Brookfield Business Partners L.P. (NYSE:BBU) Q1 2024 Earnings Call Transcript

Geoffrey Kwan: Okay. Thank you.

Operator: Thank you. One moment please for our next question. And our next question comes from the line of Nik Priebe with CIBC Capital Markets.

Nik Priebe: Okay, thanks. Just going back to CDK, adjusted EBITDA at least the reported figure which reflects BBU share was up almost 30%. But part of that was related to the organic growth and part of it was related to or at least attributed to an increase in your economic ownership. Are you able to just break down or just say what EBITDA growth would have been organically on a 100% basis, excluding the impact of your increased ownership percentage? I’m just trying to get a sense of what the recent organic growth trajectory has been in that business?

Jaspreet Dehl: Sure, Nik. Bear with me one second. I can give you a sense. I’d say, the impact of the ownership change in the business is about, like we went from a 20% ownership to 26%. So you could back into the math, but I’d say about $10 million, $15 million.

Nik Priebe: Got it. Okay. That’s very helpful. And then just turning to Clarios, it’s been three consecutively strong quarters in terms of the earnings contribution from that business. Obviously, that helps accelerate the deleveraging objective by growing the denominator in that ratio. The goal to get to four times, but where would the leverage ratio of Clarios sit today on an LTM basis?

Jaspreet Dehl: Yes, it’ll be just around four times, Nik 4 or 4.1 around there.

Nik Priebe: Got it. Okay. Very good. All right. That’s it for me. Thank you.

Operator: Thank you. And I’m showing no further questions. So with that, I’ll hand the call back over to CEO Anuj Ranjan for any closing remarks.

Anuj Ranjan: Thank you. And thank you all for joining. We look forward to speaking again next quarter.

Operator: Ladies and gentlemen, thank you for participating. This does conclude today’s program and you may now disconnect. Thank you.