Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN)
(“Brookfield Business Partners”) announced today financial results
for the quarter ended September 30, 2019.
“We are pleased with the strong operating
performance we achieved during the quarter and the progress on our
growth initiatives,” said Cyrus Madon, CEO of Brookfield Business
Partners. “We announced the acquisition of a controlling interest
in Genworth Canada and an investment in BrandSafway. We also
reached an agreement to acquire the Teekay Offshore units which we
did not already own and announced the sale of North American
Palladium, furthering our capital recycling initiatives.”
|
Three months ended September 30 |
|
Nine months ended September 30 |
US$ millions (except per unit amount), unaudited |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net income (loss) attributable to unitholders1 |
$ |
24 |
|
|
$ |
93 |
|
|
$ |
193 |
|
|
$ |
286 |
|
Net income (loss) per limited
partnership unit2,3 |
$ |
0.16 |
|
|
$ |
─ |
|
|
$ |
1.41 |
|
|
$ |
0.06 |
|
Company EBITDA1,4 |
$ |
368 |
|
|
$ |
231 |
|
|
$ |
871 |
|
|
$ |
604 |
|
Company FFO1,5 |
$ |
219 |
|
|
$ |
170 |
|
|
$ |
859 |
|
|
$ |
485 |
|
Company FFO per unit2 |
$ |
1.46 |
|
|
$ |
1.31 |
|
|
$ |
6.31 |
|
|
$ |
3.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brookfield Business Partners generated Company
EBITDA of $368 million compared to $231 million in 2018 reflecting
contributions from recent acquisitions in our business services and
industrials segments, and growth from our existing businesses.
Company FFO for the three months ended September 30, 2019 was
$219 million ($1.46 per unit) compared to $170 million ($1.31
per unit) in 2018. For the third quarter 2019, net income
attributable to unitholders was $24 million ($0.16 per unit)
compared to $93 million ($nil per unit) in 2018 which included the
benefit of a non-cash gain recognized last year and lower
depreciation and amortization expenses.
Operational Update
The following table presents Company EBITDA by
segment:
|
Three months ended September 30 |
|
Nine months ended September 30 |
US$ millions, unaudited |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Business Services |
$ |
64 |
|
|
$ |
32 |
|
|
$ |
170 |
|
|
$ |
98 |
|
Infrastructure Services |
|
139 |
|
|
|
107 |
|
|
|
362 |
|
|
|
185 |
|
Industrials |
|
189 |
|
|
|
112 |
|
|
|
404 |
|
|
|
370 |
|
Corporate and Other |
|
(24 |
) |
|
|
(20 |
) |
|
|
(65 |
) |
|
|
(49 |
) |
Company EBITDA1,4 |
$ |
368 |
|
|
$ |
231 |
|
|
$ |
871 |
|
|
$ |
604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our business services segment
generated Company EBITDA of $64 million, compared to $32 million in
the same period last year. Our construction services and road fuel
distribution operations reported improved performance. Results also
benefited from incremental contributions from Healthscope and Ouro
Verde, which we acquired this year. 2018 results included the
contribution from our global relocation services and facilities
management businesses, which were sold earlier this year.
Our infrastructure services
segment generated Company EBITDA of $139 million during the
quarter, compared to $107 million in the same period last year.
Westinghouse reported strong performance for the quarter supported
by the fall outage season at customer plants and strong results in
new plant operations in the U.S. and China. Contribution from
Teekay Offshore increased primarily as a result of our increased
ownership position compared to the prior year period.
Our industrials segment
generated Company EBITDA of $189 million during the quarter,
compared to $112 million in the same period last year. North
American Palladium reported strong performance and results included
incremental contribution from Clarios which we acquired at the end
of April 2019, while results were partially offset by lower
contribution from GrafTech. Prior year results included the
contribution from our Australian oil and gas operation which was
sold in November 2018.
