TORONTO, ONTARIO--(Marketwire - Feb. 23, 2012) - Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2011 and an update on matters following year-end.
Highlights
- Onex completed the sales of Husky International and Emergency Medical Services, generating total proceeds of $2.7 billion and multiples of 2.9 times and 7.8 times invested capital, respectively. Onex' portion of the net cash proceeds from these two transactions was approximately $943 million, including $55 million of carried interest.
- Onex Partners and ONCAP completed five acquisitions during the year for a total investment of $1.2 billion, of which Onex' share was $421 million. This included Onex Partners' $871 million investment in JELD-WEN.
- ONCAP completed the fundraising for ONCAP III, with capital commitments of C$800 million, including C$520 million from Limited Partners.
- Onex increased its percentage commitment to Onex Partners III to approximately 25% from 18% of the Fund's capital.
- Onex Partners' and ONCAP's private companies provided Onex with returns of 15% and 12%, respectively, in 2011.
- Onex' proprietary capital per share grew by 8% during the year to $36.85.
- At December 31, Onex' portion of the unrealized carried interest was $96 million based on the public companies held at market value and on the year-end fair values of the private companies in the Onex Partners Funds.
- During the year, Onex repurchased 3,165,296 shares for approximately C$105 million at an average cost per share of C$33.27.
- At December 31, Onex had no debt at the parent company and approximately $1.3 billion of cash and near-cash investments.
Onex is an investor and asset manager generating value from (i) growth in the Company's $4.5 billion of proprietary capital; (ii) management fees associated with $8.0 billion of third-party assets under management, and (iii) a carried interest based on the performance of third-party invested capital.
Building Our Businesses
"While global economic uncertainty persisted in 2011, overall demand for our industrial companies' products increased during the year," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "Most of our companies grew earnings and generated strong cash flow, allowing some to reduce debt levels and pay distributions."
During 2011, our operating companies paid distributions totaling $470 million, of which Onex' share was $157 million. Our businesses also paid down approximately $1.3 billion of debt, and stronger capital markets in the first half of the year enabled them to raise or refinance a total of approximately $3.4 billion of debt.
Based on the year-end valuations reported to our Limited Partners, the Onex Partners' and ONCAP private investments provided Onex with returns of 15% and 12%, respectively, during 2011. Overall, Onex' proprietary capital per share increased by 8% year-over-year, with strong performance of our invested capital somewhat offset by the limited return on the Company's considerable cash balance.
We regularly review alternatives to capture the value increases in our businesses. In early 2011, when credit markets were strong and the IPO markets were open, Onex and its partners realized approximately $3.5 billion primarily through the sales of Husky International and Emergency Medical Services. When the markets are once again receptive to initial public offerings and appropriately valuing high-quality companies, additional offerings will be considered. Fortunately, we can be patient given the strength of our operating companies' balance sheets. We are more than happy to continue owning businesses with attractive cash-on-cash returns.
"Despite the challenging acquisition market in 2011, we completed an $871 million investment in JELD-WEN, one of the world's largest residential door and window manufacturers, and acquired four mid-market businesses," said Mr. Schwartz. "Over the last several months, we have seen a slight increase in merger and acquisition activity, which has translated into a somewhat improved investment pipeline."
Although it is difficult to predict investment pace, Onex is well-positioned to respond to attractive investment opportunities. The parent company continues to be in excellent financial condition, with approximately $1.3 billion in cash and near-cash investments at the end of January, no debt and approximately $2.5 billion of uncalled committed capital for acquisitions through Onex Partners III and ONCAP III.
In light of its considerable cash position, Onex increased its percentage commitment to Onex Partners III to approximately 25% from 18%. The increased commitment was announced in November and will apply to new Onex Partners III investments completed after May 14, 2012.
In addition to investing its capital, Onex uses its cash to repurchase shares under its Normal Course Issuer Bid when the shares are trading at prices that reflect a discount to Onex' view of value. Onex believes that this provides good value to its remaining shareholders. In 2011, Onex repurchased 3,165,296 shares for approximately C$105 million at an average price of C$33.27 per share.
Since inception, Onex has established a strong culture that is based on long-held investing principles. The Company believes that long-term value is best created by enhancing the productivity and profitability of its businesses. By transforming under-valued businesses into industry leaders, Onex has generated a 27-year gross IRR of 29% and an average multiple of 3.3 times invested capital from realized, substantially realized and publicly traded investments in its private equity investing.
