Brookfield Investments Corporation
TSX : BRN.PR.A

November 12, 2010 16:31 ET

Brookfield Investments Corporation Announces Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Brookfield Investments
Corporation (TSX:BRN.PR.A) today reported net income for the three months ended
September 30, 2010 of $22 million, compared with a net loss of $82 million for
the same period last year. Foreign exchange gains of $10 million were recorded
in the third quarter of 2010, compared with losses of $49 million for the same
period in 2009. The gains represent non-cash revaluation of deposit balances
denominated in Canadian dollars and British pounds which are revalued each
quarter based on the closing exchange rate relative to the U.S. dollar.

The company's investment in Brookfield Europe contributed income of $11 million
during the third quarter of 2010 (2009 - $nil) due to a special dividend
received on one of the investments held by Brookfield Europe. Panelboard
investments, held through Norbord Inc., contributed a net loss of $1 million for
the third quarter of 2010, consistent with the same period last year. The
investment in Fraser Papers Inc. was written off in late 2009, and therefore had
no impact to the third quarter of 2010 results, compared to a net loss of $32
million for the third quarter of 2009.

Dividend and interest income for the third quarter of 2010 was $9 million, the
same as in the comparable 2009 period. Dividend payments, classified as interest
expense totalled $8 million in the quarter compared to $7 million in the prior
year.

The company's Board of Directors declared the regular quarterly dividend of
C$0.29375 per share on its Senior Preferred Shares, Series A payable on December
31, 2010 to shareholders of record on December 20, 2010.

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.

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.



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CONSOLIDATED BALANCE SHEETS
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(unaudited)
September 30 December 31
(US$ millions) 2010 2009
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Assets
Securities $ 265 $ 262
Investments
Brookfield Properties
Corporation 861 672
Brookfield Europe L.P. 126 119
Norbord Inc. 83 80
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$ 1,335 $ 1,133
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Liabilities
Deposits payable $ 23 $ 5
Accounts payable 11 9
Retractable preferred
shares 703 700
Shareholders' equity 598 419
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$ 1,335 $ 1,133
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CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended Nine months ended
(unaudited) September September September September
US$ millions, except per 30 30 30 30
share amounts 2010 2009 2010 2009
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Income
Equity accounted income
from Brookfield Europe
L.P. $ 11 $ - $ 12 $ 5
Equity accounted (loss)
income from Norbord Inc. (1) (1) 3 (7)
Equity accounted loss from
Fraser Papers Inc. - (32) - (45)
Dividend and interest
income 9 9 25 20
Foreign exchange gain
(loss) 10 (49) (23) (12)
Other income - - - (11)
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29 (73) 17 (50)
Expenses
Interest 8 7 22 22
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Net income (loss) before
income taxes 21 (80) (5) (72)
Income taxes recovery
(expense) 1 (2) (2) 15
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Net income (loss) $ 22 $ (82) $ (7) $ (57)
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Net income (loss) per
common share $ 0.46 $ (1.77) $ (0.16) $ (1.23)
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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Three months ended Nine months ended
September September September September
(unaudited) 30 30 30 30
US$ millions 2010 2009 2010 2009
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Net income (loss) $ 22 $ (82) $ (7) $ (57)
Other comprehensive income
(loss)
Foreign currency
translation, net of tax 5 1 (4) 8
Available-for-sale
securities 84 130 192 136
Equity pick-up from
subsidiaries (1) 1 (2) 2
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88 132 186 146
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Comprehensive income $ 110 $ 50 $ 179 $ 89
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CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS
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Three months ended Nine months ended
September September September September
(unaudited) 30 30 30 30
US$ millions 2010 2009 2010 2009
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Balance, beginning of
period $ (106) $ (388) $ (204) $ (402)
Other comprehensive income 88 132 186 146
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Balance, end of period $ (18) $ (256) $ (18) $ (256)
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CONSOLIDATED STATEMENTS OF DEFICIT
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Three months ended Nine months ended
September September September September
(unaudited) 30 30 30 30
US$ millions 2010 2009 2010 2009
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Deficit, beginning of
period $ (450) $ (266) $ (421) $ (291)
Net income (loss) 22 (82) (7) (57)
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Deficit, end of period $ (428) $ (348) $ (428) $ (348)
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three months ended Nine months ended
September September September September
(unaudited) 30 30 30 30
US$ millions 2010 2009 2010 2009
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Cash flow from (used in)
operating activities
Net income (loss) $ 22 $ (82) $ (7) $ (57)
Adjusted for the
following:
Equity accounted (income)
losses (10) 33 (15) 47
Future income tax
provisions (1) 2 2 (15)
Net change in non-cash
items (10) 49 23 23
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1 2 3 (2)
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Investing activities
Investment in Brookfield
Properties Corporation - (350) - (350)
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- (350) - (350)
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Cash and deposits
receivable (payable)
Increase / (Decrease)
prior to foreign
currency revaluations 1 (348) 3 (352)
Impact of foreign
exchange 13 (38) (21) 4
Balance, beginning of
period (37) 379 (5) 341
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Balance, end of period $ (23) $ (7) $ (23) $ (7)
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Contact Information

  • Brookfield Investments Corporation
    Sachin Shah
    Vice President and Chief Financial Officer
    416-363-9491