TORONTO, ONTARIO--(Marketwire - April 15, 2011) - BAM Investments Corp. (the Company) (TSX VENTURE:BNB) today announced its financial results for the year ended December 31, 2010.
BAM Investments Corp. recorded comprehensive income, which consists of net income and other comprehensive income, of $513.3 million for the year ended December 31, 2010, an increase of $264.3 million over the prior year. This increased the Company's net book value by $6.48 per share or 57%. The increase in comprehensive income over the prior year is primarily the result of an increase in the value of the Company's investment in Brookfield. The Company recorded net income of $14.9 million ($0.19 per common share) for the year ended December 31, 2010 compared to $18.6 million ($0.23 per common share) in 2009.
The following table reconciles changes in the company's net book value:
| 2010 | 2009 | |||||||||
| thousands, except per share amounts | Total | Per Share | Total | Per Share | ||||||
| Net book value, beginning of year | $ | 894,457 | $ | 11.28 | $ | 646,327 | $ | 8.14 | ||
| Net income | 14,930 | 0.19 | 18,568 | 0.23 | ||||||
| Other comprehensive income | 498,325 | 6.29 | 230,387 | 2.91 | ||||||
| Common shares repurchased | (1,013 | ) | ― | (825 | ) | ― | ||||
| Net book value, end of year | $ | 1,406,699 | $ | 17.76 | $ | 894,457 | $ | 11.28 | ||
Consolidated Statements of Operations
| Three months ended December 31 | Years ended December 31 | |||||||||||
| thousands, except per share amounts | 2010 | 2009 | 2010 | 2009 | ||||||||
| Investment income | ||||||||||||
| Dividends and interest | $ | 9,413 | $ | 8,479 | $ | 36,966 | $ | 36,000 | ||||
| Gain on sale of investments | 1,563 | ― | 1,995 | 434 | ||||||||
| Gain on repurchase of preferred shares | ― | ― | ― | 1,394 | ||||||||
| Other | 119 | ― | 194 | (379 | ) | |||||||
| 11,095 | 8,479 | 39,155 | 37,449 | |||||||||
| Expenses | ||||||||||||
| Operating | 231 | 287 | 698 | 947 | ||||||||
| Interest | ― | ― | ― | 137 | ||||||||
| Amortization of deferred financing costs | 499 | 442 | 1,889 | 1,735 | ||||||||
| Class A Preferred Share redemption premium | ― | ― | ― | 1,200 | ||||||||
| Retractable preferred share dividends | 4,979 | 4,979 | 19,914 | 18,749 | ||||||||
| 5,709 | 5,708 | 22,501 | 22,768 | |||||||||
| Net income before tax | 5,386 | 2,771 | 16,654 | 14,681 | ||||||||
| Tax (expense) recovery | (581 | ) | 422 | (1,724 | ) | 3,887 | ||||||
| Net income | $ | 4,805 | $ | 3,193 | $ | 14,930 | $ | 18,568 | ||||
| Net income per common share | $ | 0.06 | $ | 0.04 | $ | 0.19 | $ | 0.23 | ||||
Net Book Value
The net book value of the company's common shares as at December 31, 2010 was $17.76 per share based on the market price of Brookfield's Class A Shares at that date of $33.15 per share. The information in the following table has been extracted from the company's consolidated balance sheet as at December 31, 2010.
Statement of Financial Position as at December 31, 2010
thousands except per share amounts | Net Book Value | ||
| Assets | |||
| Investment in Brookfield Asset Management Inc.(1) | $ | 1,838,706 | |
| Other securities | 101,372 | ||
| Cash and equivalents | 132,948 | ||
| Other assets | 3,321 | ||
| $ | 2,076,347 | ||
| Liabilities | |||
| Accounts payable and provisions | $ | 2,533 | |
| Retractable preferred shares(2) | 484,312 | ||
| Future tax liability(3) | 182,803 | ||
| 669,648 | |||
| Shareholders' Equity | 1,406,699 | ||
| $ | 2,076,347 | ||
| Net Book Value Per Common Share, pre tax(4),(5) | $ | 20.07 | |
| Net Book Value Per Common Share, after tax(4),(5) | $ | 17.76 | |
| Notes: | |
| 1. | The investment in Brookfield Asset Management Inc. consists of 55.5 million Class A Shares at a bid price of $33.15 per Class A Share as at December 31, 2010. |
| 2. | Represents $492.4 million of retractable preferred shares less $8.0 million of unamortized issue costs. |
| 3. | 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. |
| 4. | As at December 31, 2010, there were 79,206,610 common shares of the company issued and outstanding. |
| 5. | Net Book Value per common share is a 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 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, performance 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 most recent Annual Information Form and 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.
Contact Information:
Edward C. Kress
President
(416) 956-5140