 BROOKFIELD, News, Aug. 06, 2020 GLOBE NEWSWIRE -- Brookfield Business Partners L.P. NYSE: BBU TSX: BBU.UN Brookfield Business Partners announced today financial results for the quarter ended June 30, 2020. Our business faced challenging conditions during the second quarter as a result of the global economic shutdown. We addressed this unprecedented situation by rapidly reducing costs, maximizing liquidity and implementing measures to protect employees, said Cyrus Madon, CEO of Brookfield Business Partners. Activity levels at virtually all our operations increased as we entered the third quarter reflecting the essential nature of products and services that our businesses provide. Three Months Ended June 30, Six Months Ended June 30, US millions except per unit amounts, unaudited 2020 2019 2020 2019 Net income loss attributable to unitholders1 109 107 235 169 Net income loss per limited partnership unit2 0.73 0.82 1.57 1.30 Company EBITDA1,3 286 237 580 503 Company FFO1,4 173 435 367 640 Company FFO per unit2 1.15 3.35 2.44 4.94 Company FFO, excluding gain loss on acquisitionsdispositions1,4 173 138 325 343 Company FFO, excluding gain loss on acquisitionsdispositions per unit2 1.15 1.06 2.16 2.65 Brookfield Business Partners generated Company EBITDA of 286 million for the three months ended June 30, 2020 compared to 237 million for the three months ended June 30, 2019 reflecting increased EBITDA in our Infrastructure Services segment, partially offset by reduced contribution from our Industrials segment. For the three months ended June 30, 2020 Company FFO was 173 million 1.15 per unit compared to 435 million 3.35 per unit in the prior year which included the benefit of gains on the sale of operations within our Business Services segment. Company FFO excluding gains on dispositions for the three months ended June 30, 2019, was 138 million 1.06 per unit. The net loss attributable to unitholders for the three months ended June 30, 2020 was 109 million loss of 0.73 per unit compared to net income of 107 million 0.82 per unit in the prior year. The net loss in the current period includes provisions recorded during the quarter, partially offset by mark to market gains on financial assets, including public securities investments.Operational UpdateThe following table presents Company EBITDA by segment: Three Months Ended June 30, Six Months Ended June 30, US millions, unaudited 2020 2019 2020 2019 Business Services 64 61 83 106 Infrastructure Services 148 88 304 223 Industrials 98 108 243 215 Corporate and Other 24 20 50 41 Company EBITDA1,3 286 237 580 503 Our Business Services segment generated Company EBITDA of 64 million during the three months ended June 30, 2020, compared with 61 million in the same period in 2019. Results benefited from contributions by Healthscope, Ouro Verde and Genworth Canada, which we acquired during 2019, partially offset by the impact of the economic shutdown on our operations. Prior year results included contributions from our facilities management and executive relocation businesses which were sold during the second quarter of 2019.Our Infrastructure Services segment generated Company EBITDA of 148 million during the three months ended June 30, 2020, compared to 88 million in the same period in 2019. Results benefited from strong performance at Westinghouse, our increased ownership in Altera Infrastructure and contribution from BrandSafway which we acquired in January 2020, partially offset by the impact of the economic shutdown on our operations.Our Industrials segment generated Company EBITDA of 98 million during the three months ended June 30, 2020 compared to 108 million in the same period in 2019. Results reflect decreased contribution from GrafTech due to lower sales volumes and price, and the impact of the economic shutdown on our operations at Cardone. Contribution from Clarios increased compared to the prior year. Prior year results also included contribution from our palladium producer which was sold in 2019.The following table presents Company FFO by segment: Three Months Ended June 30, Six Months Ended June 30, US millions except per unit amounts, unaudited 2020 2019 2020 2019 Business Services 39 342 81 374 Infrastructure Services 87 54 191 156 Industrials 62 46 119 127 Corporate and Other 15 7 24 17 Company FFO1,4 173 435 367 640 Gain loss on acquisitionsdispositions, net 297 42 297 Company FFO, excluding gain loss on acquisitionsdispositions1,4 173 138 325 343 Company FFO, excluding gain loss on acquisitionsdispositions per unit2 1.15 1.06 2.16 2.65 Company FFO, excluding gain loss on