TORONTO, July 18, 2023 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2023.
HIGHLIGHTS
- Total revenues for the year ended April 30, 2023 were $2,860,435 compared to $2,670,042 for the same period in 2022;
- Net operating income for the year was $2,294,028 compared to $2,121,894 in 2022;
- There was a net loss of $0.43 per share for the year, compared to $3.13 net income per share in 2022.
FINANCIAL HIGHLIGHTS
Net operating income for the year ended April 30, 2023 increased $172,134 to $2,294,028 as compared with the previous year, primarily as a result of a non-recurring increase in total property revenue related to completion of negotiations with Mac’s Convenience Stores Inc. regarding base rents for most of its locations. In addition, property operating expenses were lower in the year ended April 30, 2023.
| Year ended | |||
| April 30 | |||
| 2023 | 2022 | ||
| Property revenue | $2,712,093 | $2,630,175 | |
| Finance income | 148,342 | 39,867 | |
| Total revenues | $2,860,435 | $2,670,042 | |
| Net income (loss) attributable to common and special shareholders | ($778,354) | $5,665,984 | |
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |
| Income (loss) per share | ($0.43) | $3.13 | |
| Year ended | |||
| April 30 | |||
| 2023 | 2022 | ||
| Property revenue | $2,712,093 | $2,630,175 | |
| Property operating expenses | (418,065) | (508,281) | |
| Net operating income | $2,294,028 | $2,121,894 | |
Components of the $6,444,338 decrease in net income for the year ended April 30, 2023 compared to the year ended April 30, 2022 are:
| Changes in Net Income - Year ended April 30, 2023 | |
| compared to year ended April 30, 2022 | |
| Increase in recovery of deferred income taxes | $968,366 |
| Increase in net operating income | 172,134 |
| Increase in finance income | 108,475 |
| Decrease in administrative expenses | 74,463 |
| Decrease in expenses related to strategic review | 62,110 |
| Increase in loss on disposal | (10,494) |
| Increase in current taxes | (136,034) |
| Unfavourable change in fair value adjustment | (7,683,358) |
| Decrease in net income | ($6,444,338) |
The large unfavourable change in the fair value adjustment to investment properties was the result of revised assumptions with respect to capitalization rates as at April 30, 2023.
ADJUSTED FUNDS FROM OPERATIONS
For the year ended April 30, 2023 the Company recorded adjusted funds from operations of $612,280 ($0.34 per share) compared to $553,929 ($0.31 per share) in 2022.
| Year ended | ||||
| April 30 | ||||
| 2023 | 2022 | |||
| Net income (loss) | ($778,354) | $5,665,984 | ||
| Add (deduct) items not affecting cash: | ||||
| Adjustment to fair value of investment properties | 1,690,358 | (5,993,000) | ||
| Loss (gain) on sale of investment properties | 15,077 | 4,583 | ||
| Tax on gains from sale of property | 54,736 | 9,065 | ||
| Deferred income taxes | (169,820) | 798,546 | ||
| Expenses related to strategic review | 40,641 | 102,751 | ||
| Sustaining capital expenditures | (240,358) | (34,000) | ||
| Adjusted funds from operations | $612,280 | $553,929 | ||
| Adjusted funds from operations per share | $0.34 | $0.31 | ||
STRATEGIC REVIEW
The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirers. While the Company has engaged in some discussions within the last year, none of those discussions are active at this time. 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, 2023, along with the Management’s Discussion and Analysis and Annual Information Form 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
