TORONTO, ONTARIO--(Marketwire - Aug. 8, 2012) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the second quarter and six months ended June 30, 2012 and an update on matters following quarter-end.
Highlights
- Onex announced plans to open a London office.
- Onex and its affiliates (the "Onex Group") completed the sale of Center for Diagnostic Imaging, resulting in a multiple of invested capital of 2.0 times.
- In the first half of the year, realizations and distributions from operating companies totaled $531 million, of which Onex' share was $173 million.
- Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 3% and 9%, respectively, in the first six months of 2012.
- Onex' proprietary capital per share grew by 4% during the first six months of the year to $38.30.
- At June 30, Onex' unrealized carried interest was $105 million based on the public companies at traded market value and the private companies as valued.
- In the seven months ended July 31, Onex repurchased 147,900 shares for approximately C$5 million at an average cost per share of C$35.81.
- At July 31, Onex had no debt at the parent company and approximately $1.5 billion of cash and near-cash investments.
Onex is an investor and asset manager generating value from (i) growth in the Company's $4.7 billion of proprietary capital; (ii) management fees associated with $8.2 billion of third-party assets under management; and (iii) a carried interest based on the performance of third-party invested capital.
London Office
"We're excited about the upcoming opening of our London office. After 28 years acquiring and building businesses with global reach, expanding overseas is a natural progression," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "We believe there will be great investment opportunities for investors like Onex, particularly given the current state of the European financial system and the resulting pressures on businesses. We are fortunate to have two strong investment professionals moving to London to start this office for us."
Building Our Businesses
During the first half of 2012, realizations and distributions from several of our operating companies totaled $531 million. Including these distributions, the Onex Group has received 59% and 106% of its original equity investments in The Warranty Group and Carestream Health, respectively, and continues to own the businesses.
The value of Onex' interest in Onex Partners' and ONCAP's private companies grew by 3% and 9%, respectively, during the first six months of 2012. These returns include realizations and distributions and are based on the valuations reported to our limited partners. Overall, Onex' proprietary capital per share grew by 4% during the first half of 2012.
"The current investment pipeline remains relatively strong but also competitive. While we're actively looking for the next great company to own, we know from experience that patience is an integral part of prudence," said Mr. Schwartz. "We've built relationships with the financial and business communities around the world. The toughest part of our job is to find those few opportunities that leverage our active ownership capabilities."
Although it is difficult to predict investment pace, Onex is well-positioned to respond to opportunities. The parent company continues to be in excellent financial condition, with approximately $1.5 billion in cash and near-cash investments at the end of July, no debt and approximately $2.4 billion of uncalled committed third-party capital for acquisitions through Onex Partners III and ONCAP III.
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. In the first seven months of 2012, Onex repurchased 147,900 shares for approximately C$5 million at an average price of C$35.81 per share. In the 12 months ended July 31, Onex repurchased 2,935,820 shares for approximately C$97 million at an average price of C$33.10 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 28-year gross IRR of 28% and an average multiple of 2.8 times invested capital from realized, substantially realized and publicly traded investments.
Onex also believes that its success is furthered through strong alignment of interests between Onex shareholders, its limited partners and the management team. At June 30, 2012, the value of the team's investment in Onex' shares and its businesses was approximately $1.5 billion.
Asset Management: Manage and Grow Third-Party Capital
The management of third-party capital provides Onex with a predictable stream of annual management fees. In 2011, combined management fees and carried interest received more than offset all operating expenses. Today, Onex earns recurring management fees and/or carried interest on $8.2 billion of third-party assets under management.
At June 30, 2012, the value of Onex' unrealized carried interest was approximately $39 million based on the traded market values of Onex Partners' public companies and a further $66 million based on the quarter-end valuations of the private businesses. The actual amount of carried interest realized by Onex depends on the ultimate performance of each Fund.
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 second quarter, revenues increased 12% to $7.0 billion compared to the same period of the prior year. The acquisitions completed in 2011, including JELD-WEN, contributed to this year-over-year revenue increase. Onex reported a consolidated net loss of $167 million compared to net earnings of $1.8 billion in the second quarter of 2011. Net earnings for the second quarter of 2011 included $1.7 billion from discontinued operations relating to the sales of Husky International and Emergency Medical Services Corporation.
On a consolidated basis for the six months ended June 30, 2012, revenues increased 16% to $13.8 billion. Net earnings for the period were $12 million compared to $1.6 billion for the six months ended June 30, 2011, which included $1.7 billion from discontinued operations mentioned above. Cash flow from operations was $747 million compared to $16 million for the same period last year.