acquisitionsdispositions, for the three months ended June 30, 2020 increased to 173 million from 138 million in the same period in 2019 primarily due to incremental contributions from recent acquisitions, partially offset by reduced performance across our operations as a result of the economic shutdown. Company FFO for the three months ended June 30, 2019 of 435 million included after-tax gains of 297 million recognized on businesses sold in the second quarter of 2019.LiquidityWe ended the quarter with approximately 1.9 billion of liquidity at the corporate level including 243 million of cash and liquid securities and 1.7 billion of undrawn credit facilities. Subsequent to the end of the quarter, we increased our credit facilities by 500 million to an aggregate capacity of 2.6 billion resulting in total proforma liquidity, including funding for known transactions, of approximately 2.3 billion. In addition, our operating companies have approximately 5 billion in additional liquidity comprised of cash and available credit facilities.Strategic Initiatives IndoStar Capital Finance IndoStar Subsequent to the end of the quarter, together with institutional partners, we acquired a 57 controlling interest in IndoStar for approximately 295 million. Brookfield Business Partners share of the equity purchase price was approximately 105 million and we own a 20 ownership interest. IndoStar is a financing company focused on commercial vehicle lending and affordable home financing in India. GrafTech International GrafTech Subsequent to the end of the quarter, we executed a partial distribution of GrafTech common shares to our institutional partners that reduced the size of our control position in the company. The distribution advances our efforts to monetize our investment in GrafTech and increases the liquidity of GrafTechs freely tradable common shares. Brookfield Business Partners continues to own approximately 69 million shares in GrafTech, 17 million of which we now own directly and can deal with separately from our partners. Superior Plus Corp. Superior Together with institutional partners, we subscribed for 260 million of convertible preferred shares of Superior. Superior is a leading propane distributor in North America and our investment will help accelerate the companys growth objectives. The shares have a minimum coupon of 7.25 and convert to a 15 common equity stake in Superior. Brookfield Business Partners share of the investment is 45 million. Cardone Industries During the second quarter, together with institutional partners, we recapitalized Cardone with 180 million in new equity. Brookfield Business Partners share was approximately 95 million for a 52 ownership interest. As part of the recapitalization Cardone secured concessions from its senior debtholders including the extension of maturities on its bank debt. Cardone is a remanufacturer of automotive replacement parts and the recapitalization strengthens its capital structure to further progress its operational turnaround. Unit Repurchase Program For the three months ended June 30, 2020 we repurchased 177,571 of BBU units under our normal course issuer bid NCIB.DistributionThe Board of Directors has declared a quarterly distribution in the amount of 0.0625 per unit, payable on September 30, 2020 to unitholders of record as at the close of business on August 31, 2020.Additional InformationThe Board has reviewed and approved this news release, including the summarized unaudited consolidated financial statements contained herein.Brookfield Business Partners Letter to Unitholders and the Supplemental Information are available at 1. Attributable to limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders. 2. Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redemption exchange units held by Brookfield Asset Management for limited partnership units, for the three and six months ended June 30, 2020 was 150.1 million and 150.3 million 2019: 129.9 million and 129.5 million. 3. Company EBITDA is presented as a net amount attributable to unitholders and is a non-IFRS measure and is calculated as Company FFO excluding the impact of realized disposition gains losses, interest income expense, current income taxes, the impact of realized disposition gains losses, current income taxes and interest income expense related to equity accounted investments, and other items. When determining Company EBITDA, we include our proportionate share of Company EBITDA of equity accounted investments. A reconciliation of net income to Company EBITDA is available on pages 8-11 of this release. 4. 