TORONTO, ONTARIO--(Marketwired - May 30, 2014) - Brookfield Investments Corporation (the "company") (TSX VENTURE:BRN.PR.A) reported $90 million of net income or $1.80 per common share for the three months ended March 31, 2014 compared with $126 million, or $2.52 per common share for the same period in 2013. Net income in the current quarter included a $90 million gain related to the partial disposition of a forest products investment, whereas the prior year included $87 million of disposition gains. Excluding disposition gains, net income decreased by $39 million due to a higher level of equity earnings recognized in the prior year.
Comprehensive income, which consists of net income and other comprehensive income, was a loss of $67 million compared to income of $190 million in the same period of 2013. Other comprehensive loss was $157 million during the quarter, compared to income of $64 million in the first quarter of 2013. The current period loss consists of mark-to-market losses on the company's investment portfolio and negative currency revaluation.
Brookfield Investments Corporation holds investments in the property and forest products 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. Brookfield Asset Management Inc. is a global alternative asset manager with over $175 billion in assets under management, has over 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and BAM.A, respectively.
Derek Gorgi, Vice President and Chief Financial Officer, will be available at 416-363-9491 to answer any questions on the company's financial results.
| CONSOLIDATED BALANCE SHEETS | ||||||
| (unaudited) | ||||||
| March 31 | December 31 | |||||
| (US$ millions) | 2014 | 2013 | ||||
| Assets | ||||||
| Current assets | ||||||
| Deposits receivable | $ | 498 | $ | 442 | ||
| Securities | 42 | 44 | ||||
| Non-current assets | ||||||
| Investments - Securities | 525 | 484 | ||||
| Investments - Associates | 1,249 | 1,438 | ||||
| $ | 2,314 | $ | 2,408 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and other | $ | 17 | $ | 14 | ||
| Retractable preferred shares | 1,083 | 1,104 | ||||
| Deferred income tax | 36 | 45 | ||||
| Equity | 1,178 | 1,245 | ||||
| $ | 2,314 | $ | 2,408 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (unaudited) | |||||
| For the three months ended March 31 | |||||
| (US$ millions, except per share amounts) | 2014 | 2013 | |||
| Investment Income | |||||
| Equity accounted income | $ | 17 | $ | 37 | |
| Dividend and interest income | 6 | 11 | |||
| Realized and Unrealized gains | 90 | 87 | |||
| Foreign exchange (loss) income | (10) | 2 | |||
| Interest expense | (7) | (7) | |||
| Income tax expense | (6) | (4) | |||
| Net income | $ | 90 | $ | 126 | |
| Net income per common share | $ | 1.80 | $ | 2.52 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
| (unaudited) | |||||
| For the three months ended March 31 (US$ millions) | 2014 | 2013 | |||
| Net income | $ | 90 | $ | 126 | |
| Other comprehensive (loss) income | |||||
| Foreign currency translation | (1) | 36 | |||
| Available-for-sale securities - fair value changes | (67) | 30 | |||
| Equity accounted other comprehensive loss | (103) | (2) | |||
| Deferred income tax | 14 | - | |||
| (157) | 64 | ||||
| Comprehensive (loss) income | $ | (67) | $ | 190 | |
Contact Information:
Derek Gorgi
Vice President and Chief Financial Officer
416-363-9491