Onex Corporation
TSX : OCX

Onex Corporation

August 13, 2015 07:00 ET

Onex Reports Second-Quarter 2015 Results

TORONTO, ONTARIO--(Marketwired - Aug. 13, 2015) -

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, 2015 and an update on matters following quarter-end.

Highlights

  • Since April, we invested or committed to invest more than $900 million in six businesses, of which approximately $280 million is from Onex. The aggregate purchase price for these businesses was approximately $2.3 billion.
    • Schumacher Group, the third largest U.S. provider of outsourced emergency and hospital medicine clinical staffing, as well as healthcare advisory services.
    • Jack's Family Restaurants, a leading regional quick-service restaurant operator.
    • Hospital Physician Partners, the fourth largest U.S. provider of emergency and hospital medicine clinical staffing services, which is being purchased by Schumacher Group as an add-on, with a further investment from Onex.
    • Ingersoll Tillage Group, a global leader in the manufacturing of high-precision consumable wear components embedded into agricultural soil preparation and seeding equipment implements.
    • Chatters Canada, the largest retailer of professional hair care products in Canada and one of the largest hair salon operators in the country.
    • Mavis Discount Tire's add-on acquisition of Somerset Tire Service, one of the largest tire chains in the United States.
  • In June, we called CLO-1, which generated an 18% net IRR on Onex' investment over our three-year holding period.
  • In July, we completed CLO-9 raising approximately $750 million, of which $45 million of equity was from Onex.
  • In the first seven months of 2015, more than 2.8 million Subordinate Voting Shares ("SVS") were repurchased under Onex' Normal Course Issuer Bids for a total cost of $162 million (C$201 million), or an average cost per share of C$70.40.

Recent Performance

"We've been busy over the last several months," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "Despite a challenging acquisition environment, we're delighted to have undertaken six new investments. Onex remains in an excellent position to capitalize on investment opportunities. In addition to our substantial cash and near cash balance, we have approximately $3 billion of uncalled committed capital available from our limited partners."

Onex management continues to share in the risks and rewards of our businesses through the team's significant investment in everything we buy. At June 30, 2015, 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 twelve months ended June 30, 2015, Onex' capital per share grew by 4% to $54.72 (C$68.35). While the value of Onex Partners' and ONCAP's operating businesses, including realizations and distributions, increased by 13% in the last twelve months, our significant cash balance muted the overall growth in Onex' capital. Over the last five years, Onex' capital per share has grown at a 13% compounded annual growth rate.

The second goal is to grow our fee-generating assets by 10% per year. For the twelve months ended June 30, 2015, Onex' fee-generating assets decreased by 4% to $14.3 billion due to significant realizations in the second half of 2014, which were partially offset by two new CLO issuances. Over the last five years, Onex' fee-generating assets have grown at a compounded annual growth rate of 13%. As we reach 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 our limited partners and other investors.

Onex paid a second-quarter dividend of C$0.0625 per SVS on July 31, 2015 to shareholders of record on July 10, 2015.

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 ended June 30, 2015, revenues increased 13% to $5.2 billion as compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from York Risk Services Group acquired in late 2014, and from the acquisitions of SIG Combibloc Group and Survitec Group in March 2015. Onex reported a consolidated net loss for the period of $289 million compared to net earnings of $39 million in the same quarter of 2014. This decrease was primarily a result of earnings from discontinued operations in 2014 of $419 million, which included the results of Spirit AeroSystems that was sold during 2014.

On a consolidated basis for the six months ended June 30, 2015, revenues increased 9% to $9.7 billion. Onex reported a consolidated net loss for the period of $373 million compared to net earnings of $138 million in the same period of 2014. The same factors that contributed to the decrease in earnings for the second quarter of 2015 drove the decrease in earnings for the first half of 2015.

Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for three and six months ended June 30, 2015 and 2014 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 and are also available on SEDAR at www.sedar.com. Also attached is the "How We Are Invested" schedule, which details Onex' $5.9 billion of capital and provides private company performance information. The Schedule of Fees and Expenses is available on Onex' website, www.onex.com.

Webcast

Onex management will host a conference call to review Onex' second-quarter 2015 results on Thursday, August 13 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

Onex is one of the oldest and most successful private equity firms with offices in Toronto, New York and London. 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 $22 billion of assets under management, including $5.9 billion of Onex capital, in private equity and credit securities. Onex invests its capital through its two investing platforms and is the largest limited partner in each of its private equity funds.

Onex' businesses have assets of $37 billion, generate annual revenues of $25 billion and employ approximately 207,000 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 June 30,
2015
December 31,
2014
Private Equity
Onex Partners
Private Companies(1) $ 2,421 $ 1,748
Public Companies(2) 23 30
Unrealized Carried Interest(3) 149 115
ONCAP(4) 330 292
Direct Investments
Private Companies(5) 55 100
Public Companies(2) 209 210
3,187 2,495
Credit(6) 459 366
Real Estate(7) 263 242
722 608
Other Investments 15 24
Cash and Near-Cash(8) 2,020 2,877
Debt(9) - -
$ 5,944 $ 6,004
Onex' Capital per Share (June 30, 2015 - C$68.35; December 31, 2014 - C$62.77)(10)(11) $ 54.72 $ 54.11
(1) Based on the fair value of the investments in Onex Partners' financial statements net of the estimated Management Investment Plan ("MIP") liability on these investments of $51 million (December 31, 2014 - $40 million).
(2) Based on closing prices on June 30, 2015 and December 31, 2014.
(3) Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds.
(4) Based on the fair value of the investments in ONCAP's financial statements net of the estimated management incentive programs on these investments of $13 million (December 31, 2014 - $9 million) and a US$/C$exchange rate of 1.2490 (December 31, 2014 - 1.1601).
(5) Based on the expected proceeds, including an earn-out component at June 30, 2015. Based on the fair value at December 31, 2014.
(6) Based on the market values of investments in Onex Credit Funds of $131 million (December 31, 2014 - $129 million), Collateralized Loan Obligations and the warehouse facilities for CLO-9 (closed early July 2015), CLO-10 and credit's anticipated first European CLO of $328 million (December 31, 2014 - $237 million). Excludes $356 million (December 31, 2014 - $346 million) invested in a segregated unleveraged senior secured loan strategy fund, which is included with cash and near-cash items.
(7) Based on the fair values. During the first half of 2015, Onex invested $41 million in Flushing Town Center and sold two investments.
(8) Includes $356 million (December 31, 2014 - $346 million) invested in a segregated unleveraged senior secured loan strategy fund and $768 million of investments managed by third-party account managers.
(9) Represents debt at Onex Corporation, the parent company.
(10) Calculated on a fully diluted basis. Fully diluted shares were 110.4 million at June 30, 2015 (December 31, 2014 - 112.9 million). Fully diluted shares include all outstanding Subordinate Voting Shares and outstanding Stock Options that have met the minimum 25% price appreciation threshold.
(11) The change in Onex' Capital per Share is impacted by fair value changes of Onex' investments. Share repurchases and options exercised during the period will have an impact on the calculation of Onex' Capital per Share to the extent that the price for share repurchases and option exercises is above or below Onex' Capital per Share.

