TORONTO, April 30, 2008 – Brookfield Asset Management Inc.
(TSX/NYSE: BAM; EURONEXT: BAMA) today announced
its results for the first quarter ended March 31, 2008.
Cash Flow From Operations
Cash flow from operations for the first quarter
totalled $443 million ($0.72 per share).
This compares to $406 million ($0.67 per share) in the 2007 quarter
excluding a security disposition gain of $165 million or $571 million
($0.93 per share) including the gain. Excluding this item, operating
cash flows increased by 7% quarter-over-quarter on a per share
basis as substantial growth in our power generation and commercial
office platforms more than offset a lower contribution from our
residential operations and an increased amount of capital deployed
in development activities that will not contribute meaningfully
to reported cash flows until completed.
|
|
Three months
ended March 31 |
|
US$ millions(except
per share amounts) |
2008 |
2007 |
|
|
|
|
 |
| Cash flow from operations |
$ |
443 |
$ |
571 |
|
|
– per share
(1) |
|
0.72 |
|
0.93 |
|
| Excluding security disposition
gain |
$ |
443 |
$ |
406 |
|
|
– per share (1) |
|
0.72 |
|
0.67 |
|
| (1) Adjusted to reflect
three-for-two stock split on June 1,
2007 |
|
|
|
|
|
|
“During the quarter we launched a number of new initiatives
to expand both our operating platforms
and our asset management activities,” said Bruce Flatt,
Managing Partner of Brookfield Asset Management. “We
are also focussing on organically growing
our operations, integrating recent initiatives and advancing
a number of key projects. The underlying fundamentals of our
businesses remain strong, with a few small exceptions and, we
are confident of our ability to execute our business strategy
and to continue to meet our long-term cash flow growth objectives.”
Net Income
Net income was $197 million in the first
quarter of 2008 compared with $195 million
on the same basis last year.
Net income, in the current quarter also
reflected additional depreciation and amortization
recorded on assets purchased since the
first quarter of 2007. In the company’s view, these assets should generate increasing
cash flows over an extended period of time due to their high
quality, long life and value appreciation potential. As a result,
we believe that the depreciation and amortization being recorded
is far greater than the expenditures required to maintain the
assets.
|
|
Three
months ended March 31 |
|
US$ millions(except
per share amounts) |
2008 |
2007 |
|
|
|
|
|
| Net income |
|
|
|
|
|
|
– total |
$ |
197 |
$ |
195 |
|
|
– per share (1) |
$ |
0.31 |
$ |
0.31 |
|
| (1) Adjusted
to reflect three-for-two stock split
on June 1, 2007 |
|
|
|
|
|
Dividend Declaration
The Board of Directors declared a dividend
of US$0.13 per Class A Common Share, payable
on August 31, 2008, to shareholders of record as at the close
of business on August 1, 2008. 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
Investor Centre/Stock and Dividend Information.
Additional Information
The Letter to Shareholders and the company’s Supplemental
Financial Information for the three months ended March 31, 2008
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
website.
Basis of Presentation of Financial Results
This press release
and accompanying financial statements make
reference to cash flow from operations on a total and per
share basis. Cash flow from operations is defined as net income
excluding depreciation and amortization, future income taxes
and other items as described as such in the consolidated statement
of income, and including dividends and disposition gains that
are not otherwise included in net income. 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. The company provides the components of cash flow
from operations and a full reconciliation between cash flow
from operations and net income with the financial information
accompanying this press release. Cash flow from operations
is a non-GAAP measure which does not have any standard meaning
prescribed by GAAP and therefore may not be comparable to
similar measures presented by other companies.
* * * * *
Brookfield Asset
Management Inc., focused on property, power and infrastructure
assets, has approximately $95 billion of
assets under management and is co-listed
on the New York and Toronto Stock Exchanges
under the symbol BAM and on Euronext under
the symbol BAMA. For more information,
please visit our web site at www.brookfield.com.
For more information, please visit our web site at www.brookfield.com or contact:
Contact:
Denis Couture
SVP, Investor Relations and Corporate
and International Affairs
Brookfield Asset Management
Tel.: (416) 956-5189
Fax.: (416) 363-2856
dcouture@brookfield.com
|
Note: This press release
contains forward-looking information within
the meaning of Canadian provincial securities
laws and other “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 harbor” provisions
of the United States Private Securities
Litigation Reform Act of 1995 and in any
applicable Canadian securities regulations.
The words, “expand”, “growing”, “integrating”, “advancing”, “execute”, “continue”, “should,” “believe”,
deviations thereof, 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 statements. Forward looking
statements in this press release include
statements in regards to organically growing
our operations, integrating recent initiatives,
advancing key projects, our ability to
execute our business strategy and to continue
to meet our long-term cash flow growth
objectives, the ability of assets purchased
since the first quarter of 2007 to generate
increasing cash flows over an extended
period of time and the value appreciation
potential. Although Brookfield Asset Management
believes that the company’s 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 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
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; market demand for an
infrastructure company, which is unknown;
ability to compete for new acquisitions
in the competitive infrastructure space;
availability of equity and debt financing;
strategic actions including dispositions;
the ability to effectively integrate acquisitions
into existing operations and the ability
to attain expected benefits; the company’s
continued ability to attract institutional
partners to its Specialty Investment Funds;
adverse hydrology conditions; regulatory
and political factors within the countries
in which the company operates; acts of
God, such as earthquakes and hurricanes;
the possible impact of international conflicts
and other developments including terrorist
acts; 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
included in the Annual Information Form
under the heading “Business Environment
and Risks”.
We caution that the
foregoing list of important factors that
may affect future results is 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,
that may be as a result of new information,
future events or otherwise.
