Onex Corporation
TSX : OCX

Onex Corporation

November 11, 2009 16:00 ET

Onex Reports Third Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) today announced its consolidated financial results for the third quarter and nine months ended September 30, 2009.

Third Quarter 2009 Highlights

- Onex sold 3.5 million shares of Emergency Medical Services for net proceeds of approximately $148 million including carried interest, resulting in a gain of $90 million. This was a multiple of approximately 6 times invested capital.

- Onex announced, and subsequently completed, the sale of Celestica shares for net proceeds of $104 million.

- Uncalled third-party committed capital for the Onex Partners and ONCAP Funds totaled US$3.5 billion.

- Onex had approximately $900 million of cash and near-cash investments and no debt at the parent company, including the proceeds from the sale of Celestica shares.

Onex is a private equity investor and asset manager generating value from (i) growth in the Company's $3.9 billion of proprietary capital; (ii) management fees based on the US$6.8 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.

Private Equity Investing

"Over the last twelve months, the impact on the global economy and the financial markets has been unprecedented. While much of what has been experienced is negative, often adverse circumstances bring silver linings. In the wake of this recession, one of the benefits to healthy businesses has been the ability to substantially reduce costs and improve efficiencies," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "With our support, many of our operating companies, particularly the industrial ones, have done just that. While some are seeing improvement in business activity, they remain acutely focused on maintaining their leaner cost structures. As each quarter passes, we are ever more encouraged by the fortitude of our businesses; they have deftly adjusted not only to weather the downturn but to emerge as even stronger competitors in their respective industries."

In recent months, equity markets have rallied with considerable vigour, resulting in increased activity of initial and secondary offerings that were not possible earlier this year. Onex participated in the markets with the recent sales of shares in Emergency Medical Services and Celestica with both offerings providing attractive returns on Onex' invested capital and liquidity for future investments.

In August, Onex, Onex Partners I and certain limited partners sold 9.2 million shares of Emergency Medical Services ("EMSC") through a secondary public offering at a price of US$40.00 per share before commissions. Onex sold 3.5 million shares in the offering and received net proceeds of approximately $148 million including carried interest. Based on a per-share cash cost of US$6.67 to acquire the business in 2005, this sale of shares resulted in a multiple of invested capital of almost 6 times. The Onex group continues to hold an approximate 53% equity interest in EMSC, of which Onex' share is 20%. As well, the Onex group continues to retain about 92% of the voting interest.

In September, Onex announced the sale of a portion of its investment in Celestica through a secondary offering. The sale has subsequently closed, providing the Company with net proceeds of $104 million for total proceeds of $939 million since acquisition. To date, Onex' total investment has generated a multiple of capital of about 6 times. Onex continues to own an approximate 8% equity interest in Celestica and holds about 69% of the voting interest.

During the course of the third quarter, the credit markets began to show a significant recovery, with financing available for mid-sized acquisitions and selectively for larger transactions, albeit at higher costs and on more stringent credit terms. The bond market has also shown a significant level of activity, with increases in value and availability of funds, but primarily for existing borrowers.

"We remain optimistic that there will be attractive acquisition opportunities for us. Onex' experience in corporate carve-outs from large multi-nationals, distressed-for-control investing, and restructurings generally positions us well, as we expect these opportunities will arise in the current environment," continued Mr. Schwartz. "These types of transactions tend to be complex in nature and require lengthy due diligence and negotiations. We have had success with these acquisitions in the past and hope to find similar situations in the future where we can acquire businesses at reasonable purchase prices and create value through earnings growth."

With approximately $900 million of cash and near-cash investments, no debt and US$3.5 billion of uncalled third-party capital available, Onex remains well positioned to actively participate in significant investment opportunities.

The repositioning of the Tropicana Las Vegas, the first acquisition for Onex Partners III, is progressing well. During the quarter, a US$75 million preferred share offering was subscribed to by Onex and certain other equity holders to fund the start of the transformation. A first-class management team has been assembled and is actively working on the property's physical and operational transformation during a cyclical low period on the Las Vegas Strip.

