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, 2020.

HIGHLIGHTS

• Total revenues for the six months ended October 31, 2020 were $1,524,336 compared to $1,618,664 for the same period in 2019;
• Net operating income for Q2 fiscal 2021 was $1,296,169 compared to $1,328,088 in fiscal 2020;
• Net income for Q2 fiscal 2021 was $ 0.23 per share, compared to $0.25 per share in fiscal 2020.

FINANCIAL HIGHLIGHTS

Net operating income for the six months ended October 31, 2020 was $1,296,169, a $31,919 decrease compared with the previous year as a result of decreased revenue for the quarter.

	Six months ended
	October 31
	2020	2019
Property revenue	$1,478,222	$1,546,575
Finance income	46,114	72,089
Total revenues	$1,524,336	$1,618,664
Property revenue	$1,478,222	$1,546,575
Property operating expenses	(182,053)	(218,487)
Net operating income	$1,296,169	$1,328,088
Adjusted funds from operations	$475,292	$610,365
Net income attributable to common and special shareholders	$416,983	$447,900
Average common and special shares outstanding	1,808,360	1,808,360
Income per share	$0.23	$0.25

Components of the $30,917 decrease in net income for the six months ended October 31, 2020 compared to the six months ended October 31, 2019 are:

Changes in net income - Six months ended October 31, 2020
compared to six months ended October 31, 2019
Decrease in current taxes	$268,065
Increase in fair value adjustment	128,000
Decrease in loss on disposal	25,867
Decrease in strategic review expenses	4,722
Decrease in finance income	(25,975)
Decrease in net operating income	(31,919)
Increase in administrative expenses	(132,568)
Decrease in recovery of deferred taxes	(267,109)
Decrease in net income	($30,917)

ADJUSTED FUNDS FROM OPERATIONS

For the six months ended October 31, 2020 the Company recorded adjusted funds from operations of $475,292 ($0.26 per share) compared to $610,365 ($0.34 per share) in 2019.

	Six months ended
	October 31
	2020	2019
Funds from operations	$477,042	$616,837
Deduct:
Expenses related to strategic review	(1,750)	(6,472)
Adjusted funds from operations	$475,292	$610,365
Adjusted funds from operations per share	$0.26	$0.34

STRATEGIC REVIEW

The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirors. None of those discussions are active at this time. The Board has followed a programme of divesting less desirable sites, which has resulted in the sale of 21 investment properties over the past 6 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 six months ended October 31, 2020, 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 Tel: 416-698-2591