TORONTO, ONTARIO--(Marketwired - Feb. 21, 2014) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2013 and an update on matters following year-end.
Highlights
- In June, Onex Partners III acquired the largest operator of tradeshows in the United States, Emerald Expositions ("Emerald"), in a transaction valued at $950 million. In January 2014, Emerald acquired George Little Management, LLC, adding more than 20 leading tradeshows, including the largest show in the New York metropolitan area. The total equity investment for both transactions was $490 million, of which Onex' share was $119 million.
- Distributions during 2013 from our private equity funds, Onex Partners and ONCAP, totalled $2.9 billion - the second highest year in Onex' history. Onex' share of distributions was $1.1 billion, including $75 million of carried interest. Realizations included the recapitalization of Carestream Health, the sale of shares of Allison Transmission in secondary offerings, and the sales of RSI Home Products, TMS International, BSN SPORTS and Caliber Collision Centers ("Caliber"). The sale of Caliber is particularly noteworthy as ONCAP II generated returns of 7.5 times the capital invested.
- Onex Partners and ONCAP operating companies collectively raised or refinanced a total of $8.9 billion of debt, and paid down debt totalling approximately $1.1 billion in 2013.
- Including realizations and distributions, Onex Partners' and ONCAP's private companies generated returns for Onex of 34% during 2013. Including our public companies, the value of all operating businesses in the Onex Partners and ONCAP Funds, including realizations and distributions, increased by 35% during 2013.
- Including its year-end cash and near-cash equivalents balance of $1.7 billion, Onex' proprietary capital grew last year to $5.8 billion, representing a 23% increase on a per-share basis to $50.93 (C$54.16).
- Onex Credit Partners completed two collateralized loan obligation ("CLO") offerings, raising more than $1.0 billion, including $64 million from Onex, and has established a warehouse facility for a fifth CLO.
- In 2013, Onex launched the fundraising for Onex Partners IV, and to date has raised a total of $3.7 billion in aggregate commitments towards its $4.5 billion target, including Onex' $1.2 billion commitment.
Building our Businesses
"We had some very gratifying realizations in 2013," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "In particular, investors recognized the great job done at Carestream Health in growing its digital imaging business and maintaining tight control throughout. As well, Caliber's aggressive acquisition and integration strategy really paid off for investors. Looking forward, with $1.7 billion in cash and near-cash equivalents and $3.4 billion in committed, undrawn capital, we will be aggressively looking for more businesses to buy and build in 2014."
By transforming good businesses into industry leaders, Onex has generated a 29-year gross IRR of 28% and a multiple of 3.0 times invested capital from realized, substantially realized and publicly traded investments.
In addition to the firm's commitment to every business, the Onex management team continues to be heavily invested in everything Onex owns. At December 31, 2013, the value of the team's investment in our businesses and Onex shares was approximately $1.7 billion.
Managing and Growing Other Investors' Capital
Onex earns recurring management fees and/or carried interest on $12.0 billion of capital managed for limited partners and other investors. In 2013, combined management fees and carried interest received offset ongoing operating expenses.
Onex officially launched fundraising of Onex Partners IV in 2013, targeting a fund size of $4.5 billion in total capital commitments. To date, Onex has raised $3.7 billion in aggregate commitments, including Onex' $1.2 billion commitment, and expects to complete fundraising in 2014. This new fund will contribute to Onex' stream of annual management fees and the potential to earn carried interest on invested limited partner capital. Onex' limited partnership agreements typically have a 10-year term and provide predictable management fees from assets under management. Although fees for Onex Partners III decreased to 1% of invested capital effective December 2013, the end of its original five-year commitment period, we expect to start drawing management fees for Onex Partners IV sometime in 2014.
At December 31, 2013, the value of Onex' unrealized carried interest was approximately $54 million based on the traded market values of Onex Partners' public companies and a further $148 million based on the year-end valuations of the private businesses. These year-end values reflect a $137 million increase in the value of Onex' carried interest including the impact of $75 million of realized carried interest received during the year. The amount of carried interest ultimately realized by Onex depends on the overall performance of each Fund.
We continue to see growth in Onex Credit Partners. During 2013, two CLO offerings totalling more than $1.0 billion closed, bringing Onex Credit Partners' year-end assets under management to $3.3 billion - a 44% increase over the prior year. As this investing platform continues to grow, so too will the recurring management fees, creating additional value for Onex shareholders.
Creating Value for Shareholders
Onex' long-term goal is to grow its capital per share on average by at least 15% per annum. For the twelve months ended December 31, 2013, Onex' proprietary capital per share grew by 23% to $50.93 (C$54.16).
