BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

November 14, 2007 17:13 ET

BAM Investments Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - BAM Investments Corp. (TSX:BNB) today announced its financial results for the third quarter ended September 30, 2007.

BAM Investments Corp. recorded net income of $1.6 million for the three months ended September 30, 2007 compared to net income of $1.6 million in the same period last year. After providing for interest and dividends on financing obligations, net income per common share was $0.03 for the three month period, compared with a net income per common share of $nil for the comparable period in 2006.

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 Nine months ended
(unaudited) September 30 September 30
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$thousands, except per share
amounts 2007 2006 2007 2006
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Investment income $ 8,464 $ 6,730 $ 25,761 $ 14,395
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Expenses
Operating 75 66 760 382
Interest expense on
promissory note - 1,080 - 1,080
Interest expense on
exchangeable debentures 1,402 - 3,560 -
Amortization of deferred
financing costs 427 377 1,211 1,133
Retractable preferred
share dividend 5,118 2,943 15,354 8,829
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7,022 4,466 20,885 11,424
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Net income before income taxes 1,442 2,264 4,876 2,971
Future tax recovery (expense) 187 (710) 1,628 10,534
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Net income $ 1,629 $ 1,554 $ 6,504 $ 13,505
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Net income per common share(1) $ 0.03 $ 0.00 $ 0.08 $ (0.13)
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(1) Adjusted to reflect ten-for-one share split


Net Asset Value

The calculated net asset value of the company's common shares as at September 30, 2007 based on the stock market price of Brookfield's Class A shares of $38.07 was $18.91 per share. BAM Investments holds 6.98 Brookfield Class A shares for every 10 common shares of BAM Investments. The net asset value per common share does not take into account tax and transaction costs on disposition.



Statement of Financial Position
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As at September 30, 2007
(unaudited)
$thousands, except per share amounts Net Asset Value
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Assets
Cash and equivalents $ 51,667
Investment in Brookfield Asset Management Inc.(1) 2,111,599
Other assets 9,566
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$ 2,172,832
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Liabilities
Accounts payable and provisions 2,790
Retractable preferred shares(2) 399,468
Future tax liability(3) 259,368
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661,626
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Shareholders' Equity
Common equity 1,511,206
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$ 2,172,832
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Net Asset Value Per Common Share(4) $ 18.91
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Notes:

1) The investment in Brookfield Asset Management Inc. consists of 60.8 million Class A Limited Voting shares of Brookfield less the value of debentures that are exchangeable into 5.3 million Brookfield Class A shares. The net investment of 55.5 million shares had a market value of $38.07 per Brookfield share as at September 30, 2007.

2) Represents $405 million retractable preferred shares issued by BAM Split Corp, which is a subsidiary of the company, net of unamortized issuance costs.

3) 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.

4) As at September 30, 2007, there were 79,418,910 common shares of the company issued and outstanding.

BAM Investments Corp. is a publicly listed investment company whose principal business mandate is to provide its common shareholders with a leveraged investment in Brookfield common shares. The company's common shares trade on the Toronto Stock Exchange under the ticker symbol "BNB".

Note: This news release contains "forward-looking statements". The words "believe", "expect", "anticipate", "intend", "estimate" 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