BAM Investments Corp.

BAM Investments Corp.

March 31, 2010 19:15 ET

BAM Investments Corp. Announces 2009 Results

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - BAM Investments Corp. (TSX:BNB) today announced its financial results for the year ended December 31, 2009.

The company recorded net income of $18.6 million for the year ended December 31, 2009, compared with $23.5 million in 2008. After providing for preferred share dividend obligations, the net income per common share was $0.23 for 2009, compared with $0.30 in 2008. Net income in 2009 includes a pre-tax gain of $1.4 million ($0.02 per share) on the repurchase of preferred share obligations. The 2008 results included a $10.6 million ($0.13 per share) gain on the repurchase of preferred share liabilities.

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"), representing 6.99 Brookfield Class A Shares for every 10 common shares of BAM Investments.

Consolidated Statements of Operations        
    Three months ended     Years Ended
      December 31         December 31
thousands, except per share amounts   2009   2008     2009     2008
Investment income                    
  Dividends and interest $ 8,479 $ 10,468   $ 36,000   $ 37,152
  Gain on repurchase of preferred shares     10,604     1,394     10,604
  Other     254     55     254
    8,479   21,326     37,449     48,010
  Operating   287   135     947     644
  Interest     1,125     137     4,597
  Amortization of deferred financing costs   442   419     1,735     1,682
  Retractable preferred share dividends   4,979   5,007     18,749     20,292
    5,708   6,686     21,568     27,215
Net income before tax   2,771   14,640     15,881     20,795
  Class A Preferred Share redemption premium         (1,200 )  
  Future tax recovery (expense)   422   (4,127 )   3,887     2,741
Net income (loss) $ 3,193 $ 10,513   $ 18,568   $ 23,536
Net income (loss) for common shareholders $ 3,193 $ 10,513   $ 18,568   $ 23,536
Net income (loss) per common share $ 0.04 $ 0.13   $ 0.23   $ 0.30

Net Book Value

The net book value of the company's common shares as at December 31, 2009 was $11.28 per share based on the market price of Brookfield's Class A Shares at that date of $23.34 per share. The information in the following table has been extracted from the company's consolidated balance sheet as at December 31, 2009.

Statement of Financial Position as at December 31, 2009  
thousands except per share amounts Net Book Value
  Investment Portfolio    
    Brookfield Asset Management Inc.1 $ 1,294,582
    Brookfield Infrastructure Partners L.P.2   39,032
    Other securities   32,247
  Cash and equivalents   23,104
  Other assets   2,379
  $ 1,391,344
  Accounts payable and provisions $ 2,077
  Retractable preferred shares3   361,577
  Future tax liability4   133,233
Shareholders' Equity    
  Common equity   894,457
  $ 1,391,344
Net Book Value Per Common Share5,6 $ 11.28
1. The investment in Brookfield Asset Management Inc. consists of 55.5 million Class A Shares at a bid price of $23.34 per Class A Share as at December 31, 2009.
2. The investment in Brookfield Infrastructure Partners consists of 2.2 million Partnership Units at a bid price of $17.59 per Partnership Unit at December 31, 2009.
3. Represents $367.4 million retractable preferred shares gross of $5.8 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, 2009, there were 79,300,410 common shares of the company issued and outstanding.
6. Net Book Value per common share is non-GAAP measure.

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 identify forward-looking information. Forward-looking information in this news release includes statements with regard to potential future income tax liabilities.

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