TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the second quarter and six months ended June 30, 2011 and an update on matters following quarter-end.
Highlights
-- Onex and its affiliates (the "Onex Group") completed the sales of Husky
International and Emergency Medical Services Corporation ("EMSC"),
resulting in multiples of invested capital of 3.0 and 7.8 times,
respectively. Onex' portion of the net cash proceeds from these two
transactions was approximately $925 million, including $49 million of
carried interest.
-- The Onex Group agreed to invest $864 million in JELD-WEN, one of the
world's largest residential door and window manufacturers, and acquire
approximately a 58% ownership stake. Upon closing of the transaction,
Onex' share of the investment will be approximately $295 million.
-- ONCAP completed three acquisitions in the second quarter. The equity
investment in these transactions totalled $221 million, of which Onex'
share was $98 million.
-- To date, ONCAP has raised more than 90% of total expected third-party
capital commitments to its new Fund, ONCAP III.
-- Onex Credit Partners raised approximately $100 million of third-party
capital through a treasury offering of OCP Credit Strategy Fund
(TSX:OCS.UN).
-- Including realizations and distributions, the value of Onex' interest in
Onex Partners' and ONCAP's private investments grew by 13% and 3%,
respectively, in the first six months of 2011.
-- At June 30, Onex' total proprietary capital had increased by 22% year-
over-year to $4.6 billion.
-- At June 30, Onex' unrealized carried interest was $101 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 seven months ending July 31, Onex had repurchased 377,376 shares
for approximately C$13 million in 2011.
-- At July 31, Onex had no debt at the parent company and over $1.6 billion
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 $7.9 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds.
Investing
"We had a very busy second quarter with three acquisitions and two large realizations," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "The sales of Husky International and EMSC are both excellent examples of how we create value at our businesses and ultimately generate strong returns on invested capital."
In June, the Onex Group completed the sale of Husky International for $2.1 billion. Net cash proceeds from the sale totaled $1.7 billion, of which Onex' share was $583 million, including $17 million of carried interest. Upon completion of the transaction, the Onex Group has received total net proceeds of $1.8 billion, including a prior $98 million distribution, which results in a multiple of invested capital of 3.0 times and a 37% rate of return.
In May, the Onex Group received net cash proceeds of $878 million following the sale of its remaining shares of EMSC, of which Onex' share was $342 million, including $32 million of carried interest. Including previous sale transactions, this investment generated a multiple of invested capital of 7.8 times and a 47% rate of return.
During the quarter, the Onex Group also completed a secondary offering of Spirit AeroSystems shares and an initial public offering of TMS International. Together, these two offerings resulted in total net cash proceeds of $311 million to the Onex Group, of which Onex' share was $100 million, including $10 million of carried interest.
The mid-market private equity space has been quite active. ONCAP completed three acquisitions in the second quarter: Pinnacle Renewable Energy Group, a producer of wood pellets for markets around the world; Casino ABS, the largest casino operator in Alberta; and Hopkins Manufacturing, a manufacturer, marketer and distributor of automotive aftermarket products. The equity investment in these transactions totalled $221 million, of which Onex' share was $98 million.
"While corporate mergers and acquisitions activity has been slow to increase and credit markets have moderated, we're committed to finding great businesses to own and build for our shareholders and limited partners," said Mr. Schwartz.
Last week, Onex amended its previously announced agreement to invest in JELD-WEN, one of the world's largest residential door and window manufacturers. This proprietary opportunity is the result of Onex' focus and expertise in the building products sector and its industrial partnership with Philip Orsino, the former CEO of Masonite International. The Onex Group will now invest $864 million, of which Onex' share will initially be approximately $295 million, and acquire a 58% ownership stake in the company. Following the closing, which is anticipated to occur in the third quarter, Mr. Orsino will be appointed President of JELD-WEN and Onex will appoint four of eight members of the Board of Directors.
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 over $1.6 billion in cash and near-cash investments at the end of July, no debt at the parent company and approximately $3.2 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 June 30, 2011, Onex has generated a 27-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 is a result of the strong alignment of interests between Onex shareholders, our limited partners and the management team. At June 30, 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/or carried interest on $7.9 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 June 30, 2011, there was approximately $20 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 June 30. Ultimately, the carried interest received will be determined upon the final returns of each Fund.