The following table presents Company FFO by
segment:
|
Three months ended September 30 |
|
Nine months ended September 30 |
US$ millions, unaudited |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Business Services |
$ |
31 |
|
|
$ |
26 |
|
|
$ |
405 |
|
|
$ |
109 |
|
Infrastructure Services |
|
95 |
|
|
|
76 |
|
|
|
251 |
|
|
|
124 |
|
Industrials |
|
103 |
|
|
|
84 |
|
|
|
230 |
|
|
|
297 |
|
Corporate and Other |
|
(10 |
) |
|
|
(16 |
) |
|
|
(27 |
) |
|
|
(45 |
) |
Company FFO1,5 |
$ |
219 |
|
|
$ |
170 |
|
|
$ |
859 |
|
|
$ |
485 |
|
Gain (loss) on acquisitions/dispositions, net |
|
6 |
|
|
|
(1 |
) |
|
|
303 |
|
|
|
56 |
|
Company
FFO, excluding gain (loss) on acquisitions/dispositions1,5 |
$ |
213 |
|
|
$ |
171 |
|
|
$ |
556 |
|
|
$ |
429 |
|
Company
FFO, excluding gain (loss) on acquisitions/dispositions per
unit2 |
$ |
1.41 |
|
|
$ |
1.32 |
|
|
$ |
4.09 |
|
|
$ |
3.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company FFO for the three months ended September
30, 2019 was $219 million compared to $170 million in 2018. The
increase in Company FFO was a result of incremental contributions
from recent investments, and improved performance of certain
businesses within our operating segments, offset by businesses sold
in the last year.
Strategic Initiatives
- Genworth MI Canada (“Genworth Canada”)In
August 2019, together with institutional partners, we reached a
definitive agreement to acquire an approximate 57% controlling
interest in Genworth Canada for approximately $1.8 billion (up
to $700 million of equity to be funded by Brookfield Business
Partners, subject to syndication to institutional partners).
Genworth Canada is the largest private sector residential mortgage
insurer in Canada, providing mortgage default insurance to Canadian
residential mortgage lenders, making homeownership more accessible
to first-time homebuyers. We expect to close this transaction by
early 2020.
- BrandSafwayIn September 2019, together with
institutional partners, we reached a definitive agreement to
acquire 45% of BrandSafway, a leading provider of infrastructure
services to industrial and commercial facilities for approximately
$1.3 billion of equity (Brookfield Business Partners' share is
expected to be $400 million). We expect to close this transaction
in the first quarter 2020.
- Teekay OffshoreIn October 2019, together with
institutional partners, we entered into an agreement to acquire all
of the outstanding publicly held common units representing 27% of
the limited partner interests in Teekay Offshore for an aggregate
investment of up to approximately $170 million (up to $75 million
to be funded by Brookfield Business Partners). As an alternative to
the cash consideration offer, minority unitholders have the option
to receive one newly designated unlisted common unit of Teekay
Offshore for each listed common unit held. The transaction is
expected to close in the fourth quarter of 2019.
- North American Palladium (“NAP”)In October
2019, we signed an agreement to sell NAP, our pure-play palladium
producer, for approximately $570 million. Brookfield Business
Partners’ share of the proceeds is expected to be approximately
$130 million, after taxes. The sale is expected to close in the
fourth quarter of 2019.
Distribution
The Board of Directors has declared a quarterly
distribution in the amount of $0.0625 per unit, payable on December
31, 2019 to unitholders of record as at the close of business on
November 29, 2019.
Additional Information
The Board has reviewed and approved this news
release, including the summarized unaudited consolidated financial
statements contained herein.
Brookfield Business Partners’ Letter to
Unitholders and the Supplemental Information are available at
https://bbu.brookfield.com/reports-and-filings.
Notes:
- Attributable to limited partnership unitholders, general
partnership unitholders, special limited partnership unitholders
and redemption-exchange unitholders.
- Average number of partnership units outstanding on a fully
diluted time weighted average basis, assuming the exchange of
redemption exchange units held by Brookfield Asset Management for
limited partnership units, for the three and nine months ended
September 30, 2019 was 150.4 million and 136.1 million,
respectively (2018: 129.3 million).
- Income (loss) attributed to limited partnership units on a
fully diluted basis is reduced by incentive distributions declared
to special limited partnership unitholders during the period based
on the volume-weighted average increase in unit price of the
partnership’s unit over an incentive threshold. A reconciliation of
net income per unit is available on page 12 of this release.
- Company EBITDA is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as Company
FFO excluding the impact of realized disposition gains (losses),
interest income (expense), current income taxes, the impact of
realized disposition gains (losses), current income taxes and
interest income (expense) related to equity accounted investments,
and other items. When determining Company EBITDA, we include our
proportionate share of Company EBITDA of equity accounted
investments. A reconciliation of net income to Company EBITDA is
available on pages 8-11 of this release.
- Company FFO is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as net
income excluding the impact of depreciation and amortization,
deferred income taxes, breakage and transaction costs, non-cash
gains or losses as appropriate and other items. When determining
Company FFO, we include our proportionate share of Company FFO of
equity accounted investments. A reconciliation of net income to
Company FFO is available on pages 8-11 of this release.
