TORONTO, ONTARIO--(Marketwire - Nov. 9, 2011) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the third quarter and nine months ended September 30, 2011 and an update on matters following quarter-end.
Highlights
-- Onex and its affiliates completed in early October
the $871 million investment in JELD-WEN, one of the world's largest
residential door and window manufacturers, and acquired a 57% equity
ownership stake in the company.
-- ONCAP completed fundraising for ONCAP III with capital commitments of
C$800 million, including third-party capital of C$520 million.
-- Including realizations and distributions, the value of Onex' interest in
Onex Partners' and ONCAP's private investments grew by 13% and 11%,
respectively, in the first nine months of 2011.
-- Onex' proprietary capital per share grew by 4% and 23% over the last
nine and 12 months, respectively.
-- At September 30, Onex' unrealized carried interest was $89 million based
on the public companies held at market value and on the quarter-end fair
values of the private companies in the Onex Partners Funds.
-- For the ten months ending October 31, Onex had repurchased 2,752,408
shares for approximately C$92 million in 2011.
-- At October 31, Onex had no debt at the parent company and approximately
$1.3 billion of cash and near-cash investments.
Onex is an investor and asset manager generating value from (i) growth in the Company's $4.4 billion of proprietary capital; (ii) management fees based on the $7.8 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.
Investing
"The last few months have been a turbulent period for both the equity and credit markets. Fortunately, we completed a number of transactions earlier this year when the markets were stronger, which resulted in Onex and our partners realizing approximately $3.3 billion," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "We now find ourselves in a desirable position with considerable cash to invest. While corporate mergers and acquisitions activity has been tepid and credit markets have softened, we remain committed to finding great businesses to own and build for our investors."
In early October, the Onex Partners III Group completed its investment in JELD-WEN and acquired a 57% ownership stake in the company. The total investment of $871 million includes $689 million from Onex Partners III and $182 million from Onex and certain other Limited Partners. Onex' total investment of $298 million consists of $124 million through Onex Partners III and $174 million as a co-investor in JELD-WEN. Onex intends to offer a portion of the co-investment to its third-party limited partners. The total investment in JELD-WEN consists of $700 million of convertible preferred stock and a $171 million convertible note. Last month, JELD-WEN redeemed $42 million of the convertible note and interest accrued to the redemption date, of which Onex' share was $14 million. With the completion of the JELD-WEN investment, Onex Partners III is approximately 40% invested.
In August, Philip Orsino, Onex' building products industrial partner, was appointed as JELD-WEN's President. Mr. Orsino was formerly the CEO of Masonite International until 2005 and has spent more than 25 years in the global door and window manufacturing business. Mr. Orsino is now responsible for JELD-WEN's day-to-day operations and is working with the management team to improve the company's overall operational and financial performance.
Although it is difficult to predict investment pace, Onex is well-positioned to respond to attractive investment opportunities. The Company continues to be in excellent financial condition, with approximately $1.3 billion in cash and near-cash investments at the end of October, no debt at the parent company and approximately $2.9 billion of uncalled committed capital for acquisitions through the Onex Partners and ONCAP Funds.
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 which reflect a meaningful discount to Onex' view of value. Onex believes that this provides good value to its remaining shareholders. For the ten months ending October 31, Onex had repurchased 2,752,408 million shares for approximately C$92 million at an average price of C$33.40 per share.
Over 27 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 enhancing the productivity and profitability of its businesses. By transforming under-valued businesses into industry leaders, Onex has produced impressive returns over its history. As of September 30, 2011, Onex has generated a 27-year gross IRR of 29% and an average multiple of 3.3 times invested capital from realized, substantially realized and publicly traded investments in its private equity investing.
Onex continues to believe that its success is a result of the strong alignment of interests between Onex shareholders, our limited partners and the management team. At September 30, 2011, Onex' management team had approximately $1.3 billion invested in Onex shares and in its operating companies.
Asset Management
Onex earns recurring asset management fees and/or carried interest on $7.8 billion of third-party capital. The current annualized rate of total management fees received is approximately $100 million, which typically offsets Onex' operating costs.
