All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its
consolidated financial results for the third quarter and nine
months ended September 30, 2012 and an update on matters following
quarter-end.
Highlights
-- Onex completed the $813 million acquisition of SGS International, a
global leader in design-to-print graphic services to the consumer
products packaging industry.
-- Onex agreed to acquire KraussMaffei, a leading manufacturer of plastic
and rubber processing equipment, in a transaction valued at EUR568
million.
-- Onex opened an office in London, England to support continued growth of
its investing activities.
-- Onex established a strategic partnership with Neil Fiske, an experienced
executive in the retail industry.
-- Onex completed the sale of Center for Diagnostic Imaging, resulting in a
multiple of invested capital of 2.0 times.
-- Onex Credit Partners priced its second collateralized loan obligation
("CLO") offering in a private placement transaction that will raise $521
million including $26 million from Onex.
-- Including realizations and distributions, the value of Onex' interest in
Onex Partners' and ONCAP's private investments grew by 10% and 11%,
respectively, in the first nine months of 2012. Overall, Onex'
proprietary capital, including $1.5 billion of cash and near-cash items,
grew by 7% on a per share basis during the first nine months of the year
to $39.38.
Acquiring and Building Businesses
"The past several months have been busy for us. We announced two
acquisitions and continue to broaden our sourcing capabilities,"
said Gerald W. Schwartz, Chairman and Chief Executive Officer of
Onex. "The SGS International investment resulted from several years
of work in the consumer and packaging industries and KraussMaffei
was a joint effort between our Toronto and London teams."
Based in Louisville, Kentucky, SGS International provides
design-to-print graphic services for multiple packaging variations
for food, beverage, personal care and other brands. The company has
long-standing relationships with many of the world's leading
consumer packaged goods companies and the printers that service
them. SGS International has significant growth potential and under
Onex' ownership, has already completed one add-on acquisition to
extend its service offering to retail point-of-purchase displays
and in-store banners. The acquisition of SGS International was
completed in mid-October and the equity investment by Onex Partners
III was $260 million, of which Onex' share was $66 million as a
limited partner in the Fund. Onex Partners III and management of
SGS International own 100% of the company.
Based in Munich, Germany, KraussMaffei makes machines and
systems for forming plastic products used in automotive, consumer
packaging and construction applications. The company holds a
leading position in many of the segments it serves. Prior to
agreeing to acquire KraussMaffei, we worked with the management
team to identify meaningful opportunities for improving the
operations and free cash flow profile. Onex Partners III is
expected to make an equity investment of approximately $340
million, of which Onex' share is $86 million as a limited partner
in the Fund. Upon closing, expected by March 31, 2013 and subject
to customary conditions and regulatory approvals, Onex Partners III
and management of KraussMaffei will own approximately 97% of the
company. Including this acquisition, Onex Partners III will be
approximately 60% invested.
While the private equity origination market has improved this
year, it is still very competitive. Although it is difficult to
predict investment pace, Onex is well-positioned to respond to
opportunities. The parent company continues to be in excellent
financial condition with no debt and approximately $1.5 billion of
cash and near-cash items at September 30, 2012. Onex now has $2.2
billion of uncalled committed third-party capital for future
acquisitions by Onex Partners III and ONCAP III.
The outlook for the global economy is still uncertain. Despite
the challenging operating environment, Onex' interest in Onex
Partners' and ONCAP's private companies grew by 10% and 11%,
respectively, during the first nine months of 2012. These increases
were achieved by executing our investment theses and creating
equity value through cash flow improvements and debt reduction.
Overall, Onex' proprietary capital, including $1.5 billion of cash
and near-cash items, grew by 7% on a per share basis during the
first nine months of the year.
By transforming under-valued 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. Success is strengthened
through a meaningful alignment of interests. At September 30, 2012,
the value of the team's investment in Onex' shares and its
businesses was approximately $1.5 billion.
Managing and Growing Third-Party Capital
Onex earns recurring management fees and/or carried interest on
$8.3 billion of third-party assets under management. At September
30, 2012, the value of Onex' unrealized carried interest was
approximately $49 million based on the traded market values of Onex
Partners' public companies and a further $77 million based on the
quarter-end valuations of the private businesses. The actual amount
of carried interest realized by Onex depends on the ultimate
performance of each Fund.