HOW WE ARE INVESTED

Public and Private Company Information

Public Companies

As at June 30, 2015
Shares Subject to Carried Interest
(millions)
Shares Held by Onex
(millions)
Closing Price
per Share(1)
Market Value
of Onex' Investment
Onex Partners - Genesis Healthcare(2) 10.7 3.5 $ 6.60 $ 23
Direct Investments - Celestica(3) - 17.9 $ 11.64 209
$ 232
Significant Private Companies


As at June 30, 2015
Onex'
and its
Limited
Partners'
Ownership
LTM
EBITDA(4)
Net Debt Cumul-
ative
Distrib-
utions
Onex'
Econ-
omic
Owner-
ship
Original
Cost of
Onex'
Invest-
ment
Onex Partners
Carestream Health 91 % $ 383 $ 1,980 $ 1,311 33%(3 ) $ 186
ResCare 98 % 132 564 235 20 % 41
JELD-WEN 83%(5 ) 295(6 ) 817(6 ) - (7 ) 21%(5 ) 217(8 )
SGS International 93 % 111(9 ) 547 - 23 % 66
USI 88 % 340(9 ) 1,681 - 25 % 170
BBAM(10) 50 % 92 (48)(11 ) 150 13 % 66
KraussMaffei 96 % EUR 127 EUR 204 - 24 % 92(12 )
Emerald Expositions 99 % 145(9 ) 738 - 24 % 119
York 88 % 111(9 ) 938 - 29 % 173
AIT 40 % n/a n/a n/a 9 % 45
Survitec 99 % £45 £233 - 22 % 73(13 )
SIG 99 % EUR 430 EUR 2,648 - 33 % 405
$ 1,653
(1) Closing prices on June 30, 2015.
(2) In February 2015, Skilled Healthcare Group, Inc. combined with Genesis HealthCare, LLC. The combined company operates under the Genesis Healthcare name and continues to be publicly traded (NYSE: GEN).
(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) Onex' and its limited partners' investment includes convertible preferred shares. The ownership percentage is presented on an as-converted basis.
(6) LTM EBITDA and net debt are presented for JELD-WEN Holding, inc.
(7) The table above excludes JELD-WEN's July 2015 distribution of $432 million to shareholders, of which Onex' share was $89 million.
(8) Net of a $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.
(9) LTM EBITDA for SGS International, USI, Emerald Expositions and York is presented on a pro-forma basis to reflect the impact of acquired businesses.
(10) Ownership percentages, LTM EBITDA, net debt and cumulative distributions are presented for BBAM and do not reflect information for Onex' investments in Meridian Aviation Partners Limited or FLY Leasing Limited (NYSE: FLY). The Original Cost of Onex' Investment includes $19 million invested in Meridian Aviation Partners Limited and $5 million invested in FLY Leasing Limited.
(11) Net debt for BBAM represents unrestricted cash, reduced for accrued compensation liabilities.
(12) 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.
(13) The investment in Survitec was made in pounds sterling and converted to U.S. dollars using the prevailing exchange rate on the date of the investment.
Onex Corporation
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions of U.S. dollars)
As at
June 30,
2015
As at
December 31,
2014
Assets
Current assets
Cash and cash equivalents$2,538 $3,764
Short-term investments 243 -
Accounts receivable 2,931 3,085
Inventories 2,441 2,013
Other current assets 1,212 803
Assets held for sale 616 -
Assets held by discontinued operations 613 680
10,594 10,345
Property, plant and equipment 3,367 2,902
Long-term investments 6,562 5,026
Other non-current assets 908 666
Intangible assets 6,679 5,069
Goodwill 6,980 4,928
$35,090 $28,936
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities$3,890 $3,353
Current portion of provisions 464 273
Other current liabilities 1,041 965
Current portion of long-term debt of operating companies, without recourse to Onex Corporation 508 408
Liabilities held for sale 82 -
Liabilities held by discontinued operations 992 545
6,977 5,544
Non-current portion of provisions 352 324
Long-term debt of operating companies, without recourse to Onex Corporation 15,888 12,874
Other non-current liabilities 1,655 1,302
Deferred income taxes 1,634 1,241
Limited Partners' Interests 7,223 5,153