At September 30, 2011, there was approximately $8 million of unrealized carried interest allocable to Onex based on the public companies held at market value in the Onex Partners Funds. In addition, Onex has the potential to earn a further $81 million of carried interest on its private businesses in the Onex Partners Funds based on the fair values determined at September 30. Ultimately, the carried interest received will be determined upon the final returns of each Fund. Year-to-date, Onex has received $65 million of carried interest as a result of realizations during the year.
In September, Onex announced the successful closing of ONCAP III, its third mid-market private equity fund, with capital commitments of C$800 million, prior to those of Onex and ONCAP management. Third-party capital commitments to the fund total C$520 million, representing an approximate 80% increase over the prior ONCAP fund, and include commitments from both long-standing partners and new investors. Onex continues to be ONCAP's largest investor.
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, changes in the value of our publicly traded and privately held operating companies and varying business cycles at its operating companies.
Effective January 1, 2011, Onex' financial statements are being prepared in accordance with International Financial Reporting Standards and are reported in U.S. dollars. Please see the Q3 Management's Discussion and Analysis and Notes to Unaudited Interim Consolidated Financial Statements for a review of the significant accounting policies under IFRS that impact Onex' financial statements.
On a consolidated basis for the third quarter, revenues increased 25% to $6.0 billion compared to the same period of the prior year. Onex reported consolidated net earnings of $184 million compared to $35 million in the third quarter of 2010.
On a consolidated basis for the nine months ended September 30, 2011, revenues increased 25% to $17.9 billion. Net earnings for the period were $1.7 billion compared to $201 million for the nine months ended September 30, 2010. Net earnings for the first nine months of 2011 included $1.7 billion from discontinued operations relating to the sales of Husky International and EMSC. In the nine months ended September 30, 2011, cash flow from operations was $481 million compared to $664 million for the same period last year.
The Company paid a third-quarter dividend of C$0.0275 per Subordinate Voting Share on October 31, 2011 to shareholders of record on October 7, 2011.
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, 2011 and 2010. 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' $4.4 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 2011 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 $13 billion, of which $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 have assets of $42 billion, generate annual revenues of $37 billion and employ approximately 230,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
How We Are Invested
As at September 30, 2011
Proprietary Capital
(US$ millions)
----------------------------------------------------------------------------
Private Equity
Onex Partners
Private Companies $ 1,850(1)
Public Companies 175(2)
Unrealized Carried Interest on Onex Partners
Investments 89(3)
ONCAP 294(4)
Direct Investments
Private Companies 202(5)
Public Companies 129(2)
----------------------------------------------------------------------------
2,739
----------------------------------------------------------------------------
Alternative Assets
Onex Real Estate Partners 178(6)
Onex Credit Partners 96(7)
----------------------------------------------------------------------------
274
----------------------------------------------------------------------------
Other Investments 88
Cash and Near-Cash 1,301(8)
Onex Corporation Debt -
----------------------------------------------------------------------------
$ 4,402
----------------------------------------------------------------------------
(1) Based on the US$ fair value of the investments in Onex Partners'
financial statements. Includes approximately $298 million invested by
Onex to acquire JELD-WEN in early October 2011.
(2) Based on the September 30, 2011 market values.
(3) Represents Onex' share of the unrealized carried interest on public and
private companies in the Onex Partners Funds.
(4) Based on the C$ fair value of the investments in ONCAP's financial
statements and US$/C$ exchange rate of 1.0482.
(5) Based on value of last third-party investment.
(6) Based on carrying value of Onex Real Estate Partners' investments at
September 30, 2011.
(7) Based on the September 30, 2011 market values. Excludes approximately
$307 million investment in Onex Credit Partners' unleveraged senior
secured loan strategy fund, which is included with cash and near-cash
items.
(8) Includes approximately $307 million invested in Onex Credit Partners'
unleveraged senior secured loan strategy fund and excludes
approximately $298 million invested by Onex to acquire JELD-WEN in
early October 2011, which is included with Private Companies.