Our goal is to have the value of Onex' shares reflect both the growth in the value of our assets and the intrinsic value of our asset management capabilities. At December 31, 2013, Onex' Subordinate Voting Shares ("SVS") closed at C$57.35, a 37% increase from December 31, 2012. This compares to a 30% increase in the S&P 500 and a 10% increase in the S&P/TSX Composite Index.
The Company paid a fourth-quarter dividend of C$0.0375 per SVS on January 31, 2014 to shareholders of record on January 10, 2014.
In 2013, Onex repurchased 3,060,400 SVS for a total cost of $153 million or an average cost per share of C$51.81. In January 2014, Onex repurchased 397,200 SVS for a total cost of $21 million or an average cost per share of C$57.01. Over the last 17 years, Onex has repurchased more than 80 million SVS for a total cost of approximately C$1.4 billion.
Consolidated 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 its publicly traded and privately held operating companies and varying business cycles at its operating companies.
On a consolidated basis for the fourth quarter, revenues increased 10% to $7.0 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $223 million compared to a loss of $83 million in the fourth quarter of 2012.
On a consolidated basis for the full year ended December 31, 2013, revenues increased 12% to $27.8 billion consistent with the change in the quarter. The net loss for the year was $813 million compared to net earnings of $16 million for the year prior. This change was primarily driven by a greater increase in the fair value of the limited partners' interest in our operating businesses that is recorded as a liability, which resulted in approximately $750 million in increased charges to Onex' consolidated net earnings. In addition, the aerostructures segment reported a loss primarily as a result of forward-loss charges on long-term contracts.
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, 2013 and 2012 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 are the "How We Are Invested" schedule, which details Onex' $5.8 billion of proprietary capital and provides public and private company performance information, and the Schedule of Fees and Expenses.
Webcast
Onex management will host a conference call to review Onex' fiscal 2013 results on Friday, February 21 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.
About Onex
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $19 billion of assets under management, including $6 billion of Onex capital, in private equity, credit securities and real estate. Onex invests its capital directly and as the largest limited partner in each of its Funds.
Onex' businesses have assets of $44 billion, generate annual revenues of $33 billion and employ approximately 232,000 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.
HOW WE ARE INVESTED
All dollar amounts, unless otherwise noted, are in millions of U.S. dollars.
| Onex Capital |
|||||
| As at December 31 | 2013 | 2012 | |||
| Private Equity | |||||
| Onex Partners | |||||
| Private Companies(1) | $ | 2,026 | $ | 1,862 | |
| Public Companies(2) | 627 | 704 | |||
| Unrealized Carried Interest on Onex Partners Investments(3) | 202 | 140 | |||
| ONCAP(4) | 337 | 409 | |||
| Direct Investments | |||||
| Private Companies(5) | 153 | 148 | |||
| Public Companies(2) | 186 | 145 | |||
| 3,531 | 3,408 | ||||
| Onex Real Estate Partners(6) | 144 | 192 | |||
| Onex Credit Partners(7) | 260 | 171 | |||
| 404 | 363 | ||||
| Other Investments | 103 | 97 | |||
| Cash and Near-Cash(8) | 1,741 | 1,141 | |||
| Onex Corporation Debt | - | - | |||
| $ | 5,779 | $ | 5,009 | ||
| Onex Capital per Share (December 31, 2013 - C$54.16; December 31, 2012 - C$41.21)(9) (10) | $ | 50.93 | $ | 41.42 | |
| (1) | Based on the US$ fair value of the investments in Onex Partners' financial statements net of the estimated Management Investment Plan ("MIP") liability on these investments of $64 million (2012 - $39 million). RSI, which was sold in February 2013, was included in private companies of Onex Partners at December 31, 2012. |
