TORONTO, ONTARIO--(Marketwired - Aug. 11, 2016) -
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, 2016 and an update on matters following quarter-end.
Highlights
- Since June, we committed to invest approximately $1.6 billion in three businesses:
- Thomson Reuters' Intellectual Property & Science business, which owns a collection of leading subscription-based businesses that provide a diverse customer base with access to scientific literature, patent, trademark, pharmaceutical and other curated content;
- WireCo WorldGroup, one of the largest global manufacturers of mission-critical steel-wire rope, synthetic rope, specialty wire and engineered products; and
- Tecta America Corporation, the largest provider of commercial roofing services in the U.S. offering installation, replacement and repair services.
- In April, we sold KraussMaffei Group, resulting in a gross multiple of capital invested of 2.1 times and a gross IRR of 24%.
- We announced plans to launch a direct lending platform and closed our eleventh collateralized loan obligation ("CLO"). Onex Credit now manages approximately $7.0 billion.
- In the first seven months of 2016, approximately 2.8 million of Subordinate Voting Shares ("SVS") were repurchased for a total cost of $163 million (C$223 million), or an average cost per share of C$80.24.
Recent Performance
"Despite a quiet start to the year, we're delighted to have found three great new businesses and continue to grow our credit platform," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "We've had to be very selective in these markets, but our patience has paid off."
In addition to approximately $2.2 billion of cash and near-cash, Onex has approximately $3.0 billion of uncalled committed capital available from limited partners. This capital base provides Onex with the strength and flexibility to invest in opportunities that lie ahead.
Onex management continues to share in the risks and rewards of our businesses through the team's significant investment in everything Onex owns. At June 30, 2016, the team had an investment of approximately $1.7 billion in underlying private equity operating businesses, credit funds and Onex shares.
Creating Value for Shareholders
Onex has two long-term goals. The first is to grow our capital per share by 15% per year. For the twelve months ended June 30, 2016, Onex' capital per share increased by 2% to $55.76. While the value of Onex' private equity investments, including realizations and distributions, increased by 6% during the period, our significant cash balance and other investments muted the overall growth from our investing activity. Over the past five years, Onex' capital per share increased by 9% per year.
Our second goal is to grow our fee-generating assets by 10% per year. For the twelve months ended June 30, 2016, Onex' fee-generating assets increased by 4% to $14.9 billion, primarily due to the completion of three CLOs. Over the past five years, our fee-generating assets increased by 13% per year. As we reach our goals over the long term, we believe Onex' shares will reflect both the growth in the value of our investments and the growing contribution from managing investments for fund investors.
Onex paid a second-quarter dividend of C$0.06875 per SVS on July 29, 2016 to shareholders of record on July 8, 2016.
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 second quarter ended June 30, 2016, revenues increased 10% to $5.4 billion compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from the acquisitions of Jack's and Schumacher which were completed during the second half of 2015. Onex reported consolidated net earnings of $367 million during the second quarter of 2016 compared to a net loss of $289 million. The increase in net earnings was primarily driven by earnings from discontinued operations of $476 million compared to a loss of $18 million during the same period in 2015. The gain recognized on the sale of KraussMaffei Group was the primary contributor to discontinued operations in the second quarter of 2016.
On a consolidated basis for the six months ended June 30, 2016, revenues increased 15% to $10.4 billion as compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from the acquisitions of Survitec, SIG, Jack's and Schumacher which were completed during 2015. Onex reported consolidated net earnings of $192 million during the first half of 2016 compared to a net loss of $373 million. The same factors that contributed to the increase in earnings for the second quarter of 2016 drove the increase in earnings for the first half of 2016.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the three and six months ended June 30, 2016 and 2015 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. A supplemental information package, which includes the How We Are Invested schedule, Schedules of Fees and Expenses and additional information, is available on Onex' website, www.onex.com.
Webcast
Onex management will host a conference call to review Onex' second-quarter 2016 results on Thursday, August 11 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
Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests its capital through its two investing platforms and is the largest limited partner in each of its private equity funds.