Significant Public Companies
Shares/Units
Subject to Market Value
Carried Shares/Units Closing of
As at September 30, Interest Held by Onex Price per Onex'
2011 (millions) (millions) Share(1) Investment
----------------------------------------------------------------------------
Onex Partners
Skilled
Healthcare
Group 10.7 3.5 $ 3.61 $ 12(3)
Spirit
AeroSystems 11.9 6.0(2) $ 15.95 95(3)
TMS
International 13.2 9.3 $ 7.28 68(3)
----------------------------------------------------------------------------
175
----------------------------------------------------------------------------
Direct Investments -
Celestica - 17.8(2) $ 7.25 129
----------------------------------------------------------------------------
$ 304
----------------------------------------------------------------------------
(1) Closing price in whole dollars on September 30, 2011.
(2) Excludes shares held in connection with the Management Investment Plan.
(3) Excludes Onex' potential participation in the carried interest.
Significant Private Companies
Cost of
Onex and Onex'
its Investment
As at Limited Onex' (Net of
September Partners LTM Cumulative Economic Returns of
30, 2011 Ownership EBITDA(1) Net Debt Distributions Ownership Capital)
----------------------------------------------------------------------------
Onex
Partners
Center for
Diagnostic
Imaging 81% $ 38 $ 109 $ 67 19% $ 8
The
Warranty
Group 92% 112(2) n/a 161 29% 154
Hawker
Beechcraft 49% 106 1,998 7(5) 19% 212(6)
Carestream
Health 95% 385 1,698 434 37% 90
Allison
Transmissi
on 49% 692 3,099 - 15% 237
RSI Home
Products 50% n/a n/a n/a 20% 78
Tropicana
Las Vegas 76% n/a(3) 44 - 17% 60
Tomkins 56% 763(4) 2,511 - 14% 315
ResCare 98% 125 363 - 20% 41
----------------------------------------------------------------------------
1,195
----------------------------------------------------------------------------
Direct
Investments
- Sitel
Worldwide 68% $ 129 $ 659 $ - 68% 251
----------------------------------------------------------------------------
$ 1,446
----------------------------------------------------------------------------
(1) 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.
(2) Amount presented for The Warranty Group is adjusted net earnings
rather than EBITDA and includes a one-time $6 million valuation
allowance release in the first quarter of 2011. Net earnings on
a GAAP basis, including the impacts of purchase accounting,
were $107 million and include a one-time $6 million valuation
allowance release in the first quarter of 2011.
(3) A comprehensive redevelopment underway at Tropicana Las Vegas
caused a disruption to its operations, resulting in negative
LTM EBITDA that is not reflective of a fully operational hotel
and casino.
(4) LTM EBITDA excludes EBITDA from businesses divested as of the
end of the third quarter of 2011. Including EBITDA from these
divested businesses would result in LTM EBITDA of $811 million
as of September 30, 2011.
(5) Represents interest received on the portion of Senior Notes held
by Onex, Onex Partners II and Onex management.
(6) Onex' investment includes $31 million in face value of Senior
Notes.
Onex Corporation
CONSOLIDATED BALANCE SHEETS
(Unaudited) As at As at As at
(in millions of U.S. September 30, December 31, January 1,
dollars) 2011 2010 2010
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,179 $ 2,532 $ 3,018
Short-term investments 736 715 605
Accounts receivable 2,955 3,430 2,928
Inventories 4,100 4,004 3,204
Other current assets 1,954 1,495 1,101
----------------------------------------------------------------------------
11,924 12,176 10,856
Property, plant and
equipment 3,823 4,056 3,366
Long-term investments 5,330 4,864 3,448
Other non-current assets 1,712 1,872 1,915
Intangible assets 2,164 2,505 2,241
Goodwill 2,179 2,634 2,198
----------------------------------------------------------------------------
$ 27,132 $ 28,107 $ 24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and
accrued liabilities $ 3,490 $ 3,964 $ 3,268
Current portion of
provisions 152 257 255
Other current liabilities 669 1,211 974
Current portion of long-
term debt of operating
companies, without 404
recourse to Onex 136 243
Current portion of
obligations under
finance leases, without
recourse to Onex 18 14 20
Current portion of
warranty reserves and
unearned premiums 1,350 1,314 1,342
----------------------------------------------------------------------------
5,815 7,003 6,263
Non-current portion of
provisions 165 284 231
Long-term debt of
operating companies,
without recourse to Onex 6,280 6,346 5,284
Non-current portion of
obligations under
finance leases, without 39
recourse to Onex 48 43
Non-current portion of
warranty reserves and
unearned premiums 1,772 1,780 1,935
Other non-current
liabilities 1,851 1,921 1,670
Deferred income taxes 879 938 810
Limited Partners'
Interests 4,730 5,650 3,708
----------------------------------------------------------------------------
21,540 23,965 19,940
----------------------------------------------------------------------------
Equity
Share capital 365 373 381
Non-controlling interests 3,510 3,638 3,329
Retained earnings and
accumulated other
comprehensive earnings 1,717 131 374
----------------------------------------------------------------------------
5,592 4,142 4,084
----------------------------------------------------------------------------
$ 27,132 $ 28,107 $ 24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended Nine months ended
(Unaudited) September 30 September 30
(in millions of U.S.