| (2) | Based on the closing market values and net of the estimated MIP liability on these investments. TMS International, which was sold in October 2013, was included in public companies of Onex Partners at December 31, 2012. |
| (3) | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
| (4) | Based on the C$ fair value of the investments in ONCAP's financial statements net of management incentive programs on these investments of $17 million (2012 - $25 million) and a US$/C$ exchange rate of 1.0636 (2012 - 0.9949). BSN SPORTS, which was sold in June 2013, and Caliber Collision, which was sold in November 2013, were included in ONCAP at December 31, 2012. |
| (5) | Based on the fair value. |
| (6) | Based on the fair value of Onex Real Estate Partners' investments. |
| (7) | Based on the market values of investments in Onex Credit Partners' Funds and Onex Credit Partners Collateralized Loan Obligations, including the warehouse facility for OCP CLO-5. Excludes $343 million (2012 - $328 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 $343 million (2012 - $328 million) invested in a segregated Onex Credit Partners' unleveraged senior secured loan strategy fund. |
| (9) | Calculated on a fully diluted basis. Fully diluted shares were approximately 115.9 million at December 31, 2013 (December 31, 2012 - 126.1 million). Fully diluted shares include (i) all outstanding Subordinate Voting Shares; and (ii) outstanding Stock Options that have met the minimum 25% price appreciation threshold. |
| (10) | The change in Onex Capital per Share during the year is driven primarily by fair value changes of Onex' investments. Share repurchases and options exercised during the year will have an impact on the calculation of Onex Capital per Share. The impact on Onex Capital per Share will be to the extent that the price for share repurchases and option exercises is above or below the Onex Capital per Share. |
HOW WE ARE INVESTED
| Public and Private Company Information | |||||||||
| Public Companies As at December 31, 2013 |
Shares Subject to Carried Interest (millions) |
Shares Held by Onex (millions) |
Closing Price per Share(1) |
Market Value of Onex' Investment |
|||||
| Onex Partners | |||||||||
| Skilled Healthcare Group(2) | 10.7 | 3.5 | $ | 4.81 | $ | 17 | |||
| Spirit AeroSystems(2) | 11.9 | 6.5 | $ | 34.08 | 220 | ||||
| Allison Transmission(2) | 22.1 | 15.5 | $ | 27.61 | 427 | ||||
| 664 | |||||||||
| Estimated Management Investment Plan Liability | (37 | ) | |||||||
| 627 | |||||||||
| Direct Investments - Celestica | - | 17.8(3 | ) | $ | 10.40 | 186 | |||
| $ | 813 | ||||||||
| Significant Private Companies As at December 31, 2013 |
Onex' and its Limited Partners' Ownership |
LTM EBITDA (4) |
Net Debt |
Cumulative Distributions |
Onex' Economic Ownership |
Original Cost of Onex' Investment |
|||||||||||
| Onex Partners | |||||||||||||||||
| The Warranty Group | 91 | % | $ | 114(5 | ) | $ | 246(5 | ) | $ | 403 | 29 | % | $ | 154 | |||
| Carestream Health | 92 | % | 436 | 2,150 | 1,311 | 33%(3 | ) | 186 | |||||||||
| Tropicana Las Vegas | 82 | % | (4 | ) | 51 | - | 18 | % | 70 | ||||||||
| Tomkins | 56 | % | 559(6 | ) | 1,428 | 1,180(7 | ) | 14 | % | 315 | |||||||
| ResCare | 98 | % | 141 | 350 | - | 20 | % | 41 | |||||||||
| JELD-WEN | 72%(8 | ) | 154(9 | ) | 654(9 | ) | - | 18%(8 | ) | 200(10 | ) | ||||||
| SGS International | 93 | % | 111(11 | ) | 579 | - | 23 | % | 66 | ||||||||
| USI | 92 | % | 267(11 | ) | 1,596 | - | 26 | % | 170(12 | ) | |||||||
| BBAM(13) | 50 | % | 86 | (33)(14 | ) | 49(15 | ) | 13 | % | 61 | |||||||
| KraussMaffei | 96 | % | EUR 103 | EUR 226 | - | 24 | % | 92(16 | ) | ||||||||
| Emerald Expositions | 99 | % | 93 | 605 | - | 24 | % | 85 | |||||||||
| 1,440 | |||||||||||||||||
| Direct Investments - Sitel Worldwide | 70 | % | $ | 130 | $ | 743 | $ | - | 70 | % | 251 | ||||||
| $ | 1,691 | ||||||||||||||||
| (1) | Closing prices on December 31, 2013. |
| (2) | Excludes Onex' potential participation in the carried interest and includes shares related to the MIP. |
| (3) | Excludes shares held in connection with the MIP. |
| (4) | EBITDA is a non-GAAP measure and is 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. |
