BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

March 27, 2007 14:25 ET

BAM Investments Corp. Announces Fourth Quarter Results

TORONTO, ONTARIO--(CCNMatthews - March 27, 2007) - BAM Investments Corp. (TSX:BNB) today announced its financial results for the year ended December 31, 2006.

The company recorded a net income of $15.9 million for the year ended December 31, 2006, compared with a net loss of $1.1 million in 2005. After providing for preferred share dividend obligations, the net income per common share was $1.34 for 2006, compared with a net loss per common share of $1.48 in 2005. The 2006 results include a future tax recovery of $10.5 million arising from the purchase of Brookfield shares during the year and reflect an increase in dividends received from the company's investments in Brookfield due to the acquisition of additional shares and a higher dividend rate.

BAM Investments is a publicly listed investment company whose principal mandate is to provide its common shareholders with a leveraged investment in the securities of Brookfield Asset Management Inc. ("Brookfield"), which currently consists of 36,977,485 Class A Limited Voting shares of Brookfield.



Consolidated Statements of Operations
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Three months ended Year ended
December 31 December 31
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$thousands, except per share amounts 2006 2005 2006 2005
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Investment income $ 6,720 $ 3,140 $ 21,114 $ 12,693
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Expenses
Operating 132 187 513 534
Interest 1,088 - 2,168 -
Amortization of deferred financing
costs 153 377 1,286 1,511
Retractable preferred share
dividends 2,944 2,944 11,773 11,773
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4,317 3,508 15,740 13,818
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Net income (loss) before tax 2,403 (368) 5,374 (1,125)
Future tax asset recovery (51) - 10,483 -
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Net income (loss) 2,352 (368) 15,857 (1,125)
Preferred share dividends (1,239) (1,248) (4,953) (4,969)
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Net income (loss) for common
shareholders $ 1,113 $ (1,616) $ 10,904 $ (6,094)
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Net income (loss) per common share $ 0.03 $ (0.39) $ 1.34 $ (1.48)
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Net Asset Value

The calculated net asset value of the company's common shares as at December 31, 2006 based on the stock market price of Brookfield's Class A shares of $56.36 was $219.01 per share. A $1.00 change in the value of Brookfield's Class A shares results in a $4.65 change in the calculated net asset value of a BAM Investments common share. 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 December 31, 2006
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$thousands, except per share amounts Net Asset Value(5) Book Value
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Assets
Cash and equivalents $ 3,880 $ 3,880
Brookfield Asset Management Inc.(1) 2,084,051 415,952
Accounts receivable and other 1,566 1,566
Deferred financing costs - 1,406
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2,089,497 422,804
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Liabilities(2)
Loans payable 72,367 72,367
Accounts payable and provisions 2,049 2,049
Retractable preferred shares(3) 205,000 205,000
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279,416 279,416
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Shareholders' Equity
Preferred shares 70,750 70,750
Common shares 1,739,331 72,638
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1,810,081 143,388
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$ 2,089,497 $ 422,804
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Per Common Share(4) $ 219.01 $ 9.15
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1) The investment in Brookfield Asset Management Inc. ("Brookfield")
represents 36,977,485 Class A Limited Voting shares of Brookfield with
a market price of $56.36 per share as at December 31, 2006.
2) The net asset value of liabilities approximates their respective book
values.
3) Represents $205 million retractable preferred shares issued by BAM Split
Corp., which is a subsidiary of the company.
4) As at December 31, 2006, there were 7,941,891 common shares of the
company issued and outstanding.
5) The company has access to $52.2 million of available tax shield as a
result of the tax value of the company's assets exceeding book value and
$35.0 million of non-capital losses.


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