In the second quarter, ONCAP continued fundraising for ONCAP III, with a fund size of up to C$800 million in capital commitments. As with each of its Funds, Onex will be the largest limited partner in ONCAP III, representing approximately 35% of the capital commitments to the Fund, excluding commitments from management of Onex and ONCAP. To date, ONCAP has closed a total of C$484 million in third-party capital commitments to the Fund, and expects to complete this fundraising in the third quarter.
Recently, Onex Credit Partners, Onex' credit investing platform, raised approximately $100 million of third-party capital through a treasury offering of OCP Credit Strategy Fund (TSX:OCS.UN), including the exercise of the over-allotment option. Established in 2007, Onex Credit Partners now manages approximately $1.4 billion through several debt strategies.
Consolidated Second-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 Q2 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 second quarter, revenues increased 27% to $6.2 billion compared to the same period of the prior year. Onex reported consolidated net earnings of $1.8 billion compared to $174 million in the second quarter of 2010. In the second quarter, net earnings included $1.7 billion from discontinued operations relating to the sales of Husky International and EMSC. Under IFRS, the Company's net earnings now include the share of earnings attributable to both Onex, the parent company, as well as to its third-party limited partners in Onex' controlled operating companies. Upon a realization, Onex effectively recovers prior charges to earnings for the increase in fair value of the business allocated to the third party limited partners.
On a consolidated basis for the six months ended June 30, 2011, revenues increased 24% to $11.9 billion. Net earnings for the period were $1.6 billion compared to $166 million for the six months ended June 30, 2010 for reasons explained above. Cash flow from operations was $16 million compared to $365 million for the same period last year.
The Company paid a second-quarter dividend of C$0.0275 per Subordinate Voting Share on July 29, 2011 to shareholders of record on July 8, 2011.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the second quarter ended June 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' $4.6 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review the Company's second-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 $14 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 $41 billion, generate annual revenues of $34 billion, and employ more than 210,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Onex
How We Are Invested
As at June 30, 2011
Proprietary
Capital
(US$ millions)
----------------------------------------------------------------------------
Private Equity
Onex Partners
Private Companies $ 1,557(1)
Public Companies 285(2)
Unrealized Carried Interest on Onex Partners Investments 101(3)
ONCAP 310(4)
Direct Investments
Private Companies 251(5)
Public Companies 156(2)
----------------------------------------------------------------------------
2,660
----------------------------------------------------------------------------
Alternative Assets
Onex Real Estate Partners 147(6)
Onex Credit Partners 103(7)
----------------------------------------------------------------------------
250
----------------------------------------------------------------------------
Other Investments 89
Cash and Near-Cash 1,620(8)
Onex Corporation Debt -
----------------------------------------------------------------------------
$ 4,619
----------------------------------------------------------------------------
(1) Based on the US$ fair value of the investments in Onex Partners'
financial statements.
(2) Based on the June 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 0.9645.
(5) Historical US$ cost amounts.
(6) Based on carrying value of Onex Real Estate Partners' investments at
June 30, 2011.
(7) Based on the June 30, 2011 market values. Excludes approximately $160
million investment in Onex Credit Partners' unleveraged senior
secured loan strategy fund, which is included with cash and
near-cash items.
(8) Includes approximately $160 million invested in Onex Credit
Partners' unleveraged senior secured loan strategy fund.