By staying true to its disciplined, active ownership approach to value-oriented investing, Onex has produced impressive returns over its 25-year history by transforming undervalued businesses into industry-leading companies across multiple economic and industry cycles. As of September 30, 2009, Onex had generated a 25-year gross IRR of 29% and an average multiple of 3.4 times invested capital from its private equity investing.

Onex continues to believe that its success in building companies and its record of capital preservation and superior returns are direct results of the strong alignment of interests between Onex, its shareholders, the limited partners and the management team. At September 30, 2009, Onex' management team had over $1 billion invested in Onex shares and in its operating companies.

Asset Management

Onex' asset management business continues to add value through the predictable and increasing management fees it earns on third-party capital and the meaningful carried interest opportunity on that capital.

In a very challenging fundraising environment, Onex has raised over US$3.1 billion of third-party capital for Onex Partners III. With the success of its third large-cap fund, Onex has almost doubled its total fee-earning assets under management. As a result, the current annualized rate of management fees is approximately US$85 million for the Onex Partners and ONCAP funds, which offsets the Company's operating costs. In addition, the Company has an 8% carried interest opportunity on approximately US$2.9 billion of invested capital and on US$3.5 billion of uncalled capital.

Consolidated Third-Quarter Results

Onex' quarterly consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses by Onex, the impact of foreign currency translation and varying business cycles at its operating companies.

On a consolidated basis for the quarter, revenues decreased 14% to $6.1 billion and operating earnings rose 3% to $514 million compared to the third quarter in 2008. Net loss for the period was $180 million compared to net earnings of $38 million in the same period last year. The majority of the consolidated net loss was a result of impairment charges at Hawker Beechcraft related to goodwill, intangibles and other assets in its business and general aviation segment. The sale of EMSC shares during the quarter provided a pre-tax net accounting gain of $90 million and cash to Onex of approximately $148 million. Onex reported cash generated from operations of $474 million compared to $507 million in the third quarter of 2008.

On a consolidated basis for the nine months ended September 30, 2009, revenues were down 7% to $18.7 billion and operating earnings increased 5% to $1.4 billion compared to the same period last year.

Net earnings for the period grew to $72 million from $65 million and Onex reported cash generated from operations of $778 million compared to $955 million for nine months ended September 30, 2008.

The Company paid a third-quarter dividend of $0.0275 per subordinate voting share on October 30, 2009 to shareholders of record on October 9, 2009.

Operating earnings as referred to in this press release are a non-GAAP measure. See Management's Discussion and Analysis for the definition and reconciliation to the consolidated statements of earnings.

Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the three and nine months ended September 30, 2009 and 2008. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com.

Webcast

Onex management will host a conference call to review the Company's third-quarter results at 4:30 p.m. today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.

About Onex

Onex is one of North America's oldest and most successful private equity firms. Onex is committed to acquiring and building high-quality businesses in partnership with talented management teams through the Onex Partners and ONCAP families of Funds. Onex also manages investment platforms focused on real estate and credit securities. In total, the Company manages approximately US$11 billion. Onex generates annual management fee income and is entitled to a carried interest on approximately US$7 billion of third-party capital, and also invests its own capital directly and as a substantial limited partner in its Funds.

Onex' businesses generate annual revenues of $33 billion, have assets of $38 billion and employ 206,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.



Onex Corporation

CONSOLIDATED BALANCE SHEETS

----------------------------------------------------------------------------
(Unaudited)
As at September As at December
30 31
(in millions of dollars) 2009 2008
----------------------------------------------------------------------------
Assets
Current assets
Cash and short-term investments $ 3,237 $ 2,921
Marketable securities 616 842
Accounts receivable 3,265 4,014
Inventories 3,223 3,471
Other current assets $ 1,356 $ 1,695
----------------------------------------------------------------------------
11,697 12,943
Property, plant and equipment 3,802 4,066
Investments 3,332 3,897
Other long-term assets 2,681 3,125
Intangible assets 2,224 2,755
Goodwill 2,485 2,946
----------------------------------------------------------------------------
$ 26,221 $ 29,732
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 3,843 $ 4,617
Other current liabilities 949 1,196
Current portion of long-term debt, without
recourse to Onex 590 532
Current portion of obligations under capital
leases, without recourse to Onex 23 25
Current portion of warranty reserves and
unearned premiums $ 1,445 $ 1,698
----------------------------------------------------------------------------
6,850 8,068
Long-term debt of operating companies, without
recourse to Onex 5,893 7,143
Long-term portion of obligations under capital
leases of operating companies,
without recourse to Onex 36 46
Long-term portion of warranty reserves and
unearned premiums 2,145 2,561
Other long-term liabilities 2,081 2,287
Future income taxes 1,223 1,450
----------------------------------------------------------------------------
18,228 21,555
Non-controlling interests 6,485 6,624
Shareholders' equity 1,508 1,553
----------------------------------------------------------------------------
$ 26,221 $ 29,732
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Onex Corporation

