Brookfield Business (US:BBUC)2024-08-07 22:27Financial Overview - Brookfield Business Corporation's financial information is derived from unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34, presented in U.S. dollars rounded to the nearest million[131]. - The financial statements are for the interim period ending June 30, 2024, and include results for the three and six months ended June 30, 2024 and 2023[190]. - The financial position and operating results are presented in the unaudited interim condensed consolidated financial statements[190]. - Comprehensive income and cash flow statements are included in the financial disclosures[190]. - Management's discussion and analysis of financial condition and results of operations is provided[190]. Performance Metrics - For the three months ended June 30, 2024, net income from continuing operations decreased by $155 million to $40 million, compared to $195 million for the same period in 2023[134]. - Revenues for the three months ended June 30, 2024, were $1,929 million, an increase of $21 million from $1,908 million in the same period of 2023[136]. - Direct operating costs for the three months ended June 30, 2024, increased by $191 million to $1,860 million, compared to $1,669 million for the same period in 2023[138]. - General and administrative expenses for the three months ended June 30, 2024, rose by $14 million to $77 million, compared to $63 million for the same period in 2023[139]. - Interest expense, net for the three months ended June 30, 2024, decreased by $30 million to $203 million, compared to $233 million for the same period in 2023[140]. - Remeasurement gain on exchangeable shares and class B shares for the three months ended June 30, 2024, was $237 million, compared to a gain of $101 million for the same period in 2023[141]. - Net other expense for the three months ended June 30, 2024, was $59 million, a decrease of $230 million from net other income of $171 million for the same period in 2023[141]. - For the six months ended June 30, 2024, net loss from continuing operations was $134 million, compared to net income of $13 million for the same period in 2023[135]. - Revenues for the six months ended June 30, 2024, were $3,794 million, an increase of $21 million from $3,773 million in the same period of 2023[138]. - Revenues for Q2 2024 were $1,929 million, a 3.4% increase from Q1 2024's $1,865 million[146]. - Net income from continuing operations was $40 million in Q2 2024, compared to a loss of $174 million in Q1 2024[146]. Cash Flow and Liquidity - Cash flow used in operating activities for the six months ended June 30, 2024 was $19 million, compared to $69 million used in the same period in 2023[171]. - Cash flow provided by financing activities was $234 million for the six months ended June 30, 2024, compared to cash used of $239 million in the same period in 2023[172]. - Cash flow used in investing activities was $171 million for the six months ended June 30, 2024, compared to cash flow provided of $375 million in the same period in 2023[173]. - The company aims to maintain strong liquidity through cash flows, credit facilities, and monetization of mature operations[161]. - Cash and cash equivalents as of June 30, 2024 were $754 million, a decrease from $772 million as of December 31, 2023[169]. Assets and Liabilities - Financial assets increased by $100 million to $324 million as of June 30, 2024, compared to $224 million at December 31, 2023[151]. - Accounts receivable decreased by $234 million to $3,335 million as of June 30, 2024, from $3,569 million at December 31, 2023[152]. - Property, plant, and equipment (PP&E) decreased by $72 million to $2,671 million as of June 30, 2024, primarily due to foreign exchange impacts[153]. - Intangible assets decreased by $520 million to $6,411 million as of June 30, 2024, mainly due to amortization and foreign exchange movements[154]. - Accounts payable increased by $212 million to $5,030 million as of June 30, 2024, compared to $4,818 million at December 31, 2023[156]. - Non-recourse borrowings in subsidiaries decreased to $8,332 million as of June 30, 2024, from $8,823 million at December 31, 2023[162]. - Total non-recourse borrowings in subsidiaries decreased by $491 million from $8,823 million as of December 31, 2023 to $8,332 million as of June 30, 2024[163]. - The company has a total of $16,236 million in undiscounted contractual obligations as of June 30, 2024[185]. Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions through an operations-oriented approach, focusing on profitability and sustainability[132]. - The company emphasizes the importance of reviewing the partnership's periodic reporting for shareholders[120]. - The company has an equity commitment of $2 billion from its partnership to maximize access to equity capital[164]. - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on September 27, 2024[168]. - The company has not repurchased any of its exchangeable shares during the six months ended June 30, 2024[178]. Risks and Uncertainties - Forward-looking statements in the MD&A are subject to risks and uncertainties that could cause actual results to differ materially[122]. - The MD&A includes cautionary statements regarding forward-looking information, highlighting the potential for changes in economic conditions and other factors[123]. - The company does not have control over all businesses in which it owns investments, which may impact its financial performance[127]. - No future changes to IFRS are expected to have material impacts on the company[188].