Brookfield Asset Management Reports Third Quarter Net Income of US$736 Million.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 -- Brookfield Asset Management  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Inc. (currently Brascan Corporation) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BAM Bam (bäm), town (1996 pop. 70,100), Kerman prov., SE Iran, on the intermittent Bam River. Located on the western edge of the Dasht-e Lut, Bam is a trade center in a henna-growing region. Dates and other fruits are also grown; camels are raised. )(NYSE NYSE See: New York Stock Exchange :BAM) Investors, analysts and other interested parties can access Brookfield Brookfield. 1 Village (1990 pop. 18,876), Cook co., NE Ill., a residential suburb of Chicago; inc. 1893. The noted Chicago Zoological Park (Brookfield Zoo) is there. 2 City (1990 pop. 35,184), Waukesha co., SE Wis. Asset Management's 2005 Third 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 Third Quarter Results conference call can be accessed via webcast on November 3, 2005 at 3:00 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 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 507-726-3566, at approximately 2:50 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 INCREASES TO $286 MILLION Brookfield Asset Management Inc. (currently Brascan Corporation) (TSX:BAM)(NYSE:BAM) today announced operating results for the third quarter ended September 30, 2005. Net income totalled $736 million ($2.73 per share) compared with $133 million ($0.49 per share) in the same period last year, and includes a gain on the sale of our remaining investment in Falconbridge of $636 million after tax. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , which excludes a gain on the sale of our Falconbridge shares, for the three months ended September 30, 2005 totalled $286 million ($1.04 per share) compared with $188 million ($0.70 per share) last year. The following table presents the results on a total and per share basis.
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Three months ended Nine months ended
Sept. 30 Sept. 30
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US$ millions
(except per share amounts) 2005 2004 2005 2004
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Net income $ 736 $ 133 $ 1,511 $ 468
- per share $ 2.73 $ 0.49 $ 5.58 $ 1.73
Cash flow from operations $ 286 $ 188 $ 656 $ 493
- per share $ 1.04 $ 0.70 $ 2.37 $ 1.83
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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, Chief Executive Officer of Brookfield Asset Management commented: "Our core operations in property, power and infrastructure assets performed in line with expectations and we are well positioned to generate additional growth in operating cash flows for the balance of the year. The disposition of our investment in Falconbridge significantly increased our liquidity and represents the culmination of our plan to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. our resource investments." Dividend Declaration On November 2, 2005, the Board of Directors declared a regular dividend of US$0.15 per Class A Share, payable on February 28, 2006, to shareholders of record as at the close of business on February 1, 2006. Information on Brookfield Asset Management's common and preferred share dividends can be found on the company's web site under Investor Centre/Stock Information. Corporate Activities A special meeting of shareholders will be held on November 10, 2005 to consider a resolution to change the name of the company to Brookfield Asset Management Inc. This will enable the company to operate under one unified name across our operations. In addition, the currently outstanding offer to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $500 million of common shares at $41.00 per share will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on November 9, 2005. Additional Information The Letter to Shareholders and the company's Supplemental Financial Information for the nine months ended September 30, 2005 contains 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. (currently Brascan Corporation) is a specialist asset manager. Focused on property, power and infrastructure assets, the company has approximately $40 billion of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The company is co-listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . For more information, please visit our web site at www.brascancorp.com.
CONSOLIDATED STATEMENT OF INCOME
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(Unaudited) Three months ended Nine months ended
Sept. 30 Sept. 30
US$ millions, except per
share amounts 2005 2004(a) 2005 2004(a)
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Total revenues $ 1,368 $ 994 $ 3,516 $ 2,600
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Net operating income
Property 277 241 769 677
Power generation 98 68 361 213
Funds management 57 46 225 165
Investment income 39 17 72 38
Gains and other 41 67 67 148
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512 439 1,494 1,241
Expenses
Interest expense 218 154 652 454
Current income taxes 28 16 74 40
Other operating costs 21 22 68 53
Minority share of net
income before the following 74 74 235 248
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171 173 465 446
Other items
Equity accounted income
from investments 34 79 210 270
Gains on disposition of
Falconbridge 785 - 1,350 -
Depreciation and
amortization (102) (60) (271) (172)
Future income taxes and
other provisions (180) (107) (329) (193)
Minority share of the
foregoing items 28 48 86 117
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Net income $ 736 $ 133 $ 1,511 $ 468
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Net income per common share
Diluted $ 2.73 $ 0.49 $ 5.58 $ 1.73
Basic $ 2.80 $ 0.50 $ 5.72 $ 1.75
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CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS
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(Unaudited) Three months ended Nine months ended
Sept. 30 Sept. 30
US$ millions 2005 2004(a) 2005 2004(a)
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Income before
non-cash items(1) $ 171 $ 173 $ 465 $ 446
Dividend from Canary Wharf 110 - 110 -
Dividends from Falconbridge - 11 24 33
Dividends from Norbord 5 4 57 14
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Cash flow from operations $ 286 $ 188 $ 656 $ 493
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(1) Net operating income less expenses
(a) See accompanying notes on following page
CONSOLIDATED BALANCE SHEET
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(Unaudited) (Unaudited)
September 30 June 30 December 31
US$ millions 2005 2005 2004(2)
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Assets
Operating assets
Property $ 10,334 $ 10,217 $ 9,289
Power generation 3,636 3,520 3,048
Funds management 4,926 5,538 4,719
-----------------------------------
18,896 19,275 17,056
Cash and cash equivalents 1,244 674 404
Securities 2,391 1,731 996
Accounts receivable and other 3,683 3,199 1,551
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$ 26,214 $ 24,879 $ 20,007
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Liabilities and Shareholders' Equity
Liabilities
Corporate borrowings $ 1,685 $ 1,832 $ 1,675
Non-recourse borrowings
Property specific mortgages 8,112 7,865 6,045
Other debt of subsidiaries 2,481 2,544 2,373
Accounts payable and other
liabilities 5,086 4,576 2,719
Capital securities(2) 1,598 1,513 1,548
Minority interests of others
in assets 2,076 2,087 1,780
Preferred equity 590 590 590
Common equity 4,586 3,872 3,277
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$ 26,214 $ 24,879 $ 20,007
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Note 1 The press release and accompanying 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 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 Brookfield Asset Management'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 statutory financial statements. 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:BAM) (NYSE:BAM) |
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