The Company paid a second-quarter dividend of C$0.0275 per Subordinate Voting Share on July 31, 2012 to shareholders of record on July 10, 2012.
Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended June 30, 2012 and 2011 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' $4.7 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review the Company's results for the second quarter and six months ended June 30, 2012 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 $9.5 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 $39 billion, generate annual revenues of $34 billion and employ approximately 235,000 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 | June 30, 2012 | December 31, 2011 | |||
| Private Equity | |||||
| Onex Partners | |||||
| Private Companies1, 2 | $ | 1,336 | $ | 1,847 | |
| Public Companies2, 3 | 657 | 235 | |||
| Unrealized Carried Interest on Onex Partners Investments4 | 105 | 96 | |||
| ONCAP5 | 336 | 319 | |||
| Direct Investments | |||||
| Private Companies6 | 204 | 204 | |||
| Public Companies3 | 129 | 130 | |||
| 2,767 | 2,831 | ||||
| Alternative Assets | |||||
| Onex Real Estate Partners7 | 193 | 180 | |||
| Onex Credit Partners8 | 137 | 100 | |||
| 330 | 280 | ||||
| Other Investments | 89 | 81 | |||
| Cash and Near-Cash9 | 1,476 | 1,302 | |||
| Onex Corporation Debt | - | - | |||
| $ | 4,662 | $ | 4,494 | ||
| Proprietary Capital per Share (June 30, 2012 - C$39.00; December 31, 2011 - C$37.47)10 | $ | 38.30 | $ | 36.85 | |
| Public Companies | |||||||||||
As at June 30, 2012 |
Shares Subject to Carried Interest (millions) |
Shares Held by Onex (millions) |
Closing Price per Share11 |
Market Value of Onex' Investment |
|||||||
| Onex Partners | |||||||||||
| Skilled Healthcare Group12 | 10.7 | 3.5 | $ | 6.28 | $ | 22 | |||||
| Spirit AeroSystems12 | 11.9 | 6.5 | $ | 23.83 | 154 | ||||||
| TMS International12 | 13.2 | 9.3 | $ | 9.97 | 92 | ||||||
| Allison Transmission2, 12 | 33.5 | 23.4 | $ | 17.56 | 412 | ||||||
| 680 | |||||||||||
| Estimated Management Investment Plan Liability | (23) | ||||||||||
| 657 | |||||||||||
| Direct Investments - Celestica | - | 17.813 | $ | 7.26 | 129 | ||||||
| $ | 786 | ||||||||||
| Significant Private Companies | ||||||||||||||||||||
As at June 30, 2012 |
Onex and its Limited Partners Ownership |
LTM EBITDA14 |
Net Debt |
Cumulative Distributions |
Onex' Economic Ownership |
Original Cost of Onex' Investment |
||||||||||||||
| Onex Partners | ||||||||||||||||||||
| The Warranty Group | 92 | % | $ | 10815 | n/a | $ | 288 | 29 | % | $ | 154 | |||||||||
| Carestream Health | 94 | % | 405 | $ | 1,619 | 509 | 37 | % | 186 | |||||||||||
| RSI Home Products | 50 | % | n/a | n/a | n/a | 20 | % | 126 | ||||||||||||
| Tropicana Las Vegas | 76 | % | (9 | ) | 53 | - | 17 | % | 60 | |||||||||||
| Tomkins | 56 | % | 68316 | 1,802 | - | 14 | % | 315 | ||||||||||||
| ResCare | 98 | % | 132 | 344 | - | 20 | % | 41 | ||||||||||||
| JELD-WEN | 61%17 | 17018 | 56518 | - | 15%17 | 20319 | ||||||||||||||
| 1,085 | ||||||||||||||||||||
| Direct Investments - Sitel Worldwide | 68 | % | $ | 125 | $ | 692 | $ | - | 68 | % | 251 | |||||||||
| $ | 1,336 | |||||||||||||||||||
| Notes to Tables | |
| 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 $26 million (2011 − $33 million). Includes CDI, which was sold in July 2012. |
| 2 | In March 2012, Allison Transmission completed an initial public offering of approximately 30.0 million shares of common stock (NYSE:ALSN), including the over-allotment option, priced at $23.00 per share. At December 31, 2011, Allison Transmission was included in private companies of Onex Partners. |
| 3 | Based on the closing market values and net of the estimated MIP liability on these investments. |
| 4 | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