| (5) | Amount presented for The Warranty Group is net earnings rather than EBITDA and total debt rather than net debt. |
| (6) | LTM EBITDA excludes EBITDA from businesses divested as of December 31, 2013. |
| (7) | Onex, Onex Partners III, Onex management, certain limited partners and others received distributions of $663 million from Tomkins. |
| (8) | Onex' and its limited partners' investment is in convertible preferred shares. The ownership percentage is presented on an as-converted basis. |
| (9) | LTM EBITDA and net debt are presented for JELD-WEN Holding, inc. |
| (10) | Net of $27 million return of capital on the convertible promissory notes prior to the conversion into additional Series A Convertible Preferred Stock of JELD-WEN in April 2013. |
| (11) | LTM EBITDA for SGS International and USI is presented on a pro-forma basis to reflect the impact of acquired businesses. |
| (12) | Net of $84 million of the amount originally invested in USI sold by Onex to certain limited partners and others as a co-investment in March 2013. |
| (13) | Ownership percentages, LTM EBITDA, net debt and cumulative distributions are presented for BBAM Limited Partnership and do not reflect information for Onex' investments in FLY Leasing Limited (NYSE: FLY) or Meridian Aviation Partners Limited that were made in conjunction with the investment in BBAM. The Original Cost of Onex' Investment includes $5 million invested in FLY Leasing Limited and $14 million invested in Meridian Aviation Partners Limited. |
| (14) | Net debt for BBAM represents unrestricted cash, reduced for accrued compensation liabilities. |
| (15) | Onex, Onex Partners III and Onex management received distributions of $24 million from BBAM. |
| (16) | The investments in KraussMaffei were made in euros and converted to U.S. dollars using the prevailing exchange rate on the date of the investments. |
| Schedule of Fees and Expenses | ||||||||
| Year ended December 31, | ||||||||
| (USD Millions) | 2013 | 2012 | 2011 | |||||
| Revenue Items | ||||||||
| Management and Advisory Fees1 | ||||||||
| Base Management Fees | $ | 111 | $ | 108 | $ | 110 | ||
| Transaction Fees, Net | 1 | 5 | - | |||||
| Total Management and Advisory Fees | 112 | 113 | 110 | |||||
| Carried Interest and Performance Fees Received2 | 81 | 6 | 72 | |||||
| Interest and Other Treasury Income | ||||||||
| Cash and Near-Cash | 18 | 20 | 7 | |||||
| Onex Credit Partners3 | 31 | 19 | 1 | |||||
| Total Interest and Other Treasury Income | 49 | 39 | 8 | |||||
| Total | 242 | 158 | 190 | |||||
| Expense Items4 | ||||||||
| Compensation | ||||||||
| Base Compensation (incl. benefits) | 33 | 29 | 29 | |||||
| Variable Compensation | 103 | 67 | 88 | |||||
| 136 | 96 | 117 | ||||||
| Other Expense Items, Net | 30 | 21 | 33 | |||||
| Total | 166 | 117 | 150 | |||||
| Net Amount | $ | 76 | $ | 41 | $ | 40 | ||
| 1 | The management fees include those earned in the Onex Partners and ONCAP private equity funds, those earned by Onex Credit Partners manager and Onex' retained portion of the management fees from operating companies. |
| 2 | Carried interest and performance fees received are on a cash received basis. |
| 3 | Onex Credit Partners includes the returns on Onex' investment as a limited partner in Onex Credit Partners funds and, beginning in 2012, the returns on Onex' investments in Onex Credit Partners' collateralized loan obligations. The returns on Onex' investment as a limited partner in a segregated Onex Credit Partners' unleveraged senior secured loan strategy fund are included with cash and near-cash. |
| 4 | Expenses include those of the Onex corporate office, ONCAP, Onex Credit Partners and Onex Real Estate Partners. There is no allocation of the expenses to the management of Onex' $5.8 billion of capital. The expenses exclude stock-based compensation. |
| Onex Corporation |
| CONSOLIDATED BALANCE SHEETS |
(in millions of U.S. dollars) |
As at December 31, 2013 |
As at December 31, 2012 |
As at January 1, 2012 |
|||
| Assets Current assets |
||||||
| Cash and cash equivalents | $ | 3,191 | $ | 2,656 | $ | 2,448 |
| Short-term investments | 754 | 730 | 749 | |||
| Accounts receivable | 3,639 | 3,858 | 3,272 | |||