Onex' businesses have assets of $36 billion, generate annual revenues of $23 billion and employ approximately 145,000 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 Corporation |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) (in millions of U.S. dollars) |
As at June 30, 2016 |
As at December 31, 2015 |
||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 2,021 | $ | 2,313 | ||
Short-term investments | 316 | 206 | ||||
Accounts receivable | 3,150 | 2,933 | ||||
Inventories | 2,273 | 1,982 | ||||
Other current assets | 922 | 920 | ||||
Assets held by discontinued operations | − | 1,328 | ||||
8,682 | 9,682 | |||||
Property, plant and equipment | 3,322 | 3,265 | ||||
Long-term investments | 8,624 | 7,863 | ||||
Other non-current assets | 851 | 795 | ||||
Intangible assets | 6,327 | 6,528 | ||||
Goodwill | 7,530 | 7,677 | ||||
$ | 35,336 | $ | 35,810 | |||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | $ | 3,542 | $ | 3,404 | ||
Current portion of provisions | 360 | 334 | ||||
Other current liabilities | 1,031 | 976 | ||||
Current portion of long-term debt of operating companies, without recourse to Onex Corporation | 418 | 411 | ||||
Current portion of Limited Partners' Interests | 16 | 598 | ||||
Liabilities held by discontinued operations | − | 1,011 | ||||
5,367 | 6,734 | |||||
Non-current portion of provisions | 378 | 368 | ||||
Long-term debt of operating companies, without recourse to Onex Corporation | 18,227 | 17,643 | ||||
Other non-current liabilities | 1,797 | 1,704 | ||||
Deferred income taxes | 1,371 | 1,451 | ||||
Limited Partners' Interests | 6,888 | 6,720 | ||||
34,028 | 34,620 | |||||
Equity | ||||||
Share capital | 326 | 333 | ||||
Non-controlling interests | 1,376 | 1,353 | ||||
Retained earnings and accumulated other comprehensive loss | (394 | ) | (496 | ) | ||
1,308 | 1,190 | |||||
$ | 35,336 | $ | 35,810 |
Onex Corporation |
CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) | Three months ended June 30 | Six months ended June 30 | |||||||||||
(in millions of U.S. dollars except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||
Revenues | $ | 5,425 | $ | 4,926 | $ | 10,423 | $ | 9,055 | |||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (3,783 | ) | (3,369 | ) | (7,227 | ) | (6,208 | ) | |||||
Operating expenses | (1,026 | ) | (1,003 | ) | (2,032 | ) | (1,900 | ) | |||||
Interest income | 81 | 60 | 158 | 116 | |||||||||
Amortization of property, plant and equipment | (133 | ) | (128 | ) | (267 | ) | (224 | ) | |||||
Amortization of intangible assets and deferred charges | (152 | ) | (153 | ) | (309 | ) | (271 | ) | |||||
Interest expense of operating companies | (256 | ) | (215 | ) | (502 | ) | (393 | ) | |||||
Increase in value of investments in joint ventures and associates at fair value, net | 17 | 42 | 37 | 61 | |||||||||
Stock-based compensation expense | (24 | ) | (27 | ) | (75 | ) | (85 | ) | |||||
Other gains | 50 | − | 53 | 74 | |||||||||
Other income (expense) | (7 | ) | 3 | (42 | ) | (42 | ) | ||||||
Impairment of goodwill, intangible assets and long-lived assets, net | (226 | ) | − | (235 | ) | (9 | ) | ||||||
Limited Partners' Interests charge | (44 | ) | (361 | ) | (203 | ) | (539 | ) | |||||
Loss before income taxes and discontinued operations | (78 | ) | (225 | ) | (221 | ) | (365 | ) | |||||
