Partners Value Investments Inc. Announces 2021 Annual Results

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TORONTO, April 07, 2022 (GLOBE NEWSWIRE) — Partners Value Investments Inc. (the “Company”, TSX: PVF.WT) today announced its financial results for the fiscal year ended December 31, 2021. All amounts are expressed in US dollars. .

The Company recorded adjusted earnings of $52 million for the year ended December 31, 2021, compared to $53 million a year earlier. Adjusted earnings lower for the current year due to a foreign exchange loss of $20 million, compared to a gain of $7 million for the prior year, and higher dividends paid on shares preferred shares, which were partially offset by an increase in dividend income. The increase in dividend income is attributable to a one-time special in-kind dividend from Brookfield, valued at $46 million.

The Company generated a net loss of $1.0 billion for the year ended December 31, 2021, compared to a net profit of $91 million the previous year. The decrease in net earnings was primarily due to revaluation losses of $402 million related to the Company’s retractable common shares and $396 million of dividends paid on retractable shares, which are treated as interest expense because these shares are classified as liabilities due to their exchangeability. equivalent to one partnership unit. Revaluation losses result from appreciation in the value of the limited partnership unit.

The market price of a share of Brookfield Asset Management Inc. (“Brookfield”) was $60.38 per share as of December 31, 2021 (2020 – $41.27).

Consolidated Statements of Income

For the years ended December 31(In thousands of US dollars) 2021 2020
investment income
Dividends $ 128,784 $ 84,935
Other investment income 5,361 3,305
134 145 88,240
Operating Expenses (2,748 ) (942 )
Funding costs (404,711 ) (1,979 )
Dividends on redeemable preferred shares (33,628 ) (25,618 )
(306,942 ) 59,701
Other items
Loss of value of investments (5,739 ) (2,394 )
Revaluation (losses) of exchangeable shares (402,266 )
Gain (loss) on valuation of warrant liability (280,474 ) 38,018
Amortization of deferred financing costs (4,070 ) (2,575 )
Current tax expense 7,816 (1,649 )
Deferred tax charge (15,024 ) (6,877 )
Foreign exchange gain (loss) (20,075 ) 6,574
Net income (loss) $ (1,026,774 ) $ 90,798

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 December 31, 2021. 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

As of December 31(In thousands of US dollars, except per share amounts) 2021 2020
Cash and cash equivalents $ 80,697 $ 316,709
Accounts receivable and other assets 77,501 47,700
Investment in Brookfield Asset Management Inc. 1 7,869,681 5,313,865
Other investments recognized at fair value 666,033 586 574
$ 8,693,912 $ 6,264,848
Liabilities and equity
Accounts payable and other liabilities $ 7,693 $ 15,604
Corporate borrowings 236,513 117,286
Preferred shares2 682 613 694 148
Redeemable common shares 3,932,110
Mandate Liability 611 010 332,083
Deferred taxes3 23,430 654 217
5,493,369 1,813,338
Common Equity 4,451,509
Preferred shares
Retained earnings (4,549,339 )
Accumulated other comprehensive income 7,749,882 1
$ 8,693,912 $ 6,264,848
  1. The investment in Brookfield Asset Management Inc. consists of approximately 130 million shares of Brookfield with a market value of $60.38 per share as of December 31, 2021 (December 31, 2020 – $41.27).
  2. Represents $611 million of retractable preferred shares less $13 million of unamortized issue costs as of December 31, 2021 ($706 million less $13 million as of December 31, 2019) and $84 million of three new series of preferred shares of a subsidiary of the Company.
  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 [email protected] or 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 foregoing 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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Source: Partners Value Investments Inc.

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