BEK.B Becker Milk Co Ltd

The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the six months ended October 31, 2018.

HIGHLIGHTS

• Total revenues for the six months ended October 31, 2018 were $1,522,067 compared to $1,732,564 for the same period in 2017;
• Net operating income for Q2 fiscal 2019 was $1,247,974 compared to $1,457,513 in fiscal 2018;
• Net income for Q2 fiscal 2019 was $ 0.23 per share, compared to $0.43 per share in fiscal 2018.

FINANCIAL HIGHLIGHTS

Net operating income for the six months ended October 31, 2018 decreased $209,539 compared with the previous year to $1,247,974, as a result of decreased revenue, resulting from vacancies and the sale of properties.

					Six months ended
					October 31
					2018				2017
Property revenue					$1,478,029				$1,713,025
Finance income						44,038				19,539
Total revenues					$1,522,067				$1,732,564
Property revenue					$1,478,029				$1,713,025
Property operating expenses						(230,055	)			(255,512	)
Net operating income					$1,247,974				$1,457,513
Adjusted funds from operations					$524,795				$643,264
Net income attributable to common and special shareholders					$406,908				$774,823
Average common and special shares outstanding						1,808,360				1,808,360
Income per share					$0.23				$0.43

Components of the $367,915 decrease in net income for the six months ended October 31, 2018 compared to the six months ended October 31, 2017 are:

Changes in net income - Six months ended October 31, 2018
compared to three months October 31, 2017
Decrease in net operating income					($209,539		)
Decrease in fair value adjustment						(265,156	)
Increase in administrative expenses						(30,198	)
Decrease in recovery of deferred taxes on investment properties						(4,957	)
Decrease in current taxes						94,659
Increase in finance income						24,499
Decrease in loss on disposal						12,127
Decrease in strategic expenses						10,650
Decrease in net income					($367,915		)

ADJUSTED FUNDS FROM OPERATIONS

For the six months ended October 31, 2018 the Company recorded adjusted funds from operations of $524,795 ($0.29 per share) compared to $643,264 ($0.36 per share) in 2017.

					Six months ended
					October 31
						2018				2017
Funds from operations					$550,889				$655,852
Items not affecting cash:
	Straight line rent
	Expenses related to strategic review					(1,938	)			12,588
	Sustaining capital expenditures					(24,156	)			-
Adjusted funds from operations					$524,795				$643,264
Adjusted funds from operations per share					$0.29				$0.36

STRATEGIC REVIEW

Since 2014 the Board of Directors has been evaluating strategic directions for the company and has engaged in discussions with potential acquirors. 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 15 investment properties. 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 six months ended October 31, 2018, 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 DirectorsG.W.J. Pottow, PresidentTel: 416-698-2591