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Press release from Marketwire

Onex Reports Second-Quarter 2012 Results

Wednesday, August 08, 2012

Onex Reports Second-Quarter 2012 Results16:00 EDT Wednesday, August 08, 2012TORONTO, ONTARIO--(Marketwire - Aug. 8, 2012) -All amounts in U.S. dollars unless otherwise stated Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the second quarter and six months ended June 30, 2012 and an update on matters following quarter-end. Highlights Onex announced plans to open a London office. Onex and its affiliates (the "Onex Group") completed the sale of Center for Diagnostic Imaging, resulting in a multiple of invested capital of 2.0 times. In the first half of the year, realizations and distributions from operating companies totaled $531 million, of which Onex' share was $173 million. Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 3% and 9%, respectively, in the first six months of 2012. Onex' proprietary capital per share grew by 4% during the first six months of the year to $38.30. At June 30, Onex' unrealized carried interest was $105 million based on the public companies at traded market value and the private companies as valued. In the seven months ended July 31, Onex repurchased 147,900 shares for approximately C$5 million at an average cost per share of C$35.81. At July 31, Onex had no debt at the parent company and approximately $1.5 billion of cash and near-cash investments. Onex is an investor and asset manager generating value from (i) growth in the Company's $4.7 billion of proprietary capital; (ii) management fees associated with $8.2 billion of third-party assets under management; and (iii) a carried interest based on the performance of third-party invested capital. London Office "We're excited about the upcoming opening of our London office. After 28 years acquiring and building businesses with global reach, expanding overseas is a natural progression," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "We believe there will be great investment opportunities for investors like Onex, particularly given the current state of the European financial system and the resulting pressures on businesses. We are fortunate to have two strong investment professionals moving to London to start this office for us." Building Our Businesses During the first half of 2012, realizations and distributions from several of our operating companies totaled $531 million. Including these distributions, the Onex Group has received 59% and 106% of its original equity investments in The Warranty Group and Carestream Health, respectively, and continues to own the businesses. The value of Onex' interest in Onex Partners' and ONCAP's private companies grew by 3% and 9%, respectively, during the first six months of 2012. These returns include realizations and distributions and are based on the valuations reported to our limited partners. Overall, Onex' proprietary capital per share grew by 4% during the first half of 2012. "The current investment pipeline remains relatively strong but also competitive. While we're actively looking for the next great company to own, we know from experience that patience is an integral part of prudence," said Mr. Schwartz. "We've built relationships with the financial and business communities around the world. The toughest part of our job is to find those few opportunities that leverage our active ownership capabilities." 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 approximately $1.5 billion in cash and near-cash investments at the end of July, no debt and approximately $2.4 billion of uncalled committed third-party capital for acquisitions through Onex Partners III and ONCAP III. In addition to investing its capital, Onex uses its cash to repurchase shares under its Normal Course Issuer Bid when the shares are trading at prices that reflect a discount to Onex' view of value. In the first seven months of 2012, Onex repurchased 147,900 shares for approximately C$5 million at an average price of C$35.81 per share. In the 12 months ended July 31, Onex repurchased 2,935,820 shares for approximately C$97 million at an average price of C$33.10 per share. Since inception, Onex has established a strong culture that is based on long-held investing principles. The Company believes that long-term value is best created by enhancing the productivity and profitability of its businesses. By transforming under-valued businesses into industry leaders, Onex has generated a 28-year gross IRR of 28% and an average multiple of 2.8 times invested capital from realized, substantially realized and publicly traded investments. Onex also believes that its success is furthered