33,729 26,438
Equity
Share capital 334 336
Non-controlling interests 1,242 1,692
Retained earnings and accumulated other comprehensive earnings (215) 470
1,361 2,498
$35,090 $28,936
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)2015 2014 2015 2014
Revenues$5,245 $4,640 $9,698 $8,878
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (3,600) (3,389) (6,671) (6,497)
Operating expenses (1,056) (825) (2,009) (1,619)
Interest income 61 36 117 67
Amortization of property, plant and equipment (134) (95) (235) (187)
Amortization of intangible assets and deferred charges (162) (114) (290) (232)
Interest expense of operating companies (225) (161) (412) (313)
Increase in value of investments in joint ventures and associates at fair value, net 42 33 61 388
Stock-based compensation expense (27) (65) (86) (148)
Other income (expense) (5) (119) 33 (188)
Recovery (impairment) of intangible assets and long-lived assets, net - 37 (9) 37
Limited Partners' Interests charge (361) (326) (539) (576)
Loss before income taxes and discontinued operations (222) (348) (342) (390)
Provision for income taxes (49) (32) (68) (42)
Loss from continuing operations (271) (380) (410) (432)
Earnings (Loss) from discontinued operations (18) 419 37 570
Net Earnings (Loss) for the Period$(289)$39 $(373)$138
Earnings (Loss) from Continuing Operations attributable to:
Equity holders of Onex Corporation$(293)$(419)$(458)$(491)
Non-controlling Interests 22 39 48 59
Loss from Continuing Operations for the Period$(271)$(380)$(410)$(432)
Net Earnings (Loss) attributable to:
Equity holders of Onex Corporation$(306)$(89)$(413)$(129)
Non-controlling Interests 17 128 40 267
Net Earnings (Loss) for the Period$(289)$39 (373)$138
Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation
Basic and Diluted:
Continuing operations$(2.74)$(3.79)$(4.24)$(4.43)
Discontinued operations (0.12) 2.99 0.41 3.27
Net Loss per Subordinate Voting Share for the Period$(2.86)$(0.80)$(3.83)$(1.16)
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)Six months ended
June 30
(in millions of U.S. dollars)2015 2014
Operating Activities
Loss for the period from continuing operations$(410)$(432)
Adjustments to loss from continuing operations:
Provision for income taxes 68 42
Interest income (117) (67)
Interest expense of operating companies 412 313
Net loss before interest and provision for income taxes (47) (144)
Cash taxes paid (125) (79)
Items not affecting cash and cash equivalents:
Amortization of property, plant and equipment 235 187
Amortization of intangible assets and deferred charges 290 232
Increase in value of investments in joint ventures and associates at fair value, net (61) (388)
Stock-based compensation 85 90
Gain on Onex Credit asset management platform (38) -
Gain on sale of B.C. Sugar residual property (36) -
Foreign exchange gain (98) (2)
Impairment (recovery) of intangibles and long-lived assets, net 9 (37)
Limited Partners' Interests charge 539 576
Change in provisions (3) 48
Other 19 33
769 516
Changes in non-cash working capital items:
Accounts receivable 46 (193)
Inventories (117) (77)
Other current assets 12 (69)
Accounts payable, accrued liabilities and other current liabilities (47) (2)
Decrease in cash and cash equivalents due to changes in non-cash working capital items (106) (341)
Decrease in other operating activities (42) (30)
Cash flows from operating activities of discontinued operations 73 326
694 471
Financing Activities
Issuance of long-term debt 1,767 2,750
Repayment of long-term debt (1,191) (1,011)
Cash interest paid (351) (320)
Cash dividends paid (9) (8)
Repurchase of share capital of Onex Corporation (145) (53)
Repurchase of share capital of operating companies (404) (59)
Financing provided by Limited Partners 1,440 184
