BAM Split Corp.
TSX : BNA.PR.A
TSX : BNA.PR.B

BAM Split Corp.

December 08, 2006 12:36 ET

BAM Split Corp. Announces 2006 Fourth Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Dec. 8, 2006) - BAM Split Corp. (TSX:BNA.PR.A) (TSX:BNA.PR.B) (formerly BNN Split Corp.) announced today that income available for distribution for the year ended September 30, 2006, was $14.7 million an increase from $12.5 million for the prior year due to the increase in quarterly dividends paid by Brookfield from US$0.11 per share to US$0.16 per share commencing in May 2006. Operating expenses for the year were $0.9 million, compared to $0.2 million in the prior year. This included a $0.7 million expense relating to interest and penalties on the assessment of taxes related to dividend income earned. During the year the company paid dividends of $11.8 million and $3.2 million to its Preferred Class A and Capital shareholders respectively, compared to $11.8 million and $0.7 million in the prior year.

The Board of Directors declared quarterly dividends of $0.390625 and $0.309375 per Preferred share Class A and Class AA Series 1, respectively, payable on December 7, 2006 to shareholders of record on November 22, 2006.

The net asset value per unit, consisting of one Preferred share and one Capital share, was $137.05 based on a Brookfield share price of $49.42 as at September 30, 2006. The net asset value per Preferred share is posted monthly on www.bnnsplit.com.

BAM Split Corp. changed its name from BNN Split Corp. effective November 6, 2006. The company's preferred shares will start trading on the Toronto Stock Exchange under its new name in December. The trading symbol for these shares, BNA, will not be changed.



STATEMENTS OF INCOME AND DEFICIT
Year ended
(unaudited) September 30
$thousands, except per share amount 2006 2005
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Revenue
Investment $ 15,633 $ 12,678

Expenses
Operating 904 195
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Income available for distribution 14,729 12,483

Dividends paid on Senior Preferred shares (11,773) (11,773)
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Income available for distribution on Capital and
Class A shares 2,956 710

Change in unrealized appreciation of investment 352,908 280,650
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Results of investment operations 355,864 281,360

Retained earnings, beginning of year 593,195 312,545

Dividends paid on Capital shares (3,224) (710)
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Retained earnings, end of year $ 945,835 $ 593,195
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Dividends per Senior Preferred share - Class A $ 1.5625 $ 1.5625
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Dividends per Senior Preferred share - Class AA,
Series 1 $ 1.2375 $ 1.2375
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BAM Split Corp. owns a portfolio consisting of 26,481,300 Class A Limited Voting shares of Brookfield Asset Management Inc. in order to generate quarterly fixed cumulative preferential dividends for the holders of the company's Preferred shares and to enable the holders of the company's Capital shares to participate in any capital appreciation of Brookfield Shares. Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over $50 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM.

Sachin G. Shah, Chief Financial Officer, will be available at (416) 363-0061 to answer any questions on the company's financial results.

This news release contains forward-looking statements concerning the company's business and operations. The company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Contact Information

  • BAM Split Corp.
    Sachin G. Shah
    Chief Financial Officer
    (416) 363-0061