BAM Split Corp.
TSX : BNA

BAM Split Corp.

May 29, 2009 18:21 ET

BAM Split Corp. Announces 2009 Semi-Annual Results

TORONTO, ONTARIO--(Marketwire - May 29, 2009) - BAM Split Corp. (TSX:BNA) announced today that income available for distribution for the six months ended March 31, 2009, was $13.6 million, an increase from $9.5 million for the same period in the prior year. The increase in income available for distribution reflects the impact of a higher U.S. dollar on dividends received by the company, which are declared in U.S. dollars, and additional Brookfield Shares purchased in February 2008. The fair value of the company's investment portfolio decreased by $521.2 million during the six months ended March 31, 2009 as a result of a change in the market prices of a Brookfield Share.

For the half year ended March 31, 2009, the company paid dividends of $10.2 million to holders of its Preferred Class A, Class AA Series I and Class AA Series III Shares, consistent for the same period in the prior year. Dividends paid to holders of the Company's Capital Shares for the six months ended March 31, 2009 were $nil, compared to $37.1 million paid in the six months ended March 31, 2008. Dividends paid to the holders of Capital Shares in the prior period reflects a special distribution of securities received on a dividend in kind from the company's investment in Brookfield.

The net asset value per unit, consisting of one Preferred Share and one Capital Share, was $42.43 as at March 31, 2009, representing an excess of $17.43 over the stated capital of $25.00 per Preferred Share. The net asset value per Preferred Share is posted monthly on www.bamsplit.com.



STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS

(unaudited) Six months ended March 31
$thousands 2009 2008
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Income
Investment income $ 14,625 $ 10,508
Expenses
Operating 982 1,031
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Income available for distribution 13,643 9,477
Dividends paid on Senior Preferred Shares (10,234) (10,237)
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Income available for distribution on Capital
and Class A Voting Shares 3,409 (760)
Change in unrealized depreciation of investment (521,154) (439,559)
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Results of investment operations $ (517,745) $ (440,319)
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Retained earnings, beginning of period $ 728,518 $ 1,157,793
Results of investment operations (517,745) (440,319)
Dividends paid on Capital Shares - (37,087)
Redemption of Capital Shares (109) -
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Retained earnings, end of period $ 210,664 $ 680,387
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Dividends per Senior Preferred Share - Class A $ 0.7813 $ 0.7813
Dividends per Senior Preferred Share
- Class AA, Series I $ 0.6188 $ 0.6188
- Class AA, Series III $ 0.5438 $ 0.5438
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BAM Split Corp. owns a portfolio consisting of 46,160,644 Brookfield Shares which is expected to yield quarterly dividends that are sufficient to fund 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, focused on property, power and infrastructure assets, has approximately U.S. $80 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and Euronext under the symbol BAMA.

Derek E. Gorgi, Chief Financial Officer, will be available at (416) 359-8590 to answer any questions on the company's financial results.

Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. The words "expected" and "enable" and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters or identify forward-looking information. Forward-looking information in this news release includes statements with regard to quarterly dividends from the company's portfolio of Brookfield Shares which are expected to fund quarterly fixed cumulative preferential dividends for holders of the company's Preferred Shares and to enable holders of its Capital Shares to participate in any capital appreciation of the Brookfield Shares.

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 Split Corp.
    Derek E. Gorgi
    Chief Financial Officer
    (416) 359-8590