TORONTO, ONTARIO--(Marketwired - May 10, 2013) -
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, 2013 and an update on matters following quarter-end.
Highlights
- Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 5% and 4%, respectively, in the first quarter. Overall, Onex' proprietary capital, including $1.25 billion of cash and near-cash items, grew by 3% on a per share basis to $42.81.
- Onex agreed to acquire Nielsen Expositions, one of the largest operators of business-to-business tradeshows in the U.S., in a transaction valued at $950 million.
- Onex Credit Partners completed its third collateralized loan obligation ("CLO") offering, raising approximately $512 million, including $24 million from Onex.
- Onex established Meridian Aviation, which will purchase aircraft to be leased to commercial airlines and managed by BBAM, an Onex Partners III investment.
- Onex completed the sale of its interest in RSI Home Products, resulting in a multiple of invested capital of 1.5 times.
- Onex' Board of Directors approved a 36% increase in the quarterly dividend to C$0.0375 per share.
- In the four months ended April 30, Onex repurchased 945,400 shares for approximately C$42 million at an average cost per share of C$44.41.
Acquiring and Building Businesses
"After investing $1.5 billion in five businesses in the fourth quarter of last year, we have been busy working with our management teams to execute our investment plans," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "The first couple of years following an acquisition are often the busiest for Onex. For each of the five businesses just acquired, we have a specific plan for improvement and growth."
"As we build value at our existing businesses, we also continue to look for new acquisition opportunities. Earlier this week, we announced the acquisition of Nielsen Expositions from its parent company," said Mr. Schwartz. "Corporate carve-outs are probably our favourite type of transaction, and we believe that this business will be in a stronger position to grow as a stand-alone company under our ownership."
Based in San Juan Capistrano, California, Nielsen Expositions produces more than 65 business-to-business tradeshows and conference events each year across nine diversified end-markets. Its strength is evidenced by its high renewal rates, long-standing exhibitor relationships, and the brand strength of the underlying shows. Onex Partners III will make an equity investment of approximately $350 million, of which Onex' share is approximately $85 million as a Limited Partner in the Fund. The transaction is anticipated to close in the second quarter, subject to customary closing conditions.
By transforming good businesses into industry leaders, Onex has generated a 29-year gross IRR of 28% and an average multiple of 2.8 times invested capital from realized, substantially realized and publicly traded investments.
At Onex, we all share in the success and failure of our operating companies through the team's significant investment in everything we buy. At March 31, 2013, the value of the team's investment in Onex' businesses and its shares was approximately $1.8 billion.
Managing and Growing Third-Party Capital
Onex earns recurring management fees and/or carried interest on $9.4 billion of third-party assets under management. In 2012, combined management fees and carried interest received offset ongoing operating expenses.
At March 31, 2013, the value of Onex' unrealized carried interest was approximately $58 million based on the traded market values of Onex Partners' public companies and a further $104 million based on the quarter-end valuations of the private businesses. The amount of carried interest ultimately realized by Onex depends on the overall performance of each Fund.
Including the pending acquisition of Nielsen Expositions, Onex Partners III will be more than 90% invested. We are in a position to begin fundraising for Onex Partners IV sometime this year.
We continue to grow our credit investing platform. In March, Onex Credit Partners completed its third CLO offering, raising $512 million, including $24 million from Onex. This increased Onex Credit Partners' third-party capital under management to $2.3 billion. As market conditions permit, we expect Onex Credit Partners to launch additional CLOs, which would represent an additional source of recurring management fees to Onex.
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 March 31, 2013, Onex' Subordinate Voting Shares closed at C$48.44, a 16% increase from December 31, 2012. This compares to a 10% increase in the S&P 500 and a 3% increase in the S&P/TSX Composite Index.