| 5 | Based on the C$ fair value of the investments in ONCAP's financial statements net of the estimated MIP liability on these investments of $17 million (2011 − $13 million) and a US$/C$ exchange rate of 1.0181 (2011 - 1.0170). |
| 6 | Based on the value of the last third-party investment. |
| 7 | Based on the carrying value of Onex Real Estate Partners' investments. |
| 8 | Based on the market values of investments in Onex Credit Partners' funds and Onex Credit Partners' Collateralized Loan Obligation. Onex Credit Partners' Collateralized Loan Obligation was established in March 2012. Excludes approximately $318 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. |
| 9 | Includes approximately $318 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund. |
| 10 | Calculated on a diluted basis. |
| 11 | Closing prices on June 30, 2012. |
| 12 | Excludes Onex' potential participation in the carried interest and includes shares related to the MIP. |
| 13 | Excludes shares held in connection with the MIP. |
| 14 | 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. |
| 15 | Amount presented for The Warranty Group is adjusted net earnings rather than EBITDA. Net earnings on a U.S. GAAP basis, including the impacts of purchase accounting, were $104 million. |
| 16 | LTM EBITDA excludes EBITDA from businesses divested as of June 30, 2012. |
| 17 | Onex and its limited partners interest is in convertible preferred shares. The ownership percentage is presented on an as-converted basis. |
| 18 | LTM EBITDA and net debt are presented for JELD-WEN Holding, inc. Net debt excludes $119 million of convertible notes held by Onex, Onex Partners III, Onex management and certain other limited partners. |
| 19 | Net of $83 million of the amount originally invested in JELD-WEN that was sold by Onex to certain limited partners and others as a co-investment in February 2012 and $12 million return of capital on the convertible promissory notes to date. |
| Onex Corporation |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited) (in millions of U.S. dollars) |
As at June 30, 2012 | As at December 31, 2011 | As at January 1, 2011 | |||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,414 | $ | 2,448 | $ | 2,532 | ||
| Short-term investments | 794 | 749 | 715 | |||||
| Accounts receivable | 3,447 | 3,272 | 3,430 | |||||
| Inventories | 4,684 | 4,428 | 4,004 | |||||
| Other current assets | 1,246 | 1,154 | 1,463 | |||||
| 12,585 | 12,051 | 12,144 | ||||||
| Property, plant and equipment | 5,054 | 5,102 | 4,056 | |||||
| Long-term investments | 5,696 | 5,415 | 4,864 | |||||
| Other non-current assets | 1,733 | 1,776 | 1,850 | |||||
| Intangible assets | 2,459 | 2,599 | 2,505 | |||||
| Goodwill | 2,460 | 2,434 | 2,634 | |||||
| $ | 29,987 | $ | 29,377 | $ | 28,053 | |||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 3,957 | $ | 3,893 | $ | 3,964 | ||
| Current portion of provisions | 268 | 263 | 257 | |||||
| Other current liabilities | 979 | 909 | 1,225 | |||||
| Current portion of long-term debt of operating companies, without recourse to Onex Corporation | 192 | 482 | 243 | |||||
| Current portion of warranty reserves and unearned premiums | 1,422 | 1,400 | 1,314 | |||||
| 6,818 | 6,947 | 7,003 | ||||||
| Non-current portion of provisions | 204 | 180 | 284 | |||||
| Long-term debt of operating companies, without recourse to Onex Corporation | 7,139 | 6,479 | 6,346 | |||||
| Non-current portion of warranty reserves and unearned premiums | 1,708 | 1,727 | 1,780 | |||||
| Other non-current liabilities | 2,495 | 2,376 | 1,964 | |||||
| Deferred income taxes | 1,045 | 1,059 | 936 | |||||
| Limited Partners' Interests | 5,000 | 4,980 | 5,650 | |||||
| 24,409 | 23,748 | 23,963 | ||||||
| Equity | ||||||||
| Share capital | 359 | 360 | 373 | |||||
