TORONTO, ONTARIO--(Marketwired - Sep 11, 2015) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the three months ended July 31, 2015.
HIGHLIGHTS
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Total revenues for the three months ended July 31, 2015 were $994,815 compared to $976,569 for the same period in 2014;
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Net operating income for Q1 fiscal 2016 was $874,072 compared to $874,851 in 2015;
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Net income for Q1 fiscal 2016 was $ 0.16 per share, compared to $0.10 per share in 2015.
FINANCIAL HIGHLIGHTS
| Three months | ||||||
| July 31 | ||||||
| 2015 | 2014 | |||||
| Property revenue | $ | 990,988 | $ | 971,533 | ||
| Finance income | 3,827 | 5,036 | ||||
| Total revenues | $ | 994,815 | $ | 976,569 | ||
| Property revenue | $ | 990,988 | $ | 971,533 | ||
| Property operating expenses | (116,916 | ) | (96,682 | ) | ||
| Net operating income | $ | 874,072 | $ | 874,851 | ||
| Adjusted funds from operations | $ | 398,997 | $ | 386,441 | ||
| Net income attributable to common and special shareholders | $ | 285,111 | $ | 181,003 | ||
| Average common and special shares outstanding | 1,808,360 | 1,808,360 | ||||
| Income per share | $ | 0.16 | $ | 0.10 | ||
Significant components of the $104,108 increase in net income between the three months ended July 31, 2015 compared to the three months ended July 31, 2014 are:
| Changes in net income - Three months ended July 31, 2015 | |||
| Increase in adjustment of fair value of investment properties | 161,630 | ||
| Decrease in administrative expenses | 42,905 | ||
| Decrease in net operating income | (779 | ) | |
| Decrease in finance income | (1,209 | ) | |
| Increase in current taxes | (9,705 | ) | |
| Increase in deferred taxes on investment properties | (28,448 | ) | |
| Increase in expenses related to strategic review | (60,286 | ) | |
| Increase in net income | $ | 104,108 | |
NET OPERATING INCOME
Net operating income for the three months ended July 31, 2015 was almost unchanged compared with the previous year, increasing $779 to $874,072 compared to $874,851 in 2014, as slightly higher revenues were offset by slightly higher operating costs.
ADJUSTED FUNDS FROM OPERATIONS
| Three months | |||||||
| July 31 | |||||||
| 2015 | 2014 | ||||||
| Funds from operations | $ | 384,067 | $ | 413,141 | |||
| Items not affecting cash: | |||||||
| Straight line rent | 14,930 | 15,590 | |||||
| Sustaining capital expenditures | (42,290 | ) | |||||
| Adjusted funds from operations | $ | 398,997 | $ | 386,441 | |||
| Adjusted funds from operations per share | $ | 0.22 | $ | 0.21 | |||
For the three months ended July 31, 2015 the Company recorded adjusted funds from operations of $398,997 ($0.22 per share) compared to $386,441 ($0.21 per share) in 2014. The absence of sustaining capital expenditures in 2015 offset reduced funds from operations.