TORONTO, ONTARIO--(Marketwire - Feb. 22, 2013) -
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2012 and an update on matters following year-end.
Highlights
Acquiring and Building Businesses
"2012 was a busy year for Onex with the acquisition of five businesses," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "These investments reflect years of effort evaluating industry sectors and developing relationships with management teams."
USI, the ninth largest insurance broker in the United States, offers a broad range of property and casualty, and employee benefits insurance products to middle-market businesses. Onex' acquisition follows seven years researching the insurance brokerage sector. USI has a unique fully-integrated operating model and a proven add-on acquisition strategy, completing three acquisitions since the closing of Onex' investment. Onex Partners III invested $510 million, of which Onex' share was $128 million as a limited partner in the Fund. Including an additional $126 million co-investment, Onex' initial investment was $254 million. A process is underway to offer a portion of the co-investment to third-party limited partners and employees of USI.
BBAM is a leading manager of leased commercial aircraft. Over its 23-year history, the company has provided fleet and financing solutions to over 200 airline customers in more than 50 countries. BBAM provides asset management services to leasing companies, aviation investors and financial institutions covering more than 450 aircraft valued in excess of $13 billion. The BBAM investment is a proprietary opportunity that resulted from several years evaluating the aircraft leasing sector. Onex Partners III acquired a 50% interest in BBAM for $165 million, of which Onex' share was $42 million. In connection with this transaction, Onex Partners III also invested $20 million in newly issued shares of FLY Leasing Limited ("FLY") (NYSE:FLY), a global lessor of commercial jet aircraft managed by BBAM. Onex' share of the investment in FLY was $5 million.
With no debt and $1.1 billion of cash and near-cash items, Onex is in a very strong financial position. Onex also has $1.3 billion of undrawn, committed capital from limited partners in Onex Partners III and ONCAP III. Combined, we have the resources to pursue just about any attractive opportunity.
In 2012, Onex' operating companies paid down approximately $1.8 billion of debt and distributed approximately $1.6 billion, including a $1.2 billion distribution from Tomkins following the sale of several non-core assets. Our businesses also made capital expenditures and add-on acquisitions of approximately $1.1 billion, including JELD-WEN's acquisition of CraftMaster, the world's third-largest integrated manufacturer of interior doors and door facings.
Onex' interest in Onex Partners' and ONCAP's private companies grew by 17% and 23%, respectively, in 2012. Overall, Onex' proprietary capital, including $1.1 billion of cash and near-cash items, grew by 12% on a per share basis during the year.
By transforming good businesses into industry leaders, Onex has generated a 28-year gross IRR of 28% and an average multiple of 2.9 times invested capital from realized, substantially realized and publicly traded investments. At Onex, we all share in the success and failure of our investments. At December 31, 2012, the value of the Onex team's investment in Onex' shares and its businesses was approximately $1.7 billion.
Managing and Growing Third-Party Capital
Onex earns recurring management fees and/or carried interest on $8.8 billion of third-party assets under management. In 2012, Onex Partners, ONCAP and Onex Credit Partners earned a total of $113 million in management and other fees. Onex also received $3 million of carried interest as a result of the realization of Center for Diagnostic Imaging. Combined fees and carried interest received offset ongoing operating expenses in 2012.
At December 31, 2012, the value of Onex' unrealized carried interest was approximately $50 million based on the traded market values of Onex Partners' public companies and a further $90 million based on the year-end valuations of the private businesses. Onex' share of the total unrealized carried interest grew by $47 million in 2012. The amount of carried interest ultimately realized by Onex depends on the overall performance of each Fund.
With Onex Partners III more than 75% invested, Onex is in a position to fundraise for Onex Partners IV.
Onex Credit Partners completed two CLO offerings in 2012, raising approximately $840 million, including $58 million from Onex. These CLOs increased Onex Credit Partners' third-party capital under management to $1.8 billion. In the last few years, the market for CLOs has significantly consolidated and favours well-capitalized, diversified sponsors. As market conditions permit, we expect Onex Credit Partners to launch additional CLOs, which would represent an additional source of recurring management fees.
Creating Value for Shareholders
Over time, we hope that the value of Onex' shares reflects both growth in the value of our assets and the intrinsic value of our asset management capabilities. At December 31, 2012 Onex' Subordinate Voting Shares closed at C$41.87, a 26% increase from December 31, 2011. This compares to a 13% increase in the S&P 500 and a 4% increase in the S&P/TSX Composite Index.
