TORONTO, July 19, 2019 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2019.
HIGHLIGHTS
- Total revenues for the year ended April 30, 2019 were $3,143,640 compared to $3,293,197 for the same period in 2018;
- Net operating income for the year was $2,490,962 compared to $2,702,767 in 2018;
- Net income for the year was $0.72 per share, compared to $1.35 per share in 2018.
FINANCIAL HIGHLIGHTS
Net operating income for the year ended April 30, 2019 decreased $211,805 to $2,490,962 as compared with the previous year, principally as a result of decreased revenues.
| | | | | | Year ended |
| | | | | | April 30 |
| | | | | | | 2019 | | | | 2018 | |
| Property revenue | | | | $3,039,439 | | | $3,254,846 | |
| Finance income | | | | | 104,201 | | | | 38,351 | |
| Total revenues | | | | $3,143,640 | | | $3,293,197 | |
| | | | | | | | |
| Property revenue | | | | $3,039,439 | | | $3,254,846 | |
| Property operating expenses | | | (548,477 | ) | | | (552,079 | ) |
| Net operating income | | | $2,490,962 | | | $2,702,767 | |
| | | | | | | | |
| Adjusted funds from operations | | $996,515 | | | $1,070,295 | |
| | | | | | | | |
| Net income attributable to common and special shareholders | $1,310,475 | | | $2,447,089 | |
| | | | | | | | |
| Average common and special shares outstanding | | 1,808,360 | | | | 1,808,360 | |
| | | | | | | | |
| Income per share | | | | $0.72 | | | $1.35 | |
| | | | | | | | | | | |
Components of the $1,136,614 decrease in net income for the year ended April 30, 2019 compared to the year ended April 30, 2018 are:
| Changes in net income - Year ended April 30, 2019 | |
| compared to year ended April 30, 2018 |
| | | | | | | |
| Decrease in fair value adjustment | | | ($1,446,156 | ) | |
| Decrease in net operating income | | | (211,805 | ) | |
| Increase in administrative expenses | | | (72,739 | ) | |
| Decrease in loss on disposal | | | 26,877 | | |
| Decrease in strategic expenses | | | 43,658 | | |
| Decrease in current taxes | | | | 57,947 | | |
| Increase in finance income | | | | 65,850 | | |
| Decrease in recovery of deferred taxes on investment properties | | 155,717 | | |
| Increase in gain on expropriation settlement | | 244,037 | | |
| Decrease in net income | | | | ($1,136,614 | ) | |
ADJUSTED FUNDS FROM OPERATIONS
For the year ended April 30, 2019 the Company recorded adjusted funds from operations of $996,515 ($0.55 per share) compared to $1,070,295 ($0.59 per share) in 2018.
| | | | | | Year ended |
| | | | | | April 30 |
| | | | | | | 2019 | | | | 2018 | |
| Funds from operations | | | $1,033,794 | | | $1,156,076 | |
| Items not affecting cash: | | | | | |
| | Expenses related to strategic review | | (13,123 | ) | | | (56,781 | ) |
| | Sustaining capital expenditures | | (24,156 | ) | | | (29,000 | ) |
| Adjusted funds from operations | | $996,515 | | | $1,070,295 | |
| | | | | | | | |
| Adjusted funds from operations per share | $0.55 | | | $0.59 | |
| |
STRATEGIC REVIEW
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and has engaged in discussions with potential acquirors. None of those discussions are active at this time. During this period a programme of divesting less desirable sites has resulted in the sale of 17 investment properties. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.
The Company’s annual financial statements for the year ended April 30, 2019, 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
Tel: 416-698-2591