dollars except per
share data) 2011 2010 2011 2010
----------------------------------------------------------------------------
Revenues $ 6,008 $ 4,788 $ 17,884 $ 14,332
Cost of sales (excluding
amortization of
property, plant and
equipment, intangible
assets and deferred
charges) (4,766) (3,730) (14,348) (11,224)
Operating expenses (710) (572) (2,080) (1,688)
Interest income 1 12 18 20
Amortization of
property, plant and
equipment (108) (100) (320) (299)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 425 398 1,154 1,141
Amortization of
intangible assets and
deferred charges (77) (65) (222) (208)
Interest expense of
operating companies (112) (80) (351) (251)
Unrealized increase
(decrease) in value of
investments in
associates at fair
value, net (26) 13 374 252
Foreign exchange gains
(loss) (18) 11 (9) (10)
Stock-based compensation
recovery (expense) 66 (57) (90) (128)
Other items (42) (92) (116) (110)
Impairment of goodwill,
intangible assets and
long-lived assets, net (126) - (126) -
Limited Partners'
Interests recovery
(charge) 184 (114) (431) (421)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings before income
taxes and discontinued
operations 274 14 183 265
Provision for income
taxes (84) (35) (157) (178)
----------------------------------------------------------------------------
Earnings (loss) from
continuing operations 190 (21) 26 87
Earnings (loss) from
discontinued operations (6) 56 1,715 114
----------------------------------------------------------------------------
Net Earnings for the
Period $ 184 $ 35 $ 1,741 $ 201
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (Loss) from
Continuing Operations
attributable to:
Equity holders of Onex
Corporation $ 152 $ (71) $ (169) $ (97)
Non-controlling
Interests 38 50 195 184
----------------------------------------------------------------------------
Earnings (Loss) from
Continuing Operations
for the Period $ 190 $ (21) $ 26 $ 87
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss)
attributable to:
Equity holders of Onex
Corporation $ 146 $ (40) $ 1,513 $ (47)
Non-controlling
Interests 38 75 228 248
----------------------------------------------------------------------------
Net Earnings for the
Period $ 184 $ 35 $ 1,741 $ 201
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss) per
Subordinate Voting
Share of Onex
Corporation
Basic and Diluted:
Continuing operations $ 1.29 $ (0.60) $ (1.43) $ (0.81)
Discontinued operations (0.04) 0.26 14.25 0.42
----------------------------------------------------------------------------
Net Earnings (Loss) for
the Period $ 1.25 $ (0.34) $ 12.82 $ (0.39)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) Nine months ended September 30
(in millions of U.S. dollars) 2011 2010
----------------------------------------------------------------------------
Operating Activities
Earnings for the period from
continuing operations $ 26 $ 87
Adjustments to earnings from
continuing operations:
Provision for income taxes 157 178
Interest income (18) (20)
Interest expense of operating
companies 351 251
----------------------------------------------------------------------------
Net earnings before interest
and provision for income
taxes 516 496
Cash taxes paid (116) (139)
Items not affecting cash and
cash equivalents:
Amortization of property,
plant and equipment 320 299
Amortization of intangible
assets and deferred charges 222 208
Amortization of deferred
warranty costs 39 57
Unrealized increase in value
of investments in associates
at fair value, net (374) (252)
Stock-based compensation
expense 22 123
Impairment of goodwill,
intangible assets and long-
lived assets, net 126 -
Limited Partners' Interests 431 421
Change in provisions 67 81
Other (14) (11)
----------------------------------------------------------------------------
1,239 1,283
Changes in non-cash working
capital items:
Accounts receivable (129) (149)
Inventories (243) (480)
Other current assets 7 (45)
Accounts payable, accrued
liabilities and other
current liabilities (501) (252)
----------------------------------------------------------------------------
Decrease in cash and cash
equivalents due to changes in
working capital items (866) (926)
Increase (decrease) in other
operating activities (14) 34
Increase (decrease) in
warranty reserves and
premiums 22 (71)
Cash flows from operating
activities of discontinued
operations 100 344
----------------------------------------------------------------------------
481 664
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 471 1,171
