TORONTO, ONTARIO — (Marketwired) — 11/14/14 — All amounts in U.S. dollars unless otherwise stated
Onex Corporation (“Onex”) (TSX: OCX) today announced its consolidated financial results for the three and nine months ended September 30, 2014 and an update on matters following quarter-end.
Highlights
Recent Performance
“We–re very happy with the volume and success of realizations this year,” said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. “Our challenge remains to find great businesses at reasonable prices. With a robust pipeline and the recent volatility in the markets, we are hopeful prices moderate and allow us to find some new investment opportunities.”
Onex remains in an excellent position to capitalize on its growing pipeline of investment opportunities. With the York acquisition being the last new investment for Onex Partners III, Onex will begin investing from Onex Partners IV.
Onex management continues to share in the success and failure of our operating companies through the team–s significant investment in everything we buy. At September 30, 2014, the Onex, ONCAP and Onex Credit teams had an investment of $1.9 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 its capital per share by 15% per year. For the twelve months ended September 30, 2014, Onex– capital per share grew by 12% to $52.77 (C$59.10). Onex– second long-term goal is to grow its fee-generating assets by 10% per year. For the twelve months ended September 30, 2014, Onex– fee-generating assets grew by 36% to $13.0 billion. This was primarily the result of raising Onex Partners IV, from which Onex started drawing management fees in August, and Onex Credit–s success with its CLO issuances.
If we are successful in achieving these two 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 our limited partners and other investors. At September 30, 2014, Onex– Subordinate Voting Shares (“SVS”) closed at C$62.36, a 6% decrease in the last quarter, a 9% increase from December 31, 2013, and a 15% increase over the last twelve months. This compares to increases in the S&P 500 of 1%, 7% and 17%, respectively. The S&P/TSX Composite was down 1%, and increased 10% and 17%, respectively.
Onex paid a third-quarter dividend of C$0.05 per SVS on October 31, 2014 to shareholders of record on October 10, 2014.
In the first ten months of 2014, Onex repurchased approximately 2.2 million SVS for a total cost of $131 million (C$142 million), or an average cost per share of C$63.29.
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 decreased 2% to $5.0 billion compared to the same period of the prior year reflecting the sales of businesses noted earlier. Onex reported consolidated net earnings of $388 million compared to $399 million in the third quarter of 2013. Onex– net earnings for third quarter of 2014 include earnings from discontinued operations of $365 million, driven by a gain on the sale of The Warranty Group of $368 million. This compares to a loss of $14 million from discontinued operations for the third quarter of 2013.
On a consolidated basis for the nine months ended September 30, 2014, revenues decreased 2% to $14.6 billion. Net earnings for the period were $526 million compared to a net loss of $590 million for the nine months ended September 30, 2013.
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, 2014 and 2013 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 . Also attached is the “How We Are Invested” schedule, which details Onex– $5.9 billion of proprietary capital and provides private company performance information.
Webcast
Onex management will host a conference call to review Onex– third-quarter 2014 results on Friday, November 14 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode on its website, .
About Onex
With offices in Toronto, New York and London, 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 Partners, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $20 billion of assets under management, including $5.9 billion of Onex capital, in private equity and credit securities. Onex invests its capital directly and as the largest limited partner in each of its Funds.
Onex– businesses have assets of $29 billion, generate annual revenues of $22 billion and employ approximately 200,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at . The Company–s security filings can also be accessed at .
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
Onex Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
Onex Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014
Onex Corporation
INFORMATION BY INDUSTRY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013
Contacts:
Onex Corporation
Emma Thompson
Head of the Funds Group
416.362.7711