Onex also believes that its success is furthered through strong alignment of interests between Onex shareholders, its limited partners and the management team. At December 31, 2011, Onex' management team had approximately $1.3 billion invested in Onex shares and in its operating companies.
Asset Management
The management of third-party capital provides Onex with a predictable stream of annual management fees that substantially offsets ongoing operating expenses. Today, Onex earns recurring asset management fees and/or carried interest on $8.0 billion of third-party capital. In 2011, Onex Partners, ONCAP and Onex Credit Partners generated $110 million in management fees. In addition, Onex received $65 million in carried interest as a result of the realizations of EMSC, Husky International, Spirit AeroSystems and TMS International. This amount was net of a voluntary reduction of $35 million reflecting a review of the relevant Funds' other operating companies and a desire to avoid the possibility of a future claw-back of carry paid.
At December 31, 2011, Onex had approximately $13 million of unrealized carried interest on Onex Partners' public companies and a further $83 million based on the year-end valuations of the private businesses. The actual amount of carried interest realized by Onex depends on the ultimate performance of each Fund.
In September, Onex announced the successful closing of ONCAP III, its third mid-market private equity Fund, with capital commitments of C$800 million, of which C$520 million was committed by both long-standing partners and new investors. Onex continues to be ONCAP's largest investor.
Consolidated Fourth-Quarter and Full-Year Results
Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of our publicly traded and privately held operating companies and varying business cycles at its operating companies.
Effective January 1, 2011, Onex' financial statements are being prepared in accordance with International Financial Reporting Standards and are reported in U.S. dollars. Please see the 2011 Management's Discussion and Analysis and Notes to Consolidated Financial Statements for a review of the significant accounting policies under IFRS that impact Onex' financial statements.
On a consolidated basis for the fourth quarter, revenues increased 25% to $6.8 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $112 million compared to a loss of $4 million in the fourth quarter of 2010. Cash from operations was $707 million in the fourth quarter of 2011 compared to $872 million in 2010.
On a consolidated basis for the full year ended December 31, 2011, revenues increased 25% to $24.6 billion. Net earnings for the period were $1.6 billion compared to $197 million for 2010. Net earnings for 2011 included $1.7 billion from discontinued operations relating to the profit on the sales of Husky International and EMSC. In the full year ended December 31, 2011, cash flow from operations was $1.2 billion compared to $1.5 billion for the same period of the prior year.
The Company paid a fourth-quarter dividend of C$0.0275 per Subordinate Voting Share on January 31, 2012 to shareholders of record on January 10, 2012.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the full year ended December 31, 2011 and 2010 as prepared under International Financial Reporting Standards. 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. Also attached is the "How We Are Invested" schedule, which details Onex' $4.5 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review the Company's fiscal 2011 results at 4:30 p.m. ET 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 investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the Company manages approximately $14 billion, of which $9 billion is third-party capital. As well, Onex invests its own capital directly and as a substantial limited partner in its Funds.
