TORONTO, ONTARIO -- (Marketwire) -- 04/29/11 -- Brookfield Investments Corporation (TSX VENTURE: BRN.PR.A) reported a net loss of $24 million for the year ended December 31, 2010 compared with a net loss of $130 million for 2009. The current year's net results includes $41 million of non-cash foreign exchange losses, compared with $13 million of foreign exchange losses in the prior year. The prior year also includes a one-time $67 million loss on the permanent impairment of the company's investment in Fraser Papers Inc.
Net loss for the three months ended December 31, 2010 was $17 million, compared to a net loss of $73 million for the same period in 2009.
The company's investment in Brookfield Europe contributed income of $13 million in 2010 (2009 - $9 million). Panelboard investments, held through Norbord Inc., contributed a net income of $2 million for 2010, compared to a loss of $8 million in 2009. The investment in Fraser Papers Inc. was written off in late 2009, and therefore had no impact to the 2010 results, compared to a net loss of $123 million in 2009, which includes a $67 million provision.
Dividend and interest income for 2010 was $33 million, compared to $29 million in 2009. Dividend payments, classified as interest expense totalled $29 million in 2010, compared to $30 million in 2009.
Other loss for 2009 of $11 million was recorded due mainly to the revaluation of the company's Norbord exchangeable debentures, which were settled in the second quarter of 2009.
The Company's Board of Directors has declared a quarterly dividend of C$0.29375 per share on its Senior Preferred Shares, Series A payable on June 30, 2011 to shareholders of record on June 20, 2011.
Brookfield Investments Corporation holds investments in the forest products and property sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield group. The common shares of Brookfield Investments Corporation are wholly owned by Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets.
---------------------------------------------------------------------------- Consolidated Balance Sheets ---------------------------------------------------------------------------- (unaudited) December 31 December 31 US$ millions 2010 2009 ---------------------------------------------------------------------------- Assets Securities $ 266 $ 262 Investments Brookfield Properties Corporation 973 672 Brookfield Europe L.P. 127 119 Norbord Inc. 82 80 ---------------------------------------------------------------------------- $ 1,448 $ 1,133 ---------------------------------------------------------------------------- Liabilities Deposits payable $ 35 $ 5 Accounts payable 11 9 Retractable preferred shares 708 700 Shareholders' equity 694 419 ---------------------------------------------------------------------------- $ 1,448 $ 1,133 ---------------------------------------------------------------------------- Consolidated Statements of Operations --------------------------------------------------------------------------- Three months Twelve months ended December ended December (unaudited) 31 31 ----------------------------------- US$ millions 2010 2009 2010 2009 --------------------------------------------------------------------------- Income Equity accounted income from Brookfield Europe L.P. $ 1 $ 4 $ 13 $ 9 Equity accounted income (loss) from Norbord Inc. (1) (1) 2 (8) Equity accounted loss from Fraser Papers Inc. - (11) - (56) Dividend and interest income 8 9 33 29 Foreign exchange loss (18) (1) (41) (13) Other loss - - - (11) --------------------------------------------------------------------------- (10) - 7 (50) Expenses Interest 7 8 29 30 Provision for impairment - 67 - 67 --------------------------------------------------------------------------- 7 75 29 97 --------------------------------------------------------------------------- Net loss before income taxes (17) (75) (22) (147) Income taxes (expense) recovery - 2 (2) 17 --------------------------------------------------------------------------- Net loss $ (17) $ (73) $ (24) $ (130) --------------------------------------------------------------------------- Net loss per common share $ (0.34) $ (1.59) $ (0.52) $ (2.82) --------------------------------------------------------------------------- Consolidated Statements of Comprehensive Income (Loss) ---------------------------------------------------------------------------- Three months Twelve months ended ended (unaudited) December 31 December 31 ----------------------------------- US$ millions 2010 2009 2010 2009 ---------------------------------------------------------------------------- Net loss $ (17) $ (73) $ (24) $ (130) Other comprehensive income (loss) Foreign currency translation (1) 1 (5) 9 Available-for-sale securities 113 50 305 186 Equity accounted other comprehensive income (loss) 1 1 (1) 3 ---------------------------------------------------------------------------- 113 52 299 198 ---------------------------------------------------------------------------- Comprehensive income (loss) $ 96 $ (21) $ 275 $ 68 ---------------------------------------------------------------------------- --------------------------------------------------------------------------- Consolidated Statements of Accumulated Other Comprehensive Income (Loss) --------------------------------------------------------------------------- Three months ended Twelve months ended (unaudited) December 31 December 31 ------------------------------------------- US$ millions 2010 2009 2010 2009 ---------------------------------------------------------------------------- Balance, beginning of period $ (18) $ (256) $ (204) $ (402) Other comprehensive income 113 52 299 198 ---------------------------------------------------------------------------- Balance, end of period $ 95 $ (204) $ 95 $ (204) ---------------------------------------------------------------------------- Consolidated Statements of Deficit ---------------------------------------------------------------------------- Three months ended Twelve months ended (unaudited) December 31 December 31 ------------------------------------------- US$ millions 2010 2009 2010 2009 ---------------------------------------------------------------------------- Deficit, beginning of period $ (428) $ (348) $ (421) $ (291) Net loss (17) (73) (24) (130) ---------------------------------------------------------------------------- Deficit, end of period $ (445) $ (421) $ (445) $ (421) ---------------------------------------------------------------------------- Consolidated Statements of Cash Flows --------------------------------------------------------------------------- Three months ended Twelve months ended (unaudited) December 31 December 31 ------------------------------------------- US$ millions 2010 2009 2010 2009 ---------------------------------------------------------------------------- Cash flow from (used in) operating activities Net loss $ (17) $ (73) $ (24) $ (130) Adjusted for the following: Equity accounted (income) losses - 8 (15) 55 Provision for impairment - 67 - 67 Future income tax provisions - (2) 2 (17) Net change in non-cash items 18 1 41 24 ---------------------------------------------------------------------------- 1 1 4 (1) ---------------------------------------------------------------------------- Cash flow used in investing activities Investment in Brookfield Properties - - - (350) ---------------------------------------------------------------------------- - - - (350) ---------------------------------------------------------------------------- Cash and deposits receivable (payable) Increase / (Decrease) prior to foreign currency revaluations 1 1 4 (351) Impact of foreign exchange (13) 1 (34) 5 Balance, beginning of period (23) (7) (5) 341 ---------------------------------------------------------------------------- Balance, end of period $ (35) $ (5) $ (35) $ (5) ----------------------------------------------------------------------------
Contacts:
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.