TORONTO, ONTARIO--(Marketwire - Aug. 24, 2012) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported net income of $9 million or $0.18 per common share for the three months ended June 30, 2012 compared with net income of $2 million or $0.04 per common share for the same period in 2011. Investment income increased by $7 million to $16 million in the current period, primarily due to income earned on the company's investment in Western Forest Products, which was acquired in December 2011, and a higher amount of foreign currency revaluation gains.
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., a global alternative asset manager with approximately $150 billion in assets under management, with a focus on property, renewable power, infrastructure and private equity assets.
Derek Gorgi, Vice President and Chief Financial Officer, will be available at 416-363-9491 to answer any questions on the company's financial results.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | (unaudited) June 30 |
December 31 |
||||||
| (US$ millions) | 2012 | 2011 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Deposits receivable | $ | 249 | $ | 243 | ||||
| Securities | 224 | 217 | ||||||
| Non-current assets | ||||||||
| Investments - Securities | ||||||||
| Brookfield Office Properties Inc. | 965 | 866 | ||||||
| Brookfield Residential Properties Inc. | 62 | 44 | ||||||
| Investments - Associates | ||||||||
| Brookfield Europe L.P. | 464 | 465 | ||||||
| Western Forest Products Inc. | 165 | 165 | ||||||
| Norbord Inc. | 70 | 70 | ||||||
| $ | 2,199 | $ | 2,070 | |||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2 | $ | 2 | ||||
| Retractable preferred shares | 1,128 | 1,125 | ||||||
| Deferred tax liability | 53 | 55 | ||||||
| Equity | 1,016 | 888 | ||||||
| $ | 2,199 | $ | 2,070 | |||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (unaudited) | Three months ended June 30 |
Six months ended June 30 |
||||||||||||||
| (US$ millions, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Investment Income | ||||||||||||||||
| Equity accounted income (loss) | $ | 4 | $ | 1 | $ | (3 | ) | $ | 50 | |||||||
| Dividend and interest income | 10 | 10 | 21 | 20 | ||||||||||||
| Foreign exchange income (loss) | 2 | (2 | ) | 2 | (2 | ) | ||||||||||
| 16 | 9 | 20 | 68 | |||||||||||||
| Expenses | ||||||||||||||||
| Interest | 7 | 8 | 14 | 15 | ||||||||||||
| Net income before income taxes | 9 | 1 | 6 | 53 | ||||||||||||
| Income tax (expense) recovery | − | 1 | − | (4 | ) | |||||||||||
| Net income | $ | 9 | $ | 2 | $ | 6 | $ | 49 | ||||||||
| Net income per common share | $ | 0.18 | $ | 0.04 | $ | 0.12 | $ | 1.06 | ||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
| (unaudited) | Three months ended June 30 | Six months ended June 30 |
||||||||||||||
| (US$ millions) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Net income | $ | 9 | $ | 2 | $ | 6 | $ | 49 | ||||||||
| Other comprehensive (loss) income | ||||||||||||||||
| Foreign currency translation | (11 | ) | 1 | 6 | 11 | |||||||||||
| Available-for-sale securities - fair value changes | (1 | ) | 90 | 122 | 109 | |||||||||||
| Equity accounted other comprehensive (loss) income | (3 | ) | − | (3 | ) | 6 | ||||||||||
| Deferred income tax | (3 | ) | 2 | (3 | ) | (2 | ) | |||||||||
| (18 | ) | 93 | 122 | 124 | ||||||||||||
| Comprehensive (loss) income | $ | (9 | ) | $ | 95 | $ | 128 | $ | 173 | |||||||
Contact Information:
Derek Gorgi
Vice President and Chief Financial Officer
416-363-9491