Brascade Corporation
TSX : BCA.PR.B

May 12, 2006 17:24 ET

Brascade Corporation Announces First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 12, 2006) - Brascade Corporation (TSX:BCA.PR.B) today announced a net loss for the three months ended March 31, 2006 of $9.8 million, compared to income of $72.4 million for the same period last year. The results for the first quarter of 2005 include a contribution from the company's mining and metal investments, which were subsequently sold during 2005 for a substantial gain, whereas the results for the first quarter of 2006 reflect a loss incurred in the company's paper investments.

Following the sale of substantially all of Brascade's interest in Falconbridge Limited in August 2005, the company no longer records any equity income from mining and metals investments. These investments contributed $42.6 million for the first three months of 2005.

Forest product investments contributed a net loss of $13.6 million for the first three months of 2006, compared with income of $31.5 million for the same period last year. Panelboard investments contributed income of $21.6 million, which was a strong performance but lower than the same quarter of 2005 as oriented strandboard prices came off their record high levels. Paper investments generated a loss of $35.2 million, arising mainly from closure of a pulp mill in New Hampshire and the writedown of an investment in a US paper company.

The company's Board of Directors declared the regular quarterly dividends on its Senior Preferred Shares, Series B payable on June 30, 2006 to shareholders of record on June 20, 2006.

Brascade Corporation currently holds investments in the forest products and property sec-tors. The common shares of Brascade are wholly owned by Brookfield Asset Management Inc., an asset management company focussed on property, power and infrastructure assets.

Edward C. Kress, Chairman and President, will be available at 416-363-9491 to answer any questions on the company's financial results.

This news release contains forward-looking statements concerning the company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.



Consolidated Statement of Operations
---------------------------------------------------------------------
---------------------------------------------------------------------
(unaudited) Three months ended March 31
US$ millions, except per share amounts 2006 2005
---------------------------------------------------------------------
Income
Equity income from Falconbridge Limited $ - $ 42.6
Equity income from Norbord Inc. 21.6 30.2
Equity income (loss) from Fraser Papers
Inc. (35.2) 1.3
Foreign exchange gain 3.6 5.0
Other income 9.3 4.5
---------------------------------------------------------------------
(0.7) 83.6
---------------------------------------------------------------------
Expenses
Interest expense 9.0 11.2
Corporate 0.1 -
---------------------------------------------------------------------
9.1 11.2
---------------------------------------------------------------------
Net income (loss) $ (9.8) $ 72.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Net income (loss) per common share $ (0.21) $ 2.90
---------------------------------------------------------------------
---------------------------------------------------------------------


Consolidated Statement of Retained Earnings (Deficit)
---------------------------------------------------------------------
---------------------------------------------------------------------
(unaudited) Three months ended March 31
US$ millions 2006 2005
---------------------------------------------------------------------
Deficit, beginning of period $ (331.3) $(1,008.8)
Net income (loss) for the period (9.8) 72.4
---------------------------------------------------------------------
Deficit, end of period $ (341.1) $ (936.4)
---------------------------------------------------------------------
---------------------------------------------------------------------


Consolidated Balance Sheet
---------------------------------------------------------------------
---------------------------------------------------------------------
March 31 December 31
US$ millions 2006 2005
---------------------------------------------------------------------
(unaudited)
Assets
Loans receivable $ 212.7 $ 214.8
Securities 432.7 434.9
Investment in Norbord Inc. 216.5 199.3
Investment in Fraser Papers Inc. 162.9 196.9
Investment in Canary Wharf Group, plc 342.3 342.3
Other assets 0.8 -
---------------------------------------------------------------------
$ 1,367.9 $ 1,388.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities
Accounts payable $ 206.1 $ 217.4
Retractable preferred shares 476.6 478.2
Shareholders' equity 685.2 692.6
---------------------------------------------------------------------
$ 1,367.9 $ 1,388.2
---------------------------------------------------------------------
---------------------------------------------------------------------



Contact Information

  • Brascade Corporation
    Edward C. Kress
    Chairman and President
    (416) 363-9491