"We had a strong third quarter and our operations are performing well," said
| Three Months Ended |
Nine Months Ended |
||||||||||||
| US$ millions (except per unit amounts), unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Net income (loss) attributable to unitholders1 | $ | 87 | $ | (19 | ) | $ | 602 | $ | (254 | ) | |||
| Net income (loss) per limited partnership unit2,3 | $ | 0.59 | $ | (0.12 | ) | $ | 3.53 | $ | (1.69 | ) | |||
| Adjusted EBITDA1,5 | $ | 443 | $ | 381 | $ | 1,211 | $ | 961 | |||||
| Adjusted FFO1,4 | $ | 276 | $ | 208 | $ | 1,177 | $ | 575 | |||||
| Adjusted FFO per unit2 | $ | 1.86 | $ | 1.39 | $ | 7.93 | $ | 3.83 | |||||
| Adjusted FFO, excluding gain (loss), net of acquisitions/dispositions1,4 | $ | 276 | $ | 208 | $ | 700 | $ | 533 | |||||
| Adjusted FFO, excluding gain (loss), net of acquisitions/dispositions per unit2 | $ | 1.86 | $ | 1.39 | $ | 4.72 | $ | 3.55 | |||||
Adjusted EBITDA for the three months ended
Net income attributable to unitholders for the three months ended
Operational Update
The following table presents Adjusted EBITDA by segment:
| Three Months Ended |
Nine Months Ended |
||||||||||||
| US$ millions, unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Business Services | $ | 163 | $ | 96 | $ | 412 | $ | 179 | |||||
| Infrastructure Services | 140 | 142 | 401 | 446 | |||||||||
| Industrials | 171 | 166 | 488 | 409 | |||||||||
| Corporate and Other | (31 | ) | (23 | ) | (90 | ) | (73 | ) | |||||
| Adjusted EBITDA1,5 | $ | 443 | $ | 381 | $ | 1,211 | $ | 961 | |||||
Our Business Services segment generated Adjusted EBITDA of
Our Infrastructure Services segment generated Adjusted EBITDA of
Our Industrials segment generated Adjusted EBITDA of
The following table presents Adjusted FFO by segment:
| Three Months Ended |
Nine Months Ended |
||||||||||||
| US$ millions (except per unit amounts), unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Business Services | $ | 109 | $ | 62 | $ | 272 | $ | 143 | |||||
| Infrastructure Services | 91 | 78 | 236 | 269 | |||||||||
| Industrials | 101 | 86 | 738 | 205 | |||||||||
| Corporate and Other | (25 | ) | (18 | ) | (69 | ) | (42 | ) | |||||
| Adjusted FFO1,4 | $ | 276 | $ | 208 | $ | 1,177 | $ | 575 | |||||
| Gain (loss) on acquisitions/dispositions, net | — | — | 477 | 42 | |||||||||
| Adjusted FFO, excluding gain (loss), net of acquisitions/dispositions1,4 | 276 | 208 | 700 | 533 | |||||||||
| Adjusted FFO, excluding gain (loss), net of acquisitions/dispositions per unit2 | $ | 1.86 | $ | 1.39 | $ | 4.72 | $ | 3.55 | |||||
Adjusted FFO for the three months ended
Strategic Initiatives
- Lottery Services
InOctober 2021 , we signed an agreement to acquire Scientific Games Corporation's global lottery services and technology business ("Scientific Games Lottery ") for approximately$5.8 billion .Scientific Games Lottery is an essential service provider to government sponsored lottery programs through its capabilities in game design, distribution, systems and terminals, and turnkey technology solutions. We intend to fund the transaction with approximately$2.6 billion of equity, of whichBrookfield Business Partners intends to fund approximately 30% on closing with the balance funded by institutional partners. We expect to close the transaction in the second quarter of 2022, subject to regulatory approvals.
