Brookfield Investments Corporation
TSX VENTURE : BRN.PR.A

April 29, 2011 17:52 ET

Brookfield Investments Corporation Announces 2010 Fourth Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - April 29, 2011) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported a net loss of $24 million for the year ended December 31, 2010 compared with a net loss of $130 million for 2009. The current year's net results includes $41 million of non-cash foreign exchange losses, compared with $13 million of foreign exchange losses in the prior year. The prior year also includes a one-time $67 million loss on the permanent impairment of the company's investment in Fraser Papers Inc.

Net loss for the three months ended December 31, 2010 was $17 million, compared to a net loss of $73 million for the same period in 2009.

The company's investment in Brookfield Europe contributed income of $13 million in 2010 (2009 – $9 million). Panelboard investments, held through Norbord Inc., contributed a net income of $2 million for 2010, compared to a loss of $8 million in 2009. The investment in Fraser Papers Inc. was written off in late 2009, and therefore had no impact to the 2010 results, compared to a net loss of $123 million in 2009, which includes a $67 million provision.

Dividend and interest income for 2010 was $33 million, compared to $29 million in 2009. Dividend payments, classified as interest expense totalled $29 million in 2010, compared to $30 million in 2009.

Other loss for 2009 of $11 million was recorded due mainly to the revaluation of the company's Norbord exchangeable debentures, which were settled in the second quarter of 2009.

The Company's Board of Directors has declared a quarterly dividend of C$0.29375 per share on its Senior Preferred Shares, Series A payable on June 30, 2011 to shareholders of record on June 20, 2011.

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

Consolidated Balance Sheets
(unaudited)December 31December 31
US$ millions20102009
Assets
Securities$266$262
Investments
Brookfield Properties Corporation973672
Brookfield Europe L.P.127119
Norbord Inc.8280
$1,448$1,133
Liabilities
Deposits payable$35$5
Accounts payable119
Retractable preferred shares708700
Shareholders' equity694419
$1,448$1,133
Consolidated Statements of Operations

(unaudited)
Three months ended December 31Twelve months ended December 31
US$ millions2010200920102009
Income
Equity accounted income from Brookfield Europe L.P.$1$4$13$9
Equity accounted income (loss) from Norbord Inc.(1)(1)2(8)
Equity accounted loss from Fraser Papers Inc.(11)(56)
Dividend and interest income893329
Foreign exchange loss(18)(1)(41)(13)
Other loss(11)
(10)7(50)
Expenses
Interest782930
Provision for impairment6767
7752997
Net loss before income taxes(17)(75)(22)(147)
Income taxes (expense) recovery2(2)17
Net loss$(17)$(73)$(24)$(130)
Net loss per common share$(0.34)$(1.59)$(0.52)$(2.82)
Consolidated Statements of Comprehensive Income (Loss)
Three months endedTwelve months ended
(unaudited)December 31December 31
US$ millions2010200920102009
Net loss$(17)$(73)$(24)$(130)
Other comprehensive income (loss)
Foreign currency translation(1)1(5)9
Available-for-sale securities11350305186
Equity accounted other comprehensive income (loss)11(1)3
11352299198
Comprehensive income (loss)$96$(21)$275$68
Consolidated Statements of Accumulated Other Comprehensive Income (Loss)
Three months endedTwelve months ended
(unaudited)December 31December 31
US$ millions2010200920102009
Balance, beginning of period$(18)$(256)$(204)$(402)
Other comprehensive income11352299198
Balance, end of period$95$(204)$95$(204)
Consolidated Statements of Deficit
Three months endedTwelve months ended
(unaudited)December 31December 31
US$ millions2010200920102009
Deficit, beginning of period$(428)$(348)$(421)$(291)
Net loss(17)(73)(24)(130)
Deficit, end of period$(445)$(421)$(445)$(421)
Consolidated Statements of Cash Flows
Three months endedTwelve months ended
(unaudited)December 31December 31
US$ millions2010200920102009
Cash flow from (used in) operating activities
Net loss$(17)$(73)$(24)$(130)
Adjusted for the following:
Equity accounted (income) losses8(15)55
Provision for impairment6767
Future income tax provisions(2)2(17)
Net change in non-cash items1814124
114(1)
Cash flow used in investing activities
Investment in Brookfield Properties(350)
(350)
Cash and deposits receivable (payable)
Increase / (Decrease) prior to foreign currency revaluations114(351)
Impact of foreign exchange(13)1(34)5
Balance, beginning of period(23)(7)(5)341
Balance, end of period$(35)$(5)$(35)$(5)

Contact Information

  • Sachin Shah, Vice President and Chief Financial Officer,
    will be available at 416-363-9491 to answer any questions
    on the company's financial results.