TORONTO, ONTARIO -- (Marketwire) -- 02/22/13 --
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2012 and an update on matters following year-end.
Highlights
-- In 2012, Onex Partners acquired four businesses - SGS International,
KraussMaffei, USI and BBAM - for a total purchase price of $4.2 billion.
The total equity investment was $1.4 billion, of which Onex' share was
$457 million.
-- Including realizations and distributions, the value of Onex' interest in
Onex Partners' and ONCAP's private investments grew by 17% and 23%,
respectively, in 2012. Overall, Onex' proprietary capital, including
$1.1 billion of cash and near-cash items, grew by 12% on a per share
basis to $41.42.
-- Onex opened an office in London, England to support continued growth of
its investing activities.
-- Onex Credit Partners completed two collateralized loan obligation
("CLO") offerings, raising approximately $840 million, including $58
million from Onex.
-- In March, Allison Transmission completed a $690 million initial public
offering priced at $23.00 per share compared to Onex' original cost of
$8.44 per share.
-- In July, Onex completed the sale of Center for Diagnostic Imaging,
realizing a multiple of invested capital of 2.0 times.
-- In December, Tomkins paid a $1.2 billion distribution, of which Onex'
share was $171 million, representing 54% of the original equity
investment.
-- In December, ONCAP acquired Bradshaw International, a designer and
marketer of everyday houseware products, for an equity investment of $80
million, of which Onex' share was $24 million.
-- Earlier this month, Onex agreed to sell its 50% interest in RSI Home
Products, resulting in a multiple of invested capital of 1.5 times.
Acquiring and Building Businesses
"2012 was a busy year for Onex with the acquisition of five businesses," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "These investments reflect years of effort evaluating industry sectors and developing relationships with management teams."
USI, the ninth largest insurance broker in the United States, offers a broad range of property and casualty, and employee benefits insurance products to middle-market businesses. Onex' acquisition follows seven years researching the insurance brokerage sector. USI has a unique fully-integrated operating model and a proven add-on acquisition strategy, completing three acquisitions since the closing of Onex' investment. Onex Partners III invested $510 million, of which Onex' share was $128 million as a limited partner in the Fund. Including an additional $126 million co-investment, Onex' initial investment was $254 million. A process is underway to offer a portion of the co-investment to third-party limited partners and employees of USI.
BBAM is a leading manager of leased commercial aircraft. Over its 23-year history, the company has provided fleet and financing solutions to over 200 airline customers in more than 50 countries. BBAM provides asset management services to leasing companies, aviation investors and financial institutions covering more than 450 aircraft valued in excess of $13 billion. The BBAM investment is a proprietary opportunity that resulted from several years evaluating the aircraft leasing sector. Onex Partners III acquired a 50% interest in BBAM for $165 million, of which Onex' share was $42 million. In connection with this transaction, Onex Partners III also invested $20 million in newly issued shares of FLY Leasing Limited ("FLY") (NYSE:FLY), a global lessor of commercial jet aircraft managed by BBAM. Onex' share of the investment in FLY was $5 million.
With no debt and $1.1 billion of cash and near-cash items, Onex is in a very strong financial position. Onex also has $1.3 billion of undrawn, committed capital from limited partners in Onex Partners III and ONCAP III. Combined, we have the resources to pursue just about any attractive opportunity.
In 2012, Onex' operating companies paid down approximately $1.8 billion of debt and distributed approximately $1.6 billion, including a $1.2 billion distribution from Tomkins following the sale of several non-core assets. Our businesses also made capital expenditures and add-on acquisitions of approximately $1.1 billion, including JELD-WEN's acquisition of CraftMaster, the world's third-largest integrated manufacturer of interior doors and door facings.
Onex' interest in Onex Partners' and ONCAP's private companies grew by 17% and 23%, respectively, in 2012. Overall, Onex' proprietary capital, including $1.1 billion of cash and near-cash items, grew by 12% on a per share basis during the year.
