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, 2022.

HIGHLIGHTS

• Total revenues for the year ended April 30, 2022 were $2,670,042 compared to $3,097,155 for the same period in 2021;
• Net operating income for the year was $2,121,894 compared to $2,367,836 in 2021;
• Net income for the year was $3.13 per share, compared to $1.96 per share in 2021.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2022 decreased $245,942 to $2,121,894 as compared with the previous year, primarily as a result of non-recurring adjustments to property revenue resulting from completion of negotiations with Mac’s Convenience Stores Inc. regarding base rents for most of its locations. In determining net operating income the revenue reduction was partially offset by lower property operating expenses.

	Year ended
	April 30
	2022		2021
Property revenue	$2,630,175		$3,024,970
Finance income	39,867		72,185
Total revenues	$2,670,042		$3,097,155
Net income attributable to common and special shareholders	$5,665,984		$3,536,378
Average common and special shares outstanding	1,808,360		1,808,360
Income per share	$3.13		$1.96
	Year ended
	April 30
	2022		2021
Property revenue	$2,630,175		$3,024,970
Property operating expenses	(508,281	)	(657,134	)
Net operating income	$2,121,894		$2,367,836

        Components of the $2,129,606 decrease in net income for the year ended April 30, 2021 compared to the year ended April 30, 2020 are:

Changes in net income - Year ended April 30, 2022
compared to year ended April 30, 2021
Provision for environmental liability
Increase in fair value adjustment	$2,748,000
Decrease in current taxes	76,581
Decrease in administrative expenses	43,752
Decrease loss on disposal	18,038
Decrease in finance income	(32,318	)
Increase strategic review expenses	(99,014	)
Decrease in net operating income	(245,942	)
Increase in deferred tax charges	(379,491	)
Decrease in gain on expropriation settlement	0
Increase in net income	$2,129,606

The large increase in the fair value adjustment to investment properties resulted from revised assumptions with respect to capitalization rates and market rents reflecting market conditions as at April 30, 2022.

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2022 the Company recorded adjusted funds from operations of $348,427 ($0.19 per share) compared to $757,017 ($0.42 per share) in 2021.

		Year ended
		April 30
		2022		2021
Net income		$5,665,984		$3,536,378
Add (deduct) items not affecting cash:
	Fair value adjustment to investment properties	(5,993,000	)	(3,245,000	)
	Loss (gain) on sale of investment properties	4,583		22,621
	Tax on gains from sale of property	9,065		27,700
	Deferred income taxes	798,546		419,055
	Expenses related to strategic review	(102,751	)	(3,737	)
	Sustaining capital expenditures	(34,000	)	0
Adjusted funds from operations		$348,427		$757,017
Adjusted funds from operations per share		$0.19		$0.42

STRATEGIC REVIEW

Since 2014 the Board of Directors has been evaluating strategic directions for the Company and has engaged in discussions with potential acquirors. While the Company has engaged in some discussions during the last quarter, 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 26 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, 2022, 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