TORONTO, ONTARIO–(Marketwired – Dec. 12, 2016) – The Becker Milk Company Limited (the “Company”) (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2016.
HIGHLIGHTS
- Total revenues for the six months ended October 31, 2016 were $1,875,441 compared to $1,987,545 for the same period in 2015;
- Net operating income for Q1 fiscal 2017 was $1,604,572 compared to $1,721,981 in fiscal 2016;
- Net income for Q1 fiscal 2017 was $ 0.22 per share, compared to $ 0.30 per share in fiscal 2016.
FINANCIAL HIGHLIGHTS
Net operating income for the six months ended October 31, 2016 decreased $117,409 compared with the previous year to $1,604,572, as a result of decreased revenue and increased property operating costs.
| Six months ended | ||||
| October 31 | ||||
| 2016 | 2015 | |||
| Property revenue | $ | 1,864,860 | $ | 1,976,657 |
| Finance income | 10,581 | 10,888 | ||
| Total revenues | $ | 1,875,441 | $ | 1,987,545 |
| Property revenue | $ | 1,864,860 | $ | 1,976,657 |
| Property operating expenses | (260,288) | (254,676) | ||
| Net operating income | $ | 1,604,572 | $ | 1,721,981 |
| Adjusted funds from operations | $ | 650,221 | $ | 787,581 |
| Net income attributable to common and special shareholders | $ | 400,291 | $ | 548,043 |
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||
| Income per share | $ | 0.22 | $ | 0.30 |
Components of the $147,752 decrease in net income for the six months ended October 31, 2016 compared to the six months ended October 31, 2015 are:
| Changes in net income – Six months ended ended October 31, 2016 compared to six months ended October 31, 2015 |
||
| Decrease in net operating income | (117,409) | |
| Decrease in fair value adjustment | (153,530) | |
| Increase in administrative expenses | (68,633) | |
| Decrease in expenses related to strategic review | $ | 124,229 |
| Decrease in deferred taxes on investment properties | 45,267 | |
| Decrease in current taxes | 27,290 | |
| Decrease in finance income | (307) | |
| Increase in loss on disposal | (4,659) | |
| Decrease in net income | $ | (147,752) |
ADJUSTED FUNDS FROM OPERATIONS
For the six months ended October 31, 2016 the Company recorded adjusted funds from operations of $650,221 ($0.36 per share) compared to $787,581 ($0.44 per share) in 2015.
| Six months ended | |||||
| October 31 | |||||
| 2016 | 2015 | ||||
| Funds from operations | $ | 722,891 | $ | 757,721 | |
| Items not affecting cash: | |||||
| Straight line rent | 22,556 | 29,860 | |||
| Sustaining capital expenditures | (95,226) | 0 | |||
| Adjusted funds from operations | $ | 650,221 | $ | 787,581 | |
| Adjusted funds from operations per share | $ | 0.36 | $ | 0.44 | |
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. This process has not reached any conclusion and is ongoing. 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 in fiscal 2016, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.
As at October 31, 2016 total legal and engineering costs of $825,815 had been incurred in connection with the potential sale of the Company.
The Company’s interim financial statements for the six months ended October 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
President
416-698-2591