By transforming good businesses into industry leaders, Onex has generated a 28-year gross IRR of 28% and an average multiple of 2.9 times invested capital from realized, substantially realized and publicly traded investments. At Onex, we all share in the success and failure of our investments. At December 31, 2012, the value of the Onex team's investment in Onex' shares and its businesses was approximately $1.7 billion.
Managing and Growing Third-Party Capital
Onex earns recurring management fees and/or carried interest on $8.8 billion of third-party assets under management. In 2012, Onex Partners, ONCAP and Onex Credit Partners earned a total of $113 million in management and other fees. Onex also received $3 million of carried interest as a result of the realization of Center for Diagnostic Imaging. Combined fees and carried interest received offset ongoing operating expenses in 2012.
At December 31, 2012, the value of Onex' unrealized carried interest was approximately $50 million based on the traded market values of Onex Partners' public companies and a further $90 million based on the year-end valuations of the private businesses. Onex' share of the total unrealized carried interest grew by $47 million in 2012. The amount of carried interest ultimately realized by Onex depends on the overall performance of each Fund.
With Onex Partners III more than 75% invested, Onex is in a position to fundraise for Onex Partners IV.
Onex Credit Partners completed two CLO offerings in 2012, raising approximately $840 million, including $58 million from Onex. These CLOs increased Onex Credit Partners' third-party capital under management to $1.8 billion. In the last few years, the market for CLOs has significantly consolidated and favours well-capitalized, diversified sponsors. As market conditions permit, we expect Onex Credit Partners to launch additional CLOs, which would represent an additional source of recurring management fees.
Creating Value for Shareholders
Over time, we hope that the value of Onex' shares reflects both growth in the value of our assets and the intrinsic value of our asset management capabilities. At December 31, 2012 Onex' Subordinate Voting Shares closed at C$41.87, a 26% increase from December 31, 2011. This compares to a 13% increase in the S&P 500 and a 4% increase in the S&P/TSX Composite Index.
The Company paid a fourth-quarter dividend of C$0.0275 per Subordinate Voting Share on January 31, 2013 to shareholders of record on January 10, 2013.
In 2012, Onex repurchased 627,061 Subordinate Voting Shares under its Normal Course Issuer Bids for a total cost of C$24 million or an average cost per share of C$38.59. In January 2013, Onex repurchased 545,400 shares for a total cost of C$23 million or an average cost per share of C$42.51.
Consolidated Results
Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of its publicly traded and privately held operating companies and varying business cycles at its operating companies.
On a consolidated basis for the fourth quarter, revenues increased 2% to $6.9 billion compared to the same period of the prior year. Onex reported a consolidated net loss of $77 million compared to a loss of $113 million in the fourth quarter of 2011. Cash from operations was $784 million in the fourth quarter of 2012 compared to $707 million in 2011.
On a consolidated basis for the full year ended December 31, 2012, revenues increased 11% to $27.4 billion. The acquisitions completed in 2011, including JELD-WEN, contributed to this year-over-year revenue increase. Net earnings for the year were $39 million compared to $1.6 billion for 2011, which included $1.7 billion of earnings relating to the sales of Husky International and Emergency Medical Services Corporation. Cash flow from operations was $2.0 billion in 2012 compared to $1.2 billion in the prior year.
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the full year ended December 31, 2012 and 2011 as prepared under International Financial Reporting Standards. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. Also attached are the "How We Are Invested" schedule, which details Onex' $5.0 billion of proprietary capital and provides private company performance information, and the Schedule of Fees and Expenses.
Webcast
Onex management will host a conference call to review Onex' fiscal 2012 results on Friday, February 22 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.
About Onex
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $15 billion of assets under management, including $5 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.
Onex' businesses have assets of $43 billion, generate annual revenues of $37 billion and employ approximately 250,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
How We Are Invested
Unless otherwise noted, all amounts are in millions of U.S. dollars except
per share data.
