Onex Corporation
TSX : OCX

Onex Corporation

November 10, 2010 16:00 ET

Onex Reports Third-Quarter 2010 Results

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2010) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (together with affiliates, "Onex") (TSX:OCX) today announced its consolidated financial results for the third quarter and nine months ended September 30, 2010 and an update on matters during and following the quarter.

Highlights

  • Onex and Canada Pension Plan Investment Board acquired Tomkins in a transaction valued at approximately US$5 billion; Onex, Onex Partners III and Onex management invested US$1.1 billion in the equity of the business, of which Onex' initial share was US$345 million.

  • Onex Partners III entered into an agreement to acquire all of the outstanding common shares of ResCare currently not owned by Onex or its affiliates through a tender offer at a price of US$13.25 per share. Onex, Onex Partners III and Onex management's initial investment is expected to be approximately US$351 million, of which Onex' portion is to be US$63 million.

  • ONCAP II acquired Sport Supply Group for approximately US$200 million; Onex, ONCAP II and Onex management invested US$56 million of equity in the business, of which Onex' portion was US$29 million.

  • Husky paid a US$100 million distribution to shareholders, of which US$35 million was Onex' share.

  • Carestream Health paid a US$60 million distribution to shareholders, of which Onex' share was US$23 million.

  • During the third quarter, Onex repurchased 607,100 shares for $15 million; total purchases to date in 2010 are over 2.0 million shares for $52 million.

  • At October 31, Onex had approximately $600 million of cash and near-cash investments and no debt at the parent company.

Onex is an investor and asset manager generating value from (i) growth in the Company's $4.1 billion of proprietary capital; (ii) management fees based on the US$7.9 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.

Investing

"The credit markets continued to strengthen remarkably throughout the third quarter and outpace the equity markets. Having over $3 billion of committed capital and cash, and strong credit markets – Onex is in great shape to acquire new businesses," said Gerald W. Schwartz. "However, finding great businesses with strong management teams is never easy. So, the pace of our investing is difficult to predict."

In September, Onex and Canada Pension Plan Investment Board ("CPPIB") acquired Tomkins plc for approximately US$5 billion. Tomkins has many of the attributes Onex seeks in industrial investment opportunities – #1 market positions, proprietary brands, technology and distribution, cost savings opportunities, strong free cash flow characteristics and exposure to global growth. In addition, Tomkins' management team is significantly invested in the company and therefore is well aligned with Onex and its investors. The business was bought in what we think is early in the economic cycle and we look forward to working with CPPIB and the Tomkins' team to expand the company's international reach and to find further savings opportunities. 

"Overall, our existing businesses have performed well despite the difficult operating environment experienced over the last few years," said Mr. Schwartz. "The cash flow characteristics of many of our companies have enabled a number of them to pay down debt over the last year and we continue to monitor the credit markets and opportunistically refinance credit facilities and extend maturities."

During the quarter, Husky International and Carestream Health paid distributions totaling US$160 million, of which Onex' share was US$58 million. As well, further distributions are expected from both The Warranty Group and Carestream Health before year-end. This is a testament to the quality of Onex' industry-leading companies and their conservative balance sheets. 

Onex continues to be in excellent financial condition, with approximately $600 million in cash and near-cash items at the end of October, no debt at the parent company and approximately US$2.7 billion of third-party uncalled capital for acquisitions through the Onex Partners and ONCAP Funds. 

Over 26 years, 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 focusing on enhancing the productivity and profitability of its businesses, and being careful to not burden them with excessive financial leverage. By transforming undervalued businesses into industry leaders, Onex has produced impressive returns over its 26-year history. As of September 30, 2010, Onex has generated a 26-year gross IRR of 29% and an average multiple of 3.4 times invested capital from its private equity investing.

Onex continues to believe that its success in building companies and its record of capital preservation and superior returns are direct results of the strong alignment of interests between Onex shareholders, the limited partners and the management team. At September 30, 2010, Onex' management team had almost $1.2 billion invested in Onex shares and in its operating companies.

