TORONTO, ONTARIO--(Marketwired - Dec. 11, 2015) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the six months ended October 31, 2015.
HIGHLIGHTS
- Total revenues from continuing operations for the six months ended October 31, 2015 were $1,983,974 compared to $1,929,966 for the same period in 2014;
- Net operating income for Q2 fiscal 2016 was $1,721,708 compared to $1,704,616 in 2015;
- Net income for Q2 fiscal 2016 was $0.30 per share, compared to $0.28 per share in 2015.
FINANCIAL HIGHLIGHTS
| Six Months | ||||||
| October 31 | ||||||
| 2015 | 2014 | |||||
| Property revenue | $ | 1,973,086 | $ | 1,924,183 | ||
| Finance income | 10,888 | 5,783 | ||||
| Total revenues | $ | 1,983,974 | $ | 1,929,966 | ||
| Property revenue | $ | 1,973,086 | $ | 1,924,183 | ||
| Property operating expenses | (251,378 | ) | (219,567 | ) | ||
| Net operating income | $ | 1,721,708 | $ | 1,704,616 | ||
| Adjusted funds from operations | $ | 787,381 | $ | 771,089 | ||
| Net income attributable to common and special shareholders | $ | 548,043 | $ | 517,787 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||
| Income per share | $ | 0.30 | $ | 0.28 | ||
Significant components of the $52,324 increase in net income from continuing operations between the six months ended October 31, 2015 compared to the six months ended October 31, 2014 are:
| Changes in net income - Six Months ended October 31, 2015 compared to Six Months ended October 31, 2014 |
|||
| Increase in adjustment of fair value of investment properties | 152,531 | ||
| Decrease in administrative expenses | 38,976 | ||
| Increase in net operating income | 17,092 | ||
| Increase in finance income | 5,105 | ||
| Increase in current taxes | (21,389 | ) | |
| Increase in deferred taxes on investment properties | (22,622 | ) | |
| Increase in expenses related to strategic review | (117,369 | ) | |
| Increase in net income | $ | 52,324 | |
NET OPERATING INCOME
Net operating income for the six months ended October 31, 2015 was almost unchanged compared with the previous year, increasing $17,092 to $1,721,708 compared to $1,704,616 in 2014, as slightly higher revenues were offset by slightly higher operating costs.
ADJUSTED FUNDS FROM OPERATIONS
| Six Months | ||||||
| October 31 | ||||||
| 2015 | 2014 | |||||
| Funds from operations | $ | 757,521 | $ | 835,106 | ||
| Items not affecting cash: | ||||||
| Straight line rent | 29,860 | 31,179 | ||||
| Sustaining capital expenditures | (95,196 | ) | ||||
| Adjusted funds from operations | $ | 787,381 | $ | 771,089 | ||
| Adjusted funds from operations per share | $ | 0.44 | $ | 0.43 | ||
For the six months ended October 31, 2015 the Company recorded Adjusted funds from operations of $787,381 ($0.44 per share) compared to $771,089 ($0.43 per share) in 2014. Funds from operations were negatively impacted by the $117,369 increase in expenditures on the strategic review, partially offset by higher net income of $52,324. The absence of sustaining capital expenditures in 2015 offset reduced Adjusted funds from operations.
STRATEGIC REVIEW
During the second quarter of fiscal 2014, the Company's Board of Directors re-initiated its 2008 review of strategies available to the Company to enhance shareholder value. The Company retained PricewaterhouseCoopers Real Estate Inc. ("PWC") to explore a possible sale of the Company. The Company previously announced that PWC had completed the initial steps in the sale process and that the Company was engaged in advanced discussions with a single potential acquirer. These discussions have now been terminated. The Company will continue to review its strategic alternatives and will update the market as appropriate and as required.
In support of this process an engineering firm has conducted property condition surveys and environmental assessments of all properties. Management believes none of these assessments have found any circumstances that require immediate remediation to meet currently legislated environmental obligations.
As at October 31, 2015 legal and engineering costs of $891,544 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, 2015, 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
Contact Information:
G.W.J. Pottow
President
416-698-2591