Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN)
(“Brookfield Business Partners”) announced today financial results
for the year ended December 31, 2021.
“We had a successful 2021, generating strong
financial performance and committing $2.2 billion of capital to
acquire six new businesses,” said Cyrus Madon, CEO of Brookfield
Business Partners. “Our focus is on onboarding our recent
acquisitions and executing our business improvement plans. We are
well positioned to continue building value and expect 2022 to be
another active year for our business.”
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
US$ millions (except per unit amounts), unaudited |
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
|
Net income (loss) attributable to unitholders1 |
$ |
41 |
|
$ |
85 |
|
$ |
643 |
$ |
(169 |
) |
Net income (loss) per limited
partnership unit2,3 |
$ |
(0.25 |
) |
$ |
0.56 |
|
$ |
3.28 |
$ |
(1.13 |
) |
|
|
|
|
|
|
Adjusted EBITDA4 |
$ |
550 |
|
$ |
423 |
|
$ |
1,761 |
$ |
1,384 |
|
Net income attributable to unitholders for the
year ended December 31, 2021 was $643 million ($3.28 per unit)
compared to net loss of $169 million (loss of $1.13 per unit) in
the prior year. Net income in the year included gains on
dispositions, partially offset by impairments recorded during the
year. Prior year results included provisions and impairments
recorded during the year, partially offset by mark-to-market gains
on financial assets including our investment in public
securities.
Adjusted EBITDA for the year ended
December 31, 2021 was $1,761 million compared to $1,384
million for the year ended December 31, 2020, reflecting increased
contributions from our Business Services, Industrials and
Infrastructure Services segments.
Operational Update
The following table presents Adjusted EBITDA by
segment:
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
US$ millions, unaudited |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Business Services |
$ |
149 |
|
$ |
92 |
|
|
$ |
561 |
|
$ |
271 |
|
Infrastructure Services |
|
212 |
|
|
156 |
|
|
|
613 |
|
|
602 |
|
Industrials |
|
225 |
|
|
195 |
|
|
|
713 |
|
|
604 |
|
Corporate and Other |
|
(36 |
) |
|
(20 |
) |
|
|
(126 |
) |
|
(93 |
) |
Adjusted EBITDA4 |
$ |
550 |
|
$ |
423 |
|
|
$ |
1,761 |
|
$ |
1,384 |
|
Our Business Services segment
generated Adjusted EBITDA of $561 million in 2021, compared to $271
million in 2020. Results benefited from strong performance and
increased ownership at our residential mortgage insurance
operations, improved performance at our construction operations and
contribution from our technology services operations which we
acquired in January 2021. Prior year results included contribution
from the pathology business within our healthcare services
operations which we sold in the fourth quarter 2020.
Our Infrastructure Services
segment generated Adjusted EBITDA of $613 million in 2021, compared
to $602 million in 2020. Results benefited from increased volumes
and strong execution on projects in nuclear technology services and
higher contribution from work access services, partially offset by
lower contribution from offshore oil services. Current year results
included contribution from our modular building leasing services
operations which we acquired in December 2021.
Our Industrials segment
generated Adjusted EBITDA of $713 million in 2021, compared to $604
million in 2020. Results benefited from higher aftermarket volumes
in advanced energy storage operations, partially offset by our
reduced ownership in graphite electrode manufacturing operations.
Current year results included contribution from our solar power
solutions provider and engineered components manufacturer which we
acquired in August 2021 and October 2021, respectively.
The following table presents Adjusted Earnings
From Operations5 (“Adjusted EFO”) by segment:
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
US$ millions, unaudited |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Business Services |
$ |
125 |
|
$ |
86 |
|
|
$ |
397 |
|
$ |
229 |
|
Infrastructure Services |
|
160 |
|
|
95 |
|
|
|
396 |
|
|
364 |
|
Industrials |
|
141 |
|
|
131 |
|
|
|
879 |
|
|
336 |
|
Corporate and Other |
|
(30 |
) |
|
(17 |
) |
|
|
(99 |
) |
|
(59 |
) |
Our Business Services segment
generated Adjusted EFO of $397 million in 2021, compared to $229
million in 2020. Prior period results included after-tax gains of
$57 million recognized on the sale of our cold storage logistics
operations and the pathology business within our healthcare
services operations.
