Brookfield Asset Management Announces 2009 Firs...
TORONTO, ONTARIO--(Marketwire - May 05, 2009) - Brookfield Asset
Management Inc. (TSX: BAM.A)(NYSE: BAM)(EURONEXT: BAMA) -
Investors, analysts and other interested parties can access
Brookfield Asset Management's 2009 Q1 Results as well as the
Shareholders' Letter and Supplemental Information on Brookfield's web
site under the Investor Centre/Financial Reports section at
www.brookfield.com.
The 2009 Results conference call can be accessed via webcast on May
5, 2009 at 11 a.m. Eastern Time at www.brookfield.com or via
teleconference at 1-800-319-4610 toll free in North America. For
overseas calls please dial 1-604-638-5340, at approximately 10:50
a.m. Eastern Time. The teleconference taped rebroadcast can be
accessed at 1-800-319-6413 or 604-638-9010 (Password 2811).
Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM)(EURONEXT:
BAMA) today announced its results for the quarter ended March 31,
2009.
For the three months ended March 31
US$ millions (except per share amounts) 2009 2008
----------------------------------------------------------------------------
Cash flow from operations $ 273 $ 443
- per share 0.46 0.72
Net income $ 93 $ 197
- per share 0.15 0.31
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Operating Cash Flow
Cash flow from operations was $273 million ($0.46 per share) during
the quarter. Last year's comparable results were $443 million ($0.72
per share) which included a number of special items that gave rise to
gains, which did not occur to the same extent this quarter. The
company's office property and renewable power operations were
consistent with the same period in 2008, as the contractual nature of
the cash flows largely mitigated the impact of the economic
environment.
"The strength and stability of our renewable power and office
property businesses are a major contributor to our operating results
and asset values. This provides us a strong earnings base for the
balance of 2009 and through 2010," commented Bruce Flatt, Senior
Managing Partner of Brookfield Asset Management. "The high quality of
our office property portfolio, which is 96% occupied, allows us to
generate stable long-duration contracted rental income streams. In
addition, we have contracted more than 75% of our expected renewable
generation for the balance of 2009 and 2010."
Net Income
Net income for the first quarter of 2009 was $93 million ($0.15 per
share) compared to $197 million ($0.31 per share) in for the same
period in 2008. Similar to our operating cash flows, the 2008 results
reflected the higher level of disposition gains, while the current
period results reflect the impact of the current economic
environment.
For the three months ended March 31
US$ millions (except per share amounts) 2009 2008
----------------------------------------------------------------------------
Net income $ 93 $ 197
- per share 0.15 0.31
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Basis of Presentation
This news release and accompanying financial statements make
reference to cash flow from operations on a total and per share
basis. Cash flow from operations is defined as net income excluding
depreciation and amortization, interests of non-controlling
shareholders, future income taxes and other items as described as
such in the consolidated statements of income, and including
dividends and disposition gains that are not otherwise included in
net income. Brookfield uses cash flow from operations to assess its
operating results and the value of its business and believes that
many of its shareholders and analysts also find this measure of value
to them. The company provides the components of cash flow from
operations and a reconciliation between cash flow from operations and
net income with the supplemental information accompanying this news
release. Cash flow from operations is a non-GAAP measure which does
not have any standard meaning prescribed by GAAP and therefore may
not be comparable to similar measures presented by other companies.
Dividend Declaration
The Board of Directors declared a dividend of US$0.13 per Class A
Common Share, payable on August 31, 2009, to shareholders of record
as at the close of business on August 1, 2009. The Board also
declared all of the regular monthly and quarterly dividends on its
preferred shares.
Information on Brookfield Asset Management's declared share dividends
can be found on the company's web site under Investor Centre/Stock
and Dividend Information.
Additional Information
The Letter to Shareholders and the company's Supplemental Information
for the quarter ended March 31, 2009 contain further information on
the company's strategy, operations and financial results.
Shareholders are encouraged to read these documents, which are
available on the company's web site.
Brookfield Asset Management Inc., is a global asset management
company focused on property, power and infrastructure assets, has
approximately $80 billion of assets under management and is co-listed
on the New York and Toronto Stock Exchanges under the symbol BAM and
on NYSE Euronext under the symbol BAMA. For more information, please
visit our web site at www.brookfield.com.
Please note that Brookfield's audited annual and unaudited quarterly
reports have been filed on Edgar and Sedar and can also be found in
the investor section of our web site at www.brookfield.com. Hard
copies of the annual and quarterly reports can be obtained free of
charge upon request.
