Brascan Reports Record Cash Flow From Operations Of US$400 Million For The First Nine Months Of 2003.Business Editors TORONTO--(BUSINESS WIRE)--Nov. 6, 2003 Brascan Corporation (NYSE NYSE See: New York Stock Exchange :BNN BNN Boston Neighborhood Network BNN Boundary Network Node (IBM) BNN Back-Propagation Neural Network BNN Biological Neural Network BNN Bart's Neverending Network (public-service TV network in The Netherlands) )(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BNN.A) 23% HIGHER THAN 2002 ON A COMPARABLE BASIS
Results For the Three Months Ended September 30
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Unaudited (US$ millions,
except per share information) 2003 2002
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Excluding Including
property disposition
disposition property
gains gains
Cash flow from operations $ 138 $ 118 $ 128
- per share $ 0.69 $ 0.58 $ 0.63
Net income $ 100 $ 51 $ 58
- per share $ 0.48 $ 0.21 $ 0.25
Results For the Nine Months Ended September 30
---------------------------------------
Unaudited (US$ millions,
except per share information) 2003 2002
------ --------------------------
Excluding Including
property disposition
disposition property
gains gains
Cash flow from operations $ 400 $ 322 $ 352
- per share $ 2.01 $ 1.64 $ 1.81
Net income $ 219 $ 173 $ 193
- per share $ 0.98 $ 0.80 $ 0.92
Brascan Corporation (NYSE:BNN)(TSX:BNN.A) today reported record cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $400 million ($2.01 per share) for the nine months ended September September: see month. 30, 2003, compared with $322 million ($1.64 per share) excluding property gains and $352 million ($1.81 per share) including such gains in the same period last year. On a comparable basis (excluding the impact of net gains on the sale of property), cash flow per share for the first nine months of 2003 increased by 23%. This growth was driven by increased contribution across virtually all of the company's operations. For the three months ended September 30, 2003, cash flow from operations increased to $138 million ($0.69 per share), compared with $118 million ($0.58 per share) excluding property gains, and $128 million ($0.63 per share) including such gains in the same period last year. This represents cash flow per share growth for the quarter on a comparable basis of 19%. Operating results continue to be on target to achieve the highest cash flows in the company's history, backed in large measure by long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. real estate leases and power contracts. On a net income basis, results improved significantly in the third quarter assisted by stronger resource income which was driven by both productivity achievements and higher prices. Net income for the three months ended September 30, 2003 increased to $100 million ($0.48 per share) compared with $58 million ($0.25 per share) in the third quarter last year, representing per share growth of 92%. In addition to expected strong operating results, the fourth quarter of 2003 will also contain a $100 million gain, prior to tax and minority shareholders interests, from the sale of a 49% interest in 245 Park Avenue in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . This continues the company's strategy of opportunistically realizing on value created within our operations. "Our continued focus on building sustainable cash flows in our operations delivered strong results in the first nine months. This was driven by increasing returns from our office properties, buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. housing markets, and increased contribution from our asset management operations," commented Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Flatt, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Brascan. Additional Information The Letter to Shareholders for the third quarter of 2003 is attached to this release and contains further information on the company's strategy, operations and financial results. This letter is available on the company's web site. A Supplementary Information Package with additional financial information is also posted on Brascan's web site (under Investor Centre, Financial Reports and Investor Presentations) and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with this press release. The Supplementary Information Package includes management's estimates of the underlying value of the company's operating businesses based on their cash flows. Dividend Declaration On November November: see month. 5, 2003, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly common share dividend of C$0.26 per share, payable February February: see month. 29, 2004 in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents or US equivalent to shareholders of record on February 1, 2004. Information on all of the company's common and preferred share dividends can be found on Brascan's web site under Investor Centre - Stock Information. Brascan Profile Brascan is a real estate, power generation and asset management company whose objective is to earn a superior return on equity by operating businesses which produce consistent and sustainable cash flows. With direct investments of US$16 billion, Brascan owns 55 high quality office properties and 42 power generating plants, and has a further US$5 billion of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The company is listed on the New York and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BNN and BNN.a respectively. Note: This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" 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 achievement expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
CONSOLIDATED STATEMENT OF INCOME
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unaudited Three months Nine months
ended Sept. 30 ended Sept. 30
US$ millions, except
per share amounts 2003 2002 2003 2002
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Total revenues $ 806 $ 689 $ 2,192 $ 2,121
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Net operating income
Real estate operations $ 215 $ 180 $ 594 $ 543
Power generating plants 35 41 115 115
Asset management 53 48 154 132
Property gains - 20 - 60
Investment income and other 28 28 81 74
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331 317 944 924
Expenses
Interest expense 121 121 345 353
Minority share of income
before non-cash items 73 72 200 228
Other operating costs 16 12 49 39
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Income before non-cash items 121 112 350 304
Depreciation and amortization 38 30 109 90
Taxes and other non-cash items 41 27 99 80
Minority share of non-cash
items (27) (22) (72) (64)
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Income before resource
investments 69 77 214 198
Equity accounted income (loss)
from resource investments 31 (19) 5 (5)
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Net income $ 100 $ 58 $ 219 $ 193
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Net income per common share
Diluted $ 0.48 $ 0.25 $ 0.98 $ 0.92
Basic $ 0.49 $ 0.26 $ 1.00 $ 0.94
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CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS
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unaudited Three months Nine months
ended Sept. 30 ended Sept. 30
US$ millions 2003 2002 2003 2002
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Income before non-cash items $ 121 $ 112 $ 350 $ 304
Dividends from Noranda Inc. 12 12 37 36
Dividends from Nexfor Inc. 5 4 13 12
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Cash flow from operations and
gains $ 138 $ 128 $ 400 $ 352
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See Note 1
CONSOLIDATED BALANCE SHEET
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unaudited
September 30 December 31
US$ millions 2003 2002
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Assets
Cash and cash equivalents $ 308 $ 332
Financial assets 528 718
Accounts receivable and other 1,532 1,348
Operating assets
Real estate properties 6,838 6,618
Power generating plants 1,782 1,480
Asset management 1,889 1,328
Assets under development 1,570 1,412
Investment in Noranda and Nexfor 1,561 1,186
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$16,008 $14,422
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Liabilities
Corporate borrowings $ 1,413 $ 1,035
Non-recourse borrowings
Property specific mortgages 5,083 4,992
Other debt of subsidiaries 2,077 1,867
Accounts and other payables 1,639 1,262
Shareholders' interests
Minority interests of others in
assets 1,425 1,456
Preferred equity
Corporate 852 735
Subsidiaries 600 450
Common equity 2,919 2,625
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$16,008 $14,422
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Note 1 The press release and accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge make reference to cash flow from operations on a total and per share basis. Management uses cash flow from operations as a key measure to evaluate performance and to determine the underlying value of its businesses. The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of cash flow from operations provides a full reconciliation between this measure and net income. Readers are encouraged to consider both measures in assessing Brascan's results. Investors, analysts and other interested parties can access Brascan's 2003 Third Quarter Results Shareholders Letter, as well as the Supplementary Information Package and Corporate Profile, which form the basis of this release, on Brascan's web site under the Investor Centre/Financial Reports and Investor Presentations section at www.brascancorp.com. The 2003 Third Quarter Results conference call can be accessed via webcast on November 6, 2003 at 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. at www.brascancorp.com or via teleconference at 416-695-9753 or 1-877-888-7019, toll free in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1:50 p.m. EST, using Reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. Number T451856S. The teleconference replay can be accessed at 416-695-6056 or 1-800-293-6850 using pass code 1856. |
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