TORONTO, Dec. 13, 2021 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the six months ended October 31, 2021.
HIGHLIGHTS
- Total revenues for the six months ended October 31, 2021 were $1,454,704 compared to $1,524,336 for the same period in 2020;
- Net income for Q2 fiscal 2022 was $ 0.25 per share, compared to $ 0.23 per share in fiscal 2021.
- The non-GAAP financial measure Net Operating Income for Q2 fiscal 2022 was $1,211,929 compared to $1,296,169 in fiscal 2021;
FINANCIAL HIGHLIGHTS
Revenues and net income
Total revenues for the six months ended October 31, 2021 declined $69,632 compared to the six months ended October 31, 2020, a result of reduced property revenue and finance income.
| Six months ended | |||||||||
| October 31 | |||||||||
| 2021 | 2020 | ||||||||
| Property revenue | $1,434,893 | $1,478,222 | |||||||
| Finance income | 19,811 | 46,114 | |||||||
| Total revenues | $1,454,704 | $1,524,336 | |||||||
| Net income attributable to common and special shareholders | $444,734 | $416,983 | |||||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||||||
| Income per share | $0.25 | $0.23 | |||||||
Components of the $27,751 increase in net income for the six months ended October 31, 2021 compared to the six months ended October 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 | ($84,240 | ) | ||||||
| Decrease in finance income | (26,303 | ) | ||||||
| Increase in deferred taxes | (2,890 | ) | ||||||
| Decrease in strategic review expenses | 1,750 | |||||||
| Decrease in the fair value adjustment | 17,000 | |||||||
| Decrease in current taxes | 30,108 | |||||||
| Decrease in administrative expenses | 92,326 | |||||||
| Increase in net income | $27,751 | |||||||
Non-GAAP financial measures
Net operating income
The non-GAAP financial measure Net Operating Income for the six months ended October 31, 2021 was $1,211,929, a $84,240 decrease compared with the previous year as a result of decreased revenue and increased property operating expenses for the period.
| Net operating income | |||||||||||
| Six months ended | |||||||||||
| October 31 | |||||||||||
| 2021 | 2020 | ||||||||||
| Property revenue | $1,434,893 | $1,478,222 | |||||||||
| Property operating expenses | (222,964 | ) | (182,053 | ) | |||||||
| Net operating income | $1,211,929 | $1,296,169 | |||||||||
Adjusted funds from operations
For the six months ended October 31, 2021 the Company recorded adjusted funds from operations of $463,602 ($0.24 per share) compared to $448,211 ($0.25 per share) in 2020.
| Adjusted funds from operations | |||||||||||
| Six months ended | |||||||||||
| October 31 | |||||||||||
| 2021 | 2020 | ||||||||||
| Net income | $444,734 | $416,983 | |||||||||
| Add (deduct) items not affecting cash: | |||||||||||
| Fair value adjustment to investment properties | 11,000 | 28,000 | |||||||||
| Deferred income taxes | 7,868 | 4,978 | |||||||||
| Expenses related to strategic review | (1,750 | ) | |||||||||
| Sustaining capital expenditures | (34,000 | ) | |||||||||
| Adjusted funds from operations | $429,602 | $448,211 | |||||||||
| Adjusted funds from operations per share | $0.24 | $0.25 | |||||||||
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.
The Company’s interim financial statements for the six months ended October 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
