BAM Split Corp.

TSX : BNA


BAM Split Corp.

December 13, 2012 16:31 ET

BAM Split Corp. (TSX:BNA) Announces 2012 Annual Results

TORONTO, ONTARIO--(Marketwire - Dec. 13, 2012) - BAM Split Corp. (TSX:BNA) announced today that its net asset value per unit was $65.03 at September 30, 2012.

Income available for distribution for the year ended September 30, 2012 was $28.4 million compared to $27.0 in the prior year. The increase in the current year was driven by an increase in dividends received on the common shares held of Brookfield Asset Management Inc.

Net asset value per unit consists of one preferred share and one capital share. The net asset value per preferred share is posted monthly on our website at www.bamsplit.com.

STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS

Year ended September 30
Thousands, except per share amounts 2012 2011
Income
Investment income $ 28,731 $ 27,307
Expenses
Operating 319 312
Income available for distribution 28,412 26,995
Dividends paid on senior preferred shares (26,000 ) (24,297 )
Income available for distribution on junior preferred and capital shares 2,412 2,698
Amortization of share issue costs (1,677 ) (2,334 )
Dividends paid on junior preferred shares (2,500 ) -
Income available for distribution to capital shares (1,765 ) 364
Change in unrealized value of investment 261,550 (4,253 )
Results of investment operations $ 259,785 $ (3,889 )
Opening retained earnings $ 673,828 $ 800,767
Results of investment operations 259,785 (3,889 )
Dividends paid on capital shares - (123,050 )
Retained earnings, end of year $ 933,613 $ 673,828
Dividends per senior preferred share
- Class AA, Series 1 $ 1.2375 $ 1.2375
- Class AA, Series 3 $ 1.0876 $ 1.0876
- Class AA, Series 4 $ 1.8125 $ 1.8125
- Class AA, Series 5 $ 1.2125 $ 0.8721

BAM Split Corp. owns 53,160,644 Class A Limited Voting Shares ("Brookfield Shares") of Brookfield Asset Management Inc. ("Brookfield") which generate cash flow through dividend payments that fund quarterly fixed cumulative preferential dividends for the holders of the Company's preferred shares, and provide the holders of the Company's capital shares the opportunity to participate in any capital appreciation of Brookfield Shares.

Brookfield is a global alternative asset manager with over $150 billion in assets under management and has over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity. Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and BAM.A, respectively, and on NYSE Euronext under the symbol BAMA.

Allen G. Taylor, Chief Financial Officer, will be available at (416) 363-9491 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 "generate" and "enable" 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 the generation of cumulative preferential dividends for the holders of the Company's Senior Preferred Shares and potential participation by the holders of the Company's capital shares in the capital appreciation of 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: financial performance of the Brookfield Shares which may result in a decline in value of the investment portfolio and/or in dividend income from the investment, 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.
    Allen G. Taylor
    Chief Financial Officer
    (416) 363-9491
    www.bamsplit.com