TORONTO, ONTARIO--(Marketwire - May 11, 2011) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the first quarter ended March 31, 2011 and an update on matters following quarter-end.
Highlights
Onex and its affiliates (the "Onex Group") agreed to sell Husky International for $2.1 billion, which, will result in a multiple of invested capital of approximately 2.9 times and a 36% rate of return. Onex' portion of the net proceeds from this sale would be approximately $635 million, including carried interest.
The Onex Group agreed to invest $675 million and acquire a significant minority interest in JELD-WEN, the world's largest residential door and window maker. Onex' share of the investment is approximately $120 million.
The Onex Group agreed to sell Emergency Medical Services Corporation for $64 per share. Onex' share of the net proceeds will be $339 million including carried interest. This transaction is expected to close at the end of May.
The Onex Group sold approximately 10 million shares in Spirit AeroSystems for total proceeds of $245 million, resulting in a multiple of over 7 times cost. Onex received net proceeds of approximately $74 million, including carried interest.
During the first quarter, Carestream paid a distribution of $197 million to the Onex Group, of which Onex' share was $78 million.
Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 5% and 3%, respectively, during the first quarter.
At March 31, Onex' unrealized carried interest was $164 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.
At April 30, Onex had no debt at the parent company and over $800 million of cash and near-cash investments.
Onex is an investor and asset manager generating value from (i) growth in the Company's $4.6 billion of proprietary capital; (ii) management fees based on the $9.0 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.
Investing
"Starting mid-way though 2010, we saw continuing improvement across most of our operating companies, which resulted in meaningful year-over-year increases in mark-to-market values," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "This momentum has continued into 2011, with many of our companies generating both earnings growth and strong free cash flow."
In April, TMS International completed an initial public offering with a portion of proceeds being used to fund the company's continued growth as well as to repay notes held by Onex and management. Including prior capital returns and the IPO value of the retained investment, the multiple on invested capital is about 1.6 times. We will consider additional offerings for certain of our other businesses. Fortunately, we can wait for the appropriate time given the strength of our operating companies' balance sheets.
In May, the Onex Group agreed to sell Husky International for $2.1 billion. Upon completion of the transaction, the Onex Group will have received total net proceeds of $1.8 billion, including a prior $98 million distribution, which will result in a multiple of invested capital of approximately 2.9 times and a 36% rate of return. Onex' portion of the net proceeds from this sale would be approximately $635 million, including carried interest. The transaction is expected to close early in the third quarter and is subject to customary closing conditions.
Onex Partners III, Onex' flagship private equity fund, agreed to invest $675 million and acquire a significant minority interest in JELD-WEN, the world's largest residential door and window maker. The transaction is anticipated to close in the second quarter subject to customary regulatory approvals and completion of the associated debt financing.
"The acquisition market continues to improve as does our investment pipeline activity," said Mr. Schwartz. "We remain optimistic that the recent increase in corporate mergers and acquisitions is a precursor to dispositions into the private equity markets. In prior financial cycles, this has been a leading indicator as chief executives look to sell businesses that they no longer consider core to their merged operations. Historically, corporate dispositions and carve-outs have produced some of our best investments."
Although it is difficult to predict investment pace, Onex is well-positioned to respond to the right opportunities. The Company continues to be in excellent financial condition, with over $800 million in cash and near-cash investments at the end of April, no debt at the parent company and approximately $3.0 billion of uncalled committed capital for acquisitions through the Onex Partners and ONCAP Funds.
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 focusing on 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 March 31, 2011, Onex has generated a 27-year gross IRR of 29% and an average multiple of 3.6 times invested capital from 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 March 31, 2011, Onex' management team had almost $1.5 billion invested in Onex shares and in its operating companies.
Asset Management
Onex earns recurring asset management fees and carried interest on $9.0 billion of third-party capital. The current annualized rate of total management fees received is approximately $97 million, which typically offsets Onex' operating costs.
At March 31, 2011, there was approximately $62 million of unrealized carried interest allocable to Onex based on the public companies held at market value in Onex Partners I. In addition, Onex has the potential to earn a further $102 million of carried interest on its private businesses in the Onex Partners Funds based on the fair values determined at March 31. Ultimately, the carried interest received will be determined upon the final returns of each Fund.
