BEK.B Becker Milk Co Ltd

 The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the nine months ended January 31, 2022.

HIGHLIGHTS

• Total revenues for the nine months ended January 31, 2022 were $2,144,664 compared to $2,262,016 for the same period in 2021;
• Net income for Q3 fiscal 2022 was $ 0.30 per share, compared to $ 0.35 per share in fiscal 2021.
• The non-GAAP financial measure Net Operating Income for Q3 fiscal 2022 was $1,707,230 compared to $1,885,131 in fiscal 2021;

FINANCIAL HIGHLIGHTS

Revenues and net income

Total revenues for the nine months ended January 31, 2022 declined $117,352 compared to the nine months ended January 31, 2021, a result of reduced property revenue and finance income.

					Nine months ended
					January 31
						2022			2021
Property revenue					$	2,114,767		$	2,201,208
Finance income						29,897			60,808
Total revenues					$	2,144,664		$	2,262,016
Net income attributable to common and special shareholders					$	547,923		$	631,501
Average common and special shares outstanding						1,808,360			1,808,360
Income per share					$	0.30		$	0.35

Components of the $83,578 decrease in net income for the nine months ended January 31, 2022 compared to the nine months ended January 31, 2021 are:

Decrease in net operating income				($	177,901	)
Decrease in finance 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
Decrease in current taxes					53,476
Decrease in administrative expenses					69,789
Decrease in net income				($	83,578	)

Non-GAAP financial measures

Net operating income

The non-GAAP financial measure Net Operating Income for the nine months ended January 31, 2022 was $1,707,230, a $177,901 decrease compared with the previous year as a result of both decreased revenue and increased property operating expenses for the period.

					Nine months ended
					January 31
						2022				2021
Property revenue					$	2,114,767			$	2,201,208
Property operating expenses						(407,537	)			(316,077	)
Net operating income					$	1,707,230			$	1,885,131

Adjusted funds from operations

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.

					Nine months ended
					January 31
						2022				2021
Net income					$	547,923			$	631,501
Add (deduct) items not affecting cash:
	Fair value adjustment to investment properties					25,000				40,000
	Loss (gain) on sale of investment properties					4,583				(5,819	)
	Tax on gains from sale of property					9,065				27,700
	Deferred income taxes					(16,752	)			(23,118	)
	Expenses related to strategic review					0				(3,737	)
	Sustaining capital expenditures					(34,000	)			0
Adjusted funds from operations					$	535,819			$	666,527
Adjusted funds from operations per share					$	0.30			$	0.37

STRATEGIC REVIEW

The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirors. The Board has followed a programme of divesting less desirable sites, which has resulted in the sale of 26 investment properties over the past 7 years. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.

The Company’s interim financial statements for the nine months ended January 31, 2022, along with the Management’s Discussion and Analysis will be filed with SEDAR at www.sedar.com.

DIVIDEND

The Directors of the Company have declared a dividend on Class B Special and Common Shares of 40 cents per share. The dividend of 40 cents will be paid to those shareholders of record as of March 23, 2022 and payable on March 31, 2022.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

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