Partners Value Investments Inc. Announces Q1 2023 Interim Results
25 May 2023 - 7:00AM
Partners Value Investments Inc. (the “Company”, TSX: PVF.WT)
announced today its financial results for the three months ended
March 31, 2023. All amounts are stated in US dollars.
The Company generated net income of $242 million
for the three months ended March 31, 2023 compared to $31 million
in the prior year period. Net income was higher in the current
period primarily due to significant remeasurement gains associated
with the retractable shares of $226 million, compared to
remeasurement losses of $17 million in the prior year period. The
Company’s retractable common shares are classified as liabilities
due to their cash retraction feature. The remeasurement gains or
losses in a given period are driven by the respective depreciation
or appreciation of the Partnership unit price as the exchangeable
shares are recognized at fair value based on the quoted price of
the Partnership’s Equity LP units. During the quarter, the
Partnership unit price decreased by $3.40 compared to a $0.66
increase in the prior year quarter.
Excluding retractable share and warrant
liability remeasurement gains and dividends paid on retractable
shares, Adjusted Earnings for the Company was $11 million for the
three months ended March 31, 2023, compared to $9 million in the
prior year period. Adjusted Earnings was higher in the current
period as a result of higher other investment income driven by
increased interest earned on loan assets and cash on deposit and
lower tax expenses offset by lower investment valuation gains.
As at March 31, 2023, the market prices of a
Brookfield Corporation (the “Corporation”, NYSE/TSX: BN) and
Brookfield Asset Management Ltd. (the “Manager”, NYSE/TSX: BAM)
share were $32.59 and $32.72, respectively. As at May 23, 2023, the
market prices of a BN and BAM share were $31.41 and $31.63,
respectively.
Consolidated Statements of
Operations
For the
three months ended March 31, Unaudited(Thousands, US dollars) |
|
|
2023 |
|
|
2022 |
|
Investment income |
|
|
|
|
|
Dividends |
$ |
22,395 |
|
$ |
21,933 |
|
Other investment income |
|
3,216 |
|
|
896 |
|
|
|
25,611 |
|
|
22,829 |
|
Expenses |
|
|
|
|
|
Operating expenses |
|
(409) |
|
|
(615) |
|
Financing costs |
|
(8,334) |
|
|
(6,978) |
|
Retractable preferred share dividends |
|
(8,792) |
|
|
(7,612) |
|
|
|
8,076 |
|
|
7,624 |
|
Other items |
|
|
|
|
|
Investment valuation gains |
|
2,242 |
|
|
16,683 |
|
Retractable share remeasurement gains (losses) |
|
226,081 |
|
|
(16,676) |
|
Warrant liability remeasurement gains |
|
10,887 |
|
|
43,548 |
|
Amortization of deferred financing costs |
|
(842) |
|
|
(766) |
|
Current tax expense |
|
(407 ) |
|
|
(20,290) |
|
Deferred tax (expense) recovery |
|
(1,358) |
|
|
11,544 |
|
Foreign currency losses |
|
(2,579) |
|
|
(10,218) |
|
Net income |
$ |
242,100 |
|
$ |
31,449 |
|
|
|
|
|
|
|
|
Financial Profile
The Company’s principal investments are its
interest in 134 million Class A Limited Voting Shares of the
Corporation and approximately 31 million Class A Limited Voting
Shares of the Manager. This represents approximately an 8% interest
as at March 31, 2023 in both entities. In addition, the Company
owns a diversified investment portfolio of marketable securities
and private fund interests.
The information in the following table has been
extracted from the Company’s Consolidated Statements of Financial
Position:
Consolidated Statements of Financial
Position
As at(Thousands, US dollars) |
|
|
|
(Unaudited)March 31, 2023 |
|
|
December 31, 2022 |
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
114,896 |
|
$ |
185,711 |
Accounts receivable and other
assets |
|
|
|
93,708 |
|
|
47,260 |
Deferred tax asset |
|
|
|
5,387 |
|
|
1,604 |
Investment in Brookfield
Corporation1 |
|
|
|
4,358,030 |
|
|
4,149,188 |
Investment in Brookfield Asset
Management Ltd.2 |
|
|
|
998,872 |
|
|
934,183 |
Other investments carried at
fair value |
|
|
|
657,735 |
|
|
606,223 |
|
|
|
$ |
6,228,628 |
|
$ |
5,924,169 |
Liabilities and
Equity |
|
|
|
|
|
|
|
Accounts payable and other
liabilities |
|
|
$ |
67,610 |
|
$ |
36,861 |
Corporate borrowings |
|
|
|
221,225 |
|
|
220,711 |
Preferred shares3 |
|
|
|
754,982 |
|
|
752,727 |
Retractable common shares |
|
|
|
3,220,958 |
|
|
3,447,021 |
Warrant liability |
|
|
|
353,596 |
|
|
363,707 |
|
|
|
|
4,618,371 |
|
|
4,821,027 |
Equity |
|
|
|
|
|
|
|
Accumulated deficit |
|
|
|
(2,456,563 ) |
|
|
(2,698,663) |
Accumulated other
comprehensive income |
|
|
|
4,066,820 |
|
|
3,801,805 |
|
|
|
$ |
6,228,628 |
|
$ |
5,924,169 |
- The investment in Brookfield
Corporation consists of 134 million Corporation shares with a
quoted market value of $32.59 per share as at March 31, 2023
(December 31, 2022 – $31.46).
- The investment in Brookfield Asset
Management Ltd. consists of 31 million Manager shares with a quoted
market value of $32.72 per share as at March 31, 2023 (December 31,
2022 – $28.67).
- Represents $682 million of
retractable preferred shares less $12 million of unamortized issue
costs as at March 31, 2023 (December 31, 2022 – $681 million
less $13 million) and $84 million of three series of preferred
shares of a subsidiary of the Company (December 31, 2022 ‐ $84
million).
For further information, contact Investor
Relations at ir@pvii.ca or 416-643-7621.
Note: This news release contains
“forward-looking information” within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of applicable Canadian securities 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 its
anticipated future results, performance or achievements expressed
or implied 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, many of which are beyond its
control, 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 and information include, but are not
limited to: the financial performance of Brookfield Corporation,
the impact or unanticipated impact of general economic, political
and market factors; the behavior of financial markets, including
fluctuations in interest and foreign exchanges rates; global equity
and capital markets and the availability of equity and debt
financing and refinancing within these markets; strategic actions
including dispositions; changes in accounting policies and methods
used to report financial condition (including uncertainties
associated with critical accounting assumptions and estimates); the
effect of applying future accounting changes; business competition;
operational and reputational risks; technological change; changes
in government regulation and legislation; changes in tax laws,
catastrophic events, 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 documents filed with the securities
regulators in Canada.
The Company cautions that the foregoing list of
important factors that may affect future results is not exhaustive.
When relying on the Company’s forward-looking statements and
information, 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 and
information, whether written or oral, that may be as a result of
new information, future events or otherwise.
Brookfield Asset Managem... (TSX:BAM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Brookfield Asset Managem... (TSX:BAM)
Historical Stock Chart
From Sep 2023 to Sep 2024