Significant Public Companies
Shares/Units
Subject to
Carried Shares/Units Closing Market Value
Interest Held by Onex Price per of Onex'
As at June 30, 2011 (millions) (millions) Share(1) Investment
----------------------------------------------------------------------------
Onex Partners
Skilled Healthcare
Group 10.7 3.5 $ 9.46 $ 33(3)
Spirit AeroSystems 11.9 6.0(2) $ 22.00 131(3)
TMS International 13.2 9.3 $ 13.05 121(3)
----------------------------------------------------------------------------
285
----------------------------------------------------------------------------
Direct Investments
Celestica - 17.8(2) $ 8.76 156
----------------------------------------------------------------------------
$ 441
----------------------------------------------------------------------------
(1) Closing price in whole dollars on June 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 Onex'
and its Investment
Limited Onex' (Net of
As at June Partners LTM Cumulative Economic Returns of
30, 2011 Ownership EBITDA(1) Net Debt Distributions Ownership Capital)
----------------------------------------------------------------------------
Onex
Partners
Center for
Diagnostic
Imaging 81% $ 39 $ 107 $ 67 19% $ 8
The
Warranty
Group 92% 113(2) n/a 161 29% 154
Hawker
Beechcraft 49% 71 1,953 7(4) 19% 212(5)
Carestream
Health 95% 402 1,733 434 37% 90
Allison
Transmission 49% 649 3,283 - 15% 237
RSI Home
Products 50% n/a n/a n/a 20% 78
Tropicana
Las Vegas 76% n/a(3) 23 - 16% 60
Tomkins 56% 774 2,921 - 14% 315
ResCare 98% 121 364 - 20% 41
----------------------------------------------------------------------------
1,195
----------------------------------------------------------------------------
Direct
Investments
Sitel
Worldwide 68% $ 124 $ 652 $ - 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) Represents interest received on the portion of Senior Notes
held by Onex, Onex Partners II and Onex management.
(5) Onex' investment includes $31 million in face value of
Senior Notes.
Onex Corporation
CONSOLIDATED BALANCE SHEETS
(Unaudited) As at As at As at
June 30, December January
(in millions of U.S. dollar) 2011 31, 2010 1, 2010
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,607 $ 2,532 $ 3,018
Short-term investments 744 715 605
Accounts receivable 3,084 3,430 2,928
Inventories 4,056 4,004 3,204
Other current assets 2,155 1,495 1,101
----------------------------------------------------------------------------
12,646 12,176 10,856
Property, plant and equipment 3,772 4,056 3,366
Long-term investments 5,214 4,864 3,448
Other non-current assets 1,774 1,872 1,915
Intangible assets 2,273 2,505 2,241
Goodwill 2,254 2,634 2,198
----------------------------------------------------------------------------
$ 27,933 $ 28,107 $ 24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $ 3,442 $ 3,964 $ 3,268
Current portion of provisions 186 257 255
Other current liabilities 718 1,211 974
Current portion of long-term
debt, without recourse to Onex 149 243 404
Current portion of obligations
under finance leases, without
recourse to Onex 14 14 20
Current portion of warranty
reserves and unearned premiums 1,381 1,314 1,342
Current portion of Limited
Partners' Interests 1,001 - -
----------------------------------------------------------------------------
6,891 7,003 6,263
Non-current portion of provisions 119 284 231
Long-term debt of operating
companies, without recourse to
Onex 6,361 6,346 5,284
Non-current portion of
obligations under finance
leases, without recourse to Onex 52 43 39
Non-current portion of warranty
reserves and unearned premiums 1,810 1,780 1,935
Other non-current liabilities 2,002 1,921 1,670
Deferred income taxes 865 938 810
Non-current portion of Limited
Partners' Interests 4,262 5,650 3,708
----------------------------------------------------------------------------
22,362 23,965 19,940
Equity
Share capital 371 373 381
Non-controlling interests 3,522 3,638 3,329
Retained earnings and accumulated
other comprehensive earnings 1,678 131 374
----------------------------------------------------------------------------
5,571 4,142 4,084
----------------------------------------------------------------------------
$ 27,933 $ 28,107 $ 24,024
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in millions of U.S. dollars
except per share data) Three months ended Six months ended
June 30 June 30
2011 2010 2011 2010
----------------------------------------------------------------------------
Revenues $ 6,229 $ 4,894 $ 11,876 $ 9,544
Cost of sales (excluding
