Onex Reports Third-Quarter 2015 Results
/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 11/12/15 -- 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, 2015 and an update on matters following quarter-end.
Highlights
-- Onex and its partners invested close to $2.5 billion in six platform
businesses and three add-on investments in the nine months ending
September 30, 2015, of which Onex invested $750 million.
-- Onex increased its unrealized carried interest by close to 40% since
year-end 2014 as a result of value creation in its existing businesses.
-- In the nine months ended September 30, 2015, Onex Partners and ONCAP
operating companies collectively raised or refinanced $1.9 billion of
debt.
-- In October, Onex completed its tenth collateralized loan obligation
("CLO") offering for $512 million.
-- In the ten months ended October 30, 2015, approximately 3.1 million
Subordinate Voting Shares ("SVS") were repurchased under Onex' Normal
Course Issuer Bids for a total cost of $174 million (C$216 million), or
an average cost per share of C$70.63.
Recent Performance
"This has been an active year at Onex for investing," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "We've also grown our Credit platform, closing three CLOs with offerings totaling $2 billion."
Onex remains in an excellent position to capitalize on investment opportunities. In addition to our substantial cash balance, we have approximately $2.9 billion of uncalled committed capital available from limited partners.
Onex management continues to share in the risks and rewards of our businesses through the team's significant investment in everything we buy. At September 30, 2015, the team had an investment of $2.3 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 September 30, 2015, Onex' capital per share increased by 3% to $54.52 (C$72.75). While the value of Onex Partners' and ONCAP's operating businesses, including realizations and distributions, increased by 16% in the last twelve months, our significant cash balance muted the overall growth in Onex' capital. Over the last five years, Onex' capital per share has grown at a 12% compounded annual growth rate.
Our second goal is to grow our fee-generating assets by 10% per year. For the twelve months ended September 30, 2015, Onex' fee-generating assets increased by 12% to $14.6 billion, primarily due to the completion of three CLO issuances. Over the last five years, our fee-generating assets have grown at a compounded annual growth rate of 13%. 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 limited partners and other investors.
Onex paid a third-quarter dividend of C$0.0625 per SVS on October 30, 2015 to shareholders of record on October 9, 2015.
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 ended September 30, 2015, revenues increased 19% to $5.5 billion as compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from York Risk Services Group acquired in late 2014, the acquisitions of SIG Combibloc Group and Survitec Group in March 2015 and from the acquisitions of Jack's Family Restaurants and Schumacher Group in July 2015. Onex reported consolidated net earnings for the period of $204 million compared to $388 million in the same quarter of 2014. This decrease was primarily a result of a reduction in gains recognized on the sale of businesses and an increase in stock-based compensation charges in 2015 compared to the same quarter in 2014.
On a consolidated basis for the nine months ended September 30, 2015, revenues increased 13% to $15.2 billion. The increase was driven by the same factors that contributed to the increase in revenues for the third quarter of 2015. Onex reported a consolidated net loss for the period of $169 million compared to net earnings of $526 million in the same period of 2014. The decrease was driven by a reduction in earnings from discontinued operations and a smaller increase in the fair value of investments in joint venture and associates for the first nine months of 2015 compared to the same period in 2014.
Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for three and nine months ended September 30, 2015 and 2014 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 and are also available on SEDAR at www.sedar.com. The "How We Are Invested" schedule, which details Onex' $6 billion of capital and provides private company performance information, and the Pro Forma Schedule of Fees and Expenses are available on Onex' website, www.onex.com.
