BAM Split Corp.
TSX : BNA

BAM Split Corp.

December 23, 2008 17:17 ET

BAM Split Corp. Announces Annual 2008 Results

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2008) - BAM Split Corp. (TSX:BNA) announced today that income available for distribution for the year ended September 30, 2008, was $19.4 million, compared to $19.6 million for the same period in the prior year. Operating expenses increased in the year to $3.4 million, compared to $2.6 million in the prior year, and reflects an increase in the amortization of transaction costs from the January 10, 2007 issuance of the Class AA Series III Preferred shares and the de-recognition of a future tax asset. The fair value of the company's investment portfolio decreased by $391.1 million during the year ended September 30, 2008 compared to an increase of $405.3 million in the same period in 2007, as a result of a change in the market price of the Brookfield Class A shares.

For the year ended September 30, 2008, the company paid dividends of $20.5 million to its Preferred Class A, Class AA Series I and Class AA Series III shareholders, compared to $17.3 million for the same period in the prior year. Dividends paid to Capital shareholders for the year ended September 30, 2008 were $37.1 million, compared to $3.9 million paid in the prior year. The increase in dividends paid to the Capital shareholders is due to the distribution of the Special Dividend received on the Brookfield Class A shares.

The net asset value per unit, consisting of one Preferred share and one Capital share, was $69.59 based on a Brookfield share price of $28.66 as at September 30, 2008. The net asset value per Preferred share is posted monthly on www.bamsplit.com.



STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS

For the years ended September 30
$thousands, except per share amounts 2008 2007
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Income
Investment income $ 22,782 $ 22,154

Expenses
Operating 3,408 2,600
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Income available for distribution 19,374 19,554
Dividends paid on Senior Preferred shares (20,473) (17,290)
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Income available for distribution on Capital and
Class A shares (1,099) 2,264
Change in realized and unrealized (depreciation)
appreciation of investment (391,090) 212,079
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Results of investment operations $ (392,189) $ 214,343
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Opening retained earnings $ 1,157,794 $ 945,835
Results of investment operations (392,189) 214,343
Dividends paid on Capital shares (37,087) (3,916)
Transition adjustment - October 1, 2006 - 1,532
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Retained earnings, end of year $ 728,518 $ 1,157,794
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Dividends per Senior Preferred share
- Class A $ 1.5625 $ 1.5625
- Class AA, Series I $ 1.2375 $ 1.2375
- Class AA, Series III $ 1.0876 $ 1.0876
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BAM Split Corp. owns 46,160,644 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 approximately US$90 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on 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.

This news release contains forward-looking information within the meaning of Canadian provincial securities laws 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 and other documents filed by the company with securities regulators in Canada available at www.sedar.com for a description of factors and risks that could cause actual results to differ materially from those contemplated or implied by forward looking statements in this news release.

Contact Information

  • BAM Split Corp.
    Derek E. Gorgi
    Chief Financial Officer
    (416) 359-8590
    Website: www.bamsplit.com