Onex' businesses have assets of $41 billion, generate annual revenues of $37 billion and employ approximately 246,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
| ONEX | |||
| How We Are Invested | |||
| Unless otherwise noted, all amounts are in millions of U.S. dollars except per share data. | |||
| Proprietary Capital | |||
| As at December 31, 2011 | (US$ millions) | ||
| Private Equity | |||
| Onex Partners | |||
| Private Companies | $ | 1,8471 | |
| Public Companies | 2352 | ||
| Unrealized Carried Interest on Onex Partners Investments | 963 | ||
| ONCAP | 3194 | ||
| Direct Investments | |||
| Private Companies | 2045 | ||
| Public Companies | 1302 | ||
| 2,831 | |||
| Alternative Assets | |||
| Onex Real Estate Partners | 1806 | ||
| Onex Credit Partners | 1007 | ||
| 280 | |||
| Other Investments | 81 | ||
| Cash and Near-Cash | 1,3028 | ||
| Onex Corporation Debt | - | ||
| $ | 4,494 | ||
| Proprietary Capital per Share (Canadian dollar equivalent - C$37.47)9 | $ | 36.859 | |
| Significant Public Companies | |||||
| As at December 31, 2011 | Shares Subject to Carried Interest (millions) |
Shares Held by Onex (millions) |
Closing Price per Share10 |
Market Value of Onex' Investment |
|
| Onex Partners | |||||
| Skilled Healthcare Group | 10.7 | 3.5 | $ 5.46 | $ 1911 | |
| Spirit AeroSystems | 11.9 | 6.012 | $ 20.78 | 12411 | |
| TMS International | 13.2 | 9.3 | $ 9.88 | 9211 | |
| 235 | |||||
| Direct Investments - Celestica | - | 17.812 | $ 7.33 | 130 | |
| $365 | |||||
| Significant Private Companies | ||||||||||
| As at December 31, 2011 | Onex and its Limited Partners Ownership |
LTM EBITDA13 |
Net Debt |
Cumulative Distributions |
Onex' Economic Ownership |
Original Cost of Onex' Investment |
||||
| Onex Partners | ||||||||||
| Center for Diagnostic Imaging | 81% | $38 | $102 | $67 | 19% | $17 | ||||
| The Warranty Group | 92% | 10814 | n/a | 203 | 29% | 154 | ||||
| Hawker Beechcraft | 49% | n/a15 | n/a15 | 1116 | 19% | 21217 | ||||
| Carestream Health | 95% | 397 | 1,600 | 434 | 37% | 186 | ||||
| Allison Transmission | 49% | 712 | 3,062 | - | 15% | 237 | ||||
| RSI Home Products | 50% | n/a | n/a | n/a | 20% | 126 | ||||
| Tropicana Las Vegas | 76% | n/a18 | 49 | - | 17% | 60 | ||||
| Tomkins | 56% | 72719 | 2,325 | - | 14% | 315 | ||||
| ResCare | 98% | 129 | 347 | - | 20% | 41 | ||||
| JELD-WEN20 | 59%21 | n/a | n/a | 42 | 20%21 | 298 | ||||
| 1,646 | ||||||||||
| Direct Investments - Sitel Worldwide | 68% | $129 | $681 | $- | 68% | 251 | ||||
| $1,897 | ||||||||||
| Notes to Tables | |
| 1 | Based on the US$fair value of the investments in Onex Partners' financial statements. |
| 2 | Based on the December 31, 2011 market values. |
| 3 | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
| 4 | Based on the C$fair value of the investments in ONCAP's financial statements and US$/C$exchange rate of 1.0170. |
| 5 | Based on value of last third-party investment. |
| 6 | Based on the carrying value of Onex Real Estate Partners' investments at December 31, 2011. |
| 7 | Based on the December 31, 2011 market values. Excludes approximately $312 million invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. |
| 8 | Includes approximately $312 million invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund. |
| 9 | Calculated on a diluted basis. |
| 10 | Closing prices on December 31, 2011. |
| 11 | Excludes Onex' potential participation in the carried interest. |
| 12 | Excludes shares held in connection with the Management Investment Plan. |
| 13 | EBITDA is a non-GAAP measure and based on the local GAAP of the individual operating companies. These adjustments may include non-cash costs of stock-based compensation and retention plans, transition and restructuring expenses including severance payments, the impact of derivative instruments that no longer qualify for hedge accounting, the impacts of purchase accounting and other similar amounts. |