Webcast
Onex management will host a conference call to review Onex' third-quarter 2015 results on Friday, November 13 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 $22 billion of assets under management, including $6 billion of Onex capital, in private equity and credit securities. With offices in Toronto, New York 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 $24 billion and employ approximately 146,000 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) As at As at
September 30, December 31,
(in millions of U.S. dollars) 2015 2014
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,314 $ 3,764
Short-term investments 213 -
Accounts receivable 3,069 3,085
Inventories 2,286 2,013
Other current assets 1,127 803
Assets held by discontinued operations - 680
----------------------------------------------------------------------------
9,009 10,345
Property, plant and equipment 3,356 2,902
Long-term investments 7,799 5,026
Other non-current assets 1,000 666
Intangible assets 7,143 5,069
Goodwill 7,668 4,928
----------------------------------------------------------------------------
$ 35,975 $ 28,936
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities $ 3,682 $ 3,353
Current portion of provisions 445 273
Other current liabilities 1,044 965
Current portion of long-term debt of operating
companies, without recourse to Onex 684 408
Corporation
Liabilities held by discontinued operations - 545
----------------------------------------------------------------------------
5,855 5,544
Non-current portion of provisions 393 324
Long-term debt of operating companies, without
recourse to Onex Corporation 17,641 12,874
Other non-current liabilities 1,819 1,302
Deferred income taxes 1,657 1,241
Limited Partners' Interests 7,103 5,153
----------------------------------------------------------------------------
34,468 26,438
----------------------------------------------------------------------------
Equity
Share capital 333 336
Non-controlling interests 1,345 1,692
Retained earnings and accumulated other
comprehensive earnings (loss) (171) 470
----------------------------------------------------------------------------
1,507 2,498
----------------------------------------------------------------------------
$ 35,975 $ 28,936
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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)
2015 2014 2015 2014
---------------------------------------------------------------------------
Revenues $ 5,519 $ 4,644 $ 15,217 $ 13,522
Cost of sales (excluding
amortization of
property, plant and
equipment, intangible
assets and deferred
charges) (3,796) (3,377) (10,467) (9,874)
Operating expenses (1,066) (792) (3,075) (2,411)
Interest income 73 35 190 102
Amortization of
property, plant and
equipment (138) (96) (373) (283)
Amortization of
intangible assets and
deferred charges (163) (115) (453) (347)
Interest expense of
operating companies (252) (167) (664) (480)
Increase in value of
investments in joint
ventures and associates
at fair value, net 73 2 134 390
Stock-based compensation
expense (87) (18) (173) (166)
Other gains 164 317 238 317
Other expense (290) (83) (331) (271)
Recovery (impairment) of
intangible assets and
long-lived assets, net (2) (5) (11) 32
Limited Partners'
Interests charge (126) (264) (665) (840)
---------------------------------------------------------------------------
Earnings (loss) before
income taxes and
discontinued operations (91) 81 (433) (309)
Provision for income
taxes (42) (43) (110) (85)
---------------------------------------------------------------------------
Earnings (loss) from
continuing operations (133) 38 (543) (394)
Earnings from
discontinued operations 337 350 374 920
---------------------------------------------------------------------------
Net Earnings (Loss) for
the Period $ 204 $ 388 $ (169) $ 526
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Earnings (Loss) from
Continuing Operations
attributable to:
Equity holders of Onex
Corporation $ (137) $ 9 $ (595) $ (482)
Non-controlling
Interests 4 29 52 88
---------------------------------------------------------------------------
Earnings (Loss) from
Continuing Operations
for the Period $ (133) $ 38 $ (543) $ (394)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net Earnings (Loss)
attributable to:
Equity holders of Onex
Corporation $ 186 $ 364 $ (227) $ 235
Non-controlling
Interests 18 24 58 291
---------------------------------------------------------------------------
Net Earnings (Loss) for
the Period $ 204 $ 388 $ (169) $ 526