Our Infrastructure Services
segment generated Adjusted EFO of $396 million in 2021, compared to
$364 million in 2020. Results benefited from strong performance in
our nuclear technology services operations and improved
contribution from our offshore oil services operations. Prior
period results included realized losses on derivatives in offshore
oil services.
Our Industrials segment
generated Adjusted EFO of $879 million in 2021, compared to $336
million in 2020. Current year results included after-tax gains of
$476 million recognized on the partial sale of our investment in
graphite electrode operations and our investment in public
securities. Prior year results included after-tax gains of $21
million recognized on the sale of our investment in public
securities.
Strategic Initiatives
- Modular Building Leasing
ServicesIn December 2021 we completed the acquisition of
Modulaire Group (“Modulaire”) for $4.8 billion. Modulaire is a
leading provider of modular building leasing services in Europe and
Asia-Pacific. Brookfield Business Partners funded approximately
$580 million of the $1.6 billion equity investment for a 36%
ownership interest, with the balance from institutional partners. A
portion of our investment may be syndicated to other institutional
partners.
- Roofing Products
ManufacturerIn January 2022 we signed an agreement to
acquire Cupa Group, a leading provider of slate roofing products,
for approximately $950 million. The transaction will be funded with
approximately $390 million of equity, of which we intend to fund
approximately 25% on closing, with the balance funded by
institutional partners. We expect to close the transaction in the
second quarter of 2022.
- Unit Repurchase
ProgramFor the three months and twelve months ended
December 31, 2021 we repurchased 759,572 and 1,946,491 of
Brookfield Business Partners L.P. units under our normal course
issuer bid (NCIB).
Liquidity
We ended the year with approximately $2.2
billion of liquidity at the corporate level including $720 million
of cash and liquid securities and $1.5 billion of availability on
our credit facilities.
Subsequent to year end, Brookfield Asset Management agreed to
subscribe for up to $1 billion of Brookfield Business Partners’ 6%
perpetual preferred equity securities. Proceeds will be available
for Brookfield Business Partners to draw upon for future growth
opportunities as they arise. The preferred securities are
redeemable at par, at the option of Brookfield Asset Management, to
the extent Brookfield Business Partners completes asset sales or
equity issuances. Brookfield Asset Management has the ability to
waive its redemption option.
Distribution
The Board of Directors has declared a quarterly
distribution in the amount of $0.0625 per unit, payable on March
31, 2022 to unitholders of record as at the close of business on
February 28, 2022.
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 on our
website https://bbu.brookfield.com under Reports & 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 twelve months ended December 31, 2021 was
147.3 million and 148.0 million, respectively (2020: 149.2 million
and 149.9 million, respectively).
- Net income (loss)
per limited partnership unit is equal to net income (loss) per
unitholder less the incentive distribution declared to special
limited partnership unitholders during the three and twelve months
ended December 31, 2021.
- Adjusted EBITDA is
a non-IFRS measure of operating performance presented as net income
and equity accounted income at the Partnership’s economic ownership
interest in consolidated subsidiaries and equity accounted
investments, respectively, excluding the impact of interest income
(expense), net, income taxes, depreciation and amortization,
gains (losses) on acquisition/disposition, net, transaction costs,
restructuring charges, revaluation gains or losses, impairment
expense, and other income (expense), net. The Partnership’s
economic ownership interest in consolidated subsidiaries and equity
accounted investments excludes amounts attributable to
non-controlling interests consistent with how the Partnership
determines net income attributable to non-controlling interests in
its IFRS consolidated statement of operating results. The
Partnership believes that Adjusted EBITDA provides a comprehensive
understanding of the ability of its businesses to generate
recurring earnings which allows users to better understand and
evaluate the underlying financial performance of the Partnership’s
operations and excludes items that the Partnership believes do not
directly relate to revenue earning activities and are not normal,
recurring items necessary for business operations. Please refer to
the reconciliation of net income to Adjusted EBITDA included
elsewhere in this release.