The Company paid a first-quarter dividend of C$0.0275 per Subordinate Voting Share on April 30, 2013 to shareholders of record on April 10, 2013. On May 9, Onex' Board of Directors approved a 36% increase in the quarterly dividend to C$0.0375 per Subordinate Voting Share, reflecting the Company's success and ongoing commitment to its shareholders. The increased dividend is payable on July 31, 2013 to shareholders of record on July 10, 2013.
In the first four months of 2013, Onex repurchased 945,400 Subordinate Voting Shares under its Normal Course Issuer Bids for a total cost of C$42 million or an average cost per share of C$44.41.
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 first quarter, revenues increased 6% to $7.2 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $271 million compared to net earnings of $173 million in the first quarter of 2012. Cash used in operations was $68 million in the first quarter of 2013 compared to $263 million of cash generated from operations in the same period of 2012.
Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended March 31, 2013 and 2012 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 is the "How We Are Invested" schedule, which details Onex' $5.1 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review Onex' first-quarter 2013 results on Friday, May 10 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 $16 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 $44 billion, generate annual revenues of $37 billion and employ approximately 243,000 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.
The securities sold in the third CLO offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under that Act. Any future CLO offerings will be made in similar private placement transactions subject to the same restrictions.
ONEX | |||||
How We Are Invested | |||||
Unless otherwise noted, all amounts are in millions of U.S. dollars except per share data. | |||||
Proprietary Capital | |||||
As at | March 31, 2013 | December 31, 2012 | |||
Private Equity | |||||
Onex Partners | |||||
Private Companies(1) | $ | 1,747 | $ | 1,862 | |
Public Companies(2) | 803 | 704 | |||
Unrealized Carried Interest on Onex Partners Investments(3) | 162 | 140 | |||
ONCAP(4) | 418 | 409 | |||
Direct Investments | |||||
Private Companies(5) | 151 | 148 | |||
Public Companies(2) | 144 | 145 | |||
3,425 | 3,408 | ||||
Onex Real Estate Partners(6) | 150 | 192 | |||
Onex Credit Partners(7) | 197 | 171 | |||
347 | 363 | ||||
Other Investments | 109 | 108 | |||
Cash and Near-Cash(8) | 1,250 | 1,141 | |||
Onex Corporation Debt | - | - | |||
$ | 5,131 | $ | 5,020 | ||
Proprietary Capital per Share (March 31, 2013 - C$43.49; December 31, 2012 - C$41.21)(9) | $ | 42.81 | $ | 41.42 |
Public Companies | ||||||||||||
As at March 31, 2013 | Shares Subject to Carried Interest (millions) | Shares Held by Onex (millions) | Closing Price per Share(10) | Market Value of Onex' Investment | ||||||||
Onex Partners | ||||||||||||
Skilled Healthcare Group(11) | 10.7 | 3.5 | $ | 6.57 | $ | 23 | ||||||
Spirit AeroSystems(11) | 11.9 | 6.5 | $ | 18.99 | 123 | |||||||
TMS International(11) | 13.2 | 9.3 | $ | 13.20 | 122 | |||||||
Allison Transmission(11) | 33.5 | 23.4 | $ | 24.01 | 563 | |||||||
831 | ||||||||||||
Estimated Management Investment Plan Liability | (28 | ) | ||||||||||
803 | ||||||||||||