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net Earnings (Loss) per
Subordinate Voting
Share of Onex
Corporation
Basic and Diluted:
Continuing operations $ (1.29) $ 0.08 $ (5.54) $ (4.37)
Discontinued
operations 3.05 3.23 3.43 6.49
---------------------------------------------------------------------------
Net Earnings (Loss) per
Subordinate Voting
Share for the Period $ 1.76 $ 3.31 $ (2.11) $ 2.12
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended
(Unaudited) September 30
(in millions of U.S. dollars) 2015 2014
---------------------------------------------------------------------------
Operating Activities
Loss for the period from continuing operations $ (543) $ (394)
Adjustments to loss from continuing
operations:
Provision for income taxes 110 85
Interest income (190) (102)
Interest expense of operating companies 664 480
---------------------------------------------------------------------------
Net earnings before interest and provision for
income taxes 41 69
Cash taxes paid (178) (111)
Items not affecting cash and cash equivalents:
Amortization of property, plant and
equipment 373 283
Amortization of intangible assets and
deferred charges 453 347
Increase in value of investments in joint
ventures and associates at fair value, net (134) (390)
Stock-based compensation 169 36
Foreign exchange loss 4 4
Other gains (238) (317)
Impairment (recovery) of intangibles and
long-lived assets, net 11 (32)
Limited Partners' Interests charge 665 840
Change in provisions (20) 71
Other 141 (173)
---------------------------------------------------------------------------
1,287 627
Changes in non-cash working capital items:
Accounts receivable 57 (166)
Inventories 18 (61)
Other current assets 42 (98)
Accounts payable, accrued liabilities and
other current liabilities (212) 68
---------------------------------------------------------------------------
Decrease in cash and cash equivalents due to
changes in non-cash working capital items (95) (257)
Decrease in other operating activities (69) (51)
Cash flows from operating activities of
discontinued operations 87 395
---------------------------------------------------------------------------
1,210 714
---------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt 3,712 2,692
Repayment of long-term debt (1,465) (1,055)
Cash interest paid (564) (450)
Cash dividends paid (14) (13)
Repurchase of share capital of Onex
Corporation (162) (118)
Repurchase of share capital of operating
companies (413) (94)
Financing provided by Limited Partners 1,788 519
Issuance of share capital by operating
companies 37 18
Proceeds from sale of interests in operating
company under continuing control - 171
Purchase of shares of operating company under
continuing control - (65)
Distributions paid to non-controlling
interests and Limited Partners (831) (3,681)
Change in restricted cash - (34)
Decrease due to other financing activities (87) (24)
Cash flows used in financing activities of
discontinued operations (59) (220)
---------------------------------------------------------------------------
1,942 (2,354)
---------------------------------------------------------------------------
Investing Activities
Acquisitions, net of cash and cash equivalents
in acquired companies of $437 (2014 - $1) (2,290) (621)
Purchase of property, plant and equipment (541) (409)
Proceeds from sale of property, plant and
equipment 363 212
Proceeds from sale of investments in joint
ventures and associates at fair value and 10 3,915
other investments
Proceeds from sales of operating investments
no longer controlled 264 1,756
Distributions received from investments in
joint ventures and associates 56 31
Purchase of investment in joint ventures of
ONCAP (120) -
Change in restricted cash for acquisition of
an operating company - (304)
Cash interest received 184 86
Net purchases of investments and securities
for CLOs and Onex Credit Funds (1,448) (1,513)
Net purchases of investments and securities at
parent company (1,036) -
Increase (decrease) due to other investing
activities 30 (16)
Cash flows used in investing activities of
discontinued operations (41) (725)
---------------------------------------------------------------------------
(4,569) 2,412
---------------------------------------------------------------------------
Increase (Decrease) in Cash and Cash
Equivalents for the Period (1,417) 772
Decrease in cash due to changes in foreign
exchange rates (37) (14)
Cash and cash equivalents, beginning of the
period - continuing operations 3,755 2,611