In October, Onex Credit Partners priced its second CLO offering,
which is expected to close in the fourth quarter of 2012. This
private placement will raise $521 million including $26 million
from Onex, and will increase 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 like Onex. We're committed
to growing this platform and, as market conditions permit, we
expect Onex Credit Partners to launch additional CLOs, which will
include investments from Onex. This would represent an additional
source of recurring management fee income for Onex.
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 third quarter, revenues
increased 12% to $6.7 billion compared to the same period of the
prior year. The acquisitions completed in 2011, including JELD-WEN,
contributed to this year-over-year revenue increase. Onex reported
net earnings of $104 million compared to $184 million in the third
quarter of 2011. The decrease in net earnings for the quarter was
primarily due to forward-loss charges recorded by Spirit
AeroSystems on certain new programs, partially offset by a net gain
recorded by Spirit AeroSystems related to an insurance
settlement.
On a consolidated basis for the nine months ended September 30,
2012, revenues increased 15% to $20.5 billion. Net earnings for the
period were $116 million compared to $1.7 billion for the nine
months ended September 30, 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 $1.3
billion for the first nine months of 2012 compared to $481 million
for the same period last year.
The Company paid a third-quarter dividend of C$0.0275 per
Subordinate Voting Share on October 31, 2012 to shareholders of
record on October 10, 2012.
For the 10-month period ended October 31, 2012, Onex repurchased
438,657 Subordinate Voting Shares under its Normal Course Issuer
Bids for a total cost of C$17 million or an average cost per share
of C$37.88.
Attached are the Unaudited Interim Consolidated Balance Sheets,
Statements of Earnings, Statements of Cash Flows and information by
industry segment for the quarter and nine months ended September
30, 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 is the "How We Are Invested" schedule,
which details Onex' $4.8 billion of proprietary capital and
provides private company performance information.
Webcast
Onex management will host a conference call to review the
Company's results for the third quarter and nine months ended
September 30, 2012 at 4:30 p.m. ET today. A live webcast of this
conference call will be available in listen-only mode on its
website, www.onex.com.
About Onex
Onex is one of North America's oldest and most successful
private equity firms committed to acquiring and building
high-quality businesses in partnership with talented management
teams. Onex manages investment platforms focused on private equity,
real estate and credit securities. In total, the Company manages
approximately $14 billion, of which $9.6 billion is third-party
capital. Onex invests its $4.8 billion of proprietary capital
directly and as a substantial limited partner in its Funds.
Onex' businesses have assets of $39 billion, generate annual
revenues of $34 billion and employ approximately 235,000 people
worldwide. Onex shares trade on the Toronto Stock Exchange under
the stock symbol OCX. For more information on Onex, visit its
website at www.onex.com. The Company's security filings can also be
accessed at www.sedar.com.
This news release may contain forward-looking statements that
are based on management's current expectations and are subject to
known and unknown uncertainties and risks, which could cause actual
results to differ materially from those contemplated or implied by
such forward-looking statements. Onex is under no obligation to
update any forward-looking statements contained herein should
material facts change due to new information, future events or
otherwise.
ONEX
How We Are Invested
Unless otherwise noted, all amounts are in millions of U.S. dollars except
per share data.
