Partners Value Fund Inc. Announces 2014 First Quarter Results
24 May 2014 - 6:31AM
Marketwired
Partners Value Fund Inc. Announces 2014 First Quarter Results
TORONTO, ONTARIO--(Marketwired - May 23, 2014) - Partners Value
Fund Inc. ("Partners Value Fund" or the "Company")
(TSX-VENTURE:PVF) today announced its financial results for the
first quarter March 31, 2014.
Partners Value Fund
recorded net income of $15 million ($0.20 per common share) for the
three months ended March 31, 2014 compared to $9 million ($0.12 per
common share) in the prior year period. The increase in net income
was primarily the result of increased dividend income associated
with the Company's investment in Brookfield Asset Management Inc.
and other securities investment portfolios.
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
Three months ended March 31 |
|
(thousands) |
|
2014 |
|
|
2013 |
|
Investment income |
|
|
|
|
|
|
|
Dividends and interest |
$ |
15,416 |
|
$ |
9,221 |
|
|
Other investment income (loss) |
|
490 |
|
|
2,445 |
|
|
|
15,906 |
|
|
11,666 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses |
|
491 |
|
|
253 |
|
|
Retractable preferred share dividends |
|
6,989 |
|
|
6,494 |
|
|
|
8,426 |
|
|
4,919 |
|
Other items: |
|
|
|
|
|
|
|
Equity accounted income |
|
8,013 |
|
|
5,358 |
|
|
Amortization of deferred financing costs |
|
(447 |
) |
|
(372 |
) |
|
Income tax expense |
|
(1,281 |
) |
|
(1,138 |
) |
Net income |
$ |
14,711 |
|
$ |
8,767 |
|
Financial Profile
and Net Book Value
The Company's
principal investment is its interest in 56 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 March 31, 2014, was equal to
$28.09 per share compared to $21.51 in the prior period. The
increase in net book value of $2.73 per share was mainly due to the
increase in the market price of Brookfield's Class A Shares held,
which was $44.88 per share as of March 31, 2014. The information in
the following table shows the changes in net book value for the
three months ended March 31:
|
|
2014 |
|
2013 |
(Thousands, except per share amounts) |
|
Total |
|
Per Share |
|
Total |
|
Per Share |
Net
book value, beginning of period(1) |
$ |
1,881,555 |
$ |
25.36 |
$ |
1,534,746 |
$ |
20.68 |
Net
income(2) |
|
14,711 |
|
0.20 |
|
8,767 |
|
0.12 |
Other comprehensive income(2) |
|
188,213 |
|
2.53 |
|
52,719 |
|
0.71 |
Net book value, end of period(1,3) |
$ |
2,084,479 |
$ |
28.09 |
$ |
1,596,232 |
$ |
21.51 |
Notes:
- Net book value per common share is a non‐IFRS
measure.
- The weighted average number of common shares outstanding
during the three months ended March 31, 2014 was 74,206,510 (March
31, 2013 - 74,206,510).
- As of March 31, 201,4 there were 74,206,510 (March 31, 2013
- 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:
Statement of Financial Position |
|
|
|
|
|
(Thousands, except per share amounts) |
|
March 31, 2014 |
|
December 31, 2013 |
Assets |
|
|
|
|
|
Investment in Brookfield Asset Management Inc.(1) |
$ |
2,523,433 |
$ |
2,310,897 |
|
Other
securities |
|
365,849 |
|
354,180 |
|
Cash
and cash equivalents |
|
12,902 |
|
5,102 |
|
Accounts receivable and other |
|
3,062 |
|
2,083 |
|
$ |
2,905,246 |
$ |
2,672,262 |
Liabilities and Shareholders' Equity |
|
|
|
|
|
Accounts payable and other |
$ |
5,218 |
$ |
5,196 |
|
Retractable preferred shares (2) |
|
537,774 |
|
537,531 |
|
Deferred taxes (3) |
|
277,775 |
|
247,980 |
|
|
820,767 |
|
790,707 |
Shareholders' equity |
|
|
|
|
|
Common equity |
|
2,084,479 |
|
1,881,555 |
|
$ |
2,905,246 |
$ |
2,672,262 |
Net book value per common share (4, 5) |
$ |
28.09 |
$ |
25.36 |
Notes:
- The investment in Brookfield Asset Management Inc. consists
of 56 million Class A Shares at a bid price of $44.88 as at March
31, 2014 (December 31, 2013 ‐ $41.10).
- Represents $542 million retractable preferred shares less
$4 million of unamortized issue costs.
- 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.
- As at March 31, 2014, there were 74,206,510
(December 31, 2014 - 74,206,510) voting and non‐voting common
shares of the Company issued and outstanding on a fully diluted
basis.
- 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 "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 Asset Management Inc., 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.
Partners Value Fund Inc.Edward C. KressPresident(416)
956-5140
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