Asset Management

Onex' asset management business continues to add value through the significant and predictable management fees it earns on US$7.9 billion of third-party capital and through the meaningful carried interest opportunity on that capital. The current annualized rate of management fees received is approximately US$100 million, which more than offsets Onex' operating costs. 

Onex will continue to evaluate opportunities to grow its asset management platforms – private equity, credit investing and real estate. In October, Onex Credit Partners filed a prospectus for an initial public offering of units for its second Canadian closed-end retail fund to be traded on the TSX. The offering is scheduled to close on November 19, 2010.

Consolidated Third-Quarter Results

Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, the impact of foreign currency translation and varying business cycles at its operating companies.

On a consolidated basis for the third quarter, revenues decreased 2% to $6.0 billion and operating earnings were down 5% to $489 million compared to the same period of last year. Onex reported a net loss of $44 million compared to a loss of $180 million in the third quarter of 2009. The 2009 net loss included a loss for Hawker Beechcraft due primarily to significant impairment charges related to goodwill and intangible and other assets, which was somewhat offset by gains from the sale of EMSC shares in August 2009.

On a consolidated basis for the nine months ended September 30, 2010, revenues were down 5% to $17.8 billion and operating earnings were flat at $1.4 billion compared to the same period last year. 

Net loss for the period was $48 million compared to net earnings of $72 million for the nine months ended September 30, 2009. The 2009 net earnings included the gains from the sale of EMSC shares and Onex' remaining ownership in Cineplex Entertainment in April 2009 and a non-cash $100 million income tax recovery in the first quarter of last year. Onex reported cash generated from operations for the nine months of $452 million compared to $778 million for the same period last year.

The Company paid a third-quarter dividend of $0.0275 per Subordinate Voting Share on October 29, 2010 to shareholders of record on October 8, 2010.

Operating earnings as referred to in this press release are a non-GAAP measure. See Management's Discussion and Analysis for the definition and reconciliation to the consolidated statements of earnings.

Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the third quarter ended September 30, 2010 and 2009. 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" page, which details Onex' $4.1 billion of proprietary capital and provides private company performance information.

Webcast

Onex management will host a conference call to review the Company's third-quarter 2010 results at 4:30 p.m. ET today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.

About Onex

Onex is one of North America's oldest and most successful investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the company manages approximately US$13 billion, of which US$9 billion is third-party capital. As well, Onex invests its own capital directly and as a substantial limited partner in its Funds.

Onex' businesses generate annual revenues of $37 billion, have assets of $42 billion and employ more than 240,000 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
As at September 30, 2010
  Proprietary Capital
  (US$ millions) (CDN$ millions)
Private Equity        
Onex Partners        
  Private Companies $ 1,9381 $ 1,9941
  Public Companies   4682   4822
  Unrealized Carried Interest on Public Companies   47   48
ONCAP   2053   2113
Direct Investments        
  Private Companies   2514   3404
  Public Companies   1502   1542
    3,059   3,229
Alternative Assets        
Onex Real Estate Partners   945   975
Onex Credit Partners   946   976
    188   194
Other Investments   78   80
Cash and Near-Cash   5827   5997
Onex Corporation Debt   Nil   Nil
  $ 3,907 $ 4,102
1 Based on the US$ fair value of the investments in Onex Partners' financial statements and US$/CDN$ exchange rate of 1.0290.
2 Based on the September 30, 2010 market values and US$/CDN$ exchange rate of 1.0290.
3 Based on the CDN$ fair value of the investments in ONCAP's financial statements and US$/CDN$ exchange rate of 1.0290.
4 Historical US$ and historical CDN$ cost amounts.
5 Based on carrying value of Onex Real Estate Partners' investments at September 30, 2010.
6 Based on the September 30, 2010 market values and US$/CDN$ exchange rate of 1.0290. Excludes CDN$157 million investment in Onex Credit Partners' unleveraged senior secured loan strategy fund, which is included with cash and near-cash items.
7 Includes approximately CDN$157 million invested in Onex Credit Partners' unleveraged senior secured loan strategy fund.
 