CONSOLIDATED STATEMENTS OF EARNINGS

----------------------------------------------------------------------------
Three months ended Nine months
September 30 ended September 30
----------------------------------------
(Unaudited)
(in millions of dollars, except
per share data) 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenues $ 6,078 $ 7,066 $ 18,678 $ 20,107
Cost of sales (4,738) (5,735) (14,645) (16,284)
Selling, general and administrative
expenses (683) (684) (2,146) (2,043)
----------------------------------------------------------------------------
Earnings Before the Undernoted Items 657 647 1,887 1,780
Amortization of property, plant and
equipment (153) (147) (483) (447)
Amortization of intangible assets
and deferred charges (85) (84) (281) (270)
Interest expense of operating
companies (114) (126) (392) (379)
Debt prepayment expense - - (6) -
Interest income 10 1 44 41
Loss from equity-accounted
investments (383) (45) (429) (56)
Foreign exchange gains (loss) (43) (8) (73) 25
Stock-based compensation recovery (95) 21 (152) 53
(expense)
Other income (expense) 22 (6) 90 10
Gains on disposition of operating
investments 276 - 460 -
Acquisition, restructuring and other
expenses (74) (33) (170) (146)
Writedown of goodwill, intangible
assets and long-lived assets (1) (10) (115) (13)
----------------------------------------------------------------------------
Earnings before income taxes,
non-controlling
interests and discontinued
operations 17 210 380 598
Provision for income taxes (112) (80) (103) (227)
Non-controlling interests (85) (96) (205) (315)
----------------------------------------------------------------------------
Earnings (loss) from continuing
operations (180) 34 72 56
Earnings from discontinued
operations - 4 - 9
----------------------------------------------------------------------------
Net Earnings (Loss) for the Period $ (180) $ 38 $ 72 $ 65
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss) per Subordinate
Voting Share
Basic and Diluted:
Continuing operations $ (1.48) $ 0.26 $ 0.59 $ 0.44
Discontinued operations $ - $ 0.04 $ - $ 0.08
Net earnings (loss) $ (1.48) $ 0.30 $ 0.59 $ 0.52
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Onex Corporation