Proprietary Capital
September December
30, 31,
As at 2012 2011
----------------------------------------------------------------------------
Private Equity
Onex Partners
Private Companies(1, 2) $ 1,409 $ 1,847
Public Companies(2, 3) 705 235
Unrealized Carried Interest on Onex Partners
Investments(4) 126 96
ONCAP(5) 343 319
Direct Investments
Private Companies(6) 162 204
Public Companies(3) 127 130
----------------------------------------------------------------------------
2,872 2,831
----------------------------------------------------------------------------
Alternative Assets
Onex Real Estate Partners(7) 187 180
Onex Credit Partners(8) 172 100
----------------------------------------------------------------------------
359 280
----------------------------------------------------------------------------
Other Investments 88 81
Cash and Near-Cash(9) 1,455 1,302
Onex Corporation Debt - -
----------------------------------------------------------------------------
$ 4,774 $ 4,494
----------------------------------------------------------------------------
Proprietary Capital per Share (September 30, 2012 -
C$38.72; December 31, 2011 - C$37.47 (10 )) $ 39.38 $ 36.85
----------------------------------------------------------------------------
Public Companies
Shares
Subject Shares
to Held Closing Market
Carried by Price Value of
Interest Onex per Onex'
As at September 30, 2012 (millions) (millions) Share(11) Investment
----------------------------------------------------------------------------
Onex Partners
Skilled Healthcare
Group(12) 10.7 3.5 $ 6.43 $ 22
Spirit AeroSystems(12) 11.9 6.5 $ 22.21 143
TMS International(12) 13.2 9.3 $ 9.90 92
Allison Transmission(2,
12) 33.5 23.4 $ 20.12 472
----------------------------------------------------------------------------
729
Estimated Management
Investment Plan
Liability (24)
----------------------------------------------------------------------------
705
Direct Investments -
Celestica - 17.8(13) $ 7.14 127
----------------------------------------------------------------------------
$ 832
Significant Private Companies
Onex' and its
Limited
Partners'
As at September 30, 2012 Ownership LTM EBITDA(14) Net Debt
----------------------------------------------------------------------------
Onex Partners
The Warranty Group 92% $ 108(15) $ 250(15)
Carestream Health 94% 414 1,577
RSI Home Products 50% n/a n/a
Tropicana Las Vegas 76% (9) 58
Tomkins 56% 681(16) 1,810
ResCare 98% 132 346
JELD-WEN 62%(17) 169(18) 529(18)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Direct Investments -
Sitel Worldwide 68% $ 125 $ 698
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Significant Private Companies
Onex' Original
Cumulative Economic Cost of Onex'
As at September 30, 2012 Distributions Ownership Investment
----------------------------------------------------------------------------
Onex Partners
The Warranty Group $ 288 29% $ 154
Carestream Health 509 37% 186
RSI Home Products n/a 20% 126
Tropicana Las Vegas - 17% 60
Tomkins - 14% 315
ResCare - 20% 41
JELD-WEN - 15%(17) 203(19)
----------------------------------------------------------------------------
1,085
----------------------------------------------------------------------------
Direct Investments -
Sitel Worldwide $ - 68% 251
----------------------------------------------------------------------------
$ 1,336
----------------------------------------------------------------------------
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 $31 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 $23.00 per share. At
December 31, 2011, Allison Transmission was included in private
companies of Onex Partners.
3. Based on the closing market values and net of the estimated MIP
liability on these investments.
4. Represents Onex' share of the unrealized carried interest on public and
private companies in the Onex Partners Funds.
5. Based on the C$ fair value of the investments in ONCAP's financial
statements net of the estimated MIP liability on these investments of
$18 million (2011 - $13 million) and a US$/C$ exchange rate of 0.9832
(2011 - 1.0170).
6. Based on the estimated value.
7. Based on the carrying 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 $324 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 $324 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 September 30, 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 September 30,
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 $119 million of convertible notes 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 $12 million return of capital on the
convertible promissory notes to date. Excludes $12 million invested in
October 2012 as an add-on acquisition.
Onex Corporation
CONSOLIDATED BALANCE SHEETS
As at As at As at
(in millions of U.S. September 30, December 31, January 1,
dollars) 2012 2011 2011
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,436 $ 2,448 $ 2,532
Short-term investments 779 749 715
Accounts receivable 3,630 3,272 3,430
Inventories 4,156 4,428 4,004
Other current assets 1,227 1,154 1,463
----------------------------------------------------------------------------
12,228 12,051 12,144
Property, plant and
equipment 5,122 5,102 4,056
Long-term investments 6,275 5,415 4,864
Other non-current assets 1,851 1,776 1,850