Cash and cash equivalents, beginning of the
period - discontinued operations 13 580
---------------------------------------------------------------------------
Cash and Cash Equivalents 2,314 3,949
Cash and cash equivalents held by discontinued
operations - 27
---------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing
Operations $ 2,314 $ 3,922
---------------------------------------------------------------------------
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
Health
(Unaudited) Electronics and
(in millions of Manufacturing Healthcare Human Building Insurance
U.S. dollars) Services Imaging Services Products Services
----------------------------------------------------------------------------
Revenues $ 1,408 $ 524 $ 463 $ 874 $ 435
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible
assets and
deferred
charges) (1,289) (300) (350) (671) -
Operating
expenses (52) (146) (78) (122) (351)
Interest income 1 1 - - -
Amortization of
property, plant
and equipment (15) (17) (8) (27) (5)
Amortization of
intangible
assets and
deferred charges (2) (23) (4) (3) (49)
Interest expense
of operating
companies (2) (35) (6) (19) (46)
Increase in value
of investments
in joint
ventures
and associates at
fair value, net - - - - -
Stock-based
compensation
expense (8) (1) - (24) (3)
Other gains - - - - -
Other expense (12) (14) (1) - (24)
Impairment of
intangible
assets and long-
lived assets,
net - - - (2) -
Limited Partners'
Interests
(charge)
recovery - - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 29 (11) 16 6 (43)
Recovery of
(provision for)
income taxes (19) 1 (6) (5) 11
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 10 (10) 10 1 (32)
Earnings from
discontinued
operations(b) - - - - -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 10 $ (10) $ 10 $ 1 $ (32)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ 1 $ (9) $ 10 $ 1 $ (28)
Non-controlling
interests 9 (1) - - (4)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 10 $ (10) $ 10 $ 1 $ (32)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Packaging
(Unaudited) Products
(in millions of and Credit Other Consolidated
U.S. dollars) Services Strategies (a) Total
---------------------------------------------------------------------------
Revenues $ 602 $ 1 $ 1,212 $ 5,519
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible
assets and
deferred
charges) (384) - (802) (3,796)
Operating
expenses (71) (14) (232) (1,066)
Interest income - 68 3 73
Amortization of
property, plant
and equipment (44) - (22) (138)
Amortization of
intangible
assets and
deferred charges (38) (2) (42) (163)
Interest expense
of operating
companies (55) (31) (58) (252)
Increase in value
of investments
in joint
ventures
and associates at
fair value, net - - 73 73
Stock-based
compensation
expense - - (51) (87)
Other gains - 38 126 164
Other expense (119) (103) (17) (290)
Impairment of
intangible
assets and long-
lived assets,
net - - - (2)
Limited Partners'
Interests
(charge)
recovery - 12 (138) (126)
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations (109) (31) 52 (91)
Recovery of
(provision for)
income taxes - - (24) (42)
---------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (109) (31) 28 (133)
Earnings from
discontinued
operations(b) - - 337 337
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (109) $ (31) $ 365 $ 204
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ (109) $ (31) $ 351 $ 186
Non-controlling
interests - - 14 18
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (109) $ (31) $ 365 $ 204
---------------------------------------------------------------------------
---------------------------------------------------------------------------
a. Includes Tropicana Las Vegas (up to August 2015), KraussMaffei, Emerald
Expositions, Survitec (since March 2015), Jack's (since July 2015),
Schumacher (since late July 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 Sitel Worldwide.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014
Health
(Unaudited) Electronics and
(in millions of Manufacturing Healthcare Human Building Insurance
U.S. dollars) Services Imaging Services Products Services
----------------------------------------------------------------------------
Revenues $ 1,423 $ 571 $ 438 $ 937 $ 239
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (1,300) (328) (332) (741) -
Operating
expenses (52) (139) (73) (108) (161)
Interest income - 1 - 1 -
Amortization of
property,
plant and
equipment (15) (16) (6) (28) (2)
Amortization of
intangible
assets and
deferred