Brookfield Business Partners is a business
services and industrials company focused on owning and operating
high-quality businesses that benefit from barriers to entry and/or
low production costs.
Brookfield Business Partners is the flagship
listed business services and industrials company of Brookfield
Asset Management, a leading global alternative asset manager with
more than US$500 billion of assets under management. More
information is available at www.brookfield.com.
Brookfield Business Partners is listed on the
New York and Toronto stock exchanges. For more information, please
visit our website at https://bbu.brookfield.com or contact:
Media:Claire Holland Tel: (416) 369-8236Email:
claire.holland@brookfield.com |
Investors:Alan Fleming Tel: (416) 645-2736Email:
alan.fleming@brookfield.com |
|
|
Conference Call and 2019 Third Quarter
Earnings Webcast Details
Investors, analysts and other interested parties
can access Brookfield Business Partners’ 2019 third quarter results
as well as the Letter to Unitholders and Supplemental Information
on our website under the Reports & Filings section at
https://bbu.brookfield.com
The conference call can be accessed via webcast
on November 7, 2019 at 11:00 a.m. Eastern Time at
https://bbu.brookfield.com or via teleconference at +1 (866)
688-9431 toll free in the U.S. and Canada. For overseas calls
please dial +1 (409) 216-0818, at approximately 10:50 a.m. Eastern
Time. The Conference ID is 2294144. A recording of the conference
call will be available until November 13, 2019 by dialing +1 (855)
859-2056 toll-free in the U.S. and Canada or +1 (404) 537-3406 for
overseas calls (Conference ID 2294144). A replay of the webcast
will be available at https://bbu.brookfield.com.
Cautionary Statement Regarding
Forward-looking Statements and Information
Note: This news release contains
“forward-looking information” within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, include statements regarding the
operations, business, financial condition, expected financial
results, performance, prospects, opportunities, priorities,
targets, goals, ongoing objectives, strategies and outlook of
Brookfield Business Partners, as well as the outlook for North
American and international economies for the current fiscal year
and subsequent periods, and include words such as “expects,”
“anticipates,” “plans,” “believes,” “estimates,” “seeks,”
“intends,” “targets,” “projects,” “forecasts” or negative versions
thereof and other similar expressions, or future or conditional
verbs such as “may,” “will,” “should,” “would” and “could.”
Although we believe that our 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 our control, which may
cause the actual results, performance or achievements of Brookfield
Business Partners 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 include, but are not limited to: the
impact or unanticipated impact of general economic, political and
market factors in the countries in which we do business; the
behavior of financial markets, including fluctuations in interest
and foreign exchange rates; global equity and capital markets and
the availability of equity and debt financing and refinancing
within these markets; strategic actions including dispositions; the
ability to complete and effectively integrate acquisitions into
existing operations and the ability to attain expected benefits;
changes in accounting policies and methods used to report financial
condition (including uncertainties associated with critical
accounting assumptions and estimates); the ability to appropriately
manage human capital; the effect of applying future accounting
changes; business competition; operational and reputational risks;
technological change; changes in government regulation and
legislation within the countries in which we operate; governmental
investigations; litigation; changes in tax laws; ability to collect
amounts owed; catastrophic events, such as earthquakes and
hurricanes; the possible impact of international conflicts and
other developments including terrorist acts and cyber terrorism;
and other risks and factors detailed from time to time in our
documents filed with the securities regulators in Canada and the
United States.
We caution that the foregoing list of important
factors that may affect future results is not exhaustive. When
relying on our forward-looking statements, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law,
Brookfield Business Partners undertakes no obligation to publicly
update or revise any forward-looking statements or information,
whether written or oral, that may be as a result of new
information, future events or otherwise.
Cautionary Statement Regarding the Use
of Non-IFRS Measures
This news release contains references to
Non-IFRS Measures. When determining Company FFO and Company EBITDA,
we include our unitholders’ proportionate share of Company FFO and
Company EBITDA for equity accounted investments. Company FFO and
Company EBITDA are not generally accepted accounting measures under
IFRS and therefore may differ from definitions used by other
entities. We believe these metrics are useful supplemental measures
that may assist investors in assessing the financial performance of
Brookfield Business Partners and its subsidiaries. However, Company
FFO and Company EBITDA should not be considered in isolation from,
or as substitutes for, analysis of our financial statements
prepared in accordance with IFRS.
References to Brookfield Business Partners are
to Brookfield Business Partners L.P. together with its
subsidiaries, controlled affiliates and operating entities.
