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, 2023.

HIGHLIGHTS

• Total revenues for the year ended April 30, 2023 were $2,860,435 compared to $2,670,042 for the same period in 2022;
• Net operating income for the year was $2,294,028 compared to $2,121,894 in 2022;
• There was a net loss of $0.43 per share for the year, compared to $3.13 net income per share in 2022.

FINANCIAL HIGHLIGHTS

Net operating income for the year ended April 30, 2023 increased $172,134 to $2,294,028 as compared with the previous year, primarily as a result of a non-recurring increase in total property revenue related to completion of negotiations with Mac’s Convenience Stores Inc. regarding base rents for most of its locations. In addition, property operating expenses were lower in the year ended April 30, 2023.

	Year ended
	April 30
	2023		2022
Property revenue	$2,712,093		$2,630,175
Finance income	148,342		39,867
Total revenues	$2,860,435		$2,670,042
Net income (loss) attributable to common and special shareholders	($778,354)		$5,665,984
Average common and special shares outstanding	1,808,360		1,808,360
Income (loss) per share	($0.43)		$3.13

	Year ended
	April 30
	2023		2022
Property revenue	$2,712,093		$2,630,175
Property operating expenses	(418,065)		(508,281)
Net operating income	$2,294,028		$2,121,894

Components of the $6,444,338 decrease in net income for the year ended April 30, 2023 compared to the year ended April 30, 2022 are:

Changes in Net Income - Year ended April 30, 2023
compared to year ended April 30, 2022
Increase in recovery of deferred income taxes	$968,366
Increase in net operating income	172,134
Increase in finance income	108,475
Decrease in administrative expenses	74,463
Decrease in expenses related to strategic review	62,110
Increase in loss on disposal	(10,494)
Increase in current taxes	(136,034)
Unfavourable change in fair value adjustment	(7,683,358)
Decrease in net income	($6,444,338)

The large unfavourable change in the fair value adjustment to investment properties was the result of revised assumptions with respect to capitalization rates as at April 30, 2023.

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2023 the Company recorded adjusted funds from operations of $612,280 ($0.34 per share) compared to $553,929 ($0.31 per share) in 2022.

		Year ended
		April 30
		2023		2022
Net income (loss)		($778,354)		$5,665,984
Add (deduct) items not affecting cash:
	Adjustment to fair value of investment properties	1,690,358		(5,993,000)
	Loss (gain) on sale of investment properties	15,077		4,583
	Tax on gains from sale of property	54,736		9,065
	Deferred income taxes	(169,820)		798,546
	Expenses related to strategic review	40,641		102,751
	Sustaining capital expenditures	(240,358)		(34,000)
Adjusted funds from operations		$612,280		$553,929
Adjusted funds from operations per share		$0.34		$0.31

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.

The Company’s annual financial statements for the year ended April 30, 2023, along with the Management’s Discussion and Analysis and Annual Information Form 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