Repayment of long-term debt (242) (1,254)
Cash interest paid (295) (220)
Cash dividends paid (10) (9)
Repurchase of share capital of
Onex Corporation (57) (50)
Repurchase of share capital of
operating companies (52) (64)
Financing provided by Limited
Partners 788 849
Issuance of share capital by
operating companies 148 12
Proceeds from sales of
operating companies under
continuing control 268 -
Distributions paid to non-
controlling interests and
Limited Partners (2,155) (127)
Change in restricted cash for
distribution to Limited
Partners 272 -
Decrease due to other
financing activities (51) (13)
Cash flows used for investing
activities of discontinued
operations (42) (117)
----------------------------------------------------------------------------
(957) 178
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating
companies, net of cash and
cash equivalents in acquired
companies of $44 (2010 - $37) (298) (203)
Purchase of property, plant
and equipment (439) (460)
Investment in Tomkins Limited - (1,062)
Change in restricted cash for
acquisition of an operating
companies (860) -
Cash interest and dividends
received 11 7
Decrease due to other
investing activities (316) (38)
Cash flows from (used for)
investing activities of
discontinued operations 2,030 (114)
----------------------------------------------------------------------------
128 (1,870)
----------------------------------------------------------------------------
Decrease in Cash and Cash
Equivalents for the Period (348) (1,028)
Increase (decrease) in cash
and cash equivalents due to
changes in foreign exchange
rates (5) 6
Cash and cash equivalents,
beginning of the period -
continuing operations 2,053 2,582
Cash and cash equivalents,
beginning of the period -
discontinued operations 479 436
----------------------------------------------------------------------------
Cash and Cash Equivalents 2,179 1,996
Cash and cash equivalents held
by discontinued operations - 450
----------------------------------------------------------------------------
Cash and Cash Equivalents Held
by Continuing Operations $ 2,179 $ 1,546
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Three months
ended Electronics
September 30, Manufacturing Financial
2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,830 $ 1,130 $ 1,242 $ 303
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (1,684) (920) (857) (152)
Operating
expenses (61) (42) (221) (107)
Interest
income - - 1 -
Amortization
of property,
plant and
equipment (16) (26) (29) (1)
----------------------------------------------------------------------------
Earnings
(Loss) Before
the
Undernoted
Items 69 142 136 43
Amortization
of intangible
assets and
deferred
charges (4) (9) (42) (5)
Interest
expense of
operating
companies (2) (19) (50) (1)
Unrealized
decrease in
value of
investments
in associates
at fair
value, net - - - -
Foreign
exchange
gains (loss) 1 (1) (6) -
Stock-based
compensation
recovery
(expense) (8) (4) - -
Other items 1 (1) (18) 2
Impairment of
goodwill,
intangible
assets and
long-lived
assets, net 2 - (120) -
Limited
Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations 59 108 (100) 39
Provision for
income taxes (8) (32) (19) (15)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations 51 76 (119) 24
Loss from
discontinued
operations(b) - - - -
----------------------------------------------------------------------------
Net earnings
(loss) $ 51 $ 76 $ (119) $ 24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ 5 $ 12 $ (52) $ 22
----------------------------------------------------------------------------
Non-
controlling
interests $ 46 $ 64 $ (67) $ 2
----------------------------------------------------------------------------
Net earnings
(loss) $ 51 $ 76 $ (119) $ 24
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Three months
ended Customer
September 30, Care Metal Consolidated
2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 359 $ 707 $ 437 $ 6,008
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (231) (658) (264) (4,766)
Operating
expenses (97) (16) (166) (710)
Interest
income - - - 1
Amortization
of property,
plant and
equipment (8) (12) (16) (108)
----------------------------------------------------------------------------
Earnings
(Loss) Before
the
Undernoted
Items 23 21 (9) 425
Amortization
of intangible
assets and
deferred
charges (8) (3) (6) (77)
Interest
expense of
operating
companies (20) (8) (12) (112)
Unrealized
decrease in
value of
investments
in associates
at fair