Brookfield Business Partners’ results include publicly held limited
partnership units, redemption-exchange units, general partnership
units and special limited partnership units. More detailed
information on certain references made in this news release will be
available in our Management’s Discussion and Analysis of Financial
Condition and Results of Operations for the third quarter ended
September 30, 2019.
|
Brookfield Business Partners L.P.
Consolidated Statements of Financial Position |
|
|
|
|
As of |
US$ millions, unaudited |
|
Sep. 30, 2019 |
|
Dec. 31, 2018 |
|
|
|
|
|
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
3,018 |
$ |
1,949 |
Financial assets |
|
1,658 |
|
1,369 |
Accounts and other receivable,
net |
|
6,017 |
|
5,160 |
Inventory and other
assets |
|
4,795 |
|
3,075 |
Assets held for sale |
|
63 |
|
63 |
Property, plant and
equipment |
|
14,124 |
|
6,947 |
Deferred income tax
assets |
|
557 |
|
280 |
Intangible assets |
|
11,252 |
|
5,523 |
Equity accounted
investments |
|
1,246 |
|
541 |
Goodwill |
|
5,118 |
|
2,411 |
|
$ |
47,848 |
$ |
27,318 |
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
Liabilities |
|
|
|
|
Corporate borrowings |
$ |
nil |
$ |
nil |
Accounts payable and
other |
|
14,712 |
|
9,082 |
Liabilities associated with
assets held for sale |
|
10 |
|
9 |
Non-recourse borrowings in
subsidiaries of Brookfield Business Partners |
|
21,965 |
|
10,866 |
Deferred income tax liabilities |
|
1,737 |
|
867 |
|
$ |
38,424 |
$ |
20,824 |
|
|
|
|
|
Equity |
|
|
|
|
Limited partners |
|
2,151 |
|
1,548 |
Non-controlling interests
attributable to: |
|
|
|
|
Redemption-Exchange Units, Preferred Shares and Special Limited
Partnership Units held by Brookfield Asset Management Inc. |
|
1,703 |
|
1,415 |
Interest of others in operating subsidiaries |
|
5,570 |
|
3,531 |
|
|
9,424 |
|
6,494 |
|
$ |
47,848 |
$ |
27,318 |
|
|
|
|
|
|
Brookfield
Business Partners L.P.Consolidated Statements of
Operating Results |
|
|
|
|
|
Three months endedSeptember
30 |
|
Nine months endedSeptember
30 |
US$ millions, unaudited |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
11,794 |
|
$ |
9,990 |
|
$ |
31,712 |
|
$ |
26,959 |
|
Direct operating costs |
|
(10,389 |
) |
|
(9,080 |
) |
|
(28,358 |
) |
|
(24,929 |
) |
General and administrative
expenses |
|
(215 |
) |
|
(174 |
) |
|
(604 |
) |
|
(434 |
) |
Depreciation and amortization
expense |
|
(534 |
) |
|
(251 |
) |
|
(1,286 |
) |
|
(462 |
) |
Interest income (expense),
net |
|
(389 |
) |
|
(148 |
) |
|
(886 |
) |
|
(317 |
) |
Equity accounted income
(loss), net |
|
32 |
|
|
(9 |
) |
|
62 |
|
|
1 |
|
Impairment expense, net |
|
─ |
|
|
(180 |
) |
|
(324 |
) |
|
(180 |
) |
Gain (loss) on
acquisitions/dispositions, net |
|
16 |
|
|
247 |
|
|
536 |
|
|
353 |
|
Other
income (expenses), net |
|
(83 |
) |
|
(42 |
) |
|
(354 |
) |
|
(63 |
) |
Income (loss) before income
tax |
|
232 |
|
|
353 |
|
|
498 |
|
|
928 |
|
Income tax (expense)
recovery |
|
|
|
|
|
|
|
|
Current |
|
(108 |
) |
|
(43 |
) |
|
(231 |
) |
|
(123 |
) |
Deferred |
|
58 |
|
|
(25 |
) |
|
80 |
|
|
4 |
|
Net
income (loss) |
$ |
182 |
|
$ |
285 |
|
$ |
347 |
|
$ |
809 |
|
Attributable
to: |
|
|
|
|
|
|
|
|
Limited partners |
$ |
13 |
|
$ |
(1 |
) |
$ |
100 |
|
$ |
4 |
|
Non-controlling interests attributable to: |
|
|
|
|
|
|
|
|
Redemption-exchange units held by Brookfield Asset Management
Inc. |
|
11 |
|
|
─ |
|
|
93 |
|
|
4 |
|
Special Limited Partners |
|
─ |
|
|
94 |
|
|
─ |
|
|
278 |
|
Interest of others in operating subsidiaries |