| Inventories | 3,872 | 4,519 | 4,428 | |||
| Other current assets | 1,478 | 1,443 | 1,154 | |||
| 12,934 | 13,206 | 12,051 | ||||
| Property, plant and equipment | 5,105 | 5,495 | 5,102 | |||
| Long-term investments | 7,564 | 6,424 | 5,415 | |||
| Other non-current assets | 2,100 | 1,986 | 1,776 | |||
| Intangible assets | 4,695 | 4,833 | 2,599 | |||
| Goodwill | 4,469 | 4,358 | 2,434 | |||
| $ | 36,867 | $ | 36,302 | $ | 29,377 | |
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 4,342 | $ | 4,549 | $ | 3,893 |
| Current portion of provisions | 331 | 347 | 263 | |||
| Other current liabilities | 1,621 | 1,340 | 909 | |||
| Current portion of long-term debt of operating companies, without recourse to Onex Corporation | 651 | 286 | 482 | |||
| Current portion of warranty reserves and unearned premiums | 1,350 | 1,366 | 1,400 | |||
| 8,295 | 7,888 | 6,947 | ||||
| Non-current portion of provisions | 419 | 264 | 180 | |||
| Long-term debt of operating companies, without recourse to Onex Corporation | 11,319 | 10,184 | 6,479 | |||
| Non-current portion of warranty reserves and unearned premiums | 1,779 | 1,774 | 1,727 | |||
| Other non-current liabilities | 2,526 | 2,852 | 2,368 | |||
| Deferred income taxes | 1,225 | 1,683 | 1,059 | |||
| Limited Partners' Interests | 6,959 | 6,208 | 4,980 | |||
| 32,522 | 30,853 | 23,740 | ||||
| Equity | ||||||
| Share capital | 346 | 358 | 360 | |||
| Non-controlling interests | 3,191 | 3,822 | 3,863 | |||
| Retained earnings and accumulated other comprehensive earnings | 808 | 1,269 | 1,414 | |||
| 4,345 | 5,449 | 5,637 | ||||
| $ | 36,867 | $ | 36,302 | $ | 29,377 | |
| Onex Corporation |
| CONSOLIDATED STATEMENTS OF EARNINGS |
| Year ended December 31 (in millions of U.S. dollars except per share data) |
2013 |
2012 |
|||||
| Revenues | $ | 27,809 | $ | 24,917 | |||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (21,843 | ) | (19,908 | ) | |||
| Operating expenses | (4,197 | ) | (3,276 | ) | |||
| Interest income | 106 | 60 | |||||
| Amortization of property, plant and equipment | (619 | ) | (538 | ) | |||
| Amortization of intangible assets and deferred charges | (537 | ) | (318 | ) | |||
| Interest expense of operating companies | (813 | ) | (514 | ) | |||
| Increase in value of investments in joint ventures and associates at fair value, net | 1,098 | 863 | |||||
| Stock-based compensation expense | (349 | ) | (239 | ) | |||
| Other gains | 561 | 59 | |||||
| Other items | (449 | ) | (46 | ) | |||
| Impairment of goodwill, intangible assets and long-lived assets, net | (319 | ) | (65 | ) | |||
| Limited Partners' Interests charge | (1,855 | ) | (929 | ) | |||
| Earnings (loss) before income taxes and discontinued operations | (1,407 | ) | 66 | ||||
| Recovery of (provision for) income taxes | 333 | (76 | ) | ||||
| Loss from continuing operations | (1,074 | ) | (10 | ) | |||
| Earnings from discontinued operations | 261 | 26 | |||||
| Net Earnings (Loss) for the Year | $ | (813 | ) | $ | 16 | ||
| Earnings (Loss) from Continuing Operations attributable to: | |||||||
| Equity holders of Onex Corporation | $ | (605 | ) | $ | (143 | ) | |
| Non-controlling Interests | (469 | ) | 133 | ||||
| Loss from Continuing Operations for the Year | $ | (1,074 | ) | $ | (10 | ) | |
| Net Earnings (Loss) attributable to: | |||||||
| Equity holders of Onex Corporation | $ | (354 | ) | $ | (128 | ) | |
| Non-controlling Interests | (459 | ) | 144 | ||||
| Net Earnings (Loss) for the Year | $ | (813 | ) | $ | 16 | ||
| Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||
| Basic and Diluted: | |||||||
| Continuing operations | $ | (5.34 | ) | $ | (1.25 | ) | |
| Discontinued operations | 2.22 | 0.13 | |||||
| Net Loss for the Year | $ | (3.12 | ) | $ | (1.12 | ) | |
| Onex Corporation |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Year ended December 31 (in millions of U.S. dollars) |
2013 |
2012 |
|||||
| Operating Activities | |||||||
| Loss for the year from continuing operations | $ | (1,074 | ) | $ | (10 | ) | |
| Adjustments to loss from continuing operations: | |||||||
| Provision for (recovery of) income taxes | (333 | ) | 76 | ||||
| Interest income | (106 | ) | (60 | ) | |||