| 14 | Amount presented for The Warranty Group is adjusted net earnings rather than EBITDA and includes a one-time $6 million valuation allowance release in the first quarter of 2011. Net earnings on a U.S. GAAP basis, including the impacts of purchase accounting, were $105 million and include a one-time $6 million valuation allowance release in the first quarter of 2011. |
| 15 | The information will be provided once the company reports to its debt holders. |
| 16 | Represents interest received on the portion of Senior Notes held by Onex, Onex Partners II and Onex management. |
| 17 | Includes investment in Senior Notes. |
| 18 | A comprehensive redevelopment underway at Tropicana Las Vegas caused a disruption to its operations, resulting in negative LTM EBITDA that is not reflective of a fully operational hotel and casino. |
| 19 | LTM EBITDA excludes EBITDA from businesses divested as of December 31, 2011. Including EBITDA from these divested businesses would result in LTM EBITDA of $774 million as of December 31, 2011. |
| 20 | In February 2012, Onex sold a portion of its original investment in JELD-WEN to certain limited partners and others at the same cost basis as Onex' original investment. Onex received proceeds of $79 million. |
| 21 | On an as-converted basis. |
| Onex Corporation | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| As at December 31, | As at December 31, | As at January 1, | ||||
| (in millions of U.S. dollars) | 2011 | 2010 | 2010 | |||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,448 | $ | 2,532 | $ | 3,018 |
| Short-term investments | 749 | 715 | 605 | |||
| Accounts receivable | 3,272 | 3,430 | 2,928 | |||
| Inventories | 4,428 | 4,004 | 3,204 | |||
| Other current assets | 1,186 | 1,495 | 1,101 | |||
| 12,083 | 12,176 | 10,856 | ||||
| Property, plant and equipment | 5,102 | 4,056 | 3,366 | |||
| Long-term investments | 5,415 | 4,864 | 3,448 | |||
| Other non-current assets | 1,813 | 1,872 | 1,915 | |||
| Intangible assets | 2,599 | 2,505 | 2,241 | |||
| Goodwill | 2,434 | 2,634 | 2,198 | |||
| $ | 29,446 | $ | 28,107 | $ | 24,024 | |
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 3,893 | $ | 3,964 | $ | 3,268 |
| Current portion of provisions | 263 | 257 | 255 | |||
| Other current liabilities | 890 | 1,211 | 974 | |||
| Current portion of long-term debt of operating companies, without recourse to Onex Corporation | 482 | 243 | 404 | |||
| Current portion of obligations under finance leases, without recourse to Onex Corporation | 19 | 14 | 20 | |||
| Current portion of warranty reserves and unearned premiums | 1,400 | 1,314 | 1,342 | |||
| 6,947 | 7,003 | 6,263 | ||||
| Non-current portion of provisions | 180 | 284 | 231 | |||
| Long-term debt of operating companies, without recourse to Onex Corporation | 6,479 | 6,346 | 5,284 | |||
| Non-current portion of obligations under finance leases, without recourse to Onex Corporation | 45 | 43 | 39 | |||
| Non-current portion of warranty reserves and unearned premiums | 1,727 | 1,780 | 1,935 | |||
| Other non-current liabilities | 2,331 | 1,921 | 1,670 | |||
| Deferred income taxes | 1,075 | 938 | 810 | |||
| Limited Partners' Interests | 4,980 | 5,650 | 3,708 | |||
| 23,764 | 23,965 | 19,940 | ||||
| Equity | ||||||
| Share capital | 360 | 373 | 381 | |||
| Non-controlling interests | 3,862 | 3,638 | 3,329 | |||
| Retained earnings and accumulated other comprehensive earnings | 1,460 | 131 | 374 | |||
| 5,682 | 4,142 | 4,084 | ||||
| $ | 29,446 | $ | 28,107 | $ | 24,024 | |