$ |
158 |
|
$ |
192 |
|
$ |
154 |
|
$ |
523 |
|
|
|
|
|
|
|
|
|
Brookfield
Business Partners L.P.Statements of Company Funds
from Operations |
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended September 30, 2019US$ millions, unaudited |
BusinessServices |
|
InfrastructureServices |
|
Industrials |
|
Corporateand Other |
|
Total |
|
Revenues |
$ |
7,427 |
|
$ |
1,133 |
|
$ |
3,234 |
|
$ |
─ |
|
$ |
11,794 |
|
Direct operating costs |
|
(7,150 |
) |
|
(759 |
) |
|
(2,478 |
) |
|
(2 |
) |
|
(10,389 |
) |
General and
administrative expenses |
(93 |
) |
|
(29 |
) |
|
(71 |
) |
|
(22 |
) |
|
(215 |
) |
Equity accounted
Company EBITDA |
9 |
|
|
21 |
|
|
31 |
|
|
─ |
|
|
61 |
|
Company
EBITDA attributable to others |
(129 |
) |
|
(227 |
) |
|
(527 |
) |
|
─ |
|
|
(883 |
) |
Company
EBITDA1,2,4 |
64 |
|
|
139 |
|
|
189 |
|
|
(24 |
) |
|
368 |
|
Realized disposition gains
(loss), net |
|
─ |
|
|
─ |
|
|
17 |
|
|
(1 |
) |
|
16 |
|
Other income (expense),
net |
|
(2 |
) |
|
(17 |
) |
|
─ |
|
|
─ |
|
|
(19 |
) |
Interest income (expense),
net |
|
(65 |
) |
|
(93 |
) |
|
(240 |
) |
|
9 |
|
|
(389 |
) |
Realized disposition gain,
current income taxes and interest expense related to equity
accounted investment |
|
(2 |
) |
|
(5 |
) |
|
(7 |
) |
|
─ |
|
|
(14 |
) |
Current income taxes |
|
(19 |
) |
|
(4 |
) |
|
(91 |
) |
|
6 |
|
|
(108 |
) |
Company FFO attributable to
others (net of Company EBITDA attributable to others) |
|
55 |
|
|
75 |
|
|
235 |
|
|
─ |
|
|
365 |
|
Company FFO1,3,4 |
|
31 |
|
|
95 |
|
|
103 |
|
|
(10 |
) |
|
219 |
|
Depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
(534 |
) |
Impairment expense, net |
|
|
|
|
|
|
|
|
|
─ |
|
Gain on acquisition and
disposition |
|
|
|
|
|
|
|
|
|
─ |
|
Deferred income taxes |
|
|
|
|
|
|
|
|
|
58 |
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
(64 |
) |
Non-cash items
attributable to equity accounted investments |
|
|
|
|
|
|
|
|
(15 |
) |
Non-cash items attributable to others |
|
|
|
|
|
|
|
|
|
360 |
|
Net income (loss) attributable to
unitholders4 |
|
|
|
|
|
|
|
|
$ |
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- The Statements of Company Funds from Operations above are
prepared on a basis that is consistent with Brookfield Business
Partners’ Supplemental Information and differs from net income as
presented in Brookfield Business Partners’ Consolidated Statements
of Operating Results on page 7 of this release, which is prepared
in accordance with IFRS. Management uses Company FFO and Company
EBITDA as key measures to evaluate operating performance. Readers
are encouraged to consider all measures in assessing Brookfield
Business Partners’ results.
- Company EBITDA is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as Company
FFO excluding the impact of realized disposition gains (losses),
interest income (expense), current income taxes, the impact of
realized disposition gains (losses), current income taxes and
interest income (expense) related to equity accounted investments,
and other items. When determining Company EBITDA, we include our
proportionate share of Company EBITDA of equity accounted
investments.
- Company FFO is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as net
income excluding the impact of depreciation and amortization,
deferred income taxes, breakage and transaction costs, non-cash
gains or losses as appropriate and other items. When determining
Company FFO, we include our proportionate share of Company
FFO of equity accounted investments.
