Partners Value Investments Inc. Announces Q2 2024 Interim Results
2024年8月20日 - 6:30AM
Partners Value Investments Inc. (the “Company”, TSX: PVF.WT,
PVF.PR.V) announced today its financial results for the six months
ended June 30, 2024. All amounts are stated in U.S. dollars.
The Company recorded net income of $94.5 million
for the three months ended June 30, 2024, compared to a net loss of
$120.4 million in the prior year quarter. The increase in net
Income was primarily due to current period remeasurement gains of
$94.6 million associated with the retractable shares, compared to
remeasurement losses of $118.8 million in the prior year quarter.
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
appreciation or depreciation of the Partners Value Investments L.P.
(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 $1.34 compared to an increase of $1.80 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 $28.9 million for the
three months ended June 30, 2024, compared to Adjusted Losses of
$9.2 million in the prior year quarter. Adjusted Earnings were
higher in the current quarter as a result of foreign currency and
investment valuation gains.
As at June 30, 2024, the market prices of a
Brookfield Corporation (the “Corporation”, NYSE/TSX: BN) and
Brookfield Asset Management Ltd. (the “Manager”, NYSE/TSX: BAM)
share were $41.54 and $38.05, respectively. As at August 16, 2024,
the market prices of a BN and BAM share were $46.57 and $40.90,
respectively.
Consolidated Statements of
Operations
(Unaudited)(Thousands, US dollars)For the periods ended June
30 |
Three months ended |
|
Six months ended |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Investment income |
|
|
|
|
|
|
|
|
|
|
|
Dividends |
$ |
26,995 |
|
|
$ |
25,469 |
|
|
$ |
53,680 |
|
|
$ |
47,864 |
|
Other investment income |
|
4,160 |
|
|
|
2,219 |
|
|
|
8,195 |
|
|
|
5,435 |
|
|
|
31,155 |
|
|
|
27,688 |
|
|
|
61,875 |
|
|
|
53,299 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
(735 |
) |
|
|
(433 |
) |
|
|
(2,885 |
) |
|
|
(842 |
) |
Financing costs |
|
(10,191 |
) |
|
|
(8,379 |
) |
|
|
(18,370 |
) |
|
|
(16,713 |
) |
Retractable preferred share dividends |
|
(8,562 |
) |
|
|
(8,848 |
) |
|
|
(16,802 |
) |
|
|
(17,640 |
) |
|
|
11,667 |
|
|
|
10,028 |
|
|
|
23,818 |
|
|
|
18,104 |
|
Other items |
|
|
|
|
|
|
|
|
|
|
|
Investment valuation gains (losses) |
|
443 |
|
|
|
(4,228 |
) |
|
|
1,367 |
|
|
|
(1,986 |
) |
Remeasurement gains (losses) of retractable shares |
|
94,590 |
|
|
|
(118,837 |
) |
|
|
(119,040 |
) |
|
|
107,244 |
|
Warrant liability remeasurement (losses) gains |
|
(21,378 |
) |
|
|
13,692 |
|
|
|
(11,452 |
) |
|
|
24,579 |
|
Amortization of deferred financing costs |
|
(871 |
) |
|
|
(848 |
) |
|
|
(1,755 |
) |
|
|
(1,690 |
) |
Current taxes (expense) recovery |
|
(1,742 |
) |
|
|
(410 |
) |
|
|
6,327 |
|
|
|
(817 |
) |
Deferred taxes recovery (expense) |
|
4,865 |
|
|
|
(3,235 |
) |
|
|
707 |
|
|
|
(4,593 |
) |
Foreign currency gains (losses) |
|
6,880 |
|
|
|
(16,575 |
) |
|
|
19,333 |
|
|
|
(19,154 |
) |
Net income (loss) |
$ |
94,454 |
|
|
$ |
(120,413 |
) |
|
$ |
(80,695 |
) |
|
$ |
121,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial ProfileThe Company’s
principal investments are its interest in 121 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 in the Corporation and a 7%
interest in the Manager as at June 30, 2024. 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
(Unaudited)As at(Thousands, US dollars) |
|
June 30,2024 |
|
|
|
December 31,2023 |
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
112,218 |
|
|
$ |
199,856 |
|
Accounts receivable and other
assets |
|
38,739 |
|
|
|
31,456 |
|
Deferred tax assets |
|
1,185 |
|
|
|
4,309 |
|
Investment in Brookfield
Corporation1 |
|
5,025,128 |
|
|
|
4,853,261 |
|
Investment in Brookfield Asset
Management Ltd.2 |
|
1,172,250 |
|
|
|
1,237,554 |
|
Other investments carried at
fair value |
|
950,302 |
|
|
|
889,398 |
|
|
$ |
7,299,822 |
|
|
$ |
7,215,834 |
|
Liabilities and
equity |
|
|
|
|
|
Accounts payable and other
liabilities |
$ |
23,675 |
|
|
$ |
34,916 |
|
Corporate borrowings |
|
218,798 |
|
|
|
225,789 |
|
Preferred shares3 |
|
701,280 |
|
|
|
757,254 |
|
Retractable common shares |
|
3,838,591 |
|
|
|
3,718,510 |
|
Warrant liability |
|
221,965 |
|
|
|
218,051 |
|
|
|
5,004,309 |
|
|
|
4,954,520 |
|
Equity |
|
|
|
|
|
Accumulated deficit |
|
(3,114,708 |
) |
|
|
(3,034,013 |
) |
Accumulated other
comprehensive income |
|
5,398,241 |
|
|
|
5,283,347 |
|
Non-controlling interest |
|
11,980 |
|
|
|
11,980 |
|
|
$ |
7,299,822 |
|
|
$ |
7,215,834 |
|
|
|
|
|
|
|
|
|
- The investment in Brookfield
Corporation consists of 121 million Corporation shares with a
quoted market value of $41.54 per share as at June 30, 2024
(December 31, 2023 – $40.12).
- The investment in Brookfield Asset
Management Ltd. consists of 31 million Manager shares with a quoted
market value of $38.05 per share as at June 30, 2024 (December 31,
2023 – $40.17).
- Represents $709 million of
retractable preferred shares less $8 million of unamortized issue
costs as at June 30, 2024 (December 31, 2023 – $767 million
less $10 million).
For further information, contact Investor
Relations at ir@pvii.ca.
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.
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; limitations
on the liquidity of our investments; 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;
risks associated with the use of financial leverage; 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.