Intangible assets 2,425 2,599 2,505
Goodwill 2,424 2,434 2,634
----------------------------------------------------------------------------
$ 30,325 $ 29,377 $ 28,053
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $ 3,844 $ 3,893 $ 3,964
Current portion of
provisions 271 263 257
Other current liabilities 1,009 909 1,225
Current portion of long-term
debt of operating
companies, without recourse
to Onex Corporation 1,361 482 243
Current portion of warranty
reserves and unearned
premiums 1,433 1,400 1,314
----------------------------------------------------------------------------
7,918 6,947 7,003
Non-current portion of
provisions 199 180 284
Long-term debt of operating
companies, without recourse
to Onex Corporation 5,885 6,479 6,346
Non-current portion of
warranty reserves and
unearned premiums 1,726 1,727 1,780
Other non-current
liabilities 2,538 2,376 1,964
Deferred income taxes 1,054 1,059 936
Limited Partners' Interests 5,263 4,980 5,650
----------------------------------------------------------------------------
24,583 23,748 23,963
----------------------------------------------------------------------------
Equity
Share capital 359 360 373
Non-controlling interests 3,923 3,857 3,633
Retained earnings and
accumulated other
comprehensive earnings 1,460 1,412 84
----------------------------------------------------------------------------
5,742 5,629 4,090
----------------------------------------------------------------------------
$ 30,325 $ 29,377 $ 28,053
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended Nine months ended
(Unaudited) September 30 September 30
(in millions of U.S. dollars
except per share data) 2012 2011 2012 2011
----------------------------------------------------------------------------
Revenues $ 6,712 $ 6,008 $ 20,531 $ 17,884
Cost of sales (excluding
amortization of property,
plant and equipment,
intangible assets and
deferred charges) (5,907) (4,766) (16,858) (14,348)
Operating expenses (768) (711) (2,427) (2,082)
Interest income 19 1 39 18
Amortization of property,
plant and equipment (148) (108) (442) (320)
Amortization of intangible
assets and deferred charges (78) (77) (240) (222)
Interest expense of
operating companies (117) (112) (412) (351)
Increase (decrease) in value
of investments in
associates at fair value,
net 365 (26) 615 374
Stock-based compensation
recovery (expense) (30) 66 (164) (90)
Other gains 59 - 59 -
Other items 183 (60) 62 (125)
Impairment of intangible
assets and long-lived
assets (11) (126) (27) (126)
Limited Partners' Interests
recovery (charge) (259) 184 (565) (431)
----------------------------------------------------------------------------
Earnings before income taxes
and discontinued operations 20 273 171 181
Recovery of (provision for)
income taxes 84 (83) (55) (156)
----------------------------------------------------------------------------
Earnings from continuing
operations 104 190 116 25
Earnings (loss) from
discontinued operations - (6) - 1,715
----------------------------------------------------------------------------
Net Earnings for the Period $ 104 $ 184 $ 116 $ 1,740
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (Loss) from
Continuing Operations
attributable to:
Equity holders of Onex
Corporation $ 175 $ 152 $ 35 $ (170)
Non-controlling Interests (71) 38 81 195
----------------------------------------------------------------------------
Earnings from Continuing
Operations for the Period $ 104 $ 190 $ 116 $ 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss)
attributable to:
Equity holders of Onex
Corporation $ 175 $ 146 $ 35 $ 1,512
Non-controlling Interests (71) 38 81 228
----------------------------------------------------------------------------
Net Earnings for the Period $ 104 $ 184 $ 116 $ 1,740
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (Loss) per
Subordinate Voting Share of
Onex Corporation
Basic and Diluted:
Continuing operations $ 1.52 $ 1.29 $ 0.30 $ (1.44)
Discontinued operations - (0.04) - 14.25
----------------------------------------------------------------------------
Net Earnings for the Period $ 1.52 $ 1.25 $ 0.30 $ 12.81
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) Nine months ended September 30
(in millions of U.S. dollars) 2012 2011
----------------------------------------------------------------------------
Operating Activities
Earnings for the period from continuing
operations $ 116 $ 25
Adjustments to earnings from continuing
operations:
Provision for income taxes 55 156
Interest income (39) (18)
Interest expense of operating companies 412 351
----------------------------------------------------------------------------
Net earnings before interest and provision
for income taxes 544 514
Cash taxes paid (251) (116)
Items not affecting cash and cash
equivalents:
Amortization of property, plant and
equipment 442 320
Amortization of intangible assets and
deferred charges 240 222
Amortization of deferred warranty costs 28 41
Increase in value of investments in
associates at fair value, net (615) (374)
Stock-based compensation expense 143 22
Other gains (59) -
Impairment of intangible assets and
long-lived assets 27 126
Limited Partners' Interests charge 565 431
Change in provisions 97 67
Other 14 (14)
----------------------------------------------------------------------------
