TORONTO, February 12, 2004 – Brascan Corporation (TSX: BNN.A, NYSE: BNN) today reported record cash flow from operations of $624 million or $3.21 per share for the year ended December 31, 2003 which represents a 35% increase from the cash flow from operations of $2.38 per share reported in 2002. This strong growth was driven by increased contribution across virtually all of the company's operations.
| |
For the twelve months ended December 31 |
|
For the three months ended December 31 |
| US$ millions |
|
|
|
|
|
| (except per share amounts) |
2003 |
2002 |
|
2003 |
2002 |
| |
|
|
|
|
|
|
|
|
|
| Cash flows from operations |
$ |
624 |
$ |
469 |
|
$ |
224 |
$ |
117 |
| – per share |
$ |
3.21 |
$ |
2.38 |
|
$ |
1.20 |
$ |
0.57 |
| Net income |
$ |
408 |
$ |
83 |
|
$ |
189 |
$ |
(110) |
| – per share |
$ |
1.98 |
$ |
0.21 |
|
$ |
1.00 |
$ |
(0.73) |
For the three months ended December 31, 2003, cash flow from operations increased to $224 million ($1.20 per share) compared with $117 million ($0.57 per share) in 2002. The 2003 cash flow results include $50 million reflecting the net gain after minority interests from the sale of a partial interest in our 245 Park Avenue commercial property during the fourth quarter.
On a net income basis, results improved significantly in the fourth quarter reflecting the growth in operating cash flow, property gains, as well as increased contributions from investments in the resource sector. The 2002 results reflected a one-time charge in the fourth quarter relating to Noranda.
"Our strong performance reflects our focus on driving sustainable cash flows in our operations. We achieved the majority of our financial and operating targets, made progress on a number of initiatives which significantly strengthened our financial position, and laid the groundwork for profitable growth in the future” commented Bruce Flatt, President and CEO of Brascan.
Three for Two Stock Split
On February 11, 2004, the Board of Directors approved a three-for-two stock split of the company's outstanding common shares. The three-for-two stock split will be implemented by way of a stock dividend whereby shareholders will receive one-half of a Brascan common share for each common share held (ie. one additional share for every two shares held). Fractional shares will be paid in cash at the prevailing market price. The stock dividend will be payable on May 31, 2004 to shareholders of record at the close of business on May 1, 2004.
Brascan is undertaking the stock split to ensure the shares remain accessible to individual shareholders and to improve the liquidity of the shares. The split will have no unfavourable tax consequences in Canada or the United States, and will not dilute shareholders' equity.
4% Dividend Increase
On February 11, 2004, the Board of Directors also declared a quarterly common share dividend, increased by 4% from prior periods, to C$0.27 per share, payable May 31, 2004 in Canadian dollars or US equivalent to shareholders of record on May 1, 2004. The dividend will be paid on the shares outstanding prior to the stock dividend.
Information on all of the company's common and preferred share dividends can be found on Brascan's web site under Investor Centre – Stock Information.
Additional Information
The Letter to Shareholders for the year ended December 31, 2003 contains further information on the company's strategy, operations and financial results. This letter is available on the company's web site.
A Supplementary Information Package with additional financial information is also posted on Brascan's web site (under Investor Centre, Financial Reports and Investor Presentations) and should be read in conjunction with this press release. The Supplementary Information Package includes management's estimates of the underlying value of the company's operations.
Brascan Profile
Brascan Corporation is an asset management company. With a focus on real estate and power generation, the company has direct investments of $16 billion and a further $5 billion of assets under management. This includes 55 premier office properties and 45 power generating plants. The company is listed on the New York and Toronto stock exchanges under the symbol BNN and BNN.a, respectively.
For more information, please visit our web site at www.brascancorp.com
or contact:
Katherine C. Vyse
Senior Vice-President
Investor Relations and Communications
Tel: 416-369-8246
e-mail: kvyse@brascancorp.com |
Note: This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “expect”, “anticipate”, “intend”, “estimate” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking 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 statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
