The Becker Milk Company Limited: 2021 Annual Financial Results
TORONTO, July 19, 2021 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2021.
HIGHLIGHTS
- Total revenues for the year ended April 30, 2021 were $3,097,155 compared to $3,174,164 for the same period in 2020;
- Net operating income for the year was $2,367,836 compared to $2,569,034 in 2020;
- Net income for the year was 1.96 per share, compared to 0.46 per share in 2020.
FINANCIAL HIGHLIGHTS
Net operating income for the year ended April 30, 2021 decreased $201,198 to $2,367,836 as compared with the previous year, as a result of reduced property revenue and higher property operating expenses.
| Year ended | |||||||||||
| April 30 | |||||||||||
| 2021 | 2020 | ||||||||||
| Property revenue | $3,024,970 | $3,036,785 | |||||||||
| Finance income | 72,185 | 137,379 | |||||||||
| Total revenues | $3,097,155 | $3,174,164 | |||||||||
| Property revenue | $3,024,970 | $3,036,785 | |||||||||
| Property operating expenses | (657,134 | ) | (467,751 | ) | |||||||
| Net operating income | $2,367,836 | $2,569,034 | |||||||||
| Adjusted funds from operations | $752,800 | $1,098,542 | |||||||||
| Net income attributable to common and special shareholders | $3,536,378 | $833,971 | |||||||||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | |||||||||
| Income per share | $1.96 | $0.46 | |||||||||
Components of the $2,702,407 decrease in net income for the year ended April 30, 2021 compared to the year ended April 30, 2020 are:
| Increase in the fair value adjustment | $3,518,000 | ||||||
| Decrease in current taxes | 337,215 | ||||||
| Decrease in strategic review expenses | 8,260 | ||||||
| Increase in gain on disposal | 477 | ||||||
| Decrease in finance income | (65,194 | ) | |||||
| Decrease in net operating income | (201,198 | ) | |||||
| Increase in administrative expenses | (207,367 | ) | |||||
| Increase in deferred taxes | (687,786 | ) | |||||
| Increase in net income | $2,702,407 | ||||||
The large increase in the fair value adjustment to investment properties resulted from revised assumptions with respect to capitalization rates and market rents reflecting current market conditions.
ADJUSTED FUNDS FROM OPERATIONS
For the year ended April 30, 2021 the Company recorded adjusted funds from operations of $752,800 ($0.42 per share) compared to $1,098,542 ($0.61 per share) in 2021.
| Year ended | |||||||||||
| April 30 | |||||||||||
| 2021 | 2020 | ||||||||||
| Funds from operations | $756,537 | $1,110,539 | |||||||||
| Deduct: | |||||||||||
| Expenses related to strategic review | (3,737 | ) | (11,997 | ) | |||||||
| Adjusted funds from operations | $752,800 | $1,098,542 | |||||||||
| Adjusted funds from operations per share | $0.42 | $0.61 | |||||||||
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 25 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, 2021, 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