In February, ONCAP began fundraising for ONCAP III, with a fund size of up to C$800 million in capital commitments. As with each of our Funds, Onex will be the largest limited partner in ONCAP III, representing 35% of the capital commitments to the Fund including commitments from Onex management.
Consolidated First-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 public-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 Q1 Management's Discussion and Analysis and Notes to 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 first quarter, revenues increased 22% to $6.0 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $204 million compared to a net loss of $8 million in the first quarter of 2010. Cash flow from operations was $307 million compared to $112 million in 2010.
The Company paid a first-quarter dividend of C$0.0275 per Subordinate Voting Share on April 29, 2011 to shareholders of record on April 8, 2011.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended March 31, 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' $4.6 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review the Company's first-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 $15 billion, of which $10 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 $31 billion, have assets of $41 billion and employ more than 238,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
How We Are Invested | |||
As at March 31, 2011 | |||
Proprietary Capital | |||
(US$ millions) | |||
Private Equity | |||
Onex Partners | |||
Private Companies | $ | 2,1211 | |
Public Companies | 5792 | ||
Unrealized Carried Interest on Onex Partners Investments | 1643 | ||
ONCAP | 1834 | ||
Direct Investments | |||
Private Companies | 2515 | ||
Public Companies | 1912 | ||
3,489 | |||
Alternative Assets | |||
Onex Real Estate Partners | 1506 | ||
Onex Credit Partners | 1027 | ||
252 | |||
Other Investments | 91 | ||
Cash and Near-Cash | 7308 | ||
Onex Corporation Debt | - | ||
$ | 4,562 |
1 | Based on the US$ fair value of the investments in Onex Partners' financial statements. |
2 | Based on the March 31, 2011 market values, except Emergency Medical Services, which is based on a cash price of $64.00 in the merger agreement entered into for the sale of Emergency Medical Services. |
3 | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
4 | Based on the C$ fair value of the investments in ONCAP's financial statements and C$/US$ exchange rate of 1.0314. |
5 | Historical US$ cost amounts. |
6 | Based on carrying value of Onex Real Estate Partners' investments at March 31, 2011. |
7 | Based on the March 31, 2011 market values. Excludes approximately $159 million investment in Onex Credit Partners' unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. |
8 | Includes approximately $159 million invested in Onex Credit Partners' unleveraged senior secured loan strategy fund. |
Significant Public Companies | |||||||
Shares/Units Subject to Carried Interest (millions) | Shares/Units Held by Onex (millions) | Closing Price per Share1 | Market Value of Onex' Investment | ||||
Onex Partners | |||||||
Emergency Medical Services | 7.0 | 4.8 | $ | 64.00 | $ | 3072 | |
Skilled Healthcare Group | 10.7 | 3.5 | $ | 14.39 | 502 | ||
Spirit AeroSystems3 | 17.2 | 8.6 | $ | 25.67 | 2222 | ||
579 | |||||||
Direct Investments | |||||||
Celestica | - | 17.8 | $ | 10.72 | 191 | ||
$ | 770 |
1 | Closing price in whole dollars on March 31, 2011, except Emergency Medical Services, which is based on a cash price of $64.00 in the merger agreement entered into for the sale of Emergency Medical Services. |
2 | Excludes Onex' potential participation in the carried interest. |
