Business & Finance
Business and Finance
Business and Finance
Fri, June 29, 2012
Thu, June 28, 2012 
June 28, 2012 16:42 ET
The Becker Milk Company Limited: 2012 Annual Financial Results and Special Dividend
TORONTO, ONTARIO--(Marketwire - June 28, 2012) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the year ended April 30, 2012.
These results are, and all future results will be, reported under International Financial Reporting Standards (IFRS) and historical results have been restated to IFRS for comparison purposes. Reconciliations between IFRS and Canadian Generally Accepted Accounting Principles have been included in the Company's annual financial statements for the period ended April 30, 2012.
HIGHLIGHTS
- Total revenues for the year ended April 30, 2012 were $4,113,897 compared to $4,040,260 for the same period in 2011;
- Net operating income for the year was $3,491,179 compared to $3,376,438 in 2011;
- Net income for the year for the year was $1.78 per share, compared to $1.58 per share in 2011.
FINANCIAL HIGHLIGHTS
| Year ended | ||||||
| April 30 | ||||||
| 2012 | 2011 | |||||
| Property revenue | $ | 4,051,440 | $ | 3,982,740 | ||
| Finance income | 62,457 | 57,520 | ||||
| Total revenues | $ | 4,113,897 | $ | 4,040,260 | ||
| Property revenue | $ | 4,051,440 | $ | 3,982,739 | ||
| Property operating expenses | (560,261 | ) | (606,301 | ) | ||
| Net operating income | $ | 3,491,179 | $ | 3,376,438 | ||
| Adjusted funds from operations | $ | 1,801,307 | $ | 1,482,416 | ||
| Net income attributable to common and special shareholders | $ | 3,222,229 | $ | 2,858,839 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||
| Income per share | $ | 1.78 | $ | 1.58 | ||
Significant components of the $363,390 increase in net income between the year ended April 30, 2012 compared to the year ended April 30, 2011 are:
| Changes in net income - year ended April 30, 2012 compared to year ended April 30, 2011 |
| Change in fair value adjustment on investment properties | $ | 79,409 |
| Change in provision for deferred taxes on investment properties | 4,500 | |
| Increase in net operating income | 114,741 | |
| Reduction in administration expenses | 76,871 | |
| Reduction in current income taxes | 82,933 | |
| Other items | 4,936 | |
| Increase in net income | $ | 363,390 |
NET OPERATING INCOME
Net operating income for the year ended April 30, 2012, increased by $114,741 to $3,491,179 compared to $3,376,438 in 2011. The increase was predominantly the result of the successful completion of a number of lease renewal negotiations and reduced property operating and administrative expenses.
ADJUSTED FUNDS FROM OPERATIONS
| Year ended | |||||||
| April 30 | |||||||
| Reconciliation of reported income to AFFO | 2012 | 2011 | |||||
| Net income attributable to common and special shareholders | $ | 3,222,229 | $ | 2,858,839 | |||
| Items not affecting cash: | |||||||
| Fair value gains on investment properties | (1,570,829 | ) | (1,491,420 | ) | |||
| Deferred income taxes | 259,078 | 263,578 | |||||
| Straight line rent | (65,205 | ) | (77,810 | ) | |||
| Sustaining capital expenditures | (43,966 | ) | (70,770 | ) | |||
| Adjusted funds from operations | $ | 1,801,307 | $ | 1,482,416 | |||
| Adjusted funds from operations per share | $ | 1.00 | $ | 0.82 | |||
For the year ended April 30, 2012 the Company recorded Adjusted funds from operations of $1,801,307 ($1.00 per share) compared to $1,482,416 ($0.82 per share) in 2011. This increase is largely the result of higher operating income combined with reduced administrative expenses and current income taxes.
SPECIAL DIVIDEND
Directors of the Company have determined that a special dividend of $1.25 dollars per share be declared to the Class B Special and Common Shares. The dividend will be paid to those shareholders of record as of July 12th, 2012 and payable on July 24th, 2012.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Company's annual financial statements for the year ended April 30, 2012, 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