- Adjusted EFO was
formerly referred to as Adjusted FFO and the methodology of
calculating Adjusted EFO is unchanged from how Adjusted FFO was
previously calculated. Adjusted EFO is the Partnership’s segment
measure of profit or loss and is presented as net income and equity
accounted income at the Partnership’s economic ownership interest
in consolidated subsidiaries and equity accounted investments,
respectively, excluding the impact of depreciation and
amortization, deferred income taxes, transaction costs,
restructuring charges, revaluation gains or losses, impairment
expense, and other income or expense items. The Partnership’s
economic ownership interest in consolidated subsidiaries and equity
accounted investments excludes amounts attributable to
non-controlling interests consistent with how the Partnership
determines net income attributable to non-controlling interests in
its IFRS consolidated statement of operating results. In order to
provide additional insight regarding the Partnership’s operating
performance over the lifecycle of an investment, Adjusted EFO
includes realized disposition gains or losses, recorded in net
income, other comprehensive income, or directly in equity, such as
ownership changes. Adjusted EFO allows the Partnership to evaluate
its segments on the basis of return on invested capital generated
by its operations and allows the Partnership to evaluate the
performance of its segments on a levered basis.
Brookfield Business Partners is a business
services and industrials company focused on owning and operating
high-quality businesses that benefit from a strong competitive
position and provide essential products and services.
Brookfield Business Partners is the flagship
listed business services and industrials company of Brookfield
Asset Management, a leading global alternative asset manager with
approximately $690 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
Please note that Brookfield Business Partners’
previous audited annual and unaudited quarterly reports have been
filed on SEDAR and Edgar, and are available at
https://bbu.brookfield.com under Reports & Filings. Hard
copies of the annual and quarterly reports can be obtained free of
charge upon request.
For more information, please contact:
Media:Sebastien Bouchard Tel: +1 (416)
943-7937Email: sebastien.bouchard@brookfield.com |
Investors:Alan FlemingTel: +1 (416) 645-2736Email:
alan.fleming@brookfield.com |
Conference Call and 2021 Earnings Webcast
Details
Investors, analysts and other interested parties
can access Brookfield Business Partners’ 2021 results as well as
the Letter to Unitholders and Supplemental Information on our
website https://bbu.brookfield.com under Reports & Filings.
The conference call can be accessed via webcast
on February 4, 2022 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 1270808. A recording of the conference
call will be available until February 10, 2022 by dialing +1 (855)
859-2056 toll-free in the U.S. and Canada or +1 (404) 537-3406 for
overseas calls (Conference ID 1270808). 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 applicable Canadian and U.S. securities laws.
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; including
as a result of the ongoing novel coronavirus (SARS-CoV-2) pandemic,
including any SARS-CoV-2 variants (collectively, “COVID-19”); 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; hurricanes
and pandemics/epidemics; 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.
In addition, our future results may be impacted
by various government mandated economic restrictions resulting from
the ongoing COVID-19 pandemic and the related global reduction in
commerce and travel and substantial volatility in stock markets
worldwide, which may negatively impact our revenues, affect our
ability to identify and complete future transactions, impact our
liquidity position and result in a decrease of cash flows and
impairment losses and/or revaluations on our investments and
assets, and therefore we may be unable to achieve our expected
returns. See “Risks Associated with the COVID-19 Pandemic” in the
“Risks Factors” section included in our Management’s Discussion and
Analysis of Financial Condition and Results of Operations in our
Form 20-F for the year ended December 31, 2021 to be made
available.
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. Adjusted EBITDA is not a generally accepted
accounting measure under IFRS and therefore may differ from
definitions used by other entities. We believe this measure is a
useful supplemental measure that may assist investors in assessing
the financial performance of Brookfield Business Partners and its
subsidiaries. However, Adjusted EBITDA should not be considered in
isolation from, or as a substitute 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 in our annual report for the
year ended December 31, 2021 to be filed on Form 20-F.
