The Becker Milk Company Limited: Nine Month Financial Results and Dividend
By: Robert Diamond Mar. 09, 2016
TORONTO, ONTARIO(Marketwired - March 9, 2016) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ended January 31, 2016.
HIGHLIGHTS
- Total revenues for the nine months ended January 31, 2016 were $2,995,940 compared to $2,985,007 for the same period in 2015;
- Net operating income for the period was $2,604,119 compared to $2,629,117 in 2015;
- Net income for the period was $0.51 per share, compared to $0.61 per share in 2015.
FINANCIAL HIGHLIGHTS
| Nine Months | ||||
| January 31 | ||||
| 2016 | 2015 | |||
| Property revenue | $2,981,742 | $2,974,264 | ||
| Finance income | 14,198 | 10,743 | ||
| Total revenues | $2,995,940 | $2,985,007 | ||
| Property revenue | $2,981,742 | $2,974,264 | ||
| Property operating expenses | (377,623 | ) | (345,147 | ) |
| Net operating income | $2,604,119 | $2,629,117 | ||
| Adjusted funds from operations | $1,249,966 | $1,188,216 | ||
| Net income attributable to common and special shareholders | $923,096 | $1,096,329 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||
| Income per share | $0.51 | $0.61 | ||
Components of the $173,231 decrease in net income between the nine months ended January 31, 2016 compared to the nine months ended January 31, 2015 are:
| Changes in net income - Nine Months ended January 31, 2016 | ||
| compared to Nine Months ended January 31, 2015 | ||
| Decrease in deferred taxes on investment properties | $52,377 | |
| Decrease in administrative expenses | 23,713 | |
| Decrease in expenses related to strategic review | 12,459 | |
| Increase in finance income | 3,455 | |
| Decrease in net operating income | (24,998 | ) |
| Increase in current taxes | (49,536 | ) |
| Increase in negative fair value adjustment | (190,701 | ) |
| Decrease in net income | ($173,231 | ) |
NET OPERATING INCOME
Net operating income for the nine months ended January 31, 2016 decreased $24,998 to $2,604,119 compared to $2,629,117 in 2015, principally as a result of higher property operating expenses.
ADJUSTED FUNDS FROM OPERATIONS
| Nine Months | |||||
| January 31 | |||||
| 2016 | 2015 | ||||
| Funds from operations | $1,224,804 | $1,259,711 | |||
| Items not affecting cash: | |||||
| Straight line rent | 44,789 | 23,701 | |||
| Sustaining capital expenditures | (19,625 | ) | (95,196 | ) | |
| Adjusted funds from operations | $1,249,968 | $1,188,216 | |||
| Adjusted funds from operations per share | $0.69 | $0.66 | |||
For the nine months ended January 31, 2016 the Company recorded adjusted funds from operations of $1,249,968 ($0.69 per share) compared to $1,188,216 ($0.66 per share) in 2015. A reduction in sustaining capital expenditures was the main component of this increase.
STRATEGIC REVIEW
As reported in a press release dated August 6, 2013 the Company retained PricewaterhouseCoopers Real Estate Inc. to explore the possible sale of the Company. The Company previously announced that PWC had completed the initial steps in the sale process and that the Company was engaged in advanced discussions with a single potential acquirer. Although those discussions were terminated, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.
As at January 31, 2016 legal and engineering costs of $825,815 had been incurred in connection with the potential sale of the Company.
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 18, 2016 and payable on March 29, 2016.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Company's interim financial statements for the nine months ended January 31, 2016, 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
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