The Becker Milk Company Limited: Nine Month Financial Results and Dividend
18 March 2014 - 2:26AM
Marketwired Canada
The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report
the results for the nine months ended January 31, 2014.
HIGHLIGHTS
-- Total revenues for the nine months ended January 31, 2014 were
$2,993,462 compared to $3,078,510 for the same period in 2013;
-- Net operating income in Q3 2014 was $2,543,476 compared to $2,641,255 in
2013;
-- Adjusted funds from operations in Q3 2014 were $0.54 per share, compared
to $0.85 per share in 2013.
FINANCIAL HIGHLIGHTS
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Nine months ended
January 31
2014 2013
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Property revenue $ 2,945,085 $ 3,024,383
Finance income 48,377 54,127
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Total revenues $ 2,993,462 $ 3,078,510
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Property revenue $ 2,945,085 $ 3,024,383
Property operating expenses (401,609) (383,128)
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Net operating income $ 2,543,476 $ 2,641,255
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Adjusted funds from operations $ 977,596 $ 1,530,621
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Net income attributable to common and
special shareholders $ 406,870 $ 646,637
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Average common and special shares
outstanding 1,808,360 1,808,360
Income per share $ 0.22 $ 0.36
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Significant components of the $239,767 decrease in net income between the nine
months ended January 31, 2014 compared to the nine months ended January 31, 2013
are:
Changes in net income - nine months ended January 31, 2014 compared to nine
months ended January 31, 2013
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Change in fair value of investment properties $ 12,607
Change in deferred taxes on investment properties 322,510
Change in current taxes 10,630
Change in net operating income (97,780)
Change in administrative expenses (37,429)
Change in expenses related to potential sale (444,556)
Other items (5,749)
Change in net income $ (239,767)
NET OPERATING INCOME
Net operating income for the nine months ended January 31, 2014, decreased by
$97,779 to $2,543,476 compared to $2,641,255 in 2013. The decrease was
predominantly the result of both reduced rental revenues and increased property
operating expenses.
ADJUSTED FUNDS FROM OPERATIONS
Adjusted funds from operations
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Nine months ended
January 31
2014 2013
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Funds from operations $ 1,020,592 $ 1,595,476
Items not affecting cash:
Straight line rent (28,289) (64,855)
Sustaining capital expenditures (14,707)
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Adjusted funds from operations $ 977,596 $ 1,530,621
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Adjusted funds from operations per share $ 0.54 $ 0.85
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For the nine months ended January 31, 2014 the Company recorded Adjusted funds
from operations of $977,596 ($0.54 per share) compared to $1,530,621 ($0.85 per
share) in 2013. This decrease is largely the result of lower operating income
and higher administrative expenses related to property surveys and environmental
assessments.
SALE OF COMPANY
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. This process has not reached any conclusion and is ongoing. In support
of this process an engineering firm has conducted property condition surveys and
environmental assessments of all properties. Management believes none of these
assessments have found any circumstances that require immediate remediation to
meet currently legislated environmental obligations.
To date legal and engineering costs of $444,556 have 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 28, 2014 and payable on April 10, 2014.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Company's quarterly financial statements for the nine months ended January
31, 2014, 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
FOR FURTHER INFORMATION PLEASE CONTACT:
The Becker Milk Company Limited
G.W.J. Pottow
President
416-698-2591
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