| Non-controlling interests | 3,979 | 3,857 | 3,633 | |||||
| Retained earnings and accumulated other comprehensive earnings | 1,240 | 1,412 | 84 | |||||
| 5,578 | 5,629 | 4,090 | ||||||
| $ | 29,987 | $ | 29,377 | $ | 28,053 | |||
| Onex Corporation |
| CONSOLIDATED STATEMENTS OF EARNINGS |
| (Unaudited) | Three months ended June 30 | Six months ended June 30 | |||||||||||
| (in millions of U.S. dollars except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||
| Revenues | $ | 7,002 | $ | 6,229 | $ | 13,819 | $ | 11,876 | |||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,544 | ) |
(5,054 | ) |
(10,951 | ) |
(9,582 | ) |
|||||
| Operating expenses | (837 | ) | (696 | ) | (1,659 | ) | (1,371 | ) | |||||
| Interest income | 10 | 6 | 20 | 17 | |||||||||
| Amortization of property, plant and equipment | (154 | ) | (106 | ) | (294 | ) | (212 | ) | |||||
| Amortization of intangible assets and deferred charges | (79 | ) | (73 | ) | (162 | ) | (145 | ) | |||||
| Interest expense of operating companies | (158 | ) | (112 | ) | (295 | ) | (239 | ) | |||||
| Increase (decrease) in value of investments in associates at fair value, net | (358 |
) |
230 |
250 |
400 |
||||||||
| Stock-based compensation expense | (46 | ) | (68 | ) | (134 | ) | (156 | ) | |||||
| Other items | (76 | ) | (5 | ) | (121 | ) | (65 | ) | |||||
| Impairment of intangible assets and long-lived assets | (14 | ) | − | (16 | ) | − | |||||||
| Limited Partners' Interests recovery (charge) | 180 | (220 | ) | (306 | ) | (615 | ) | ||||||
| Earnings (loss) before income taxes and discontinued operations | (74 |
) |
131 |
151 |
(92 |
) |
|||||||
| Provision for income taxes | (93 | ) | (26 | ) | (139 | ) | (73 | ) | |||||
| Earnings (loss) from continuing operations | (167 | ) | 105 | 12 | (165 | ) | |||||||
| Earnings from discontinued operations | − | 1,656 | − | 1,721 | |||||||||
| Net Earnings (Loss) for the Period | $ | (167 | ) | $ | 1,761 | $ | 12 | $ | 1,556 | ||||
| Earnings (Loss) from Continuing Operations attributable to: | |||||||||||||
| Equity holders of Onex Corporation | $ | (200 | ) | $ | 18 | $ | (140 | ) | $ | (322 | ) | ||
| Non-controlling Interests | 33 | 87 | 152 | 157 | |||||||||
| Earnings (Loss) from Continuing Operations for the Period | $ | (167 | ) | $ | 105 | $ | 12 | $ | (165 | ) | |||
| Net Earnings (Loss) attributable to: | |||||||||||||
| Equity holders of Onex Corporation | $ | (200 | ) | $ | 1,666 | $ | (140 | ) | $ | 1,366 | |||
| Non-controlling Interests | 33 | 95 | 152 | 190 | |||||||||
| Net Earnings (Loss) for the Period | $ | (167 | ) | $ | 1,761 | $ | 12 | $ | 1,556 | ||||
| Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||||||||
| Basic and Diluted: | |||||||||||||
| Continuing operations | $ | (1.74 | ) | $ | 0.15 | $ | (1.22 | ) | $ | (2.72 | ) | ||
| Discontinued operations | − | 13.94 | − | 14.27 | |||||||||
| Net Earnings (Loss) for the Period | $ | (1.74 | ) | $ | 14.09 | $ | (1.22 | ) | $ | 11.55 | |||
| Onex Corporation |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited) | Six months ended June 30 | ||||||
| (in millions of U.S. dollars) | 2012 | 2011 | |||||
| Operating Activities | |||||||
| Earnings (loss) for the period from continuing operations | $ | 12 | $ | (165 | ) | ||
| Adjustments to earnings (loss) from continuing operations: | |||||||
| Provision for income taxes | 139 | 73 | |||||
| Interest income | (20 | ) | (17 | ) | |||
| Interest expense of operating companies | 295 | 239 | |||||
| Net earnings (loss) before interest and provision for income taxes | 426 | 130 | |||||
| Cash taxes paid | (197 | ) | (78 | ) | |||
| Items not affecting cash and cash equivalents: | |||||||
| Amortization of property, plant and equipment | 294 | 212 | |||||
| Amortization of intangible assets and deferred charges | 162 | 145 | |||||