Proprietary
Capital
As at December 31 2012 2011
----------------------------------------------------------------------------
Private Equity
Onex Partners
Private Companies(1),(2) $ 1,862 $ 1,847
Public Companies(2),(3) 704 235
Unrealized Carried Interest on Onex Partners
Investments(4) 140 96
ONCAP(5) 409 319
Direct Investments
Private Companies(6) 148 204
Public Companies(3) 145 130
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3,408 2,831
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Onex Real Estate Partners(7) 192 180
Onex Credit Partners(8) 171 100
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363 280
----------------------------------------------------------------------------
Other Investments 108 81
Cash and Near-Cash(9) 1,141 1,302
Onex Corporation Debt - -
----------------------------------------------------------------------------
$ 5,020 $ 4,494
----------------------------------------------------------------------------
Proprietary Capital per Share (December 31, 2012 - C$41.21;
December 31, 2011 - C$37.47)(10) $ 41.42 $ 36.85
----------------------------------------------------------------------------
Public Companies
Shares
Subject Shares Closing Market
to Carried Held by Price Value of
Interest Onex per Onex'
As at December 31, 2012 (millions) (millions) Share(11) Investment
----------------------------------------------------------------------------
Onex Partners
Skilled Healthcare Group(12) 10.7 3.5 $ 6.37 $ 22
Spirit AeroSystems(12) 11.9 6.5 $ 16.97 110
TMS International(12) 13.2 9.3 $ 12.52 116
Allison Transmission(2),(12) 33.5 23.4 $ 20.42 479
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727
Estimated Management Investment Plan Liability (23)
----------------------------------------------------------------------------
704
Direct Investments - Celestica - 17.8(13) $ 8.15 145
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$ 849
----------------------------------------------------------------------------
Significant Private Companies
Onex'
and
its Orig-
Limi- inal
ted Onex' Cost
Part- Cumu- Eco- of
ners' lative nomic Onex'
As at December Owner- LTM Net Distri- Owner- Invest-
31, 2012 ship EBITDA(14) Debt butions ship ment
------------------------------------------------------------
Onex Partners
The Warranty
Group 91% $ 111(15) $ 249(15) $ 338 29% $ 154
Carestream
Health 93% 429 1,509 561 37% 186
RSI Home
Products 50% n/a n/a n/a 20% 126
Tropicana Las
Vegas 83% (10) 33 - 18% 70
Tomkins 56% 512(16) 1,482 1,180 14% 315
ResCare 98% 138 341 - 20% 41
JELD-WEN 64(17)% 188(18) 540(18) - 16(17)% 213(19)
SGS
International 94% 104(20) 592 - 24% 66
USI 93% 255(20) 1,633 - 37% 254(21)
BBAM 50% 73 - - 13% 47(22)
KraussMaffei 97% EUR 100 EUR 235 - 25% 90
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1,562
----------------------------------------------------------------------------
Direct
Investments -
Sitel Worldwide 70% $ 125 $ 725 $ - 70% 251
----------------------------------------------------------------------------
$ 1,813
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Notes to Tables
(1) Based on the US$ fair value of the investments in Onex Partners'
financial statements net of the estimated Management Investment Plan
("MIP") liability on these investments of $39 million (2011 - $33
million). CDI, which was sold in July 2012, was included in private
companies of Onex Partners at December 31, 2011.
(2) In March 2012, Allison Transmission completed an initial public
offering of approximately 30.0 million shares of common stock
(NYSE:ALSN), including the over-allotment option, priced at $23.00 per
share. At December 31, 2011, Allison Transmission was included in
private companies of Onex Partners, whereas it is included in public
companies at December 31, 2012.
(3) Based on the closing market values and net of the estimated MIP
liability on these investments.
(4) Represents Onex' share of the unrealized carried interest on public and
private companies in the Onex Partners Funds.
(5) Based on the C$ fair value of the investments in ONCAP's financial
statements net of the estimated MIP liability on these investments of
$25 million (2011 - $13 million) and a US$/C$ exchange rate of 0.9949
(2011 - 1.0170).
(6) Based on the fair value.
(7) Based on the fair value of Onex Real Estate Partners' investments.
