TORONTO, ONTARIO--(Marketwired - Feb. 24, 2017) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:ONEX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2016 and an update on matters following year-end.
- In 2016, Onex and its partners invested or committed to invest close to $2.9 billion in five businesses and one add-on investment, of which Onex' share was approximately $900 million. The total purchase price for these companies was near $8.0 billion.
- Onex Partners and ONCAP operating companies collectively raised or refinanced a total of $4.3 billion of debt last year.
- During 2016 and to date we returned approximately $1.7 billion to Onex and its limited partners, mainly through realizations and distributions, of which Onex' portion was approximately $460 million.
- In November, Onex completed fundraising for ONCAP IV, its latest middle-market private equity fund, raising a total of $1.1 billion in aggregate commitments, including Onex' commitment of $480 million. Onex now manages approximately $16.5 billion of AUM across its private equity platforms.
- Onex Credit grew its assets under management by $1.1 billion and now manages approximately $7.5 billion. In April, we announced plans to launch a direct lending platform.
- In 2016, Onex repurchased approximately 3.1 million Subordinate Voting Shares ("SVS") for a total cost of C$249 million, or an average cost per share of C$80.14.
"2016 was a productive year for us. We invested meaningfully in our private equity and credit platforms and continued to buy back shares opportunistically," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "We believe these investments set the foundation for future growth in net asset value per share," he continued.
Onex remains in an excellent position to capitalize on investment opportunities. After giving effect to the pending investment in Parkdean Resorts and the JELD-WEN distribution in January 2017, Onex will have approximately $1.5 billion of cash and near-cash and approximately $2.1 billion of uncalled committed capital available from its limited partners.
Onex management continues to share in the risks and rewards of our businesses through the team's significant investment in everything Onex owns. At December 31, 2016, the team had an investment of $1.9 billion in underlying private equity operating businesses, credit funds and Onex shares.
Creating Value for Shareholders
Onex has two long-term goals. The first is to grow our capital per share by 15% per year. For the full year ended December 31, 2016, Onex' capital per share increased by 8% to $58.56. Over the last five years, Onex' capital per share grew 10% per year.
Our second goal is to grow our fee-generating assets by 10% per year. For the full year ended December 31, 2016, Onex' fee-generating assets increased by 7% to $15.9 billion, driven by our success in raising ONCAP IV and growth at Onex Credit. Over the last five years, our fee-generating assets grew by 15% per year.
As we pursue our goals over the long term, we believe Onex' shares will reflect both the growth in the value of our investments and the growing contribution from managing investments for limited partners and other investors.
Onex paid a fourth-quarter dividend of C$0.06875 per SVS on January 31, 2017 to shareholders of record on January 10, 2017.
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 ended December 31, 2016, revenues increased by 21% to $6.6 billion as compared to the same period of the prior year. The increase in revenues was primarily due to the acquisitions of Clarivate Analytics, Save-A-Lot, WireCo and Tecta completed during 2016. Onex reported a consolidated net loss of $152 million during the fourth quarter of 2016 compared to $336 million. A recovery of income taxes recorded during the fourth quarter of 2016 was the primary contributor to the change in the consolidated net loss.
On a consolidated basis for the full year 2016, revenues increased by 14% to $22.5 billion from the prior year. The increase in revenues was primarily driven by the same factors that drove the increase during the fourth quarter of 2016 as well as the full year impact of 2015 acquisitions. Net loss for the year was $36 million compared to a net loss of $505 million in 2015. The improvement in the 2016 results was primarily driven by unrealized gains on investments held by our credit platform, a decrease in limited partners' charge and a decrease in income tax provision. Partially offsetting these increases in earnings were impairment charges recorded during 2016, a decrease in gains realized in 2016 from the sale of companies and the net losses related to companies acquired in 2016.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the full years ended December 31, 2016 and 2015 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. A supplemental information package, which includes the How We Are Invested schedule, Schedules of Fees and Expenses and additional information, is available on Onex' website, www.onex.com.
Onex management will host a conference call to review Onex' fourth-quarter and full-year 2016 results on Friday, February 24 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.
Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $24 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests alongside its fund investors and is the largest limited partner in each of its private equity funds.
Onex' businesses have assets of $44 billion, generate annual revenues of $29 billion and employ approximately 161,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. 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.
Please click here to view the Onex Q4 2016 Financial Statements.