Brookfield Business Partners
L.P. Consolidated Statements of Financial
Position
|
As at |
US$
millions, unaudited |
December 31, 2021 |
|
December 31, 2020 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,588 |
|
|
$ |
2,743 |
Financial assets |
|
|
8,550 |
|
|
|
8,796 |
Accounts and other receivable,
net |
|
|
5,638 |
|
|
|
4,989 |
Inventory and other
assets |
|
|
6,359 |
|
|
|
5,280 |
Property, plant and
equipment |
|
|
15,325 |
|
|
|
13,982 |
Deferred income tax
assets |
|
|
888 |
|
|
|
761 |
Intangible assets |
|
|
14,806 |
|
|
|
11,261 |
Equity accounted
investments |
|
|
1,480 |
|
|
|
1,690 |
Goodwill |
|
|
8,585 |
|
|
|
5,244 |
Total Assets |
|
$ |
64,219 |
|
|
$ |
54,746 |
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Corporate borrowings |
|
$ |
1,619 |
|
|
$ |
610 |
Accounts payable and
other |
|
|
19,636 |
|
|
|
17,932 |
Non-recourse borrowings in
subsidiaries of Brookfield Business Partners |
|
|
27,457 |
|
|
|
23,166 |
Deferred income tax liabilities |
|
|
2,507 |
|
|
|
1,701 |
|
|
$ |
51,219 |
|
|
$ |
43,409 |
Equity |
|
|
|
|
|
Limited partners |
$ |
2,252 |
|
|
$ |
1,928 |
|
Non-Controlling interests
attributable to: |
|
|
|
|
|
Redemption-Exchange Units, Preferred Shares and Special Limited
Partnership Units held by Brookfield Asset Management Inc. |
|
2,026 |
|
|
|
1,564 |
|
Interest of others in operating subsidiaries |
|
8,722 |
|
|
|
7,845 |
|
|
|
|
13,000 |
|
|
|
11,337 |
Total Liabilities and Equity |
|
$ |
64,219 |
|
|
$ |
54,746 |
Brookfield Business Partners
L.P.Consolidated Statements of Operating
Results
US$
millions, unaudited |
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
Revenues |
$ |
13,480 |
|
$ |
10,049 |
|
|
$ |
46,587 |
|
$ |
37,635 |
|
Direct operating costs |
|
(12,469 |
) |
|
(9,104 |
) |
|
|
(43,151 |
) |
|
(34,630 |
) |
General and administrative
expenses |
|
(261 |
) |
|
(260 |
) |
|
|
(1,012 |
) |
|
(968 |
) |
Interest income (expense),
net |
|
(411 |
) |
|
(394 |
) |
|
|
(1,468 |
) |
|
(1,482 |
) |
Equity accounted income
(loss), net |
|
(48 |
) |
|
31 |
|
|
|
13 |
|
|
57 |
|
Impairment expense, net |
|
(239 |
) |
|
(114 |
) |
|
|
(440 |
) |
|
(263 |
) |
Gain (loss) on
acquisitions/dispositions, net |
|
— |
|
|
95 |
|
|
|
1,823 |
|
|
274 |
|
Other
income (expense), net |
|
44 |
|
|
188 |
|
|
|
(34 |
) |
|
111 |
|
Income (loss) before income tax |
|
96 |
|
|
491 |
|
|
|
2,318 |
|
|
734 |
|
Income tax (expense)
recovery |
|
|
|
|
|
Current |
|
(106 |
) |
|
(84 |
) |
|
|
(536 |
) |
|
(284 |
) |
Deferred |
|
125 |
|
|
(27 |
) |
|
|
371 |
|
|
130 |
|
Net income (loss) |
$ |
115 |
|
$ |
380 |
|
|
$ |
2,153 |
|
$ |
580 |
|
Attributable to: |
|
|
|
|
|
Limited partners |
$ |
(19 |
) |
$ |
45 |
|
|
$ |
258 |
|
$ |
(91 |
) |
Non-controlling interests attributable to: |
|
|
|
|
|
Redemption-Exchange Units held by Brookfield Asset Management
Inc. |
|
(18 |
) |
|
40 |
|
|
|
228 |
|
|
(78 |
) |
Special Limited Partners |
|
78 |
|
|
— |
|
|
|
157 |
|
|
— |
|
Interest of others in operating subsidiaries |
|
74 |
|
|
295 |
|
|
|
1,510 |
|
|
749 |
|
Brookfield Business Partners
L.P.Reconciliation of Non-IFRS
Measures
US$
millions, unaudited |
|
Three Months Ended December 31, 2021 |
