BNN Investments Ltd.
TSX : BNB

BNN Investments Ltd.

November 11, 2005 16:15 ET

BNN Investments Announces Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 11, 2005) - BNN Investments Ltd. (TSX:BNB) today announced its financial results for the third quarter ended September 30, 2005.

The company recorded a net loss of $0.2 million for the three months ended September 30, 2005, compared with a net loss of $0.3 million in the same period in 2004. After providing for preferred share dividend obligations, the net loss per common share was $0.36 for the three month period, compared with a net loss per common share of $0.37 for the comparable period in 2004.

BNN 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") (formerly Brascan Corporation), which currently consists of 17,418,000 Class A Limited Voting shares of Brookfield.



Consolidated Statements of Operations
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Three months ended Nine months ended
September 30 September 30
(unaudited) -------------------------------------------
$thousands, except per
share amounts 2005 2004 2005 2004
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Investment income $ 3,191 $ 3,340 $ 9,553 $ 9,221
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Expenses
Operating 76 213 348 604
Interest - - - 56
Amortization of deferred
financing costs 378 492 1,133 1,061
Subsidiary preferred
share dividends 2,943 2,943 8,829 7,574
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3,397 3,648 10,310 9,295
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Net loss (206) (308) (757) (74)
Preferred share dividends (1,248) (1,237) (3,721) (3,963)
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Net loss for common
shareholders $ (1,454) $(1,545) $ (4,478) $(4,037)
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Net loss per common share $ (0.36) $ (0.37) $ (1.09) $(1.08)
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Net Asset Value

The calculated net asset value of the company's common shares as at September 30, 2005 based on the stock market price of Brookfield's Class A shares of $54.14 was $123.45 per share. A $1.00 change in the value of Brookfield's Class A shares results in a $3.20 change in the calculated net asset value of a BNN Investments common share. 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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(unaudited)
$thousands, except As at September 30, 2005
per share amounts --------------------------------------
Net Asset Value(5) Book Value
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Assets
Cash and equivalents $ 6,091 $ 6,091
Brookfield Asset Management Inc.(1) 943,011 333,967
Deferred financing costs - 3,061
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949,102 343,119
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Liabilities(2)
Accounts payable and provisions 1,975 1,975
Retractable preferred shares(3) 205,000 205,000
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206,975 206,975
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Shareholders' Equity
Preferred shares 70,750 70,750
Common shares 671,377 65,394
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742,127 136,144
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$ 949,102 $ 343,119
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Per Common Share(4) $ 123.45 $ 12.02
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(1) The investment in Brookfield Asset Management Inc. ("Brookfield")
(currently Brascan Corporation) represents 17,418,000 Class A
Limited Voting shares of Brookfield with a market value of $54.14
per share as at September 30, 2005.
(2) The net asset value of liabilities approximates their respective
book values.
(3) Represents $205.0 million retractable preferred shares issued by
a subsidiary of the company, BNN Split Corp., which is a
subsidiary of the company.
(4) As at September 30, 2005, there were 5,438,418 common shares of
the company issued and outstanding.
(5) The tax value of the company's assets exceeds the book value by
approximately $76.0 million.


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

  • BNN Investments Ltd.
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8620