charges (2) (26) (5) (4) (38)
Interest
expense of
operating
companies - (38) (8) (21) (29)
Increase in
value of
investments in
joint ventures
and associates
at fair value,
net - - - - -
Stock-based
compensation
expense (5) (1) - (2) (8)
Other gains - - - - -
Other income
(expense) (7) (21) (1) (10) (24)
Impairment of
intangible
assets and
long-lived
assets, net - - - (5) -
Limited
Partners'
Interests
charge - - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 42 3 13 19 (23)
Recovery of
(provision
for) income
taxes (7) (6) (5) (8) 6
----------------------------------------------------------------------------
Earnings (loss)
from
continuing
operations 35 (3) 8 11 (17)
Earnings from
discontinued
operations(c) - - - - -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 35 $ (3) $ 8 $ 11 $ (17)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ 4 $ (3) $ 7 $ 10 $ (15)
Non-controlling
interests 31 - 1 1 (2)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 35 $ (3) $ 8 $ 11 $ (17)
----------------------------------------------------------------------------
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Packaging
Products
(Unaudited) and
(in millions of Services Credit Other Consolidated
U.S. dollars) (a) Strategies (a)(b) Total
---------------------------------------------------------------------------
Revenues $ 123 $ - $ 913 $ 4,644
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (81) - (595) (3,377)
Operating
expenses (16) (4) (239) (792)
Interest income - 31 2 35
Amortization of
property,
plant and
equipment (4) - (25) (96)
Amortization of
intangible
assets and
deferred
charges (9) - (31) (115)
Interest
expense of
operating
companies (11) (23) (37) (167)
Increase in
value of
investments in
joint ventures
and associates
at fair value,
net - - 2 2
Stock-based
compensation
expense (1) - (1) (18)
Other gains - - 317 317
Other income
(expense) - (39) 19 (83)
Impairment of
intangible
assets and
long-lived
assets, net - - - (5)
Limited
Partners'
Interests
charge - - (264) (264)
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 1 (35) 61 81
Recovery of
(provision
for) income
taxes 2 - (25) (43)
---------------------------------------------------------------------------
Earnings (loss)
from
continuing
operations 3 (35) 36 38
Earnings from
discontinued
operations(c) - - 350 350
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 3 $ (35) $ 386 $ 388
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ 3 $ (35) $ 393 $ 364
Non-controlling
interests - - (7) 24
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 3 $ (35) $ 386 $ 388
---------------------------------------------------------------------------
---------------------------------------------------------------------------
a. The other segment has been restated to show the results of SGS
International as a new reportable industry segment, packaging products
and services. In addition, the other segment has been restated to show
the results of ResCare as a new reportable industry segment, health and
human services.
b. Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, ONCAP
II (Mister Car Wash up to August 2014), ONCAP III, Flushing Town Center,
Meridian Aviation and the parent company. Investments in joint ventures
and associates recorded at fair value include BBAM and certain Onex Real
Estate investments.
c. Represents the after-tax results of The Warranty Group, Skilled
Healthcare Group and Sitel Worldwide.
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
Health
(Unaudited) Electronics and
(in millions of Manufacturing Healthcare Human Building Insurance
U.S. dollars) Services Imaging Services Products Services
----------------------------------------------------------------------------
Revenues $ 4,124 $ 1,539 $ 1,358 $ 2,490 $ 1,321
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible
assets and
deferred
charges) (3,781) (900) (1,033) (1,939) -
Operating
expenses (156) (429) (234) (347) (1,035)
Interest income 1 2 - 1 -
Amortization of
property, plant
and equipment (44) (47) (22) (80) (13)
Amortization of
intangible
assets and
deferred charges (7) (75) (11) (8) (144)
Interest expense
of operating
companies (4) (106) (16) (44) (137)
Increase in value
of investments
in joint
ventures and
associates at
fair value, net - - - - -
Stock-based
compensation
expense (27) (3) - (45) (13)
Other gains - - - - -
Other income
(expense) (21) (15) (5) (19) (67)
Impairment of
intangible
assets and long-
lived assets,
net - - - (9) -
Limited Partners'
Interests
(charge)