1,175 1,239
Changes in non-cash working capital items:
Accounts receivable (344) (129)
Inventories 365 (243)
Other current assets 37 7
Accounts payable, accrued liabilities
and other current liabilities 78 (501)
----------------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents due to changes in working
capital items 136 (866)
Decrease in other operating activities (68) (14)
Increase in warranty reserves and premiums 16 22
Cash flows from operating activities of
discontinued operations - 100
----------------------------------------------------------------------------
1,259 481
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 2,039 471
Repayment of long-term debt (1,792) (242)
Cash interest paid (325) (295)
Cash dividends paid (9) (10)
Repurchase of share capital of Onex
Corporation (11) (57)
Repurchase of share capital of operating
companies (145) (52)
Financing provided by Limited Partners 133 788
Issuance of share capital by operating
companies 19 148
Proceeds from sales of operating investments
under continuing control - 268
Distributions paid to non-controlling
interests and Limited Partners (420) (2,155)
Change in restricted cash for distribution
to Limited Partners - 272
Decrease due to other financing activities (41) (51)
Cash flows used for financing activities of
discontinued operations - (42)
----------------------------------------------------------------------------
(552) (957)
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating companies, net of
cash and cash equivalents in acquired
companies of $6 (2011 - 44) (143) (298)
Purchase of property, plant and equipment (523) (439)
Change in restricted cash for acquisition of
an operating company - (860)
Proceeds from sale of investments in
associates at fair value 326 -
Proceeds from sale of operating investment
no longer controlled 71 -
Cash interest received 11 11
Net purchases of investments and securities (489) (112)
Increase (decrease) due to other investing
activities 15 (204)
Cash flows from investing activities of
discontinued operations - 2,030
----------------------------------------------------------------------------
(732) 128
----------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents for
the Period (25) (348)
Increase (decrease) in cash due to changes
in foreign exchange rates 13 (5)
Cash and cash equivalents, beginning of the
period - continuing operations 2,448 2,053
Cash and cash equivalents, beginning of the
period - discontinued operations - 479
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing
Operations $ 2,436 $ 2,179
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars) Electronics
Three months ended Manufacturing Financial
September 30, 2012 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,575 $ 1,368 $ 1,190 $ 295
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (1,444) (1,742) (829) (153)
Operating expenses (56) (48) (200) (94)
Interest income - - - -
Amortization of
property, plant
and equipment (18) (31) (28) (1)
Amortization of
intangible assets
and deferred
charges (3) (7) (39) (3)
Interest expense of
operating
companies (1) (17) (42) (2)
Increase in value
of investments in
associates at fair
value, net - - - -
Stock-based
compensation
expense (11) (4) (4) (1)
Other gains - - - -
Other items (11) 228 (5) 1
Impairment of
intangible assets
and long-lived
assets - - (5) -
Limited Partners'
Interests charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes 31 (253) 38 42
Recovery of
(provision for)
income taxes 13 98 (14) (14)
----------------------------------------------------------------------------
Net earnings (loss)
for the period $ 44 $ (155)$ 24 $ 28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ 5 $ (24)$ 20 $ 25
Non-controlling
interests 39 (131) 4 3
----------------------------------------------------------------------------
Net earnings (loss)
for the period $ 44 $ (155)$ 24 $ 28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars) Customer
Three months ended Care Metal Building Consolidated
September 30, 2012 Services Services Products Other(a) Total
----------------------------------------------------------------------------
Revenues $ 348 $ 573 $ 813 $ 550 $ 6,712
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (221) (521) (646) (351) (5,907)
Operating expenses (89) (16) (103) (162) (768)
Interest income 1 - 1 17 19
Amortization of
property, plant
and equipment (7) (14) (28) (21) (148)
Amortization of
intangible assets
and deferred
charges (5) (3) (6) (12) (78)
Interest expense of
operating
companies (20) (6) (14) (15) (117)
Increase in value
of investments in
associates at fair
value, net - - - 365 365
Stock-based
compensation
expense - - - (10) (30)
Other gains - - - 59 59
Other items (3) (1) (5) (21) 183
Impairment of
intangible assets
and long-lived
assets (1) - (5) - (11)
Limited Partners'
Interests charge - - - (259) (259)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes 3 12 7 140 20
Recovery of
(provision for)
income taxes 2 (2) 13 (12) 84
----------------------------------------------------------------------------
Net earnings (loss)
for the period $ 5 $ 10 $ 20 $ 128 $ 104
----------------------------------------------------------------------------
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ - $ 6 $ 13 $ 130 $ 175
