The Becker Milk Company Limited: Nine Month Financial Results and Dividend
18 March 2014 - 2:26AM
Marketwired
The Becker Milk Company Limited: Nine Month Financial Results and
Dividend
TORONTO, ONTARIO--(Marketwired - Mar 17, 2014) - 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
|
Nine months ended |
|
|
January 31 |
|
|
2014 |
|
2013 |
|
Property revenue |
$ |
2,945,085 |
|
$ |
3,024,383 |
|
Finance income |
|
48,377 |
|
|
54,127 |
|
Total revenues |
$ |
2,993,462 |
|
$ |
3,078,510 |
|
|
|
Property revenue |
$ |
2,945,085 |
|
$ |
3,024,383 |
|
Property operating expenses |
|
(401,609 |
) |
|
(383,128 |
) |
Net operating income |
$ |
2,543,476 |
|
$ |
2,641,255 |
|
|
|
Adjusted funds from operations |
$ |
977,596 |
|
$ |
1,530,621 |
|
|
|
Net income attributable to common and special
shareholders |
$ |
406,870 |
|
$ |
646,637 |
|
|
|
Average common and special shares outstanding |
|
1,808,360 |
|
|
1,808,360 |
|
|
|
Income per share |
$ |
0.22 |
|
$ |
0.36 |
|
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
|
|
|
|
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
|
Nine months ended |
|
|
January 31 |
|
|
2014 |
|
2013 |
|
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 |
) |
|
|
|
Adjusted funds from operations |
$ |
977,596 |
|
$ |
1,530,621 |
|
|
|
Adjusted funds from operations per share |
$ |
0.54 |
|
$ |
0.85 |
|
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
The Becker Milk Company LimitedG.W.J.
PottowPresident416-698-2591
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