The Company paid a fourth-quarter dividend of C$0.0275 per Subordinate Voting Share on January 31, 2013 to shareholders of record on January 10, 2013.
In 2012, Onex repurchased 627,061 Subordinate Voting Shares under its Normal Course Issuer Bids for a total cost of C$24 million or an average cost per share of C$38.59. In January 2013, Onex repurchased 545,400 shares for a total cost of C$23 million or an average cost per share of C$42.51.
Consolidated Results
Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of its publicly traded and privately held operating companies and varying business cycles at its operating companies.
On a consolidated basis for the fourth quarter, revenues increased 2% to $6.9 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $77 million compared to a loss of $113 million in the fourth quarter of 2011. Cash from operations was $784 million in the fourth quarter of 2012 compared to $707 million in 2011.
On a consolidated basis for the full year ended December 31, 2012, revenues increased 11% to $27.4 billion. The acquisitions completed in 2011, including JELD-WEN, contributed to this year-over-year revenue increase. Net earnings for the year were $39 million compared to $1.6 billion for 2011, which included $1.7 billion of earnings relating to the sales of Husky International and Emergency Medical Services Corporation. Cash flow from operations was $2.0 billion in 2012 compared to $1.2 billion in the prior year.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the full year ended December 31, 2012 and 2011 as prepared under International Financial Reporting Standards. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. Also attached are the "How We Are Invested" schedule, which details Onex' $5.0 billion of proprietary capital and provides private company performance information, and the Schedule of Fees and Expenses.
Webcast
Onex management will host a conference call to review Onex' fiscal 2012 results on Friday, February 22 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.
About Onex
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $15 billion of assets under management, including $5 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.
Onex' businesses have assets of $43 billion, generate annual revenues of $37 billion and employ approximately 250,000 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 | |||||
Unless otherwise noted, all amounts are in millions of U.S. dollars except per share data. | |||||
Proprietary Capital | |||||
As at December 31 | 2012 | 2011 | |||
Private Equity | |||||
Onex Partners | |||||
Private Companies(1),(2) | $ | 1,862 | $ | 1,847 | |
Public Companies(2),(3) | 704 | 235 | |||
Unrealized Carried Interest on Onex Partners Investments(4) | 140 | 96 | |||
ONCAP(5) | 409 | 319 | |||
Direct Investments | |||||
Private Companies(6) | 148 | 204 | |||
Public Companies(3) | 145 | 130 | |||
3,408 | 2,831 | ||||
Onex Real Estate Partners(7) | 192 | 180 | |||
Onex Credit Partners(8) | 171 | 100 | |||
363 | 280 | ||||
Other Investments | 108 | 81 | |||
Cash and Near-Cash(9) | 1,141 | 1,302 | |||
Onex Corporation Debt | - | - | |||
$ | 5,020 | $ | 4,494 | ||
Proprietary Capital per Share (December 31, 2012 - C$41.21; December 31, 2011 - C$37.47)(10) | $ | 41.42 | $ | 36.85 | |
Public Companies | ||||||||
As at December 31, 2012 | Shares Subject to Carried Interest (millions) | Shares Held by Onex (millions) | Closing Price per Share(11) | Market Value of Onex' Investment | ||||
Onex Partners | ||||||||
Skilled Healthcare Group(12) | 10.7 | 3.5 | $ | 6.37 | $ | 22 | ||
Spirit AeroSystems(12) | 11.9 | 6.5 | $ | 16.97 | 110 | |||
TMS International(12) | 13.2 | 9.3 | $ | 12.52 | 116 | |||
Allison Transmission(2),(12) | 33.5 | 23.4 | $ | 20.42 | 479 | |||