Issuance of share capital by operating companies 30 15
Proceeds from sale of interests in operating company under continuing control - 171
Purchase of shares of operating company under continuing control - (66)
Distributions paid to non-controlling interests and Limited Partners (139) (1,278)
Decrease due to other financing activities (47) (17)
Cash flows used in financing activities of discontinued operations (45) (190)
906 118
Investing Activities
Acquisitions, net of cash and cash equivalents in acquired companies of $344 (2014 - $1) (1,328) (605)
Purchase of property, plant and equipment (230) (173)
Proceeds from sale of property, plant and equipment 58 18
Proceeds from sale of investments in joint ventures and associates at fair value and other investments 10 1,418
Proceeds from sales of operating investments no longer controlled - 258
Distributions received from investments in joint ventures and associates 31 27
Purchase of investment in joint venture of ONCAP (70) -
Change in restricted cash for acquisition of an operating company (295) -
Cash interest received 115 50
Net purchases of investments and securities for CLOs and Onex Credit Funds (279) (765)
Net purchases of investments and securities at parent company (747) -
Decrease due to other investing activities (24) (29)
Cash flows used in investing activities of discontinued operations (33) (528)
(2,792) (329)
Increase (Decrease) in Cash and Cash Equivalents for the Period (1,192) 260
Increase (decrease) in cash due to changes in foreign exchange rates (22) 1
Cash and cash equivalents, beginning of the period - continuing operations 3,755 2,611
Cash and cash equivalents, beginning of the period - discontinued operations 13 580
Cash and Cash Equivalents 2,554 3,452
Cash and cash equivalents held by discontinued operations and disposal group 16 186
Cash and Cash Equivalents Held by Continuing Operations$2,538 $3,266
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2015
(Unaudited)
(in millions of U.S. dollars)
Electronics
Manufacturing
Services
Healthcare
Imaging
Health
and
Human
Services
Building
Products
Insurance
Services
Packaging
Products
and
Services
Credit
Strategies
Other(a) Consolidated
Total
Revenues$1,418 $545 $453 $879 $455 $606 $2 $887 $5,245
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (1,303) (310) (347) (677) (404) - (559) (3,600)
Operating expenses (50) (141) (80) (115) (350) (67) (16) (237) (1,056)
Interest income - - - 1 - 1 57 2 61
Amortization of property, plant and equipment (15) (13) (7) (27) (4) (44) - (24) (134)
Amortization of intangible assets and deferred charges (3) (26) (3) (2) (48) (39) (1) (40) (162)
Interest expense of operating companies (1) (35) (6) (13) (45) (58) (30) (37) (225)
Increase in value of investments in joint ventures and associates at fair value, net - - 42 42
Stock-based compensation expense (8) (1) (12) (5) (1) - - (27)
Other income (expense) (9) (1) (7) (21) 100 (9) (58) (5)
Limited Partners' Interests charge - (3) (358) (361)
Earnings (loss) before income taxes and discontinued operations 29 18 10 27 (18) 94 - (382) (222)
Recovery of (provision for) income taxes (5) (2) (4) (15) 6 (23) - (6) (49)
Earnings (loss) from continuing operations 24 16 6 12 (12) 71 - (388) (271)
Loss from discontinued operations(b) - - (18) (18)
Net earnings (loss) for the period$24 $16 $6 $12 $(12)$71 $- $(406)$(289)
Net earnings (loss) attributable to:
Equity holders of Onex Corporation$4 $15 $6 $11 $(11)$71 $- $(402)$(306)
Non-controlling interests 20 1 - 1 (1) - - (4) 17
Net earnings (loss) for the period$24 $16 $6 $12 $(12)$71 $- $(406)$(289)
(a)Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, ITG (since June 2015) and Mavis Discount Tire.
(b)Represents the after-tax results of Sitel Worldwide.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2014