- Engineered Components Manufacturing
InOctober 2021 , we completed the acquisition ofDexKo Global Inc. ("DexKo") for$3.4 billion . DexKo is a leading manufacturer of highly engineered components primarily for industrial trailers and other towable-equipment providers.Brookfield Business Partners funded approximately$400 million of the$1.1 billion equity investment for a 35% ownership interest, with the balance from institutional partners. A portion of our investment may be syndicated to other institutional partners.
- Solar Power Solutions
InAugust 2021 , we completed the acquisition of Aldo Componentes Eletrônicos LTDA ("Aldo"). Aldo is a leading distributor of solar power generators for the distributed generation market inBrazil .Brookfield Business Partners funded approximately$104 million of the$295 million equity investment for a 35% ownership interest, with the balance from institutional partners.
- Unit Repurchase Program
For the three months endedSeptember 30, 2021 we repurchased 739,048 ofBrookfield Business Partners L.P. units under our normal course issuer bid (NCIB).
Liquidity
We ended the quarter with approximately
Distribution
The Board of Directors has declared a quarterly distribution in the amount of
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 nine months ended
September 30, 2021 was 148.0 million and 148.3 million, respectively (2020: 150.0 million and 150.2 million). - Net income per limited partnership unit is equal to net income per unitholder less the incentive distribution declared to special limited partnership unitholders during the nine months ended
September 30, 2021 . - Adjusted FFO was formerly referred to as Company FFO. The methodology for calculating Adjusted FFO is unchanged from how Company FFO was previously calculated. Adjusted FFO is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as our share of net income and equity accounted income excluding the impact of depreciation and amortization, deferred income taxes, transaction costs, non-cash valuation gains or losses, impairment expense and other items. In order to provide additional insight regarding performance on a cumulative realized basis, Adjusted FFO includes realized disposition gains or losses, along with associated tax impacts, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. These include gains or losses arising from transactions during the reported period together with fair value changes recorded in prior periods. Please refer to the reconciliation of net income to Adjusted FFO included elsewhere in this release.
- Adjusted EBITDA was formerly referred to as Company EBITDA. The methodology for calculating Adjusted EBITDA is unchanged from how Company EBITDA was previously calculated. Adjusted EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Adjusted FFO excluding the impact of our share of realized disposition gains and losses, interest income and expense, and current income taxes. Please refer to the reconciliation of net income to Adjusted EBITDA included elsewhere in this release.
Please note that
For more information, please contact:
| Media: Tel: +1 (416) 943-7937 Email: [email protected] |
Investors: Tel: +1 (416) 645-2736 Email: [email protected] |
Conference Call and Quarterly Earnings Webcast Details
Investors, analysts and other interested parties can access Brookfield Business Partners’ third quarter 2021 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
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
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
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 pandemic (“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
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