727 | ||||||||
Estimated Management Investment Plan Liability | (23 | ) | ||||||
704 | ||||||||
Direct Investments - Celestica | - | 17.8(13) | $ | 8.15 | 145 | |||
$ | 849 | |||||||
Significant Private Companies | |||||||||||||
As at December 31, 2012 | Onex' and its Limi- ted Part- ners' Owner- ship | LTM EBITDA(14) | Net Debt | Cumu- lative Distri- butions | Onex' Eco- nomic Owner- ship | Orig- inal Cost of Onex' Invest- ment | |||||||
Onex Partners | |||||||||||||
The Warranty Group | 91 | % | $ | 111(15) | $ | 249(15) | $ | 338 | 29 | % | $ | 154 | |
Carestream Health | 93 | % | 429 | 1,509 | 561 | 37 | % | 186 | |||||
RSI Home Products | 50 | % | n/a | n/a | n/a | 20 | % | 126 | |||||
Tropicana Las Vegas | 83 | % | (10) | 33 | - | 18 | % | 70 | |||||
Tomkins | 56 | % | 512(16) | 1,482 | 1,180 | 14 | % | 315 | |||||
ResCare | 98 | % | 138 | 341 | - | 20 | % | 41 | |||||
JELD-WEN | 64(17) | % | 188(18) | 540(18) | - | 16(17) | % | 213(19) | |||||
SGS International | 94 | % | 104(20) | 592 | - | 24 | % | 66 | |||||
USI | 93 | % | 255(20) | 1,633 | - | 37 | % | 254(21) | |||||
BBAM | 50 | % | 73 | - | - | 13 | % | 47(22) | |||||
KraussMaffei | 97 | % | EUR | 100 | EUR | 235 | - | 25 | % | 90 | |||
1,562 | |||||||||||||
Direct Investments - Sitel Worldwide | 70 | % | $ | 125 | $ | 725 | $ | - | 70 | % | 251 | ||
$ | 1,813 | ||||||||||||
Notes to Tables | |
(1) | Based on the US$ fair value of the investments in Onex Partners' financial statements net of the estimated Management Investment Plan ("MIP") liability on these investments of $39 million (2011 − $33 million). CDI, which was sold in July 2012, was included in private companies of Onex Partners at December 31, 2011. |
(2) | In March 2012, Allison Transmission completed an initial public offering of approximately 30.0 million shares of common stock (NYSE:ALSN), including the over-allotment option, priced at $23.00 per share. At December 31, 2011, Allison Transmission was included in private companies of Onex Partners, whereas it is included in public companies at December 31, 2012. |
(3) | Based on the closing market values and net of the estimated MIP liability on these investments. |
(4) | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
(5) | Based on the C$ fair value of the investments in ONCAP's financial statements net of the estimated MIP liability on these investments of $25 million (2011 − $13 million) and a US$/C$ exchange rate of 0.9949 (2011 - 1.0170). |
(6) | Based on the fair value. |
(7) | Based on the fair value of Onex Real Estate Partners' investments. |
(8) | Based on the market values of investments in Onex Credit Partners' funds and Onex Credit Partners' Collateralized Loan Obligations. Onex Credit Partners' Collateralized Loan Obligations were established in 2012. Excludes $328 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. |
(9) | Includes $328 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund. |
(10) | Calculated on a diluted basis. |
(11) | Closing prices on December 31, 2012. |
(12) | Excludes Onex' potential participation in the carried interest and includes shares related to the MIP. |
(13) | Excludes shares held in connection with the MIP. |
(14) | EBITDA is a non-GAAP measure and is based on the local GAAP of the individual operating companies. These adjustments may include non-cash costs of stock-based compensation and retention plans, transition and restructuring expenses including severance payments, the impact of derivative instruments that no longer qualify for hedge accounting, the impacts of purchase accounting and other similar amounts. |
(15) | Amount presented for The Warranty Group is net earnings rather than EBITDA and total debt rather than net debt. |
(16) | LTM EBITDA excludes EBITDA from businesses divested as of December 31, 2012. |