Direct Investments - Celestica | - | 17.8(12 | ) | $ | 8.09 | 144 | ||||||
$ | 947 |
Significant Private Companies | ||||||||||||||||||||||
As at March 31, 2013 | Onex' and its Limited Part- ners' Owner- ship | LTM EBITDA (13) | Net Debt | Cumul- ative Distribu- tions | Onex' Econ- omic Owner- ship | Original Cost of Onex' Invest- ment | ||||||||||||||||
Onex Partners | ||||||||||||||||||||||
The Warranty Group | 91 | % | $ | 113(14 | ) | $ | 248(14 | ) | $ | 338 | 29 | % | $ | 154 | ||||||||
Carestream Health | 93 | % | 436 | 1,544 | 561 | 37 | % | 186 | ||||||||||||||
Tropicana Las Vegas | 82 | % | (11 | ) | 41 | - | 18 | % | 70 | |||||||||||||
Tomkins | 56 | % | 499(15 | ) | 1,547 | 1,180(16 | ) | 14 | % | 315 | ||||||||||||
ResCare | 98 | % | 144 | 336 | - | 20 | % | 41 | ||||||||||||||
JELD-WEN | 65%(17 | ) | 175(18 | ) | 639(18 | ) | - | 16%(17 | ) | 212(19 | ) | |||||||||||
SGS International | 94 | % | 104(20 | ) | 591 | - | 24 | % | 66 | |||||||||||||
USI | 91 | % | 255(20 | ) | 1,659 | - | 25 | % | 170(21 | ) | ||||||||||||
BBAM | 50 | % | 74 | - | - | 13 | % | 55(22 | ) | |||||||||||||
KraussMaffei | 97 | % | EUR | 92 | EUR | 266 | - | 25 | % | 90 | ||||||||||||
1,359 | ||||||||||||||||||||||
Direct Investments - Sitel Worldwide | 70 | % | $ | 126 | $ | 714 | $ | - | 70 | % | 251 | |||||||||||
$ | 1,610 | |||||||||||||||||||||
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 $55 million (2012 − $39 million). RSI, which was sold in February 2013, was included in private companies of Onex Partners at December 31, 2012. |
(2) | Based on the closing market values and net of the estimated MIP liability on these investments. |
(3) | Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. |
(4) | Based on the C$ fair value of the investments in ONCAP's financial statements net of the estimated MIP liability on these investments of $28 million (2012 − $25 million) and a US$/C$ exchange rate of 1.0160 (2012 - 0.9949). |
(5) | Based on the fair value. |
(6) | Based on the fair value of Onex Real Estate Partners' investments. |
(7) | Based on the market values of investments in Onex Credit Partners' Funds and Onex Credit Partners Collateralized Loan Obligations. Excludes $334 million (2012 − $328 million) invested in a segregated Onex Credit Partners' unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. |
(8) | Includes $334 million (2012 − $328 million) invested in a segregated Onex Credit Partners' unleveraged senior secured loan strategy fund. |
(9) | Calculated on a fully diluted basis. |
(10) | Closing prices on March 31, 2013. |
(11) | Excludes Onex' potential participation in the carried interest and includes shares related to the MIP. |
(12) | Excludes shares held in connection with the MIP. |
(13) | 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. |
(14) | Amount presented for The Warranty Group is net earnings rather than EBITDA and total debt rather than net debt. |
(15) | LTM EBITDA excludes EBITDA from businesses divested as of March 31, 2013. |
(16) | Onex, Onex Partners III, Onex management, certain limited partners and others received distributions of $663 million from Tomkins. |
(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 $125 million of convertible notes, including accrued interest, held by Onex, Onex Partners III, Onex management, certain limited partners and others. In April 2013, JELD-WEN repaid $54 million of its convertible notes, including accrued interest, and the remaining convertible notes, including accrued interest, were converted into additional equity of JELD-WEN. |