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,
Cautionary Statement Regarding the Use of Non-IFRS Measures
This news release contains references to Non-IFRS Measures. Adjusted FFO and Adjusted EBITDA were formerly referred to as Company FFO and Company EBITDA, respectively. The methodologies for calculating Adjusted FFO and Adjusted EBITDA are unchanged from how Company FFO and Company EBITDA were previously calculated. When determining Adjusted FFO and Adjusted EBITDA, we include our unitholders’ share of Adjusted FFO and Adjusted EBITDA for equity accounted investments. Adjusted FFO and Adjusted EBITDA are not generally accepted accounting measures under IFRS and therefore may differ from definitions used by other entities. We believe these measures are useful supplemental measures that may assist investors in assessing the financial performance of
References to
Consolidated Statements of Financial Position
| As at | |||||||||||||
| US$ millions, unaudited | |||||||||||||
| Assets | |||||||||||||
| Cash and cash equivalents | $ | 2,371 | $ | 2,743 | |||||||||
| Financial assets | 8,645 | 8,796 | |||||||||||
| Accounts and other receivable, net | 5,233 | 4,989 | |||||||||||
| Inventory and other assets | 5,673 | 5,280 | |||||||||||
| Property, plant and equipment | 12,901 | 13,982 | |||||||||||
| Deferred income tax assets | 910 | 761 | |||||||||||
| Intangible assets | 10,859 | 11,261 | |||||||||||
| Equity accounted investments | 1,569 | 1,690 | |||||||||||
| 5,599 | 5,244 | ||||||||||||
| Total Assets | $ | 53,760 | $ | 54,746 | |||||||||
| Liabilities and Equity | |||||||||||||
| Liabilities | |||||||||||||
| Corporate borrowings | $ | 751 | $ | 610 | |||||||||
| Accounts payable and other | 19,056 | 17,932 | |||||||||||
| Non-recourse borrowings in subsidiaries of |
21,338 | 23,166 | |||||||||||
| Deferred income tax liabilities | 1,517 | 1,701 | |||||||||||
| $ | 42,662 | $ | 43,409 | ||||||||||
| Equity | |||||||||||||
| Limited partners | $ | 2,186 | $ | 1,928 | |||||||||
| Non-controlling interests attributable to: | |||||||||||||
| Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | 1,972 | 1,564 | |||||||||||
| Interest of others in operating subsidiaries | 6,940 | 7,845 | |||||||||||
| 11,098 | 11,337 | ||||||||||||
| Total Liabilities and Equity | $ | 53,760 | $ | 54,746 | |||||||||
Consolidated Statements of Operating Results
| Three Months Ended |
Nine Months Ended |
||||||||||||
| US$ millions, unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenues | $ | 12,043 | $ | 10,070 | $ | 33,107 | $ | 27,586 | |||||
| Direct operating costs | (11,155 | ) | (9,269 | ) | (30,682 | ) | (25,526 | ) | |||||
| General and administrative expenses | (247 | ) | (236 | ) | (751 | ) | (708 | ) | |||||
| Interest income (expense), net | (358 | ) | (371 | ) | (1,057 | ) | (1,088 | ) | |||||
| Equity accounted income (loss), net | 25 | 17 | 61 | 26 | |||||||||
| Impairment expense, net | — | (7 | ) | (201 | ) | (149 | ) | ||||||
| Gain (loss) on acquisitions/dispositions, net | — | — | 1,823 | 179 | |||||||||
| Other income (expense), net | (20 | ) | (9 | ) | (78 | ) | (77 | ) | |||||
| Income (loss) before income tax | 288 | 195 | 2,222 | 243 | |||||||||
| Income tax (expense) recovery | |||||||||||||
| Current | (119 | ) | (102 | ) | (430 | ) | (200 | ) | |||||
| Deferred | 131 | (8 | ) | 246 | 157 | ||||||||
| Net income (loss) | $ | 300 | $ | 85 | $ | 2,038 | $ | 200 | |||||
| Attributable to: | |||||||||||||
| Limited partners | $ | 46 | $ | (10 | ) | $ | 277 | $ | (136 | ) | |||
| Non-controlling interests attributable to: | |||||||||||||
| Redemption-Exchange Units held by Brookfield Asset Management Inc. | 41 | (9 | ) | 246 | (118 | ) | |||||||