amortization of property, plant
and equipment, intangible
assets and deferred charges) (5,054) (3,860) (9,582) (7,494)
Operating expenses (696) (545) (1,370) (1,116)
Interest income 6 2 17 8
Amortization of property, plant
and equipment (106) (97) (212) (199)
----------------------------------------------------------------------------
Earnings Before the Undernoted
Items 379 394 729 743
Amortization of intangible
assets and deferred charges (73) (73) (145) (143)
Interest expense of operating
companies (112) (84) (239) (171)
Unrealized increase in value of
investments in associates at
fair value, net 230 224 400 239
Foreign exchange gains (loss) - (22) 9 (21)
Stock-based compensation
recovery (expense) (68) 8 (156) (71)
Other items (5) 5 (74) (18)
Limited Partners' Interests (220) (212) (615) (307)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (loss) before income
taxes and discontinued
operations 131 240 (91) 251
Provision for income taxes (26) (97) (73) (143)
----------------------------------------------------------------------------
Earnings (loss) from continuing
operations 105 143 (164) 108
Earnings from discontinued
operations 1,656 31 1,721 58
----------------------------------------------------------------------------
Net Earnings for the Period $ 1,761 $ 174 $ 1,557 $ 166
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (Loss) from Continuing
Operations attributable to:
Equity holders of Onex
Corporation $ 18 $ 86 $ (321) $ (26)
Non-controlling Interests 87 57 157 134
----------------------------------------------------------------------------
Earnings (Loss) from Continuing
Operations for the Period $ 105 $ 143 $ (164) $ 108
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss) attributable
to:
Equity holders of Onex
Corporation $ 1,666 $ 100 $ 1,367 $ (7)
Non-controlling Interests 95 74 190 173
----------------------------------------------------------------------------
Net Earnings for the Period $ 1,761 $ 174 $ 1,557 $ 166
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss) per
Subordinate Voting Share of
Onex Corporation
Basic and Diluted:
Continuing operations $ 0.15 $ 0.71 $ (2.71) $ (0.22)
Discontinued operations 13.94 0.12 14.27 0.16
----------------------------------------------------------------------------
Net Earnings (Loss) for the
Period $ 14.09 $ 0.83 $ 11.56 $ (0.06)
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) Six months ended June 30
(in millions of U.S. dollars) 2011 2010
----------------------------------------------------------------------------
Operating Activities
Earnings (loss) for the period from continuing
operations $ (164) $ 108
Adjustments to earnings (loss) from continuing
operations:
Provision for income taxes 73 143
Interest income (17) (8)
Interest expense of operating companies 239 171
----------------------------------------------------------------------------
Net earnings before interest and provision for
income taxes 131 414
Cash taxes paid (78) (94)
Items not affecting cash and cash equivalents:
Amortization of property, plant and equipment 212 199
Amortization of intangible assets and deferred
charges 145 143
Amortization of deferred warranty costs 30 41
Unrealized increase in value of investments in
associates at fair value, net (400) (239)
Stock-based compensation expense 126 66
Limited Partners' Interests 615 307
Change in provisions 35 24
Other (21) (27)
----------------------------------------------------------------------------
795 834
Changes in non-cash working capital items:
Accounts receivable (201) (133)
Inventories (184) (274)
Other current assets (6) (51)
Accounts payable, accrued liabilities and
other current liabilities (507) (160)
----------------------------------------------------------------------------
Decrease in cash and cash equivalents due to
changes in working capital items (898) (618)
Increase in other operating activities 1 18
Increase (decrease) in warranty reserves and
premiums 18 (63)
Cash flows from operating activities (discontinued
operations) 100 194
----------------------------------------------------------------------------
16 365
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 447 916
Repayment of long-term debt (175) (1,146)
Cash interest paid (186) (150)
Cash dividends paid (7) (6)
Repurchase of share capital of Onex Corporation (12) (35)
Repurchase of share capital of operating companies (28) (16)
Financing provided by Limited Partners 156 103
Issuance of share capital by operating companies 148 9
