BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

August 14, 2008 18:19 ET

BAM Investments Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2008) - BAM Investments Corp. (TSX:BNB) today announced its financial results for the second quarter ended June 30, 2008.

The company recorded net income of $0.6 million ($0.01 per share) for the quarter ended June 30, 2008, compared with $1.8 million ($0.02 per share) in the same period last year. In the first quarter of 2008, the company received a special dividend on the Brookfield Class A shares valued at $50.1 million.

The company's principal investment is a direct and indirect interest in 55.5 million Class A Limited Voting shares ("Class A shares") of Brookfield Asset Management Inc. ("Brookfield").



Consolidated Statements of Operations

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Three months ended June 30 Six months ended June 30
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(unaudited)
$thousands, except per
share amounts 2008 2007 2008 2007
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Investment income
Dividends, interest
and other $ 9,405 $ 9,474 $ 17,197 $ 17,297
Special dividend - - 50,056 -
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9,405 9,474 67,253 17,297
Expenses
Operating 179 219 401 685
Interest expense 1,056 1,083 2,083 2,158
Amortization of
deferred
financing costs 426 406 844 784
Subsidiary preferred
share dividends 5,118 6,125 10,236 10,236
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6,779 7,833 13,564 13,863
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Net income before
income taxes 2,626 1,641 53,689 3,434
Future tax expense
(recovery) 2,042 (144) 1,580 (1,441)
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Net income $ 584 $ 1,785 $ 52,109 $ 4,875
Preferred share
dividends - - - (213)
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Net income for common
shareholders $ 584 $ 1,785 $ 52,109 $ 4,662
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Net income per common
share $ 0.01 $ 0.02 $ 0.66 $ 0.06
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Net Book Value

The net book value of the company's common shares as at June 30, 2008 based on the stock market price of Brookfield's Class A shares of $33.10 was $16.76 per share. BAM Investments holds 6.98 Brookfield Class A shares for every 10 common shares of BAM Investments. The information in the following table has been extracted from the company's consolidated balance sheet as at June 30, 2008.



Statement of Financial Position

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As at June 30, 2008 ($thousands, except per share amounts) Net Asset Value
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Assets
Investment in Brookfield Asset Management Inc.(1) $ 1,835,932
Investment in Brookfield Infrastructure Partners(2) 48,661
Cash and equivalents 54,783
Other assets 9,435
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$ 1,948,811
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Liabilities
Accounts payable and provisions $ 2,964
Retractable preferred shares(3) 397,732
Future tax liability(4) 217,365
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618,061
Shareholders' Equity
Common shares 1,330,750
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$ 1,948,811
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Net Asset Value Per Common Share(5) $ 16.76
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Notes:
(1) The investment in Brookfield Asset Management Inc. consists of
55.5 million Class A shares at a bid price of $33.10 per Brookfield
share at June 30, 2008. This represents the total shares owned of
60.8 million Class A shares less 5.3 million Class A that have been set
aside for settlement of the long-term exchangeable debentures issued
by the company.
(2) The investment in Brookfield Infrastructure Partners consists of
2.4 million Limited Partnership Units at a bid price of $20.02 per unit.
(3) Represents $405 million retractable preferred shares issued by
BAM Split Corp, which is a subsidiary of the company, net of unamortized
issuance costs.
(4) The future tax liability represents the potential future income tax
liability of the company based on the difference between the carrying
values of the company's assets and liabilities and their respective tax
values, as well as giving effect to estimated capital and non-capital
losses as at the date of this statement.
(5) As at June 30, 2008, there were 79,418,910 common shares of the company
issued and outstanding.


Note: This news release contains "forward-looking statements". The words "potential" and "estimated" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking 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 achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • BAM Investments Corp.
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8620