| Amortization of deferred warranty costs | 20 | 31 | |||||
| Increase in value of investments in associates at fair value, net | (250 | ) | (400 | ) | |||
| Stock-based compensation expense | 113 | 126 | |||||
| Impairment of intangible assets and long-lived assets | 16 | − | |||||
| Limited Partners' Interests charge | 306 | 615 | |||||
| Change in provisions | 99 | 35 | |||||
| Other | 14 | (21 | ) | ||||
| 1,003 | 795 | ||||||
| Changes in non-cash working capital items: | |||||||
| Accounts receivable | (177 | ) | (201 | ) | |||
| Inventories | (254 | ) | (184 | ) | |||
| Other current assets | 35 | (6 | ) | ||||
| Accounts payable, accrued liabilities and other current liabilities | 173 | (507 | ) | ||||
| Decrease in cash and cash equivalents due to changes in working capital items | (223 | ) | (898 | ) | |||
| Increase (decrease) in other operating activities | (63 | ) | 1 | ||||
| Increase in warranty reserves and premiums | 30 | 18 | |||||
| Cash flows from operating activities of discontinued operations | − | 100 | |||||
| 747 | 16 | ||||||
| Financing Activities | |||||||
| Issuance of long-term debt | 2,009 | 447 | |||||
| Repayment of long-term debt | (1,726 | ) | (175 | ) | |||
| Cash interest paid | (240 | ) | (186 | ) | |||
| Cash dividends paid | (6 | ) | (7 | ) | |||
| Repurchase of share capital of Onex Corporation | (5 | ) | (12 | ) | |||
| Repurchase of share capital of operating companies | (123 | ) | (28 | ) | |||
| Financing provided by Limited Partners | 125 | 156 | |||||
| Issuance of share capital by operating companies | 18 | 148 | |||||
| Proceeds from sales of operating investments under continuing control | − | 268 | |||||
| Distributions paid to non-controlling interests and Limited Partners | (330 | ) | (1,172 | ) | |||
| Change in restricted cash for distribution to Limited Partners | (32 | ) | (735 | ) | |||
| Decrease due to other financing activities | (33 | ) | (28 | ) | |||
| Cash flows used for financing activities of discontinued operations | − | (42 | ) | ||||
| (343 | ) | (1,366 | ) | ||||
| Investing Activities | |||||||
| Acquisition of operating companies, net of cash and cash equivalents in acquired companies of nil (2011 - $44) | (49 | ) | (268 | ) | |||
| Purchase of property, plant and equipment | (326 | ) | (237 | ) | |||
| Proceeds from sale of investments in associates at fair value | 326 | − | |||||
| Cash interest and dividends received | 6 | 10 | |||||
| Net purchases of investments and securities | (412 | ) | (80 | ) | |||
| Increase (decrease) due to other investing activities | 19 | (8 | ) | ||||
| Cash flows from investing activities of discontinued operations | − | 1,992 | |||||
| (436 | ) | 1,409 | |||||
| Increase (Decrease) in Cash and Cash Equivalents for the Period | (32 | ) | 59 | ||||
| Increase (decrease) in cash due to changes in foreign exchange rates | (2 | ) | 16 | ||||
| Cash and cash equivalents, beginning of the period - continuing operations | 2,448 | 2,053 | |||||
| Cash and cash equivalents, beginning of the period - discontinued operations | − | 479 | |||||
| Cash and Cash Equivalents Held by Continuing Operations | $ | 2,414 | $ | 2,607 | |||
| Onex Corporation |
| INFORMATION BY INDUSTRY SEGMENT |
| FOR THE THREE MONTHS ENDED JUNE 30, 2012 |
| (Unaudited) (in millions of U.S. dollars) Three months ended June 30, 2012 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Building Products | Other(a) | Consolidated Total | ||||||||||||||||||
| Revenues | $ | 1,745 | $ | 1,338 | $ | 1,249 | $ | 311 | $ | 347 | $ | 669 | $ | 807 | $ | 536 | $ | 7,002 | |||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,608 | ) | (1,104 | ) | (859 | ) | (160 | ) | (225 | ) | (616 | ) | (647 | ) | (325 | ) | (5,544 | ) | |||||||||
| Operating expenses | (60 | ) | (46 | ) | (236 | ) | (99 | ) | (91 | ) | (15 | ) | (113 | ) | (177 | ) | (837 | ) | |||||||||