CONSOLIDATED STATEMENTS OF CASH FLOWS

----------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------------

(Unaudited)
(in millions of dollars) 2009 2008 2009 2008
----------------------------------------------------------------------------
Operating Activities
Net earnings (loss) for the $ (180) $ 38 $ 72 $ 65
period
Earnings from discontinued
operations - (4) - (9)
Items not affecting cash:
Amortization of
property, plant and
equipment 153 147 483 447
Amortization of
intangible assets and
deferred charges 85 84 281 270
Amortization of deferred
warranty costs 19 26 60 4
Debt prepayment expense - - 6 -
Loss from equity-accounted
investments 383 45 429 56
Foreign exchange loss
(gains) 42 (25) 64 (40)
Stock-based compensation
expense (recovery) 95 (21) 152 (53)
Gains on dispositions of
operating investments (276) - (460) -
Writedown of goodwill,
intangible assets and
long-lived assets 1 10 115 13
Non-cash component of
restructuring 6 1 7 2
Non-controlling
interests 85 96 205 315
Future income taxes (2) 1 (143) (21)
Other 32 17 (40) 36
----------------------------------------------------------------------------
443 415 1,231 1,085
Changes in non-cash working
capital items:
Accounts receivable (58) 52 270 (181)
Inventories (190) (96) (256) (397)
Other current assets 22 25 (43) 77
Accounts payable,
accrued liabilities and
other current liabilities 288 103 (267) 307
----------------------------------------------------------------------------
Increase (decrease) in cash
due to changes in working
capital items 62 84 (296) (194)
Increase (decrease) in
warranty reserves and
unearned
premiums and other
liabilities (31) 8 (157) 64
----------------------------------------------------------------------------
474 507 778 955
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 492 272 1,198 775
Repayment of long-term debt (392) (282) (1,363) (879)
Cash dividends paid (3) (3) (10) (10)
Repurchase of share capital (5) (44) (6) (97)
Issuance of share capital
provided by L.P. investors
and operating companies 79 226 301 309
Distributions by operating
companies and to L.P.
investors (285) (47) (289) (104)
Increase due to other
financing activities (14) (4) (3) (5)
----------------------------------------------------------------------------
(128) 118 (172) (11)
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating
companies, net of cash in
acquired companies of
$105 (2008 - $2) 3 (30) 1 (104)
Purchase of property, plant
and equipment (125) (210) (420) (524)
Net purchase of short-term
investments - (34) - (34)
Proceeds from sales of
operating investments 385 - 560 -
Increase (decrease) due to
other investing activities 23 (404) (47) (401)
Cash from discontinued
operations - 6 - 11
----------------------------------------------------------------------------
286 (672) 94 (1,052)
----------------------------------------------------------------------------
Increase (Decrease) in Cash
for the Period 632 (47) 700 (108)
Increase (decrease) in cash
due to changes in foreign
exchange rates (262) 100 (384) 164
Cash, beginning of the
period - continuing
operations 2,867 2,465 2,921 2,462
----------------------------------------------------------------------------
Cash, End of the Period 3,237 2,518 3,237 2,518
Short-term investments - 34 - 34
----------------------------------------------------------------------------
Cash and Short-term
Investments Held by
Continuing Operations $ 3,237 $ 2,552 $ 3,237 $ 2,552
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Onex Corporation

INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009

(Unaudited) Electronics
(in millions of Manufacturing Financial
dollars) Services Aerostructures Healthcare Services
---------------------------------------------------------------------------
Revenues $ 1,700 $ 1,157 $ 1,605 $ 322
Cost of sales (1,560) (933) (1,166) (149)
Selling, general and
administrative
expenses (54) (43) (200) (118)
---------------------------------------------------------------------------
Earnings before the
undernoted
items 86 181 239 55
Amortization of
property, plant
and equipment (20) (32) (46) (3)
Amortization of
intangible assets
and deferred charges (5) (2) (52) (5)
Interest expense of
operating
companies (10) (11) (53) (1)
Interest income
(expense) (1) 1 2 -
Earnings (loss) from
equity-
accounted investments - - 3 -
Foreign exchange
gains (loss) - (2) 2 1
Stock-based
compensation expense (7) (4) (1) -
Other income
(expense) (1) 2 (1) (1)
Gains on dispositions
of operating
investments - - - -
Acquisition,
restructuring and
other expenses (46) - (11) -
Writedown of
goodwill, intangible
assets and long-lived
assets - - - -
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations (4) 133 82 46
Recovery of
(provision for)
income taxes 2 (43) (35) (17)
Non-controlling
interests 2 (84) (38) (21)
---------------------------------------------------------------------------
Earnings (loss) from
continuing
operations - 6 9 8
Earnings from
discontinued
operations - - - -
---------------------------------------------------------------------------
Net earnings (loss) $ - $ 6 $ 9 $ 8
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(Unaudited) Customer
(in millions of Support Metal Consolidated
dollars) Services Services Other(a) Total
-------------------------------------------------------------------
Revenues $ 417 $ 434 $ 443 $ 6,078
Cost of sales (263) (396) (271) (4,738)
Selling, general and
administrative
expenses (118) (15) (135) (683)
-------------------------------------------------------------------
Earnings before the
undernoted
items 36 23 37 657
Amortization of
property, plant
and equipment (14) (16) (22) (153)
Amortization of
intangible assets
and deferred charges (6) (3) (12) (85)
Interest expense of
operating
companies (19) (12) (8) (114)
Interest income
(expense) - - 8 10
Earnings (loss) from
equity-
accounted investments - - (386) (383)
Foreign exchange
gains (loss) (6) (1) (37) (43)
Stock-based
compensation expense - - (83) (95)
Other income
(expense) - - 23 22
Gains on dispositions
of operating
investments - - 276 276
Acquisition,
restructuring and
other expenses (6) - (11) (74)
Writedown of
goodwill, intangible
assets and long-lived
assets - - (1) (1)
-------------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations (15) (9) (216) 17
Recovery of
(provision for)
income taxes (3) 5 (21) (112)
Non-controlling
interests - 3 53 (85)
-------------------------------------------------------------------
Earnings (loss) from
continuing
operations (18) (1) (184) (180)
Earnings from
discontinued
operations - - - -
-------------------------------------------------------------------
Net earnings (loss) $ (18) $ (1) $ (184) $ (180)
-------------------------------------------------------------------
-------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky, RSI,
Tropicana Las Vegas, ONCAP II, Onex Real Estate and the parent
company.