(8) Based on the market values of investments in Onex Credit Partners'
funds and Onex Credit Partners' Collateralized Loan Obligations. Onex
Credit Partners' Collateralized Loan Obligations were established in
2012. Excludes $328 million (2011 - $312 million) invested in a
segregated Onex Credit Partners unleveraged senior secured loan
strategy fund, which is included with cash and near-cash items.
(9) Includes $328 million (2011 - $312 million) invested in a segregated
Onex Credit Partners unleveraged senior secured loan strategy fund.
(10) Calculated on a diluted basis.
(11) Closing prices on December 31, 2012.
(12) Excludes Onex' potential participation in the carried interest and
includes shares related to the MIP.
(13) Excludes shares held in connection with the MIP.
(14) EBITDA is a non-GAAP measure and is based on the local GAAP of the
individual operating companies. These adjustments may include non-cash
costs of stock-based compensation and retention plans, transition and
restructuring expenses including severance payments, the impact of
derivative instruments that no longer qualify for hedge accounting, the
impacts of purchase accounting and other similar amounts.
(15) Amount presented for The Warranty Group is net earnings rather than
EBITDA and total debt rather than net debt.
(16) LTM EBITDA excludes EBITDA from businesses divested as of December 31,
2012.
(17) Onex' and its limited partners' investment is in convertible preferred
shares. The ownership percentage is presented on an as-converted basis.
(18) LTM EBITDA and net debt are presented for JELD-WEN Holding, inc. Net
debt excludes $128 million of convertible notes, including accrued
interest, held by Onex, Onex Partners III, Onex management, certain
limited partners and others.
(19) Net of $83 million of the amount originally invested in JELD-WEN that
was sold by Onex to certain limited partners and others as a co-
investment in February 2012 and $14 million return of capital on the
convertible promissory notes to date.
(20) LTM EBITDA for SGS International and USI are presented on a pro-forma
basis to reflect the impact of acquired businesses.
(21) Onex' investment in USI includes $126 million as a co-investment.
(22) Included in Onex' cost is $5 million that was invested in FLY Leasing
Limited (NYSE:FLY) in conjunction with the investment in BBAM.
Schedule of Fees and Expenses
Year ended December 31,
(USD Millions) 2012 2011
----------------------------------------------------------------------------
Revenue Items
Management and Advisory Fees(1)
Base Management Fees $ 108 $ 110
Transaction Fees, Net 5 -
----------------------------------------------------------------------------
Total Management and Advisory Fees 113 110
Carried Interest and Performance Fees
Received(2) 6 72
Interest and Other Treasury Income(3) 39 8
----------------------------------------------------------------------------
Total 158 190
----------------------------------------------------------------------------
Expense Items(4)
Compensation
Base Compensation (incl. benefits) 29 29
Variable Compensation 67 88
----------------------------------------------------------------------------
96 117
Other Expense Items, Net 21 33
----------------------------------------------------------------------------
Total 117 150
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Amount $ 41 $ 40
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(1)The management fees include those from the third-party investors in the
Onex Partners and ONCAP private equity funds, those earned by Onex
Credit Partners manager and Onex' retained portion of the management
fees from operating companies.
(2)Carried interest and performance fees received are on a cash received
basis.
(3)Interest and other treasury income includes the returns on Onex'
investment as a limited partner in Onex Credit Partners Funds and the
interest earned on Onex' cash balance.
(4)Expenses include those of the Onex corporate office, ONCAP, Onex Credit
Partners and Onex Real Estate Partners. There is no allocation of the
expenses to the management of Onex' $5.0 billion of proprietary capital.
The expenses exclude stock-based compensation.