value, net - - (26) (26)
Foreign
exchange
gains (loss) (3) 1 (10) (18)
Stock-based
compensation
recovery
(expense) - - 78 66
Other items (3) - (23) (42)
Impairment of
goodwill,
intangible
assets and
long-lived
assets, net - - (8) (126)
Limited
Partners'
Interests - - 184 184
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations (11) 11 168 274
Provision for
income taxes (9) (1) - (84)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations (20) 10 168 190
Loss from
discontinued
operations(b) - - (6) (6)
----------------------------------------------------------------------------
Net earnings
(loss) $ (20) $ 10 $ 162 $ 184
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ (13) $ 6 $ 166 $ 146
----------------------------------------------------------------------------
Non-
controlling
interests $ (7) $ 4 $ (4) $ 38
----------------------------------------------------------------------------
Net earnings
(loss) $ (20) $ 10 $ 162 $ 184
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las
Vegas, Tomkins, ONCAP II, ONCAP III, Onex Real Estate, Flushing Town
Center and the parent company.
(b) Discontinued operations includes Husky in the Other segment (sold in
June 2011).
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Three months
ended Electronics
September 30, Manufacturing Financial
2010 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,546 $ 1,014 $ 827 $ 295
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (1,418) (843) (530) (147)
Operating
expenses (56) (46) (152) (104)
Interest
income - - 1 -
Amortization
of property,
plant and
equipment (17) (26) (28) (2)
----------------------------------------------------------------------------
Earnings
Before the
Undernoted
Items 55 99 118 42
Amortization
of intangible
assets and
deferred
charges (3) (2) (40) (6)
Interest
expense of
operating
companies (1) (13) (30) (1)
Unrealized
increase
(decrease) in
value of
investments
in associates
at fair
value, net - - 24 -
Foreign
exchange
gains (loss) (5) 1 4 1
Stock-based
compensation
expense (8) (3) (1) -
Other items (15) 1 (59) 2
Limited
Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations 23 83 16 38
Recovery of
(provision
for) income
taxes (2) (30) 8 (13)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations 21 53 24 25
Earnings from
discontinued
operations(b) - - 36 -
----------------------------------------------------------------------------
Net earnings
(loss) $ 21 $ 53 $ 60 $ 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ 1 $ 12 $ 49 $ 23
----------------------------------------------------------------------------
Non-
controlling
interests $ 20 $ 41 $ 11 $ 2
----------------------------------------------------------------------------
Net earnings
(loss) $ 21 $ 53 $ 60 $ 25
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Three months
ended Customer
September 30, Care Metal Consolidated
2010 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 320 $ 478 $ 308 $ 4,788
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (198) (435) (159) (3,730)
Operating
expenses (86) (13) (115) (572)
Interest
income 1 - 10 12
Amortization
of property,
plant and
equipment (7) (12) (8) (100)
----------------------------------------------------------------------------
Earnings
Before the
Undernoted
Items 30 18 36 398
Amortization
of intangible
assets and
deferred
charges (5) (3) (6) (65)
Interest
expense of
operating
companies (21) (10) (4) (80)
Unrealized
increase
(decrease) in
value of
investments
in associates
at fair
value, net - - (11) 13
Foreign
exchange
gains (loss) 3 - 7 11
Stock-based
compensation
expense - - (45) (57)
Other items (10) - (11) (92)
Limited
Partners'
Interests - - (114) (114)
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations (3) 5 (148) 14
Recovery of
(provision
for) income
taxes 12 (7) (3) (35)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations 9 (2) (151) (21)
Earnings from
discontinued
operations(b) - - 20 56
----------------------------------------------------------------------------
Net earnings
(loss) $ 9 $ (2) $ (131) $ 35
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ 6 $ (2) $ (129) $ (40)
----------------------------------------------------------------------------
Non-
controlling
interests $ 3 $ - $ (2) $ 75
----------------------------------------------------------------------------
Net earnings
(loss) $ 9 $ (2) $ (131) $ 35
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las
Vegas, ONCAP II, Onex Real Estate, Flushing Town Center and the parent
company.
