Subject: EARNINGS
The Becker Milk Company Limited: Six Month Financial Results
TORONTO, ONTARIO--(Marketwired - Dec. 13, 2017) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2017.
HIGHLIGHTS
- Total revenues for the six months ended October 31, 2017 were $1,732,564 compared to $1,875,441 for the same period in 2016;
- Net operating income for Q2 fiscal 2018 was $1,457,513 compared to $1,604,572 in fiscal 2017;
- Net income for Q2 fiscal 2018 was $0.43 per share, compared to $0.22 per share in fiscal 2017.
FINANCIAL HIGHLIGHTS
Net operating income for the six months ended October 31, 2017 decreased $147,059 compared with the previous year to $1,457,513, as a result of decreased revenue, resulting from vacancies and the sale of properties.
| Six months ended | ||||||
| October 31 | ||||||
| 2017 | 2016 | |||||
| Property revenue | $ | 1,713,025 | $ | 1,864,860 | ||
| Finance income | 19,539 | 10,581 | ||||
| Total revenues | $ | 1,732,564 | $ | 1,875,441 | ||
| Property revenue | $ | 1,713,025 | $ | 1,864,860 | ||
| Property operating expenses | (255,512 | ) | (260,288 | ) | ||
| Net operating income | $ | 1,457,513 | $ | 1,604,572 | ||
| Adjusted funds from operations | $ | 691,180 | $ | 697,205 | ||
| Net income attributable to common and special shareholders | $ | 774,823 | $ | 400,291 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||
| Income per share | $ | 0.43 | $ | 0.22 | ||
Components of the $374,532 decrease in net income for the six months ended October 31, 2017 compared to the six months ended October 31, 2016 are:
| Changes in net income - Six months ended October 31, 2017 | |||
| compared to six months ended October 31, 2016 | |||
| Decrease in net operating income | $ | (147,059 | ) |
| Increase in fair value adjustment | 489,670 | ||
| Decrease in administrative expenses | 102,958 | ||
| Increase in recovery of deferred taxes on investment properties | 14,777 | ||
| Increase in current taxes | (67,866 | ) | |
| Increase in finance income | 8,958 | ||
| Increase in loss on disposal | (14,318 | ) | |
| Increase in strategic expenses | (12,588 | ) | |
| Increase in net income | $ | 374,532 | |
ADJUSTED FUNDS FROM OPERATIONS
For the six months ended October 31, 2017 the Company recorded adjusted funds from operations of $691,180 ($0.38 per share) compared to $697,205 ($0.39 per share) in 2016.
| Six months ended | |||||||
| October 31 | |||||||
| 2017 | 2016 | ||||||
| Funds from operations | $ | 703,768 | $ | 744,875 | |||
| Items not affecting cash: | |||||||
| Straight line rent | - | 22,556 | |||||
| Expenses related to strategic review | (12,588 | ) | |||||
| Sustaining capital expenditures | - | (70,226 | ) | ||||
| Adjusted funds from operations | $ | 691,180 | $ | 697,205 | |||
| Adjusted funds from operations per share | $ | 0.38 | $ | 0.39 | |||
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. Although this arrangement 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, 2017 total legal and engineering costs of $838,403 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, 2017, 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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