TORONTO, ONTARIO — (Marketwire) — 08/10/11 — Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM)(EURONEXT: BAMA)
Brookfield Asset Management Inc. today announced its financial results for the quarter ended June 30, 2011. The financial results are based on International Financial Reporting Standards (“IFRS”) unless otherwise noted.
“Performance is strong at virtually all of our operations, and we are taking advantage of numerous opportunities to increase our cash flow by investing in both organic expansion initiatives and disciplined acquisitions,” commented Bruce Flatt, CEO of Brookfield.
Highlights
Basis of Presentation
This news release and accompanying financial statements make reference to cash flow from operations, invested capital and intrinsic value.
Cash flow from operations is defined as net income prior to fair value changes, depreciation and amortization, and future income taxes and includes certain disposition gains that are not otherwise included in net income as determined under IFRS, and after deducting the associated interests of non-controlling shareholders. Brookfield uses cash flow from operations to assess its operating results and the value of its business and believes that many of its shareholders and analysts also find this measure of value to them.
Invested capital represents the capital invested by the company in its operations on a segmented basis, net of the underlying liabilities and non-controlling interests. These balances are derived from the company–s IFRS balance sheets and adjusted to exclude deferred income taxes and to include adjustments to reflect the fair value of assets and liabilities that are carried at historical book values or otherwise not recognized in the company–s IFRS balance sheets. Common equity on this basis is referred to as net tangible asset value.
Intrinsic value includes net tangible asset value, as represented by its invested capital, as well as the value attributed to the company–s asset management franchise. Asset management franchise value represents management–s estimate of the value attributable to the company–s asset management activities that is not otherwise included in net tangible asset value, based on current capital under management, associated fee arrangements, and potential growth.
Cash flow from operations, invested capital and intrinsic value per share are non-IFRS measures which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The company provides additional information on the determination of cash flow from operations, invested capital and intrinsic value and a reconciliation between cash flow from operations and net income attributable to Brookfield shareholders and invested capital and intrinsic value and common equity in the Supplemental Information available at .
Intrinsic Value
The intrinsic value of Brookfield–s common equity was $39.31 per share at June 30, 2011. This includes net tangible asset value of $33.26 per share and $6.05 per share related to the company–s asset management franchise. Please see page 5 of this release for further information on the company–s intrinsic value.
Dividend Declaration
The Board of Directors declared a dividend of US$0.13 per share, payable on November 30, 2011, to shareholders of record as at the close of business on November 1, 2011. The Board also declared all of the regular monthly and quarterly dividends on its preferred shares.
Information on Brookfield Asset Management–s declared share dividends can be found on the company–s web site under Investors/Stock and Dividend Information.
Additional Information
The Letter to Shareholders and the company–s Supplemental Information for the quarter ended June 30, 2011 contain 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.
The attached statements are based primarily on information that has been extracted from our unaudited financial statements for the quarter ended June 30, 2011, which have been prepared using International Financial Reporting Standards. The amounts have not been audited and are not subject to review by Brookfield–s external auditor.
Brookfield Asset Management Inc. is a global alternative asset manager with approximately $150 billion in assets under management. We have over a 100-year history of owning and operating assets with a focus on real estate, infrastructure, power and private equity. We have a range of public and private investment products and services, which leverage our expertise and experience and provide us with a distinct competitive advantage in the markets where we operate. Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA. For more information, please visit our web site at .
Please note that Brookfield–s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR and can also be found in the investor section of our web site at . Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please visit our web site at .
Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words “continue,” “expect,” “intend,” “believe,” derivations thereof and other expressions, including conditional verbs such as “may,” “will,” “could,” “would,” and “should,” are predictions of or indicate future events, trends or prospects or identify forward-looking statements. Forward-looking statements in this news release include statements with respect to: our ability to increase our cash flow organically and through disciplined acquisitions; the fundraising for seven funds seeking total third party commitments of more than $4 billion over 2011 and 2012; our refinancing initiatives; our growth opportunities, including expansion of our existing operations, development activities and potential acquisitions; the spin-off of 30 non-core malls in our U.S. retail operations; and other statements with respect to our beliefs, outlooks, plans, expectations and intentions. Although Brookfield Asset Management believes that its anticipated future results, performance or achievements expressed or implied of such assets 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 as such statements and information 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: economic and financial conditions in the countries in which we do business; the behaviour of financial markets, including fluctuations in interest and exchange rates; availability of equity and debt financing; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; adverse hydrology conditions; regulatory and political factors within the countries in which the company operates; availability of new tenants to fill property vacancies; tenant bankruptcies; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; changes in accounting policies to be adopted under IFRS; and other risks and factors detailed from time to time in the company–s form 40-F filed with the Securities and Exchange Commission as well as other documents filed by the company with the securities regulators in Canada and the United States, including the company–s most recent Management–s Discussion and Analysis of Financial Results under the heading “Business Environment and Risks.”
We caution that the foregoing factors that may affect future results are not exhaustive. When relying on our forward-looking statements to make decisions with respect to Brookfield Asset Management, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, as a result of new information, future events or otherwise.
Contacts:
Media:
SVP, Communications & Media
Andrew Willis
(416) 369-8236
(416) 363-2856 (FAX)
Investors:
SVP, Investor Relations
Katherine Vyse
(416) 369-8246
(416) 363-2856 (FAX)