| Interest expense of operating companies | 813 | 514 | |||||
| Net earnings (loss) before interest and provision for income taxes | (700 | ) | 520 | ||||
| Cash taxes paid | (234 | ) | (294 | ) | |||
| Items not affecting cash and cash equivalents: | |||||||
| Amortization of property, plant and equipment | 619 | 538 | |||||
| Amortization of intangible assets and deferred charges | 537 | 318 | |||||
| Amortization of deferred warranty costs, net | (25 | ) | 32 | ||||
| Increase in value of investments in joint ventures and associates at fair value, net | (1,098 | ) | (863 | ) | |||
| Stock-based compensation expense | 13 | 211 | |||||
| Other gains | (561 | ) | (59 | ) | |||
| Impairment of goodwill, intangible assets and long-lived assets, net | 319 | 65 | |||||
| Limited Partners' Interests charge | 1,855 | 929 | |||||
| Change in provisions | 95 | 91 | |||||
| Others | 114 | 96 | |||||
| 934 | 1,584 | ||||||
| Changes in non-cash working capital items: | |||||||
| Accounts receivable | (123 | ) | (39 | ) | |||
| Inventories | 650 | 371 | |||||
| Other current assets | 19 | 18 | |||||
| Accounts payable, accrued liabilities and other current liabilities | 31 | 33 | |||||
| Increase in cash and cash equivalents due to changes in working capital items | 577 | 383 | |||||
| Decrease in other operating activities | (115 | ) | (96 | ) | |||
| Increase in warranty reserves and premiums | 73 | 22 | |||||
| Cash flows from operating activities of discontinued operations | 117 | 150 | |||||
| 1,586 | 2,043 | ||||||
| Financing Activities | |||||||
| Issuance of long-term debt | 4,106 | 2,320 | |||||
| Repayment of long-term debt | (2,834 | ) | (1,495 | ) | |||
| Cash interest paid | (697 | ) | (445 | ) | |||
| Cash dividends paid | (14 | ) | (12 | ) | |||
| Repurchase of share capital of Onex Corporation | (153 | ) | (24 | ) | |||
| Repurchase of share capital of operating companies | (109 | ) | (315 | ) | |||
| Financing provided by Limited Partners | 401 | 1,311 | |||||
| Issuance of share capital by operating companies | 47 | 34 | |||||
| Distributions paid to non-controlling interests and Limited Partners | (1,542 | ) | (982 | ) | |||
| Change in restricted cash for distribution to Limited Partners | 35 | (35 | ) | ||||
| Decrease due to other financing activities | (70 | ) | (65 | ) | |||
| Cash flows used for financing activities of discontinued operations | (28 | ) | (117 | ) | |||
| (858 | ) | 175 | |||||
| Investing Activities | |||||||
| Acquisition of operating companies, net of cash and cash equivalents in acquired companies of $14 (2012 - $275) | (513 | ) | (1,393 | ) | |||
| Purchase of property, plant and equipment | (835 | ) | (607 | ) | |||
| Proceeds from sale of property, plant and equipment | 290 | 31 | |||||
| Proceeds from sale of investment in joint ventures and associates at fair value | 908 | 326 | |||||
| Proceeds from sale of operating investment no longer controlled | 1,060 | 71 | |||||
| Distributions received from investments in joint ventures and associates of Onex Partners | 52 | 676 | |||||
| Purchase of investments in joint venture of Onex Partners | − | (165 | ) | ||||
| Cash interest and dividends received | 72 | 19 | |||||
| Net purchases of investments and securities | (1,062 | ) | (785 | ) | |||
| Decrease due to other investing activities | (49 | ) | (73 | ) | |||
| Cash flows used for investing activities of discontinued operations | (115 | ) | (115 | ) | |||
| (192 | ) | (2,015 | ) | ||||
| Increase in Cash and Cash Equivalents for the Year | 536 | 203 | |||||
| Increase (decrease) in cash due to changes in foreign exchange rates | (1 | ) | 5 | ||||
| Cash and cash equivalents, beginning of the year - continuing operations | 2,629 | 2,339 | |||||
| Cash and cash equivalents, beginning of the year - discontinued operations | 27 | 109 | |||||
| Cash and Cash Equivalents | 3,191 | 2,656 | |||||
| Cash and cash equivalents held by discontinued operations | − | 27 | |||||
| Cash and Cash Equivalents Held by Continuing Operations | $ | 3,191 | $ | 2,629 | |||
| Onex Corporation |
| INFORMATION BY INDUSTRY SEGMENT |
| FOR THE YEAR ENDED DECEMBER 31, 2013 |
