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.
| Attempt to create FCF from BPI | 6 months ended June 30, 2007 |
December 31, 2006 | December 31, 2005 |
|---|---|---|---|
| Net Income as reported BPI | $25 | $106 | $60 |
| Depreciation | $74 | $124 | $102 |
| Non-Controlling Interests | $4 | $24 | $16 |
| Tax and Other | $67 | ($4) | ($4) |
| Change In Working Capital | ($27) | $20 | $9 |
| Adjusted Cash flow from operations | $143 | $270 | $183 |
| additions to power assets | ($44) | ($382) | ($224) |
| Temporarily Disregard the following: | |||
| Debt repayments | |||
| Acquisitions | |||
| Adjusted free Cash flow from BPI financials | $99 | ($112) | ($41) |
| Total Operating Cash Flow as reported BAM | $358 | $620 | $469 |
| Less: Interest | ($133) | ($235) | ($215) |
| Less: Current Income Taxes | ($5) | ||
| Less: Non-Controlling Interests | ($32) | ($48) | ($24) |
| Net Operating Cash Flow as reported BAM | $188 | $337 | $230 |
| Price to Book Value BAM | June 30, 2007 | 2006 | 2005 | 2004 |
| Consolidated Assets | $44,029 | $40,708 | $26,058 | $20,007 |
| Common Equity – Book Value | $6,337 | $5,395 | $4,514 | $3,277 |
| Common Equity – Market Value | $24,926 | $19,947 | $13,870 | $9,976 |
| Market / Book Value | 3.93 | 3.70 | 3.07 | 3.04 |
| 6 mos ended June 30, 2007 |
F2006 | % change | F2005 | % change | |
| Asset Management income and fees | $130 | $84 | 33.33% | $63 | 270.59% |
| Property Service Fees | $85 | $155 | -5.49% | $164 | 28.13% |
| Investment Fees | $12 | $18 | -5.26% | $19 | -17.39% |
| 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 BPI |
6 months ended 6/30/2007 |
6 months ended 6/30/2006 |
2006 | 2005 |
| Net Income After Taxes | $25 | $92 | $106 | $60 |
| add Taxes | $28 | $10 | $8 | -$17 |
| Net Income Before Taxes | -$3 | $82 | $98 | $77 |
| add: Interest Expense | $137 | $118 | $244 | $228 |
| EBIT | $134 | $200 | $342 | $305 |
| Interest Coverage Ratio | 0.98 | 1.69 | 1.40 | 1.34 |
| Interest Coverage Ratio BAM | 6 months ended 6/30/2007 |
6 months ended 6/30/2006 |
2006 | 2005 |
|---|---|---|---|---|
| Net Income After Taxes | $348 | $314 | $1,170 | $1,662 |
| add Taxes | $46 | $51 | $142 | $162 |
| Net Income Before Taxes | $302 | $263 | $1,028 | $1,500 |
| add: Interest Expense | $822 | $474 | $1,185 | $881 |
| EBIT | $1,124 | $737 | $2,213 | $2,381 |
| Interest Coverage Ratio | 1.37 | 1.55 | 1.87 | 2.70 |
| Balance Sheet Differences BAM and BPI | 2006 | 2005 |
| Total Assets Per BAM | $5,390 | $4,752 |
| Total Assets Per BPI | $5,872 | $5,368 |
| Difference | ($482) | ($616) |
| Total Equity Per BAM | $1,368 | $1,197 |
| Total Equity Per BPI | $409 | $356 |
| 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 $9,535
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.