Provision for income taxes | (31 | ) | (46 | ) | (59 | ) | (58 | ) | |||||
Loss from continuing operations | (109 | ) | (271 | ) | (280 | ) | (423 | ) | |||||
Earnings (loss) from discontinued operations | 476 | (18 | ) | 472 | 50 | ||||||||
Net Earnings (Loss) for the Period | $ | 367 | $ | (289 | ) | $ | 192 | $ | (373 | ) | |||
Loss from Continuing Operations attributable to: | |||||||||||||
Equity holders of Onex Corporation | $ | (122 | ) | $ | (293 | ) | $ | (305 | ) | $ | (470 | ) | |
Non-controlling Interests | 13 | 22 | 25 | 47 | |||||||||
Loss from Continuing Operations for the Period | $ | (109 | ) | $ | (271 | ) | $ | (280 | ) | $ | (423 | ) | |
Net Earnings (Loss) attributable to: | |||||||||||||
Equity holders of Onex Corporation | $ | 322 | $ | (306 | ) | $ | 135 | $ | (413 | ) | |||
Non-controlling Interests | 45 | 17 | 57 | 40 | |||||||||
Net Earnings (Loss) for the Period | $ | 367 | $ | (289 | ) | $ | 192 | $ | (373 | ) | |||
Net Earnings (Loss) per Subordinate Voting Share of Onex Corporation | |||||||||||||
Basic and Diluted: | |||||||||||||
Continuing operations | $ | (1.16 | ) | $ | (2.74 | ) | $ | (2.92 | ) | $ | (4.36 | ) | |
Discontinued operations | 4.28 | (0.12 | ) | 4.22 | 0.53 | ||||||||
Net Earnings (Loss) per Subordinate Voting Share for the Period | $ | 3.12 | $ | (2.86 | ) | $ | 1.30 | $ | (3.83 | ) |
Onex Corporation |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) | Six months ended June 30 | ||||||
(in millions of U.S. dollars) | 2016 | 2015 | |||||
Operating Activities | |||||||
Loss for the period from continuing operations | $ | (280 | ) | $ | (423 | ) | |
Adjustments to loss from continuing operations: | |||||||
Provision for income taxes | 59 | 58 | |||||
Interest income | (158 | ) | (116 | ) | |||
Interest expense of operating companies | 502 | 393 | |||||
Earnings (loss) before interest and provision for income taxes | 123 | (88 | ) | ||||
Cash taxes paid | (170 | ) | (120 | ) | |||
Items not affecting cash and cash equivalents: | |||||||
Amortization of property, plant and equipment | 267 | 224 | |||||
Amortization of intangible assets and deferred charges | 309 | 271 | |||||
Increase in value of investments in joint ventures and associates at fair value, net | (37 | ) | (61 | ) | |||
Stock-based compensation expense | 65 | 84 | |||||
Other gains | (53 | ) | (74 | ) | |||
Foreign exchange gain | (21 | ) | (89 | ) | |||
Impairment of goodwill, intangibles assets and long-lived assets, net | 235 | 9 | |||||
Limited Partners' Interests charge | 203 | 539 | |||||
Change in provisions | 35 | (1 | ) | ||||
Other | (42 | ) | 23 | ||||
914 | 717 | ||||||
Changes in non-cash working capital items: | |||||||
Accounts receivable | (121 | ) | 31 | ||||
Inventories | (261 | ) | (105 | ) | |||
Other current assets | (4 | ) | 14 | ||||
Accounts payable, accrued liabilities and other current liabilities | 20 | (47 | ) | ||||
Decrease in cash and cash equivalents due to changes in non-cash working capital items | (366 | ) | (107 | ) | |||
Decrease in other operating activities | (17 | ) | (38 | ) | |||
Cash flows from operating activities of discontinued operations | 38 | 122 | |||||
569 | 694 | ||||||
Financing Activities | |||||||
Issuance of long-term debt | 951 | 1,767 | |||||