(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 $15 million return of capital on the convertible promissory notes to March 31, 2013. |
(20) | LTM EBITDA for SGS International and USI are presented on a pro-forma basis to reflect the impact of acquired businesses. |
(21) | Net of $84 million of the amount originally invested in USI that was sold by Onex to certain limited partners and others as a co-investment in March 2013. |
(22) | Included in Onex' cost is $5 million that was invested in FLY Leasing Limited (NYSE:FLY) and $8 million that was invested in Meridian Aviation Partners Limited. These investments were made in conjunction with the investment in BBAM. |
Onex Corporation | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) (in millions of U.S. dollars) | As at March 31, 2013 | As at December 31, 2012 | As at January 1, 2012 | ||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 2,822 | $ | 2,656 | $ | 2,448 | |
Short-term investments | 759 | 730 | 749 | ||||
Accounts receivable | 3,981 | 3,858 | 3,272 | ||||
Inventories | 4,662 | 4,519 | 4,428 | ||||
Other current assets | 1,292 | 1,443 | 1,154 | ||||
13,516 | 13,206 | 12,051 | |||||
Property, plant and equipment | 5,474 | 5,495 | 5,102 | ||||
Long-term investments | 6,787 | 6,424 | 5,415 | ||||
Other non-current assets | 1,966 | 1,986 | 1,776 | ||||
Intangible assets | 4,784 | 4,833 | 2,599 | ||||
Goodwill | 4,298 | 4,358 | 2,434 | ||||
$ | 36,825 | $ | 36,302 | $ | 29,377 | ||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 4,600 | $ | 4,549 | $ | 3,893 | |
Current portion of provisions | 323 | 347 | 263 | ||||
Other current liabilities | 1,290 | 1,340 | 909 | ||||
Current portion of long-term debt of operating companies, without recourse | |||||||
to Onex Corporation | 347 | 286 | 482 | ||||
Current portion of warranty reserves and unearned premiums | 1,349 | 1,366 | 1,400 | ||||
7,909 | 7,888 | 6,947 | |||||
Non-current portion of provisions | 256 | 264 | 180 | ||||
Long-term debt of operating companies, without recourse to Onex Corporation | 10,647 | 10,184 | 6,479 | ||||
Non-current portion of warranty reserves and unearned premiums | 1,751 | 1,774 | 1,727 | ||||
Other non-current liabilities | 2,918 | 2,852 | 2,368 | ||||
Deferred income taxes | 1,703 | 1,683 | 1,059 | ||||
Limited Partners' Interests | 6,468 | 6,208 | 4,980 | ||||
31,652 | 30,853 | 23,740 | |||||
Equity | |||||||
Share capital | 356 | 358 | 360 | ||||
Non-controlling interests | 3,927 | 3,822 | 3,863 | ||||
Retained earnings and accumulated other comprehensive earnings | 890 | 1,269 | 1,414 | ||||
5,173 | 5,449 | 5,637 | |||||
$ | 36,825 | $ | 36,302 | $ | 29,377 |
Onex Corporation | ||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||
(Unaudited) | Three months ended March 31 | |||||
(in millions of U.S. dollars except per share data) | 2013 | 2012 | ||||
Revenues | $ | 7,212 | $ | 6,817 | ||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (5,611 | ) | (5,408 | ) | ||
Operating expenses | (1,047 | ) | (829 | ) | ||
Interest income | 25 | 10 | ||||
Amortization of property, plant and equipment | (164 | ) | (140 | ) | ||
Amortization of intangible assets and deferred charges | (141 | ) | (83 | ) | ||
Interest expense of operating companies | (183 | ) | (137 | ) | ||
