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, 2021.

HIGHLIGHTS

• Total revenues for the nine months ended January 31, 2021 were $2,262,016 compared to $2,439,865 for the same period in 2020.
• Net operating income for Q3 fiscal 2021 was $1,885,131 compared to $1,973,203 in fiscal 2020.
• Net income for Q3 fiscal 2021 was $ 0.35 per share, compared to $0.41 per share in fiscal 2020.

FINANCIAL HIGHLIGHTS

Net operating income for the nine months ended January 31, 2021 was $1,885,131, a $88,072 decrease compared with the previous year as a result of decreased revenue for the quarter.

					Nine months ended
					January 31
						2021				2020
Property revenue					$	2,201,208			$	2,329,337
Finance income						60,808				110,528
Total revenues					$	2,262,016			$	2,439,865
Property revenue					$	2,201,208			$	2,329,337
Property operating expenses						(316,077	)			(356,134	)
Net operating income					$	1,885,131			$	1,973,203
Adjusted funds from operations					$	666,526			$	923,914
Net income attributable to common and special shareholders					$	631,500			$	741,431
Average common and special shares outstanding						1,808,360				1,808,360
Income per share					$	0.35			$	0.41

Components of the $109,931 decrease in net income for the nine months ended January 31, 2021 compared to the nine months ended January 31, 2020 are:

Changes in net income - Nine months ended January 31, 2021
compared to nine months ended January 31, 2020
Decrease in current taxes					$	307,015
Decrease in negative fair value adjustment						151,000
Increase in gain on disposal						26,686
Decrease in strategic review expenses						2,735
Decrease in finance income						(49,720	)
Decrease in net operating income						(88,072	)
Increase in administrative expenses						(210,580	)
Decrease in recovery of deferred taxes						(248,995	)
Decrease in net income					($	109,931	)

ADJUSTED FUNDS FROM OPERATIONS

For the nine months ended January 31, 2021 the Company recorded adjusted funds from operations of $666,526 ($0.37 per share) compared to $923,914 ($0.51 per share) in 2020.

					Nine months ended
					January 31
						2021				2020
Funds from operations					$	670,263			$	930,386
Deduct:
Expenses related to strategic review						(3,737	)			(6,472	)
Adjusted funds from operations					$	666,526			$	923,914
Adjusted funds from operations per share					$	0.37			$	0.51

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 24 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 nine months ended January 31, 2021, 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, 2021 and payable on March 31, 2021.

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