| Onex Corporation | |||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||
| Year ended December 31 (in millions of U.S. dollars except per share data) | 2011 | 2010 | |||||
| Revenues | $ | 24,642 | $ | 19,734 | |||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (19,725 | ) | (15,492 | ) | |||
| Operating expenses | (2,921 | ) | (2,306 | ) | |||
| Interest income | 32 | 34 | |||||
| Amortization of property, plant and equipment | (462 | ) | (403 | ) | |||
| Amortization of intangible assets and deferred charges | (311 | ) | (284 | ) | |||
| Interest expense of operating companies | (488 | ) | (342 | ) | |||
| Unrealized increase in value of investments in associates at fair value, net | 501 | 448 | |||||
| Foreign exchange loss | (14 | ) | (8 | ) | |||
| Stock-based compensation expense | (133 | ) | (186 | ) | |||
| Other gains, net | - | 99 | |||||
| Other items | (146 | ) | (221 | ) | |||
| Impairment of goodwill, intangible assets and long-lived assets, net | (197 | ) | (14 | ) | |||
| Limited Partners' Interests charge | (627 | ) | (831 | ) | |||
| Earnings before income taxes and discontinued operations | 151 | 228 | |||||
| Provision for income taxes | (237 | ) | (239 | ) | |||
| Loss from continuing operations | (86 | ) | (11 | ) | |||
| Earnings from discontinued operations | 1,715 | 208 | |||||
| Net Earnings for the Year | $ | 1,629 | $ | 197 | |||
| Earnings (Loss) from Continuing Operations attributable to: | |||||||
| Equity holders of Onex Corporation | $ | (355 | ) | $ | (282 | ) | |
| Non-controlling Interests | 269 | 271 | |||||
| Loss from Continuing Operations for the Year | $ | (86 | ) | $ | (11 | ) | |
| Net Earnings (Loss) attributable to: | |||||||
| Equity holders of Onex Corporation | $ | 1,327 | $ | (167 | ) | ||
| Non-controlling Interests | 302 | 364 | |||||
| Net Earnings for the Year | $ | 1,629 | $ | 197 | |||
| Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||
| Basic and Diluted: | |||||||
| Continuing operations | $ | (3.02 | ) | $ | (2.36 | ) | |
| Discontinued operations | 14.33 | 0.96 | |||||
| Net Earnings (Loss) for the Year | $ | 11.31 | $ | (1.40 | ) | ||
| Onex Corporation | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Year ended December 31 (in millions of U.S. dollars) | 2011 | 2010 | |||||
| Operating Activities | |||||||
| Loss for the year from continuing operations | $ | (86 | ) | $ | (11 | ) | |
| Adjustments to loss from continuing operations: | |||||||
| Provision for income taxes | 237 | 239 | |||||
| Interest income | (32 | ) | (34 | ) | |||
| Interest expense of operating companies | 488 | 342 | |||||
| Net earnings before interest and provision for income taxes | 607 | 536 | |||||
| Cash taxes paid | (161 | ) | (187 | ) | |||
| Items not affecting cash and cash equivalents: | |||||||
| Amortization of property, plant and equipment | 462 | 403 | |||||
| Amortization of intangible assets and deferred charges | 311 | 284 | |||||
| Amortization of deferred warranty costs | 47 | 72 | |||||
| Unrealized increase in value of investments in associates at fair value, net | (501 | ) | (448 | ) | |||
| Stock-based compensation expense | 62 | 174 | |||||
| Other gains, net | - | (99 | ) | ||||
| Impairment of goodwill, intangible assets and long-lived assets, net | 197 | 14 | |||||
| Limited Partners' Interests charge | 627 | 831 | |||||
| Change in provisions | 89 | 114 | |||||
| Other | (6 | ) | 9 | ||||
| 1,734 | 1,703 | ||||||
| Changes in non-cash working capital items: | |||||||
| Accounts receivable | 1 | (200 | ) | ||||
| Inventories | (162 | ) | (599 | ) | |||
| Other current assets | 3 | (47 | ) | ||||
| Accounts payable, accrued liabilities and other current liabilities | (457 | ) | 294 | ||||