Non-controlling
interests 5 4 7 (2) (71)
----------------------------------------------------------------------------
Net earnings (loss)
for the period $ 5 $ 10 $ 20 $ 128 $ 104
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center,
OCP CLO-1, OCP CLO-2 and the parent company. Investments in associates
recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI,
Tomkins, Cypress and certain Onex Real Estate investments.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Three months ended Electronics
September 30, Manufacturing Financial
2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 1,830 $ 1,130 $ 1,242 $ 303
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (1,684) (920) (857) (152)
Operating expenses (61) (42) (221) (108)
Interest income - - 1 -
Amortization of
property, plant
and Equipment (16) (26) (29) (1)
Amortization of
intangible assets
and deferred
charges (4) (9) (42) (5)
Interest expense
of operating
companies (2) (19) (50) (1)
Decrease in value
of investment in
associates at
fair value, net - - - -
Stock-based
compensation
recovery
(expense) (8) (4) - -
Other items 2 (2) (24) 2
Impairment of
goodwill,
intangible assets
and long-lived
assets, net 2 - (120) -
Limited Partners'
Interests charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 59 108 (100) 38
Provision for
income taxes (8) (32) (19) (14)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 51 76 (119) 24
Loss from
discontinued
operations(b) - - - -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 51 $ 76 $ (119) $ 24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ 5 $ 12 $ (52) $ 22
Non-controlling
interests 46 64 (67) 2
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 51 $ 76 $ (119) $ 24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Three months ended Customer
September 30, Care Metal Consolidated
2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 359 $ 707 $ 437 $ 6,008
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (231) (658) (264) (4,766)
Operating expenses (97) (16) (166) (711)
Interest income - - - 1
Amortization of
property, plant
and Equipment (8) (12) (16) (108)
Amortization of
intangible assets
and deferred
charges (8) (3) (6) (77)
Interest expense
of operating
companies (20) (8) (12) (112)
Decrease in value
of investment in
associates at
fair value, net - - (26) (26)
Stock-based
compensation
recovery
(expense) - - 78 66
Other items (6) 1 (33) (60)
Impairment of
goodwill,
intangible assets
and long-lived
assets, net - - (8) (126)
Limited Partners'
Interests charge - - 184 184
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (11) 11 168 273
Provision for
income taxes (9) (1) - (83)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (20) 10 168 190
Loss from
discontinued
operations(b) - - (6) (6)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (20) $ 10 $ 162 $ 184
----------------------------------------------------------------------------
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ (13) $ 6 $ 166 $ 146
Non-controlling
interests (7) 4 (4) 38
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (20) $ 10 $ 162 $ 184
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center
and the parent company. Investments in 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).
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Nine months
ended Electronics
September 30, Manufacturing Financial
2012 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 5,011 $ 3,972 $ 3,648 $ 899
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (4,611) (3,857) (2,529) (461)
Operating
expenses (171) (141) (671) (296)
Interest income 1 - 2 -
Amortization of
property,
plant and
equipment (53) (98) (93) (3)
Amortization of
intangible
assets and
deferred
charges (8) (21) (121) (11)
Interest
expense of
operating
companies (4) (63) (147) (4)
Increase in
value of
investments in
associates at
fair value - - - -
Stock-based
compensation
expense (28) (11) (9) (1)
Other gains,
net - - - -
Other items (27) 168 (14) 9
Impairment of
intangible
assets and
long-lived
assets - - (19) -
Limited
Partners'
Interests
charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes 110 (51) 47 132
Recovery of
(provision
for) income
taxes 1 34 (14) (48)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 111 $ (17) $ 33 $ 84
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ 11 $ (2) $ 27 $ 76
Non-controlling
interests 100 (15) 6 8
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 111 $ (17) $ 33 $ 84
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets $ 2,886 $ 5,339 $ 3,902 $ 4,926
----------------------------------------------------------------------------
Long-term
debt(b) $ - $ 1,135 $ 2,551 $ 259
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Nine months
ended Customer
September 30, Care Metal Building Consolidated
2012 Services Services Products Other(a) Total
----------------------------------------------------------------------------
Revenues $ 1,059 $ 1,989 $ 2,351 $ 1,602 $ 20,531
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (679) (1,830) (1,901) (990) (16,858)
Operating
expenses (273) (48) (330) (497) (2,427)
Interest income 1 - 2 33 39
Amortization of
property,
plant and
equipment (20) (41) (79) (55) (442)
Amortization of
intangible
assets and
deferred