3 | Prior to the sale of shares in April 2011. |
Significant Private Companies | ||||||||
Onex and its Limited Partners Ownership | LTM EBITDA1 | Net Debt | Cumulative Distributions | Onex' Economic Ownership | Cost of Onex' Investment (Net of Returns of Capital) | |||
Onex Partners | ||||||||
Center for Diagnostic Imaging | 81% | $ 39 | $ 39 | $ - | 19% | $ 17 | ||
The Warranty Group | 92% | 1232 | n/a | 161 | 29% | 154 | ||
TMS International | 91% | 129 | 330 | 23 | 36% | 93 | ||
Hawker Beechcraft | 49% | 62 | 1,786 | - | 19% | 212 | ||
Carestream Health | 96% | 435 | 1,767 | 434 | 38% | 90 | ||
Allison Transmission | 49% | 629 | 3,319 | - | 15% | 237 | ||
Husky International | 98% | 249 | 175 | 100 | 36% | 189 | ||
RSI Home Products | 50% | n/a | n/a | n/a | 20% | 78 | ||
Tropicana Las Vegas | 74% | n/a3 | 36 | - | 16% | 54 | ||
Tomkins | 56% | n/a4 | n/a4 | - | 14% | 315 | ||
ResCare | 98% | 111 | 367 | - | 20% | 41 | ||
1,480 | ||||||||
Direct Investments | ||||||||
Sitel Worldwide | 68% | $ 119 | $ 644 | $ - | 68% | 251 | ||
$ 1,731 |
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 $116 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 | This information will be provided once the company reports to its debt holders at the end of May. |
Onex Corporation | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | As at | As at | As at | ||||
(in millions of U.S. dollars) | March 31, 2011 | December 31, 2010 | January 1, 2010 | ||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,953 | $ | 2,532 | $ | 3,018 | |
Short-term investments | 766 | 715 | 605 | ||||
Accounts receivable | 3,048 | 3,430 | 2,928 | ||||
Inventories | 4,332 | 4,004 | 3,204 | ||||
Other current assets | 1,150 | 1,495 | 1,101 | ||||
Assets held by discontinued operations | 1,810 | – | – | ||||
13,059 | 12,176 | 10,856 | |||||
Property, plant and equipment | 3,956 | 4,056 | 3,366 | ||||
Long-term investments | 4,920 | 4,864 | 3,448 | ||||
Other non-current assets | 1,787 | 1,872 | 1,915 | ||||
Intangible assets | 2,265 | 2,505 | 2,241 | ||||
Goodwill | 2,228 | 2,634 | 2,198 | ||||
$ | 28,215 | $ | 28,107 | $ | 24,024 | ||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 3,644 | $ | 3,964 | $ | 3,268 | |
Current portion of provisions | 210 | 257 | 255 | ||||
Other current liabilities | 1,223 | 1,211 | 974 | ||||
Current portion of long-term debt, without recourse to Onex | 119 | 404 | |||||
Current portion of obligations under finance leases, without recourse to Onex | 14 | 243 | 20 | ||||
Current portion of warranty reserves and unearned premiums | 1,343 | 14 | 1,342 | ||||
Liabilities held by discontinued operations | 910 | 1,314 | – | ||||
– | |||||||
7,463 | 7,003 | 6,263 | |||||
Non-current portion of provisions | 131 | 284 | 231 | ||||
Long-term debt of operating companies, without recourse to Onex | 6,260 | 6,346 | 5,284 | ||||
Non-current portion of obligations under finance leases, without recourse to Onex | 42 | 43 | 39 | ||||
Non-current portion of warranty reserves and unearned premiums | 1,790 | 1,780 | 1,935 | ||||
Other non-current liabilities | 2,018 | 1,921 | 1,670 | ||||
Deferred income taxes | 853 | 938 | 810 | ||||
Limited Partners' Interests | 5,663 | 5,650 | 3,708 | ||||
24,220 | 23,965 | 19,940 | |||||
Equity | |||||||
Share capital | 373 | 373 | 381 | ||||
Non-controlling interests | 3,764 | 3,638 | 3,329 | ||||
Retained earnings (deficit) and accumulated other comprehensive earnings | (142 | ) | 131 | 374 | |||
3,995 | 4,142 | 4,084 | |||||
$ | 28,215 | $ | 28,107 | $ | 24,024 |
Onex Corporation | |||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||
(Unaudited) | Three months ended March 31 | ||||||
(in millions of U.S. dollars except per share data) | 2011 | 2010 | |||||