Onex Corporation

INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008

(Unaudited) Electronics
(in millions of Manufacturing Financial
dollars) Services Aerostructures Healthcare Services
---------------------------------------------------------------------------
Revenues $ 2,124 $ 1,067 $ 1,593 $ 338
Cost of sales (1,944) (869) (1,167) (159)
Selling, general and
administrative
expenses (72) (47) (183) (120)
---------------------------------------------------------------------------
Earnings before the
undernoted
items 108 151 243 59
Amortization of
property, plant
and equipment (24) (31) (43) (3)
Amortization of
intangible assets
and deferred
charges (4) (1) (57) (4)
Interest expense of
operating
companies (15) (11) (61) (2)
Interest income
(expense) 5 4 2 -
Earnings (loss) from
equity-
accounted
investments - - 1 -
Foreign exchange
gains (loss) (12) (1) (12) -
Stock-based
compensation
recovery (expense) (4) (4) (1) (1)
Other income
(expense) - 1 1 (10)
Acquisition,
restructuring and
other expenses (17) - (8) (2)
Writedown of
goodwill,
intangible
assets and
long-lived assets - - - -
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations 37 108 65 37
Recovery of
(provision for)
income taxes (2) (35) (24) (16)
Non-controlling
interests (30) (68) (32) (15)
---------------------------------------------------------------------------
Earnings (loss) from
continuing
operations 5 5 9 6
Earnings from
discontinued
operations - - - -
---------------------------------------------------------------------------
Net earnings (loss) $ 5 $ 5 $ 9 $ 6
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(Unaudited) Customer
(in millions of Support Metal Consolidated
dollars) Services Services Other(a) Total
-------------------------------------------------------------------
Revenues $ 444 $ 1,008 $ 492 $ 7,066
Cost of sales (285) (959) (352) (5,735)
Selling, general and
administrative
expenses (125) (14) (123) (684)
-------------------------------------------------------------------
Earnings before the
undernoted
items 34 35 17 647
Amortization of
property, plant
and equipment (14) (16) (16) (147)
Amortization of
intangible assets
and deferred
charges (4) (3) (11) (84)
Interest expense of
operating
companies (15) (10) (12) (126)
Interest income
(expense) - - (10) 1
Earnings (loss) from
equity-
accounted
investments - - (46) (45)
Foreign exchange
gains (loss) (5) - 22 (8)
Stock-based
compensation
recovery (expense) - - 31 21
Other income
(expense) (1) - 3 (6)
Acquisition,
restructuring and
other expenses 3 - (9) (33)
Writedown of
goodwill,
intangible
assets and
long-lived assets - (1) (9) (10)
-------------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations (2) 5 (40) 210
Recovery of
(provision for)
income taxes (4) (4) 5 (80)
Non-controlling
interests - (1) 50 (96)
-------------------------------------------------------------------
Earnings (loss) from
continuing
operations (6) - 15 34
Earnings from
discontinued
operations - - 4 4
-------------------------------------------------------------------
Net earnings (loss) $ (6) $ - $ 19 $ 38
-------------------------------------------------------------------
-------------------------------------------------------------------
(a) Includes Allison Transmission, CEI, Cineplex Entertainment,
Hawker Beechcraft, Husky, Radian, ONCAP II, Onex Real Estate and
the parent company.