| Electronics Manufacturing Services |
Aerostructures |
Healthcare |
Insurance Provider |
Customer Care Services |
Building Products |
Other (a) |
Consolidated Total |
|||||||||||||||||
| Revenues | $ | 5,796 | $ | 5,961 | $ | 4,902 | $ | 1,168 | $ | 1,438 | $ | 3,457 | $ | 5,087 | $ | 27,809 | ||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,337 | ) | (5,848 | ) | (3,406 | ) | (600 | ) | (936 | ) | (2,855 | ) | (2,861 | ) | (21,843 | ) | ||||||||
| Operating expenses | (221 | ) | (243 | ) | (836 | ) | (380 | ) | (372 | ) | (449 | ) | (1,696 | ) | (4,197 | ) | ||||||||
| Interest income | 1 | − | 2 | − | 1 | 2 | 100 | 106 | ||||||||||||||||
| Amortization of property, plant and equipment | (60 | ) | (162 | ) | (119 | ) | (3 | ) | (28 | ) | (112 | ) | (135 | ) | (619 | ) | ||||||||
| Amortization of intangible assets and deferred charges | (12 | ) | (28 | ) | (148 | ) | (12 | ) | (23 | ) | (18 | ) | (296 | ) | (537 | ) | ||||||||
| Interest expense of operating companies | (3 | ) | (70 | ) | (222 | ) | (6 | ) | (97 | ) | (79 | ) | (336 | ) | (813 | ) | ||||||||
| Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | − | 1,098 | 1,098 | ||||||||||||||||
| Stock-based compensation (expense) recovery | (29 | ) | (22 | ) | (8 | ) | (4 | ) | − | 7 | (293 | ) | (349 | ) | ||||||||||
| Other gains | − | − | − | − | − | − | 561 | 561 | ||||||||||||||||
| Other items | (4 | ) | (27 | ) | (143 | ) | 9 | (17 | ) | (9 | ) | (258 | ) | (449 | ) | |||||||||
| Impairment of goodwill, intangible assets and long-lived assets, net | − | − | (95 | ) | (1 | ) | (1 | ) | (13 | ) | (209 | ) | (319 | ) | ||||||||||
| Limited Partners' Interests charge | − | − | − | − | − | − | (1,855 | ) | (1,855 | ) | ||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | 131 | (439 | ) | (73 | ) | 171 | (35 | ) | (69 | ) | (1,093 | ) | (1,407 | ) | ||||||||||
| Recovery of (provision for) income taxes | (13 | ) | (101 | ) | (44 | ) | (59 | ) | 14 | (16 | ) | 552 | 333 | |||||||||||
| Earnings (loss) from continuing operations | 118 | (540 | ) | (117 | ) | 112 | (21 | ) | (85 | ) | (541 | ) | (1,074 | ) | ||||||||||
| Earnings from discontinued operations(b) | − | − | − | − | − | − | 261 | 261 | ||||||||||||||||
| Net earnings (loss) for the year | $ | 118 | $ | (540 | ) | $ | (117 | ) | $ | 112 | $ | (21 | ) | $ | (85 | ) | $ | (280 | ) | $ | (813 | ) | ||
| Total assets | $ | 2,639 | $ | 5,155 | $ | 3,707 | $ | 4,898 | $ | 613 | $ | 2,483 | $ | 17,372 | $ | 36,867 | ||||||||
| Long-term debt(c) | $ | − | $ | 1,128 | $ | 3,009 | $ | 255 | $ | 740 | $ | 661 | $ | 6,177 | $ | 11,970 | ||||||||
| Property, plant and equipment additions | $ | 45 | $ | 269 | $ | 102 | $ | 2 | $ | 33 | $ | 89 | $ | 326 | $ | 866 | ||||||||
| Intangible assets with indefinite life | $ | − | $ | − | $ | 253 | $ | 16 | $ | 36 | $ | 259 | $ | 777 | $ | 1,341 | ||||||||
| Goodwill additions from acquisitions | $ | − | $ | − | $ | 20 | $ | 3 | $ | − | $ | − | $ | 727 | $ | 750 | ||||||||
| Goodwill | $ | 60 | $ | 3 | $ | 784 | $ | 306 | $ | 118 | $ | 109 | $ | 3,089 | $ | 4,469 | ||||||||
| Net earnings (loss) attributable to: | ||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 12 | $ | (84 | ) | $ | (69 | ) | $ | 101 | $ | (15 | ) | $ | (66 | ) | $ | (233 | ) | $ | (354 | ) | ||
| Non-controlling interests | 106 | (456 | ) | (48 | ) | 11 | (6 | ) | (19 | ) | (47 | ) | (459 | ) | ||||||||||
| Net earnings (loss) for the year | $ | 118 | $ | (540 | ) | $ | (117 | ) | $ | 112 | $ | (21 | ) | $ | (85 | ) | $ | (280 | ) | $ | (813 | ) | ||
| (a) | Includes Tropicana Las Vegas, SGS International, USI, KraussMaffei, Emerald Expositions (acquired in June 2013), ONCAP II (BSN SPORTS up to June 2013 and Caliber Collision up to November 2013), ONCAP III, Flushing Town Center, Meridian Aviation, OCP CLO-1, OCP CLO-2, OCP CLO-3, OCP CLO-4 and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, RSI (sold in February 2013), Tomkins, Cypress and certain Onex Real Estate investments. Earnings from discontinued operations represent the after-tax results of TMS International. |
| (b) | Represents the after-tax results of TMS International. |
