2015
Property revenue
$2,981,742
$2,974,264
Finance income
14,198
10,743
Total revenues
$2,995,940
$2,985,007
Property revenue
$2,981,742
$2,974,264
Property operating expenses
(377,623
)
(345,147
)
Net operating income
$2,604,119
$2,629,117
Adjusted funds from operations
$1,249,966
$1,188,216
Net income attributable to common and special shareholders
$923,096
$1,096,329
Average common and special shares outstanding
1,808,360
1,808,360
Income per share
$0.51
$0.61
Components of the $173,231 decrease in net income between the nine months ended January 31, 2016 compared to the nine months ended January 31, 2015 are:
Changes in net income - Nine Months ended January 31, 2016
compared to Nine Months ended January 31, 2015
Decrease in deferred taxes on investment properties
$52,377
Decrease in administrative expenses
23,713
Decrease in expenses related to strategic review
12,459
Increase in finance income
3,455
Decrease in net operating income
(24,998
)
Increase in current taxes
(49,536
)
Increase in negative fair value adjustment
(190,701
)
Decrease in net income
($173,231
)
NET OPERATING INCOME
Net operating income for the nine months ended January 31, 2016 decreased $24,998 to $2,604,119 compared to $2,629,117 in 2015, principally as a result of higher property operating expenses.
ADJUSTED FUNDS FROM OPERATIONS
Nine Months
January 31
2016
2015
Funds from operations
$1,224,804
$1,259,711
Items not affecting cash:
Straight line rent
44,789
23,701
Sustaining capital expenditures
(19,625
)
(95,196
)
Adjusted funds from operations
$1,249,968
$1,188,216
Adjusted funds from operations per share
$0.69
$0.66
For the nine months ended January 31, 2016 the Company recorded adjusted funds from operations of $1,249,968 ($0.69 per share) compared to $1,188,216 ($0.66 per share) in 2015. A reduction in sustaining capital expenditures was the main component of this increase.
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. 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, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.
As at January 31, 2016 legal and engineering costs of $825,815 had been incurred in connection with the potential sale of the Company.
DIVIDEND
The Directors of the Company have declared a dividend on Class B Special and Common Shares of 40 cents per share. The dividend of 40 cents will be paid to those shareholders of record as of March 18, 2016 and payable on March 29, 2016.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Company's interim financial statements for the nine months ended January 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.
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 