Onex Corporation

INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

(Unaudited) Electronics
(in millions of Manufacturing Financial
dollars) Services Aerostructures Healthcare Services
---------------------------------------------------------------------------
Revenues $ 5,151 $ 3,502 $ 4,966 $ 1,029
Cost of sales (4,705) (2,975) (3,616) (498)
Selling, general
and administrative
expenses (195) (153) (595) (384)
---------------------------------------------------------------------------
Earnings before the
undernoted items 251 374 755 147
Amortization of
property, plant
and equipment (66) (99) (148) (10)
Amortization of intangible
assets and deferred charges (18) (4) (174) (17)
Interest expense of operating
Companies (35) (34) (183) (3)
Debt prepayment (8) - - -
Interest income - 7 5 -
Earnings (loss) from equity-
accounted investments - - 14 -
Foreign exchange gains (loss) (2) 3 (2) 1
Stock-based compensation
expense (25) (11) (5) -
Other income (expense) (1) 4 (10) (2)
Gains on dispositions of
operating investments - - - -
Acquisition, restructuring and
other expenses (78) (1) (35) -
Writedown of goodwill,
intangible assets and
long-lived assets - - - -
---------------------------------------------------------------------------
Earnings (loss) before
income taxes, non-controlling
interests and
discontinued operations 18 239 217 116
Recovery of (provision for)
income taxes 9 (79) (77) (33)
Non-controlling interests (23) (149) (109) (59)
---------------------------------------------------------------------------
Earnings (loss) from
continuing operations 4 11 31 24
Earnings from discontinued
operations - - - -
---------------------------------------------------------------------------
Net earnings (loss) $ 4 $ 11 $ 31 $ 24
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets $ 3,715 $ 4,784 $ 5,811 $ 5,420
---------------------------------------------------------------------------
Long-term debt(b) $ 622 $ 911 $ 2,878 $ 207
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(Unaudited) Customer
(in millions of Support Metal Consolidated
dollars) Services Services Other(a) Total
-------------------------------------------------------------------
Revenues $ 1,365 $ 1,093 $ 1,572 $ 18,678
Cost of sales (870) (986) (995) (14,645)
Selling, general
and administrative
expenses (374) (39) (406) (2,146)
-------------------------------------------------------------------
Earnings before the
undernoted items 121 68 171 1,887
Amortization of
property, plant
and equipment (44) (52) (64) (483)
Amortization of
intangible assets
and deferred charges (18) (11) (39) (281)
Interest expense of
operating Companies (63) (38) (36) (392)
Debt prepayment - 2 - (6)
Interest income 1 - 31 44
Earnings (loss) from
equity-accounted
investments - - (443) (429)
Foreign exchange gains
(loss) (12) - (61) (73)
Stock-based compensation
expense - - (111) (152)
Other income (expense) 1 - 98 90
Gains on dispositions of
operating investments - - 460 460
Acquisition, restructuring
and other expenses (15) - (41) (170)
Writedown of goodwill,
intangible assets and
long-lived assets (52) (62) (1) (115)
--------------------------------------------------------------------
Earnings (loss) before
income taxes,
non-controlling
interests and
discontinued operations (81) (93) (36) 380
Recovery of (provision
for) income taxes (9) 10 76 (103)
Non-controlling interests - 55 80 (205)
--------------------------------------------------------------------
Earnings (loss) from
continuing operations (90) (28) 120 72
Earnings from
discontinued operations - - - -
--------------------------------------------------------------------
Net earnings (loss) $ (90) $ (28) $ 120 $ 72
--------------------------------------------------------------------
--------------------------------------------------------------------
Total assets $ 792 $ 892 $ 4,807 $ 26,221
--------------------------------------------------------------------
Long-term debt(b) $ 675 $ 421 $ 769 $ 6,483
--------------------------------------------------------------------
--------------------------------------------------------------------
(a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker
Beechcraft, Husky, Tropicana Las Vegas, ONCAP II, Onex Real Estate and
the parent company.
(b) Long-term debt includes current portion, excludes capital leases and is
net of capitalized charges.



