BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

November 14, 2008 16:31 ET

BAM Investments Announces Third Quarter Results

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

The company recorded net income of $2.9 million ($0.03 per share) for the quarter ended September 30, 2008, compared with $1.6 million ($0.02 per share) in the same period last year. Net income for the nine months ended September 30, 2008 reflects a special dividend received 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 Nine months ended
(unaudited) September 30 September 30
$thousands, except per -------------------------------------------
share amounts 2008 2007 2008 2007
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Investment income
Dividends, interest and other $9,487 $8,464 $26,684 $25,761
Special dividend - - 50,056 -
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9,487 8,464 76,740 25,761
Expenses
Operating 108 75 509 760
Interest expense 1,389 1,402 3,472 3,560
Amortization of deferred
financing costs 419 427 1,263 1,211
Subsidiary preferred
share dividends 5,049 5,118 15,285 15,354
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6,965 7,022 20,529 20,885
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Net income before income taxes 2,522 1,442 56,211 4,876
Future tax (recovery) expense (400) (187) 1,180 (1,628)
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Net income $2,922 $1,629 $55,031 $6,504
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Net income per common share $0.03 $0.02 $0.69 $0.08
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Net Book Value

The net book value of the company's common shares as at September 30, 2008 based on the stock market price of Brookfield's Class A shares of $28.66 was $14.09 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 September 30, 2008.



Statement of Financial Position
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As at September 30, 2008 ($thousands, except per
share amounts) Net Asset Value
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Assets
Investment in Brookfield Asset Management Inc.(1) $1,589,661
Investment in Brookfield Infrastructure Partners(2) 40,500
Cash and equivalents 57,322
Other assets 9,675
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$1,697,158
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Liabilities
Accounts payable and provisions $3,094
Retractable preferred shares(3) 397,821
Future tax liability(4) 176,987
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577,902
Shareholders' Equity
Common shares 1,119,256
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$1,697,158
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Net Asset Value Per Common Share(5) $14.09
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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 $28.66 per Brookfield share at
September 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 $16.68 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 and preferred shares acquired which the company intends to
redistribute.
(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 September 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