|
Business Services |
|
Infrastructure Services |
|
Industrials |
|
Corporate and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
204 |
|
|
$ |
(244 |
) |
|
$ |
172 |
|
|
$ |
(17 |
) |
|
$ |
115 |
|
|
|
|
|
|
|
|
|
|
|
|
Add or subtract the
following: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
121 |
|
|
|
186 |
|
|
|
325 |
|
|
|
— |
|
|
|
632 |
|
Impairment expense, net |
|
|
— |
|
|
|
279 |
|
|
|
(40 |
) |
|
|
— |
|
|
|
239 |
|
Other income (expense), net1 |
|
|
(82 |
) |
|
|
24 |
|
|
|
13 |
|
|
|
1 |
|
|
|
(44 |
) |
Income tax (expense) recovery |
|
|
26 |
|
|
|
(28 |
) |
|
|
12 |
|
|
|
(29 |
) |
|
|
(19 |
) |
Equity accounted income (loss), net |
|
|
(7 |
) |
|
|
85 |
|
|
|
(30 |
) |
|
|
— |
|
|
|
48 |
|
Interest income (expense), net |
|
|
63 |
|
|
|
110 |
|
|
|
229 |
|
|
|
9 |
|
|
|
411 |
|
Equity accounted Adjusted EBITDA2 |
|
|
11 |
|
|
|
35 |
|
|
|
25 |
|
|
|
— |
|
|
|
71 |
|
Amounts attributable to non-controlling interests3 |
|
|
(187 |
) |
|
|
(235 |
) |
|
|
(481 |
) |
|
|
— |
|
|
|
(903 |
) |
Adjusted EBITDA |
|
$ |
149 |
|
|
$ |
212 |
|
|
$ |
225 |
|
|
$ |
(36 |
) |
|
$ |
550 |
|
Notes:
- Other income
(expense), net corresponds to amounts that are not directly related
to revenue earning activities and are not normal, recurring income
or expenses necessary for business operations. The components of
other income (expense), net include $26 million of net revaluation
gains, $35 million of net gains on the disposition of property,
plant and equipment, $39 million of restructuring charges, $39
million in transaction costs, $46 million of income related to the
release of a non-recurring provision accrued for a contract dispute
at one of the Partnership’s operations, and $15 million of other
income.
- Equity accounted
Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to
the Partnership that is generated by its investments in associates
and joint ventures accounted for using the equity method.
- Adjusted EBITDA that is attributable to non-controlling
interests in consolidated subsidiaries.
Brookfield Business Partners
L.P.Reconciliation of Non-IFRS
Measures
US$
millions, unaudited |
|
Twelve Months Ended December 31, 2021 |
|
Business Services |
|
Infrastructure Services |
|
Industrials |
|
Corporate and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
619 |
|
|
$ |
(329 |
) |
|
$ |
1,953 |
|
|
$ |
(90 |
) |
|
$ |
2,153 |
|
|
|
|
|
|
|
|
|
|
|
|
Add or subtract the
following: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
465 |
|
|
|
705 |
|
|
|
1,113 |
|
|
|
— |
|
|
|
2,283 |
|
Impairment expense, net |
|
|
(13 |
) |
|
|
279 |
|
|
|
174 |
|
|
|
— |
|
|
|
440 |
|
Gain (loss) on acquisitions/dispositions, net |
|
|
— |
|
|
|
— |
|
|
|
(1,823 |
) |
|
|
— |
|
|
|
(1,823 |
) |
Other income (expense), net1 |
|
|
(39 |
) |
|
|
51 |
|
|
|
17 |
|
|
|
5 |
|
|
|
34 |
|
Income tax (expense) recovery |
|
|
184 |
|
|
|
(10 |
) |
|
|
52 |
|
|
|
(61 |
) |
|
|
165 |
|
Equity accounted income (loss), net |
|
|
(11 |
) |
|
|
79 |
|
|
|
(81 |
) |
|
|
— |
|
|
|
(13 |
) |
Interest income (expense), net |
|
|
239 |
|
|
|
360 |
|
|
|
849 |
|
|
|
20 |
|
|
|
1,468 |
|
Equity accounted Adjusted EBITDA2 |
|
|
30 |
|
|