through strong alignment of interests between Onex shareholders, its limited partners and the management team. At June 30, 2012, the value of the team's investment in Onex' shares and its businesses was approximately $1.5 billion. Asset Management: Manage and Grow Third-Party Capital The management of third-party capital provides Onex with a predictable stream of annual management fees. In 2011, combined management fees and carried interest received more than offset all operating expenses. Today, Onex earns recurring management fees and/or carried interest on $8.2 billion of third-party assets under management. At June 30, 2012, the value of Onex' unrealized carried interest was approximately $39 million based on the traded market values of Onex Partners' public companies and a further $66 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. Consolidated Results Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of its publicly traded and privately held operating companies and varying business cycles at its operating companies. On a consolidated basis for the second quarter, revenues increased 12% to $7.0 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 a consolidated net loss of $167 million compared to net earnings of $1.8 billion in the second quarter of 2011. Net earnings for the second quarter of 2011 included $1.7 billion from discontinued operations relating to the sales of Husky International and Emergency Medical Services Corporation. On a consolidated basis for the six months ended June 30, 2012, revenues increased 16% to $13.8 billion. Net earnings for the period were $12 million compared to $1.6 billion for the six months ended June 30, 2011, which included $1.7 billion from discontinued operations mentioned above. Cash flow from operations was $747 million compared to $16 million for the same period last year. The Company paid a second-quarter dividend of C$0.0275 per Subordinate Voting Share on July 31, 2012 to shareholders of record on July 10, 2012. Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended June 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' $4.7 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 second quarter and six months ended June 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 investment 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 $9.5 billion is third-party capital. As well, Onex invests its own 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.ONEXHow We Are InvestedUnless otherwise noted, all amounts are in millions of U.S. dollars except per share data.Proprietary CapitalAs atJune 30, 2012December 31, 2011Private EquityOnex PartnersPrivate Companies1, 2$1,336$1,847Public Companies2, 3657235Unrealized Carried Interest on Onex Partners Investments410596ONCAP5336319Direct InvestmentsPrivate Companies6204204Public Companies31291302,7672,831Alternative AssetsOnex Real Estate Partners7193 180Onex Credit Partners8137100330280Other Investments8981Cash and Near-Cash91,4761,302Onex Corporation Debt--$4,662$4,494Proprietary Capital per Share (June 30, 2012 - C$39.00; December 31, 2011 - C$37.47)10$38.30$36.85Public Companies As at June 30, 2012Shares Subject to Carried Interest (millions)Shares Held by Onex (millions)Closing Price per Share11Market Value of Onex' InvestmentOnex PartnersSkilled Healthcare Group1210.73.5$6.28$22Spirit AeroSystems1211.96.5$23.83154TMS International1213.29.3$9.9792Allison Transmission2, 1233.523.4$17.56412680Estimated Management Investment Plan Liability(23)657Direct Investments - Celestica-17.813$7.26129$786Significant Private Companies As at June 30, 2012Onex and its Limited Partners OwnershipLTM EBITDA14Net DebtCumulative DistributionsOnex' Economic OwnershipOriginal Cost of Onex' InvestmentOnex PartnersThe Warranty Group92%$10815n/a$28829%$154Carestream Health94%405$1,61950937%186RSI Home Products50%n/an/an/a20%126Tropicana Las Vegas76%(9)53-17%60Tomkins56%683161,802-14%315ResCare98%132344-20%41JELD-WEN61%171701856518-15%17203191,085Direct Investments - Sitel Worldwide68%$125$692$-68%251$1,336Notes to Tables1 Based on the US$ fair value of the investments in Onex Partners' financial statements net of the estimated Management Investment Plan ("MIP") liability on these investments of $26 million (2011 − $33 million). Includes CDI, which was sold in July 2012.2 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 $17 million (2011 − $13 million) and a US$/C$ exchange rate of 1.0181 (2011 - 1.0170).6 Based on the value of the last third-party investment.