(17) | Onex' and its limited partners' investment is in convertible preferred shares. The ownership percentage is presented on an as-converted basis. |
(18) | LTM EBITDA and net debt are presented for JELD-WEN Holding, inc. Net debt excludes $128 million of convertible notes, including accrued interest, held by Onex, Onex Partners III, Onex management, certain limited partners and others. |
(19) | Net of $83 million of the amount originally invested in JELD-WEN that was sold by Onex to certain limited partners and others as a co-investment in February 2012 and $14 million return of capital on the convertible promissory notes to date. |
(20) | LTM EBITDA for SGS International and USI are presented on a pro-forma basis to reflect the impact of acquired businesses. |
(21) | Onex' investment in USI includes $126 million as a co-investment. |
(22) | Included in Onex' cost is $5 million that was invested in FLY Leasing Limited (NYSE:FLY) in conjunction with the investment in BBAM. |
Schedule of Fees and Expenses | ||||||
Year ended December 31, | ||||||
(USD Millions) | 2012 | 2011 | ||||
Revenue Items | ||||||
Management and Advisory Fees1 | ||||||
Base Management Fees | $ | 108 | $ | 110 | ||
Transaction Fees, Net | 5 | - | ||||
Total Management and Advisory Fees | 113 | 110 | ||||
Carried Interest and Performance Fees Received2 | 6 | 72 | ||||
Interest and Other Treasury Income3 | 39 | 8 | ||||
Total | 158 | 190 | ||||
Expense Items4 | ||||||
Compensation | ||||||
Base Compensation (incl. benefits) | 29 | 29 | ||||
Variable Compensation | 67 | 88 | ||||
96 | 117 | |||||
Other Expense Items, Net | 21 | 33 | ||||
Total | 117 | 150 | ||||
Net Amount | $ | 41 | $ | 40 | ||
(1) | The management fees include those from the third-party investors in the Onex Partners and ONCAP private equity funds, those earned by Onex Credit Partners manager and Onex' retained portion of the management fees from operating companies. | |||||
(2) | Carried interest and performance fees received are on a cash received basis. | |||||
(3) | Interest and other treasury income includes the returns on Onex' investment as a limited partner in Onex Credit Partners Funds and the interest earned on Onex' cash balance. | |||||
(4) | Expenses include those of the Onex corporate office, ONCAP, Onex Credit Partners and Onex Real Estate Partners. There is no allocation of the expenses to the management of Onex' $5.0 billion of proprietary capital. The expenses exclude stock-based compensation. | |||||
Onex Corporation |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) | As at | As at | As at | |||
(in millions of U.S. dollars) | December 31, 2012 | December 31, 2011 | January 1, 2011 | |||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 2,656 | $ | 2,448 | $ | 2,532 |
Short-term investments | 730 | 749 | 715 | |||
Accounts receivable | 3,858 | 3,272 | 3,430 | |||
Inventories | 4,519 | 4,428 | 4,004 | |||
Other current assets | 1,443 | 1,154 | 1,463 | |||
13,206 | 12,051 | 12,144 | ||||
Property, plant and equipment | 5,495 | 5,102 | 4,056 | |||
Long-term investments | 6,424 | 5,415 | 4,864 | |||
Other non-current assets | 1,986 | 1,776 | 1,850 | |||
Intangible assets | 4,833 | 2,599 | 2,505 | |||
Goodwill | 4,358 | 2,434 | 2,634 | |||
$ | 36,302 | $ | 29,377 | $ | 28,053 | |
Liabilities and Equity | ||||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | $ | 4,549 | $ | 3,893 | $ | 3,964 |
Current portion of provisions | 347 | 263 | 257 | |||
Other current liabilities | 1,340 | 909 | 1,225 | |||
Current portion of long-term debt of operating companies, without recourse to Onex Corporation | |
286 |
|
482 |
|
243 |
Current portion of warranty reserves and unearned premiums | 1,366 | 1,400 | 1,314 | |||
7,888 | 6,947 | 7,003 | ||||