Onex Corporation
CONSOLIDATED BALANCE SHEETS
(Unaudited) As at As at As at
December 31, December 31, January 1,
(in millions of U.S. dollars) 2012 2011 2011
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,656 $ 2,448 $ 2,532
Short-term investments 730 749 715
Accounts receivable 3,858 3,272 3,430
Inventories 4,519 4,428 4,004
Other current assets 1,443 1,154 1,463
----------------------------------------------------------------------------
13,206 12,051 12,144
Property, plant and equipment 5,495 5,102 4,056
Long-term investments 6,424 5,415 4,864
Other non-current assets 1,986 1,776 1,850
Intangible assets 4,833 2,599 2,505
Goodwill 4,358 2,434 2,634
----------------------------------------------------------------------------
$ 36,302 $ 29,377 $ 28,053
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $ 4,549 $ 3,893 $ 3,964
Current portion of provisions 347 263 257
Other current liabilities 1,340 909 1,225
Current portion of long-term
debt of operating companies,
without recourse to Onex
Corporation 286 482 243
Current portion of warranty
reserves and unearned
premiums 1,366 1,400 1,314
----------------------------------------------------------------------------
7,888 6,947 7,003
Non-current portion of
provisions 264 180 284
Long-term debt of operating
companies, without recourse
to Onex Corporation 10,184 6,479 6,346
Non-current portion of
warranty reserves and
unearned premiums 1,774 1,727 1,780
Other non-current liabilities 2,860 2,376 1,964
Deferred income taxes 1,683 1,059 936
Limited Partners' Interests 6,208 4,980 5,650
----------------------------------------------------------------------------
30,861 23,748 23,963
----------------------------------------------------------------------------
Equity
Share capital 358 360 373
Non-controlling interests 3,816 3,857 3,633
Retained earnings and
accumulated other
comprehensive earnings 1,267 1,412 84
----------------------------------------------------------------------------
5,441 5,629 4,090
----------------------------------------------------------------------------
$ 36,302 $ 29,377 $ 28,053
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
Year ended December 31
(in millions of U.S. dollars except per share data) 2012 2011
----------------------------------------------------------------------------
Revenues $ 27,443 $ 24,642
Cost of sales (excluding amortization of property, plant
and equipment, intangible assets and deferred charges) (22,218) (19,725)
Operating expenses (3,313) (2,924)
Interest income 60 32
Amortization of property, plant and equipment (595) (462)
Amortization of intangible assets and deferred charges (330) (311)
Interest expense of operating companies (553) (488)
Increase in value of investments in joint ventures and
associates at fair value, net 863 501
Stock-based compensation expense (241) (133)
Other gains 59 -
Other items (45) (160)
Impairment of goodwill, intangible assets and long-lived
assets, net (65) (197)
Limited Partners' Interests charge (929) (627)
----------------------------------------------------------------------------
Earnings before income taxes and discontinued operations 136 148
Provision for income taxes (97) (236)
----------------------------------------------------------------------------
Earnings (loss) from continuing operations 39 (88)
Earnings from discontinued operations - 1,715
----------------------------------------------------------------------------
Net Earnings for the Year $ 39 $ 1,627
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings (Loss) from Continuing Operations attributable
to:
Equity holders of Onex Corporation $ (121) $ (356)
Non-controlling Interests 160 268
----------------------------------------------------------------------------
Earnings (Loss) from Continuing Operations for the Year $ 39 $ (88)
----------------------------------------------------------------------------
Net Earnings (Loss) attributable to:
Equity holders of Onex Corporation $ (121) $ 1,326
Non-controlling Interests 160 301
----------------------------------------------------------------------------
Net Earnings for the Year $ 39 $ 1,627
----------------------------------------------------------------------------
Net Earnings (Loss) per Subordinate Voting Share of Onex
Corporation
Basic and Diluted:
Continuing operations $ (1.05) $ (3.03)
Discontinued operations - 14.33
----------------------------------------------------------------------------