Repayment of long-term debt | (424 | ) | (1,191 | ) | |||
Cash interest paid | (428 | ) | (334 | ) | |||
Cash dividends paid | (10 | ) | (9 | ) | |||
Repurchase of share capital of Onex Corporation | (149 | ) | (145 | ) | |||
Repurchase of share capital of operating companies | (43 | ) | (404 | ) | |||
Contributions by Limited Partners | 24 | 1,441 | |||||
Issuance of share capital by operating companies | 6 | 30 | |||||
Distributions paid to non-controlling interests and Limited Partners | (693 | ) | (140 | ) | |||
Decrease due to other financing activities | (16 | ) | (47 | ) | |||
Cash flows from (used in) financing activities of discontinued operations | 2 | (62 | ) | ||||
(780 | ) | 906 | |||||
Investing Activities | |||||||
Acquisitions, net of cash and cash equivalents in acquired companies of $4 (2015 - $344) | (229 | ) | (1,328 | ) | |||
Purchase of property, plant and equipment | (255 | ) | (218 | ) | |||
Proceeds from sale of property, plant and equipment | 46 | 56 | |||||
Proceeds from sale of investments in joint ventures and associates at fair value | − | 10 | |||||
Proceeds from sales of operating companies and businesses no longer controlled | 981 | − | |||||
Distributions received from investments in joint ventures and associates | 39 | 31 | |||||
Purchase of investment in joint venture | (35 | ) | (70 | ) | |||
Change in restricted cash for acquisition of an operating company | − | (295 | ) | ||||
Cash interest received | 154 | 113 | |||||
Net purchases of investments and securities for CLOs and Onex Credit Funds | (624 | ) | (279 | ) | |||
Net purchases of investments and securities at parent company and operating companies | (105 | ) | (791 | ) | |||
Increase (decrease) due to other investing activities | (19 | ) | 24 | ||||
Cash flows used in investing activities of discontinued operations | (155 | ) | (45 | ) | |||
(202 | ) | (2,792 | ) | ||||
Decrease in Cash and Cash Equivalents for the Period | (413 | ) | (1,192 | ) | |||
Increase (decrease) in cash due to changes in foreign exchange rates | 8 | (22 | ) | ||||
Cash and cash equivalents, beginning of the period - continuing operations | 2,313 | 3,662 | |||||
Cash and cash equivalents, beginning of the period - discontinued operations | 113 | 106 | |||||
Cash and Cash Equivalents | 2,021 | 2,554 | |||||
Cash and cash equivalents held by discontinued operations and disposal group | − | 123 | |||||
Cash and Cash Equivalents Held by Continuing Operations | $ | 2,021 | $ | 2,431 |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE THREE MONTHS ENDED JUNE 30, 2016 |
(Unaudited) (in millions of U.S. dollars) |
Electronics Manufacturing Services |
Healthcare Imaging |
Health and Human Services |
Building Products |
Insurance Services |
Packaging Products and Services |
Credit Strategies |
Other(a) |
Consolidated Total |
||||||||||||||||||
Revenues | $ | 1,486 | $ | 503 | $ | 448 | $ | 964 | $ | 460 | $ | 598 | $ | 1 | $ | 965 | $ | 5,425 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,355 | ) | (287 | ) | (342 | ) | (732 | ) | − | (391 | ) | - | (676 | ) | (3,783 | ) | |||||||||||
Operating expenses | (54 | ) | (134 | ) | (80 | ) | (130 | ) | (345 | ) | (72 | ) | (11 | ) | (200 | ) | (1,026 | ) | |||||||||
Interest income | − | − | - | 1 | - | − | 75 | 5 | 81 | ||||||||||||||||||
