TORONTO, Dec. 13, 2018 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the six months ended October 31, 2018.

HIGHLIGHTS

  • Total revenues for the six months ended October 31, 2018 were $1,522,067 compared to $1,732,564 for the same period in 2017;
  • Net operating income for Q2 fiscal 2019 was $1,247,974 compared to $1,457,513 in fiscal 2018;
  • Net income for Q2 fiscal 2019 was $ 0.23 per share, compared to $0.43 per share in fiscal 2018.

FINANCIAL HIGHLIGHTS

Net operating income for the six months ended October 31, 2018 decreased $209,539 compared with the previous year to $1,247,974, as a result of decreased revenue, resulting from vacancies and the sale of properties.

        
     Six months ended
     October 31
      2018   2017 
Property revenue$1,478,029  $1,713,025 
Finance income 44,038   19,539 
Total revenues$1,522,067  $1,732,564 
        
Property revenue$1,478,029  $1,713,025 
Property operating expenses (230,055)  (255,512)
Net operating income$1,247,974  $1,457,513 
        
Adjusted funds from operations$524,795  $643,264 
        
Net income attributable to common and special shareholders$406,908  $774,823 
        
Average common and special shares outstanding 1,808,360   1,808,360 
        
Income per share$0.23  $0.43 
        

Components of the $367,915 decrease in net income for the six months ended October 31, 2018 compared to the six months ended October 31, 2017 are:

  
Changes in net income - Six months ended October 31, 2018 
compared to three months October 31, 2017
       
Decrease in net operating income($209,539) 
Decrease in fair value adjustment (265,156) 
Increase in administrative expenses (30,198) 
Decrease in recovery of deferred taxes on investment properties (4,957) 
Decrease in current taxes 94,659  
Increase in finance income 24,499  
Decrease in loss on disposal 12,127  
Decrease in strategic expenses 10,650  
Decrease in net income($367,915) 
     

ADJUSTED FUNDS FROM OPERATIONS

For the six months ended October 31, 2018 the Company recorded adjusted funds from operations of $524,795 ($0.29 per share) compared to $643,264 ($0.36 per share) in 2017.

        
     Six months ended
     October 31
      2018   2017
Funds from operations$550,889  $655,852
Items not affecting cash:   
 Straight line rent   
 Expenses related to strategic review (1,938)    12,588
 Sustaining capital expenditures (24,156)  -
Adjusted funds from operations$524,795  $643,264
        
Adjusted funds from operations per share$0.29  $0.36
       

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 15 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 six months ended October 31, 2018, 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