| Interest income | 1 | − | 1 | − | − | − | − | 8 | 10 | ||||||||||||||||||
| Amortization of property, plant and equipment | (18 | ) | (39 | ) | (33 | ) | (1 | ) | (7 | ) | (14 | ) | (25 | ) | (17 | ) | (154 | ) | |||||||||
| Amortization of intangible assets and deferred charges | (2 | ) | (7 | ) | (40 | ) | (4 | ) | (6 | ) | (3 | ) | (4 | ) | (13 | ) | (79 | ) | |||||||||
| Interest expense of operating companies | (2 | ) | (28 | ) | (57 | ) | (1 | ) | (34 | ) | (5 | ) | (15 | ) | (16 | ) | (158 | ) | |||||||||
| Decrease in value of investments in associates at fair value, net | − | − | − | − | − | − | − | (358 | ) | (358 | ) | ||||||||||||||||
| Stock-based compensation expense | (7 | ) | (2 | ) | (2 | ) | − | − | (1 | ) | (14 | ) | (20 | ) | (46 | ) | |||||||||||
| Other items | (17 | ) | (63 | ) | (6 | ) | 2 | (8 | ) | 1 | (4 | ) | 19 | (76 | ) | ||||||||||||
| Impairment of intangible assets and long-lived assets | − | − | (14 | ) | − | − | − | − | − | (14 | ) | ||||||||||||||||
| Limited Partners' Interests recovery | − | − | − | − | − | − | − | 180 | 180 | ||||||||||||||||||
| Earnings (loss) before income taxes | $ | 32 | $ | 49 | $ | 3 | $ | 48 | $ | (24 | ) | $ | 16 | $ | (15 | ) | $ | (183 | ) | $ | (74 | ) | |||||
| Provision for income taxes | (8 | ) | (16 | ) | (9 | ) | (18 | ) | (4 | ) | (6 | ) | (4 | ) | (28 | ) | (93 | ) | |||||||||
| Net earnings (loss) for the period | $ | 24 | $ | 33 | $ | (6 | ) | $ | 30 | $ | (28 | ) | $ | 10 | $ | (19 | ) | $ | (211 | ) | $ | (167 | ) | ||||
| Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 2 | $ | 5 | $ | (2 | ) | $ | 27 | $ | (15 | ) | $ | 6 | $ | (13 | ) | $ | (210 | ) | $ | (200 | ) | ||||
| Non-controlling interests | 22 | 28 | (4 | ) | 3 | (13 | ) | 4 | (6 | ) | $ | (1 | ) | $ | 33 | ||||||||||||
| Net earnings (loss) for the period | $ | 24 | $ | 33 | $ | (6 | ) | $ | 30 | $ | (28 | ) | $ | 10 | $ | (19 | ) | $ | (211 | ) | $ | (167 | ) | ||||
| (a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, Onex Credit Partners' CLO and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments. |
| Onex Corporation | ||||||||||||||||||||||||
| INFORMATION BY INDUSTRY SEGMENT | ||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED JUNE 30, 2011 | ||||||||||||||||||||||||
| (Unaudited) (in millions of U.S. dollars) Three months ended June 30, 2011 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Other(a) | Consolidated Total | ||||||||||||||||
| Revenues | $ | 1,830 | $ | 1,465 | $ | 1,254 | $ | 298 | $ | 350 | $ | 671 | $ | 361 | $ | 6,229 | ||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,685 | ) | (1,300 | ) | (862 | ) | (145 | ) | (229 | ) | (624 | ) | (209 | ) | (5,054 | ) | ||||||||
| Operating expenses | (59 | ) | (43 | ) | (231 | ) | (115 | ) | (91 | ) | (13 | ) | (144 | ) | (696 | ) | ||||||||
| Interest income | - | 1 | 1 | - | - | - | 4 | 6 | ||||||||||||||||
| Amortization of property, plant and equipment | (16 | ) | (27 | ) | (31 | ) | (1 | ) | (7 | ) | (12 | ) | (12 | ) | (106 | ) | ||||||||
| Amortization of intangible assets and deferred charges | (3 | ) | (8 | ) | (43 | ) | (5 | ) | (6 | ) | (3 | ) | (5 | ) | (73 | ) | ||||||||
| Interest expense of operating companies | (1 | ) | (22 | ) | (52 | ) | (1 | ) | (21 | ) | (8 | ) | (7 | ) | (112 | ) | ||||||||
| Increase in value of investments in associates at fair value, net | - | - | - | - | - | - | 230 | 230 | ||||||||||||||||
| Stock-based compensation expense | (10 | ) | (3 | ) | (2 | ) | - | - | (2 | ) | (51 | ) | (68 | ) | ||||||||||
| Other items | (3 | ) | − | (2 | ) | 3 | (3 | ) | - | − | (5 | ) | ||||||||||||
| Limited Partners' Interests charge | - | - | - | - | - | - | (220 | ) | (220 | ) | ||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | 53 | 63 | 32 | 34 | (7 | ) | 9 | (53 | ) | 131 | ||||||||||||||