- Attributable to limited partnership unitholders, general
partnership unitholders, special limited partnership unitholders
and redemption-exchange unitholders.
|
Brookfield
Business Partners L.P.Statements of Company Funds
from Operations |
|
|
|
|
|
|
|
|
|
|
|
For the
nine months ended September 30, 2019US$ millions, unaudited |
BusinessServices |
|
InfrastructureServices |
|
Industrials |
|
Corporateand Other |
|
Total |
|
Revenues |
$ |
21,707 |
|
$ |
3,527 |
|
$ |
6,478 |
|
$ |
─ |
|
$ |
31,712 |
|
Direct operating costs |
|
(21,097 |
) |
|
(2,489 |
) |
|
(4,766 |
) |
|
(6 |
) |
|
(28,358 |
) |
General and
administrative expenses |
(227 |
) |
|
(104 |
) |
|
(214 |
) |
|
(59 |
) |
|
(604 |
) |
Equity accounted
Company EBITDA |
28 |
|
|
77 |
|
|
52 |
|
|
─ |
|
|
157 |
|
Company
EBITDA attributable to others |
(241 |
) |
|
(649 |
) |
|
(1,146 |
) |
|
─ |
|
|
(2,036 |
) |
Company
EBITDA1,2,4 |
170 |
|
|
362 |
|
|
404 |
|
|
(65 |
) |
|
871 |
|
Realized disposition gains
(loss), net |
|
522 |
|
|
─ |
|
|
15 |
|
|
(1 |
) |
|
536 |
|
Other income (expense),
net |
|
(2 |
) |
|
(17 |
) |
|
2 |
|
|
─ |
|
|
(17 |
) |
Interest income (expense),
net |
|
(123 |
) |
|
(291 |
) |
|
(495 |
) |
|
23 |
|
|
(886 |
) |
Realized disposition gain,
current income taxes and interest expense related to equity
accounted investment |
|
(5 |
) |
|
(13 |
) |
|
(11 |
) |
|
─ |
|
|
(29 |
) |
Current income taxes |
|
(76 |
) |
|
5 |
|
|
(176 |
) |
|
16 |
|
|
(231 |
) |
Company FFO attributable to
others (net of Company EBITDA attributable to others) |
|
(81 |
) |
|
205 |
|
|
491 |
|
|
─ |
|
|
615 |
|
Company FFO1,3,4 |
|
405 |
|
|
251 |
|
|
230 |
|
|
(27 |
) |
|
859 |
|
Depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
(1,286 |
) |
Impairment expense, net |
|
|
|
|
|
|
|
|
|
(324 |
) |
Gain on acquisition and
disposition |
|
|
|
|
|
|
|
|
|
─ |
|
Deferred income taxes |
|
|
|
|
|
|
|
|
|
80 |
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
(337 |
) |
Non-cash items
attributable to equity accounted investments |
|
|
|
|
|
|
|
|
(66 |
) |
Non-cash items attributable to others |
|
|
|
|
|
|
|
|
|
1,267 |
|
Net income (loss) attributable to
unitholders4 |
|
|
|
|
|
|
|
|
$ |
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- The Statements of Company Funds from Operations above are
prepared on a basis that is consistent with Brookfield Business
Partners’ Supplemental Information and differs from net income as
presented in Brookfield Business Partners’ Consolidated Statements
of Operating Results on page 7 of this release, which is prepared
in accordance with IFRS. Management uses Company FFO and Company
EBITDA as key measures to evaluate operating performance. Readers
are encouraged to consider all measures in assessing Brookfield
Business Partners’ results.
- Company EBITDA is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as Company
FFO excluding the impact of realized disposition gains (losses),
interest income (expense), current income taxes, the impact of
realized disposition gains (losses), current income taxes and
interest income (expense) related to equity accounted investments,
and other items. When determining Company EBITDA, we include our
proportionate share of Company EBITDA of equity accounted
investments.
- Company FFO is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as net
income excluding the impact of depreciation and amortization,
deferred income taxes, breakage and transaction costs, non-cash
gains or losses as appropriate and other items. When determining
Company FFO, we include our proportionate share of Company FFO of
equity accounted investments.
