TORONTO, ONTARIO--(Marketwired - Aug. 28, 2014) - Brookfield Investments Corporation (the "company") (TSX VENTURE:BRN.PR.A) reported net income of $26 million or $0.53 per common share for the three months ended June 30, 2014 compared with $22 million, or $0.45 per common share for the same period in 2013. The increase in net income in the current period was due to a higher level of dividends received on the company's investment portfolio and positive foreign currency revaluation, partially offset by a higher level of forest products income recorded in the prior year. Net income on a six month basis was $116 million and $148 million in the current and prior year or $2.33 and $2.97 per share, respectively.
Comprehensive income, which consists of net income and other comprehensive income, was $113 million compared to loss of $441 million in the same period of 2013. Other comprehensive income was $87 million during the quarter, compared to a loss of $463 million in the second quarter of 2013. The current period benefited from favourable market performance of the company's investment portfolio relative to the prior year.
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 approximately $200 billion in assets under management, has over 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and BAM.A, respectively.
Derek Gorgi, Vice President and Chief Financial Officer, will be available at 416-363-9491 to answer any questions on the company's financial results.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) June 30 |
December 31 |
|||||||
| (US$ millions) | 2014 | 2013 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Deposits receivable | $ | 541 | $ | 442 | ||||
| Securities | 44 | 44 | ||||||
| Non-current assets | ||||||||
| Investments - Securities | 501 | 484 | ||||||
| Investments - Associates | 1,362 | 1,438 | ||||||
| $ | 2,448 | $ | 2,408 | |||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other | $ | 12 | $ | 14 | ||||
| Retractable preferred shares | 1,102 | 1,104 | ||||||
| Deferred income tax | 43 | 45 | ||||||
| Equity | 1,291 | 1,245 | ||||||
| $ | 2,448 | $ | 2,408 | |||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (unaudited) | Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
| (US$ millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Investment Income | ||||||||||||||||||
| Equity accounted income | $ | 16 | $ | 24 | $ | 33 | $ | 61 | ||||||||||
| Dividend and interest income | 7 | 6 | 13 | 17 | ||||||||||||||
| Realized and unrealized gains | 5 | - | 95 | 87 | ||||||||||||||
| Foreign exchange income | 10 | - | - | 2 | ||||||||||||||
| Interest expense | (7 | ) | (8 | ) | (14 | ) | (15 | ) | ||||||||||
| Income tax expense | (5 | ) | - | (11 | ) | (4 | ) | |||||||||||
| Net income | $ | 26 | $ | 22 | $ | 116 | $ | 148 | ||||||||||
| Net income per common share | $ | 0.53 | $ | 0.45 | $ | 2.33 | $ | 2.97 | ||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||
| (unaudited) (US$ millions) |
2014 | 2013 | 2014 | 2013 | |||||||||
| Net income | $ | 26 | $ | 22 | $ | 116 | $ | 148 | |||||
| Other comprehensive income (loss) | |||||||||||||
| Foreign currency translation | - | (77) | (1) | (41) | |||||||||
| Available-for-sale securities - fair value changes | (19) | (67) | (86) | (37) | |||||||||
| Equity accounted other comprehensive income (loss) | 108 | (359) | 5 | (361) | |||||||||
| Deferred income tax | (2) | 40 | 12 | 40 | |||||||||
| 87 | (463) | (70) | (399) | ||||||||||
| Comprehensive income (loss) | $ | 113 | $ | (441) | $ | 46 | $ | (251) | |||||
Contact Information:
Derek Gorgi
Vice President and Chief Financial Officer
416-363-9491