The Becker Milk Company Limited: Nine Month Financial Results and Regular Dividend

The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the nine months ended January 31, 2024.

HIGHLIGHTS

• Total revenues for the nine months ended January 31, 2024 were $2,326,873 compared to $2,162,713 for the same period in 2023.
• The non-GAAP financial measure Net Operating Income for the first nine months fiscal 2024 was $1,847,990 compared to $1,767,529 for the first nine months fiscal 2023.
• Net loss for the first nine months fiscal 2024 was $0.13 per share, compared to $1.02 net loss per share for the first nine months fiscal 2023.

FINANCIAL HIGHLIGHTS

Total revenue for the nine months ended January 31, 2024 improved $164,160 compared to the nine months ended January 31, 2023, largely a result of higher finance income.

	Nine months ended
	January 31
	2024		2023
Property revenue	$2,120,481		$2,056,499
Finance income	206,392		106,214
Total revenues	$2,326,873		$2,162,713
Net income (loss) attributable to common and special shareholders	($229,305)		($1,843,521)
Average common and special shares outstanding	1,808,360		1,808,360
Income (loss) per share	($0.13)		($1.02)

Components of the $1,614,216 decrease in the net loss for the nine months ended January 31, 2024 compared to the nine months ended January 31, 2023 are:

Changes in Net Loss - Nine months ended January 31, 2024
compared to nine months ended January 31, 2023
Decrease in the unfavourable fair value adjustment	$1,762,273
Increase in finance income	100,178
Increase in net operating income	80,461
Decrease in expenses related to strategic review	40,641
Increase in gain on disposal	17,199
Increase in administrative expenses	(15,078)
Increase in current taxes	(40,001)
Decrease in recovery of deferred income taxes	(331,457)
Decrease in net loss	$1,614,216

The decrease in the unfavourable fair value adjustment to investment properties was the result of a lower upward adjustment in investment property capitalization rates during nine months ended January 31, 2024, as compared to the nine months ended January 31, 2023.

Non-GAAP financial measures

Net operating income

The non-GAAP financial measure Net Operating Income for the nine months ended January 31, 2024 was $1,847,990, a $80,461 increase compared with the previous year. This increase was the result of both improved revenue and reduced property operating expenses.

	Nine months ended
	January 31
	2024		2023
Property revenue	$2,120,481		$2,056,499
Property operating expenses	(272,491)		(288,970)
Net operating income	$1,847,990		$1,767,529

Funds from operations and Adjusted funds from operations

For the nine months ended January 31, 2024 the Company recorded Adjusted funds from operations of $773,728 ($0.43 per share) compared to $636,382 ($0.35 per share) in 2023.

		Nine months ended
		January 31
		2024		2023
Net income (loss)		($229,305)		($1,843,521)
Add (deduct) items not affecting cash:
	Adjustment to fair value of investment properties	1,197,885		2,960,158
	Loss (gain) on sale of investment properties	(2,122)		15,077
	Tax on gains from sale of property	54,736		9,065
	Deferred income taxes	(179,581)		(511,038)
Funds from operations		841,613		629,741
Add (deduct) non-operating items:
	Expenses related to strategic review	-		40,641
	Sustaining capital expenditures	(67,885)		(34,000)
Adjusted funds from operations		$773,728		$636,382
Adjusted funds from operations per share		$0.43		$0.35

STRATEGIC REVIEW

The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirers. While the Company has engaged in some discussions within the last year, none of those discussions are active at this time. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.

DIVIDEND

The Directors of the Company have declared the regular semi-annual dividend on Class B Special and Common Shares of 40 cents per share. This dividend of 40 cents will be paid to those shareholders of record as of March 20, 2024, and payable on March 28, 2024.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

The Company’s interim financial statements for the nine months ended January 31, 2024, 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