Partners Value Investments Inc. Announces Q2 2022 Interim

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TORONTO, Aug. 23, 2022 (GLOBE NEWSWIRE) — Partners Value Investments Inc. (the “Company”, TSX: PVF.WT) today announced its financial results for the three months ended June 30, 2022. All amounts are shown. in US Dollars.

The Company generated net income of $489.3 million for the quarter ended June 30, 2022, compared to a net loss of $575.9 million in the prior year quarter. The increase in net earnings was primarily due to a revaluation gain of $386.2 million in the quarter related to the company’s redeemable common stock, compared to revaluation losses of $479.1 million in the quarter. the previous year. These shares are classified as liabilities due to their exchangeable feature equivalent to a limited partnership unit. Therefore, revaluation gains or losses in a given period are determined by the respective depreciation or appreciation in the price of the limited partnership unit.

Excluding revaluation losses and warrant liability valuations, adjusted profit was $38.4 million for the three months ended June 30, 2022, compared to adjusted profit of $28.4 million for the quarter. of the previous year. Adjusted earnings are higher in the current year period due to foreign exchange gains and tax recoveries, partially offset by lower investment income from dividends. Dividend income decreased during the reporting period due to the receipt of shares from Brookfield Asset Management Reinsurance Partners Ltd. worth $46 million as an in-kind dividend from Brookfield Asset Management during the prior year period.

The market price of a share of Brookfield Asset Management Inc. (“Brookfield”) was $44.47 per share as of June 30, 2022 (December 2021 – $60.38). The market price of a Brookfield share was $51.02 on August 22, 2022.

Consolidated Statements of Income

(Unaudited)
(In thousands of US dollars, except per share amounts)
Three months completed Semester completed
For periods ended June 30 2022 2021 2022 2021
investment income
Dividends $ 21,892 $ 66 178 $ 43,825 $ 87,470
Other investment income 923 1,035 1,819 3,044
22,815 67,213 45,644 90,514
Expenses
Operating Expenses (452) (735) (1,067) (1,100)
Funding costs (9,383) (2,966) (16,361) (4,250)
Dividends on redeemable preferred shares (8,929) (7,678) (16,541) (19,218)
4,051 55,834 11,675 65,946
Other items
Investment capital gains (losses) (3,441) 709 13,242 5,993
Revaluation gains (losses) of redeemable shares 386 280 (479,094) 369,604 (479,094)
Gain on valuation (losses) of warrant liability 71,435 (125,162) 114,983 (111,220)
Amortization of deferred financing costs (886) (1,333) (1,652) (2,537)
Recovery of current taxes (expense) 115 265 (20,175) 2,245
Recovery of deferred taxes (expense) 3,779 (5,544) 15,323 (8,171)
Exchange gains (losses) 27,923 (21,512) 17,705 (37,446)
Net profit (loss) $ 489,256 $ (575,837) $ 520 705 $ (564,284)

Financial Profile

The Company’s principal investment is its ownership interest in 130 million Class A Limited Voting Shares (“Brookfield Shares”) of Brookfield. This represents an 8% interest as of June 30, 2022. In addition, the Company holds a diversified investment portfolio of marketable securities.

The information contained in the following table is taken from the company’s statement of financial position:

Statement of financial position

Like a
(In thousands of US dollars)
To note (Unaudited)
June 30th,
2022
The 31st of December,
2021
Assets
Cash and cash equivalents $ 237,881 $ 80,697
Accounts receivable and other assets 44,711 77,501
Investment in Brookfield Asset Management Inc.1 5,796,037 7,869,681
Other investments recognized at fair value 625 903 666,033
$ 6,704,532 $ 8,693,912
Liabilities and equity
Accounts payable and other liabilities $ 25,042 $ 7,693
Corporate borrowings 232 178 236,513
Preferred shares2 786,041 682 613
Redeemable common shares 3,572,490 3,932,110
Mandate Liability 486 118 611 010
Deferred taxes3 961 23,430
5,102,830 5,493,369
Equity
Deficit (4,028,634) (4,549,339)
Accumulated other comprehensive income 5,630,336 7,749,882
$ 6,704,532 $ 8,693,912
  1. The investment in Brookfield Asset Management Inc. consists of approximately 130 million shares of Brookfield with a market value of $44.47 per share as of June 30, 2022 (December 31, 2021 – $60.38).
  2. Represents $717 million of retractable preferred shares less $15 million of unamortized issue costs as of June 30, 2022 (December 31, 2021 – $612 million less $13 million) and $84 million of three series of preferred shares of a subsidiary of the Company (December 31, 2021 – $84 million).
  3. The deferred tax liability represents the Company’s potential future tax liability recognized 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 taking into account estimate of capital and other losses.

For more information, contact Investor Relations at 416-956-5141.

Note: This press 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 or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking information. The forward-looking information contained in this press release includes statements regarding 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 on reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking statements and information because they involve unknown events and 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 any anticipated future results, performance or achievements 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 the forward-looking statements and information include, but are not limited to: the financial performance of Brookfield Asset Management Inc., the impact or unforeseen impact of economic events, political and market factors; the behavior of financial markets, including interest rate and currency exchange rate fluctuations; global equity and capital markets and the availability of equity and debt financing and refinancing in such markets; strategic actions, including provisions; 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 regulations and laws; changes in tax laws; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including acts of terrorism; and other risks and factors detailed from time to time in the Company’s documents filed with the securities authorities in Canada.

The Company cautions that the above list of important factors that could 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 as well as 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 result from new information, future events or otherwise.

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