charges (18) (9) (14) (38) (240)
Interest
expense of
operating
companies (76) (32) (44) (42) (412)
Increase in
value of
investments in
associates at
fair value - - - 615 615
Stock-based
compensation
expense - (1) (14) (100) (164)
Other gains,
net - - - 59 59
Other items (12) - (33) (29) 62
Impairment of
intangible
assets and
long-lived
assets (2) - (6) - (27)
Limited
Partners'
Interests
charge - - - (565) (565)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes (20) 28 (68) (7) 171
Recovery of
(provision
for) income
taxes (5) (8) 11 (26) (55)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (25) $ 20 $ (57) $ (33) $ 116
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ (16) $ 12 $ (40) $ (33) $ 35
Non-controlling
interests (9) 8 (17) - 81
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (25) $ 20 $ (57) $ (33) $ 116
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets $ 634 $ 993 $ 2,600 $ 9,045 $ 30,325
----------------------------------------------------------------------------
Long-term
debt(b) $ 721 $ 297 $ 544 $ 1,739 $ 7,246
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center,
OCP CLO-1, OCP CLO-2 and the parent company. Investments in associates
recorded at fair value include Allison Transmission, 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 NINE MONTHS ENDED SEPTEMBER 30, 2011
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Nine months ended Electronics
September 30, Manufacturing Financial
2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Revenues $ 5,460 $ 3,645 $ 3,696 $ 900
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (5,033) (3,110) (2,553) (438)
Operating expenses (179) (127) (683) (329)
Interest income - 1 3 -
Amortization of
property, plant
and Equipment (47) (79) (92) (3)
Amortization of
intangible assets
and deferred
charges (11) (24) (127) (14)
Interest expense
of operating
companies (5) (62) (171) (3)
Increase in value
of investments in
associates at
fair value, net - - - -
Stock-based
compensation
expense (35) (10) (3) -
Other items (7) (1) (33) 7
Impairment of
goodwill,
intangible assets
and long-lived
assets, net 2 - (120) -
Limited Partners'
Interests charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 145 233 (83) 120
Recovery of
(provision for)
income taxes (19) (68) (45) (41)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 126 165 (128) 79
Earnings from
discontinued
operations(b) - - 606 -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 126 $ 165 $ 478 $ 79
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ 11 $ 26 $ 500 $ 72
Non-controlling
interests 115 139 (22) 7
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 126 $ 165 $ 478 $ 79
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars)
Nine months ended Customer
September 30, Care Metal Consolidated
2011 Services Services Other(a) Total
----------------------------------------------------------------------------
Revenues $ 1,052 $ 2,042 $ 1,089 $ 17,884
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (684) (1,894) (636) (14,348)
Operating expenses (280) (45) (439) (2,082)
Interest income - - 14 18
Amortization of
property, plant
and Equipment (23) (36) (40) (320)
Amortization of
intangible assets
and deferred
charges (20) (9) (17) (222)
Interest expense
of operating
companies (60) (25) (25) (351)
Increase in value
of investments in
associates at
fair value, net - - 374 374
Stock-based
compensation
expense - (2) (40) (90)
Other items (13) 1 (79) (125)
Impairment of
goodwill,
intangible assets
and long-lived
assets, net - - (8) (126)
Limited Partners'
Interests charge - - (431) (431)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (28) 32 (238) 181
Recovery of
(provision for)
income taxes (9) (11) 37 (156)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (37) 21 (201) 25
Earnings from
discontinued
operations(b) - - 1,109 1,715
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (37) $ 21 $ 908 $ 1,740
----------------------------------------------------------------------------
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ (25) $ 15 $ 913 $ 1,512
Non-controlling
interests (12) 6 (5) 228
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (37) $ 21 $ 908 $ 1,740
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars) Electronics
As at December Manufacturing Financial
31, 2011 Services Aerostructures Healthcare Services
----------------------------------------------------------------------------
Total assets $ 2,970 $ 4,978 $ 4,194 $ 4,808
----------------------------------------------------------------------------
Long-term debt(c) $ - $ 1,157 $ 2,670 $ 203
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars) Customer
As at December Care Metal Building Consolidated
31, 2011 Services Services Products Other(a) Total
----------------------------------------------------------------------------
Total assets $ 631 $ 1,045 $ 2,581 $ 8,170 $ 29,377
----------------------------------------------------------------------------
Long-term debt(c) $ 652 $ 377 $ 481 $ 1,421 $ 6,961
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center
and the parent company. Investments in 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.
Contacts: Onex Corporation Emma Thompson Vice President,
Investor Relations 416.362.7711 www.onex.com