TORONTO, Sept. 12, 2022 (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, 2022.
HIGHLIGHTS
- Total revenues for the three months ended July 31, 2022 were $697,122 compared to $728,422 for the same period in 2021.
- Net income for Q1 fiscal 2023 was $ 0.02 per share, compared to $ 0.13 per share in fiscal 2022.
- The non-GAAP financial measure Net Operating Income for Q1 fiscal 2023 was $592,376 compared to $606,740 in fiscal 2022.
FINANCIAL HIGHLIGHTS
Revenues and net income
Total revenues for the three months ended July 31, 2022 declined $31,300 compared to the three months ended July 31, 2022, a result of reduced property revenue from property disposals.
| Three months ended | |||||
| July 31 | |||||
| 2022 | 2021 | ||||
| Property revenue | $678,652 | $717,407 | |||
| Finance income | 18,470 | 11,015 | |||
| Total revenues | $697,122 | $728,422 | |||
| Net income attributable to common and special shareholders | $32,763 | $232,921 | |||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||
| Income per share | $0.02 | $0.13 | |||
Components of the $200,158 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, 2022 | ||
| compared to three months ended July 31, 2021 | ||
| Decrease in fair value adjustment | ($259,000) | |
| Increase in current taxes | (32,116) | |
| Increase in strategic review expenses | (14,440) | |
| Decrease in net operating income | (14,364) | |
| Increase loss on disposal | (10,254) | |
| Increase in finance income | 7,455 | |
| Decrease in administrative expenses | 7,864 | |
| Decrease in deferred tax charges | 114,697 | |
| Decrease in net income | ($200,158) | |
Non-GAAP financial measures
Net operating income
The non-GAAP financial measure Net Operating Income for the three months ended July 31, 2022 was $592,376, a $14,364 decrease compared with the previous year as a result of decreased revenue for the quarter.
| Three months ended | |||||||
| July 31 | |||||||
| 2022 | 2021 | ||||||
| Property revenue | $678,652 | $717,407 | |||||
| Property operating expenses | (86,276 | ) | (110,667 | ) | |||
| Net operating income | $592,376 | $606,740 | |||||
Funds from operations and adjusted funds from operations
For the three months ended July 31, 2022 the Company recorded funds from operations of $204,176 ($0.10 per share) compared to $246,493 ($0.14 per share) in 2021. Adjusted funds from operations were $189,736 ($0.10 per share) in the three months ended July 31, 2022 compared to $246,493 ($0.14 per share) in 2021.
| Three months ended | ||||||||
| July 31 | ||||||||
| 2022 | 2021 | |||||||
| Net income | $32,763 | $232,921 | ||||||
| Add (deduct) items not affecting cash: | ||||||||
| Fair value adjustment to investment properties | 240,000 | (19,000 | ) | |||||
| Loss (gain) on sale of investment properties | 10,254 | 0 | ||||||
| Tax on gains from sale of property | 30,984 | 27,700 | ||||||
| Deferred income taxes | (109,825 | ) | 4,872 | |||||
| Expenses related to strategic review | (14,440 | ) | 0 | |||||
| Adjusted funds from operations | $189,736 | $246,493 | ||||||
| Adjusted funds from operations per share | $0.10 | $0.14 | ||||||
STRATEGIC REVIEW
The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirers. While the Company has engaged in some discussions within the last year, 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 28 investment properties over the past 8 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, 2022 and payable on September 30, 2022.
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, 2022, 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