|
123 |
|
|
|
85 |
|
|
|
— |
|
|
|
238 |
|
Amounts attributable to non-controlling interests3 |
|
|
(913 |
) |
|
|
(645 |
) |
|
|
(1,626 |
) |
|
|
— |
|
|
|
(3,184 |
) |
Adjusted EBITDA |
|
$ |
561 |
|
|
$ |
613 |
|
|
$ |
713 |
|
|
$ |
(126 |
) |
|
$ |
1,761 |
|
Notes:
- Other income
(expense), net corresponds to amounts that are not directly related
to revenue earning activities and are not normal, recurring income
or expenses necessary for business operations. The components of
other income (expense), net include $242 million of net revaluation
gains, $168 million of business separation expenses, stand-up costs
and restructuring charges, $60 million in transaction costs, $40
million of net losses on debt extinguishment/modification, and $8
million of other expenses.
- Equity accounted
Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to
the Partnership that is generated by its investments in associates
and joint ventures accounted for using the equity method.
- Adjusted EBITDA
that is attributable to non-controlling interests in consolidated
subsidiaries.
Brookfield Business Partners
L.P.Reconciliation of Non-IFRS
Measures
US$
millions, unaudited |
|
Three Months Ended December 31, 2020 |
|
Business Services |
|
Infrastructure Services |
|
Industrials |
|
Corporate and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
114 |
|
|
$ |
(93 |
) |
|
$ |
376 |
|
|
$ |
(17 |
) |
|
$ |
380 |
|
|
|
|
|
|
|
|
|
|
|
|
Add or subtract the
following: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
113 |
|
|
|
167 |
|
|
|
267 |
|
|
|
— |
|
|
|
547 |
|
Impairment expense, net |
|
|
13 |
|
|
|
101 |
|
|
|
— |
|
|
|
— |
|
|
|
114 |
|
Gain (loss) on acquisitions/dispositions, net |
|
|
(55 |
) |
|
|
— |
|
|
|
(40 |
) |
|
|
— |
|
|
|
(95 |
) |
Other income (expense), net1 |
|
|
(2 |
) |
|
|
16 |
|
|
|
(202 |
) |
|
|
— |
|
|
|
(188 |
) |
Income tax (expense) recovery |
|
|
29 |
|
|
|
5 |
|
|
|
87 |
|
|
|
(10 |
) |
|
|
111 |
|
Equity accounted income (loss), net |
|
|
— |
|
|
|
(15 |
) |
|
|
(16 |
) |
|
|
— |
|
|
|
(31 |
) |
Interest income (expense), net |
|
|
57 |
|
|
|
103 |
|
|
|
227 |
|
|
|
7 |
|
|
|
394 |
|
Equity accounted Adjusted EBITDA2 |
|
|
3 |
|
|
|
33 |
|
|
|
11 |
|
|
|
— |
|
|
|
47 |
|
Amounts attributable to non-controlling interests3 |
|
|
(180 |
) |
|
|
(161 |
) |
|
|
(515 |
) |
|
|
— |
|
|
|
(856 |
) |
Adjusted EBITDA |
|
$ |
92 |
|
|
$ |
156 |
|
|
$ |
195 |
|
|
$ |
(20 |
) |
|
$ |
423 |
|
Notes:
- Other income
(expense), net corresponds to amounts that are not directly related
to revenue earning activities and are not normal, recurring income
or expenses necessary for business operations. The components of
other income (expense), net include $298 million of net revaluation
gains, $55 million of restructuring charges, $26 million of
provisions for potential productivity impacts and damages related
to business interruption and work stoppages which are not
considered normal or recurring, and $29 million of other
expenses.
- Equity accounted
Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to
the Partnership that is generated by its investments in associates
and joint ventures accounted for using the equity method.