Revenues | $ | 5,954 | $ | 4,890 | |||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (4,728 | ) | (3,793 | ) | |||
Operating expenses | (713 | ) | (610 | ) | |||
Interest income | 11 | 6 | |||||
Amortization of property, plant and equipment | (116 | ) | (113 | ) | |||
Earnings Before the Undernoted Items | 408 | 380 | |||||
Amortization of intangible assets and deferred charges | (80 | ) | (78 | ) | |||
Interest expense of operating companies | (133 | ) | (94 | ) | |||
Unrealized increase in value of investments in associates at fair value, net | 170 | 15 | |||||
Foreign exchange gains | 8 | 1 | |||||
Stock-based compensation expense | (88 | ) | (80 | ) | |||
Other items | (74 | ) | (27 | ) | |||
Limited Partners' Interests | (395 | ) | (95 | ) | |||
Earnings (loss) before income taxes and discontinued operations | (184 | ) | 22 | ||||
Provision for income taxes | (56 | ) | (61 | ) | |||
Loss from continuing operations | (240 | ) | (39 | ) | |||
Earnings from discontinued operations | 36 | 31 | |||||
Net Loss for the Period | $ | (204 | ) | $ | (8 | ) | |
Earnings (Loss) from continuing operations attributable to: | |||||||
Equity holders of Onex Corporation | $ | (310 | ) | $ | (116 | ) | |
Non-controlling Interests | 70 | 77 | |||||
Loss from continuing operations for the Period | $ | (240 | ) | $ | (39 | ) | |
Net Earnings (Loss) attributable to: | |||||||
Equity holders of Onex Corporation | $ | (299 | ) | $ | (107 | ) | |
Non-controlling Interests | 95 | 99 | |||||
Net Loss for the Period | $ | (204 | ) | $ | (8 | ) | |
Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||
Basic and Diluted: | |||||||
Continuing operations | $ | (2.62 | ) | $ | (0.97 | ) | |
Discontinued operations | 0.09 | 0.08 | |||||
Net Loss | $ | (2.53 | ) | $ | (0.89 | ) |
Onex Corporation | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | Three months ended March 31 | ||||||
(in millions of U.S. dollars) | 2011 | 2010 | |||||
Operating Activities | |||||||
Loss for the period from continuing operations | $ | (240 | ) | $ | (39 | ) | |
Adjustments to net loss: | |||||||
Provision for income taxes | 56 | 61 | |||||
Interest income | (11 | ) | (6 | ) | |||
Interest expense of operating companies | 133 | 94 | |||||
Net earnings (loss) before interest and provision for income taxes | (62 | ) | 110 | ||||
Cash taxes received | 12 | 1 | |||||
Items not affecting cash: | |||||||
Amortization of property, plant and equipment | 116 | 113 | |||||
Amortization of intangible assets and deferred charges | 80 | 78 | |||||
Amortization of deferred warranty costs | 17 | 27 | |||||
Unrealized increase in value of investments in associates at fair value, net | (170 | ) | (15 | ) | |||
Stock-based compensation expense | 85 | 75 | |||||
Limited Partners' Interests | 395 | 95 | |||||
Change in provisions | 39 | 11 | |||||
Other | 44 | (18 | ) | ||||
556 | 477 | ||||||
Changes in non-cash working capital items: | |||||||
Accounts receivable | (106 | ) | (82 | ) | |||
Inventories | (351 | ) | (234 | ) | |||
Other current assets | 286 | 15 | |||||
Accounts payable, accrued liabilities and other current liabilities | (171 | ) | (98 | ) | |||
Decrease in cash due to changes in working capital items | (342 | ) | (399 | ) | |||
Increase in other operating activities | 12 | 7 | |||||
Increase (decrease) in warranty reserves and premiums | 7 | (31 | ) | ||||
Cash flows from operating activities (discontinued operations) | 74 | 58 | |||||
307 | 112 | ||||||
Financing Activities | |||||||
Issuance of long-term debt | 289 | 466 | |||||
Repayment of long-term debt | (129 | ) | (686 | ) | |||
Cash interest paid | (80 | ) | (112 | ) | |||