- Attributable to limited partnership unitholders, general
partnership unitholders, special limited partnership unitholders
and redemption-exchange unitholders.
|
Brookfield
Business Partners L.P.Statements of Company Funds
from Operations |
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended September 30, 2018US$ millions, unaudited |
BusinessServices |
|
InfrastructureServices |
|
Industrials |
|
Corporateand Other |
|
Total |
|
Revenues |
$ |
7,923 |
|
$ |
1,049 |
|
$ |
1,018 |
|
$ |
─ |
|
$ |
9,990 |
|
Direct operating costs |
|
(7,784 |
) |
|
(738 |
) |
|
(556 |
) |
|
(2 |
) |
|
(9,080 |
) |
General and
administrative expenses |
(64 |
) |
|
(22 |
) |
|
(70 |
) |
|
(18 |
) |
|
(174 |
) |
Equity accounted
Company EBITDA |
8 |
|
|
23 |
|
|
3 |
|
|
─ |
|
|
34 |
|
Company
EBITDA attributable to others |
(51 |
) |
|
(205 |
) |
|
(283 |
) |
|
─ |
|
|
(539 |
) |
Company
EBITDA1,2,4 |
32 |
|
|
107 |
|
|
112 |
|
|
(20 |
) |
|
231 |
|
Realized disposition gains
(loss), net |
|
─ |
|
|
─ |
|
|
(3 |
) |
|
─ |
|
|
(3 |
) |
Other income (expense),
net |
|
─ |
|
|
(11 |
) |
|
─ |
|
|
─ |
|
|
(11 |
) |
Interest income (expense),
net |
|
(9 |
) |
|
(76 |
) |
|
(67 |
) |
|
4 |
|
|
(148 |
) |
Realized disposition gain,
current income taxes and interest expense related to equity
accounted investment |
|
(1 |
) |
|
(6 |
) |
|
(1 |
) |
|
─ |
|
|
(8 |
) |
Current income taxes |
|
(8 |
) |
|
(6 |
) |
|
(29 |
) |
|
─ |
|
|
(43 |
) |
Company FFO attributable to
others (net of Company EBITDA attributable to others) |
|
12 |
|
|
68 |
|
|
72 |
|
|
─ |
|
|
152 |
|
Company FFO1,3,4 |
|
26 |
|
|
76 |
|
|
84 |
|
|
(16 |
) |
|
170 |
|
Depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
(251 |
) |
Impairment expense, net |
|
|
|
|
|
|
|
|
|
(180 |
) |
Gain on acquisition and
disposition |
|
|
|
|
|
|
|
|
|
250 |
|
Deferred income taxes |
|
|
|
|
|
|
|
|
|
(25 |
) |
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
(31 |
) |
Non-cash items
attributable to equity accounted investments |
|
|
|
|
|
|
|
|
(35 |
) |
Non-cash items attributable to others |
|
|
|
|
|
|
|
|
|
195 |
|
Net income (loss) attributable to
unitholders4 |
|
|
|
|
|
|
|
|
$ |
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- The Statements of Company Funds from Operations above are
prepared on a basis that is consistent with Brookfield Business
Partners’ Supplemental Information and differs from net income as
presented in Brookfield Business Partners’ Consolidated Statements
of Operating Results on page 7 of this release, which is prepared
in accordance with IFRS. Management uses Company FFO and Company
EBITDA as key measures to evaluate operating performance. Readers
are encouraged to consider all measures in assessing Brookfield
Business Partners’ results.
- Company EBITDA is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as Company
FFO excluding the impact of realized disposition gains (losses),
interest income (expense), current income taxes, the impact of
realized disposition gains (losses), current income taxes and
interest income (expense) related to equity accounted investments,
and other items. When determining Company EBITDA, we include our
proportionate share of Company EBITDA of equity accounted
investments.
- Company FFO is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as net
income excluding the impact of depreciation and amortization,
deferred income taxes, breakage and transaction costs, non-cash
gains or losses as appropriate and other items. When determining
Company FFO, we include our proportionate share of Company
FFO of equity accounted investments.
- Attributable to limited partnership unitholders, general
partnership unitholders, special limited partnership unitholders
and redemption-exchange unitholders.