Net Earnings (Loss) for the Year $ (1.05) $ 11.30
----------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended December 31 (in millions of U.S. dollars) 2012 2011
----------------------------------------------------------------------------
Operating Activities
Earnings (loss) for the year from continuing operations $ 39 $ (88)
Adjustments to earnings (loss) from continuing
operations:
Provision for income taxes 97 236
Interest income (60) (32)
Interest expense of operating companies 553 488
----------------------------------------------------------------------------
Net earnings before interest and provision for income
taxes 629 604
Cash taxes paid (302) (161)
Items not affecting cash and cash equivalents:
Amortization of property, plant and equipment 595 462
Amortization of intangible assets and deferred charges 330 311
Amortization of deferred warranty costs 32 50
Increase in value of investments in joint ventures and
associates at fair value, net (863) (501)
Stock-based compensation expense 213 62
Other gains (59) -
Impairment of goodwill, intangible assets and long-
lived assets 65 197
Limited Partners' Interests charge 929 627
Change in provisions 93 89
Other 69 (6)
----------------------------------------------------------------------------
1,731 1,734
Changes in non-cash working capital items:
Accounts receivable (23) 1
Inventories 377 (162)
Other current assets 22 3
Accounts payable, accrued liabilities and other
current liabilities 15 (457)
----------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents due to
changes in working capital items 391 (615)
Decrease in other operating activities (101) (58)
Increase in warranty reserves and premiums 22 27
Cash flows from operating activities of discontinued
operations - 100
----------------------------------------------------------------------------
2,043 1,188
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 2,632 594
Repayment of long-term debt (1,882) (460)
Cash interest paid (476) (411)
Cash dividends paid (12) (13)
Repurchase of share capital of Onex Corporation (24) (105)
Repurchase of share capital of operating companies (340) (149)
Financing provided by Limited Partners 1,311 932
Issuance of share capital by operating companies 34 151
Proceeds from sales of operating investments under
continuing control - 268
Distributions paid to non-controlling interests and
Limited Partners (982) (2,248)
Change in restricted cash for distribution to Limited
Partners (35) 272
Decrease due to other financing activities (51) (52)
Cash flows used for financing activities of discontinued
operations - (42)
----------------------------------------------------------------------------
175 (1,263)
----------------------------------------------------------------------------
Investing Activities
Acquisition of operating companies, net of cash and cash
equivalents in acquired companies of $275 (2011 - $191) (1,393) (1,155)
Purchase of property, plant and equipment (723) (646)
Proceeds from sale of investment in associates at fair
value 326 -
Proceeds from sale of operating investment no longer
controlled 71 -
Distributions received from investments in associates of
Onex Partners 676 38
Purchase of investments in associates of Onex Partners (165) -
Cash interest received 19 45
Net purchases of investments and securities (787) (91)
Decrease due to other investing activities (39) (233)
Cash flows from investing activities of discontinued
operations - 2,030
----------------------------------------------------------------------------
(2,015) (12)
----------------------------------------------------------------------------
Increase (decrease) in Cash and Cash Equivalents for the
Year 203 (87)
Increase in cash due to changes in foreign exchange
rates 5 3
Cash and cash equivalents, beginning of the year -
continuing operations 2,448 2,053
Cash and cash equivalents, beginning of the year -
discontinued operations - 479
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Cash and Cash Equivalents Held by Continuing Operations $ 2,656 $ 2,448
----------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
----------------------------------------------------------------------------
Electronics
Manufacturing Insurance
Services Aerostructures Healthcare Provider
----------------------------------------------------------------------------
Revenues $ 6,507 $ 5,404 $ 4,947 $ 1,205
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (5,988) (5,038) (3,401) (621)