Amortization of property, plant and equipment | (17 | ) | (16 | ) | (8 | ) | (23 | ) | (4 | ) | (47 | ) | - | (18 | ) | (133 | ) | ||||||||||
Amortization of intangible assets and deferred charges | (3 | ) | (18 | ) | (4 | ) | (3 | ) | (51 | ) | (37 | ) | (2 | ) | (34 | ) | (152 | ) | |||||||||
Interest expense of operating companies | (3 | ) | (37 | ) | (6 | ) | (19 | ) | (47 | ) | (55 | ) | (38 | ) | (51 | ) | (256 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | - | - | 17 | 17 | ||||||||||||||||||
Stock-based compensation expense | (7 | ) | (1 | ) | (1 | ) | (3 | ) | (5 | ) | − | - | (7 | ) | (24 | ) | |||||||||||
Other gains | − | − | 5 | − | 45 | − | − | − | 50 | ||||||||||||||||||
Other income (expense) | 1 | (17 | ) | 3 | (8 | ) | (20 | ) | (11 | ) | 54 | (9 | ) | (7 | ) | ||||||||||||
Impairment of goodwill, intangible assets and long-lived assets, net | − | − | − | − | (226 | ) | − | − | − | (226 | ) | ||||||||||||||||
Limited Partners' Interests charge | − | − | − | − | − | − | (15 | ) | (29 | ) | (44 | ) | |||||||||||||||
Earnings (loss) before income taxes and discontinued operations | 48 | (7 | ) | 15 | 47 | (193 | ) | (15 | ) | 64 | (37 | ) | (78 | ) | |||||||||||||
Recovery of (provision for) income taxes | (12 | ) | (8 | ) | (6 | ) | 22 | (22 | ) | (7 | ) | - | 2 | (31 | ) | ||||||||||||
Earnings (loss) from continuing operations | 36 | (15 | ) | 9 | 69 | (215 | ) | (22 | ) | 64 | (35 | ) | (109 | ) | |||||||||||||
Earnings from discontinued operations(b) | − | − | − | − | − | - | - | 476 | 476 | ||||||||||||||||||
Net earnings (loss) for the period | $ | 36 | $ | (15 | ) | $ | 9 | $ | 69 | $ | (215 | ) | $ | (22 | ) | $ | 64 | $ | 441 | $ | 367 | ||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 4 | $ | (13 | ) | $ | 9 | $ | 60 | $ | (189 | ) | $ | (22 | ) | $ | 64 | $ | 409 | $ | 322 | ||||||
Non-controlling interests | 32 | (2 | ) | - | 9 | (26 | ) | - | - | 32 | 45 | ||||||||||||||||
Net earnings (loss) for the period | $ | 36 | $ | (15 | ) | $ | 9 | $ | 69 | $ | (215 | ) | $ | (22 | ) | $ | 64 | $ | 441 | $ | 367 |
(a) | Includes Emerald Expositions, Survitec, Jack's, Schumacher, ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, Incline Aviation Fund, ITG and Mavis Discount Tire. |
(b) | Represents the after-tax results of KraussMaffei and Sitel Worldwide. |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE THREE MONTHS ENDED JUNE 30, 2015 |
(Unaudited) (in millions of U.S. dollars) |
Electronics Manufacturing Services |
Healthcare Imaging |
Health and Human Services |
Building Products |
Insurance Services |
Packaging Products and Services |
Credit Strategies |
Other(a) |
Consolidated Total |
||||||||||||||||||
Revenues | $ | 1,418 | $ | 545 | $ | 453 | $ | 879 | $ | 455 | $ | 606 | $ | 2 | $ | 568 | $ | 4,926 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (1,303 | ) | (310 | ) | (347 | ) | (677 | ) | - | (404 | ) | − | (328 | ) | (3,369 | ) | |||||||||||
Operating expenses | (50 | ) | (141 | ) | (80 | ) | (115 | ) | (350 | ) | (67 | ) | (16 | ) | (184 | ) | (1,003 | ) | |||||||||
Interest income | − | − | − | 1 | − | 1 | 57 | 1 | 60 | ||||||||||||||||||
Amortization of property, plant and equipment | (15 | ) | (13 | ) | (7 | ) | (27 | ) | (4 | ) | (44 | ) | − | (18 | ) | (128 | ) | ||||||||||
