Brookfield Asset Management Announces Record Cash Flows From Operations for 2007
biz.yahoo.com
Friday February 8, 8:32 am ET
TORONTO, ONTARIO--(MARKET WIRE)--Feb 8, 2008 -- Brookfield Asset Management Inc. (Toronto:BAM.TO)(NYSE:BAM) -
Investors, analysts and other interested parties can access Brookfield Asset Management's 2007 Results as well as the Shareholders' Letter and Supplemental Financial Information on Brookfield's web site under the Investor Centre/Financial Reports section at www.brookfield.com.
The 2007 Results conference call can be accessed via webcast on February 8, 2008 at 11 a.m. EST at www.brookfield.com or via teleconference at 1-800-319-4610 toll free in North America. For overseas calls please dial 604-638-5340, at approximately 10:50 a.m. EST. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 or 604-638-9010 (Password 2811).
Brookfield Asset Management Inc. (Toronto:BAM.TO - News)(NYSE:BAM) today announced its results for the fourth quarter and year ended December 31, 2007.
Cash Flow From Operations
Cash flow from operations for the full year was a record $1.9 billion, compared with $1.8 billion reported in 2006. Total cash flow from operations prior to realization gains was $1.7 billion compared with $1.2 billion on the same basis in 2006, representing a 46% improvement.
Cash flow from operations for the fourth quarter totalled $575 million ($0.94 per share), compared with $859 million ($1.42 per share) reported in the corresponding quarter of the previous year. The difference was due to a lower level of realization gains in the fourth quarter of 2007. Excluding realization gains, cash flow from operations for the fourth quarter increased by 15%.
Three months ended Years ended
December 31 December 31
US$ millions (except per ------------------ -----------------
share amounts) 2007 2006 2007 2006
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Cash flow from operations
- total $ 575 $ 859 $ 1,907 $ 1,801
- per share(1) $ 0.94 $ 1.42 $ 3.11 $ 2.95
- prior to realization gains $ 407 $ 354 $ 1,736 $ 1,191
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(1) Adjusted to reflect three-for-two stock split.
"We reported the highest operating cash flows in our history, reflecting significant progress in expanding our assets under management," said Bruce Flatt, Managing Partner of Brookfield Asset Management. "We also recorded strong investment returns across most of our operating platforms, particularly in our commercial property and specialty funds operations, despite a volatile operating environment over the past six months. The underlying fundamentals of our businesses remain strong with a few small exceptions and, we continue to actively build each of our operating platforms on a global basis."
Net Income
Net income on a comparable basis, and excluding realization gains was $941 million in 2007 compared with $624 million on the same basis last year. Total net income was $787 million in 2007, compared to $1,170 million in 2006. Net income in 2007 reflects a lower level of realization gains than recorded in 2006. Net income also does not include $331 million of gains on the sale of exchangeable debentures during the year that were recorded in opening retained earnings as opposed to net income due to a prescribed change in accounting policy.
Net income was also impacted by depreciation and amortization recorded on assets purchased since the latter portion of 2006. In the company's view, these assets will generate increasing cash flows over an extended period of time due to their high quality, long life and value appreciation potential. As a result, the depreciation and amortization being recorded is far greater than the expenditures required to maintain the assets.
For the fourth quarter, net income including all items was $346 million compared to $611 million in the fourth quarter of 2006. On a comparable basis, net income prior to realization gains for the fourth quarter was $178 million compared with $129 million in the fourth quarter of 2006. The increase in operating cash flow noted above was offset by depreciation on newly acquired assets.
Three months ended Years ended
December 31 December 31
US$ millions (except per ------------------ -----------------
share amounts) 2007 2006 2007 2006
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Net income
- total $ 346 $ 611 $ 787 $ 1,170
- per share(1) $ 0.56 $ 1.01 $ 1.24 $ 1.90
- prior to realization gains
and accounting change $ 178 $ 129 $ 941 $ 624
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(1) Adjusted to reflect three-for-two stock split. |
