BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

March 31, 2009 23:25 ET

BAM Investments Corp. Announces 2008 Results

TORONTO, ONTARIO--(Marketwire - March 31, 2009) - BAM Investments Corp. (TSX:BNB) today announced its financial results for the year ended December 31, 2008.

The company recorded net income of $23.5 million for the year ended December 31, 2008, compared with $7.5 million in 2007. After providing for preferred share dividend obligations, the net income per common share was $0.30 for 2008, compared with $0.09 in 2007. Net income in 2008 includes a pre-tax gain of $10.6 million ($0.13 per share) on the repurchase of preferred share obligations.

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

Years Ended Three months ended
December 31 December 31
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$thousands, except per share amounts 2008 2007 2008 2007
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Investment income
Dividend and other $ 37,406 $ 32,404 $ 10,722 $ 6,643
Gain on repurchase of preferred
shares 10,604 - 10,604 -
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48,010 32,404 21,326 6,643
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Expenses
Operating 644 1,033 135 273
Interest 4,597 4,458 1,125 898
Amortization of deferred
financing costs 1,682 1,662 419 451
Retractable preferred share
dividends 20,292 19,465 5,007 4,111
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27,215 26,618 6,686 5,733
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Net income before tax 20,795 5,786 14,640 910
Future tax recovery (expense) 2,741 1,759 (4,127) 131
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Net income 23,536 7,545 10,513 1,041
Preferred share dividends - (213) - -
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Net income for common
shareholders $ 23,536 $ 7,332 $ 10,513 $ 1,041
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Net income per common share $ 0.30 $ 0.09 $ 0.13 $ 0.01
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Net Book Value

The net book value of the company's common shares as at December 31, 2008 based on the market price of Brookfield's Class A Shares of $18.54 was $8.14 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 December 31, 2008.



Statement of Financial Position as at December 31, 2008

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$thousands except per share amounts Net Book Value
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Assets
Investment in Brookfield Asset Management Inc.(1) $ 1,028,343
Investment in Brookfield Infrastructure Partners(2) 30,070
Cash and equivalents 42,830
Other assets 9,851
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$ 1,111,094
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Liabilities
Accounts payable and provisions $ 2,404
Retractable preferred shares(3) 369,654
Future tax liability(4) 92,709
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464,767
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Shareholders' Equity
Common equity 646,327
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$ 1,111,094
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Net Book Value Per Common Share(5) $ 8.14
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1) The investment in Brookfield Asset Management Inc. consists of 55.5
million Class A Shares at a bid price of $18.54 per Class A Share as at
December 31, 2008. This represents the total Class A Shares owned of 60.8
million less 5.3 million Class A Shares that have been set aside for
settlement of exchangeable debentures issued by the company. The
debentures were redeemed in exchange for the associated Class A Shares on
January 30, 2009.
2) The investment in Brookfield Infrastructure Partners consists of 2.2
million Partnership Units at a bid price of $13.55 per Partnership Unit
at December 31, 2008 This represents the total Partnership Units of 2.4
million less 0.2 million Partnership Units that have been set aside for
settlement of exchangeable debentures issued by the company. The
debentures were redeemed in exchange for the associated Partnership Units
Shares on January 30, 2009.
3) Represents $373 million retractable preferred shares gross of $3.4
million unamortized issue costs.
4) The future tax liability represents the potential future income tax
liability of the company recorded for accounting purposes 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 December 31, 2008, there were 79,387,410 common shares of the
company issued and outstanding.


Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. The words "potential" and "estimated" 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 potential future income taxes.

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 Investments Corp.
    Brian D. Lawson
    (416) 359-8620