|
Brookfield
Business Partners L.P.Statements of Company Funds
from Operations |
|
|
|
|
|
|
|
|
|
|
|
For the
nine months ended September 30, 2018US$ millions, unaudited |
BusinessServices |
|
InfrastructureServices |
|
Industrials |
|
Corporateand Other |
|
Total |
|
Revenues |
$ |
23,129 |
|
$ |
1,054 |
|
$ |
2,769 |
|
$ |
7 |
|
$ |
26,959 |
|
Direct operating costs |
|
(22,729 |
) |
|
(738 |
) |
|
(1,456 |
) |
|
(6 |
) |
|
(24,929 |
) |
General and
administrative expenses |
(203 |
) |
|
(22 |
) |
|
(159 |
) |
|
(50 |
) |
|
(434 |
) |
Equity accounted
Company EBITDA |
23 |
|
|
96 |
|
|
37 |
|
|
─ |
|
|
156 |
|
Company
EBITDA attributable to others |
(122 |
) |
|
(205 |
) |
|
(821 |
) |
|
─ |
|
|
(1,148 |
) |
Company
EBITDA1,2,4 |
98 |
|
|
185 |
|
|
370 |
|
|
(49 |
) |
|
604 |
|
Realized disposition gains
(loss), net |
|
55 |
|
|
─ |
|
|
48 |
|
|
─ |
|
|
103 |
|
Other income (expense),
net |
|
─ |
|
|
(11 |
) |
|
─ |
|
|
─ |
|
|
(11 |
) |
Interest income (expense),
net |
|
(50 |
) |
|
(76 |
) |
|
(195 |
) |
|
4 |
|
|
(317 |
) |
Realized disposition gain,
current income taxes and interest expense related to equity
accounted investment |
|
(2 |
) |
|
(36 |
) |
|
(9 |
) |
|
─ |
|
|
(47 |
) |
Current income taxes |
|
(38 |
) |
|
(6 |
) |
|
(79 |
) |
|
─ |
|
|
(123 |
) |
Company FFO attributable to
others (net of Company EBITDA attributable to others) |
|
46 |
|
|
68 |
|
|
162 |
|
|
─ |
|
|
276 |
|
Company FFO1,3,4 |
|
109 |
|
|
124 |
|
|
297 |
|
|
(45 |
) |
|
485 |
|
Depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
(462 |
) |
Impairment expense, net |
|
|
|
|
|
|
|
|
|
(180 |
) |
Gain on acquisition and
disposition |
|
|
|
|
|
|
|
|
|
250 |
|
Deferred income taxes |
|
|
|
|
|
|
|
|
|
4 |
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
(52 |
) |
Non-cash items
attributable to equity accounted investments |
|
|
|
|
|
|
|
|
(108 |
) |
Non-cash items attributable to others |
|
|
|
|
|
|
|
|
|
349 |
|
Net income (loss) attributable to
unitholders4 |
|
|
|
|
|
|
|
|
$ |
286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- The Statements of Company Funds from Operations above are
prepared on a basis that is consistent with Brookfield Business
Partners’ Supplemental Information and differs from net income as
presented in Brookfield Business Partners’ Consolidated Statements
of Operating Results on page 7 of this release, which is prepared
in accordance with IFRS. Management uses Company FFO and Company
EBITDA as key measures to evaluate operating performance. Readers
are encouraged to consider all measures in assessing Brookfield
Business Partners’ results.
- Company EBITDA is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as Company
FFO excluding the impact of realized disposition gains (losses),
interest income (expense), current income taxes, the impact of
realized disposition gains (losses), current income taxes and
interest income (expense) related to equity accounted investments,
and other items. When determining Company EBITDA, we include our
proportionate share of Company EBITDA for equity accounted
investments.
- Company FFO is presented as a net amount attributable to
unitholders and is a non-IFRS measure and is calculated as net
income excluding the impact of depreciation and amortization,
deferred income taxes, breakage and transaction costs, non-cash
gains or losses as appropriate and other items. When determining
Company FFO, we include our proportionate share of Company FFO for
equity accounted investments.
- Attributable to limited partnership unitholders, general
partnership unitholders, special limited partnership unitholders
and redemption-exchange unitholders.
|
Brookfield Business Partners
L.P.Reconciliation of Net Income per
Unit |
|
|
|
|
|
Three months ended September 30 |
|
Nine months ended September 30 |
US$, unaudited |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net income (loss) per
unitholder, excluding incentive distribution1 |
$ |
0.16 |
|
|
$ |
0.72 |
|
|
$ |
1.41 |
|
|
$ |
2.21 |
|
Incentive distribution per unit2 |
|
─ |
|
|
|
(0.72 |
) |
|
|
─ |
|
|
|
(2.15 |
) |
Net
income (loss) attributable to limited partnership unit1,2 |
$ |
0.16 |
|
|
$ |
─ |
|
|
$ |
1.41 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Average number of partnership units outstanding on a fully
diluted time weighted average basis, assuming the exchange of
redemption exchange units held by Brookfield Asset Management for
limited partnership units, for the three and nine months ended
September 30, 2019 was 150.4 and 136.1 million, respectively (2018:
129.3 million).
- Income (loss) attributed to limited partnership unit on a fully
diluted basis is reduced by incentive distributions paid to special
limited partnership unitholders during the period based on the
volume-weighted average increase in unit price of the partnership’s
unit over an incentive threshold.
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