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Partners Value Investments Inc. Announces 2018 Semi-Annual Results

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TORONTO, Aug. 22, 2018 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the "Company") (TSXV:PVF) announced today its financial results for the three months ended June 30, 2018. All amounts are stated in US dollars.

The Company generated net income of $63 million for the three months ended June 30, 2018 compared to net loss of $75 million in the prior year period. The increase in income is mainly driven by the foreign currency gains incurred resulting from an appreciating US dollar, as well as recognition of valuation gains on the change in value of the warrant liability, as opposed to foreign exchange and valuation losses incurred in the prior year period.

       
Consolidated Statements of Operations
       
For the periods ended June 30, 2018
(Thousands, US dollars)
Three months ended   Six months ended
  2018       2017       2018       2017  
Investment income                      
Dividends $ 18,934     $ 28,797     $ 37,678     $ 47,013  
Other investment income   1,995       119       2,759       1,513  
    20,929       28,916       40,437       48,526  
Expenses                      
Operating expenses   (1,808 )     (1,642 )     (3,059 )     (2,760 )
Financing costs   (478 )     (1,007 )     (1,688 )     (1,788 )
Retractable preferred share dividends   (6,704 )     (6,271 )     (13,493 )     (12,629 )
    11,939       19,996       22,197       31,349  
Other items                      
Investment valuation gains through FVTPL1   31,821       2,552       20,178       15,134  
Warrant liability valuation gains (losses) 2   5,039       (81,715 )     56,349       (96,161 )
Amortization of deferred financing costs   (566 )     (495 )     (1,067 )     (968 )
Income taxes   (6,292 )     (3,903 )     (6,780 )     (6,715 )
Income from equity accounted investment     (127 )             79        
Foreign currency (losses) gains   21,638       (10,942 )     48,403       (12,363 )
Net income (loss) $ 63,452     $ (74,507 )   $ 139,359     $ (69,724 )
                               
1  FVTPL denotes fair value through profit and loss
2  Warrant liability valuation gains (losses) relates to the mark to market of the warrants.
                               

Financial Profile and Net Book Value

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 June 30, 2018. 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, except per share amounts)
  June 30, 2018     December 31, 2017
Assets          
Cash and cash equivalents $ 46,428   $ 29,794
Investment in Brookfield Asset Management Inc.1   3,479,914     3,737,431
Other investments carried at fair value   648,282     750,467
Accounts receivable and other assets   8,309     6,443
Equity accounted investment   15,878     13,643
Goodwill   3,728     3,102
  $ 4,202,539   $ 4,540,880
Liabilities and Equity          
Accounts payable and other liabilities $ 33,434   $ 103,096
Preferred shares2   551,997     575,620
Warrant liability   168,527     233,958
Deferred taxes3   429,933     468,040
    1,183,891     1,380,714
Equity          
Common equity   3,018,648     3,160,166
  $ 4,202,539   $ 4,540,880
           
1  The investment in Brookfield Asset Management Inc. consists of 86 million Brookfield shares with a quoted market value of $40.54 per share as at June 30, 2018 (December 31, 2017 – $43.54).
2  Represents $560 million of retractable preferred shares less $8 million of unamortized issue costs as at June 30, 2018 (December 31, 2017 – $585 million less $9 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.
           

For further information, contact Investor Relations at ir@pvii.ca or 647-503-6513.

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.

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