(Unaudited)
(in millions of U.S. dollars)
Electronics
Manufacturing
Services
Healthcare
Imaging
Health
and
Human
Services
Building
Products

Insurance
Services
Packaging
Products
and
Services(a)

Credit
Strategies


Other
(a)(b)

Consolidated
Total
Revenues$1,472 $601 $432 $912 $235 $124 $ $864 $4,640
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (1,350) (350) (324) (738) - (76) (551) (3,389)
Operating expenses (55) (146) (71) (119) (153) (18) (16) (247) (825)
Interest income - 1 - 1 - - 34 36
Amortization of property, plant and equipment (14) (17) (6) (28) (2) (4) (24) (95)
Amortization of intangible assets and deferred charges (3) (31) (2) (5) (37) (8) (28) (114)
Interest expense of operating companies (1) (38) (8) (20) (29) (10) (15) (40) (161)
Increase in value of investments in joint ventures and associates at fair value, net - 33 33
Stock-based compensation (expense) recovery (6) (1) 4 (4) - (58) (65)
Other income (expense) 4 (3) (6) (16) (26) 1 5 (78) (119)
Recovery (impairment) of intangible assets and long-lived assets, net (2) - 39 37
Limited Partners' Interests charge (326) (326)
Earnings (loss) before income taxes and discontinued operations 47 16 15 (11) (16) 9 8 (416) (348)
Recovery of (provision for) income taxes (6) (4) (6) (9) 7 (1) (13) (32)
Earnings (loss) from continuing operations 41 12 9 (20) (9) 8 8 (429) (380)
Earnings from discontinued operations(c) - 419 419
Net earnings (loss) for the period$41 $12 $9 $(20)$(9)$8 $8 $(10)$39
Net earnings (loss) attributable to:
Equity holders of Onex Corporation$4 $11 $9 $(18)$(9)$7 $8 $(101)$(89)
Non-controlling interests 37 1 - (2) 1 91 128
Net earnings (loss) for the period$41 $12 $9 $(20)$(9)$8 $8 $(10)$39
(a)The other segment has been restated to show the results of SGS International as a new reportable industry segment, packaging products and services.
(b)Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, Tomkins and certain Onex Real Estate investments.
(c)Represents the after-tax results of The Warranty Group, Spirit AeroSystems, Skilled Healthcare Group and Sitel Worldwide.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2015

(Unaudited)
(in millions of U.S. dollars)
Electronics
Manufacturing
Services

Healthcare
Imaging
Health
and
Human
Services
Building
Products
Insurance
Services
Packaging
Products
and
Services
Credit
Strategies
Other(a) Consolidated
Total
Revenues$2,716 $1,015 $895 $1,616 $886 $826 $3 $1,741 $9,698
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (2,492) (600) (683) (1,268) (555) - (1,073) (6,671)
Operating expenses (104) (283) (156) (225) (684) (91) (23) (443) (2,009)
Interest income - 1 - 1 - 1 111 3 117
Amortization of property, plant and equipment (29) (30) (14) (53) (8) (56) - (45) (235)
Amortization of intangible assets and deferred charges (5) (52) (7) (5) (95) (53) (2) (71) (290)
Interest expense of operating companies (2) (71) (10) (25) (91) (84) (54) (75) (412)
Increase in value of investments in joint ventures and associates at fair value, net - - 61 61
Stock-based compensation expense (19) (2) (21) (10) (1) - (33) (86)
Other income (expense) (9) (1) (4) (19) (43) 140 33 (64) 33
Impairment of intangible assets and long-lived assets, net (7) (2) (9)
Limited Partners' Interests charge (539) (539)
Earnings (loss) before income taxes and discontinued operations 56 (23) 21 (6) (45) 125 68 (538) (342)
Recovery of (provision for) income taxes (12) (1) (9) (7) 18 (26) - (31) (68)
Earnings (loss) from continuing operations 44 (24) 12 (13) (27) 99 68 (569) (410)
Earnings from discontinued operations(b) - - 37 37
Net earnings (loss) for the period$44 $(24)$12 $(13)$(27)$99 $68 $(532)$(373)
Net earnings (loss) attributable to:
Equity holders of Onex Corporation$6 $(21)$12 $(12)$(24)$99 $68 $(541)$(413)
Non-controlling interests 38 (3) - (1) (3) - - 9 40
Net earnings (loss) for the period$44 $(24)$12 $(13)$(27)$99 $68 $(532)$(373)
Total assets(c)$2,625 $1,651 $1,111 $2,354 $5,056 $6,569 $5,478 $10,246 $35,090
Long-term debt(c)(d)$273 $2,038 $536 $835 $2,634 $3,517 $3,865 $2,698 $16,396
(a)Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, ITG (since June 2015) and Mavis Discount Tire.
(b)Represents the after-tax results of Skilled Healthcare Group and Sitel Worldwide.
(c)The other segment includes Sitel Worldwide, which was a discontinued operation at June 30, 2015.
(d)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, 2014