Non-current portion of provisions | 264 | 180 | 284 | |||
Long-term debt of operating companies, without recourse to Onex Corporation | 10,184 | 6,479 | 6,346 | |||
Non-current portion of warranty reserves and unearned premiums | 1,774 | 1,727 | 1,780 | |||
Other non-current liabilities | 2,860 | 2,376 | 1,964 | |||
Deferred income taxes | 1,683 | 1,059 | 936 | |||
Limited Partners' Interests | 6,208 | 4,980 | 5,650 | |||
30,861 | 23,748 | 23,963 | ||||
Equity | ||||||
Share capital | 358 | 360 | 373 | |||
Non-controlling interests | 3,816 | 3,857 | 3,633 | |||
Retained earnings and accumulated other comprehensive earnings | 1,267 | 1,412 | 84 | |||
5,441 | 5,629 | 4,090 | ||||
$ | 36,302 | $ | 29,377 | $ | 28,053 |
Onex Corporation |
CONSOLIDATED STATEMENTS OF EARNINGS |
Year ended December 31 | |||||||
(in millions of U.S. dollars except per share data) | 2012 | 2011 | |||||
Revenues | $ | 27,443 | $ | 24,642 | |||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | |
(22,218 |
) |
|
(19,725 |
) |
|
Operating expenses | (3,313 | ) | (2,924 | ) | |||
Interest income | 60 | 32 | |||||
Amortization of property, plant and equipment | (595 | ) | (462 | ) | |||
Amortization of intangible assets and deferred charges | (330 | ) | (311 | ) | |||
Interest expense of operating companies | (553 | ) | (488 | ) | |||
Increase in value of investments in joint ventures and associates at fair value, net | 863 | 501 | |||||
Stock-based compensation expense | (241 | ) | (133 | ) | |||
Other gains | 59 | − | |||||
Other items | (45 | ) | (160 | ) | |||
Impairment of goodwill, intangible assets and long-lived assets, net | (65 | ) | (197 | ) | |||
Limited Partners' Interests charge | (929 | ) | (627 | ) | |||
Earnings before income taxes and discontinued operations | 136 | 148 | |||||
Provision for income taxes | (97 | ) | (236 | ) | |||
Earnings (loss) from continuing operations | 39 | (88 | ) | ||||
Earnings from discontinued operations | - | 1,715 | |||||
Net Earnings for the Year | $ | 39 | $ | 1,627 | |||
Earnings (Loss) from Continuing Operations attributable to: | |||||||
Equity holders of Onex Corporation | $ | (121 | ) | $ | (356 | ) | |
Non-controlling Interests | 160 | 268 | |||||
Earnings (Loss) from Continuing Operations for the Year | $ | 39 | $ | (88 | ) | ||
Net Earnings (Loss) attributable to: | |||||||
Equity holders of Onex Corporation | $ | (121 | ) | $ | 1,326 | ||
Non-controlling Interests | 160 | 301 | |||||
Net Earnings for the Year | $ | 39 | $ | 1,627 | |||
Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||
Basic and Diluted: | |||||||
Continuing operations | $ | (1.05 | ) | $ | (3.03 | ) | |
Discontinued operations | - | 14.33 | |||||
Net Earnings (Loss) for the Year | $ | (1.05 | ) | $ | 11.30 |
Onex Corporation |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Year ended December 31 (in millions of U.S. dollars) | 2012 | 2011 | |||||
Operating Activities | |||||||
Earnings (loss) for the year from continuing operations | $ | 39 | $ | (88 | ) | ||
Adjustments to earnings (loss) from continuing operations: | |||||||
Provision for income taxes | 97 | 236 | |||||
Interest income | (60 | ) | (32 | ) | |||
Interest expense of operating companies | 553 | 488 | |||||
Net earnings before interest and provision for income taxes | 629 | 604 | |||||
Cash taxes paid | (302 | ) | (161 | ) | |||
Items not affecting cash and cash equivalents: | |||||||
Amortization of property, plant and equipment | 595 | 462 | |||||
Amortization of intangible assets and deferred charges | 330 | 311 | |||||
Amortization of deferred warranty costs | 32 | 50 | |||||
Increase in value of investments in joint ventures and associates at fair value, net | (863 | ) | (501 | ) | |||
Stock-based compensation expense | 213 | 62 | |||||
