Financial Performance - For the three months ended March 31, 2024, net loss from continuing operations decreased by $8 million to $174 million, compared to a net loss of $182 million for the same period in 2023[134]. - Net income (loss) attributable to Brookfield Business Partners for the three months ended March 31, 2024 was a loss of $150 million, compared to a loss of $140 million for the same period in 2023[135]. - Revenues for the three months ended March 31, 2024 were $1,865 million, consistent with revenues for the same period in 2023, driven by higher recurring revenues in dealer software and technology services[136]. - Revenues for Q1 2024 were $12,015 million, a decrease of 12.7% from $13,758 million in Q1 2023[156]. - Net income for Q1 2024 was $203 million, with total assets at $81,415 million and total liabilities at $63,015 million as of March 31, 2024[156]. - Adjusted EBITDA for Q1 2024 was $622 million, compared to $nil in the previous year[156]. Operating Costs - Direct operating costs for the three months ended March 31, 2024 were $1,652 million, an increase from $1,616 million in the same period of 2023[133]. - Direct operating costs increased by $36 million to $1,652 million for Q1 2024, compared to $1,616 million in Q1 2023[137]. - General and administrative expenses for the three months ended March 31, 2024 were $64 million, compared to $61 million for the same period in 2023[133]. - General and administrative expenses rose by $3 million to $64 million in Q1 2024, up from $61 million in Q1 2023[137]. - Interest expense for the three months ended March 31, 2024 was $210 million, slightly down from $212 million in the same period of 2023[133]. - Interest expense, net decreased by $2 million to $210 million in Q1 2024, compared to $212 million in Q1 2023[137]. - Current income tax expense increased by $34 million to $44 million in Q1 2024, compared to $10 million in Q1 2023[140]. Cash Flow and Liquidity - Cash flow used in operating activities for Q1 2024 was $53 million, an improvement from $140 million used in Q1 2023[168]. - Cash and cash equivalents decreased to $743 million as of March 31, 2024, down from $772 million at the end of 2023[166]. - The company aims to maintain strong liquidity through cash flows, credit facilities, and monetization of mature operations[157]. Assets and Liabilities - Property, plant, and equipment decreased by $121 million to $2,622 million as of March 31, 2024, compared to $2,743 million at the end of 2023[149]. - Financial assets increased by $79 million to $303 million as of March 31, 2024, compared to $224 million at the end of 2023[147]. - Total non-recourse borrowings in subsidiaries decreased to $8,545 million from $8,823 million as of December 31, 2023[158]. - Total contractual obligations as of March 31, 2024, amounted to $17,314 million, with $2,730 million due within one year[179]. Corporate Actions and Changes - The company declared a quarterly dividend of $0.0625 per exchangeable share, payable on June 28, 2024[165]. - The company has a commitment agreement with Brookfield for up to $1.5 billion in perpetual preferred equity securities, with $725 million subscribed from other subsidiaries as of March 31, 2024[162]. - The company continues to focus on enhancing cash flows and opportunistically recycling capital to grow existing operations and make new acquisitions[132]. - The company adopted amendments to IAS 1 regarding the classification of debt and other liabilities as current or non-current, effective January 1, 2024, with no material impact on the unaudited interim condensed consolidated financial statements[186]. - There were no changes in internal control over financial reporting that materially affected or are likely to materially affect internal control during the period from January 1, 2024, to March 31, 2024[185]. - There are currently no future changes to IFRS expected to have material impacts on the company[187]. Discontinued Operations - The company’s nuclear technology services operation was sold in November 2023 and is presented as a discontinued operation[131]. Tax and Regulatory Matters - The 2024 Canadian federal budget included potential changes to tax rules, but the company does not expect them to materially impact its business or investors[128]. - The company has applied a temporary mandatory relief from recognizing and disclosing information related to the global minimum top-up tax, with no material current tax impact for the quarter ended March 31, 2024[184]. Remeasurement and Other Expenses - The exchangeable shares and class B shares were remeasured to reflect a closing price of $22.10 per unit as of March 31, 2024[134]. - Remeasurement loss on exchangeable and class B shares was $111 million in Q1 2024, down from a loss of $121 million in Q1 2023[138]. - Net other expense decreased by $27 million to $11 million in Q1 2024, compared to $38 million in Q1 2023[139]. - Capital expenditures for Q1 2024 included $26 million in maintenance and $48 million in growth, down from $47 million and $96 million respectively in Q1 2023[150].
Brookfield Business (BBUC) - 2024 Q1 - Quarterly Report