| Decrease in cash and cash equivalents due to changes in working capital items | (615 | ) | (552 | ) | |||
| Increase (decrease) in other operating activities | (58 | ) | 6 | ||||
| Increase (decrease) in warranty reserves and premiums | 27 | (92 | ) | ||||
| Cash flows from operating activities of discontinued operations | 100 | 471 | |||||
| 1,188 | 1,536 | ||||||
| Financing Activities | |||||||
| Issuance of long-term debt | 594 | 2,180 | |||||
| Repayment of long-term debt | (460 | ) | (1,997 | ) | |||
| Cash interest paid | (411 | ) | (298 | ) | |||
| Cash dividends paid | (13 | ) | (13 | ) | |||
| Repurchase of share capital of Onex Corporation | (105 | ) | (50 | ) | |||
| Repurchase of share capital of operating companies | (149 | ) | (167 | ) | |||
| Financing provided by Limited Partners | 932 | 1,451 | |||||
| Issuance of share capital by operating companies | 151 | 25 | |||||
| Proceeds from sales of operating investments under continuing control | 268 | - | |||||
| Distributions paid to non-controlling interests and Limited Partners | (2,248 | ) | (349 | ) | |||
| Change in restricted cash for distribution to Limited Partners | 272 | (272 | ) | ||||
| Decrease due to other financing activities | (52 | ) | (55 | ) | |||
| Cash flows used for financing activities of discontinued operations | (42 | ) | (126 | ) | |||
| (1,263 | ) | 329 | |||||
| Investing Activities | |||||||
| Acquisition of operating companies, net of cash and cash equivalents in acquired companies of $191 (2010 - $55) | (1,155 | ) | (474 | ) | |||
| Purchase of property, plant and equipment | (646 | ) | (660 | ) | |||
| Proceeds from other gains | - | 123 | |||||
| Cash interest and dividends received | 45 | 11 | |||||
| Investment in Tomkins Limited | - | (1,219 | ) | ||||
| Increase (decrease) due to other investing activities | (286 | ) | 81 | ||||
| Cash flows from (used for) investing activities of discontinued operations | 2,030 | (205 | ) | ||||
| (12 | ) | (2,343 | ) | ||||
| Decrease in Cash and Cash Equivalents for the Year | (87 | ) | (478 | ) | |||
| Increase (decrease) in cash due to changes in foreign exchange rates | 3 | (8 | ) | ||||
| Cash and cash equivalents, beginning of the year - continuing operations | 2,053 | 2,582 | |||||
| Cash and cash equivalents, beginning of the year - discontinued operations | 479 | 436 | |||||
| Cash and Cash Equivalents | 2,448 | 2,532 | |||||
| Cash and cash equivalents held by discontinued operations | - | 479 | |||||
| Cash and Cash Equivalents Held by Continuing Operations | $ | 2,448 | $ | 2,053 | |||
| Onex Corporation | |||||||||||||||||||||||||||
| INFORMATION BY INDUSTRY SEGMENT | |||||||||||||||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||||||||||||
| (in millions of U.S. dollars) | Electronics Manufacturing Services |
Aerostructures | Healthcare | Financial Services |
Customer Care Services |
Metal Services |
Building Products |
Other (a) |
Consolidated Total |
||||||||||||||||||
| Revenues | $ | 7,213 | $ | 4,864 | $ | 5,030 | $ | 1,184 | $ | 1,416 | $ | 2,661 | $ | 774 | $ | 1,500 | $ | 24,642 | |||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (6,645 | ) | (4,124 | ) | (3,446 | ) | (579 | ) | (921 | ) | (2,467 | ) | (660 | ) | (883 | ) | (19,725 | ) | |||||||||
| Operating expenses | (234 | ) | (178 | ) | (918 | ) | (429 | ) | (377 | ) | (59 | ) | (118 | ) | (608 | ) | (2,921 | ) | |||||||||
| Interest income | 1 | - | 4 | - | - | - | 1 | 26 | 32 | ||||||||||||||||||
| Amortization of property, plant and equipment | (64 | ) | (107 | ) | (126 | ) | (5 | ) | (34 | ) | (47 | ) | (25 | ) | (54 | ) | (462 | ) | |||||||||
| Amortization of intangible assets and deferred charges | (14 | ) | (41 | ) | (168 | ) | (18 | ) | (28 | ) | (13 | ) | (5 | ) | (24 | ) | (311 | ) | |||||||||