Amortization of intangible assets and deferred charges | (3 | ) | (26 | ) | (3 | ) | (2 | ) | (48 | ) | (39 | ) | (1 | ) | (31 | ) | (153 | ) | |||||||||
Interest expense of operating companies | (1 | ) | (35 | ) | (6 | ) | (13 | ) | (45 | ) | (58 | ) | (30 | ) | (27 | ) | (215 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | − | − | 42 | 42 | ||||||||||||||||||
Stock-based compensation expense | (8 | ) | (1 | ) | − | (12 | ) | (5 | ) | (1 | ) | − | − | (27 | ) | ||||||||||||
Other income (expense) | (9 | ) | (1 | ) | − | (7 | ) | (21 | ) | 100 | (9 | ) | (50 | ) | 3 | ||||||||||||
Limited Partners' Interests charge | − | − | − | − | − | − | (2 | ) | (359 | ) | (361 | ) | |||||||||||||||
Earnings (loss) before income taxes and discontinued operations | 29 | 18 | 10 | 27 | (18 | ) | 94 | 1 | (386 | ) | (225 | ) | |||||||||||||||
Recovery of (provision for) income taxes | (5 | ) | (2 | ) | (4 | ) | (15 | ) | 6 | (23 | ) | − | (3 | ) | (46 | ) | |||||||||||
Earnings (loss) from continuing operations | 24 | 16 | 6 | 12 | (12 | ) | 71 | 1 | (389 | ) | (271 | ) | |||||||||||||||
Loss from discontinued operations(b) | − | − | − | − | − | − | − | (18 | ) | (18 | ) | ||||||||||||||||
Net earnings (loss) for the period | $ | 24 | $ | 16 | $ | 6 | $ | 12 | $ | (12 | ) | $ | 71 | $ | 1 | $ | (407 | ) | $ | (289 | ) | ||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 4 | $ | 15 | $ | 6 | $ | 11 | $ | (11 | ) | $ | 71 | $ | 1 | $ | (403 | ) | $ | (306 | ) | ||||||
Non-controlling interests | 20 | 1 | − | 1 | (1 | ) | − | − | (4 | ) | 17 | ||||||||||||||||
Net earnings (loss) for the period | $ | 24 | $ | 16 | $ | 6 | $ | 12 | $ | (12 | ) | $ | 71 | $ | 1 | $ | (407 | ) | $ | (289 | ) |
(a) | Includes Tropicana Las Vegas (up to August 2015), Emerald Expositions, Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, ITG (since June 2015) and Mavis Discount Tire. |
(b) | Represents the after-tax results of KraussMaffei and Sitel Worldwide. |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE SIX MONTHS ENDED JUNE 30, 2016 |
(Unaudited) (in millions of U.S. dollars) |
Electronics Manufacturing Services |
Healthcare Imaging |
Health and Human Services |
Building Products |
Insurance Services |
Packaging Products and Services |
Credit Strategies |
Other(a) |
Consolidated Total |
||||||||||||||||||
Revenues | $ | 2,839 | $ | 940 | $ | 901 | $ | 1,764 | $ | 910 | $ | 1,120 | $ | 2 | $ | 1,947 | $ | 10,423 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (2,596 | ) | (539 | ) | (688 | ) | (1,355 | ) | − | (737 | ) | - | (1,312 | ) | (7,227 | ) | |||||||||||
Operating expenses | (105 | ) | (274 | ) | (169 | ) | (248 | ) | (686 | ) | (141 | ) | (18 | ) | (391 | ) | (2,032 | ) | |||||||||
Interest income | − | 1 | - | 1 | - | 1 | 146 | 9 | 158 | ||||||||||||||||||
Amortization of property, plant and equipment | (32 | ) | (32 | ) | (15 | ) | (53 | ) | (9 | ) | (92 | ) | - | (34 | ) | (267 | ) | ||||||||||
Amortization of intangible assets and deferred charges | (5 | ) | (42 | ) | (8 | ) | (7 | ) | (102 | ) | (74 | ) | (3 | ) | (68 | ) | (309 | ) | |||||||||
Interest expense of operating companies | (5 | ) | (73 | ) | (12 | ) | (37 | ) | (95 | ) | (109 | ) | (75 | ) | (96 | ) | (502 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | - | - | 37 | 37 | ||||||||||||||||||