Operating expenses (226) (202) (885) (402)
Interest income 1 - 3 -
Amortization of
property, plant
and equipment (70) (130) (128) (4)
Amortization of
intangible assets
and deferred
charges (11) (29) (160) (15)
Interest expense of
operating
companies (5) (83) (191) (5)
Increase in value
of investments in
joint ventures and
associates at fair
value, net - - - -
Stock-based
compensation
expense (36) (16) (11) (2)
Other gains - - - -
Other items (42) 150 (42) 11
Impairment of
goodwill,
intangible assets
and long-lived
assets (18) (2) (17) (4)
Limited Partners'
Interests charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes 112 54 115 163
Recovery of
(provision for)
income taxes 6 8 (44) (54)
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ 118 $ 62 $ 71 $ 109
----------------------------------------------------------------------------
Total assets $ 2,659 $ 5,371 $ 3,971 $ 4,903
----------------------------------------------------------------------------
Long-term debt(b) $ 55 $ 1,133 $ 2,540 $ 258
----------------------------------------------------------------------------
Property, plant and
equipment
additions $ 98 $ 225 $ 120 $ 4
----------------------------------------------------------------------------
Intangible assets
with indefinite
life $ - $ - $ 256 $ 16
----------------------------------------------------------------------------
Goodwill additions
from acquisitions $ 26 $ - $ 23 $ -
----------------------------------------------------------------------------
Goodwill $ 60 $ 3 $ 852 $ 304
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ 13 $ 10 $ 18 $ 62
Non-controlling
interests 105 52 53 47
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ 118 $ 62 $ 71 $ 109
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----------------------------------------------------------------------------
Customer
Care Metal Building Consolidated
Services Services Products Other(a) Total
----------------------------------------------------------------------------
Revenues $ 1,429 $ 2,526 $ 3,168 $ 2,257 $ 27,443
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (920) (2,316) (2,556) (1,378) (22,218)
Operating expenses (368) (64) (448) (718) (3,313)
Interest income 1 - 3 52 60
Amortization of
property, plant
and equipment (29) (57) (101) (76) (595)
Amortization of
intangible assets
and deferred
charges (25) (12) (19) (59) (330)
Interest expense of
operating
companies (100) (39) (63) (67) (553)
Increase in value
of investments in
joint ventures and
associates at fair
value, net - - - 863 863
Stock-based
compensation
expense (1) (2) (17) (156) (241)
Other gains - - - 59 59
Other items (4) 1 (33) (86) (45)
Impairment of
goodwill,
intangible assets
and long-lived
assets - - (7) (17) (65)
Limited Partners'
Interests charge - - - (929) (929)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes (17) 37 (73) (255) 136
Recovery of
(provision for)
income taxes (3) (11) 12 (11) (97)
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ (20) $ 26 $ (61) $ (266) $ 39
----------------------------------------------------------------------------
Total assets $ 632 $ 989 $ 2,626 $ 15,151 $ 36,302
----------------------------------------------------------------------------
Long-term debt(b) $ 725 $ 306 $ 547 $ 4,906 $ 10,470
----------------------------------------------------------------------------
Property, plant and
equipment
additions $ 23 $ 115 $ 91 $ 81 $ 757
----------------------------------------------------------------------------
Intangible assets
with indefinite
life $ 36 $ - $ 259 $ 548 $ 1,115
----------------------------------------------------------------------------
Goodwill additions
from acquisitions $ - $ - $ - $ 1,983 $ 2,032
----------------------------------------------------------------------------
Goodwill $ 118 $ 240 $ 113 $ 2,668 $ 4,358
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ (14) $ 15 $ (43) $ (182) $ (121)
Non-controlling
interests (6) 11 (18) (84) 160
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ (20) $ 26 $ (61) $ (266) $ 39
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, SGS International, USI, KraussMaffei,
ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2 and the
parent company. Investments in joint ventures and associates recorded at
fair value include Allison Transmission, BBAM, Hawker Beechcraft, RSI,
Tomkins, Cypress and certain Onex Real Estate investments.
