The Becker Milk Company Limited: Nine Month Financial Results and Regular Dividend
TORONTO, March 14, 2022 (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, 2022.
HIGHLIGHTS
- Total revenues for the nine months ended January 31, 2022 were $2,144,664 compared to $2,262,016 for the same period in 2021;
- Net income for Q3 fiscal 2022 was $ 0.30 per share, compared to $ 0.35 per share in fiscal 2021.
- The non-GAAP financial measure Net Operating Income for Q3 fiscal 2022 was $1,707,230 compared to $1,885,131 in fiscal 2021;
FINANCIAL HIGHLIGHTS
Revenues and net income
Total revenues for the nine months ended January 31, 2022 declined $117,352 compared to the nine months ended January 31, 2021, a result of reduced property revenue and finance income.
| Nine months ended | |||||||||
| January 31 | |||||||||
| 2022 | 2021 | ||||||||
| Property revenue | $ | 2,114,767 | $ | 2,201,208 | |||||
| Finance income | 29,897 | 60,808 | |||||||
| Total revenues | $ | 2,144,664 | $ | 2,262,016 | |||||
| Net income attributable to common and special shareholders | $ | 547,923 | $ | 631,501 | |||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||||||
| Income per share | $ | 0.30 | $ | 0.35 | |||||
Components of the $83,578 decrease in net income for the nine months ended January 31, 2022 compared to the nine months ended January 31, 2021 are:
| Decrease in net operating income | ($ | 177,901 | ) | |||
| Decrease in finance income | (30,911 | ) | ||||
| Increase in loss on disposal | (10,402 | ) | ||||
| Decrease in deferred tax recovery | (6,366 | ) | ||||
| Decrease in strategic review expenses | 3,737 | |||||
| Decrease in negative fair value adjustment | 15,000 | |||||
| Decrease in current taxes | 53,476 | |||||
| Decrease in administrative expenses | 69,789 | |||||
| Decrease in net income | ($ | 83,578 | ) | |||
Non-GAAP financial measures
Net operating income
The non-GAAP financial measure Net Operating Income for the nine months ended January 31, 2022 was $1,707,230, a $177,901 decrease compared with the previous year as a result of both decreased revenue and increased property operating expenses for the period.
| Nine months ended | |||||||||||
| January 31 | |||||||||||
| 2022 | 2021 | ||||||||||
| Property revenue | $ | 2,114,767 | $ | 2,201,208 | |||||||
| Property operating expenses | (407,537 | ) | (316,077 | ) | |||||||
| Net operating income | $ | 1,707,230 | $ | 1,885,131 | |||||||
Adjusted funds from operations
For the nine months ended January 31, 2022 the Company recorded adjusted funds from operations of $535,819 ($0.30 per share) compared to $666,527 ($0.37 per share) in 2021.
| Nine months ended | |||||||||||
| January 31 | |||||||||||
| 2022 | 2021 | ||||||||||
| Net income | $ | 547,923 | $ | 631,501 | |||||||
| Add (deduct) items not affecting cash: | |||||||||||
| Fair value adjustment to investment properties | 25,000 | 40,000 | |||||||||
| Loss (gain) on sale of investment properties | 4,583 | (5,819 | ) | ||||||||
| Tax on gains from sale of property | 9,065 | 27,700 | |||||||||
| Deferred income taxes | (16,752 | ) | (23,118 | ) | |||||||
| Expenses related to strategic review | 0 | (3,737 | ) | ||||||||
| Sustaining capital expenditures | (34,000 | ) | 0 | ||||||||
| Adjusted funds from operations | $ | 535,819 | $ | 666,527 | |||||||
| Adjusted funds from operations per share | $ | 0.30 | $ | 0.37 | |||||||
STRATEGIC REVIEW
The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirors. The Board has followed a programme of divesting less desirable sites, which has resulted in the sale of 26 investment properties over the past 7 years. 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, 2022, along with the Management’s Discussion and Analysis will be filed with SEDAR at .
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 23, 2022 and payable on March 31, 2022.
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
