BAM Investments Announces Third Quarter Results

• Press Release
• Source: BAM Investments Corp.
• On 4:31 pm EST, Friday November 14, 2008

TORONTO, ONTARIO--(MARKET WIRE)--Nov 14, 2008 -- BAM Investments Corp. (Toronto:BNB.TO - News) today announced its financial results for the third quarter ended September 30, 2008.

The company recorded net income of $2.9 million ($0.03 per share) for the quarter ended September 30, 2008, compared with $1.6 million ($0.02 per share) in the same period last year. Net income for the nine months ended September 30, 2008 reflects a special dividend received on the Brookfield Class A shares valued at $50.1 million.

The company's principal investment is a direct and indirect interest in 55.5 million Class A Limited Voting shares ("Class A shares") of Brookfield Asset Management Inc. ("Brookfield").

 

Consolidated Statements of Operations
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                                  Three months ended      Nine months ended
(unaudited)                             September 30           September 30
$thousands, except per          -------------------------------------------
 share amounts                    2008          2007      2008         2007
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Investment income
 Dividends, interest and other  $9,487        $8,464   $26,684      $25,761
 Special dividend                    -             -    50,056            -
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                                 9,487         8,464    76,740       25,761
Expenses
 Operating                         108            75       509          760
 Interest expense                1,389         1,402     3,472        3,560
 Amortization of deferred
  financing costs                  419           427     1,263        1,211
 Subsidiary preferred
  share dividends                5,049         5,118    15,285       15,354
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                                 6,965         7,022    20,529       20,885
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Net income before income taxes   2,522         1,442    56,211        4,876
Future tax (recovery) expense     (400)         (187)    1,180       (1,628)
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Net income                      $2,922        $1,629   $55,031       $6,504
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Net income per common share      $0.03         $0.02     $0.69        $0.08
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Net Book Value

The net book value of the company's common shares as at September 30, 2008 based on the stock market price of Brookfield's Class A shares of $28.66 was $14.09 per share. BAM Investments holds 6.98 Brookfield Class A shares for every 10 common shares of BAM Investments. The information in the following table has been extracted from the company's consolidated balance sheet as at September 30, 2008.

 

Statement of Financial Position
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As at September 30, 2008 ($thousands, except per
 share amounts)                                             Net Asset Value
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Assets
 Investment in Brookfield Asset Management Inc.(1)               $1,589,661
 Investment in Brookfield Infrastructure Partners(2)                 40,500
 Cash and equivalents                                                57,322
 Other assets                                                         9,675
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                                                                 $1,697,158
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Liabilities
 Accounts payable and provisions                                     $3,094
 Retractable preferred shares(3)                                    397,821
 Future tax liability(4)                                            176,987
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                                                                    577,902
Shareholders' Equity
 Common shares                                                    1,119,256
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                                                                 $1,697,158
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Net Asset Value Per Common Share(5)                                  $14.09
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Notes:
(1)The investment in Brookfield Asset Management Inc. consists of 55.5
   million Class A shares at a bid price of $28.66 per Brookfield share at
   September 30, 2008. This represents the total shares owned of 60.8
   million Class A shares less 5.3 million Class A that have been set aside
   for settlement of the long-term exchangeable debentures issued by the
   company.
(2)The investment in Brookfield Infrastructure Partners consists of 2.4
   million Limited Partnership Units at a bid price of $16.68 per unit. 3)
   Represents $405 million retractable preferred shares issued by BAM Split
   Corp, which is a subsidiary of the company, net of unamortized issuance
   costs and preferred shares acquired which the company intends to
   redistribute.
(4)The future tax liability represents the potential future income tax
   liability of the company based on the difference between the carrying
   values of the company's assets and liabilities and their respective tax
   values, as well as giving effect to estimated capital and non-capital
   losses as at the date of this statement.
(5)As at September 30, 2008, there were 79,418,910 common shares of the
   company issued and outstanding.

Note: This news release contains "forward-looking statements". The words "potential" and "estimated" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they 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 achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

     Contacts:
     BAM Investments Corp.
     Brian D. Lawson
     President and Chief Executive Officer
     (416) 359-8620