Cash dividends paid | (3 | ) | (3 | ) | |||
Repurchase of share capital of Onex Corporation | - | (2 | ) | ||||
Repurchase of share capital of operating companies | (28 | ) | (1 | ) | |||
Financing provided by Limited Partners | 33 | 37 | |||||
Distributions paid to non-controlling interests and Limited Partners | (417 | ) | (27 | ) | |||
Decrease due to other financing activities | (6 | ) | (5 | ) | |||
Cash flows used for financing activities (discontinued operations) | (6 | ) | - | ||||
(347 | ) | (333 | ) | ||||
Investing Activities | |||||||
Acquisition of operating companies, net of cash in acquired companies of nil (2010 – $23) | (8 | ) | 4 | ||||
Purchase of property, plant and equipment | (125 | ) | (158 | ) | |||
Cash interest received | 1 | 2 | |||||
Decrease due to other investing activities | (61 | ) | (45 | ) | |||
Cash flows used for investing activities (discontinued operations) | (33 | ) | (7 | ) | |||
(226 | ) | (204 | ) | ||||
Decrease in Cash for the Period | (266 | ) | (425 | ) | |||
Increase (decrease) in cash due to changes in foreign exchange rates | 10 | (1 | ) | ||||
Cash, beginning of the period – continuing operations | 2,245 | 2,718 | |||||
Cash, beginning of the period – discontinued operations | 287 | 300 | |||||
Cash and cash equivalents | 2,276 | 2,592 | |||||
Cash held by discontinued operations | (323 | ) | (352 | ) | |||
Cash and Cash Equivalents Held by Continuing Operations | $ | 1,953 | $ | 2,240 |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE THREE MONTHS ENDED MARCH 31, 2011 |
(unaudited) (in millions of U.S. dollars) Three months ended March 31, 2011 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Other(a) | Consolidated Total | ||||||||
Revenues | $ 1,800 | $ 1,050 | $ 1,200 | $ 299 | $ 343 | $ 664 | $ 598 | $ 5,954 | ||||||||
Cost of sales (excluding amortization of roperty, plant and equipment, intangible assets and deferred charges) | (1,664 | ) | (890 | ) | (834 | ) | (141 | ) | (224 | ) | (612 | ) | (363 | ) | (4,728 | ) |
Operating expenses | (59 | ) | (42 | ) | (231 | ) | (105 | ) | (92 | ) | (16 | ) | (168 | ) | (713 | ) |
Interest income | - | - | 1 | - | - | - | 10 | 11 | ||||||||
Amortization of property, plant and equipment | (15 | ) | (26 | ) | (32 | ) | (1 | ) | (8 | ) | (12 | ) | (22 | ) | (116 | ) |
Earnings Before the Undernoted Items | 62 | 92 | 104 | 52 | 19 | 24 | 55 | 408 | ||||||||
Amortization of intangible assets and deferred charges | (4 | ) | (7 | ) | (42 | ) | (4 | ) | (6 | ) | (3 | ) | (14 | ) | (80 | ) |
Interest expense of operating companies | (2 | ) | (21 | ) | (69 | ) | (1 | ) | (19 | ) | (9 | ) | (12 | ) | (133 | ) |
Unrealized increase in value of investments in associates at fair value, net | - | - | - | - | - | - | 170 | 170 | ||||||||
Foreign exchange gains | - | - | 2 | - | 3 | - | 3 | 8 | ||||||||
Stock-based compensation expense | (17 | ) | (3 | ) | (1 | ) | - | - | - | (67 | ) | (88 | ) | |||
Other items | (6 | ) | 1 | (9 | ) | 2 | (7 | ) | - | (55 | ) | (74 | ) | |||
Limited Partners' Interests | - | - | - | - | - | - | (395 | ) | (395 | ) | ||||||
Earnings (loss) before income taxes and iscontinued operations | 33 | 62 | (15 | ) | 49 | (10 | ) | 12 | (315 | ) | (184 | ) | ||||
Recovery of (provision for) income taxes | (3 | ) | (16 | ) | (9 | ) | (12 | ) | 3 | (4 | ) | (15 | ) | (56 | ) | |
Earnings (loss) from continuing operations | 30 | 46 | (24 | ) | 37 | (7 | ) | 8 | (330 | ) | (240 | ) | ||||
Earnings from discontinued operations | - | - | 36 | - | - | - | - | 36 | ||||||||
Net earnings (loss) | $ 30 | $ 46 | $ 12 | $ 37 | $ (7 | ) | $ 8 | $ (330 | ) | $ (204 | ) | |||||
Total assets | $ 2,997 | $ 5,031 | $ 6,147 | $ 4,920 | $ 696 | $ 960 | $ 7,464 | $ 28,215 | ||||||||