(b) Long-term debt includes current portion, excludes finance leases and is
net of financing charges.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE YEAR ENDED DECEMBER 31, 2011
----------------------------------------------------------------------------
Electronics
Manufacturing Insurance
Services Aerostructures Healthcare Provider
----------------------------------------------------------------------------
Revenues $ 7,213 $ 4,864 $ 5,030 $ 1,184
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (6,645) (4,124) (3,446) (579)
Operating expenses (234) (178) (918) (432)
Interest income 1 - 4 -
Amortization of
property, plant
and equipment (64) (107) (126) (5)
Amortization of
intangible assets
and deferred
charges (14) (41) (168) (18)
Interest expense of
operating
companies (6) (77) (221) (4)
Increase in value
of investments in
joint ventures and
associates at fair
value, net - - - -
Stock-based
compensation
expense (44) (14) (9) -
Other items (8) 1 (42) 9
Impairment of
goodwill,
intangible assets
and
long-lived assets,
net - - (129) (40)
Limited Partners'
Interests charge - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 199 324 (25) 115
Recovery of
(provision for)
income taxes (4) (100) (87) (55)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 195 224 (112) 60
Earnings from
discontinued
operations(b) - - 606 -
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ 195 $ 224 $ 494 $ 60
----------------------------------------------------------------------------
Total assets $ 2,970 $ 4,978 $ 4,194 $ 4,808
----------------------------------------------------------------------------
Long-term debt(c) $ - $ 1,157 $ 2,670 $ 203
----------------------------------------------------------------------------
Property, plant and
equipment
additions $ 60 $ 275 $ 96 $ 3
----------------------------------------------------------------------------
Intangible assets
with indefinite
life $ - $ - $ 258 $ 16
----------------------------------------------------------------------------
Goodwill additions
from acquisitions $ 34 $ - $ 41 $ -
----------------------------------------------------------------------------
Goodwill $ 48 $ 3 $ 911 $ 304
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ 17 $ 35 $ 512 $ 58
Non-controlling
interests 178 189 (18) 2
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ 195 $ 224 $ 494 $ 60
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Customer
Care Metal Building Consolidated
Services Services Products Other(a) Total
----------------------------------------------------------------------------
Revenues $ 1,416 $ 2,661 $ 774 $ 1,500 $ 24,642
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible assets
and deferred
charges) (921) (2,467) (660) (883) (19,725)
Operating expenses (377) (59) (118) (608) (2,924)
Interest income - - 1 26 32
Amortization of
property, plant
and equipment (34) (47) (25) (54) (462)
Amortization of
intangible assets
and deferred
charges (28) (13) (5) (24) (311)
Interest expense of
operating
companies (85) (34) (17) (44) (488)
Increase in value
of investments in
joint ventures and
associates at fair
value, net - - - 501 501
Stock-based
compensation
expense - (2) - (64) (133)
Other items (20) 1 (19) (82) (160)
Impairment of
goodwill,
intangible assets
and
long-lived assets,
net - - (22) (6) (197)
Limited Partners'
Interests charge - - - (627) (627)
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (49) 40 (91) (365) 148
Recovery of
(provision for)
income taxes (9) (16) 2 33 (236)
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (58) 24 (89) (332) (88)
Earnings from
discontinued
operations(b) - - - 1,109 1,715
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ (58) $ 24 $ (89) $ 777 $ 1,627
----------------------------------------------------------------------------
Total assets $ 631 $ 1,045 $ 2,581 $ 8,170 $ 29,377
----------------------------------------------------------------------------
Long-term debt(c) $ 652 $ 377 $ 481 $ 1,421 $ 6,961
----------------------------------------------------------------------------
Property, plant and
equipment
additions $ 32 $ 75 $ 13 $ 120 $ 674
----------------------------------------------------------------------------
Intangible assets
with indefinite
life $ 36 $ - $ 257 $ 376 $ 943
----------------------------------------------------------------------------
Goodwill additions
from acquisitions $ - $ - $ 119 $ 278 $ 472
----------------------------------------------------------------------------
Goodwill $ 118 $ 239 $ 120 $ 691 $ 2,434
----------------------------------------------------------------------------
`
----------------------------------------------------------------------------
Net earnings (loss)
attributable to:
Equity holders of
Onex Corporation $ (39) $ 17 $ (60) $ 786 $ 1,326
Non-controlling
interests (19) 7 (29) (9) 301
----------------------------------------------------------------------------
Net earnings (loss)
for the year $ (58) $ 24 $ (89) $ 777 $ 1,627
----------------------------------------------------------------------------
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center
and the parent company. Investments in joint ventures and associates
recorded at fair value include Allison Transmission, Hawker Beechcraft,
RSI, Tomkins, Cypress and certain Onex Real Estate investments.
(b) Discontinued operations includes EMSC in the Healthcare segment (sold in
May 2011) and Husky in the Other segment (sold in June 2011).
(c) Long-term debt includes current portion, excludes finance leases and is
net of financing charges.