Proceeds from sales of operating investments under
continuing control 268 -
Distributions paid to non-controlling interests
and Limited Partners (1,172) (28)
Change in restricted cash for distribution to
Limited Partners (735) -
Decrease due to other financing activities (28) (7)
Cash flows used for investing activities
(discontinued operations) (42) (96)
----------------------------------------------------------------------------
(1,366) (456)
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating companies, net of cash
and cash equivalents in acquired companies of $44
(2010 - $23) (268) (53)
Purchase of property, plant and equipment (237) (325)
Cash interest and dividends received 10 4
Decrease due to other investing activities (88) (23)
Cash flows from (used for) investing activities
(discontinued operations) 1,992 (80)
----------------------------------------------------------------------------
1,409 (477)
----------------------------------------------------------------------------
Increase (decrease) in Cash and Cash Equivalents
for the Period 59 (568)
Increase (decrease) in cash and cash equivalents
due to changes in foreign exchange rates 16 (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 2,607 2,444
Cash and cash equivalents held by discontinued
operations - 453
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing
Operations $ 2,607 $ 1,991
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Electronics
Three months ended Manufacturing Financial
June 30, 2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,830 $ 1,465 $ 1,254 $ 298
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (1,685) (1,300) (862) (145)
Operating expenses (59) (43) (231) (115)
Interest income - 1 1 -
Amortization of
property, plant
and equipment (16) (27) (31) (1)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 70 96 131 37
Amortization of
intangible assets
and deferred
charges (3) (8) (43) (5)
Interest expense of
operating
companies (1) (22) (52) (1)
Unrealized increase
in value of
investments in
associates at fair
value, net - - - -
Foreign exchange
gains (loss) (1) (1) - -
Stock-based
compensation
expense (10) (3) (2) -
Other items (2) 1 (2) 3
Limited Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 53 63 32 34
Recovery of
(provision for)
income taxes (8) (20) (17) (15)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 45 43 15 19
Earnings from
discontinued
operations(b) - - 570 -
----------------------------------------------------------------------------
Net earnings (loss) $ 45 $ 43 $ 585 $ 19
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ 3 $ 3 $ 571 $ 18
----------------------------------------------------------------------------
Non-controlling
interests 42 40 14 1
----------------------------------------------------------------------------
Net earnings (loss) $ 45 $ 43 $ 585 $ 19
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Customer
Three months ended Care Metal Consolidated
June 30, 2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 350 $ 671 $ 361 $ 6,229
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (229) (624) (209) (5,054)
Operating expenses (91) (13) (144) (696)
Interest income - - 4 6
Amortization of
property, plant
and equipment (7) (12) (12) (106)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 23 22 - 379
Amortization of
intangible assets
and deferred
charges (6) (3) (5) (73)
Interest expense of
operating companies (21) (8) (7) (112)
Unrealized increase
in value of
investments in
associates at fair
value, net - - 230 230
Foreign exchange
gains (loss) - - 2 -
Stock-based
compensation
expense - (2) (51) (68)
Other items (3) - (2) (5)
Limited Partners'
Interests - - (220) (220)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (7) 9 (53) 131
Recovery of
(provision for)
income taxes (3) (6) 43 (26)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (10) 3 (10) 105
Earnings from
discontinued
operations(b) - - 1,086 1,656
----------------------------------------------------------------------------
Net earnings (loss) $ (10) $ 3 $ 1,076 $ 1,761
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ (7) $ 1 $ 1,077 $ 1,666
----------------------------------------------------------------------------
Non-controlling
interests (3) 2 (1) 95
----------------------------------------------------------------------------
Net earnings (loss) $ (10) $ 3 $ 1,076 $ 1,761
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky
(sold in June 2011), 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).