Stock-based compensation expense | (16 | ) | (2 | ) | (1 | ) | (34 | ) | (9 | ) | (1 | ) | - | (12 | ) | (75 | ) | ||||||||||
Other gains | − | − | 8 | − | 45 | − | − | − | 53 | ||||||||||||||||||
Other income (expense) | (2 | ) | (23 | ) | 2 | (19 | ) | (33 | ) | (20 | ) | 138 | (85 | ) | (42 | ) | |||||||||||
Impairment of goodwill, intangible assets and long-lived assets, net | − | (8 | ) | − | (1 | ) | (226 | ) | − | − | − | (235 | ) | ||||||||||||||
Limited Partners' Interests charge | − | − | − | − | − | − | (21 | ) | (182 | ) | (203 | ) | |||||||||||||||
Earnings (loss) before income taxes and discontinued operations | 78 | (52 | ) | 18 | 11 | (205 | ) | (53 | ) | 169 | (187 | ) | (221 | ) | |||||||||||||
Recovery of (provision for) income taxes | (16 | ) | (6 | ) | (7 | ) | 20 | (21 | ) | 2 | - | (31 | ) | (59 | ) | ||||||||||||
Earnings (loss) from continuing operations | 62 | (58 | ) | 11 | 31 | (226 | ) | (51 | ) | 169 | (218 | ) | (280 | ) | |||||||||||||
Earnings from discontinued operations(b) | − | − | − | − | − | - | - | 472 | 472 | ||||||||||||||||||
Net earnings (loss) for the period | $ | 62 | $ | (58 | ) | $ | 11 | $ | 31 | $ | (226 | ) | $ | (51 | ) | $ | 169 | $ | 254 | $ | 192 | ||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 8 | $ | (52 | ) | $ | 11 | $ | 27 | $ | (199 | ) | $ | (51 | ) | $ | 169 | $ | 222 | $ | 135 | ||||||
Non-controlling interests | 54 | (6 | ) | - | 4 | (27 | ) | - | - | 32 | 57 | ||||||||||||||||
Net earnings (loss) for the period | $ | 62 | $ | (58 | ) | $ | 11 | $ | 31 | $ | (226 | ) | $ | (51 | ) | $ | 169 | $ | 254 | $ | 192 | ||||||
Total assets | $ | 2,720 | $ | 1,451 | $ | 1,021 | $ | 2,516 | $ | 4,746 | $ | 6,457 | $ | 6,915 | $ | 9,510 | $ | 35,336 | |||||||||
Long-term debt(c) | $ | 279 | $ | 1,959 | $ | 482 | $ | 1,256 | $ | 2,873 | $ | 3,530 | $ | 5,307 | $ | 2,959 | $ | 18,645 |
(a) | Includes Emerald Expositions, Survitec, Jack's, Schumacher, ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, Incline Aviation Fund (since March 2016), ITG and Mavis Discount Tire. |
(b) | Represents the after-tax results of KraussMaffei and Sitel Worldwide. |
(c) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
Onex Corporation |
INFORMATION BY INDUSTRY SEGMENT |
FOR THE SIX MONTHS ENDED JUNE 30, 2015 |
(Unaudited) (in millions of U.S. dollars) |
Electronics Manufacturing Services |
Healthcare Imaging |
Health and Human Services |
Building Products |
Insurance Services |
Packaging Products and Services |
Credit Strategies |
Other(a) |
Consolidated Total |
||||||||||||||||||
Revenues | $ | 2,716 | $ | 1,015 | $ | 895 | $ | 1,616 | $ | 886 | $ | 826 | $ | 3 | $ | 1,098 | $ | 9,055 | |||||||||
Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) | (2,492 | ) | (600 | ) | (683 | ) | (1,268 | ) | - | (555 | ) | − | (610 | ) | (6,208 | ) | |||||||||||
Operating expenses | (104 | ) | (283 | ) | (156 | ) | (225 | ) | (684 | ) | (91 | ) | (23 | ) | (334 | ) | (1,900 | ) | |||||||||
Interest income | − | 1 | − | 1 | − | 1 | 111 | 2 | 116 | ||||||||||||||||||
Amortization of property, plant and equipment | (29 | ) | (30 | ) | (14 | ) | (53 | ) | (8 | ) | (56 | ) | − | (34 | ) | (224 | ) | ||||||||||
Amortization of intangible assets and deferred charges | (5 | ) | (52 | ) | (7 | ) | (5 | ) | (95 | ) | (53 | ) | (2 | ) | (52 | ) | (271 | ) | |||||||||