Onex Corporation

INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008

(Unaudited) Electronics
(in millions of Manufacturing Financial
dollars) Services Aerostructures Healthcare Services
---------------------------------------------------------------------------
Revenues $ 5,864 $ 3,181 $ 4,404 $ 1,002
Cost of sales (5,399) (2,563) (3,242) (475)
Selling, general and
administrative
expenses (204) (135) (540) (359)
---------------------------------------------------------------------------
Earnings before the
undernoted
items 261 483 622 168
Amortization of
property, plant
and equipment (69) (82) (137) (9)
Amortization of
intangible assets
and deferred charges (12) (4) (166) (13)
Interest expense of
operating
companies (43) (30) (176) (7)
Interest income 14 15 6 -
Earnings (loss) from
equity-
accounted
investments - - 9 -
Foreign exchange
gains (loss) (4) (2) (4) -
Stock-based
compensation
recovery (expense) (17) (12) (3) (1)
Other income
(expense) - 3 1 (12)
Acquisition,
restructuring and
other expenses (24) - (61) (6)
Writedown of
goodwill, intangible
assets and
long-lived assets - - - -
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations 106 371 91 120
Recovery of
(provision for)
income
taxes (1) (127) (72) (43)
Non-controlling
interests (91) (228) (29) (54)
---------------------------------------------------------------------------
Earnings (loss) from
continuing
operations 14 16 (10) 23
Earnings from
discontinued
operations - - - -
---------------------------------------------------------------------------
Net earnings (loss) $ 14 $ 16 $ (10) $ 23
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets at
December 31, 2008 $ 4,612 $ 4,821 $ 6,660 $ 6,095
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Long-term debt at
December 31,
2008(b) $ 892 $ 697 $ 3,367 $ 237
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(Unaudited) Customer
(in millions of Support Metal Consolidated
dollars) Services Services Other(a) Total
-------------------------------------------------------------------
Revenues $ 1,373 $ 2,637 $ 1,646 $ 20,107
Cost of sales (891) (2,497) (1,217) (16,284)
Selling, general and
administrative
expenses (385) (43) (377) (2,043)
-----------------------------------------------------------------
Earnings before the
undernoted
items 97 97 52 1,780
Amortization of
property, plant
and equipment (41) (47) (62) (447)
Amortization of
intangible assets
and deferred charges (13) (9) (53) (270)
Interest expense of
operating
companies (45) (30) (48) (379)
Interest income 1 - 5 41
Earnings (loss) from
equity-
accounted
investments - - (65) (56)
Foreign exchange
gains (loss) (1) - 36 25
Stock-based
compensation
recovery (expense) - - 86 53
Other income
(expense) - - 18 10
Acquisition,
restructuring and
other expenses (31) - (24) (146)
Writedown of
goodwill, intangible
assets and
long-lived assets (3) (1) (9) (13)
-----------------------------------------------------------------
Earnings (loss)
before income
taxes,
non-controlling
interests
and discontinued
operations (36) 10 (64) 598
Recovery of
(provision for)
income
taxes (14) (6) 36 (227)
Non-controlling
interests (1) (3) 91 (315)
-----------------------------------------------------------------
Earnings (loss) from
continuing
operations (51) 1 63 56
Earnings from
discontinued
operations - - 9 9
-----------------------------------------------------------------
Net earnings (loss) $ (51) $ 1 $ 72 $ 65
-----------------------------------------------------------------
-----------------------------------------------------------------
Total assets at
December 31, 2008 $ 1,020 $ 1,026 $ 5,498 $ 29,732
-----------------------------------------------------------------
-----------------------------------------------------------------
Long-term debt at
December 31,
2008(b) $ 796 $ 519 $ 1,167 $ 7,675
-----------------------------------------------------------------
-----------------------------------------------------------------
(a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker
Beechcraft, Husky, Radian, ONCAP II, Onex Real Estate and the parent
company.
(b) Long-term debt includes current portion, excludes capital leases and is
net of capitalized charges.

Contact Information

  • Onex Corporation
    Donald W. Lewtas
    Chief Financial Officer
    416.362.7711
    or
    Onex Corporation
    Christopher A. Govan
    Managing Director
    416.362.7711