- Adjusted EBITDA
that is attributable to non-controlling interests in consolidated
subsidiaries.
Brookfield Business Partners
L.P.Reconciliation of Non-IFRS
Measures
US$
millions, unaudited |
|
Twelve Months Ended December 31, 2020 |
|
Business Services |
|
Infrastructure Services |
|
Industrials |
|
Corporate and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
330 |
|
|
$ |
(318 |
) |
|
$ |
638 |
|
|
$ |
(70 |
) |
|
$ |
580 |
|
|
|
|
|
|
|
|
|
|
|
|
Add or subtract the
following: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
435 |
|
|
|
665 |
|
|
|
1,065 |
|
|
|
— |
|
|
|
2,165 |
|
Impairment expense, net |
|
|
(18 |
) |
|
|
245 |
|
|
|
36 |
|
|
|
— |
|
|
|
263 |
|
Gain (loss) on acquisitions/dispositions, net |
|
|
(241 |
) |
|
|
— |
|
|
|
(33 |
) |
|
|
— |
|
|
|
(274 |
) |
Other income (expense), net1 |
|
|
158 |
|
|
|
175 |
|
|
|
(455 |
) |
|
|
11 |
|
|
|
(111 |
) |
Income tax (expense) recovery |
|
|
69 |
|
|
|
23 |
|
|
|
102 |
|
|
|
(40 |
) |
|
|
154 |
|
Equity accounted income (loss), net |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(44 |
) |
|
|
— |
|
|
|
(57 |
) |
Interest income (expense), net |
|
|
225 |
|
|
|
356 |
|
|
|
895 |
|
|
|
6 |
|
|
|
1,482 |
|
Equity accounted Adjusted EBITDA2 |
|
|
16 |
|
|
|
117 |
|
|
|
33 |
|
|
|
— |
|
|
|
166 |
|
Amounts attributable to non-controlling interests3 |
|
|
(699 |
) |
|
|
(652 |
) |
|
|
(1,633 |
) |
|
|
— |
|
|
|
(2,984 |
) |
Adjusted EBITDA |
|
$ |
271 |
|
|
$ |
602 |
|
|
$ |
604 |
|
|
$ |
(93 |
) |
|
$ |
1,384 |
|
Notes:
- Other income
(expense), net corresponds to amounts that are not directly related
to revenue earning activities and are not normal, recurring income
or expenses necessary for business operations. The components of
other income (expense), net include $390 million of net revaluation
gains, $258 million of net gains on debt
extinguishment/modification, $134 million of provisions for
potential productivity impacts and damages related to business
interruption and work stoppages which are not considered normal or
recurring, $128 million of non-recurring, one-time provisions
including product line exits, contract write-offs, and production
relocation costs, as a result of the recapitalization of one of the
Partnership’s operations, $186 million of business separation
expenses, stand-up costs and restructuring charges, $52 million in
transaction costs, and $37 million of other expenses.
- Equity accounted
Adjusted EBITDA corresponds to the Adjusted EBITDA attributable to
the Partnership that is generated by its investments in associates
and joint ventures accounted for using the equity method.
- Adjusted EBITDA
that is attributable to non-controlling interests in consolidated
subsidiaries.
Brookfield Business Partners
L.P.Reconciliation of Net Income per
Unit
US$,
unaudited |
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
Net income (loss) per unitholder1,2 |
$ |
0.28 |
|
$ |
0.56 |
|
$ |
4.34 |
|
$ |
(1.13 |
) |
Less: incentive distribution to special limited partners2 |
|
(0.53 |
) |
|
— |
|
|
(1.06 |
) |
|
— |
|
Net income (loss) per limited partnership unit2,3 |
$ |
(0.25 |
) |
$ |
0.56 |
|
$ |
3.28 |
|
$ |
(1.13 |
) |
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 twelve months ended December 31, 2021 was 147.3
million and 148.0 million, respectively (2020: 149.2 million and
149.9 million, respectively).
- Net income (loss)
per limited partnership unit is equal to net income (loss) per
unitholder less the incentive distribution declared to special
limited partnership unitholders during the three and twelve months
ended December 31, 2021.
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