TORONTO, March 12, 2019 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the âCompanyâ) (TSX-BEK.B) is pleased to report the results for the nine months ended January 31, 2019.
HIGHLIGHTS
- Total revenues for the nine months ended January 31, 2019 were $2,277,173 compared to $2,560,850 for the same period in 2018;
- Net operating income for Q3 fiscal 2019 was $1,840,617 compared to $2,139,917 in fiscal 2018;
- Net income for Q3 fiscal 2019 was $ 0.39 per share, compared to $0.61 per share in fiscal 2018.
FINANCIAL HIGHLIGHTS
Net operating income for the nine months ended January 31, 2019 decreased $299,300 compared with the previous year to $1,840,617, as a result of decreased revenue, resulting from vacancies and the sale of less desirable properties.
| Nine months ended | |||||||||||||
| January 31 | |||||||||||||
| 2019 | 2018 | ||||||||||||
| Property revenue | $2,204,756 | $2,533,628 | |||||||||||
| Finance income | 72,417 | 27,222 | |||||||||||
| Total revenues | $2,277,173 | $2,560,850 | |||||||||||
| Property revenue | $2,204,756 | $2,533,628 | |||||||||||
| Property operating expenses | (364,139 | ) | (393,711 | ) | |||||||||
| Net operating income | $1,840,617 | $2,139,917 | |||||||||||
| Adjusted funds from operations | $766,017 | $943,241 | |||||||||||
| Net income attributable to common and special shareholders | $704,817 | $1,103,368 | |||||||||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||||||||||
| Income per share | $0.39 | $0.61 | |||||||||||
Components of the $398,551 decrease in net income for the nine months ended January 31, 2019 compared to the six months ended October 31, 2018 are:
| Changes in net income – Nine months ended January 31, 2019 | |||||||
| compared to nine months ended January 31, 2018 | |||||||
| Decrease in net operating income | ($299,300 | ) | |||||
| Decrease in fair value adjustment | (471,156 | ) | |||||
| Increase in administrative expenses | (58,324 | ) | |||||
| Decrease in recovery of deferred taxes on investment properties | 5,191 | ||||||
| Decrease in loss on disposal | 24,385 | ||||||
| Decrease in strategic expenses | 26,117 | ||||||
| Increase in finance income | 45,195 | ||||||
| Decrease in current taxes | 85,304 | ||||||
| Increase in gain on expropriation settlement | 244,037 | ||||||
| Decrease in net income | ($398,551 | ) | |||||
ADJUSTED FUNDS FROM OPERATIONS
For the nine months ended January 31, 2019 the Company recorded adjusted funds from operations of $766,017 ($0.42 per share) compared to $943,241 ($0.52 per share) in 2018.
| Nine months ended | |||||||||||||
| January 31 | |||||||||||||
| 2019 | 2018 | ||||||||||||
| Funds from operations | $792,111 | $1,000,296 | |||||||||||
| Items not affecting cash: | |||||||||||||
| Straight line rent | – | – | |||||||||||
| Expenses related to strategic review | (1,938 | ) | (28,055 | ) | |||||||||
| Sustaining capital expenditures | (24,156 | ) | (29,000 | ) | |||||||||
| Sustaining capital expenditures | |||||||||||||
| Adjusted funds from operations | $766,017 | $943,241 | |||||||||||
| Adjusted funds from operations per share | $0.42 | $0.52 | |||||||||||
STRATEGIC REVIEW
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and in discussions with potential acquirors from time to time. During this period a programme of divesting less desirable sites has resulted in the sale of 18 investment properties. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.
The Companyâs interim financial statements for the nine months ended January 31, 2019, along with the Managementâs Discussion and Analysis will be filed with SEDAR at www.sedar.com.
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 20, 2019 and payable on March 28, 2019.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
Readers are cautioned that although the terms âNet Operating Incomeâ, and âFunds From Operationsâ 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 Managementâs 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