Brookfield Investments Corporation
TSX : BRN.PR.A

May 15, 2008 16:31 ET

Brookfield Investments Corp. Announces First Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Brookfield Investments Corporation (TSX:BRN.PR.A) today announced net income for the three months ended March 31, 2008 of $57 million, compared to a loss of $4 million for the same period last year. The results for the first quarter of 2008 reflect other income of $105 million, as described further below, partly offset by a $23 million net loss from the company's forest product investments.

Panelboard investments, held through Norbord Inc., contributed a net loss of $13 million for the first three months of 2008, compared with a net loss of $6 million for the same period last year. Prices for oriented strandboard dropped to their lowest levels since 2001, reflecting weaker US housing starts, poor weather and new OSB capacity coming on stream. Other forest product investments, held through Fraser Papers Inc., contributed a net loss of $10 million, compared to a net loss of $5 million last year. Improvements during the first quarter of 2008 at pulp and paper operations were more than offset by losses in lumber operations caused by weak lumber markets and high input prices.

Other income for the first quarter of 2008 was $105 million, up from $18 million last year due mainly to a $31 million interim dividend declared by Canary Wharf Group and a $64 million revaluation gain on the Norbord exchangable debentures.

The company's Board of Directors declared the regular quarterly dividend of C$0.29375 per share on its Senior Preferred shares, Series A payable on June 30, 2008 to shareholders of record on June 20, 2008.

Brookfield Investments Corporation currently holds investments in the forest products and property sectors, as well as a portfolio of preferred shares issued by companies in the Brookfield Asset Management group. The company's common shares are wholly owned by Brookfield Asset Management Inc., an asset management company focused on property, power and infrastructure assets.

Edward C. Kress, Chairman and President, will be available at 416-363-9491 to answer any questions on the company's financial results.

This news release contains forward-looking statements concerning the company's business and operations such as "will", "is expected" and "should". 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.



CONSOLIDATED STATEMENTS OF OPERATIONS

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(unaudited) Three months ended
March 31
US$ millions, except per share amounts 2008 2007
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Income
Equity loss from Norbord Inc. $ (13) $ (6)
Equity loss from Fraser Papers Inc. (10) (5)
Foreign exchange gain (loss) 3 (2)
Other income 105 18
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85 5
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Expenses
Interest 10 9
Current income taxes 1 -
Future income taxes 17 -
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28 9
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Net income (loss) $ 57 $ (4)
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Net income (loss) per common share $ 1.24 $ (0.09)
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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(unaudited) Three months ended
March 31
US$ millions 2008 2007
--------------------------------------------------------------
Net income (loss) $ 57 $ (4)
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Other comprehensive income (loss)
Foreign currency translation 3 (11)
Available-for-sale securities (2) 9
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1 (2)
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Comprehensive income (loss) $ 58 $ (6)
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CONSOLIDATED STATEMENTS OF DEFICIT

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(unaudited) Three months ended
March 31
US$ millions 2008 2007
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Deficit, beginning of period $ (347) $ (267)

Change in accounting policy 1 (8)

Net income (loss) for the period 57 (4)
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Deficit, end of period $ (289) $ (279)
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CONSOLIDATED BALANCE SHEETS

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March 31 December 31
US$ millions 2008 2007
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(unaudited)
Assets
Loans receivable $ 208 $ 230
Securities 286 294
Investment in Norbord Inc. 168 181
Investment in Fraser Papers Inc. 149 129
Investment in Canary Wharf Group, plc 256 256
Investment in Brookfield Properties
Corporation 358 357
Accounts receivable 31 -
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$ 1,456 $ 1,447
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Liabilities
Accounts payable $ 99 $ 162
Future tax liability 17 --
Retractable preferred shares 704 708
Shareholders' equity 636 577
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$ 1,456 $ 1,447
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CONSOLIDATED STATEMENTS OF CASH FLOWS

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(unaudited) Three months ended
March 31
US$ millions 2008 2007
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Cash Flow from (used in) operating
activities

Net income (loss) $ 57 $ (4)

Adjusted for the following non-cash items

Excess of equity loss over dividends
received 29 16

Net change in non-cash working capital
balances (79) (11)
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7 1
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Cash Flow used in Financing activities
Share redemption - (101)
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- (101)
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Cash Flow from (used in) investing
activities
Investment in Fraser Papers Inc. (29) -
Investment in Norbord Inc. (6) (3)
Loans receivable 28 103
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(7) 100
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Net change and closing cash balance $ - $ -
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Contact Information

  • Brookfield Investments Corporation
    Edward C. Kress
    Chairman and President
    (416) 363-9491