| — | — | 79 | — | ||||||||||
| Interest of others in operating subsidiaries | 213 | 104 | 1,436 | 454 | |||||||||
Statements of Adjusted Funds from Operations
| For the three months ended US$ millions, unaudited |
Business Services |
Infrastructure Services |
Industrials | Corporate and Other |
Total | Attributable to Non- controlling Interests |
As per IFRS Financials |
||||||||||||||
| Revenues | $ | 2,336 | $ | 465 | $ | 826 | $ | — | $ | 3,627 | $ | 8,416 | $ | 12,043 | |||||||
| Direct operating costs5 | (2,148 | ) | (337 | ) | (654 | ) | (5 | ) | (3,144 | ) | (7,455 | ) | (10,599 | ) | |||||||
| General and administrative expenses | (36 | ) | (16 | ) | (21 | ) | (26 | ) | (99 | ) | (148 | ) | (247 | ) | |||||||
| Equity accounted Adjusted EBITDA6 | 11 | 28 | 20 | — | 59 | 29 | 88 | ||||||||||||||
| Adjusted EBITDA1,3,4 | $ | 163 | $ | 140 | $ | 171 | $ | (31 | ) | $ | 443 | ||||||||||
| Other income (expense), net7 | 2 | — | — | — | 2 | 2 | 4 | ||||||||||||||
| Interest income (expense), net | (19 | ) | (33 | ) | (57 | ) | (4 | ) | (113 | ) | (245 | ) | (358 | ) | |||||||
| Current income tax (expense) recovery | (35 | ) | (3 | ) | (9 | ) | 10 | (37 | ) | (82 | ) | (119 | ) | ||||||||
| Realized disposition gain, current income taxes and interest expense related to equity accounted investments6 | (2 | ) | (13 | ) | (4 | ) | — | (19 | ) | (5 | ) | (24 | ) | ||||||||
| Adjusted FFO1,2,4 | $ | 109 | $ | 91 | $ | 101 | $ | (25 | ) | $ | 276 | ||||||||||
| Depreciation and amortization expense5 | (189 | ) | (367 | ) | (556 | ) | |||||||||||||||
| Other income (expense), net7 | (7 | ) | (17 | ) | (24 | ) | |||||||||||||||
| Deferred income tax (expense) recovery | 36 | 95 | 131 | ||||||||||||||||||
| Non-cash items attributable to equity accounted investments6 | (29 | ) | (10 | ) | (39 | ) | |||||||||||||||
| Net income (loss)4 | $ | 87 | $ | 213 | $ | 300 | |||||||||||||||
Notes:
- The Statements of Adjusted Funds from Operations (formerly referred to as Statements of Company Funds from Operations) differ from net income as presented in Brookfield Business Partners’ Consolidated Statements of Operating Results included elsewhere in this release, which is prepared in accordance with IFRS. Management uses Adjusted FFO and Adjusted EBITDA as key measures to evaluate operating performance. Readers are encouraged to consider all measures in assessing Brookfield Business Partners’ results.
- Adjusted FFO is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as our share of net income and equity accounted income excluding the impact of depreciation and amortization, deferred income taxes, transaction costs, non-cash valuation gains or losses, impairment expense and other items. In order to provide additional insight regarding performance on a cumulative realized basis, Adjusted FFO includes realized disposition gains or losses, along with associated tax impacts, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. These include gains or losses arising from transactions during the reporting period together with fair value changes recorded in prior periods.
- Adjusted EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Adjusted FFO excluding our share of realized disposition gains and losses, interest income and expense, and current income taxes.
- Attributable to limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders.
- The sum of these amounts equates to direct operating costs of
$11,155 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to equity accounted income (loss), net of
$25 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to other income (expense), net of
$(20) million as per the unaudited interim condensed consolidated statements of operating results.