Long-term debt(b) | $ - | $ 1,146 | $ 2,735 | $ 204 | $ 647 | $ 404 | $ 1,243 | $ 6,379 | ||||||||
Net earnings (loss) attributable to: | ||||||||||||||||
Equity holders of Onex Corporation | $ 3 | $ 11 | $ (19 | ) | $ 33 | $ (5 | ) | $ 8 | $ (330 | ) | $ (299 | ) | ||||
Non-controlling interests | 27 | 35 | 31 | 4 | (2 | ) | - | - | 95 | |||||||
Net earnings (loss) | $ 30 | $ 46 | $ 12 | $ 37 | $ (7 | ) | $ 8 | $ (330 | ) | $ (204 | ) |
(a) | Includes Allison Transmission, Hawker Beechcraft, Husky, RSI, Tropicana Las Vegas, Tomkins, ONCAP II, Onex Real Estate and the parent company. |
(b) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE THREE MONTHS ENDED MARCH 31, 2010 |
(unaudited) (in millions of U.S. dollars) Three months ended March 31, 2010 | Electronics Manufacturing Services | Aerostructures | Healthcare | Financial Services | Customer Care Services | Metal Services | Other(a) | Consolidated Total | ||||||||
Revenues | $ 1,518 | $ 1,043 | $ 752 | $ 311 | $ 358 | $ 471 | $ 437 | $ 4,890 | ||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,391 | ) | (863 | ) | (478 | ) | (142 | ) | (227 | ) | (433 | ) | (259 | ) | (3,793 | ) |
Operating expenses | (51 | ) | (43 | ) | (150 | ) | (121 | ) | (98 | ) | (12 | ) | (135 | ) | (610 | ) |
Interest income | – | – | 1 | – | – | – | 5 | 6 | ||||||||
Amortization of property, plant and equipment | (19 | ) | (22 | ) | (32 | ) | (1 | ) | (9 | ) | (13 | ) | (17 | ) | (113 | ) |
Earnings Before the Undernoted Items | 57 | 115 | 93 | 47 | 24 | 13 | 31 | 380 | ||||||||
Amortization of intangible assets and deferred charges | (4 | ) | (6 | ) | (40 | ) | (6 | ) | (7 | ) | (3 | ) | (12 | ) | (78 | ) |
Interest expense of operating companies | (13 | ) | (14 | ) | (27 | ) | (1 | ) | (18 | ) | (12 | ) | (9 | ) | (94 | ) |
Unrealized increase in value of investments in associates at fair value, net | – | – | 7 | – | – | – | 8 | 15 | ||||||||
Foreign exchange gains (loss) | – | (7 | ) | (3 | ) | – | 2 | – | 9 | 1 | ||||||
Stock-based compensation expense | (9 | ) | (3 | ) | (1 | ) | – | – | – | (67 | ) | (80 | ) | |||
Other items | (6 | ) | – | (3 | ) | 3 | (8 | ) | – | (13 | ) | (27 | ) | |||
Limited Partners' Interests | – | – | – | – | – | – | (95 | ) | (95 | ) | ||||||
Earnings (loss) before income taxes and | 25 | 85 | 26 | 43 | (7 | ) | (2 | ) | (148 | ) | 22 | |||||
discontinued operations | ||||||||||||||||
Recovery of (provision for) income taxes | 4 | (20 | ) | (7 | ) | (17 | ) | (3 | ) | (1 | ) | (17 | ) | (61 | ) | |
Earnings (loss) from continuing operations | 29 | 65 | 19 | 26 | (10 | ) | (3 | ) | (165 | ) | (39 | ) | ||||
Earnings from discontinued operations | – | – | 31 | – | – | – | – | 31 | ||||||||
Net earnings (loss) | $ 29 | $ 65 | $ 50 | $ 26 | $ (10 | ) | $ (3 | ) | $ (165 | ) | $ (8 | ) | ||||
Total assets at December 31, 2010(b) | $ 3,014 | $ 4,975 | $ 6,162 | $ 4,918 | $ 675 | $ 862 | $ 7,501 | $ 28,107 | ||||||||
Long-term debt at December 31, 2010(c) | $ – | $ 1,145 | $ 2,996 | $ 205 | $ 624 | $ 404 | $ 1,215 | $ 6,589 | ||||||||
Net earnings (loss) attributable to: | ||||||||||||||||
Equity holders of Onex Corporation | $ 3 | $ 15 | $ 23 | $ 24 | $ (7 | ) | $ (2 | ) | $ (163 | ) | $ (107 | ) | ||||
Non-controlling interests | $ 26 | $ 50 | $ 27 | $ 2 | $ (3 | ) | $ (1 | ) | $ (2 | ) | $ 99 | |||||
Net earnings (loss) | $ 29 | $ 65 | $ 50 | $ 26 | $ (10 | ) | $ (3 | ) | $ (165 | ) | $ (8 | ) |
(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 December 31, 2010 includes the assets of Tomkins, acquired in September 2010. |
(c) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
Contact Information:
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com