TORONTO, ONTARIO -- (Marketwired) -- 11/29/13 -- Partners Value Fund Inc. (TSX VENTURE: PVF) ("Partners Value Fund" the "Company"), formerly BAM Investments Corp., today announced its financial results for the third quarter September 30, 2013.
Partners Value Fund recorded net income of $3.2 million ($0.04 per common share) for the three months ended September 30, 2013 compared to $4.8 million ($0.07 per common share) in the prior year period of 2012.
Consolidated Statements of Operations
Three months ended Nine months ended
September 30 September 30
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Thousands, except per share
amounts 2013 2012 2013 2012
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Investment income
Dividends and interest $ 11,604 $ 8,829 $ 31,824 $ 25,803
Cash portion of equity
accounted income(1) 1,220 1,220 3,660 3,660
Other investment income
(loss) (1,639) - (530) -
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11,185 10,049 34,954 29,463
Less:
Operating expenses 133 101 771 550
Retractable preferred
share dividends 7,493 6,494 20,614 19,482
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Income from operations(2) 3,559 3,454 13,569 9,431
Adjust for other items:
Non-cash portion of
equity accounted
income(1) 932 2,219 7,415 7,226
Amortization of deferred
financing costs (437) (355) (1,232) (1,066)
Income tax expense (903) (490) (2,678) (1,560)
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Net income $ 3,151 $ 4,828 $ 17,074 $ 14,031
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Net income per common share $ 0.04 $ 0.07 $ 0.23 $ 0.19
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Notes:
(1) Equity accounted income is bifurcated into the Company's proportionate
share of cash distributions and non-cash changes in value to better
reflect the nature of investment income generated by the investment
portfolio.
(2) Income from operations is a non-IFRS measure used by the Company to
better reflect the operating performance during the period. The measure
is defined as investment income less expenses, as shown on the
Consolidated Statements of Operations, and then adjusted for cash
distributions received from the Company's equity accounted investment.
Financial Profile and Net Book Value
The Company's principal investment is a direct and indirect interest in 56.2 million Class A Limited Voting Shares ("Class A Shares") of Brookfield Asset Management Inc. ("Brookfield"), representing 7.6 Brookfield Class A Shares for every 10 common shares of Partners Value Fund.
The net book value of the Company's common shares as at September 30, 2013, based on the market price of Brookfield's Class A Shares of $38.54, was $23.33 per share. The information in the following table shows the changes in net book value for the three and six months ended September 30, 2013.
For the period ended
September 30, 2013 Three months ended Nine months ended
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Thousands, except per share
amounts Total Per Share Total Per Share
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Net book value, beginning
of period(1) $ 1,695,456 $ 22.85 $ 1,534,746 $ 20.68
Net income(2) 3,151 0.04 17,074 0.23
Other comprehensive
income(2) 32,688 0.44 179,475 2.42
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Net book value, end of
period(1,3) $1,731,295 $ 23.33 $ 1,731,295 $ 23.33
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Notes:
(1) Net book value per common share is a non-IFRS measure.
(2) The weighted average number of common shares outstanding during the
nine months ended September 30, 2013 was 74,206,510 (September 30, 2012
- 74,206,510) on a fully diluted basis.
(3) As of September 30, 2013 there were 74,206,510 voting and non-voting
common shares of the Company issued and outstanding on a fully diluted
basis.
The information in the following table has been extracted from the Company's statement of financial position as at September 30, 2013:
Statement of Financial Position
(unaudited)
Thousands, except per share amounts Net Book Value
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Assets
Investment in Brookfield Asset Management Inc.(1) $ 2,166,959
Other securities 330,019
Cash and cash equivalents 4,373
Accounts receivable and other 1,902
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$ 2,503,253
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Liabilities and Shareholders' Equity
Accounts payable and other $ 7,670
Retractable preferred shares(2) 537,144
Deferred taxes(3) 227,144
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771,958
Shareholders' equity
Common equity 1,731,295
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$ 2,503,253
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Net book value per common share, pre-tax(4,5) $ 26.39
Net book value per common share, after tax(4,5) $ 23.33
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Notes:
(1) The investment in Brookfield Asset Management Inc. consists of 56.2
million Class A Shares at a bid price of $38.54 as at September 30,
2013.
(2) Represents $542.3 million retractable preferred shares less $5.2
million unamortized issue costs.
(3) The deferred tax liability represents the potential future income tax
liability of the Company recorded for accounting purposes based on the
difference between the carrying values of the Company's assets and
liabilities and their respective tax values, as well as giving effect
to estimated capital and non-capital losses as at the date of this
statement.
(4) As at September 30, 2013, there were 74,206,510 (December 31, 2012 -
74,206,510) voting and non-voting common shares of the Company issued
and outstanding on a fully diluted basis.
(5) Net book value per common share is a non-IFRS measure.
Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. The words "potential" and "estimated" 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 information. Forward-looking information in this news release includes statements with regard to the Company's potential future income taxes.
Although the Company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking information and 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 information and statements.
Factors that could cause actual results to differ materially from those contemplated or implied by the forward-looking information and statements include: the behavior of financial markets, including fluctuations in interest and exchange rates, availability of equity and debt financing and other risks and factors detailed from time to time in the Company's other documents filed with the Canadian securities regulators.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking information or statements, whether written or oral, that may be as a result of new information, future events or otherwise. Reference should be made to the company's most recent Annual Information Form for a description of the major risk factors.
Contacts:
Partners Value Fund Inc.
Edward C. Kress
President
(416) 956-5140