Statements of Adjusted Funds from Operations
| For the nine months ended US$ millions, unaudited |
Business Services |
Infrastructure Services |
Industrials | Corporate and Other |
Total | Attributable to Non- controlling Interests |
As per IFRS Financials |
||||||||||||||
| Revenues | $ | 6,659 | $ | 1,381 | $ | 2,313 | $ | — | $ | 10,353 | $ | 22,754 | $ | 33,107 | |||||||
| Direct operating costs5 | (6,155 | ) | (1,017 | ) | (1,824 | ) | (12 | ) | (9,008 | ) | (20,023 | ) | (29,031 | ) | |||||||
| General and administrative expenses | (111 | ) | (51 | ) | (61 | ) | (78 | ) | (301 | ) | (450 | ) | (751 | ) | |||||||
| Equity accounted Adjusted EBITDA6 | 19 | 88 | 60 | — | 167 | 96 | 263 | ||||||||||||||
| Adjusted EBITDA1,3,4 | $ | 412 | $ | 401 | $ | 488 | $ | (90 | ) | $ | 1,211 | ||||||||||
| Gain (loss) on acquisitions/dispositions, net7 | — | — | 572 | — | 572 | 740 | 1,312 | ||||||||||||||
| Other income (expense), net8 | (1 | ) | — | — | — | (1 | ) | (12 | ) | (13 | ) | ||||||||||
| Interest income (expense), net | (50 | ) | (110 | ) | (172 | ) | (11 | ) | (343 | ) | (714 | ) | (1,057 | ) | |||||||
| Current income tax (expense) recovery9 | (83 | ) | (11 | ) | (132 | ) | 32 | (194 | ) | (245 | ) | (439 | ) | ||||||||
| Realized disposition gain, current income taxes and interest expense related to equity accounted investments6 | (6 | ) | (44 | ) | (18 | ) | — | (68 | ) | (17 | ) | (85 | ) | ||||||||
| Adjusted FFO1,2,4 | $ | 272 | $ | 236 | $ | 738 | $ | (69 | ) | $ | 1,177 | ||||||||||
| Depreciation and amortization expense5 | (562 | ) | (1,089 | ) | (1,651 | ) | |||||||||||||||
| Impairment expense, net | (58 | ) | (143 | ) | (201 | ) | |||||||||||||||
| Gain (loss) on acquisitions/dispositions, net7 | 60 | 451 | 511 | ||||||||||||||||||
| Current income tax (expense) recovery9 | 9 | — | 9 | ||||||||||||||||||
| Other income (expense), net8 | (12 | ) | (53 | ) | (65 | ) | |||||||||||||||
| Deferred income tax (expense) recovery | 71 | 175 | 246 | ||||||||||||||||||
| Non-cash items attributable to equity accounted investments6 | (83 | ) | (34 | ) | (117 | ) | |||||||||||||||
| Net income (loss)4 | $ | 602 | $ | 1,436 | $ | 2,038 | |||||||||||||||
Notes:
- The Statements of Adjusted Funds from Operations above differs from net income as presented in Brookfield Business Partners’ Consolidated Statements of Operating Results included elsewhere in this release, which is prepared in accordance with IFRS. Management uses Adjusted FFO and Adjusted EBITDA as key measures to evaluate operating performance. Readers are encouraged to consider all measures in assessing Brookfield Business Partners’ results.
- Adjusted FFO is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as our share of net income and equity accounted income excluding the impact of depreciation and amortization, deferred income taxes, transaction costs, non-cash valuation gains or losses, impairment expense and other items. In order to provide additional insight regarding performance on a cumulative realized basis, Adjusted FFO includes realized disposition gains or losses, along with associated tax impacts, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. These include gains or losses arising from transactions during the reporting period together with fair value changes recorded in prior periods.
- Adjusted EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Adjusted FFO excluding our share of realized disposition gains and losses, interest income and expense, and current income taxes.
- Attributable to limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders.
- The sum of these amounts equates to direct operating costs of
$30,682 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to equity accounted income (loss), net of
$61 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to gain (loss) on acquisitions/dispositions, net of
$1,823 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to other income (expense), net of
$(78) million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to current income tax (expense) recovery of
$(430) million as per the unaudited interim condensed consolidated statements of operating results.