Increase in value of investments in joint ventures and associates at fair value, net | 276 | 608 | ||||
Stock-based compensation expense | (122 | ) | (88 | ) | ||
Other items | (108 | ) | (47 | ) | ||
Limited Partners' Interests charge | (374 | ) | (486 | ) | ||
Earnings (loss) before income taxes | (237 | ) | 217 | |||
Provision for income taxes | (34 | ) | (44 | ) | ||
Net Earnings (Loss) for the Period | $ | (271 | ) | $ | 173 | |
Net Earnings (Loss) attributable to: | ||||||
Equity holders of Onex Corporation | $ | (308 | ) | $ | 58 | |
Non-controlling Interests | 37 | 115 | ||||
Net Earnings (Loss) for the Period | $ | (271 | ) | $ | 173 | |
Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | ||||||
Basic and Diluted: | ||||||
Net Earnings (Loss) for the Period | $ | (2.71 | ) | $ | 0.51 |
Onex Corporation | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | Three months ended March 31 | |||||||
(in millions of U.S. dollars) | 2013 | 2012 | ||||||
Operating Activities | ||||||||
Earnings (loss) for the period | $ | (271 | ) | $ | 173 | |||
Adjustments to earnings (loss): | ||||||||
Provision for income taxes | 34 | 44 | ||||||
Interest income | (25 | ) | (10 | ) | ||||
Interest expense of operating companies | 183 | 137 | ||||||
Net earnings (loss) before interest and provision for income taxes | (79 | ) | 344 | |||||
Cash taxes paid | (51 | ) | (48 | ) | ||||
Items not affecting cash and cash equivalents: | ||||||||
Amortization of property, plant and equipment | 164 | 140 | ||||||
Amortization of intangible assets and deferred charges | 141 | 83 | ||||||
Amortization of deferred warranty costs | 4 | 11 | ||||||
Increase in value of investments in associates at fair value, net | (276 | ) | (608 | ) | ||||
Stock-based compensation expense | 68 | 75 | ||||||
Limited Partners' Interests charge | 374 | 486 | ||||||
Change in provisions | 42 | 54 | ||||||
Other | 62 | 20 | ||||||
449 | 557 | |||||||
Changes in non-cash working capital items: | ||||||||
Accounts receivable | (157 | ) | (163 | ) | ||||
Inventories | (184 | ) | (254 | ) | ||||
Other current assets | 60 | 52 | ||||||
Accounts payable, accrued liabilities and other current liabilities | (226 | ) | 49 | |||||
Decrease in cash and cash equivalents due to changes in working capital items | (507 | ) | (316 | ) | ||||
Decrease in other operating activities | (12 | ) | (10 | ) | ||||
Increase in warranty reserves and premiums | 2 | 32 | ||||||
(68 | ) | 263 | ||||||
Financing Activities | ||||||||
Issuance of long-term debt | 696 | 659 | ||||||
Repayment of long-term debt | (187 | ) | (458 | ) | ||||
Cash interest paid | (116 | ) | (97 | ) | ||||
Cash dividends paid | (3 | ) | (3 | ) | ||||
Repurchase of share capital of Onex Corporation | (23 | ) | (1 | ) | ||||
Repurchase of share capital of operating companies | - | (60 | ) | |||||
Financing provided by Limited Partners | 66 | 92 | ||||||
Issuance of share capital by operating companies | 34 | 5 | ||||||
Distributions paid to non-controlling interests and Limited Partners | (215 | ) | (231 | ) | ||||
Change in restricted cash for distribution to Limited Partners | 35 | (6 | ) | |||||
Decrease due to other financing activities | (10 | ) | (19 | ) | ||||
277 | (119 | ) | ||||||
Investing Activities | ||||||||
Acquisitions, net of cash and cash equivalents in acquired companies of nil (2012 - nil) | (4 | ) | (20 | ) | ||||
