BEK.B Becker Milk Co Ltd

The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the year ended April 30, 2019.

HIGHLIGHTS

• Total revenues for the year ended April 30, 2019 were $3,143,640 compared to $3,293,197 for the same period in 2018;
• Net operating income for the year was $2,490,962 compared to $2,702,767 in 2018;
• Net income for the year was $0.72 per share, compared to $1.35 per share in 2018.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2019 decreased $211,805 to $2,490,962 as compared with the previous year, principally as a result of decreased revenues.

					Year ended
					April 30
						2019				2018
Property revenue					$3,039,439				$3,254,846
Finance income						104,201				38,351
Total revenues					$3,143,640				$3,293,197
Property revenue					$3,039,439				$3,254,846
Property operating expenses						(548,477	)			(552,079	)
Net operating income					$2,490,962				$2,702,767
Adjusted funds from operations					$996,515				$1,070,295
Net income attributable to common and special shareholders					$1,310,475				$2,447,089
Average common and special shares outstanding						1,808,360				1,808,360
Income per share					$0.72				$1.35

Components of the $1,136,614 decrease in net income for the year ended April 30, 2019 compared to the year ended April 30, 2018 are:

Changes in net income - Year ended April 30, 2019
compared to year ended April 30, 2018
Decrease in fair value adjustment						($1,446,156	)
Decrease in net operating income						(211,805	)
Increase in administrative expenses						(72,739	)
Decrease in loss on disposal						26,877
Decrease in strategic expenses						43,658
Decrease in current taxes						57,947
Increase in finance income						65,850
Decrease in recovery of deferred taxes on investment properties						155,717
Increase in gain on expropriation settlement						244,037
Decrease in net income						($1,136,614	)

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2019 the Company recorded adjusted funds from operations of $996,515 ($0.55 per share) compared to $1,070,295 ($0.59 per share) in 2018.

					Year ended
					April 30
						2019				2018
Funds from operations					$1,033,794				$1,156,076
Items not affecting cash:
	Expenses related to strategic review					(13,123	)			(56,781	)
	Sustaining capital expenditures					(24,156	)			(29,000	)
Adjusted funds from operations					$996,515				$1,070,295
Adjusted funds from operations per share					$0.55				$0.59

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 17 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, 2019, 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