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 | |
| (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 | ) |