(Unaudited)
(in millions of U.S. dollars)
Electronics
Manufacturing
Services

Healthcare
Imaging
Health
and
Human
Services
Building
Products
Insurance
Services
Packaging
Products
and
Services(a)
Credit
Strategies


Other(a)(b)
Consolidated
Total
Revenues$2,784 $1,120 $853 $1,677 $438 $245 $ $1,761 $8,878
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (2,555) (656) (640) (1,384) - (154) (1,108) (6,497)
Operating expenses (105) (289) (151) (235) (294) (37) (23) (485) (1,619)
Interest income - 2 - 1 - - 62 2 67
Amortization of property, plant and equipment (28) (34) (12) (56) (3) (7) (47) (187)
Amortization of intangible assets and deferred charges (6) (65) (5) (9) (72) (17) (58) (232)
Interest expense of operating companies (2) (77) (16) (39) (56) (20) (24) (79) (313)
Increase in value of investments in joint ventures and associates at fair value, net - 388 388
Stock-based compensation expense (17) (2) (1) (8) (7) - (113) (148)
Other income (expense) 6 (1) (6) (21) (37) 5 (1) (133) (188)
Recovery (impairment) of intangible assets and long-lived assets, net (2) - 39 37
Limited Partners' Interests charge (576) (576)
Earnings (loss) before income taxes and discontinued operations 77 (2) 22 (76) (31) 15 14 (409) (390)
Recovery of (provision for) income taxes 1 (9) (9) (8) 12 (2) (27) (42)
Earnings (loss) from continuing operations 78 (11) 13 (84) (19) 13 14 (436) (432)
Earnings from discontinued operations(c) - 570 570
Net earnings (loss) for the period$78 $(11)$13 $(84)$(19)$13 $14 $134 $138
Net earnings (loss) attributable to:
Equity holders of Onex Corporation$8 $(10)$13 $(72)$(18)$12 $14 $(76)$(129)
Non-controlling interests 70 (1) - (12) (1) 1 210 267
Net earnings (loss) for the period$78 $(11)$13 $(84)$(19)$13 $14 $134 $138
(Unaudited)
(in millions of U.S. dollars)
As at December 31, 2014
Electronics
Manufacturing
Services
Healthcare
Imaging
Health
and
Human
Services
Building
Products
Insurance
Services
Packaging
Products
and
Services(a)

Credit
Strategies


Other(a)(b)

Consolidated
Total
Total assets(d)$2,584$1,803$1,110$2,351$5,088$1,037$4,373$10,590$28,936
Long-term debt(d)(e)$-$2,115$455$804$2,644$568$3,431$3,265$13,282
(a)The other segment has been restated to show the results of SGS International as a new reportable industry segment, packaging products and services.
(b)Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, Tomkins and certain Onex Real Estate investments.
(c)Represents the after-tax results of The Warranty Group, Spirit AeroSystems, Skilled Healthcare Group and Sitel Worldwide.
(d)The other segment includes Skilled Healthcare Group and Sitel Worldwide, which were discontinued operations at December 31, 2014.
(e)Long-term debt includes current portion, excludes finance leases and is net of financing charges.

Contact Information

  • Onex Corporation
    Emma Thompson
    Managing Director - Investor Relations
    416.362.7711
    www.onex.com