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Name | Symbol | Market | Type |
---|---|---|---|
Brookfield Business Partners LP | TSX:BBU.UN | Toronto | Trust |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.90 | 25.75 | 25.90 | 26.00 | 25.24 | 26.00 | 80,294 | 21:11:01 |
“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
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:
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:
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:
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:
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:
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:
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