Mr. G.W.J. Pottow reports

THE BECKER MILK COMPANY LIMITED: THREE MONTH FINANCIAL RESULTS AND REGULAR DIVIDEND

The Becker Milk Company Ltd. has released its results for the three months ended July 31, 2023.

Highlights:

• Total revenues for the three months ended July 31, 2023, were $742,639, compared with $697,122 for the same period in 2022.
• The non-GAAP (generally accepted accounting principles) financial measure net operating income for Q1 fiscal 2024 was $583,806, compared with $592,376 in fiscal 2023.
• Net income for Q1 fiscal 2024 was 14 cents per share for the year, compared with net income of two cents per share in Q1 fiscal 2023.

Financial highlights

Total revenues for the three months ended July 31, 2023, improved $45,517, compared with the three months ended July 31, 2022, a result of higher finance income.

Components of the $215,188 decrease in net income for the three months ended July 31, 2023, compared with the three months ended July 31, 2022, are shown in an attached table.

As investment property capitalization rates were unchanged during the three months ended July 31, 2023, compared with the three months ended July 31, 2022, there was a favourable change in the fair value adjustment to investment properties.

Non-GAAP (generally accepted accounting principles) financial measures

Net operating income

The non-GAAP financial measure net operating income for the three months ended July 31, 2023, was $583,806, an $8,570 decrease compared with the previous year. Reduced revenue was partially offset by a reduction in operating expenses.

Funds from operations and adjusted funds from operations

For the three months ended July 31, 2023, the company recorded adjusted funds from operations of $246,390 (14 cents per share), compared with $162,697 (nine cents per share) in 2022.

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 Sept. 21, 2023, and payable on Sept. 29, 2023.

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

The company's interim financial statements for the three months ended July 31, 2023, along with the management's discussion and analysis, will be filed with SEDAR+.

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 with similarly titled measures presented by the other publicly traded entities.