Interest expense of operating companies | (2 | ) | (71 | ) | (10 | ) | (25 | ) | (91 | ) | (84 | ) | (54 | ) | (56 | ) | (393 | ) | |||||||||
Increase in value of investments in joint ventures and associates at fair value, net | − | − | − | − | − | − | − | 61 | 61 | ||||||||||||||||||
Stock-based compensation expense | (19 | ) | (2 | ) | − | (21 | ) | (10 | ) | (1 | ) | − | (32 | ) | (85 | ) | |||||||||||
Other gains | − | − | − | − | − | − | 38 | 36 | 74 | ||||||||||||||||||
Other income (expense) | (9 | ) | (1 | ) | (4 | ) | (19 | ) | (43 | ) | 140 | (5 | ) | (101 | ) | (42 | ) | ||||||||||
Impairment of goodwill, intangible assets and long-lived assets, net | − | − | − | (7 | ) | − | (2 | ) | − | − | (9 | ) | |||||||||||||||
Limited Partners' Interests recovery (charge) | − | − | − | − | − | − | 1 | (540 | ) | (539 | ) | ||||||||||||||||
Earnings (loss) before income taxes and | |||||||||||||||||||||||||||
discontinued operations | 56 | (23 | ) | 21 | (6 | ) | (45 | ) | 125 | 69 | (562 | ) | (365 | ) | |||||||||||||
Recovery of (provision for) income taxes | (12 | ) | (1 | ) | (9 | ) | (7 | ) | 18 | (26 | ) | − | (21 | ) | (58 | ) | |||||||||||
Earnings (loss) from continuing operations | 44 | (24 | ) | 12 | (13 | ) | (27 | ) | 99 | 69 | (583 | ) | (423 | ) | |||||||||||||
Earnings from discontinued operations(b) | − | − | − | − | − | − | − | 50 | 50 | ||||||||||||||||||
Net earnings (loss) for the period | $ | 44 | $ | (24 | ) | $ | 12 | $ | (13 | ) | $ | (27 | ) | $ | 99 | $ | 69 | $ | (533 | ) | $ | (373 | ) | ||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||||||
Equity holders of Onex Corporation | $ | 6 | $ | (21 | ) | $ | 12 | $ | (12 | ) | $ | (24 | ) | $ | 99 | $ | 69 | $ | (542 | ) | $ | (413 | ) | ||||
Non-controlling interests | 38 | (3 | ) | − | (1 | ) | (3 | ) | − | − | 9 | 40 | |||||||||||||||
Net earnings (loss) for the period | $ | 44 | $ | (24 | ) | $ | 12 | $ | (13 | ) | $ | (27 | ) | $ | 99 | $ | 69 | $ | (533 | ) | $ | (373 | ) |
(Unaudited) (in millions of U.S. dollars) As at December 31, 2015 |
Electronics Manufacturing Services |
Healthcare Imaging |
Health and Human Services |
Building Products |
Insurance Services |
Packaging Products and Services |
Credit Strategies |
Other(a) |
Consolidated Total |
|||||||||||||||||
Total assets(c) | $ | 2,612 | $ | 1,609 | $ | 1,034 | $ | 2,374 | $ | 5,034 | $ | 6,366 | $ | 6,284 | $ | 10,497 | $ | 35,810 | ||||||||
Long-term debt(c)(d) | $ | 261 | $ | 1,999 | $ | 525 | $ | 1,257 | $ | 2,866 | $ | 3,487 | $ | 4,899 | $ | 2,760 | $ | 18,054 |
(a) | Includes Tropicana Las Vegas (up to August 2015), Emerald Expositions, Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center, Meridian Aviation and the parent company. Investments in joint ventures and associates recorded at fair value include AIT, BBAM, ITG (since June 2015) and Mavis Discount Tire. |
(b) | Represents the after-tax results of KraussMaffei, Sitel Worldwide and Skilled Healthcare Group. |
(c) | The other segment includes KraussMaffei, which is a discontinued operation. |
(d) | Long-term debt includes current portion, excludes finance leases and is net of financing charges. |
Contact Information:
Emilie Blouin
Director, Investor Relations
416.362.7711
www.onex.com