Brookfield Business (BBUC) - 2022 Q3 - Quarterly Report

Financial Performance - Total assets as of September 30, 2022, amounted to $26.6 billion, with revenues of $7.5 billion for the nine months ended September 30, 2022[172]. - For the three months ended September 30, 2022, revenues increased by $565 million to $2,905 million, compared to $2,340 million for the same period in 2021[186]. - For the nine months ended September 30, 2022, revenues increased by $313 million to $7,474 million, compared to $7,161 million for the same period in 2021[187]. - Net income for the three months ended September 30, 2022, was $31 million, compared to a net loss of $21 million for the same period in 2021[185]. - Net income for the nine months ended September 30, 2022, was $918 million, compared to a net loss of $28 million for the same period in 2021[185]. - Adjusted EBITDA for the three months ended September 30, 2022, was $627 million, compared to $443 million in the same period of 2021[222]. Revenue Breakdown - The business services segment generated revenues of $4.3 billion, while infrastructure services and industrials contributed $2.6 billion and $644 million, respectively[173]. - The nuclear technology services operations generated revenues primarily from recurring refueling and maintenance services, with a significant focus on the global nuclear power generation industry[179]. - The healthcare services operations include 39 hospitals, primarily generating revenues from private health insurance funds and government-related bodies[175]. - The construction operations focus on large-scale projects, with revenues recognized based on the stage of completion of contracts[177]. Assets and Liabilities - Total assets as of September 30, 2022, were $16,719 million, up from $7,122 million as of December 31, 2021[210]. - Total liabilities increased to $12,559 million as of September 30, 2022, compared to $5,177 million as of December 31, 2021[210]. - Intangible assets increased by $5,040 million to $9,266 million as at September 30, 2022, compared to $4,226 million as at December 31, 2021[200]. - Goodwill increased by $4,590 million to $6,806 million as at September 30, 2022, compared to $2,216 million as at December 31, 2021[202]. - Financial assets increased by $262 million to $611 million as at September 30, 2022, compared to $349 million as at December 31, 2021[196]. - Accounts receivable and other, net increased by $335 million to $2,616 million as at September 30, 2022, compared to $2,281 million as at December 31, 2021[198]. Cash Flow and Financing - Total cash flow provided by operating activities for the nine months ended September 30, 2022 was $60 million, a decrease of 86% compared to $436 million for the same period in 2021[235]. - Total cash flow provided by financing activities for the nine months ended September 30, 2022 was $9,000 million, compared to cash flow used in financing activities of $27 million for the same period in 2021[236]. - Total cash flow used in investing activities was $9,015 million for the nine months ended September 30, 2022, significantly higher than $327 million for the same period in 2021[237]. - Cash and cash equivalents as of September 30, 2022, were $883 million, slightly down from $894 million as of December 31, 2021[233]. Acquisitions and Investments - The company completed the acquisition of CDK Global Inc. for a total consideration of $8.3 billion, funded with debt and equity, expecting a 20% economic interest[178]. - In May 2022, the company acquired BHI Energy, creating a fully integrated outage, maintenance, and modification services business in the nuclear industry[180]. - An agreement was made to sell the nuclear technology services operations for an enterprise value of approximately $8 billion, expected to close in the second half of 2023[180]. - The company reported capital contributions from non-controlling interests of $1,989 million, primarily for the acquisition of global dealer software and technology services operations[236]. - The company’s acquisitions in 2022 included a global dealer software and technology services operation, impacting both cash flow and operational capabilities[237]. Operational Strategy - The company aims to enhance cash flows and pursue new acquisitions through an operations-oriented approach[171]. - The cash flow from operating activities was primarily driven by nuclear technology services and construction operations, offset by changes in non-cash working capital and transaction costs related to acquisitions[235]. - The company executed agreements for indemnification and guarantees to third parties, but historically has made no significant payments under such agreements[240]. Equity and Dividends - Total equity attributable to Brookfield Business Partners increased to $4,160 million as of September 30, 2022, from $1,945 million as of December 31, 2021[210]. - The company declared a quarterly dividend of $0.0625 per exchangeable share, payable on December 30, 2022[232].