Statements of Adjusted Funds from Operations
| For the three months ended US$ millions, unaudited |
Business Services |
Infrastructure Services |
Industrials | Corporate and Other |
Total | Attributable to Non- controlling Interests |
As per IFRS Financials |
||||||||||||||
| Revenues | $ | 2,050 | $ | 460 | $ | 804 | $ | — | $ | 3,314 | $ | 6,756 | $ | 10,070 | |||||||
| Direct operating costs5 | (1,920 | ) | (338 | ) | (625 | ) | (5 | ) | (2,888 | ) | (5,834 | ) | (8,722 | ) | |||||||
| General and administrative expenses | (36 | ) | (13 | ) | (23 | ) | (18 | ) | (90 | ) | (146 | ) | (236 | ) | |||||||
| Equity accounted Adjusted EBITDA6 | 2 | 33 | 10 | — | 45 | 39 | 84 | ||||||||||||||
| Adjusted EBITDA1,3,4 | $ | 96 | $ | 142 | $ | 166 | $ | (23 | ) | $ | 381 | ||||||||||
| Other income (expense), net7 | — | (8 | ) | 1 | — | (7 | ) | (10 | ) | (17 | ) | ||||||||||
| Interest income (expense), net | (16 | ) | (41 | ) | (62 | ) | (4 | ) | (123 | ) | (248 | ) | (371 | ) | |||||||
| Current income tax (expense) recovery | (17 | ) | (2 | ) | (17 | ) | 9 | (27 | ) | (75 | ) | (102 | ) | ||||||||
| Realized disposition gain, current income taxes and interest expense related to equity accounted investments6 | (1 | ) | (13 | ) | (2 | ) | — | (16 | ) | (8 | ) | (24 | ) | ||||||||
| Adjusted FFO1,2,4 | $ | 62 | $ | 78 | $ | 86 | $ | (18 | ) | $ | 208 | ||||||||||
| Depreciation and amortization expense5 | (181 | ) | (366 | ) | (547 | ) | |||||||||||||||
| Impairment expense, net | (3 | ) | (4 | ) | (7 | ) | |||||||||||||||
| Other income (expense), net7 | (10 | ) | 18 | 8 | |||||||||||||||||
| Deferred income tax (expense) recovery | (2 | ) | (6 | ) | (8 | ) | |||||||||||||||
| Non-cash items attributable to equity accounted investments6 | (31 | ) | (12 | ) | (43 | ) | |||||||||||||||
| Net income (loss)4 | $ | (19 | ) | $ | 104 | $ | 85 | ||||||||||||||
Notes:
- The Statements of Adjusted Funds from Operations above differs from net income as presented in Brookfield Business Partners’ Consolidated Statements of Operating Results included elsewhere in this release, which is prepared in accordance with IFRS. Management uses Adjusted FFO and Adjusted EBITDA as key measures to evaluate operating performance. Readers are encouraged to consider all measures in assessing Brookfield Business Partners’ results.
- Adjusted FFO is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as our share of net income and equity accounted income excluding the impact of depreciation and amortization, deferred income taxes, transaction costs, non-cash valuation gains or losses, impairment expense and other items. In order to provide additional insight regarding performance on a cumulative realized basis, Adjusted FFO includes realized disposition gains or losses, along with associated tax impacts, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. These include gains or losses arising from transactions during the reporting period together with fair value changes recorded in prior periods.
- Adjusted EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Adjusted FFO excluding our share of realized disposition gains and losses, interest income and expense, and current income taxes.
- Attributable to limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders.
- The sum of these amounts equates to direct operating costs of
$9,269 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to equity accounted income (loss), net of
$17 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to other income (expense), net of
$(9) million as per the unaudited interim condensed consolidated statements of operating results.
