Brascan Reports Record Cash Flow from Operations and Net Income.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Brascan Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :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) )(NYSE NYSE See: New York Stock Exchange :BNN) - Investors, analysts and other interested parties can access Brascan's 2005 First Quarter Results as well as the Shareholders' Letter Shareholders' letter A section of an annual report where one can find general overall discussion by management of successful and failed strategies. Provides guidance for looking at specific parts of the report. and Supplemental Financial Information on Brascan's web site under the Investor Centre/Financial Reports and Investor Presentations section at www.brascancorp.com. The 2005 First Quarter Results conference call can be accessed via webcast on April 29, 2005 at 2:30 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 1-800-240-5124, 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. . For overseas calls please dial 507-726-3506, at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2:20 p.m. EST. The teleconference taped rebroadcast can be accessed at 1-800-807-5189. 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 PER SHARE INCREASED 27% NET INCOME PER SHARE INCREASED 11% Brascan Corporation (TSX:BNN)(NYSE:BNN) today announced record operating results for the first quarter ended March 31, 2005. Cash flow from operations totalled $173 million and net income increased to $165 million, compared with $136 million and $145 million, respectively for 2004. Cash flow from operations on a per share basis increased by 27%, and net income increased 11%.
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For the three months ended March 31
US$ millions -----------------------------------
(except per share amounts) 2005 2004
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Net Income $ 165 $ 145
- per share $ 0.59 $ 0.53
Cash flow from operations $ 173 $ 136
- per share $ 0.62 $ 0.49
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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 Chief Executive Officer of Brascan commented: "We made operational and financial progress in all of our operations during the first quarter. In particular, the contribution from our power operations grew substantially as a result of productivity enhancements, and new facilities added to our portfolio. Our property operations also continued to benefit from strong fundamentals in each of our core markets." Dividend Declaration On April 28, 2005, 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 dividend of US$0.15 per Class A Share, payable on August 31, 2005, to shareholders of record as at the close of business on August 1, 2005. Information on Brascan's common and preferred share dividends can be found on Brascan's web site under Investor Centre/Stock Information. Additional Information The Letter to Shareholders and the company's Supplemental Financial Information for the three months ended March 31, 2005 contains further information on the company's strategy, operations and financial results. These documents are available on the company's web site. Brascan Profile Brascan Corporation is an asset management company. With a focus on property, power and infrastructure assets, the company currently has over $40 billion of assets owned and under management. This includes 70 premier office properties and nearly 130 power generating plants. The company is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BNN and BNN.LV.A, respectively.
CONSOLIDATED STATEMENT OF INCOME
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(Unaudited) Three months ended March 31
US$ millions, except per share amounts 2005 2004(2)
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Total revenues and gains $ 992 $ 768
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Net operating income
Property 228 214
Power generation 141 74
Funds management 82 54
Investment income and other 31 25
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482 367
Expenses
Interest expense 199 147
Current income taxes 16 8
Other operating costs 27 18
Minority share of net income before
the following 83 74
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157 120
Depreciation and amortization (77) (56)
Future income taxes and other provisions (46) (43)
Minority share of the foregoing items 28 28
Equity accounted income from investments 103 96
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Net income $ 165 $ 145
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Net income per common share
Diluted $ 0.59 $ 0.53
Basic $ 0.61 $ 0.54
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CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS
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(Unaudited) Three months ended March 31
US$ millions, except per share amounts 2005 2004(2)
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Income before non-cash items $ 157 $ 120
Dividends from Noranda Inc. 12 11
Dividends from Norbord Inc. 4 5
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Cash flow from operations $ 173 $ 136
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See accompanying notes
CONSOLIDATED BALANCE SHEET
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(Unaudited) March 31 December 31
US$ millions 2005 2004(2)
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Assets
Operating assets
Property $ 10,040 $ 9,289
Power generation 3,370 3,048
Funds management 3,475 3,375
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16,885 15,712
Cash and cash equivalents 544 404
Securities 861 996
Accounts receivable and other 2,918 1,551
Investment in Noranda 1,403 1,344
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$ 22,611 $ 20,007
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Liabilities
Corporate borrowings $ 1,644 $ 1,675
Non-recourse borrowings
Property specific mortgages 7,269 6,045
Other debt of subsidiaries 2,478 2,373
Accounts payable and other liabilities 3,838 2,719
Capital securities 1,536 1,548
Shareholders' interests
Minority interests of others in assets 1,845 1,780
Preferred equity 590 590
Common equity 3,411 3,277
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$ 22,611 $ 20,007
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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. In addition, the consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. above presents the company's cost accounted investment in Canary Wharf
Canary Wharf is a large business development in London, located on the Isle of Dogs in the London Borough of Tower Hamlets, centred on the old West India Docks in Group, plc as part of its property operations, consistent with management's determination of business segments, whereas it is included in "Funds Management" in the company's interim report to shareholders. Note 2 Certain convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. and preferred securities have been reclassified as capital securities in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with changes in accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . This has also resulted in conforming changes to dividends paid, interest expense, foreign exchange gains and retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Note: This press release and attachments contain "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 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. Brascan Corporation (TSX:BNN) (NYSE:BNN) |
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