recovery - - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 85 (34) 37 - (88)
Recovery of
(provision for)
income taxes (31) - (15) (12) 29
----------------------------------------------------------------------------
Earnings (loss)
from continuing
operations 54 (34) 22 (12) (59)
Earnings from
discontinued
operations(b) - - - - -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 54 $ (34) $ 22 $ (12) $ (59)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ 7 $ (30) $ 22 $ (11) $ (52)
Non-controlling
interests 47 (4) - (1) (7)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 54 $ (34) $ 22 $ (12) $ (59)
----------------------------------------------------------------------------
Total assets $ 2,603 $ 1,596 $ 1,121 $ 2,389 $ 4,961
----------------------------------------------------------------------------
Long-term debt(c) $ 267 $ 2,018 $ 530 $ 1,269 $ 2,867
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Packaging
(Unaudited) Products
(in millions of and Credit Other Consolidated
U.S. dollars) Services Strategies (a) Total
---------------------------------------------------------------------------
Revenues $ 1,428 $ 4 $ 2,953 $ 15,217
Cost of sales
(excluding
amortization of
property, plant
and equipment,
intangible
assets and
deferred
charges) (939) - (1,875) (10,467)
Operating
expenses (162) (37) (675) (3,075)
Interest income 1 179 6 190
Amortization of
property, plant
and equipment (100) - (67) (373)
Amortization of
intangible
assets and
deferred charges (91) (4) (113) (453)
Interest expense
of operating
companies (139) (85) (133) (664)
Increase in value
of investments
in joint
ventures and
associates at
fair value, net - - 134 134
Stock-based
compensation
expense (1) - (84) (173)
Other gains - 38 200 238
Other income
(expense) 21 (70) (155) (331)
Impairment of
intangible
assets and long-
lived assets,
net (2) - - (11)
Limited Partners'
Interests
(charge)
recovery - 13 (678) (665)
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 16 38 (487) (433)
Recovery of
(provision for)
income taxes (26) - (55) (110)
---------------------------------------------------------------------------
Earnings (loss)
from continuing
operations (10) 38 (542) (543)
Earnings from
discontinued
operations(b) - - 374 374
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (10) $ 38 $ (168) $ (169)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings
(loss)
attributable to:
Equity holders of
Onex Corporation $ (10) $ 38 $ (191) $ (227)
Non-controlling
interests - - 23 58
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ (10) $ 38 $ (168) $ (169)
---------------------------------------------------------------------------
Total assets $ 6,345 $ 6,201 $ 10,759 $ 35,975
---------------------------------------------------------------------------
Long-term debt(c) $ 3,523 $ 4,785 $ 3,066 $ 18,325
---------------------------------------------------------------------------
---------------------------------------------------------------------------
a. Includes Tropicana Las Vegas (up to August 2015), KraussMaffei, Emerald
Expositions, Survitec (since March 2015), Jack's (since July 2015),
Schumacher (since late July 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 Skilled Healthcare Group 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 NINE MONTHS ENDED SEPTEMBER 30, 2014
Health
and
(Unaudited) Electronics Human
(in millions of Manufacturing Healthcare Services Building Insurance
U.S. dollars) Services Imaging (a) Products Services
----------------------------------------------------------------------------
Revenues $ 4,207 $ 1,691 $ 1,291 $ 2,614 $ 677
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (3,855) (984) (972) (2,125) -
Operating
expenses (157) (428) (224) (343) (455)
Interest income - 3 - 2 -
Amortization of
property,
plant and
equipment (43) (50) (18) (84) (5)
Amortization of
intangible
assets and
deferred
charges (8) (91) (10) (13) (110)
Interest
expense of
operating
companies (2) (115) (24) (60) (85)
Increase in
value of
investments in
joint ventures
and associates
at fair value,
net - - - - -
Stock-based
compensation
expense (22) (3) (1) (10) (15)
Other gains - - - - -
Other income
(expense) (1) (22) (7) (31) (61)
Recovery
(impairment)
of intangible
assets and
long-lived
assets, net - - - (7) -
Limited
Partners'
Interests
charge - - - - -
----------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 119 1 35 (57) (54)
Recovery of
(provision
for) income
taxes (6) (15) (14) (16) 18
----------------------------------------------------------------------------
Earnings (loss)
