Brookfield Asset Management Reports Year End Net Income of US$1,662 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 -- In the Consolidated Statement of Income table, Year ended December December: see month. 31, 2005 the Net income per common share - Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. should read $6.12 instead of $6.10. The corrected release reads: 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 . REPORTS YEAR END NET INCOME OF US$1,662 MILLION Brookfield Asset Management Inc. (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) 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 INCREASES TO $908 MILLION 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 Year End 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 Brookfield's web site under the Investor Centre/Financial Reports and Investor Presentations section at www.brookfield.com. The 2005 Year End Results conference call can be accessed via webcast on February February: see month. 10, 2006 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.brookfield.com or via teleconference at 1-877-888-3855, 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 416-695-6120, at approximately 1:50 p.m. EST. The teleconference taped rebroadcast can be accessed at 1-888-509-0082. Brookfield Asset Management Inc. (TSX:BAM)(NYSE:BAM) today announced operating results for the year ended December 31, 2005. Net income totalled $1,662 million ($6.10 per share) compared with $555 million ($2.02 per share) in the same period last year. 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 totalled $908 million ($3.27 per share) compared with $626 million ($2.32 per share) last year. The following table presents the results on a total and per share basis.
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Three months Year ended
ended Dec. 31 Dec. 31
US$ millions,
(except per share amounts) 2005 2004 2005 2004
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Net income $ 151 $ 87 $ 1,662 $ 555
- per share $ 0.54 $ 0.29 $ 6.12 $ 2.02
Cash flow from operations $ 252 $ 133 $ 908 $ 626
- per share $ 0.91 $ 0.49 $ 3.28 $ 2.32
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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 operations continue to perform well. With a number of strategic initiatives completed during the year, we are positioned to continue our transformation into an asset manager of choice for investors." Dividend Declaration The Board of Directors increased the regular quarterly dividend by $0.01 to US$0.16 per Class A Share, payable on May 31, 2006, to shareholders of record as at the close of business on May 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. Additional Information The Letter to Shareholders and the company's Supplemental Financial Information for the year ended December 31, 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. is an asset manager. Focused on property, power and infrastructure assets, the company has approximately $50 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. and 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. under the symbol BAM. For more information, please visit our web site at www.brookfield.com. Note: This press release and the Shareholders Letter and Supplemental Information referred to herein contain forward-looking information which includes statements concerning our ability to transform into an asset manager of choice and prospects for our business generally and other "forward looking statements", 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 "transform", "believe", "expect", "will", "potentially", "anticipate", "positioned", "intend", "estimate", and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify 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. .Although Brookfield Asset Management believes that the anticipated future results, performance or achievements expressed or implied 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 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 and information.Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: general economic conditions; interest; 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 ; the ability to effectively integrate acquisitions into existing operations; and other risks and factors described from time to time in the documents filed by the company with the securities regulators in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. including in the Annual Information Form under the heading "Business Environment and Risks." The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
CONSOLIDATED STATEMENT OF INCOME
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Three months Year ended
ended Dec. 31 Dec. 31
US$ millions,
except per share amounts 2005 2004(i) 2005 2004(i)
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Total revenues $ 1,740 $ 1,299 $ 5,256 $ 3,899
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Fees earned 106 53 282 199
Revenues less direct
operating costs
Property 461 335 1,210 973
Power generation 128 64 469 268
Timberlands and
infrastructure 15 10 64 26
Specialty funds 11 20 54 48
Investment and other income 8 10 227 188
Disposition gains - - 49 123
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729 492 2,355 1,825
Expenses
Interest 229 154 881 608
Current income taxes 88 46 162 86
Asset management 52 34 184 126
Other operating costs 35 30 103 83
Minority share of net
income before the following 151 112 386 360
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174 116 639 562
Other items
Equity accounted income
from investments 9 62 219 332
Gains on disposition of
Falconbridge - - 1,350 -
Depreciation and amortization (103) (79) (374) (251)
Future income taxes and
other provisions 5 (67) (324) (260)
Minority share of the
foregoing items 66 55 152 172
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Net income $ 151 $ 87 $ 1,662 $ 555
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Net income per common share
Diluted $ 0.52 $ 0.29 $ 6.12 $ 2.02
Basic $ 0.55 $ 0.31 $ 6.27 $ 2.06
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CONSOLIDATED STATEMENT OF CASH FLOW FROM OPERATIONS
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Three months Year ended
ended Dec. 31 Dec. 31
US$ millions 2005 2004(i) 2005 2004(i)
---------------------------------------------------------------------
Income before non-cash items(1) $ 174 $ 116 $ 639 $ 562
Dividend from Canary Wharf 73 - 183 -
Dividends from Falconbridge - 12 24 45
Dividends from Norbord 5 5 62 19
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Cash flow from operations $ 252 $ 133 $ 908 $ 626
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(1) Net operating income less expenses
(i) See accompanying notes on following page
CONSOLIDATED BALANCE SHEET
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December 31 December 31
US$ millions 2005 2004(2)
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Assets
Operating assets
Securities $ 1,802 $ 1,307
Loans and notes receivable 348 900
Property, plant and equipment
Property 11,141 9,358
Power generating 3,568 2,951
Timberlands and infrastructure 1,018 184
Other plant and equipment 316 188
--------------------------------
18,193 14,888
Cash and cash equivalents 951 404
Financial assets 2,171 1,220
Investments 595 1,944
Accounts receivable and other 4,148 1,551
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$ 26,058 $ 20,007
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Liabilities and Shareholders' Equity
Liabilities
Corporate borrowings $ 1,620 $ 1,675
Non-recourse borrowings
Property specific mortgages 8,756 6,045
Other debt of subsidiaries 2,510 2,373
Accounts payable and other liabilities 4,561 2,719
Capital securities(2) 1,598 1,548
Minority interests of others in assets 1,984 1,780
Preferred equity 515 590
Common equity 4,514 3,277
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$ 26,058 $ 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 "Securities" 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. . Brookfield Asset Management Inc. (TSX:BAM) (NYSE:BAM) |
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