TORONTO, Sept. 14, 2018 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the âCompanyâ) (TSX-BEK.B) is pleased to report the results for the three months ended July 31, 2018.
HIGHLIGHTS
- Total revenues for the three months ended July 31, 2018 were $769,250 compared to $894,428 for the same period in 2017;
- Net operating income for Q1 fiscal 2019 was $625,269 compared to $764,803 in fiscal 2018;
- Net income for Q1 fiscal 2019 was $ 0.07 per share, compared to $0.27 per share in fiscal 2018.
FINANCIAL HIGHLIGHTS
Net operating income for the three months ended July 31, 2018 decreased $139,534 compared with the previous year to $625,269, as a result of decreased revenue, resulting from the sale of properties.
| Three months ended | ||||||||||||
| July 31 | ||||||||||||
| 2018 | 2017 | |||||||||||
| Property revenue | $750,064 | $889,476 | ||||||||||
| Finance income | 19,186 | 4,952 | ||||||||||
| Total revenues | $769,250 | $894,428 | ||||||||||
| Property revenue | $750,064 | $889,476 | ||||||||||
| Property operating expenses | (124,795) | (124,673) | ||||||||||
| Net operating income | $625,269 | $764,803 | ||||||||||
| Adjusted funds from operations | $243,581 | $365,356 | ||||||||||
| Net income attributable to common and special shareholders | $133,350 | $484,748 | ||||||||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||||||||
| Income per share | $0.07 | $0.27 | ||||||||||
Components of the $351,398 decrease in net income for the three months ended July 31, 2018 compared to the three months ended July 31, 2017 are:
| Changes in net income – Three months ended July 31, 2018 | |||||||||
| compared to three months July 31, 2017 | |||||||||
| Decrease in net operating income | ($139,534) | ||||||||
| Decrease in fair value adjustment | (279,976) | ||||||||
| Increase in administrative expenses | (23,564) | ||||||||
| Decrease in current taxes | 41,573 | ||||||||
| Increase in recovery of deferred taxes on investment properties | 26,046 | ||||||||
| Increase in finance income | 14,234 | ||||||||
| Decrease in loss on disposal | 7,470 | ||||||||
| Decrease in strategic expenses | 2,353 | ||||||||
| Decrease in net income | ($351,398) | ||||||||
ADJUSTED FUNDS FROM OPERATIONS
For the three months ended July 31, 2018 the Company recorded adjusted funds from operations of $243,581 ($0.13 per share) compared to $365,356 ($0.20 per share) in 2017.
| Three months ended | ||||||||||
| July 31 | ||||||||||
| 2018 | 2017 | |||||||||
| Funds from operations | $269,675 | $369,647 | ||||||||
| Items not affecting cash: | ||||||||||
| Straight line rent | – | 0 | ||||||||
| Expenses related to strategic review | (1,938) | 4,291 | ||||||||
| Sustaining capital expenditures | (24,156) | 0 | ||||||||
| Adjusted funds from operations | $243,581 | $365,356 | ||||||||
| Adjusted funds from operations per share | $0.13 | $0.20 | ||||||||
STRATEGIC REVIEW
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and has engaged in discussions with potential acquirors. None of those discussions are active at this time. During this period a programme of divesting less desirable sites has resulted in the sale of 15 investment properties. 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, 2018 and payable on October 01, 2018.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Companyâs interim financial statements for the three months ended July 31, 2018, along with the Managementâs Discussion and Analysis will be filed with SEDAR at www.sedar.com.
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