Brookfield Investments Corporation Announces Third Quarter Financial Results TORONTO, ONTARIO--(Marketwire - 11/16/09) - Brookfield Investments Corporation (TSX:BRN.PR.A - News) today reported net loss for the three months ended September 30, 2009 of $82 million, compared with income of $2 million for the same period last year. The results reflect $33 million of non-cash charges from the company's forest product investments and $49 million of foreign exchange revaluation losses. The 2008 results include $20 million of revaluation gains attributable to exchangeable debentures. Panelboard investments, held through Norbord Inc., contributed a net loss of $1 million during the third quarter of 2009, compared with a net loss of $6 million for the same period last year as a result of increased oriented strandboard prices in North America, lower operating costs and improved product mix. Forest product investments, held through Fraser Papers Inc., contributed a net loss of $32 million for the quarter, compared with $10 million for the same quarter last year. The decrease reflects an impairment charge related to the ongoing restructuring of its operations and the closure of one of its pulp mills. Dividend and interest income for the third quarter was $9 million, compared with $8 million for the same period in 2008. The company's Board of Directors declared the regular quarterly dividend of C$0.29375 per share on its Senior Preferred Shares, Series A payable on December 31, 2009 to shareholders of record on December 20, 2009. Brookfield Investments Corporation currently holds investments in the forest products and property sectors, as well as a portfolio of preferred shares issued by companies in the Brookfield Asset Management group. The company's common shares are wholly owned by Brookfield Asset Management Inc., an asset management company focused on property, power and infrastructure assets. Sachin Shah, Vice President and Chief Financial Officer, will be available at 416-363-9491 to answer any questions on the company's financial results.
CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited) Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
US$ millions, except per share amounts 2009 2008 2009 2008
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Income
Equity loss from Norbord Inc. $ (1) $ (6) $ (7) $ (34)
Equity loss from Fraser Papers Inc. (32) (10) (45) (28)
Equity income from Brookfield Europe L.P. - - 5 -
Dividend and interest income 9 8 20 59
Foreign exchange gains (losses) (49) 3 (12) 5
Other income - 20 (11) 101
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(73) 15 (50) 103
Expenses
Interest 7 9 22 29
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Net (loss) income before income taxes (80) 6 (72) 74
Income tax expense (recovery) 2 4 (15) 14
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Net income (loss) $ (82) $ 2 $ (57) $ 60
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Net income (loss) per common share $(1.77) $ 0.06 $ (1.23) $ 1.31
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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(unaudited) Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
US$ millions 2009 2008 2009 2008
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Net income (loss) $ (82) $ 2 $ (57) $ 60
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Other comprehensive income (loss)
Foreign currency translation, net of tax 1 (32) 8 (29)
Available-for-sale securities 130 (39) 136 (70)
Equity pick-up from subsidiaries 1 (1) 2 (2)
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132 (72) 146 (101)
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Comprehensive income (loss) $ 50 $ (70) $ 89 $ (41)
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CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS
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(unaudited) Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
US$ millions 2009 2008 2009 2008
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Balance, beginning of period $ (388) $ (149) $ (402) $ (120)
Other comprehensive income (loss) 132 (72) 146 (101)
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Balance, end of period $ (256) $ (221) $ (256) $ (221)
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CONSOLIDATED STATEMENTS OF DEFICIT
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(unaudited) Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
US$ millions 2009 2008 2009 2008
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Deficit, beginning of period $ (266) $ (288) $ (291) $ (347)
Change in accounting policy - - - 1
Net income (loss) for the period (82) 2 (57) 60
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Deficit, end of period $ (348) $ (286) $ (348) $ (286)
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CONSOLIDATED BALANCE SHEETS
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September 30 December 31
US$ millions 2009 2008
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(unaudited)
Assets
Deposits receivable $ - $ 341
Securities 260 255
Investments
Brookfield Properties
Corporation 624 143
Fraser Papers Inc. 78 124
Norbord Inc. 82 103
Brookfield Europe L.P. 112 96
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$ 1,156 $ 1,062
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Liabilities
Deposits payable $ 7 $ -
Accounts payable 11 30
Retractable preferred equity
Senior 140 123
Junior 558 558
Common equity 440 351
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$ 1,156 $ 1,062
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(unaudited) Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
US$ millions 2009 2008 2009 2008
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Operating activities
Net income (loss) $ (82) $ 2 $ (57) $ 60
Adjusted for the following items
Dividends received from equity accounted
investments - 5 - 17
Reversal of equity accounted earnings 33 16 47 62
Future income tax provisions 2 5 (15) 14
Net change in non-cash working capital and
other 49 (23) 23 (106)
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2 5 (2) 47
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Investing activities
Investment in Brookfield Properties
Corporation (350) - (350) -
Investment in Fraser Papers Inc. - - - (29)
Investment in Norbord Inc. - (5) - (17)
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(350) (5) (350) (46)
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Cash and deposits receivable (payable)
Increase (Decrease) (348) - (352) 1
Impact of foreign exchange (38) (28) 4 (21)
Balance, beginning of period 379 238 341 230
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Balance, end of period $ (7) $ 210 $ (7) $ 210
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Contact:
Source: Brookfield Investments Corporation
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