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Partners Value Investments Inc. Announces 2017 Annual Results

TORONTO, March 19, 2018 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the “Company”) announced today its financial results for the year ended December 31, 2017. All amounts are stated in US dollars.

The Company generated net loss of $14 million ($0.19 per common share) for the year ended December 31, 2017 compared to $56 million ($0.76 per common share) in the prior year. The loss is primarily driven by the recognition of our outstanding warrants as a financial liability causing our net income to drop by $81 million. Adjusting for the warrant liability valuation loss, net income for the year was $67 million.

The market price of a Brookfield share increased from $32.96 to $43.54 during the year.

Consolidated Statements of Operations

For the years ended December 31
(Thousands)
2017 2016
Investment income
Dividends$87,666 $61,942
Other investment income 2,142 5,228
89,808 67,170
Expense
Operating expenses (13,418) (15,269)
Financing costs (5,358) (2,116)
Retractable preferred share dividends (27,341) (25,289)
43,691 24,496
Other items
Investment valuation gains (losses) 87,784 72,967
Warrant liability valuation gain (loss)1 (80,908) (141,553)
Amortization of deferred financing costs (2,473) (1,834)
Change in value of fund unit liability (896)
Income taxes (20,059) (22,394)
Income from equity accounted investment 253
Foreign currency gains (losses) (42,347) 13,509
Net loss$(14,059) $(55,705)

  1. Warrant liability valuation loss relates to the mark to market of warrants during 2017.


Financial Profile

The Company’s principal investment is its interest in 86 million Class A Limited Voting Shares (“Brookfield shares”) of Brookfield, representing a 9% fully-diluted interest as at December 31, 2017. In addition, the Company owns a diversified investment portfolio of marketable securities.

The information in the following table has been extracted from the Company’s Statement of Financial Position:

Statement of Financial Position

As at
(Thousands, US dollars)
December 31,
2017
December 31,
2016
Assets
Cash and cash equivalents$29,794 $5,544
Accounts receivable and other assets 6,443 20,881
Investment in Brookfield Asset Management Inc. 1 3,737,431 2,829,156
Other securities
Available for sale investments 288,306 231,277
Marketable securities 462,161 381,457
Equity Accounted Investment 13,643
Goodwill 3,102
$4,540,880 $3,468,315
Liabilities and Equity
Accounts payable and other liabilities$103,096 $119,196
Preferred shares2 575,620 521,155
Warrant liability 233,958 139,526
Deferred taxes3 468,040 340,470
1,380,714 1,120,347
Equity
Common equity 3,160,166 2,347,968
$4,540,880 3,468,315

  1. The investment in Brookfield Asset Management Inc. consists of 86 million Brookfield shares with a quoted market value of $43.54 per share as at December 31, 2017 (December 31, 2016 – $32.96).
  2. Represents $585 million of retractable preferred shares less $9 million of unamortized issue costs as at December 31, 2017 (December 31, 2016 – $529 million less $8 million).
  3. 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.

Chief Executive Officer Appointment
Partners Value Investments Inc. is pleased to announce the appointment of Brian D. Lawson as the Chief Executive Officer of the Company, effective March 20, 2018. Mr. Lawson will be replacing George Myhal who has held the position since 2015.


For further information, contact Investor Relations at ir@pvii.ca or 647-503-6516.


FORWARD-LOOKING INFORMATION

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.

Source:Partners Value Investments Inc.