Brookfield Business (BBUC) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, the company reported revenues of $2,205 million, an increase from$1,964 million in the same period of 2023, representing a growth of 12.2%[116] - The net loss from continuing operations for the three months ended September 30, 2024, was $511 million, a decrease of$551 million compared to a net income of $40 million for the same period in 2023[117] - For the nine months ended September 30, 2024, the company recognized a net loss from continuing operations of$645 million, compared to a net income of $53 million for the same period in 2023[118] - For the nine months ended September 30, 2024, revenues increased by$262 million (approximately 4.6%) to $5,999 million, compared to$5,737 million for the same period in 2023[122] - Total revenues for the nine months ended September 30, 2024, were $41,663 million, compared to$33,193 million for the same period in 2023, reflecting a significant increase[150] - Net income for the nine months ended September 30, 2024, was $2,003 million, compared to$293 million for the same period in 2023, indicating a substantial improvement[150] Operating Costs - The company incurred direct operating costs of $2,015 million for the three months ended September 30, 2024, compared to$1,760 million in the same period of 2023, reflecting an increase of 14.5%[116] - For the nine months ended September 30, 2024, direct operating costs increased by $482 million (approximately 9.6$5,527 million, compared to $5,045 million for the same period in 2023[125] - General and administrative expenses for the three months ended September 30, 2024, were$78 million, up from $66 million in the same period of 2023, indicating a rise of 18.2$325 million, compared to a gain of $148 million in the same period of 2023[116] - For the nine months ended September 30, 2024, net other expense decreased by$279 million to $197 million, compared to net other income of$82 million for the same period in 2023[133] Cash Flow and Expenses - Cash flow used in operating activities for the nine months ended September 30, 2024, was $216 million, compared to$43 million used in the same period of 2023[162] - Interest expense for the three months ended September 30, 2024, was $207 million, a decrease from$227 million in the same period of 2023, showing a reduction of 8.8%[116] - For the nine months ended September 30, 2024, interest expense, net decreased by $52 million (approximately 7.7$620 million, compared to $672 million for the same period in 2023[129] Assets and Liabilities - As of September 30, 2024, total assets decreased by$557 million to $20,625 million compared to$21,182 million as of December 31, 2023[138] - Financial assets increased by $43 million to$267 million as of September 30, 2024, compared to $224 million as of December 31, 2023[139] - Accounts receivable decreased by$83 million to $3,486 million as of September 30, 2024, from$3,569 million as of December 31, 2023, primarily due to repayment of a receivable and foreign exchange impacts[140] - Total non-recourse borrowings in subsidiaries decreased by $301 million to$8,522 million as of September 30, 2024, from $8,823 million as of December 31, 2023[153] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were$70 million for maintenance and $144 million for growth, down from$132 million and $356 million, respectively, in the same period of 2023[143] Legal and Regulatory Matters - The company is subject to several class action lawsuits related to a cybersecurity incident, with ongoing assessments of potential impacts[169] - The global minimum top-up tax, effective January 1, 2024, is not expected to materially impact the company's financial position[176] - The company adopted amendments to IAS 1 on January 1, 2024, clarifying the classification of debt and liabilities, with no material impact on financial statements[179] Strategic Initiatives - The company aims to enhance cash flows and pursue new acquisitions as part of its operations-oriented approach to building value[115] - The company may make future commitments to Brookfield-sponsored private equity funds for target acquisitions as part of its strategy[170] - The Board of Directors declared a quarterly dividend of$0.0625 per exchangeable share, payable on December 31, 2024[159]