 
Significant Public Companies
 
 
 
      Market Value of Onex' Investment2
 Shares/Units Subject to Carried Interest (millions) Shares/Units Held by Onex(millions) Closing Price per Share1 (US$ millions) (CDN$ millions)
Onex Partners          
  Emergency Medical Services 7.0 4.8 US$ 53.25 $ 2563 $ 2633
  ResCare4 6.2 2.0 US$ 13.27 263 273
  Skilled Healthcare 10.7 3.5 US$ 3.93 143 143
  Spirit AeroSystems 17.2 8.6 US$ 19.93 1723 1783
        468 482
Direct Investments          
  Celestica - 17.8 US$ 8.43 150 154
        $ 618 $ 636
1 Closing price on September 30, 2010.
2 Based on closing price on September 30, 2010 and US$/CDN$ exchange rate of 1.0290.
3 Excludes Onex' potential participation in the carried interest.
4 Shares of ResCare are on an as-converted basis.

Significant Private Companies

            Cost of Onex' Investment (Net of Returns of Capital)
  Onex Ownership1 LTM EBITDA2 (US$ millions) Net Debt (US$ millions) Cumulative Distributions (US$ millions) Onex Economic Ownership (US$ millions) (CDN$ millions)
Onex Partners              
  Center for Diagnostic Imaging 81% $ 38 $ 47 $ - 19% $ 17 $ 21
  The Warranty Group 93% 1073 n/a 119 29% 154 175
  TMS International 91% 115 375 - 36% 93 109
  Hawker Beechcraft 49% 794 1,891 - 19% 212 244
  Carestream Health 97% 470 1,570 204 38% 173 191
  Allison Transmission 49% 619 3,434 - 15% 237 250
  Husky International 98% 197 240 100 36% 189 191
  RSI Home Products 50% n/a n/a - 20% 126 133
  Tropicana Las Vegas 74% n/a5 n/a6 - 16% 54 59
  Tomkins 49% n/a 2,945 - 16% 345 354
             1,600 1,727
Direct Investments              
  Sitel Worldwide - $ 114 $ 594 $ - 66% 251 340
            $1,851 $2,067
1 Includes the interest of Onex Partners' third-party limited partners and Onex management's interest via Onex Partners.
2 Includes adjustments that are consistent with private equity industry practice. 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.
3 Amount presented for The Warranty Group is adjusted net earnings rather than EBITDA. Net earnings on GAAP basis, including the impacts of purchase accounting, were $105.
4 EBITDA excludes gains on debt repurchases, loss recognized on derivative instruments no longer expected to be effective hedges, severance costs, non-cash stock-based compensation and retention expense, non-cash asset impairment charges, and consulting services and internal costs related to cost-reduction initiatives.
5 A comprehensive redevelopment underway at the Tropicana Las Vegas is causing considerable disruption to its operations, resulting in negative EBITDA that is not reflective of a fully operational hotel and casino.
6  At September 30, 2010, Tropicana Las Vegas had no debt outstanding.
 
 
Onex Corporation
 CONSOLIDATED BALANCE SHEETS
 
    (Unaudited)    
  As at September 30 As at December 31
(in millions of dollars)   2010   2009
Assets        
Current assets        
Cash and cash equivalents $ 2,079 $ 3,206
Marketable securities   757   636
Accounts receivable   3,192   3,062
Inventories   3,431   3,085
Other current assets   1,381   1,384
    10,840   11,373
Property, plant and equipment   4,211   3,623
Investments   4,121   3,255
Other long-term assets   2,605   2,696
Intangible assets   2,046   2,086
Goodwill   2,461   2,312
  $ 26,284 $ 25,345
Liabilities and Shareholders' Equity        
Current liabilities        
Accounts payable and accrued liabilities $ 3,865 $ 3,819
Other current liabilities   979   992
Current portion of long-term debt, without recourse to Onex   711   425
Current portion of obligations under capital leases, without recourse to Onex   18   21
Current portion of warranty reserves and unearned premiums   1,333   1,410
    6,906   6,667
Long-term debt of operating companies, without recourse to Onex   5,583   5,505
Long-term portion of obligations under capital leases of operating companies, without recourse to Onex   47   41
Long-term portion of warranty reserves and unearned premiums   1,874   2,034
Other liabilities   1,890   1,832
Future income taxes   1,116   1,237
    17,416   17,316
Non-controlling interests   7,328   6,370
Shareholders' equity   1,540   1,659
  $ 26,284 $ 25,345
         