Other gains | (59 | ) | − | ||||
Impairment of goodwill, intangible assets and long-lived assets | 65 | 197 | |||||
Limited Partners' Interests charge | 929 | 627 | |||||
Change in provisions | 93 | 89 | |||||
Other | 69 | (6 | ) | ||||
1,731 | 1,734 | ||||||
Changes in non-cash working capital items: | |||||||
Accounts receivable | (23 | ) | 1 | ||||
Inventories | 377 | (162 | ) | ||||
Other current assets | 22 | 3 | |||||
Accounts payable, accrued liabilities and other current liabilities | 15 | (457 | ) | ||||
Increase (decrease) in cash and cash equivalents due to changes in working capital items | 391 | (615 | ) | ||||
Decrease in other operating activities | (101 | ) | (58 | ) | |||
Increase in warranty reserves and premiums | 22 | 27 | |||||
Cash flows from operating activities of discontinued operations | - | 100 | |||||
2,043 | 1,188 | ||||||
Financing Activities | |||||||
Issuance of long-term debt | 2,632 | 594 | |||||
Repayment of long-term debt | (1,882 | ) | (460 | ) | |||
Cash interest paid | (476 | ) | (411 | ) | |||
Cash dividends paid | (12 | ) | (13 | ) | |||
Repurchase of share capital of Onex Corporation | (24 | ) | (105 | ) | |||
Repurchase of share capital of operating companies | (340 | ) | (149 | ) | |||
Financing provided by Limited Partners | 1,311 | 932 | |||||
Issuance of share capital by operating companies | 34 | 151 | |||||
Proceeds from sales of operating investments under continuing control | - | 268 | |||||
Distributions paid to non-controlling interests and Limited Partners | (982 | ) | (2,248 | ) | |||
Change in restricted cash for distribution to Limited Partners | (35 | ) | 272 | ||||
Decrease due to other financing activities | (51 | ) | (52 | ) | |||
Cash flows used for financing activities of discontinued operations | - | (42 | ) | ||||
175 | (1,263 | ) | |||||
Investing Activities | |||||||
Acquisition of operating companies, net of cash and cash equivalents in acquired companies of $275 (2011 - $191) | (1,393 | ) | (1,155 | ) | |||
Purchase of property, plant and equipment | (723 | ) | (646 | ) | |||
Proceeds from sale of investment in associates at fair value | 326 | − | |||||
Proceeds from sale of operating investment no longer controlled | 71 | - | |||||
Distributions received from investments in associates of Onex Partners | 676 | 38 | |||||
Purchase of investments in associates of Onex Partners | (165 | ) | - | ||||
Cash interest received | 19 | 45 | |||||
Net purchases of investments and securities | (787 | ) | (91 | ) | |||
Decrease due to other investing activities | (39 | ) | (233 | ) | |||
Cash flows from investing activities of discontinued operations | - | 2,030 | |||||
(2,015 | ) | (12 | ) | ||||
Increase (decrease) in Cash and Cash Equivalents for the Year | 203 | (87 | ) | ||||
Increase in cash due to changes in foreign exchange rates | 5 | 3 | |||||
Cash and cash equivalents, beginning of the year - continuing operations | 2,448 | 2,053 | |||||
Cash and cash equivalents, beginning of the year - discontinued operations | - | 479 | |||||
Cash and Cash Equivalents Held by Continuing Operations | $ | 2,656 | $ | 2,448 |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE YEAR ENDED DECEMBER 31, 2012 |
Electronics Manufacturing Services |
Aerostructures |
Healthcare |
Insurance Provider |
Customer Care Services |
Metal Services |
Building Products |
Other(a) |
Consolidated Total |
|||||||||||||||||||||||||||
Revenues | $ | 6,507 | $ | 5,404 | $ | 4,947 | $ | 1,205 | $ | 1,429 | $ | 2,526 | $ | 3,168 | $ | 2,257 | $ | 27,443 | |||||||||||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,988 | ) | (5,038 | ) | (3,401 | ) | (621 | ) | (920 | ) | (2,316 | ) | (2,556 | ) | (1,378 | ) | (22,218 | ) | |||||||||||||||||