| Interest expense of operating companies | (6 | ) | (77 | ) | (221 | ) | (4 | ) | (85 | ) | (34 | ) | (17 | ) | (44 | ) | (488 | ) | |||||||||
| Unrealized increase in value of investments in associates at fair value, net | - | - | - | - | - | - | - | 501 | 501 | ||||||||||||||||||
| Foreign exchange gains (loss) | (1 | ) | (2 | ) | (10 | ) | - | (2 | ) | 1 | (2 | ) | 2 | (14 | ) | ||||||||||||
| Stock-based compensation expense | (44 | ) | (14 | ) | (9 | ) | - | - | (2 | ) | - | (64 | ) | (133 | ) | ||||||||||||
| Other items | (7 | ) | 3 | (32 | ) | 9 | (18 | ) | - | (17 | ) | (84 | ) | (146 | ) | ||||||||||||
| Impairment of goodwill, intangible assets and long-lived assets | - | - | (129 | ) | (40 | ) | - | - | (22 | ) | (6 | ) | (197 | ) | |||||||||||||
| Limited Partners' Interests charge | - | - | - | - | - | - | - | (627 | ) | (627 | ) | ||||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | $ | 199 | $ | 324 | $ | (25 | ) | $ | 118 | $ | (49 | ) | $ | 40 | $ | (91 | ) | $ | (365 | ) | $ | 151 | |||||
| Recovery of (provision for) income taxes | (4 | ) | (100 | ) | (87 | ) | (56 | ) | (9 | ) | (16 | ) | 2 | 33 | (237 | ) | |||||||||||
| Earnings (loss) from continuing operations | 195 | 224 | (112 | ) | 62 | (58 | ) | 24 | (89 | ) | (332 | ) | (86 | ) | |||||||||||||
| Earnings from discontinued operations(b) | - | - | 606 | - | - | - | - | 1,109 | 1,715 | ||||||||||||||||||
| Net earnings (loss) for the year | 195 | 224 | 494 | 62 | (58 | ) | 24 | (89 | ) | 777 | 1,629 | ||||||||||||||||
| Total assets | $ | 2,970 | $ | 4,978 | $ | 4,194 | $ | 4,877 | $ | 631 | $ | 1,045 | $ | 2,581 | $ | 8,170 | $ | 29,446 | |||||||||
| Long-term debt(c) | $ | - | $ | 1,157 | $ | 2,670 | $ | 203 | $ | 652 | $ | 377 | $ | 481 | $ | 1,421 | $ | 6,961 | |||||||||
| Property, plant and equipment additions | $ | 60 | $ | 275 | $ | 96 | $ | 3 | $ | 32 | $ | 75 | $ | 13 | $ | 120 | $ | 674 | |||||||||
| Intangible assets with indefinite life | $ | - | $ | - | $ | 258 | $ | 16 | $ | 36 | $ | - | $ | 257 | $ | 376 | $ | 943 | |||||||||
| Goodwill additions from acquisitions | $ | 34 | $ | - | $ | 41 | $ | - | $ | - | $ | - | $ | 119 | $ | 278 | $ | 472 | |||||||||
| Goodwill | $ | 48 | $ | 3 | $ | 911 | $ | 304 | $ | 118 | $ | 239 | $ | 120 | $ | 691 | $ | 2,434 | |||||||||
| Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 17 | $ | 35 | $ | 512 | $ | 59 | $ | (39 | ) | $ | 17 | $ | (60 | ) | $ | 786 | $ | 1,327 | |||||||
| Non-controlling interests | $ | 178 | $ | 189 | $ | (18 | ) | $ | 3 | $ | (19 | ) | $ | 7 | $ | (29 | ) | $ | (9 | ) | $ | 302 | |||||
| Net earnings (loss) for the year | $ | 195 | $ | 224 | $ | 494 | $ | 62 | $ | (58 | ) | $ | 24 | $ | (89 | ) | $ | 777 | $ | 1,629 | |||||||
| (a) | Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las Vegas, Tomkins, ONCAP II, ONCAP III, Onex Real Estate, Flushing Town Center and the parent company. | |
| (b) | Discontinued operations includes EMSC in the Healthcare segment (sold in May 2011) and Husky in the Other segment (sold in June 2011). | |
| (c) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. | |
| Onex Corporation | ||||||||||||||||||||||||
| INFORMATION BY INDUSTRY SEGMENT | ||||||||||||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2010 | ||||||||||||||||||||||||
| (in millions of U.S. dollars) | Electronics Manufacturing Services |
Aerostructures | Healthcare | Financial Services |
Customer Care Services |
Metal Services |
Other (a) |
Consolidated Total |
||||||||||||||||
| Revenues | $ | 6,526 | $ | 4,170 | $ | 3,498 | $ | 1,163 | $ | 1,340 | $ | 2,030 | $ | 1,007 | $ | 19,734 | ||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,997 | ) | (3,429 | ) | (2,270 | ) | (547 | ) | (847 | ) | (1,858 | ) | (544 | ) | (15,492 | ) | ||||||||