         
Onex Corporation  
CONSOLIDATED STATEMENTS OF EARNINGS  
         
  Three months ended September 30   Nine months ended September 30  
(Unaudited)                        
(in millions of dollars, except per share data)   2010     2009     2010     2009  
Revenues $ 5,981   $ 6,078   $ 17,822   $ 18,678  
Cost of sales   (4,715 )   (4,738 )   (14,090 )   (14,645 )
Selling, general and administrative expenses   (659 )   (683 )   (1,927 )   (2,146 )
Earnings Before the Undernoted Items   607     657     1,805     1,887  
Amortization of property, plant and equipment   (131 )   (153 )   (391 )   (483 )
Amortization of intangible assets and deferred charges   (79 )   (85 )   (245 )   (281 )
Interest expense of operating companies   (99 )   (114 )   (324 )   (398 )
Interest income   13     10     25     44  
Loss from equity-accounted investments   (58 )   (383 )   (102 )   (429 )
Foreign exchange loss   (23 )   (43 )   (32 )   (73 )
Stock-based compensation expense   (56 )   (95 )   (128 )   (152 )
Other income   5     22     29     90  
Gains on dispositions of operating investments, net       276         460  
Acquisition, restructuring and other expenses   (80 )   (74 )   (157 )   (170 )
Writedown of goodwill, intangible assets and long-lived assets       (1 )   (2 )   (115 )
Earnings before income taxes and non-controlling interests   99     17     478     380  
Provision for income taxes   (57 )   (112 )   (256 )   (103 )
Non-controlling interests   (86 )   (85 )   (270 )   (205 )
Net Earnings (Loss) for the Period $ (44 ) $ (180 ) $ (48 ) $ 72  
Net Earnings (Loss) per Subordinate Voting Share                        
Basic and Diluted:                        
  Net earnings (loss) $ (0.37 ) $ (1.48 ) $ (0.40 ) $ 0.59  
         
         
Onex Corporation  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
         
  Three months ended September 30   Nine months ended September 30  
(Unaudited)                        
(in millions of dollars)   2010     2009     2010     2009  
Operating Activities                        
Net earnings (loss) for the period $ (44 ) $ (180 ) $ (48 ) $ 72  
Items not affecting cash:                        
  Amortization of property, plant and equipment   131     153     391     483  
  Amortization of intangible assets and deferred charges   79     85     245     281  
  Amortization of deferred warranty costs   20     19     61     60  
  Loss from equity-accounted investments   58     383     102     429  
  Foreign exchange loss   28     42     19     64  
  Stock-based compensation expense   56     95     122     152  
  Gains on dispositions of operating investments, net       (276 )       (460 )
  Writedown of goodwill, intangible assets and long-lived assets       1     2     115  
  Non-controlling interests   86     85     270     205  
  Future income taxes   (15 )   (2 )   12     (143 )
  Other   40     38     41     (27 )
    439     443     1,217     1,231  
Changes in non-cash working capital items:                        
  Accounts receivable   (37 )   (58 )   (137 )   270  
  Inventories   (171 )   (190 )   (434 )   (256 )
  Other current assets   (11 )   22     (62 )   (43 )
  Accounts payable, accrued liabilities and other current liabilities   36     288     25     (267 )
Increase (decrease) in cash due to changes in working capital items   (183 )   62     (608 )   (296 )
Decrease in warranty reserves and unearned premiums and other liabilities   (19 )   (31 )   (157 )   (157 )
    237     474     452     778  
Financing Activities                        
Issuance of long-term debt   294     492     1,854     1,198  
Repayment of long-term debt   (126 )   (392 )   (1,944 )   (1,363 )
Cash dividends paid   (4 )   (3 )   (10 )   (10 )
Repurchase of share capital   (15 )   (5 )   (52 )   (6 )
Issuance of share capital provided by L.P. investors and operating companies   764     79     911     301  
Distributions by operating companies and to L.P. investors   (104 )   (285 )   (132 )   (289 )
Decrease due to other financing activities   (55 )   (14 )   (83 )   (3 )
    754     (128 )   544     (172 )
Investing Activities                        
Acquisition of operating companies, net of cash in acquired companies of $38 (2009 – $105)   (156 )   3     (261 )   1  
Purchase of property, plant and equipment   (229 )   (125 )   (639 )   (420 )
Proceeds from sales of operating investments       385         560  
Investment in Tomkins Limited   (1,090 )       (1,090 )    
Increase (decrease) due to other investing activities   12     23     (79 )   (47 )
    (1,463 )   286     (2,069 )   94  
Increase (Decrease) in Cash for the Period   (472 )   632     (1,073 )   700  
Decrease in cash due to changes in foreign exchange rates   (75 )   (262 )   (54 )   (384 )
Cash and cash equivalents, beginning of the period   2,626     2,867     3,206     2,921  
                         