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 Obligation. Onex Credit Partners' Collateralized Loan Obligation was established in March 2012. Excludes approximately $318 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 approximately $318 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 June 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 adjusted net earnings rather than EBITDA. Net earnings on a U.S. GAAP basis, including the impacts of purchase accounting, were $104 million.16 LTM EBITDA excludes EBITDA from businesses divested as of June 30, 2012.17 Onex and its limited partners interest 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 and certain other limited partners.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.Onex CorporationCONSOLIDATED BALANCE SHEETS(Unaudited) (in millions of U.S. dollars)As at June 30, 2012As at December 31, 2011As at January 1, 2011AssetsCurrent assetsCash and cash equivalents$2,414$2,448$2,532Short-term investments794749715Accounts receivable3,4473,2723,430Inventories4,6844,4284,004Other current assets1,2461,1541,46312,58512,05112,144Property, plant and equipment5,0545,1024,056Long-term investments5,6965,4154,864Other non-current assets1,7331,7761,850Intangible assets2,4592,5992,505Goodwill2,4602,4342,634$29,987$29,377$28,053Liabilities and EquityCurrent liabilitiesAccounts payable and accrued liabilities$3,957$3,893$3,964Current portion of provisions268263257Other current liabilities9799091,225Current portion of long-term debt of operating companies, without recourse to Onex Corporation192482243Current portion of warranty reserves and unearned premiums1,4221,4001,3146,8186,9477,003Non-current portion of provisions204180284Long-term debt of operating companies, without recourse to Onex Corporation7,1396,4796,346Non-current portion of warranty reserves and unearned premiums1,7081,7271,780Other non-current liabilities2,4952,3761,964Deferred income taxes1,0451,059936Limited Partners' Interests5,0004,9805,65024,40923,74823,963EquityShare capital359360373Non-controlling interests3,9793,8573,633Retained earnings and accumulated other comprehensive earnings1,2401,412845,5785,6294,090$29,987$29,377$28,053Onex CorporationCONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)Three months ended June 30Six months ended June 30(in millions of U.S. dollars except per share data)2012201120122011Revenues$7,002$6,229$13,819$11,876Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(5,544 )(5,054 )(10,951 )(9,582 )Operating expenses(837)(696)(1,659)(1,371)Interest income1062017Amortization of property, plant and equipment(154)(106)(294)(212)Amortization of intangible assets and deferred charges(79)(73)(162)(145)Interest expense of operating companies(158)(112)(295)(239)Increase (decrease) in value of investments in associates at fair value, net (358 ) 230 250 400Stock-based compensation expense(46)(68)(134)(156)Other items(76)(5)(121)(65)Impairment of intangible assets and long-lived assets(14)−(16)−Limited Partners' Interests recovery (charge)180(220)(306)(615)Earnings (loss) before income taxes and discontinued operations (74 ) 131 151 (92 )Provision for income taxes(93)(26)(139)(73)Earnings (loss) from continuing operations(167)10512(165)Earnings from discontinued operations−1,656−1,721Net Earnings (Loss) for the Period$(167)$1,761$12$1,556Earnings (Loss) from Continuing Operations attributable to:Equity holders of Onex Corporation$(200)$18$(140)$(322)Non-controlling Interests3387152157Earnings (Loss) from Continuing Operations for the Period$(167)$105$12$(165)Net Earnings (Loss) attributable to:Equity holders of Onex Corporation$(200)$1,666$(140)$1,366Non-controlling Interests3395152190Net Earnings (Loss) for the Period$(167)$1,761$12$1,556Net Earnings (Loss) per Subordinate Voting Share of Onex CorporationBasic and Diluted:Continuing operations$(1.74)$0.15$(1.22)$(2.72)Discontinued operations−13.94−14.27Net Earnings (Loss) for the Period$(1.74)$14.09$(1.22)$11.55Onex CorporationCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)Six months ended June 30(in millions of U.S. dollars)20122011Operating ActivitiesEarnings (loss) for the period from continuing operations$12$(165)Adjustments to earnings (loss) from continuing operations:Provision for income taxes13973Interest income(20)(17)Interest expense of operating companies295239Net earnings (loss) before interest and provision for income taxes426130Cash taxes paid(197)(78)Items not affecting cash and cash equivalents:Amortization of property, plant and equipment294212Amortization of intangible assets and deferred charges162145Amortization of deferred warranty costs2031Increase in value of investments in associates at fair value, net(250)(400)Stock-based compensation expense113126Impairment of intangible assets and long-lived assets16−Limited Partners' Interests charge306615Change