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$0.29375 per share on its Senior Preferred Shares, Series A payable on June 30, 2011 to shareholders of record on June 20, 2011.
Brookfield Investments Corporation holds investments in the forest products and property sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield group. The common shares of Brookfield Investments Corporation are wholly owned by Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets.
| Consolidated Balance Sheets | ||||||
| (unaudited) | December 31 | December 31 | ||||
| US$ millions | 2010 | 2009 | ||||
| Assets | ||||||
| Securities | $ | 266 | $ | 262 | ||
| Investments | ||||||
| Brookfield Properties Corporation | 973 | 672 | ||||
| Brookfield Europe L.P. | 127 | 119 | ||||
| Norbord Inc. | 82 | 80 | ||||
| $ | 1,448 | $ | 1,133 | |||
| Liabilities | ||||||
| Deposits payable | $ | 35 | $ | 5 | ||
| Accounts payable | 11 | 9 | ||||
| Retractable preferred shares | 708 | 700 | ||||
| Shareholders' equity | 694 | 419 | ||||
| $ | 1,448 | $ | 1,133 | |||
| Consolidated Statements of Operations | |||||||||||||
(unaudited) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||
| US$ millions | 2010 | 2009 | 2010 | 2009 | |||||||||
| 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 income | 8 | 9 | 33 | 29 | |||||||||
| Foreign exchange loss | (18 | ) | (1 | ) | (41 | ) | (13 | ) | |||||
| Other loss | — | — | — | (11 | ) | ||||||||
| (10 | ) | — | 7 | (50 | ) | ||||||||
| Expenses | |||||||||||||
| Interest | 7 | 8 | 29 | 30 | |||||||||
| Provision for impairment | — | 67 | — | 67 | |||||||||
| 7 | 75 | 29 | 97 | ||||||||||
| Net loss before income taxes | (17 | ) | (75 | ) | (22 | ) | (147 | ) | |||||
| Income taxes (expense) recovery | — | 2 | (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 ended | Twelve months ended | ||||||||||||
| (unaudited) | December 31 | December 31 | |||||||||||
| US$ millions | 2010 | 2009 | 2010 | 2009 | |||||||||
| Net loss | $ | (17 | ) | $ | (73 | ) | $ | (24 | ) | $ | (130 | ) | |
| Other comprehensive income (loss) | |||||||||||||
| Foreign currency translation | (1 | ) | 1 | (5 | ) | 9 | |||||||
| Available-for-sale securities | 113 | 50 | 305 | 186 | |||||||||
| Equity accounted other comprehensive income (loss) | 1 | 1 | (1 | ) | 3 | ||||||||
| 113 | 52 | 299 | 198 | ||||||||||
| Comprehensive income (loss) | $ | 96 | $ | (21 | ) | $ | 275 | $ | 68 | ||||
| Consolidated Statements of Accumulated Other Comprehensive Income (Loss) | ||||||||||||
| Three months ended | Twelve months ended | |||||||||||
| (unaudited) | December 31 | December 31 | ||||||||||
| US$ millions | 2010 | 2009 | 2010 | 2009 | ||||||||
| Balance, beginning of period | $ | (18 | ) | $ | (256 | ) | $ | (204 | ) | $ | (402 | ) |
| Other comprehensive income | 113 | 52 | 299 | 198 | ||||||||
| Balance, end of period | $ | 95 | $ | (204 | ) | $ | 95 | $ | (204 | ) | ||
| Consolidated Statements of Deficit | ||||||||||||
| Three months ended | Twelve months ended | |||||||||||
| (unaudited) | December 31 | December 31 | ||||||||||
| US$ millions | 2010 | 2009 | 2010 | 2009 | ||||||||
| 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 ended | Twelve months ended | ||||||||||||
| (unaudited) | December 31 | December 31 | |||||||||||
| US$ millions | 2010 | 2009 | 2010 | 2009 | |||||||||
| Cash flow from (used in) operating activities | |||||||||||||
| Net loss | $ | (17 | ) | $ | (73 | ) | $ | (24 | ) | $ | (130 | ) | |
| Adjusted for the following: | |||||||||||||
| Equity accounted (income) losses | — | 8 | (15 | ) | 55 | ||||||||
| Provision for impairment | — | 67 | — | 67 | |||||||||
| Future income tax provisions | — | (2 | ) | 2 | (17 | ) | |||||||
| Net change in non-cash items | 18 | 1 | 41 | 24 | |||||||||
| 1 | 1 | 4 | (1 | ) | |||||||||
| Cash flow used in investing activities | |||||||||||||
| Investment in Brookfield Properties | — | — | — | (350 | ) | ||||||||
| — | — | — | (350 | ) | |||||||||
| Cash and deposits receivable (payable) | |||||||||||||
| Increase / (Decrease) prior to foreign currency revaluations | 1 | 1 | 4 | (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:
will be available at 416-363-9491 to answer any questions
on the company's financial results.