Toronto, May 11, 2006 – BNN Split Corp. announced today that income available for distribution for the six months ended March 31, 2006, was $6.0 million, compared to $6.2 million during the same period last year. Investment income decreased from $6.4 million for the first six months of fiscal 2005 to $6.1 million in 2006 due principally to the strengthening of the Canadian dollar compared to the US dollar . Operating expenses in the quarter were $0.1 million consistent with the first quarter of 2005. For the quarter ended March 31, 2006, the company paid dividends of $2.9 million and $nil to its Preferred Class A and Capital shareholders respectively, compared to $2.9 million and $0.1 million for the same period in 2005.
The Board of Directors declared quarterly dividends of $0.390625 and $0.309375 per Preferred share Class A and Class AA \Series 1, respectively, payable on June 7, 2006 to shareholders of record on May 22, 2006.
The net asset value per unit, consisting of one Preferred share and one Capital share, was $118.86 based on a Brookfield share price of $42.85 as at March 31, 2006. The net asset value per Preferred share is posted monthly on www.bamsplit.com.
STATEMENTS OF INCOME AND DEFICIT
|
Three months ended March 31
|
Nine months ended March 31
|
(unaudited)
$thousands |
2006
|
2005
|
2006 |
2005 |
Revenue
|
|
|
|
|
Investment
|
$3,021
|
$3,080 |
$6,140 |
$6,363 |
Expenses
|
|
|
|
|
Operating
|
77
|
44
|
134
|
124
|
Income available for distribution
|
2,944
|
3,036
|
6,006
|
6,239
|
Dividends paid on Senior Preferred shares
|
(2,944)
|
(2,944)
|
(5,886) |
(5,886)
|
Income available for distribution on Capital and Class A shares
|
-
|
92
|
120 |
353 |
Dividends paid on Capital shares
|
-
|
(92) |
(120) |
(353) |
| |
-
|
- |
- |
-
|
Deficit, beginning of period
|
(7,774) |
(7,774) |
(7,774) |
(7,774) |
Deficit, end of period
|
$(7,774) |
$(7,774)
|
$(7,774)
|
$(7,774)
|
Dividends per Senior Preferred share - Class A
|
$0.3906 |
$0.3906
|
$0.7813
|
$0.7813
|
Dividends per Senior Preferred share - Class AA, Series 1
|
$0.3094
|
$0.3094
|
$0.6188
|
$0.6188
|
BAM Split Corp. owns a portfolio consisting of 26,481,300 Class A Limited Voting shares of Brookfield Asset Management Inc. in order to generate quarterly fixed cumulative preferential dividends for the holders of the company's Preferred shares and to enable the holders of the company's Capital shares to participate in any capital appreciation of Brookfield Shares. Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over $50 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM.
Sachin G. Shah, Chief Financial Officer, will be available at (416) 363-0061 to answer any questions on the company's financial results.
This news release contains forward-looking statements concerning the company's business and operations. The company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.