| Recovery of (provision for) income taxes | (8 | ) | (20 | ) | (17 | ) | (15 | ) | (3 | ) | (6 | ) | 43 | (26 | ) | |||||||||
| Earnings (loss) from continuing operations | 45 | 43 | 15 | 19 | (10 | ) | 3 | (10 | ) | 105 | ||||||||||||||
| Earnings from discontinued operations(b) | - | - | 570 | - | - | - | 1,086 | 1,656 | ||||||||||||||||
| Net earnings (loss) for the period | $ | 45 | $ | 43 | $ | 585 | $ | 19 | $ | (10 | ) | $ | 3 | $ | 1,076 | $ | 1,761 | |||||||
| Net earnings (loss) attributable to: | ||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 3 | $ | 3 | $ | 571 | $ | 18 | $ | (7 | ) | $ | 1 | $ | 1,077 | $ | 1,666 | |||||||
| Non-controlling interests | 42 | 40 | 14 | 1 | (3 | ) | 2 | (1 | ) | 95 | ||||||||||||||
| Net earnings (loss) for the period | $ | 45 | $ | 43 | $ | 585 | $ | 19 | $ | (10 | ) | $ | 3 | $ | 1,076 | $ | 1,761 | |||||||
| (a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments. |
| (b) | Discontinued operations includes EMSC in the Healthcare segment (sold in May 2011) and Husky in the Other segment (sold in June 2011). |
| Onex Corporation |
| INFORMATION BY INDUSTRY SEGMENT |
| FOR THE SIX MONTHS ENDED JUNE 30, 2012 |
| (Unaudited) (in millions of U.S. dollars) Six months ended June 30, 2012 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Building Products | Other(a) | Consolidated Total | ||||||||||||||||||
| Revenues | $ | 3,436 | $ | 2,604 | $ | 2,458 | $ | 604 | $ | 711 | $ | 1,416 | $ | 1,538 | $ | 1,052 | $ | 13,819 | |||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (3,167 | ) | (2,115 | ) | (1,700 | ) | (308 | ) | (458 | ) | (1,309 | ) | (1,255 | ) | (639 | ) | (10,951 | ) | |||||||||
| Operating expenses | (115 | ) | (93 | ) | (471 | ) | (202 | ) | (184 | ) | (32 | ) | (227 | ) | (335 | ) | (1,659 | ) | |||||||||
| Interest income | 1 | − | 2 | − | − | − | 1 | 16 | 20 | ||||||||||||||||||
| Amortization of property, plant and equipment | (35 | ) | (67 | ) | (65 | ) | (2 | ) | (13 | ) | (27 | ) | (51 | ) | (34 | ) | (294 | ) | |||||||||
| Amortization of intangible assets and deferred charges | (5 | ) | (14 | ) | (82 | ) | (8 | ) | (13 | ) | (6 | ) | (8 | ) | (26 | ) | (162 | ) | |||||||||
| Interest expense of operating companies | (3 | ) | (46 | ) | (105 | ) | (2 | ) | (56 | ) | (26 | ) | (30 | ) | (27 | ) | (295 | ) | |||||||||
| Increase in value of investments in associates at fair value, net | − | − | − | − | − | − | − | 250 | 250 | ||||||||||||||||||
| Stock-based compensation expense | (17 | ) | (7 | ) | (5 | ) | − | − | (1 | ) | (14 | ) | (90 | ) | (134 | ) | |||||||||||
| Other items | (16 | ) | (60 | ) | (9 | ) | 8 | (9 | ) | 1 | (28 | ) | (8 | ) | (121 | ) | |||||||||||
| Impairment of intangible assets and long-lived assets | | − | | | − | | | (14 | ) | | − | | | (1 | ) | | − | | | (1 | ) | | − | | | (16 | ) |
| Limited Partners' Interests charge | − | − | − | − | − | − | − | (306 | ) | (306 | ) | ||||||||||||||||
| Earnings (loss) before income taxes | $ | 79 | $ | 202 | $ | 9 | $ | 90 | $ | (23 | ) | $ | 16 | $ | (75 | ) | $ | (147 | ) | $ | 151 | ||||||
| Provision for income taxes | (12 | ) | (64 | ) | − | (34 | ) | (7 | ) | (6 | ) | (2 | ) | (14 | ) | (139 | ) | ||||||||||
| Net earnings (loss) for the period | $ | 67 | $ | 138 | $ | 9 | $ | 56 | $ | (30 | ) | $ | 10 | $ | (77 | ) | $ | (161 | ) | $ | 12 | ||||||
| Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 6 | $ | 22 | $ | 7 | $ | 51 | $ | (16 | ) | $ | 6 | $ | (53 | ) | $ | (163 | ) | $ | (140 | ) | |||||
| Non-controlling interests | 61 | 116 | 2 | 5 | (14 | ) | 4 | (24 | ) | 2 | 152 | ||||||||||||||||
| Net earnings (loss) for the period | $ | 67 | $ | 138 | $ | 9 | $ | 56 | $ | (30 | ) | $ | 10 | $ | (77 | ) | $ | (161 | ) | $ | 12 | ||||||