| Operating expenses | (216 | ) | (181 | ) | (629 | ) | (435 | ) | (363 | ) | (53 | ) | (429 | ) | (2,306 | ) | ||||||||
| Interest income | - | - | 3 | - | 1 | - | 30 | 34 | ||||||||||||||||
| Amortization of property, plant and equipment | (71 | ) | (95 | ) | (116 | ) | (5 | ) | (34 | ) | (49 | ) | (33 | ) | (403 | ) | ||||||||
| Amortization of intangible assets and deferred charges | (16 | ) | (25 | ) | (167 | ) | (24 | ) | (25 | ) | (12 | ) | (15 | ) | (284 | ) | ||||||||
| Interest expense of operating companies | (16 | ) | (59 | ) | (122 | ) | (4 | ) | (79 | ) | (43 | ) | (19 | ) | (342 | ) | ||||||||
| Unrealized increase in value of investments in associates at fair value, net | - | - | 21 | - | - | - | 427 | 448 | ||||||||||||||||
| Foreign exchange gains (loss) | (4 | ) | (5 | ) | (5 | ) | - | (5 | ) | - | 11 | (8 | ) | |||||||||||
| Stock-based compensation expense | (42 | ) | (31 | ) | (5 | ) | - | - | - | (108 | ) | (186 | ) | |||||||||||
| Other gains, net | - | - | - | - | - | - | 99 | 99 | ||||||||||||||||
| Other items | (36 | ) | 2 | (68 | ) | 21 | (43 | ) | - | (97 | ) | (221 | ) | |||||||||||
| Impairment of goodwill, intangible assets and long-lived assets | (9 | ) | - | - | (2 | ) | - | - | (3 | ) | (14 | ) | ||||||||||||
| Limited Partners' Interests charge | - | - | - | - | - | - | (831 | ) | (831 | ) | ||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | $ | 119 | $ | 347 | $ | 140 | $ | 167 | $ | (55 | ) | $ | 15 | $ | (505 | ) | $ | 228 | ||||||
| Recovery of (provision for) income taxes | (18 | ) | (98 | ) | (39 | ) | (60 | ) | 5 | (11 | ) | (18 | ) | (239 | ) | |||||||||
| Earnings (loss) from continuing operations | 101 | 249 | 101 | 107 | (50 | ) | 4 | (523 | ) | (11 | ) | |||||||||||||
| Earnings from discontinued operations(b) | - | - | 132 | - | - | - | 76 | 208 | ||||||||||||||||
| Net earnings (loss) for the year | 101 | 249 | 233 | 107 | (50 | ) | 4 | (447 | ) | 197 | ||||||||||||||
| Total assets(c) | $ | 3,014 | $ | 4,975 | $ | 6,162 | $ | 4,918 | $ | 675 | $ | 862 | $ | 7,501 | $ | 28,107 | ||||||||
| Long-term debt(d) | $ | - | $ | 1,145 | $ | 2,996 | $ | 205 | $ | 624 | $ | 404 | $ | 1,215 | $ | 6,589 | ||||||||
| Property, plant and equipment additions | $ | 63 | $ | 284 | $ | 141 | $ | 3 | $ | 22 | $ | 41 | $ | 244 | $ | 798 | ||||||||
| Intangible assets with indefinite life | $ | - | $ | - | $ | 266 | $ | 16 | $ | 36 | $ | - | $ | 179 | $ | 497 | ||||||||
| Goodwill additions from acquisitions | $ | 14 | $ | - | $ | 428 | $ | - | $ | - | $ | - | $ | 89 | $ | 531 | ||||||||
| Goodwill | $ | 15 | $ | 3 | $ | 1,403 | $ | 344 | $ | 118 | $ | 240 | $ | 511 | $ | 2,634 | ||||||||
| Net earnings (loss) attributable to: | ||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 9 | $ | 57 | $ | 136 | $ | 101 | $ | (34 | ) | $ | 6 | $ | (442 | ) | $ | (167 | ) | |||||
| Non-controlling interests | $ | 92 | $ | 192 | $ | 97 | $ | 6 | $ | (16 | ) | $ | (2 | ) | $ | (5 | ) | $ | 364 | |||||
| Net earnings (loss) for the year | $ | 101 | $ | 249 | $ | 233 | $ | 107 | $ | (50 | ) | $ | 4 | $ | (447 | ) | $ | 197 | ||||||
| (a) | Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las Vegas, Tomkins, ONCAP II, Onex Real Estate, Flushing Town Center and the parent company. | |
| (b) | Discontinued operations includes EMSC in the Healthcare segment (sold in May 2011) and Husky in the Other segment (sold in June 2011). | |
| (c) | Total assets and long-term debt include EMSC and Husky, which were sold in the second quarter of 2011. | |
| (d) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
Contact Information:
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com