| (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, 2012 |
| Electronics Manufacturing Services |
Aerostructures |
Healthcare |
Insurance Provider |
Customer Care Services |
Building Products |
Other (a) |
Consolidated Total |
|||||||||||||||||
| Revenues | $ | 6,507 | $ | 5,404 | $ | 4,947 | $ | 1,205 | $ | 1,429 | $ | 3,168 | $ | 2,257 | $ | 24,917 | ||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,988 | ) | (5,038 | ) | (3,402 | ) | (621 | ) | (920 | ) | (2,561 | ) | (1,378 | ) | (19,908 | ) | ||||||||
| Operating expenses | (226 | ) | (228 | ) | (885 | ) | (402 | ) | (368 | ) | (449 | ) | (718 | ) | (3,276 | ) | ||||||||
| Interest income | 1 | - | 3 | - | 1 | 3 | 52 | 60 | ||||||||||||||||
| Amortization of property, plant and equipment | (70 | ) | (130 | ) | (128 | ) | (4 | ) | (29 | ) | (101 | ) | (76 | ) | (538 | ) | ||||||||
| Amortization of intangible assets and deferred charges | (11 | ) | (29 | ) | (160 | ) | (15 | ) | (25 | ) | (19 | ) | (59 | ) | (318 | ) | ||||||||
| Interest expense of operating companies | (5 | ) | (83 | ) | (191 | ) | (5 | ) | (100 | ) | (63 | ) | (67 | ) | (514 | ) | ||||||||
| Increase in value of investments in joint ventures and associates at fair value, net | - | - | - | - | - | - | 863 | 863 | ||||||||||||||||
| Stock-based compensation expense | (36 | ) | (16 | ) | (11 | ) | (2 | ) | (1 | ) | (17 | ) | (156 | ) | (239 | ) | ||||||||
| Other gains | - | - | - | - | - | - | 59 | 59 | ||||||||||||||||
| Other items | (42 | ) | 150 | (42 | ) | 11 | (4 | ) | (33 | ) | (86 | ) | (46 | ) | ||||||||||
| Impairment of goodwill, intangible assets and long-lived assets | (18 | ) | (2 | ) | (17 | ) | (4 | ) | - | (7 | ) | (17 | ) | (65 | ) | |||||||||
| Limited Partners' Interests charge | - | - | - | - | - | - | (929 | ) | (929 | ) | ||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | 112 | 28 | 114 | 163 | (17 | ) | (79 | ) | (255 | ) | 66 | |||||||||||||
| Recovery of (provision for) income taxes | 6 | 17 | (44 | ) | (54 | ) | (3 | ) | 12 | (10 | ) | (76 | ) | |||||||||||
| Earnings (loss) from continuing operations | 118 | 45 | 70 | 109 | (20 | ) | (67 | ) | (265 | ) | (10 | ) | ||||||||||||
| Earnings from discontinued operations(b) | - | - | - | - | - | - | 26 | 26 | ||||||||||||||||
| Net earnings (loss) for the year | $ | 118 | $ | 45 | $ | 70 | $ | 109 | $ | (20 | ) | $ | (67 | ) | $ | (239 | ) | $ | 16 | |||||
| Total assets(c) | $ | 2,659 | $ | 5,371 | $ | 3,971 | $ | 4,903 | $ | 632 | $ | 2,626 | $ | 16,140 | $ | 36,302 | ||||||||
| Long-term debt(c)(d) | $ | 55 | $ | 1,133 | $ | 2,540 | $ | 258 | $ | 725 | $ | 547 | $ | 5,212 | $ | 10,470 | ||||||||
| Property, plant and equipment additions(c) | $ | 98 | $ | 225 | $ | 120 | $ | 4 | $ | 23 | $ | 91 | $ | 196 | $ | 757 | ||||||||
| Intangible assets with indefinite life | $ | - | $ | - | $ | 256 | $ | 16 | $ | 36 | $ | 259 | $ | 548 | $ | 1,115 | ||||||||
| Goodwill additions from acquisitions | $ | 26 | $ | - | $ | 23 | $ | - | $ | - | $ | - | $ | 1,983 | $ | 2,032 | ||||||||
| Goodwill(c) | $ | 60 | $ | 3 | $ | 852 | $ | 304 | $ | 118 | $ | 113 | $ | 2,908 | $ | 4,358 | ||||||||
| Net earnings (loss) attributable to: | ||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 13 | $ | 7 | $ | 18 | $ | 62 | $ | (14 | ) | $ | (47 | ) | $ | (167 | ) | $ | (128 | ) | ||||
| Non-controlling interests | 105 | 38 | 52 | 47 | (6 | ) | (20 | ) | (72 | ) | 144 | |||||||||||||
| Net earnings (loss) for the year | $ | 118 | $ | 45 | $ | 70 | $ | 109 | $ | (20 | ) | $ | (67 | ) | $ | (239 | ) | $ | 16 | |||||
| (a) | Includes Tropicana Las Vegas, SGS International (acquired in October 2012), USI (acquired in December 2012), KraussMaffei (acquired in December 2012), ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2, and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments. Earnings from discontinued operations represent the after-tax results of TMS International. |
| (b) | Represents the after-tax results of TMS International. |
| (c) | Total assets, long-term debt, property, plant and equipment additions and goodwill in the other segment include discontinued operations. |
| (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