| Total assets | $ | 2,951 | $ | 5,413 | $ | 4,053 | $ | 4,834 | $ | 625 | $ | 979 | $ | 2,600 | $ | 8,532 | $ | 29,987 | |||||||||
| Long-term debt(b) | $ | − | $ | 1,137 | $ | 2,656 | $ | 259 | $ | 717 | $ | 299 | $ | 568 | $ | 1,695 | $ | 7,331 | |||||||||
| (a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, Onex Credit Partner's CLO and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments. |
| (b) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
| Onex Corporation | ||||||||||||||||||||||||
| INFORMATION BY INDUSTRY SEGMENT | ||||||||||||||||||||||||
| FOR THE SIX MONTHS ENDED JUNE 30, 2011 | ||||||||||||||||||||||||
| (Unaudited) (in millions of U.S. dollars) Six months ended June 30, 2011 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Other(a) | Consolidated Total | ||||||||||||||||
| Revenues | $ | 3,630 | $ | 2,515 | $ | 2,454 | $ | 597 | $ | 693 | $ | 1,335 | $ | 652 | $ | 11,876 | ||||||||
| Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (3,349 | ) | (2,190 | ) | (1,696 | ) | (286 | ) | (453 | ) | (1,236 | ) | (372 | ) | (9,582 | ) | ||||||||
| Operating expenses | (118 | ) | (85 | ) | (462 | ) | (221 | ) | (183 | ) | (29 | ) | (273 | ) | (1,371 | ) | ||||||||
| Interest income | - | 1 | 2 | - | - | - | 14 | 17 | ||||||||||||||||
| Amortization of property, plant and equipment | (31 | ) | (53 | ) | (63 | ) | (2 | ) | (15 | ) | (24 | ) | (24 | ) | (212 | ) | ||||||||
| Amortization of intangible assets and deferred charges | (7 | ) | (15 | ) | (85 | ) | (9 | ) | (12 | ) | (6 | ) | (11 | ) | (145 | ) | ||||||||
| Interest expense of operating companies | (3 | ) | (43 | ) | (121 | ) | (2 | ) | (40 | ) | (17 | ) | (13 | ) | (239 | ) | ||||||||
| Increase in value of investments in associates at fair value, net | - | - | - | - | - | - | 400 | 400 | ||||||||||||||||
| Stock-based compensation expense | (27 | ) | (6 | ) | (3 | ) | - | - | (2 | ) | (118 | ) | (156 | ) | ||||||||||
| Other items | (9 | ) | 1 | (9 | ) | 5 | (7 | ) | - | (46 | ) | (65 | ) | |||||||||||
| Limited Partners' Interests charge | - | - | - | - | - | - | (615 | ) | (615 | ) | ||||||||||||||
| Earnings (loss) before income taxes and discontinued operations | 86 | 125 | 17 | 82 | (17 | ) | 21 | (406 | ) | (92 | ) | |||||||||||||
| Recovery of (provision for) income taxes | (11 | ) | (36 | ) | (26 | ) | (27 | ) | - | (10 | ) | 37 | (73 | ) | ||||||||||
| Earnings (loss) from continuing operations | 75 | 89 | (9 | ) | 55 | (17 | ) | 11 | (369 | ) | (165 | ) | ||||||||||||
| Earnings from discontinued operations(b) | - | - | 606 | - | - | - | 1,115 | 1,721 | ||||||||||||||||
| Net earnings (loss) for the period | $ | 75 | $ | 89 | $ | 597 | $ | 55 | $ | (17 | ) | $ | 11 | $ | 746 | $ | 1,556 | |||||||
| Net earnings (loss) attributable to: | ||||||||||||||||||||||||
| Equity holders of Onex Corporation | $ | 6 | $ | 14 | $ | 552 | $ | 50 | $ | (12 | ) | $ | 9 | $ | 747 | $ | 1,366 | |||||||
| Non-controlling interests | 69 | 75 | 45 | 5 | (5 | ) | 2 | (1 | ) | 190 | ||||||||||||||
| Net earnings (loss) for the period | $ | 75 | $ | 89 | $ | 597 | $ | 55 | $ | (17 | ) | $ | 11 | $ | 746 | $ | 1,556 | |||||||
(Unaudited) (in millions of U.S. dollars) As at December 31, 2011 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Building Products | Other(a) | Consolidated Total | |||||||||||||||||
| Total assets | $ | 2,970 | $ | 4,978 | $ | 4,194 | $ | 4,808 | $ | 631 | $ | 1,045 | $ | 2,581 | $ | 8,170 | $ | 29,377 | ||||||||
| Long-term debt(c) | $ | - | $ | 1,157 | $ | 2,670 | $ | 203 | $ | 652 | $ | 377 | $ | 481 | $ | 1,421 | $ | 6,961 | ||||||||
| (a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments. |
| (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. |
Contact Information:
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com