Note: This news release contains forward-looking information within
the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, "safe harbor" provisions
of the United States Private Securities Litigation Reform Act of 1995
and in any applicable Canadian securities regulations. The words
"stable", "allows", "contracted", "expected", "intend", "provides",
derivations thereof and other expressions that are predictions of or
indicate future events, trends or prospects and which do not relate
to historical matters identify forward-looking statements.
Forward-looking statements in this news release include statements in
regards to the strength of our future earnings base for the balance
of 2009 and 2010, our ability to generate stable long duration
contracted rental income streams, our contracted renewable
generation, our expected renewable generation for the balance of 2009
and 2010, procedures and assumptions that we intend to use in
adopting International Financial Reporting Standards ("IFRS") and
date of our first IFRS reporting period. Although Brookfield Asset
Management believes that its anticipated future results, performance
or achievements expressed or implied of such assets by the
forward-looking statements and information are based upon reasonable
assumptions and expectations, the reader should not place undue
reliance on forward-looking statements and information as such
statements and information involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the company to differ materially from
anticipated future results, performance or achievement expressed or
implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include:
economic and financial conditions in the countries in which we do
business; the behaviour of financial markets, including fluctuations
in interest and exchange rates; availability of equity and debt
financing; strategic actions including dispositions; the ability to
complete and effectively integrate acquisitions into existing
operations and the ability to attain expected benefits; tenant
renewal rates, availability of new tenants to fill office property
vacancies, tenant bankruptcies, adverse hydrology conditions;
regulatory and political factors within the countries in which the
company operates; acts of God, such as earthquakes and hurricanes;
the possible impact of international conflicts and other developments
including terrorist acts; changes in accounting policies to be
adopted under IFRS and other risks and factors detailed from time to
time in the company's form 40-F filed with the Securities and
Exchange Commission as well as other documents filed by the company
with the securities regulators in Canada and the United States
including the company's most recent Management's Discussion and
Analysis of Financial Results under the heading "Business Environment
and Risks."
We caution that the foregoing factors that may affect future results
is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Brookfield Asset Management, investors
and others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, the
company undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
as a result of new information, future events or otherwise.
CONSOLIDATED STATEMENTS OF CASH FLOW FROM OPERATIONS
(Unaudited)
For the three months Consolidated Net
ended March 31 ------------------------ -----------------------
US$ millions (except per
share amounts) 2009 2008 2009 2008
--------------------------------------------------------------------------
Fees earned $ 105 $ 114 $ 105 $ 114
Revenues less direct
operating costs
Commercial properties 400 421 167 182
Power generation 239 251 131 148
Infrastructure 40 48 19 28
Development and other
properties 23 64 15 29
Specialty funds 39 104 8 44
Investment and other
income 169 318 127 221
--------------------------------------------------------------------------
1,015 1,320 572 766
Expenses
Interest 415 527 72 78
Other operating costs 159 165 157 164
Current income taxes 11 17 - 2
Non-controlling
interests 157 168 70 79
--------------------------------------------------------------------------
Cash flow from operations $ 273 $ 443 $ 273 $ 443
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash flow from operations
per common share -
diluted $ 0.46 $ 0.72 $ 0.46 $ 0.72
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Notes
Cash flow from operations is reconciled to net income before other items on
page 6 of this news release as follows:
(Unaudited)
For the three months
ended March 31
US$ millions 2009 2008
--------------------------------------------------------------------------
Net income excluding
other items (see page 6) $ 273 $ 437
Dividends from equity
accounted investments(1) - 6
--------------------------------------------------------------------------
Cash flow from operations
(per above) $ 273 $ 443
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Included in "Investment and Other Income" in the Statements of Cash
Flow from Operations
The consolidated statements of cash flow from operations above are
prepared on a basis that is consistent with Management's Discussion
and Analysis of Financial Results ("MD&A") and differ from the
company's consolidated financial statements presented in its 2008
Annual Report, which are prepared in accordance with Canadian
generally accepted accounting principles ("GAAP"). Management uses
cash flow from operations as a key measure to evaluate performance
and to determine the underlying value of its businesses. Readers are
encouraged to consider both measures in assessing Brookfield Asset
Management's results. Cash flow from operations is equal to net
income excluding "other items" as presented in the consolidated
statements of income on page 6 of this release and including
dividends from investments as shown in the table above.
