TORONTO, March 14, 2022 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to announce results for the nine months ended January 31, 2022.
STRONG POINTS
- Total revenue for the nine months ended January 31, 2022 was $2,144,664 compared to $2,262,016 for the same period in 2021;
- Net income for the third quarter of fiscal 2022 was $0.30 per share, compared to $0.35 per share for fiscal 2021.
- The non-GAAP financial measure of net operating income for the third quarter of fiscal 2022 was $1,707,230, compared to $1,885,131 for fiscal 2021;
FINANCIAL HIGHLIGHTS
Turnover and net profit
Total revenue for the nine months ended January 31, 2022 decreased by $117,352 compared to the nine months ended January 31, 2021, due to lower real estate revenue and financial revenue.
| End of nine months | |||||||||
| January 31 | |||||||||
| 2022 | 2021 | ||||||||
| Real estate income | $ | 2,114,767 | $ | 2,201,208 | |||||
| Financial products | 29,897 | 60,808 | |||||||
| Total revenue | $ | 2,144,664 | $ | 2,262,016 | |||||
| Net profit attributable to ordinary and special shareholders | $ | 547,923 | $ | 631 501 | |||||
| Average common and special shares outstanding | 1 808 360 | 1 808 360 | |||||||
| Revenue per share | $ | 0.30 | $ | 0.35 | |||||
The components of the $83,578 decrease in net earnings for the nine-month period ended January 31, 2022 compared to the nine-month period ended January 31, 2021 are:
| Decrease in net operating income | ($ | 177,901 | ) | |||
| Lower financial income | (30,911 | ) | ||||
| Increase in loss on disposal | (10,402 | ) | ||||
| Decrease in deferred tax recovery | (6,366 | ) | ||||
| Decrease in strategic review expenses | 3,737 | |||||
| Decrease in negative fair value adjustment | 15,000 | |||||
| Lower current taxes | 53,476 | |||||
| Reduced administrative expenses | 69,789 | |||||
| Decrease in net income | ($ | 83,578 | ) | |||
Non-GAAP Financial Measures
Net operating income
The non-GAAP financial measure of net operating income for the nine months ended January 31, 2022 was $1,707,230, a decrease of $177,901 from the prior year due to both lower revenues and the increase in property operating expenses for the period.
| End of nine months | |||||||||||
| January 31 | |||||||||||
| 2022 | 2021 | ||||||||||
| Real estate income | $ | 2,114,767 | $ | 2,201,208 | |||||||
| Building operating expenses | (407,537 | ) | (316,077 | ) | |||||||
| Net operating income | $ | 1,707,230 | $ | 1 885 131 | |||||||
Adjusted Operating Funds
For the nine months ended January 31, 2022, the Company recorded adjusted funds from operations of $535,819 ($0.30 per share) compared to $666,527 ($0.37 per share) in 2021.
| End of nine months | |||||||||||
| January 31 | |||||||||||
| 2022 | 2021 | ||||||||||
| Net revenue | $ | 547,923 | $ | 631 501 | |||||||
| Add (deduct) non-cash items: | |||||||||||
| Fair value adjustment of investment properties | 25,000 | 40,000 | |||||||||
| Loss (gain) on sale of investment property | 4,583 | (5,819 | ) | ||||||||
| Tax on capital gains from disposal of property | 9,065 | 27,700 | |||||||||
| Deferred taxes | (16,752 | ) | (23,118 | ) | |||||||
| Expenses related to the strategic review | 0 | (3,737 | ) | ||||||||
| Sustaining capital expenditures | (34,000 | ) | 0 | ||||||||
| Adjusted Operating Funds | $ | 535 819 | $ | 666 527 | |||||||
| Adjusted funds from operations per share | $ | 0.30 | $ | 0.37 | |||||||
STRATEGIC REVIEW
The Board of Directors continually assesses the Company’s strategic orientations and has entered into discussions with potential acquirers. The Board has followed a program of disposal of less desirable sites, which has resulted in the sale of 26 investment properties over the last 7 years. The Company continues to review its strategic alternatives and will update the market as needed and necessary.
The Company’s interim financial statements for the nine months ended January 31, 2022, as well as the management report will be filed on SEDAR at www.sedar.com.
DIVIDEND
The directors of the Company have declared a dividend on the Class B common and special shares of 40 cents per share. The dividend of 40 cents will be paid to shareholders of record on March 23, 2022 and payable on March 31, 2022.
Dividends for Canadian tax purposes will be treated as eligible dividends.
Readers are cautioned that although the terms “net income from operations” and “funds generated from operations” are commonly used to measure, compare and explain the operational and financial performance of Canadian real estate companies and that these terms are defined in the MD&A, these terms are not recognized terms under Canadian generally accepted accounting principles. These terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by other publicly traded entities.
For the Board of Directors
G. J. Pottow, President
Tel: 416-698-2591
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