in provisions9935Other14(21)1,003795Changes in non-cash working capital items:Accounts receivable(177)(201)Inventories(254)(184)Other current assets35(6)Accounts payable, accrued liabilities and other current liabilities173(507)Decrease in cash and cash equivalents due to changes in working capital items(223)(898)Increase (decrease) in other operating activities(63)1Increase in warranty reserves and premiums3018Cash flows from operating activities of discontinued operations−10074716Financing ActivitiesIssuance of long-term debt2,009447Repayment of long-term debt(1,726)(175)Cash interest paid(240)(186)Cash dividends paid(6)(7)Repurchase of share capital of Onex Corporation(5)(12)Repurchase of share capital of operating companies(123)(28)Financing provided by Limited Partners125156Issuance of share capital by operating companies18148Proceeds from sales of operating investments under continuing control−268Distributions paid to non-controlling interests and Limited Partners(330)(1,172)Change in restricted cash for distribution to Limited Partners(32)(735)Decrease due to other financing activities(33)(28)Cash flows used for financing activities of discontinued operations−(42)(343)(1,366)Investing ActivitiesAcquisition of operating companies, net of cash and cash equivalents in acquired companies of nil (2011 - $44)(49)(268)Purchase of property, plant and equipment(326)(237)Proceeds from sale of investments in associates at fair value326−Cash interest and dividends received610Net purchases of investments and securities(412)(80)Increase (decrease) due to other investing activities19(8)Cash flows from investing activities of discontinued operations−1,992(436)1,409Increase (Decrease) in Cash and Cash Equivalents for the Period(32)59Increase (decrease) in cash due to changes in foreign exchange rates(2)16Cash and cash equivalents, beginning of the period - continuing operations2,4482,053Cash and cash equivalents, beginning of the period - discontinued operations−479Cash and Cash Equivalents Held by Continuing Operations$2,414$2,607Onex CorporationINFORMATION BY INDUSTRY SEGMENT FOR THE THREE MONTHS ENDED JUNE 30, 2012(Unaudited)(in millions of U.S. dollars) Three months ended June 30, 2012ElectronicsManufacturingServicesAerostructuresHealthcareFinancialServicesCustomerCareServicesMetalServicesBuildingProductsOther(a)ConsolidatedTotalRevenues$1,745$1,338$1,249$311$347$669$807$536$7,002Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(1,608)(1,104)(859)(160)(225)(616)(647)(325)(5,544)Operating expenses(60)(46)(236)(99)(91)(15)(113)(177)(837)Interest income1−1−−−−810Amortization of property, plant and equipment(18)(39)(33)(1)(7)(14)(25)(17)(154)Amortization of intangible assets and deferred charges(2)(7)(40)(4)(6)(3)(4)(13)(79)Interest expense of operating companies(2)(28)(57)(1)(34)(5)(15)(16)(158)Decrease in value of investments in associates at fair value, net−−−−−−−(358)(358)Stock-based compensation expense(7)(2)(2)−−(1)(14)(20)(46)Other items(17)(63)(6)2(8)1(4)19(76)Impairment of intangible assets and long-lived assets−−(14)−−−−−(14)Limited Partners' Interests recovery−−−−−−−180180Earnings (loss) before income taxes$32$49$3$48$(24)$16$(15)$(183)$(74)Provision for income taxes(8)(16)(9)(18)(4)(6)(4)(28)(93)Net earnings (loss) for the period$24$33$(6)$30$(28)$10$(19)$(211)$(167)Net earnings (loss) attributable to:Equity holders of Onex Corporation$2$5$(2)$27$(15)$6$(13)$(210)$(200)Non-controlling interests2228(4)3(13)4(6)$(1)$33Net earnings (loss) for the period$24$33$(6)$30$(28)$10$(19)$(211)$(167)(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, Onex Credit Partners' CLO and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments.Onex CorporationINFORMATION BY INDUSTRY SEGMENTFOR THE THREE MONTHS ENDED JUNE 30, 2011(Unaudited)(in millions of U.S. dollars) Three months ended June 30, 2011Electronics Manufacturing Services Aerostructures Healthcare Financial ServicesCustomer Care Services Metal Services Other(a) Consolidated TotalRevenues$1,830$1,465$1,254$298$350$671$361$6,229Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (1,685) (1,300) (862) (145) (229) (624) (209) (5,054)Operating expenses(59)(43)(231)(115)(91)(13)(144)(696)Interest income-11---46Amortization of property, plant and equipment (16) (27) (31) (1) (7) (12) (12) (106)Amortization of intangible assets and deferred charges (3) (8) (43) (5) (6) (3) (5) (73)Interest expense of operating companies(1)(22)(52)(1)(21)(8)(7)(112)Increase in value of investments in associates at fair value, net - - - - - - 230 230Stock-based compensation expense(10)(3)(2)--(2)(51)(68)Other items(3)−(2)3(3)-−(5)Limited Partners' Interests charge------(220)(220)Earnings (loss) before income taxes and discontinued operations 53 63 32 34 (7) 9 (53) 131Recovery of (provision for) income taxes(8)(20)(17)(15)(3)(6)43(26)Earnings (loss) from continuing operations45431519(10)3(10)105Earnings from discontinued operations(b)--570---1,0861,656Net earnings (loss) for the period$45$43$585$19$(10)$3$1,076$1,761Net earnings (loss) attributable to:Equity holders of Onex Corporation$3$3$571$18$(7)$1$1,077$1,666Non-controlling interests4240141(3)2(1)95Net earnings (loss) for the period$45$43$585$19$(10)$3$1,076$1,761(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 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 CorporationINFORMATION BY INDUSTRY SEGMENTFOR THE SIX MONTHS ENDED JUNE 30, 2012(Unaudited)(in millions of U.S. dollars) Six months ended June 30, 2012ElectronicsManufacturingServicesAerostructuresHealthcareFinancialServicesCustomerCareServicesMetalServicesBuildingProductsOther(a)ConsolidatedTotalRevenues$3,436$2,604$2,458$604$711$1,416$1,538$1,052$13,819Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(3,167)(2,115)(1,700)(308)(458)(1,309)(1,255)(639)(10,951)Operating expenses(115)(93)(471)(202)(184)(32)(227)(335)(1,659)Interest income1−2−−−11620Amortization of property, plant and equipment(35)(67)(65)(2)(13)(27)(51)(34)(294)Amortization of intangible assets and deferred charges(5)(14)(82)(8)(13)(6)(8)(26)(162)Interest expense of operating companies(3)(46)(105)(2)(56)(26)(30)(27)(295)Increase in value of investments in associates at fair value, net−−−−−−−250250Stock-based compensation expense(17)(7)(5)−−(1)(14)(90)(134)Other items(16)(60)(9)8(9)1(28)(8)(121)Impairment of intangible assets and long-lived assets−−(14)−(1)−(1)−(16)Limited Partners' Interests charge−−−−−−−(306)(306)Earnings (loss) before income taxes$79$202$9$90$(23)$16$(75)$(147)$151Provision for income taxes(12)(64)−(34)(7)(6)(2)(14)(139)Net earnings (loss) for the period$67$138$9$56$(30)$10$(77)$(161)$12Net earnings (loss) attributable to:Equity holders of Onex Corporation$6$22$7$51$(16)$6$(53)$(163)$(140)Non-controlling interests6111625(14)4(24)2152Net earnings (loss) for the period$67$138$9$56$(30)$10$(77)$(161)$12Total assets$2,951$5,413$4,053$4,834$625$979$2,600$8,532$29,987Long-term debt(b)$−$1,137$2,656$259$717$299$568$1,695$7,331(a)Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, Onex Credit Partner's CLO and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins and certain Onex Real Estate investments.(b)Long-term debt includes current portion, excludes finance leases and is net of financing charges.Onex CorporationINFORMATION BY INDUSTRY SEGMENTFOR THE SIX MONTHS ENDED JUNE 30, 2011(Unaudited)(in millions of U.S. dollars) Six months ended June 30, 2011 Electronics Manufacturing Services Aerostructures Healthcare Financial ServicesCustomer Care Services Metal Services Other(a) Consolidated TotalRevenues$3,630$2,515$2,454$597$693$1,335$652$11,876Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (3,349) (2,190) (1,696) (286) (453) (1,236) (372) (9,582)Operating expenses(118)(85)(462)(221)(183)(29)(273)(1,371)Interest income-12---1417Amortization of property, plant and equipment (31) (53) (63) (2) (15) (24) (24) (212)Amortization of intangible assets and deferred charges (7) (15) (85) (9) (12) (6) (11) (145)Interest expense of operating companies(3)(43)(121)(2)(40)(17)(13)(239)Increase in value of investments in associates at fair value, net - - - - - - 400 400Stock-based compensation expense(27)(6)(3)--(2)(118)(156)Other items(9)1(9)5(7)-(46)(65)Limited Partners' Interests charge------(615)(615)Earnings (loss) before income taxes and discontinued operations 86 125 17 82 (17) 21 (406) (92)Recovery of (provision for) income taxes(11)(36)(26)(27)-(10)37(73)Earnings (loss) from continuing operations7589(9)55(17)11(369)(165)Earnings from discontinued operations(b)--606---1,1151,721Net earnings (loss) for the period$75$89$597$55$(17)$11$746$1,556Net earnings (loss) attributable to:Equity holders of Onex Corporation$6$14$552$50$(12)$9$747$1,366Non-controlling interests6975455(5)2(1)190Net earnings (loss) for the period$75$89$597$55$(17)$11$746$1,556(Unaudited)(in millions of U.S. dollars) As at December 31, 2011 Electronics Manufacturing Services Aerostructures Healthcare Financial Services Customer Care Services Metal Services Building Products Other(a) Consolidated TotalTotal assets$2,970$4,978$4,194$4,808$631$1,045$2,581$8,170$29,377Long-term debt(c)$-$1,157$2,670$203$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 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. FOR FURTHER INFORMATION PLEASE CONTACT: Emma ThompsonOnex CorporationVice President, Investor Relations416.362.7711www.onex.com