BROOKFIELD, NEWS, May 03, 2024 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE:BBUC, BBU, TSX:BBUC, BBU.UN)) announced today financial results for the quarter ended March 31, 2024. "We are pleased with our first quarter results supported by the ongoing performance of our largest operations," said Anuj Ranjan, CEO of Brookfield Business Partners. "We generated strong margins and the progress achieved on our value creation plans is contributing to higher quality earnings of our operations. Our access to capital continues to be favorable and we generated approximately $300 million of net proceeds from our capital recycling initiatives including agreements to sell two small operations."   Three Months EndedMarch 31, US$ millions (except per unit amounts), unaudited   2024     2023   Net income (loss) attributable to Unitholders1 $ 48   $ 74   Net income (loss) per limited partnership unit2 $ 0.23   $ 0.34         Adjusted EBITDA3 $ 544   $ 622     Net income attributable to Unitholders for the three months ended March 31, 2024 was $48 million ($0.23 income per limited partnership unit) compared to net income of $74 million ($0.34 per limited partnership unit) in the prior period. Adjusted EBITDA for the three months ended March 31, 2024 was $544 million compared to $622 million in the prior period. Prior period results included contribution from our nuclear technology services operation which was sold in November 2023. Operational Update The following table presents Adjusted EBITDA by segment:   Three Months EndedMarch 31, US$ millions, unaudited   2024     2023   Industrials $ 228   $ 219   Business Services   205     212   Infrastructure Services   143     225   Corporate and Other   (32 )   (34 ) Adjusted EBITDA $ 544   $ 622   Our Industrials segment generated Adjusted EBITDA of $228 million for the three months ended March 31, 2024, compared to $219 million during the same period in 2023. Strong performance at our advanced energy storage operation was partially offset by reduced contribution from engineered components manufacturing. Our Business Services segment generated Adjusted EBITDA of $205 million for the three months ended March 31, 2024, compared to $212 million during the same period in 2023. Increased contribution from our dealer software and technology services operation and residential mortgage insurer was offset by reduced performance at our construction operation and our Australian healthcare services operation which continues to operate in a challenging environment. Our Infrastructure Services segment generated Adjusted EBITDA of $143 million for the three months ended March 31, 2024, compared to $225 million during the same period in 2023 which included contribution from our nuclear technology services operation that was sold in November 2023. Current period results benefited from improved performance at work access services offset by reduced contribution from offshore oil services. The following table presents Adjusted EFO4 by segment:   Three Months EndedMarch 31, US$ millions, unaudited   2024     2023   Adjusted EFO     Industrials $ 180   $ 162   Business Services   168     213   Infrastructure Services   72     86   Corporate and Other   (89 )   (80 ) Adjusted EFO for the three months ended March 31, 2024 reflected increased contribution from our Industrials segment offset by the disposition of our nuclear technology services operation in our Infrastructure Services segment and the impact of higher interest expense in our Business Services segment. Adjusted EFO in the current period included $50 million of other income related to a distribution at our entertainment operation in our Business Services segment and $62 million of net gains primarily related to the sale of public securities in our Industrials segment. Adjusted EFO in the prior period included approximately $130 million of net gains primarily related to the sale of public securities and our residential property management operation in our Business Services segment. Strategic Initiatives Capital RecyclingDuring the quarter, we reached an agreement to sell our Canadian aggregates production operation and the U.K. and European assets of our road fuels operation. Total net proceeds from these transactions is expected to be approximately $390 million of which BBU's share is expected to be approximately $180 million. RefinancingSubsequent to quarter end, BrandSafway, our work access services operation completed the repricing of a $1.3 billion term loan at SOFR plus 4.50%, reducing the interest rate spread on the debt from SOFR plus 5.50%. Total proceeds raised of $1.5 billion were upsized from the original loan size of $1.3 billion and excess proceeds were used to repay the existing borrowings. Liquidity We ended the quarter with approximately $1.6 billion of liquidity at the corporate level including $137 million of cash and liquid securities, $25 million of remaining preferred equity commitment from Brookfield Corporation and $1.4 billion of availability on our corporate credit facilities. Distribution The Board of Directors has declared a quarterly distribution in the amount of $0.0625 per unit, payable on June 28, 2024 to unitholders of record as at the close of business on May 31, 2024. Additional Information The Board has reviewed and approved this news release, including the summarized unaudited interim 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, redemption-exchange unitholders, special limited partnership unitholders and BBUC exchangeable shareholders. Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding for the three months ended March 31, 2024 which was 74.3 million (March 31, 2023: 74.6 million). Adjusted EBITDA is a non-IFRS measure of operating performance presented as net income and equity accounted income at the partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of interest income (expense), net, income taxes, depreciation and amortization expense, gains (losses) on acquisitions/dispositions, net, transaction costs, restructuring charges, revaluation gains or losses, impairment expenses or reversals, other income or expenses, and preferred equity distributions. The partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. The partnership believes that Adjusted EBITDA provides a comprehensive understanding of the ability of its businesses to generate recurring earnings which allows users to better understand and evaluate the underlying financial performance of the partnership's operations and excludes items that the partnership believes do not directly relate to revenue earning activities and are not normal, recurring items necessary for business operations. Please refer to the reconciliation of net income (loss) to Adjusted EBITDA included in this release. Adjusted EFO is the partnership's segment measure of profit or loss and is presented as net income and equity accounted income at the partnership's economic ownership interest in consolidated subsidiaries and equity accounted investments, respectively, excluding the impact of depreciation and amortization expense, deferred income taxes, transaction costs, restructuring charges, unrealized revaluation gains or losses, impairment expenses or reversals and other income or expense items that are not directly related to revenue generating activities. The partnership's economic ownership interest in consolidated subsidiaries excludes amounts attributable to non-controlling interests consistent with how the partnership determines net income attributable to non-controlling interests in its unaudited interim condensed consolidated statements of operating results. In order to provide additional insight regarding the partnership's operating performance over the lifecycle of an investment, Adjusted EFO includes the impact of preferred equity distributions and realized disposition gains or losses recorded in net income, other comprehensive income, or directly in equity, such as ownership changes. Adjusted EFO does not include legal and other provisions that may occur from time to time in the partnership's operations and that are one-time or non-recurring and not directly tied to the partnership's operations, such as those for litigation or contingencies. Adjusted EFO includes expected credit losses and bad debt allowances recorded in the normal course of the partnership's operations. Adjusted EFO allows the partnership to evaluate its segments on the basis of return on invested capital generated by its operations and allows the partnership to evaluate the performance of its segments on a levered basis. Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Corporation ((NYSE, TSX:BBUC), a corporation, or Brookfield Business Partners L.P. (NYSE:BBU, TSX:BBU), a limited partnership. For more information, please visit https://bbu.brookfield.com. Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $900 billion of assets under management. Please note that Brookfield Business Partners' previous audited annual and unaudited quarterly reports have been filed on SEDAR+ and EDGAR, and are available at https://bbu.brookfield.com under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request. For more information, please contact:     Media:Marie FullerTel: +44 207 408 8375Email: Investors:Alan FlemingTel: +1 (416) 645-2736Email:     Conference Call and Quarterly Earnings Webcast Details Investors, analysts and other interested parties can access Brookfield Business Partners' first quarter 2024 results as well as the Letter to Unitholders and Supplemental Information on our website https://bbu.brookfield.com under Reports & Filings. The results call can be accessed via webcast on May 3, 2024 at 10:00 a.m. Eastern Time at BBU2024Q1Webcast or participants can preregister at BBU2024Q1ConferenceCall. Upon registering, participants will be emailed a dial-in number, direct passcode, and unique PIN. A replay of the webcast will be available at https://bbu.brookfield.com. Brookfield Business Partners L.P. Consolidated Statements of Financial Position     As at US$ millions, unaudited March 31, 2024   December 31, 2023             Assets           Cash and cash equivalents   $ 3,148     $ 3,252 Financial assets     13,138       13,176 Accounts and other receivable, net     6,915       6,563 Inventory and other assets     5,187       5,321 Property, plant and equipment     15,406       15,724 Deferred income tax assets     1,216       1,220 Intangible assets     20,302       20,846 Equity accounted investments     2,143       2,154 Goodwill     13,960       14,129 Total Assets   $ 81,415     $ 82,385             Liabilities and Equity           Liabilities           Corporate borrowings   $ 1,870     $ 1,440 Accounts payable and other     18,046       18,378 Non-recourse borrowings in subsidiaries of Brookfield Business Partners     40,013       40,809 Deferred income tax liabilities     3,086       3,226             Equity           Limited partners $ 1,887     $ 1,909   Non-controlling interests attributable to:           Redemption-exchange units   1,771       1,792   Special limited partner   —       —   BBUC exchangeable shares   1,853       1,875   Preferred securities   740       740   Interest of others in operating subsidiaries   12,149       12,216         18,400       18,532 Total Liabilities and Equity   $ 81,415     $ 82,385 Brookfield Business Partners L.P. Consolidated Statements of Operating Results   US$ millions, unaudited Three Months EndedMarch 31,   2024     2023         Revenues $ 12,015   $ 13,758   Direct operating costs   (10,878)