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TORONTO, July 22, 2022 (GLOBE NEWSWIRE) -- The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2022.
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.
Net operating income for the year ended April 30, 2022 decreased $245,942 to $2,121,894 as compared with the previous year, primarily as a result of non-recurring adjustments to property revenue resulting from completion of negotiations with Mac’s Convenience Stores Inc. regarding base rents for most of its locations. In determining net operating income the revenue reduction was partially offset by lower property operating expenses.
Net income attributable to common and special shareholders
Average common and special shares outstanding
Income per share
Property operating expenses
Net operating income
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:
Changes in net income - Year ended April 30, 2022
compared to year ended April 30, 2021
Provision for environmental liability
Increase in fair value adjustment
Decrease in current taxes
Decrease in administrative expenses
Decrease loss on disposal
Decrease in finance income
Increase strategic review expenses
Decrease in net operating income
Increase in deferred tax charges
Decrease in gain on expropriation settlement
Increase in net income
The large increase in the fair value adjustment to investment properties resulted from revised assumptions with respect to capitalization rates and market rents reflecting market conditions as at April 30, 2022.
ADJUSTED FUNDS FROM OPERATIONS
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.
Add (deduct) items not affecting cash:
Fair value adjustment to investment properties
Loss (gain) on sale of investment properties
Tax on gains from sale of property
Deferred income taxes
Expenses related to strategic review
Sustaining capital expenditures
Adjusted funds from operations
Adjusted funds from operations per share
Since 2014 the Board of Directors has been evaluating strategic directions for the Company and has engaged in discussions with potential acquirors. While the Company has engaged in some discussions during the last quarter, 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 26 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, 2022, 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