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Electronics
Three months ended Manufacturing Financial
June 30, 2010 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,586 $ 1,046 $ 818 $ 287
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (1,456) (853) (515) (143)
Operating expenses (54) (44) (145) (100)
Interest income - - - -
Amortization of
property, plant
and equipment (18) (22) (26) (1)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 58 127 132 43
Amortization of
intangible assets
and deferred
charges (4) (8) (44) (6)
Interest expense of
operating companies (1) (14) (34) (1)
Unrealized increase
(decrease) in
value of
investments in
associates at fair
value, net - - (14) -
Foreign exchange
gains (loss) 2 2 (5) (1)
Stock-based
compensation
recovery (expense) (10) (19) - -
Other items (8) - (7) 12
Limited Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 37 88 28 47
Provision for
income taxes (24) (26) (18) (18)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 13 62 10 29
Earnings from
discontinued
operations(b) - - 25 -
----------------------------------------------------------------------------
Net earnings (loss) $ 13 $ 62 $ 35 $ 29
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ 1 $ 14 $ 13 $ 27
----------------------------------------------------------------------------
Non-controlling
interests 12 48 22 2
----------------------------------------------------------------------------
Net earnings (loss) $ 13 $ 62 $ 35 $ 29
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Customer
Three months ended Care Metal Consolidated
June 30, 2010 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 318 $ 628 $ 211 $ 4,894
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (206) (578) (109) (3,860)
Operating expenses (90) (16) (96) (545)
Interest income - - 2 2
Amortization of
property, plant
and equipment (10) (12) (8) (97)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 12 22 - 394
Amortization of
intangible assets
and deferred
charges (7) (3) (1) (73)
Interest expense of
operating companies (21) (10) (3) (84)
Unrealized increase
(decrease) in
value of
investments in
associates at fair
value, net - - 238 224
Foreign exchange
gains (loss) (8) - (12) (22)
Stock-based
compensation
recovery (expense) - - 37 8
Other items (3) - 11 5
Limited Partners'
Interests - - (212) (212)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (27) 9 58 $ 240
Provision for
income taxes (5) (2) (4) (97)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (32) 7 54 143
Earnings from
discontinued
operations(b) - - 6 31
----------------------------------------------------------------------------
Net earnings (loss) $ (32) $ 7 $ 60 $ 174
----------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ (21) $ 7 $ 59 $ 100
----------------------------------------------------------------------------
Non-controlling
interests (11) - 1 74
----------------------------------------------------------------------------
Net earnings (loss) $ (32) $ 7 $ 60 $ 174
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky
(sold in June 2011), 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 SIX MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Electronics
Six months ended Manufacturing Financial
June 30, 2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 3,630 $ 2,515 $ 2,454 $ 597
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (3,349) (2,190) (1,696) (286)
Operating expenses (118) (85) (462) (220)
Interest income - 1 2 -
Amortization of
property, plant
and equipment (31) (53) (63) (2)
----------------------------------------------------------------------------
Earnings (Loss)
Before the
Undernoted Items 132 188 235 89
Amortization of
intangible assets
and deferred
charges (7) (15) (85) (9)
Interest expense of
operating companies (3) (43) (121) (2)
Unrealized increase
in value of
investments in
associates at fair
value, net - - - -
Foreign exchange
gains (loss) (1) (1) 2 -
Stock-based
compensation
expense (27) (6) (3) -
Other items (8) 2 (11) 5
Limited Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 86 125 17 83
Recovery of
(provision for)
income taxes (11) (36) (26) (27)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 75 89 (9) 56
Earnings from
discontinued
operations(b) - - 606 -
----------------------------------------------------------------------------
Net earnings (loss) $ 75 $ 89 $ 597 $ 56
----------------------------------------------------------------------------
Total assets $ 3,021 $ 4,767 $ 4,346 $ 5,020
----------------------------------------------------------------------------
Long-term debt(c) $ 45 $ 1,147 $ 2,703 $ 204
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ 6 $ 14 $ 552 $ 51
----------------------------------------------------------------------------
Non-controlling
interests 69 75 45 5
----------------------------------------------------------------------------
Net earnings (loss) $ 75 $ 89 $ 597 $ 56
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Customer
Six months ended Care Metal Consolidated
June 30, 2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 693 $ 1,335 $ 652 $ 11,876
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (453) (1,236) (372) (9,582)
Operating expenses (183) (29) (273) (1,370)
Interest income - - 14 17
Amortization of
property, plant
and equipment (15) (24) (24) (212)