Purchase of property, plant and equipment | (195 | ) | (166 | ) | ||||
Proceeds from sale of investments in associates at fair value | 323 | 326 | ||||||
Cash interest and dividends received | 11 | 1 | ||||||
Net purchases of investments and securities | (228 | ) | (357 | ) | ||||
Increase due to other investing activities | 61 | 4 | ||||||
(32 | ) | (212 | ) | |||||
Increase (Decrease) in Cash and Cash Equivalents for the Period | 177 | (68 | ) | |||||
Increase (decrease) in cash due to changes in foreign exchange rates | (11 | ) | 4 | |||||
Cash and cash equivalents, beginning of the period | 2,656 | 2,448 | ||||||
Cash and Cash Equivalents, End of the Period | $ | 2,822 | $ | 2,384 |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE THREE MONTHS ENDED MARCH 31, 2013 |
(Unaudited) (in millions of U.S. dollars) Three months ended March 31, 2013 | Electronics Manufacturing Services | Aerostructures | Healthcare | Insurance Provider | Customer Care Services | Metal Services | Building Products | Other(a) | Consolidated Total | ||||||||||||||||||
Revenues | $ | 1,372 | $ | 1,442 | $ | 1,155 | $ | 297 | $ | 365 | $ | 590 | $ | 770 | $ | 1,221 | $ | 7,212 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,268 | ) | (1,239 | ) | (817 | ) | (152 | ) | (236 | ) | (535 | ) | (649 | ) | (715 | ) | (5,611 | ) | |||||||||
Operating expenses | (52 | ) | (56 | ) | (213 | ) | (96 | ) | (92 | ) | (14 | ) | (120 | ) | (404 | ) | (1,047 | ) | |||||||||
Interest income | - | - | 1 | - | - | - | 1 | 23 | 25 | ||||||||||||||||||
Amortization of property, plant and equipment | (15 | ) | (34 | ) | (31 | ) | (1 | ) | (7 | ) | (16 | ) | (26 | ) | (34 | ) | (164 | ) | |||||||||
Amortization of intangible assets and deferred charges | (3 | ) | (8 | ) | (39 | ) | (3 | ) | (5 | ) | (3 | ) | (4 | ) | (76 | ) | (141 | ) | |||||||||
Interest expense of operating companies | (1 | ) | (17 | ) | (43 | ) | (1 | ) | (25 | ) | (7 | ) | (19 | ) | (70 | ) | (183 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | - | - | - | - | - | - | - | 276 | 276 | ||||||||||||||||||
Stock-based compensation expense | (10 | ) | (4 | ) | (2 | ) | (1 | ) | - | (1 | ) | (7 | ) | (97 | ) | (122 | ) | ||||||||||
Other items | (8 | ) | (19 | ) | (33 | ) | 3 | (10 | ) | - | 19 | (60 | ) | (108 | ) | ||||||||||||
Limited Partners' Interests charge | - | - | - | - | - | - | - | (374 | ) | (374 | ) | ||||||||||||||||
Earnings (loss) before income taxes | 15 | 65 | (22 | ) | 46 | (10 | ) | 14 | (35 | ) | (310 | ) | (237 | ) | |||||||||||||
Recovery of (provision for) income taxes | (5 | ) | (17 | ) | (2 | ) | (17 | ) | (2 | ) | (5 | ) | 2 | 12 | (34 | ) | |||||||||||
Net earnings (loss) for the period | $ | 10 | $ | 48 | $ | (24 | ) | $ | 29 | $ | (12 | ) | $ | 9 | $ | (33 | ) | $ | (298 | ) | $ | (271 | ) | ||||
` | |||||||||||||||||||||||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 1 | $ | 6 | $ | (24 | ) | $ | 26 | $ | (9 | ) | $ | 5 | $ | (24 | ) | $ | (289 | ) | $ | (308 | ) | ||||
Non-controlling interests | 9 | 42 | - | 3 | (3 | ) | 4 | (9 | ) | (9 | ) | 37 | |||||||||||||||
Net earnings (loss) for the period | $ | 10 | $ | 48 | $ | (24 | ) | $ | 29 | $ | (12 | ) | $ | 9 | $ | (33 | ) | $ | (298 | ) | $ | (271 | ) | ||||
Total assets | $ | 2,643 | $ | 5,479 | $ | 3,902 | $ | 4,864 | $ | 625 | $ | 1,001 | $ | 2,650 | $ | 15,661 | $ | 36,825 | |||||||||
