TORONTO, Sept. 09, 2021 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the three months ended July 31, 2021.

HIGHLIGHTS

  • Total revenues for the three months ended July 31, 2021 were $728,422 compared to $768,472 for the same period in 2020;
  • Net income for Q1 fiscal 2022 was $0.13 per share, compared to $0.15 per share in fiscal 2021;
  • The non-GAAP financial measure Net Operating Income for Q1 fiscal 2022 was $606,740 compared to $639,922 in fiscal 2021.

FINANCIAL HIGHLIGHTS

Revenues and net income

Total revenues for the three months ended July 31, 2021 declined $40,050 compared to the three months ended July 31, 2020, a result of reduced property revenue and finance income.

     Three months ended
     July 31
      2021  2020
Property revenue   $717,407 $737,933
Finance income    11,015  30,539
Total revenues   $728,422 $768,472
        
Net income attributable to common and special shareholders$232,921 $268,108
        
Average common and special shares outstanding 1,808,360  1,808,360
        
Income per share   $0.13 $0.15

Components of the $35,187 decrease in net income for the three months ended July 31, 2021 compared to the three months ended July 31, 2020 are:

Changes in net income - Three months ended July 31, 2021 
compared to three months ended July 31, 2020
       
Decrease in net operating income ($33,182) 
Decrease in finance income  (19,524) 
Decrease in the fair value adjustment (16,000) 
Decrease in current taxes   5,691  
Decrease in deferred taxes  4,110  
Decrease in administrative expenses 23,718  
Increase in net income  ($35,817) 

Non-GAAP financial measures

Net operating income

The non-GAAP financial measure Net Operating Income for the three months ended July 31, 2021 was $606,740, a $33,182 decrease compared with the previous year as a result of decreased revenue for the quarter.

     Three months ended
     July 31
      2021   2020 
Property revenue   $717,407  $737,933 
Property operating expenses  (110,667)  (98,011)
Net operating income  $606,740  $639,922 

Funds from operations and adjusted funds from operations

For the three months ended July 31, 2021 the Company recorded funds from operations and adjusted funds from operations of $218,793 ($0.12 per share) compared to $242,090 ($0.13 per share) in 2020.

     Three months ended
     July 31
      2021   2020 
Net income   $232,921  $268,108 
Add (deduct) items not affecting cash:   
 Fair value adjustment to investment properties (19,000)  (35,000)
 Deferred income taxes  4,872   8,982 
Funds from operations  $218,793  $242,090 
Adjusted funds from operations $218,793  $242,090 
        
Adjusted funds from operations per share$0.12  $0.13 

STRATEGIC REVIEW

The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirors. None of those discussions are active at this time. The Board has followed a programme of divesting less desirable sites, which has resulted in the sale of 25 investment properties over the past 7 years. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.

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 21, 2021 and payable on September 30, 2021.

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, 2021, 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
Tel: 416-698-2591