The Becker Milk Company Limited: 2020 Annual Financial Results

TORONTO, July 16, 2020 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2020.

HIGHLIGHTS

• Total revenues for the year ended April 30, 2020 were $3,174,164 compared to $3,143,640 for the same period in 2019;

• Net operating income for the year was $2,569,034 compared to $2,490,962 in 2019;

• Net income for the year was $0.46 per share, compared to $0.72 per share in 2019.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2020 increased $78,072 to $2,569,034 as compared with the previous year, principally as a result of reduced operating expenses.

	Year ended
	April 30
		2020				2019
Property revenue	$	3,036,785			$	3,039,439
Finance income		137,379				104,201
Total revenues	$	3,174,164			$	3,143,640
Property revenue	$	3,036,785			$	3,039,439
Property operating expenses		(467,751	)			(548,477	)
Net operating income	$	2,569,034			$	2,490,962
Adjusted funds from operations	$	1,094,933			$	985,218
Net income attributable to common and special shareholders	$	833,971			$	1,310,475
Average common and special shares outstanding		1,808,360				1,808,360
Income per share	$	0.46			$	0.72

Components of the $476,504 decrease in net income for the year ended April 30, 2020 compared to the year ended April 30, 2019 are:

Changes in net income - Year ended April 30, 2020
compared to year ended April 30, 2019
Increase in recovery of deferred taxes	$	227,565
Increase in net operating income		78,072
Increase in finance income		33,178
Decrease in strategic review expenses		1,126
Decrease in administrative expenses		685
Increase in loss on disposal		(18,135	)
Increase in current taxes		(171,114	)
Decrease in gain on expropriation settlement		(244,037	)
Decrease in fair value adjustment		(383,844	)
Decrease in net income	$	(476,504	)

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2020 the Company recorded adjusted funds from operations of $1,094,933 ($0.61 per share) compared to $985,218 ($0.54 per share) in 2019.

Adjusted funds from operations
	Year ended
	April 30
		2020				2019
Funds from operations	$	1,106,930			$	1,022,497
Deduct:
Expenses related to strategic review		(11,997	)			(13,123	)
Sustaining capital expenditures		-				(24,156	)
Adjusted funds from operations	$	1,094,933			$	985,218
Adjusted funds from operations per share	$	0.61			$	0.54

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 21 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, 2020, 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