Long-term debt(b) | $ | 20 | $ | 1,133 | $ | 2,538 | $ | 257 | $ | 723 | $ | 317 | $ | 647 | $ | 5,359 | $ | 10,994 |
(a) | Includes Tropicana Las Vegas, SGS International, USI, KraussMaffei, ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2, OCP CLO-3 and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, BBAM, RSI (sold in February 2013), 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 THREE MONTHS ENDED MARCH 31, 2012 |
(Unaudited) (in millions of U.S. dollars) Three months ended March 31, 2012 | Electronics Manufacturing Services | Aerostructures | Healthcare | Insurance Provider | Customer Care Services | Metal Services | Building Products | Other(a) | Consolidated Total | ||||||||||||||||||
Revenues | $ | 1,691 | $ | 1,266 | $ | 1,209 | $ | 293 | $ | 364 | $ | 747 | $ | 731 | $ | 516 | $ | 6,817 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,559 | ) | (1,011 | ) | (841 | ) | (148 | ) | (233 | ) | (693 | ) | (609 | ) | (314 | ) | (5,408 | ) | |||||||||
Operating expenses | (55 | ) | (54 | ) | (235 | ) | (103 | ) | (93 | ) | (17 | ) | (114 | ) | (158 | ) | (829 | ) | |||||||||
Interest income | − | − | 1 | − | − | − | 1 | 8 | 10 | ||||||||||||||||||
Amortization of property, plant and equipment | (17 | ) | (28 | ) | (32 | ) | (1 | ) | (6 | ) | (13 | ) | (26 | ) | (17 | ) | (140 | ) | |||||||||
Amortization of intangible assets and deferred charges | (3 | ) | (7 | ) | (42 | ) | (4 | ) | (7 | ) | (3 | ) | (4 | ) | (13 | ) | (83 | ) | |||||||||
Interest expense of operating companies | (1 | ) | (18 | ) | (48 | ) | (1 | ) | (22 | ) | (21 | ) | (15 | ) | (11 | ) | (137 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | − | − | 608 | 608 | ||||||||||||||||||
Stock-based compensation expense | (10 | ) | (5 | ) | (3 | ) | − | − | − | − | (70 | ) | (88 | ) | |||||||||||||
Other items | 1 | 3 | (3 | ) | 6 | (2 | ) | − | (25 | ) | (27 | ) | (47 | ) | |||||||||||||
Limited Partners' Interests charge | − | − | − | − | − | − | − | (486 | ) | (486 | ) | ||||||||||||||||
Earnings (loss) before income taxes | $ | 47 | $ | 146 | $ | 6 | $ | 42 | $ | 1 | $ | − | $ | (61 | ) | $ | 36 | $ | 217 | ||||||||
Recovery of (provision for) income taxes | (4 | ) | (46 | ) | 9 | (16 | ) | (3 | ) | − | 2 | 14 | (44 | ) | |||||||||||||
Net earnings (loss) for the period | $ | 43 | $ | 100 | $ | 15 | $ | 26 | $ | (2 | ) | $ | − | $ | (59 | ) | $ | 50 | $ | 173 | |||||||
` | |||||||||||||||||||||||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 4 | $ | 16 | $ | 9 | $ | 24 | $ | (1 | ) | $ | − | $ | (41 | ) | $ | 47 | $ | 58 | |||||||
Non-controlling interests | 39 | 84 | 6 | 2 | (1 | ) | − | (18 | ) | 3 | 115 | ||||||||||||||||
Net earnings (loss) for the period | $ | 43 | $ | 100 | $ | 15 | $ | 26 | $ | (2 | ) | $ | − | $ | (59 | ) | $ | 50 | $ | 173 | |||||||
Total assets at December 31, 2012 | $ | 2,659 | $ | 5,371 | $ | 3,971 | $ | 4,903 | $ | 632 | $ | 989 | $ | 2,626 | $ | 15,151 | $ | 36,302 | |||||||||
Long-term debt at December 31, 2012(b) | $ | 55 | $ | 1,133 | $ | 2,540 | $ | 258 | $ | 725 | $ | 306 | $ | 547 | $ | 4,906 | $ | 10,470 |
(a) | Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1 and the parent company. Investments in joint ventures and associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI (sold in February 2013), Tomkins, Cypress and certain Onex Real Estate investments. |
(b) | 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