TORONTO, March 10, 2020 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the nine months ended January 31, 2020.
HIGHLIGHTS
- Total revenues for the nine months ended January 31, 2020 were $2,439,865 compared to $2,277,173 for the same period in 2019;
- Net operating income for Q3 fiscal 2020 was $1,973,203 compared to $1,840,617 in fiscal 2019;
- Net income for Q3 fiscal 2020 was $ 0.41 per share, compared to $0.39 per share in fiscal 2019.
FINANCIAL HIGHLIGHTS
Net operating income for the nine months ended January 31, 2020 increased $132,586 compared with the previous year to $1,973,203, principally as a result of increased revenue.
| Nine months ended | |||||||
| January 31 | |||||||
| 2020 | 2019 | ||||||
| Property revenue | $2,329,337 | $2,204,756 | |||||
| Finance income | 110,528 | 72,417 | |||||
| Total revenues | $2,439,865 | $2,277,173 | |||||
| Property revenue | $2,329,337 | $2,204,756 | |||||
| Property operating expenses | (356,134 | ) | (364,139 | ) | |||
| Net operating income | $1,973,203 | $1,840,617 | |||||
| Adjusted funds from operations | $920,305 | $766,017 | |||||
| Net income attributable to common and special shareholders | $741,431 | $704,817 | |||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||||
| Income per share | $0.41 | $0.39 | |||||
Components of the $36,614 increase in net income for the nine months ended January 31, 2020 compared to the nine months ended January 31, 2019 are:
| Changes in net income - Nine months ended January 31, 2020 | ||
| compared to nine months ended January 31, 2019 | ||
| Increase in recovery of deferred taxes | 204,332 | |
| Increase in net operating income | 132,586 | |
| Decrease in negative fair value adjustment | 98,156 | |
| Increase in finance income | 38,111 | |
| Decrease in administrative expenses | 32,983 | |
| Increase in strategic review expenses | (4,534 | ) |
| Increase in loss on disposal | ($14,017 | ) |
| Increase in current taxes | (206,966 | ) |
| Decrease in gain on expropriation settlement | (244,037 | ) |
| Increase in net income | $36,614 | |
ADJUSTED FUNDS FROM OPERATIONS
For the nine months ended January 31, 2020 the Company recorded adjusted funds from operations of $920,305 ($0.51 per share) compared to $766,017 ($0.42 per share) in 2019.
| Nine months ended | ||||||||
| January 31 | ||||||||
| 2020 | 2019 | |||||||
| Funds from operations | $926,777 | $792,111 | ||||||
| Items not affecting cash: | ||||||||
| Expenses related to strategic review | (6,472 | ) | (1,938 | ) | ||||
| Sustaining capital expenditures | 0 | (24,156 | ) | |||||
| Adjusted funds from operations | $920,305 | $766,017 | ||||||
| Adjusted funds from operations per share | $0.51 | $0.42 | ||||||
STRATEGIC REVIEW
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and in discussions with potential acquirors from time to time. During this period a programme of divesting less desirable sites has resulted in the sale of 21 investment properties. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.
The Company’s interim financial statements for the nine months ended January 31, 2020, along with the Management’s Discussion and Analysis will be filed with SEDAR at www.sedar.com.
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, 2020 and payable on March 27, 2020.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
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
Tel: 416-698-2591