Statements of Adjusted Funds from Operations
| For the nine months ended US$ millions, unaudited |
Business Services |
Infrastructure Services |
Industrials | Corporate and Other |
Total | Attributable to Non- controlling Interests |
As per IFRS Financials |
||||||||||||||
| Revenues | $ | 5,655 | $ | 1,443 | $ | 2,111 | $ | — | $ | 9,209 | $ | 18,377 | $ | 27,586 | |||||||
| Direct operating costs5 | (5,388 | ) | (1,029 | ) | (1,653 | ) | (10 | ) | (8,080 | ) | (15,828 | ) | (23,908 | ) | |||||||
| General and administrative expenses | (101 | ) | (52 | ) | (71 | ) | (63 | ) | (287 | ) | (421 | ) | (708 | ) | |||||||
| Equity accounted Adjusted EBITDA6 | 13 | 84 | 22 | — | 119 | 100 | 219 | ||||||||||||||
| Adjusted EBITDA1,3,4 | $ | 179 | $ | 446 | $ | 409 | $ | (73 | ) | $ | 961 | ||||||||||
| Gain (loss) on acquisitions/dispositions, net | 46 | — | (1 | ) | — | 45 | 134 | 179 | |||||||||||||
| Other income (expense), net7 | 3 | (21 | ) | 2 | — | (16 | ) | (20 | ) | (36 | ) | ||||||||||
| Interest income (expense), net | (47 | ) | (116 | ) | (190 | ) | 1 | (352 | ) | (736 | ) | (1,088 | ) | ||||||||
| Current income tax (expense) recovery | (35 | ) | (6 | ) | (11 | ) | 30 | (22 | ) | (178 | ) | (200 | ) | ||||||||
| Realized disposition gain, current income taxes and interest expense related to equity accounted investments6 | (3 | ) | (34 | ) | (4 | ) | — | (41 | ) | (19 | ) | (60 | ) | ||||||||
| Adjusted FFO1,2,4 | $ | 143 | $ | 269 | $ | 205 | $ | (42 | ) | $ | 575 | ||||||||||
| Depreciation and amortization expense5 | (539 | ) | (1,079 | ) | (1,618 | ) | |||||||||||||||
| Impairment expense, net | (66 | ) | (83 | ) | (149 | ) | |||||||||||||||
| Other income (expense), net7 | (193 | ) | 152 | (41 | ) | ||||||||||||||||
| Deferred income tax (expense) recovery | 57 | 100 | 157 | ||||||||||||||||||
| Non-cash items attributable to equity accounted investments6 | (88 | ) | (45 | ) | (133 | ) | |||||||||||||||
| Net income (loss)4 | $ | (254 | ) | $ | 454 | $ | 200 | ||||||||||||||
Notes:
- The Statements of Adjusted Funds from Operations above differs from net income as presented in Brookfield Business Partners’ Consolidated Statements of Operating Results included elsewhere in this release, which is prepared in accordance with IFRS. Management uses Adjusted FFO and Adjusted EBITDA as key measures to evaluate operating performance. Readers are encouraged to consider all measures in assessing Brookfield Business Partners’ results.
- Adjusted FFO is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as our share of net income and equity accounted income excluding the impact of depreciation and amortization, deferred income taxes, transaction costs, non-cash valuation gains or losses, impairment expense and other items. In order to provide additional insight regarding performance on a cumulative realized basis, Adjusted FFO includes realized disposition gains or losses, along with associated tax impacts, recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. These include gains or losses arising from transactions during the reporting period together with fair value changes recorded in prior periods.
- Adjusted EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Adjusted FFO excluding our share of realized disposition gains and losses, interest income and expense, and current income taxes.
- Attributable to limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders.
- The sum of these amounts equates to direct operating costs of
$25,526 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to equity accounted income (loss), net of
$26 million as per the unaudited interim condensed consolidated statements of operating results. - The sum of these amounts equates to other income (expense), net of
$(77) million as per the unaudited interim condensed consolidated statements of operating results.
Reconciliation of Net Income per Unit
| Three Months Ended |
Nine Months Ended |
||||||||||||
| US$, unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Net income (loss) per unitholder1,2 | $ | 0.59 | $ | (0.12 | ) | $ | 4.06 | $ | (1.69 | ) | |||
| Less: incentive distribution to special limited partners2 | — | — | (0.53 | ) | — | ||||||||
| Net income (loss) per limited partnership unit2,3 | $ | 0.59 | $ | (0.12 | ) | $ | 3.53 | $ | (1.69 | ) | |||
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, 2021 was 148.0 million and 148.3 million, respectively (2020: 150.0 million and 150.2 million). - Net income per limited partnership unit is equal to net income per unitholder less the incentive distribution declared to special limited partnership unitholders during the nine months ended
September 30, 2021 .
Source:
| Title | Document |
|---|---|
English |