TORONTO, July 22 28, 2022 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report its results for the fiscal year ended April 30, 2022.
STRONG POINTS
- Total revenues for the year ended April 30, 2022 were $2,670,042 compared to $3,097,155 for the same period in 2021;
- Net operating income for the year was $2,121,894 compared to $2,367,836 in 2021;
- Net income for the year was $3.13 per share, compared to $1.96 per share in 2021.
FINANCIAL HIGHLIGHTS
Net operating income for the year ended April 30, 2022 decreased by $245,942 to $2,121,894 from the prior year primarily due to one-time property revenue adjustments resulting from the completion of negotiations with Mac’s Convenience Stores Inc. regarding base rents for most of its locations. In determining NOI, the reduction in revenue was partially offset by lower property operating expenses.
| Year ended | ||||
| April 30 | ||||
| 2022 | 2021 | |||
| Real estate income | $2,630,175 | $3,024,970 | ||
| Financial products | 39,867 | 72,185 | ||
| Total revenue | $2,670,042 | $3,097,155 | ||
| Net profit attributable to ordinary and special shareholders | $5,665,984 | $3,536,378 | ||
| Average common and special shares outstanding | 1 808 360 | 1 808 360 | ||
| Revenue per share | $3.13 | $1.96 | ||
| Year ended | ||||
| April 30 | ||||
| 2022 | 2021 | |||
| Real estate income | $2,630,175 | $3,024,970 | ||
| Building operating expenses | (508,281 | ) | (657,134 | ) |
| Net operating income | $2,121,894 | $2,367,836 | ||
The components of the $2,129,606 decrease in net income for the year ended April 30, 2022 compared to the year ended April 30, 2021 are:
| Change in net income – Year ended April 30, 2022 | ||
| compared to the fiscal year ended April 30, 2021 | ||
| Provision for environmental liability | ||
| Increase in fair value adjustment | $2,748,000 | |
| Lower current taxes | 76,581 | |
| Reduced administrative expenses | 43,752 | |
| Decrease loss on elimination | 18,038 | |
| Lower financial income | (32,318 | ) |
| Increase strategic review spending | (99,014 | ) |
| Decrease in net operating income | (245,942 | ) |
| Increase in deferred tax charges | (379,491 | ) |
| Decrease in gain on expropriation settlement | 0 | |
| Increase in net income | $2,129,606 | |
The large increase in the fair value adjustment of investment properties stems from revised assumptions regarding capitalization rates and market rents reflecting market conditions as of April 30, 2022.
ADJUSTED FUNDS OF OPERATING
For the year ended April 30, 2022, the Company recorded adjusted funds from operations of $348,427 ($0.19 per share) compared to $757,017 ($0.42 per share) in 2021.
| Year ended | |||||
| April 30 | |||||
| 2022 | 2021 | ||||
| Net revenue | $5,665,984 | $3,536,378 | |||
| Add (deduct) non-cash items: | |||||
| Fair value adjustment of investment properties | (5,993,000 | ) | (3,245,000 | ) | |
| Loss (gain) on sale of investment property | 4,583 | 22,621 | |||
| Tax on capital gains from disposal of property | 9,065 | 27,700 | |||
| Deferred taxes | 798,546 | 419,055 | |||
| Expenses related to the strategic review | (102,751 | ) | (3,737 | ) | |
| Sustaining capital expenditures | (34,000 | ) | 0 | ||
| Adjusted Operating Funds | $348,427 | $757,017 | |||
| Adjusted funds from operations per share | $0.19 | $0.42 | |||
STRATEGIC REVIEW
Since 2014, the Board of Directors has been evaluating the Company’s strategic orientations and has entered into discussions with potential buyers. Although the Company has engaged in discussions during the last quarter, none of these discussions are active at this time. During this period, a disposal program for less desirable sites resulted in the sale of 26 investment properties. The Company continues to review its strategic alternatives and will update the market as needed and necessary.
The Company’s annual financial statements for the year ended April 30, 2022, together with the management’s report will be filed on SEDAR at www.sedar.com.
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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