(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 NINE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Nine months
ended Electronics
September 30, Manufacturing Financial
2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 5,460 $ 3,645 $ 3,696 $ 900
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (5,033) (3,110) (2,553) (438)
Operating
expenses (179) (127) (683) (327)
Interest
income - 1 3 -
Amortization
of property,
plant and
equipment (47) (79) (92) (3)
----------------------------------------------------------------------------
Earnings
(Loss) Before
the
Undernoted
Items 201 330 371 132
Amortization
of intangible
assets and
deferred
charges (11) (24) (127) (14)
Interest
expense of
operating
companies (5) (62) (171) (3)
Unrealized
increase in
value of
investments
in associates
at fair
value, net - - - -
Foreign
exchange
gains (loss) - (2) (4) -
Stock-based
compensation
expense (35) (10) (3) -
Other items (7) 1 (29) 7
Impairment of
goodwill,
intangible
assets and
long-lived
assets, net 2 - (120) -
Limited
Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations 145 233 (83) 122
Recovery of
(provision
for) income
taxes (19) (68) (45) (42)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations 126 165 (128) 80
Earnings from
discontinued
operations(b) - - 606 -
----------------------------------------------------------------------------
Net earnings
(loss) $ 126 $ 165 $ 478 $ 80
----------------------------------------------------------------------------
Total assets $ 2,915 $ 4,914 $ 4,175 $ 4,927
----------------------------------------------------------------------------
Long-term
debt(c) $ - $ 1,160 $ 2,664 $ 203
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ 11 $ 26 $ 500 $ 73
----------------------------------------------------------------------------
Non-
controlling
interests $ 115 $ 139 $ (22) $ 7
----------------------------------------------------------------------------
Net earnings
(loss) $ 126 $ 165 $ 478 $ 80
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Nine months
ended Customer
September 30, Care Metal Consolidated
2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 1,052 $ 2,042 $ 1,089 $ 17,884
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (684) (1,894) (636) (14,348)
Operating
expenses (280) (45) (439) (2,080)
Interest
income - - 14 18
Amortization
of property,
plant and
equipment (23) (36) (40) (320)
----------------------------------------------------------------------------
Earnings
(Loss) Before
the
Undernoted
Items 65 67 (12) 1,154
Amortization
of intangible
assets and
deferred
charges (20) (9) (17) (222)
Interest
expense of
operating
companies (60) (25) (25) (351)
Unrealized
increase in
value of
investments
in associates
at fair
value, net - - 374 374
Foreign
exchange
gains (loss) - 1 (4) (9)
Stock-based
compensation
expense - (2) (40) (90)
Other items (13) - (75) (116)
Impairment of
goodwill,
intangible
assets and
long-lived
assets, net - - (8) (126)
Limited
Partners'
Interests - - (431) (431)
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations (28) 32 (238) 183
Recovery of
(provision
for) income
taxes (9) (11) 37 (157)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations (37) 21 (201) 26
Earnings from
discontinued
operations(b) - - 1,109 1,715
----------------------------------------------------------------------------
Net earnings
(loss) $ (37) $ 21 $ 908 $ 1,741
----------------------------------------------------------------------------
Total assets $ 652 $ 1,056 $ 8,493 $ 27,132
----------------------------------------------------------------------------
Long-term
debt(c) $ 631 $ 379 $ 1,379 $ 6,416
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ (25) $ 15 $ 913 $ 1,513
----------------------------------------------------------------------------
Non-
controlling
interests $ (12) $ 6 $ (5) $ 228
----------------------------------------------------------------------------
Net earnings
(loss) $ (37) $ 21 $ 908 $ 1,741
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las
Vegas, Tomkins, ONCAP II, ONCAP III, Onex Real Estate, Flushing Town
Center and the parent company.
