The following are some worksheets I used in trying to reconcile some BAM items. These worksheets were last updated with data from the June 30, 2007 financials. Please refer to our disclaimer below.
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6 months ended |
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June 30, 2007 |
December 31, 2006 |
December 31, 2005 |
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Attempt to create FCF from BPI |
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Net Income as reported BPI |
$25 |
$106 |
$60 |
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|
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Depreciation |
$74 |
$124 |
$102 |
|
Non-Controlling Interests |
$4 |
$24 |
$16 |
|
Tax and Other |
$67 |
($4) |
($4) |
|
Change In Working Capital |
($27) |
$20 |
$9 |
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Adjusted Cash flow from operations |
$143 |
$270 |
$183 |
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additions to power assets |
($44) |
($382) |
($224) |
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Temporarily Disregard the following: |
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Debt repayments |
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Acquisitions |
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Adjusted free Cash flow from BPI financials |
$99 |
($112) |
($41) |
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Total Operating Cash Flow as reported BAM |
$358 |
$620 |
$469 |
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Less: Interest |
($133) |
($235) |
($215) |
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Less: Current Income Taxes |
($5) |
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Less: Non-Controlling Interests |
($32) |
($48) |
($24) |
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Net Operating Cash Flow as reported BAM |
$188 |
$337 |
$230 |
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Price to Book Value BAM |
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June 30, 2007 |
2006 |
2005 |
2004 |
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Consolidated Assets |
$44,029 |
$40,708 |
$26,058 |
$20,007 |
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Common Equity - Book Value |
$6,337 |
$5,395 |
$4,514 |
$3,277 |
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Common Equity - Market Value |
$24,926 |
$19,947 |
$13,870 |
$9,976 |
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Market / Book Value |
3.93 |
3.70 |
3.07 |
3.04 |
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6 mos ended |
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June 30, 2007 |
F2006 |
% change |
F2005 |
% change |
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Asset Management income and fees |
$130 |
$84 |
33.33% |
$63 |
270.59% |
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Property Service Fees |
$85 |
$155 |
-5.49% |
$164 |
28.13% |
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Investment Fees |
$12 |
$18 |
-5.26% |
$19 |
-17.39% |
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Total |
$227 |
$257 |
4.47% |
$246 |
46.43% |
Typically I like to see interest coverage ratios to be at least 4X, and typically 6X
|
Interest Coverage Ratio |
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BPI |
|
6 months ended |
6 months ended |
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6/30/2007 |
6/30/2006 |
2006 |
2005 |
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Net Income After Taxes |
|
$25 |
$92 |
$106 |
$60 |
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add Taxes |
|
$28 |
$10 |
$8 |
-$17 |
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Net Income Before Taxes |
|
-$3 |
$82 |
$98 |
$77 |
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add: Interest Expense |
|
$137 |
$118 |
$244 |
$228 |
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EBIT |
|
$134 |
$200 |
$342 |
$305 |
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Interest Coverage Ratio |
|
0.98 |
1.69 |
1.40 |
1.34 |
|
Interest Coverage Ratio |
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BAM |
|
6 months ended |
6 months ended |
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6/30/2007 |
6/30/2006 |
2006 |
2005 |
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Net Income After Taxes |
|
$348 |
$314 |
$1,170 |
$1,662 |
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add Taxes |
|
$46 |
$51 |
$142 |
$162 |
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Net Income Before Taxes |
|
$302 |
$263 |
$1,028 |
$1,500 |
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add: Interest Expense |
|
$822 |
$474 |
$1,185 |
$881 |
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EBIT |
|
$1,124 |
$737 |
$2,213 |
$2,381 |
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Interest Coverage Ratio |
|
1.37 |
1.55 |
1.87 |
2.70 |
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Balance Sheet Differences BAM and BPI |
2006 |
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Total Assets Per BAM |
$5,390 |
$4,752 |
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Total Assets Per BPI |
$5,872 |
$5,368 |
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Difference |
($482) |
($616) |
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Total Equity Per BAM |
$1,368 |
$1,197 |
|
Total Equity Per BPI |
$409 |
$356 |
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Difference |
$959 |
$841 |
Leverage Ratio
|
|
2006 |
2005 |
|
Asset To Equity Ratio BAM |
3.94 |
3.97 |
|
Asset To Equity Ratio BPI |
14.36 |
15.08 |
Altman Z score
| "Z- score" | |
| Date calculated | 23-Oct-07 |
| Company | BAM |
| Data used | 2006 AR |
| Data input | |
| Working Capital = Current Assets - Current Liabilities | |
| Current Assets | $9,595 |
| Current Liabilities | $6,497 |
| Working Capital | $3,098 |
| Total Assets | $40,708 |
| Retained Earnings | $6,084 |
| Operating Income | $1,170 |
| Market Cap. + preferred stock | $25,000 |
| Total Debt | $24,393 |
| Sales | $6,897 |
| Z- score Results | 1.20 |
| What are the chances of bankruptcy ? | |
| 1.80 or less Very High | |
| 1.81 to 2.7 High | |
| 2.8 to 2.9 Possible | |
| 3.0 or higher Not Likely |
Disclaimer
If you are a client of ours, and if you
have questions regarding Brookfield Asset Management, Inc., please call our office. If you are not a client
of Redfield, Blonsky & Co. LLC Investment Management Division and are reading
these notes, we urge you to do your own research. We will not be
responsible for any person making an investment decision based on
these notes.
these notes
are a "by-product" of our research. We are not responsible for the
accuracy of
these notes. We are not responsible for errors that may occur in
these notes. Please do not rely on
us to monitor or update this or any other report we may issue. In theory, we
could come across some type of data or idea, which causes us to eliminate our
long or short position of
Brookfield Asset Management, Inc. from our portfolios. We will not notify readers revisions to these notes. We are not responsible to
keep readers of
these notes
updated for changes or material errors or for any reason whatsoever.
We manage portfolios for clients, and those clients are our greatest concern as
it relates to investing. Certain clients of Redfield, Blonsky & Co LLC may not
have
Brookfield Asset Management, Inc. in their portfolios. There could be various reasons for this. Again,
if you would like to discuss
Brookfield Asset Management,
Inc., please contact Ronald R. Redfield, CPA, PFS
(partner in charge of investment management division).
Information
herein is believed to be reliable, but its accuracy and completeness cannot be
guaranteed. Opinions, estimates, and projections constitute our judgment and are
subject to change without notice. This publication is provided to you for
information purposes only and is not intended as an offer or solicitation.
Redfield, Blonsky & Co. LLC and Ronald R Redfield, CPA, PFS, may hold a
position or act as an advisor on any investments mentioned in a report or
discussion.