from
continuing
operations 113 (14) 21 (73) (36)
Earnings from
discontinued
operations(c) - - - - -
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 113 $ (14) $ 21 $ (73) $ (36)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ 12 $ (13) $ 20 $ (62) $ (33)
Non-controlling
interests 101 (1) 1 (11) (3)
----------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 113 $ (14) $ 21 $ (73) $ (36)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Packaging
Products
(Unaudited) and
(in millions of Services Credit Other Consolidated
U.S. dollars) (a) Strategies (a)(b) Total
---------------------------------------------------------------------------
Revenues $ 368 $ - $ 2,674 $ 13,522
Cost of sales
(excluding
amortization
of property,
plant and
equipment,
intangible
assets and
deferred
charges) (235) - (1,703) (9,874)
Operating
expenses (53) (27) (724) (2,411)
Interest income - 93 4 102
Amortization of
property,
plant and
equipment (11) - (72) (283)
Amortization of
intangible
assets and
deferred
charges (26) - (89) (347)
Interest
expense of
operating
companies (31) (47) (116) (480)
Increase in
value of
investments in
joint ventures
and associates
at fair value,
net - - 390 390
Stock-based
compensation
expense (1) - (114) (166)
Other gains - - 317 317
Other income
(expense) 5 (40) (114) (271)
Recovery
(impairment)
of intangible
assets and
long-lived
assets, net - - 39 32
Limited
Partners'
Interests
charge - - (840) (840)
---------------------------------------------------------------------------
Earnings (loss)
before income
taxes and
discontinued
operations 16 (21) (348) (309)
Recovery of
(provision
for) income
taxes - - (52) (85)
---------------------------------------------------------------------------
Earnings (loss)
from
continuing
operations 16 (21) (400) (394)
Earnings from
discontinued
operations(c) - - 920 920
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 16 $ (21) $ 520 $ 526
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net earnings
(loss)
attributable
to:
Equity holders
of Onex
Corporation $ 15 $ (21) $ 317 $ 235
Non-controlling
interests 1 - 203 291
---------------------------------------------------------------------------
Net earnings
(loss) for the
period $ 16 $ (21) $ 520 $ 526
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(Unaudited)
(in millions of
U.S. dollars) Health
As at Electronics and
December 31, Manufacturing Healthcare Human Building Insurance
2014 Services Imaging Services Products Services
----------------------------------------------------------------------------
Total assets(d) $ 2,584 $ 1,803 $ 1,110 $ 2,351 $ 5,088
----------------------------------------------------------------------------
Long-term
debt(d)(e) $ - $ 2,115 $ 455 $ 804 $ 2,644
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Unaudited)
(in millions of Packaging
U.S. dollars) Products
As at and
December 31, Services Credit Other Consolidated
2014 (a) Strategies (a)(b) Total
---------------------------------------------------------------------------
Total assets(d) $ 1,037 $ 4,373 $ 10,590 $ 28,936
---------------------------------------------------------------------------
Long-term
debt(d)(e) $ 568 $ 3,431 $ 3,265 $ 13,282
---------------------------------------------------------------------------
---------------------------------------------------------------------------
a. The other segment has been restated to show the results of SGS
International as a new reportable industry segment, packaging products
and services. In addition, the other segment has been restated to show
the results of ResCare as a new reportable industry segment, health and
human services.
b. Includes Tropicana Las Vegas, KraussMaffei, Emerald Expositions, ONCAP
II (Mister Car Wash up to August 2014), ONCAP III, Flushing Town Center,
Meridian Aviation and the parent company. Investments in joint ventures
and associates recorded at fair value include Allison Transmission (up
to June 2014), BBAM, Tomkins (up to April 2014) and certain Onex Real
Estate investments.
c. Represents the after-tax results of Spirit AeroSystems, The Warranty
Group, Skilled Healthcare Group and Sitel Worldwide.
d. The other segment includes Skilled Healthcare Group and Sitel Worldwide,
which were discontinued operations at December 31, 2014.
e. Long-term debt includes current portion, excludes finance leases and is
net of financing charges.
Contacts:
Onex Corporation
Emma Thompson
Managing Director - Investor Relations
416.362.7711
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