Cash and Cash Equivalents, End of the Period $ 2,079   $ 3,237   $ 2,079   $ 3,237  

Onex Corporation

INFORMATION BY INDUSTRY SEGMENT

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010

                                                 
(Unaudited)                        
(in millions of dollars)                                
Three months ended September 30, 2010   Electronics Manufacturing Services     Aerostructures     Healthcare     Financial Services     Customer Support Services     Metal Services     Other(a)     Consolidated Total  
Revenues $ 1,604   $ 1,053   $ 1,625   $ 306   $ 333   $ 497   $ 563   $ 5,981  
Cost of sales   (1,472 )   (885 )   (1,208 )   (153 )   (208 )   (451 )   (338 )   (4,715 )
Selling, general and administrative expenses   (57 )   (49 )   (180 )   (108 )   (90 )   (14 )   (161 )   (659 )
Earnings before the undernoted items   75     119     237     45     35     32     64     607  
Amortization of property, plant and equipment   (18 )   (30 )   (39 )   (3 )   (8 )   (12 )   (21 )   (131 )
Amortization of intangible assets and deferred charges   (4 )   1     (52 )   (4 )   (4 )   (3 )   (13 )   (79 )
Interest expense of operating companies       (13 )   (35 )   (1 )   (23 )   (10 )   (17 )   (99 )
Interest income           1         1         11     13  
Earnings (loss) from equity-accounted investments       (1 )   3                 (60 )   (58 )
Foreign exchange gains (loss)       1     4         3         (31 )   (23 )
Stock-based compensation expense   (9 )   (2 )   (3 )               (42 )   (56 )
Other income       2         3                 5  
Acquisition, restructuring and other expenses   (6 )       (59 )       (6 )       (9 )   (80 )
Earnings (loss) before income taxes and non-controlling interests   38     77     57     40     (2 )   7     (118 )   99  
Recovery of (provision for) income taxes   (1 )   (28 )   (15 )   (14 )   13     (5 )   (7 )   (57 )
Non-controlling interests   (34 )   (46 )   (31 )   (18 )       (1 )   44     (86 )
Net earnings (loss) $ 3   $ 3   $ 11   $ 8   $ 11   $ 1   $ (81 ) $ (44 )
(a) Includes Allison Transmission, Hawker Beechcraft, Husky, RSI, Tropicana Las Vegas, ONCAP II, Onex Real Estate and the parent company.