Net operating cash flow represents the combined operations of
Brookfield Asset Management and Brookfield Properties Corporation
("Brookfield Properties") and is net of carrying charges associated
with related liabilities and cash flows attributable to related
non-controlling interests. Refer to the company's supplemental
information or the MD&A contained in the 2008 Annual Report, both of
which are available at www.brookfield.com.
UNDERLYING VALUE AND NET INVESTED CAPITAL
Net Invested Capital
(Unaudited) Underlying Value ------------------------------
US$ millions December 31, 2008 March 31, 2009 December 31, 2008
----------------------------------------------------------------------------
Assets
Operating platforms
Commercial properties $ 7,798 $ 4,391 $ 4,575
Power generation 6,639 1,077 1,215
Infrastructure 974 843 761
Development and other
properties 3,313 3,353 3,334
Specialty funds 903 895 870
Investments 701 707 704
Cash and financial assets 1,073 951 1,073
Other assets 2,650 2,569 2,551
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$ 24,051 $ 14,786 $ 15,083
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Corporate borrowings $ 2,284 $ 2,292 $ 2,284
Subsidiary borrowings 733 730 733
Capital securities 1,425 1,385 1,425
Other liabilities 3,267 2,371 2,654
----------------------------------------------------------------------------
7,709 6,778 7,096
----------------------------------------------------------------------------
Capitalization
Co-investor interests in
consolidated operations 3,541 2,162 2,206
Preferred equity 870 870 870
Common equity 11,931 4,976 4,911
----------------------------------------------------------------------------
16,342 8,008 7,987
----------------------------------------------------------------------------
$ 24,051 $ 14,786 $ 15,083
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net invested capital above includes the operations of the company and
Brookfield Properties collectively, and is presented on a
deconsolidated basis meaning that assets are presented net of
associated liabilities and non-controlling interests.
UNDERLYING VALUE OF COMMON EQUITY
As at December 31, 2008 (unaudited)
US$ millions (except per share amounts) Total Per Share
----------------------------------------------------------------------------
Common equity - including future tax liability $ 11,931 $ 20.62
Add back: future tax liability 2,220 3.70
----------------------------------------------------------------------------
Common equity - excluding future tax liability $ 14,151 $ 24.32
----------------------------------------------------------------------------
----------------------------------------------------------------------------
This news release contains a preliminary analysis of the underlying
value of the company and its common equity, based on the procedures
and assumptions that we expect to follow in preparing our pro forma
opening balance sheet for our adoption of International Financial
Reporting Standards ("IFRS"). Accordingly, certain assets, such as
appraisal surplus relating to inventories and intangible assets, such
as the value of the company's asset management business, have not
been reflected. Please refer to our Supplemental Information under
"Performance Review - Balance Sheet, Liquidity and Capitalization"
which is available on the company's web site for further information.
This information has been prepared using the standards and
interpretations currently issued and expected to be effective at the
end of our first annual IFRS reporting period, which we intend to be
March 31, 2010. Consequently, in preparing this information,
assumptions have been made about the accounting policies expected to
be adopted. Certain accounting policies expected to be adopted under
IFRS may not be adopted and the application of such policies to
certain transactions or circumstances may be modified and as a result
underlying values are subject to change. Furthermore, the underlying
values have not been audited or subject to a review by the company's
auditor.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the three months ended March 31
US$ millions (except per share amounts) 2009 2008
----------------------------------------------------------------------------
Total revenues $ 2,651 $ 3,210
Fees earned $ 105 $ 114
Revenues less direct operating costs
Commercial properties 400 421
Power generation 239 251
Infrastructure 40 48
Development and other properties 23 64
Specialty funds 39 104
Investment and other income 169 312
----------------------------------------------------------------------------
1,015 1,314
Expenses
Interest 415 527
Other operating costs 159 165
Current income taxes 11 17
Non-controlling interests 157 168
----------------------------------------------------------------------------
273 437
Other items
Depreciation and amortization (329) (314)
Equity accounted losses from investments - (13)
Revaluation and other items (3) (63)
Future income taxes 2 18
Non-controlling interests in the foregoing items 150 132
----------------------------------------------------------------------------
Net income $ 93 $ 197
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per common share
Diluted $ 0.15 $ 0.31
Basic $ 0.15 $ 0.32
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Note
The consolidated statements of income are prepared on a basis consistent
With the company's financial statements presented in its interim report,
which are prepared in accordance with Canadian GAAP.
Contacts:
Brookfield Asset Management
Denis Couture, SVP,
Investor Relations and Corporate and International Affairs
(416) 956-5189
(416) 363-2856 (FAX)
Email: dcouture@brookfield.com
Website: www.brookfield.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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