BAM Split Corp.
TSX : BNA

BAM Split Corp.

December 22, 2009 16:31 ET

BAM Split Corp. Announces 2009 Annual Results

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2009) - BAM Split Corp. (TSX:BNA) announced today that income available for distribution for the year ended September 30, 2009, was $26.0 million, compared to $19.4 million for the same period in the prior year. Dividend receipts increased as a result of a larger number of Brookfield Asset Management Inc. Class A Limited Voting Shares ("Brookfield Shares") held during the period. The fair value of the company's investment portfolio decreased by $171.1 million during the year ended September 30, 2009 compared to an increase of $391.1 million in the same period in 2008.

For the year ended September 30, 2009, the company paid dividends of $19.9 million to holders of Preferred Class A, Class AA Series I and Class AA Series III Shares, compared to $20.5 million for the same period in the prior year. Dividends paid to holders of capital shares for the year ended September 30, 2009 were $9.8 million, compared to $37.1 million paid in the prior year. Capital share dividends in the prior year included the distribution of the special dividend of Brookfield Infrastructure Partners limited partnership units, which had been received as a special distribution on the Brookfield Shares.

The net asset value per unit, consisting of one preferred share and one capital share, was $88.05 based on a Brookfield Share price of $24.37 as at September 30, 2009. The net asset value per preferred share is posted monthly on www.bamsplit.com.

STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS        
For the years ended September 30            
$thousands, except per share amounts   2009     2008  
   
Income            
  Investment income $ 29,141   $ 22,782  
   
Expenses            
  Operating   248     247  
  Amortization of share issue costs   1,689     1,682  
  Class A Preferred Share redemption premium   1,200      
  Future tax expense       1,479  
    3,137     3,408  
Income available for distribution   26,004     19,374  
Dividends paid on Senior Preferred shares   (19,898 )   (20,473 )
Income available for distribution on capital and Class A Shares   6,106     (1,099 )
Change in realized and unrealized depreciation of investment   (171,118 )   (391,090 )
Results of investment operations $ (165,012 ) $ (392,189 )
   
Opening retained earnings $ 728,518   $ 1,157,794  
Results of investment operations   (165,012 )   (392,189 )
Dividends paid on capital shares   (9,776 )   (37,087 )
Redemption of capital shares   (108 )    
Retained earnings, end of year $ 553,622   $ 728,518  
Dividends per Senior Preferred share            
    – Class A1 $ 1.2792   $ 1.5625  
    – Class AA, Series I $ 1.2375   $ 1.2375  
    – Class AA, Series III $ 1.0876   $ 1.0876  
    – Class AA, Series IV2 $ 0.2632   $  

1. The Class A Preferred Shares were redeemed on July 27, 2009.
2. The Class AA Series IV Preferred Shares were issued on July 9, 2009.

BAM Split Corp. owns 53,160,644 Brookfield Shares in order to generate quarterly fixed cumulative preferential dividends for the holders of the company's preferred shares and to enable the holders of the company's capital shares to participate in any capital appreciation of Brookfield Shares. Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has approximately US$90 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and BAM.A respectively and on Euronext under the symbol BAMA.

Derek E. Gorgi, Chief Financial Officer, will be available at (416) 359-8590 to answer any questions on the company's financial results.

Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. The words "generate" and "enable" and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking information. Forward-looking information in this news release includes statements with regard to the generation of cumulative preferential dividends for the holders of the company's preferred shares and potential participation by the holders of the company's capital shares in the capital appreciation of Brookfield Shares.

Although the company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking information and statements because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward- looking information and statements.

Factors that could cause actual results to differ materially from those contemplated or implied by the forward-looking information and statements include: the behavior of financial markets, including fluctuations in interest and exchange rates, availability of equity and debt financing and other risks and factors detailed from time to time in the company's other documents filed with the Canadian securities regulators.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to the company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as may be required by law, the company undertakes no obligation to publicly update or revise any forward- looking information or statements, whether written or oral, that may be as a result of new information, future events or otherwise. Reference should be made to the company's most recent Annual Information Form for a description of the major risk factors.

Contact Information

  • BAM Split Corp.
    Derek E. Gorgi
    Chief Financial Officer
    (416) 359-8590