TORONTO, Sept. 13, 2019 (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, 2019.
HIGHLIGHTS
- Total revenues for the three months ended July 31, 2019 were $797,868 compared to $769,250 for the same period in 2018;
- Net operating income for Q1 fiscal 2020 was $671,539 compared to $625,269 in fiscal 2019;
- Net income for Q1 fiscal 2020 was $ 0.13 per share, compared to $0.07 per share in fiscal 2019.
FINANCIAL HIGHLIGHTS
Net operating income for the three months ended July 31, 2019 increased $46,270 compared with the previous year to $671,539, as a result of increased revenue and a decline in property operating expenses for the quarter.
| Three months ended | ||||
| July 31 | ||||
| 2019 | 2018 | |||
| Property revenue | $772,534 | $750,064 | ||
| Finance income | 25,334 | 19,186 | ||
| Total revenues | $797,868 | $769,250 | ||
| Property revenue | $772,534 | $750,064 | ||
| Property operating expenses | (100,995) | (124,795) | ||
| Net operating income | $671,539 | $625,269 | ||
| Adjusted funds from operations | $285,212 | $243,581 | ||
| Net income attributable to common and special shareholders | $233,447 | $133,350 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||
| Income per share | $0.13 | $0.07 | ||
Components of the $100,097 increase in net income for the three months ended July 31, 2019 compared to the three months ended July 31, 2018 are:
| Changes in net income - Three months ended July 31, 2019 | ||
| compared to three months ended July 31, 2018 | ||
| Increase in recovery of deferred taxes on investment properties | 195,317 | |
| Decrease in fair value adjustment | 104,156 | |
| Increase in net operating income | 46,270 | |
| Increase in finance income | 6,148 | |
| Increase in strategic expenses | (4,534) | |
| Increase in administrative expenses | (13,470) | |
| Increase in loss on disposal | (25,708) | |
| Increase in current taxes | (208,082) | |
| Increase in net income | $100,097 | |
ADJUSTED FUNDS FROM OPERATIONS
For the three months ended July 31, 2019 the Company recorded adjusted funds from operations of $285,212 ($0.16 per share) compared to $243,581 ($0.13 per share) in 2018.
| Adjusted funds from operations | ||||
| Three months ended | ||||
| July 31 | ||||
| 2019 | 2018 | |||
| Funds from operations | $291,684 | $269,675 | ||
| Items not affecting cash: | ||||
| Expenses related to strategic review | (6,472) | (1,938) | ||
| Sustaining capital expenditures | (24,156) | |||
| Adjusted funds from operations | $285,212 | $243,581 | ||
| Adjusted funds from operations per share | $0.16 | $0.13 | ||
STRATEGIC REVIEW
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and has engaged in discussions with potential acquirers. 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 20 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 24, 2019 and payable on October 4, 2019.
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, 2019, 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
