TORONTO, ONTARIO--(Marketwire - Nov. 28, 2012) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported net income of $23 million or $0.47 per common share for the three months ended September 30, 2012 compared with net income of $37 million or $0.81 per common share for the same period in 2011. The company received an $11 million distribution from its UK property operations in the current quarter, representing a $5 million increase over the prior year, and benefited from increased prices and improved volumes within its forest products operations. Net income in the same quarter in the prior year included $21 million of foreign currency translation gains compared to $3 million of foreign currency losses in the current quarter.
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 over $150 billion in assets under management, with a focus on property, renewable power, infrastructure and private equity.
Derek Gorgi, Vice President and Chief Financial Officer, will be available at 416-363-9491 to answer any questions on the company's financial results.
CONSOLIDATED BALANCE SHEETS
| (unaudited) September 30 |
December 31 |
|||||||
| (US$ millions) | 2012 | 2011 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Deposits receivable | $ | 271 | $ | 243 | ||||
| Securities | 224 | 217 | ||||||
| Non-current assets | ||||||||
| Investments - Securities | ||||||||
| Brookfield Office Properties Inc. | 918 | 866 | ||||||
| Brookfield Residential Properties Inc. | 79 | 44 | ||||||
| Investments - Associates | ||||||||
| Brookfield Europe L.P. | 498 | 465 | ||||||
| Western Forest Products Inc. | 168 | 165 | ||||||
| Norbord Inc. | 73 | 70 | ||||||
| $ | 2,231 | $ | 2,070 | |||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2 | $ | 2 | ||||
| Retractable preferred shares | 1,147 | 1,125 | ||||||
| Deferred tax liability | 55 | 55 | ||||||
| Equity | 1,027 | 888 | ||||||
| $ | 2,231 | $ | 2,070 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS
| (unaudited) | Three months ended September 30 |
Nine months ended September 30 |
|||||||||
| (US$ millions, except per share amounts) | 2012 | 2011 | 2012 | 2011 | |||||||
| Investment Income | |||||||||||
| Equity accounted income | $ | 23 | $ | 19 | $ | 20 | $ | 69 | |||
| Dividend and interest income | 11 | 10 | 32 | 30 | |||||||
| Foreign exchange (loss) income | (3 | ) | 21 | (1 | ) | 19 | |||||
| 31 | 50 | 51 | 118 | ||||||||
| Expenses | |||||||||||
| Interest | 8 | 8 | 22 | 23 | |||||||
| Net income before income taxes | 23 | 42 | 29 | 95 | |||||||
| Income tax expense | - | 5 | - | 9 | |||||||
| Net income | $ | 23 | $ | 37 | $ | 29 | $ | 86 | |||
| Net income per common share | $ | 0.47 | $ | 0.81 | $ | 0.59 | $ | 1.87 | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| (unaudited) | Three months ended September 30 |
Nine months ended September 30 |
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| (US$ millions) | 2012 | 2011 | 2012 | 2011 | |||||||||
| Net income | $ | 23 | $ | 37 | $ | 29 | $ | 86 | |||||
| Other comprehensive (loss) income | |||||||||||||
| Foreign currency translation | 18 | (7 | ) | 24 | 4 | ||||||||
| Available-for-sale securities - fair value changes | (28 | ) | (348 | ) | 94 | (239 | ) | ||||||
| Equity accounted other comprehensive (loss) income | (2 | ) | (2 | ) | (5 | ) | 4 | ||||||
| Deferred income tax | - | 1 | (3 | ) | (1 | ) | |||||||
| (12 | ) | (356 | ) | 110 | (232 | ) | |||||||
| Comprehensive income (loss) | $ | 11 | $ | (319 | ) | $ | 139 | $ | (146 | ) | |||
Contact Information:
Derek Gorgi
Vice President and Chief Financial Officer
416-363-9491