Onex Corporation

INFORMATION BY INDUSTRY SEGMENT

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009

(Unaudited)                                                
(in millions of dollars)                                                
Three months ended September 30, 2009   Electronics Manufacturing Services     Aerostructures     Healthcare     Financial Services     Customer Support Services     Metal Services     Other(a)     Consolidated Total  
Revenues $ 1,700   $ 1,157   $ 1,605   $ 322   $ 417   $ 434   $ 443   $ 6,078  
Cost of sales   (1,560 )   (933 )   (1,166 )   (149 )   (263 )   (396 )   (271 )   (4,738 )
Selling, general and administrative expenses   (54 )   (43 )   (200 )   (118 )   (118 )   (15 )   (135 )   (683 )
Earnings before the undernoted items   86     181     239     55     36     23     37     657  
Amortization of property, plant and equipment   (20 )   (32 )   (46 )   (3 )   (14 )   (16 )   (22 )   (153 )
Amortization of intangible assets and deferred charges   (5 )   (2 )   (52 )   (5 )   (6 )   (3 )   (12 )   (85 )
Interest expense of operating companies   (10 )   (11 )   (53 )   (1 )   (19 )   (12 )   (8 )   (114 )
Interest income (expense)   (1 )   1     2                 8     10  
Earnings (loss) from equity-accounted investments           3                 (386 )   (383 )
Foreign exchange gains (loss)       (2 )   2     1     (6 )   (1 )   (37 )   (43 )
Stock-based compensation expense   (7 )   (4 )   (1 )               (83 )   (95 )
Other income (expense)   (1 )   2     (1 )   (1 )           23     22  
Gains on dispositions of operating investments, net                           276     276  
Acquisition, restructuring and other expenses   (46 )       (11 )       (6 )       (11 )   (74 )
Writedown of goodwill, intangible assets and long-lived assets                           (1 )   (1 )
Earnings (loss) before income taxes and non-controlling interests   (4 )   133     82     46     (15 )   (9 )   (216 )   17  
Recovery of (provision for) income taxes   2     (43 )   (35 )   (17 )   (3 )   5     (21 )   (112 )
Non-controlling interests   2     (84 )   (38 )   (21 )       3     53     (85 )
Net earnings (loss) $   $ 6   $ 9   $ 8   $ (18 ) $ (1 ) $ (184 ) $ (180 )
(a) Includes Allison Transmission, Hawker Beechcraft, Husky, RSI, Tropicana Las Vegas, ONCAP II, Onex Real Estate and the parent company.

Onex Corporation

INFORMATION BY INDUSTRY SEGMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010

(Unaudited)                                                
(in millions of dollars)                                                
Nine months ended September 30, 2010   Electronics Manufacturing Services     Aerostructures     Healthcare     Financial Services     Customer Support Services     Metal Services     Other(a)     Consolidated Total  
Revenues $ 4,820   $ 3,212   $ 4,685   $ 925   $ 1,032   $ 1,632   $ 1,516   $ 17,822  
Cost of sales   (4,421 )   (2,686 )   (3,464 )   (448 )   (661 )   (1,496 )   (914 )   (14,090 )
Selling, general and administrative expenses   (166 )   (135 )   (522 )   (337 )   (284 )   (42 )   (441 )   (1,927 )
Earnings before the undernoted items   233     391     699     140     87     94     161     1,805  
Amortization of property, plant and equipment   (57 )   (85 )   (118 )   (9 )   (27 )   (38 )   (57 )   (391 )
Amortization of intangible assets and deferred charges   (12 )   (1 )   (159 )   (13 )   (14 )   (9 )   (37 )   (245 )
Interest expense of operating companies   (14 )   (42 )   (131 )   (2 )   (65 )   (32 )   (38 )   (324 )
Interest income           3         1         21     25  
Earnings (loss) from equity-accounted investments       (1 )   6                 (107 )   (102 )
Foreign exchange loss   (1 )   (4 )   (4 )   (1 )   (3 )       (19 )   (32 )
Stock-based compensation expense   (29 )   (24 )   (7 )               (68 )   (128 )
Other income (expense)       4         19     (3 )       9     29  
Acquisition, restructuring and other expenses   (39 )   (2 )   (76 )   (1 )   (15 )       (24 )   (157 )
Writedown of goodwill, intangible assets and long-lived assets                           (2 )   (2 )
Earnings (loss) before income taxes and non-controlling interests   81     236     213     133     (39 )   15     (161 )   478  
Recovery of (provision for) income taxes   (23 )   (74 )   (73 )   (50 )   4     (10 )   (30 )   (256 )
Non-controlling interests   (53 )   (151 )   (112 )   (59 )       (3 )   108     (270 )
Net earnings (loss) $ 5   $ 11   $ 28   $ 24   $ (35 ) $ 2   $ (83 ) $ (48 )
Total assets(b) $ 3,003   $ 4,754   $ 5,506   $ 5,136   $ 730   $ 864   $ 6,291   $ 26,284  
Long-term debt(c) $   $ 1,015   $ 2,702   $ 197   $ 683   $ 388   $ 1,309   $ 6,294  
(a) Includes Allison Transmission, Hawker Beechcraft, Husky, RSI, Tropicana Las Vegas, ONCAP II, Onex Real Estate and the parent company.
(b) Total assets for the other segment at September 30, 2010 includes the assets of Tomkins, acquired in September 2010.
(c) Long-term debt includes current portion, excludes capital leases and is net of deferred charges.