(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 deferred charges.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Nine months
ended Electronics
September 30, Manufacturing Financial
2010 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 4,650 $ 3,103 $ 2,397 $ 893
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (4,265) (2,559) (1,523) (432)
Operating
expenses (161) (133) (447) (325)
Interest
income - - 2 -
Amortization
of property,
plant and
equipment (54) (70) (86) (4)
----------------------------------------------------------------------------
Earnings
Before the
Undernoted
Items 170 341 343 132
Amortization
of intangible
assets and
deferred
charges (11) (16) (124) (18)
Interest
expense of
operating
companies (15) (41) (91) (3)
Unrealized
increase in
value of
investments
in associates
at fair
value, net - - 17 -
Foreign
exchange
gains (loss) (3) (4) (4) -
Stock-based
compensation
expense (27) (25) (2) -
Other items (29) 1 (69) 17
Limited
Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations 85 256 70 128
Recovery of
(provision
for) income
taxes (22) (76) (17) (48)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations 63 180 53 80
Earnings from
discontinued
operations(b) - - 92 -
----------------------------------------------------------------------------
Net earnings
(loss) $ 63 $ 180 $ 145 $ 80
----------------------------------------------------------------------------
Total assets
at December
31,
2010(c)(d) $ 3,014 $ 4,975 $ 6,162 $ 4,918
----------------------------------------------------------------------------
Long-term debt
at December
31,
2010(d)(e) $ - $ 1,145 $ 2,996 $ 205
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ 5 $ 41 $ 85 $ 74
----------------------------------------------------------------------------
Non-
controlling
interests $ 58 $ 139 $ 60 $ 6
----------------------------------------------------------------------------
Net earnings
(loss) $ 63 $ 180 $ 145 $ 80
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions
of U.S.
dollars)
Nine months
ended Customer
September 30, Care Metal Consolidated
2010 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 996 $ 1,577 $ 716 $ 14,332
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (631) (1,446) (368) (11,224)
Operating
expenses (274) (41) (307) (1,688)
Interest
income 1 - 17 20
Amortization
of property,
plant and
equipment (26) (37) (22) (299)
----------------------------------------------------------------------------
Earnings
Before the
Undernoted
Items 66 53 36 1,141
Amortization
of intangible
assets and
deferred
charges (19) (9) (11) (208)
Interest
expense of
operating
companies (60) (32) (9) (251)
Unrealized
increase in
value of
investments
in associates
at fair
value, net - - 235 252
Foreign
exchange
gains (loss) (3) - 4 (10)
Stock-based
compensation
expense - - (74) (128)
Other items (21) - (9) (110)
Limited
Partners'
Interests - - (421) (421)
----------------------------------------------------------------------------
Earnings
(loss) before
income taxes
and
discontinued
operations (37) 12 (249) 265
Recovery of
(provision
for) income
taxes 4 (10) (9) (178)
----------------------------------------------------------------------------
Earnings
(loss) from
continuing
operations (33) 2 (258) 87
Earnings from
discontinued
operations(b) - - 22 114
----------------------------------------------------------------------------
Net earnings
(loss) $ (33) $ 2 $ (236) $ 201
----------------------------------------------------------------------------
Total assets
at December
31,
2010(c)(d) $ 675 $ 862 $ 7,501 $ 28,107
----------------------------------------------------------------------------
Long-term debt
at December
31,
2010(d)(e) $ 624 $ 404 $ 1,215 $ 6,589
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
----------------------------------------------------------------------------
Equity holders
of Onex
Corporation $ (22) $ 3 $ (233) $ (47)
----------------------------------------------------------------------------
Non-
controlling
interests $ (11) $ (1) $ (3) $ 248
----------------------------------------------------------------------------
Net earnings
(loss) $ (33) $ 2 $ (236) $ 201
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, RSI, Tropicana Las
Vegas, ONCAP II, Onex Real Estate, Flushing Town Center and the parent
company.
(b) Discontinued operations includes EMSC in the Healthcare segment (sold in
May 2011) and Husky in the Other segment (sold in June 2011).
(c) Total assets for the other segment at December 31, 2010 includes the
assets of Tomkins, acquired in September 2010.
(d) Total assets and long-term debt include EMSC and Husky, which were sold
in the second quarter of 2011.
(e) Long-term debt includes current portion, excludes finance leases and is
net of deferred charges.
Contact Information:
Onex Corporation
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com