----------------------------------------------------------------------------
Earnings (Loss)
Before the
Undernoted Items 42 46 (3) 729
Amortization of
intangible assets
and deferred
charges (12) (6) (11) (145)
Interest expense of
operating companies (40) (17) (13) (239)
Unrealized increase
in value of
investments in
associates at fair
value, net - - 400 400
Foreign exchange
gains (loss) 3 - 6 9
Stock-based
compensation
expense - (2) (118) (156)
Other items (10) - (52) (74)
Limited Partners'
Interests - - (615) (615)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (17) 21 (406) (91)
Recovery of
(provision for)
income taxes - (10) 37 (73)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (17) 11 (369) (164)
Earnings from
discontinued
operations(b) - - 1,115 1,721
----------------------------------------------------------------------------
Net earnings (loss) $ (17) $ 11 $ 746 $ 1,557
----------------------------------------------------------------------------
Total assets $ 675 $ 1,058 $ 9,046 $ 27,933
----------------------------------------------------------------------------
Long-term debt(c) $ 637 $ 375 $ 1,399 $ 6,510
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
----------------------------------------------------------------------------
Equity holders of
Onex Corporation $ (12) $ 9 $ 747 $ 1,367
----------------------------------------------------------------------------
Non-controlling
interests (5) 2 (1) 190
----------------------------------------------------------------------------
Net earnings (loss) $ (17) $ 11 $ 746 $ 1,557
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky (sold
in June 2011), 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 SIX MONTHS ENDED JUNE 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Electronics
Six months ended Manufacturing Financial
June 30, 2010 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 3,104 $ 2,089 $ 1,570 $ 598
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (2,847) (1,716) (993) (285)
Operating expenses (105) (87) (295) (221)
Interest income - - 1 -
Amortization of
property, plant
and equipment (37) (44) (58) (2)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 115 242 225 90
Amortization of
intangible assets
and deferred
charges (8) (14) (84) (12)
Interest expense of
operating companies (14) (28) (61) (2)
Unrealized increase
(decrease) in
value of
investments in
associates at fair
value, net - - (7) -
Foreign exchange
gains (loss) 2 (5) (8) (1)
Stock-based
compensation
expense (19) (22) (1) -
Other items (14) - (10) 15
Limited Partners'
Interests - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 62 173 54 90
Provision for
income taxes (20) (46) (25) (35)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 42 127 29 55
Earnings from
discontinued
operations(b) - - 56 -
----------------------------------------------------------------------------
Net earnings (loss) $ 42 $ 127 $ 85 $ 55
----------------------------------------------------------------------------
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 $ 4 $ 29 $ 36 $ 51
----------------------------------------------------------------------------
Non-controlling
interests 38 98 49 4
----------------------------------------------------------------------------
Net earnings (loss) $ 42 $ 127 $ 85 $ 55
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2010
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Customer
Six months ended Care Metal Consolidated
June 30, 2010 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 676 $ 1,099 $ 408 $ 9,544
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (433) (1,011) (209) (7,494)
Operating expenses (188) (28) (192) (1,116)
Interest income - - 7 8
Amortization of
property, plant
and equipment (19) (25) (14) (199)
----------------------------------------------------------------------------
Earnings Before the
Undernoted Items 36 35 - 743
Amortization of
intangible assets
and deferred
charges (14) (6) (5) (143)
Interest expense of
operating companies (39) (22) (5) (171)
Unrealized increase
(decrease) in
value of
investments in
associates at fair
value, net - - 246 239
Foreign exchange
gains (loss) (6) - (3) (21)
Stock-based
compensation
expense - - (29) (71)
Other items (11) - 2 (18)
Limited Partners'
Interests - - (307) (307)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (34) 7 (101) 251
Provision for
income taxes (8) (3) (6) (143)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (42) 4 (107) 108
Earnings from
discontinued
operations(b) - - 2 58
----------------------------------------------------------------------------
Net earnings (loss) $ (42) $ 4 $ (105) $ 166
----------------------------------------------------------------------------
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 $ (28) $ 5 $ (104) $ (7)
----------------------------------------------------------------------------
Non-controlling
interests (14) (1) (1) 173
----------------------------------------------------------------------------
Net earnings (loss) $ (42) $ 4 $ (105) $ 166
----------------------------------------------------------------------------
(a) Includes Allison Transmission, Hawker Beechcraft, Husky
(sold in June 2011), 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:
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com