Operating expenses | (226 | ) | (202 | ) | (885 | ) | (402 | ) | (368 | ) | (64 | ) | (448 | ) | (718 | ) | (3,313 | ) | |||||||||||||||||
Interest income | 1 | - | 3 | - | 1 | - | 3 | 52 | 60 | ||||||||||||||||||||||||||
Amortization of property, plant and equipment | (70 | ) | (130 | ) | (128 | ) | (4 | ) | (29 | ) | (57 | ) | (101 | ) | (76 | ) | (595 | ) | |||||||||||||||||
Amortization of intangible assets and deferred charges | (11 | ) | (29 | ) | (160 | ) | (15 | ) | (25 | ) | (12 | ) | (19 | ) | (59 | ) | (330 | ) | |||||||||||||||||
Interest expense of operating companies | (5 | ) | (83 | ) | (191 | ) | (5 | ) | (100 | ) | (39 | ) | (63 | ) | (67 | ) | (553 | ) | |||||||||||||||||
Increase in value of investments in joint ventures and associates at fair value, net | - | - | - | - | - | - | - | 863 | 863 | ||||||||||||||||||||||||||
Stock-based compensation expense | (36 | ) | (16 | ) | (11 | ) | (2 | ) | (1 | ) | (2 | ) | (17 | ) | (156 | ) | (241 | ) | |||||||||||||||||
Other gains | - | - | - | - | - | - | - | 59 | 59 | ||||||||||||||||||||||||||
Other items | (42 | ) | 150 | (42 | ) | 11 | (4 | ) | 1 | (33 | ) | (86 | ) | (45 | ) | ||||||||||||||||||||
Impairment of goodwill, intangible assets and long-lived assets | (18 | ) | (2 | ) | (17 | ) | (4 | ) | - | - | (7 | ) | (17 | ) | (65 | ) | |||||||||||||||||||
Limited Partners' Interests charge | - | - | - | - | - | - | - | (929 | ) | (929 | ) | ||||||||||||||||||||||||
Earnings (loss) before income taxes | 112 | 54 | 115 | 163 | (17 | ) | 37 | (73 | ) | (255 | ) | 136 | |||||||||||||||||||||||
Recovery of (provision for) income taxes | 6 | 8 | (44 | ) | (54 | ) | (3 | ) | (11 | ) | 12 | (11 | ) | (97 | ) | ||||||||||||||||||||
Net earnings (loss) for the year | $ | 118 | $ | 62 | $ | 71 | $ | 109 | $ | (20 | ) | $ | 26 | $ | (61 | ) | $ | (266 | ) | $ | 39 | ||||||||||||||
Total assets | $ | 2,659 | $ | 5,371 | $ | 3,971 | $ | 4,903 | $ | 632 | $ | 989 | $ | 2,626 | $ | 15,151 | $ | 36,302 | |||||||||||||||||
Long-term debt(b) | $ | 55 | $ | 1,133 | $ | 2,540 | $ | 258 | $ | 725 | $ | 306 | $ | 547 | $ | 4,906 | $ | 10,470 | |||||||||||||||||
Property, plant and equipment additions | $ | 98 | $ | 225 | $ | 120 | $ | 4 | $ | 23 | $ | 115 | $ | 91 | $ | 81 | $ | 757 | |||||||||||||||||
Intangible assets with indefinite life | $ | - | $ | - | $ | 256 | $ | 16 | $ | 36 | $ | - | $ | 259 | $ | 548 | $ | 1,115 | |||||||||||||||||
Goodwill additions from acquisitions | $ | 26 | $ | - | $ | 23 | $ | - | $ | - | $ | - | $ | - | $ | 1,983 | $ | 2,032 | |||||||||||||||||
Goodwill | $ | 60 | $ | 3 | $ | 852 | $ | 304 | $ | 118 | $ | 240 | $ | 113 | $ | 2,668 | $ | 4,358 | |||||||||||||||||
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Net earnings (loss) attributable to: | |||||||||||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 13 | $ | 10 | $ | 18 | $ | 62 | $ | (14 | ) | $ | 15 | $ | (43 | ) | $ | (182 | ) | $ | (121 | ) | |||||||||||||
Non-controlling interests | 105 | 52 | 53 | 47 | (6 | ) | 11 | (18 | ) | (84 | ) | 160 | |||||||||||||||||||||||
Net earnings (loss) for the year | $ | 118 | $ | 62 | $ | 71 | $ | 109 | $ | (20 | ) | $ | 26 | $ | (61 | ) | $ | (266 | ) | $ | 39 |
(a) | Includes Tropicana Las Vegas, SGS International, USI, KraussMaffei, ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2 and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments. | |
(b) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. | |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE YEAR ENDED DECEMBER 31, 2011 |
Electronics Manufacturing Services |
Aerostructures |
Healthcare |
Insurance Provider |
Customer Care Services |
Metal Services |
Building Products |
Other(a) |
Consolidated Total |
|||||||||||||||||||||||||||