Onex Corporation

INFORMATION BY INDUSTRY SEGMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

(Unaudited)                                                
(in millions of dollars)                                                
Nine months ended September 30, 2009   Electronics Manufacturing Services     Aerostructures     Healthcare     Financial Services     Customer Support Services     Metal Services     Other(a)     Consolidated Total  
Revenues $ 5,151   $ 3,502   $ 4,966   $ 1,029   $ 1,365   $ 1,093   $ 1,572   $ 18,678  
Cost of sales   (4,705 )   (2,975 )   (3,616 )   (498 )   (870 )   (986 )   (995 )   (14,645 )
Selling, general and administrative expenses   (195 )   (153 )   (595 )   (384 )   (374 )   (39 )   (406 )   (2,146 )
Earnings before the undernoted items   251     374     755     147     121     68     171     1,887  
Amortization of property, plant and equipment   (66 )   (99 )   (148 )   (10 )   (44 )   (52 )   (64 )   (483 )
Amortization of intangible assets and deferred charges   (18 )   (4 )   (174 )   (17 )   (18 )   (11 )   (39 )   (281 )
Interest expense of operating companies   (43 )   (34 )   (183 )   (3 )   (63 )   (36 )   (36 )   (398 )
Interest income       7     5         1         31     44  
Earnings (loss) from equity-accounted investments           14                 (443 )   (429 )
Foreign exchange gains (loss)   (2 )   3     (2 )   1     (12 )       (61 )   (73 )
Stock-based compensation expense   (25 )   (11 )   (5 )               (111 )   (152 )
Other income (expense)   (1 )   4     (10 )   (2 )   1         98     90  
Gains on dispositions of operating investments, net                           460     460  
Acquisition, restructuring and other expenses   (78 )   (1 )   (35 )       (15 )       (41 )   (170 )
Writedown of goodwill, intangible assets and long-lived assets                   (52 )   (62 )   (1 )   (115 )
Earnings (loss) before income taxes and non-controlling interests   18     239     217     116     (81 )   (93 )   (36 )   380  
Recovery of (provision for) income taxes   9     (79 )   (77 )   (33 )   (9 )   10     76     (103 )
Non-controlling interests   (23 )   (149 )   (109 )   (59 )       55     80     (205 )
Net earnings (loss) $ 4   $ 11   $ 31   $ 24   $ (90 ) $ (28 ) $ 120   $ 72  
Total assets at December 31, 2009 $ 3,265   $ 4,685   $ 5,616   $ 5,206   $ 745   $ 891   $ 4,937   $ 25,345  
Long-term debt at December 31, 2009(b) $ 234   $ 902   $ 2,792   $ 203   $ 660   $ 401   $ 738   $ 5,930  
(a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker Beechcraft, Husky, RSI, Tropicana Las Vegas, ONCAP II, Onex Real Estate and the parent company.
(b) Long-term debt includes current portion, excludes capital leases and is net of deferred charges.

Contact Information

  • Onex Corporation
    Donald Lewtas
    Chief Financial Officer
    416.362.7711
    or
    Onex Corporation
    Emma Thompson
    Vice President, Investor Relations
    416.362.7711