Revenues | $ | 7,213 | $ | 4,864 | $ | 5,030 | $ | 1,184 | $ | 1,416 | $ | 2,661 | $ | 774 | $ | 1,500 | $ | 24,642 | |||||||||||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (6,645 | ) | (4,124 | ) | (3,446 | ) | (579 | ) | (921 | ) | (2,467 | ) | (660 | ) | (883 | ) | (19,725 | ) | |||||||||||||||||
Operating expenses | (234 | ) | (178 | ) | (918 | ) | (432 | ) | (377 | ) | (59 | ) | (118 | ) | (608 | ) | (2,924 | ) | |||||||||||||||||
Interest income | 1 | − | 4 | − | − | − | 1 | 26 | 32 | ||||||||||||||||||||||||||
Amortization of property, plant and equipment | (64 | ) | (107 | ) | (126 | ) | (5 | ) | (34 | ) | (47 | ) | (25 | ) | (54 | ) | (462 | ) | |||||||||||||||||
Amortization of intangible assets and deferred charges | (14 | ) | (41 | ) | (168 | ) | (18 | ) | (28 | ) | (13 | ) | (5 | ) | (24 | ) | (311 | ) | |||||||||||||||||
Interest expense of operating companies | (6 | ) | (77 | ) | (221 | ) | (4 | ) | (85 | ) | (34 | ) | (17 | ) | (44 | ) | (488 | ) | |||||||||||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | − | − | 501 | 501 | ||||||||||||||||||||||||||
Stock-based compensation expense | (44 | ) | (14 | ) | (9 | ) | − | − | (2 | ) | − | (64 | ) | (133 | ) | ||||||||||||||||||||
Other items | (8 | ) | 1 | (42 | ) | 9 | (20 | ) | 1 | (19 | ) | (82 | ) | (160 | ) | ||||||||||||||||||||
Impairment of goodwill, intangible assets and | |||||||||||||||||||||||||||||||||||
long-lived assets, net | − | − | (129 | ) | (40 | ) | − | − | (22 | ) | (6 | ) | (197 | ) | |||||||||||||||||||||
Limited Partners' Interests charge | − | − | − | − | − | − | − | (627 | ) | (627 | ) | ||||||||||||||||||||||||
Earnings (loss) before income taxes and discontinued operations | 199 | 324 | (25 | ) | 115 | (49 | ) | 40 | (91 | ) | (365 | ) | 148 | ||||||||||||||||||||||
Recovery of (provision for) income taxes | (4 | ) | (100 | ) | (87 | ) | (55 | ) | (9 | ) | (16 | ) | 2 | 33 | (236 | ) | |||||||||||||||||||
Earnings (loss) from continuing operations | 195 | 224 | (112 | ) | 60 | (58 | ) | 24 | (89 | ) | (332 | ) | (88 | ) | |||||||||||||||||||||
Earnings from discontinued operations(b) | − | − | 606 | − | − | − | − | 1,109 | 1,715 | ||||||||||||||||||||||||||
Net earnings (loss) for the year | $ | 195 | $ | 224 | $ | 494 | $ | 60 | $ | (58 | ) | $ | 24 | $ | (89 | ) | $ | 777 | $ | 1,627 | |||||||||||||||
Total assets | $ | 2,970 | $ | 4,978 | $ | 4,194 | $ | 4,808 | $ | 631 | $ | 1,045 | $ | 2,581 | $ | 8,170 | $ | 29,377 | |||||||||||||||||
Long-term debt(c) | $ | − | $ | 1,157 | $ | 2,670 | $ | 203 | $ | 652 | $ | 377 | $ | 481 | $ | 1,421 | $ | 6,961 | |||||||||||||||||
Property, plant and equipment additions | $ | 60 | $ | 275 | $ | 96 | $ | 3 | $ | 32 | $ | 75 | $ | 13 | $ | 120 | $ | 674 | |||||||||||||||||
Intangible assets with indefinite life | $ | − | $ | − | $ | 258 | $ | 16 | $ | 36 | $ | − | $ | 257 | $ | 376 | $ | 943 | |||||||||||||||||
Goodwill additions from acquisitions | $ | 34 | $ | − | $ | 41 | $ | − | $ | − | $ | − | $ | 119 | $ | 278 | $ | 472 | |||||||||||||||||
Goodwill | $ | 48 | $ | 3 | $ | 911 | $ | 304 | $ | 118 | $ | 239 | $ | 120 | $ | 691 | $ | 2,434 | |||||||||||||||||
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Net earnings (loss) attributable to: | |||||||||||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 17 | $ | 35 | $ | 512 | $ | 58 | $ | (39 | ) | $ | 17 | $ | (60 | ) | $ | 786 | $ | 1,326 | |||||||||||||||
Non-controlling interests | 178 | 189 | (18 | ) | 2 | (19 | ) | 7 | (29 | ) | (9 | ) | 301 | ||||||||||||||||||||||
Net earnings (loss) for the year | $ | 195 | $ | 224 | $ | 494 | $ | 60 | $ | (58 | ) | $ | 24 | $ | (89 | ) | $ | 777 | $ | 1,627 |
(a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments. | |
(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 financing charges. | |
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