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Press release from Marketwire

Onex Reports Third-Quarter 2012 Results

Wednesday, November 07, 2012

Onex Reports Third-Quarter 2012 Results16:00 EST Wednesday, November 07, 2012TORONTO, ONTARIO--(Marketwire - Nov. 7, 2012) -All amounts in U.S. dollars unless otherwise stated Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the third quarter and nine months ended September 30, 2012 and an update on matters following quarter-end. Highlights Onex completed the $813 million acquisition of SGS International, a global leader in design-to-print graphic services to the consumer products packaging industry. Onex agreed to acquire KraussMaffei, a leading manufacturer of plastic and rubber processing equipment, in a transaction valued at EUR568 million. Onex opened an office in London, England to support continued growth of its investing activities. Onex established a strategic partnership with Neil Fiske, an experienced executive in the retail industry. Onex completed the sale of Center for Diagnostic Imaging, resulting in a multiple of invested capital of 2.0 times. Onex Credit Partners priced its second collateralized loan obligation ("CLO") offering in a private placement transaction that will raise $521 million including $26 million from Onex. Including realizations and distributions, the value of Onex' interest in Onex Partners' and ONCAP's private investments grew by 10% and 11%, respectively, in the first nine months of 2012. Overall, Onex' proprietary capital, including $1.5 billion of cash and near-cash items, grew by 7% on a per share basis during the first nine months of the year to $39.38. Acquiring and Building Businesses "The past several months have been busy for us. We announced two acquisitions and continue to broaden our sourcing capabilities," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "The SGS International investment resulted from several years of work in the consumer and packaging industries and KraussMaffei was a joint effort between our Toronto and London teams." Based in Louisville, Kentucky, SGS International provides design-to-print graphic services for multiple packaging variations for food, beverage, personal care and other brands. The company has long-standing relationships with many of the world's leading consumer packaged goods companies and the printers that service them. SGS International has significant growth potential and under Onex' ownership, has already completed one add-on acquisition to extend its service offering to retail point-of-purchase displays and in-store banners. The acquisition of SGS International was completed in mid-October and the equity investment by Onex Partners III was $260 million, of which Onex' share was $66 million as a limited partner in the Fund. Onex Partners III and management of SGS International own 100% of the company. Based in Munich, Germany, KraussMaffei makes machines and systems for forming plastic products used in automotive, consumer packaging and construction applications. The company holds a leading position in many of the segments it serves. Prior to agreeing to acquire KraussMaffei, we worked with the management team to identify meaningful opportunities for improving the operations and free cash flow profile. Onex Partners III is expected to make an equity investment of approximately $340 million, of which Onex' share is $86 million as a limited partner in the Fund. Upon closing, expected by March 31, 2013 and subject to customary conditions and regulatory approvals, Onex Partners III and management of KraussMaffei will own approximately 97% of the company. Including this acquisition, Onex Partners III will be approximately 60% invested.While the private equity origination market has improved this year, it is still very competitive. Although it is difficult to predict investment pace, Onex is well-positioned to respond to opportunities. The parent company continues to be in excellent financial condition with no debt and approximately $1.5 billion of cash and near-cash items at September 30, 2012. Onex now has $2.2 billion of uncalled committed third-party capital for future acquisitions by Onex Partners III and ONCAP III. The outlook for the global economy is still uncertain. Despite the challenging operating environment, Onex' interest in Onex Partners' and ONCAP's private companies grew by 10% and 11%, respectively, during the first nine months of 2012. These increases were achieved by executing our investment theses and creating equity value through cash flow improvements and debt reduction. Overall, Onex' proprietary capital, including $1.5 billion of cash and near-cash items, grew by 7% on a per share basis during the first nine months of the year.By transforming under-valued businesses into industry leaders, Onex has generated a 28-year gross IRR of 28% and an average multiple of 2.9 times invested capital from realized, substantially realized and publicly traded investments. Success is strengthened through a meaningful alignment of interests. At September 30, 2012, the value of the team's investment in Onex' shares and its businesses was approximately $1.5 billion. Managing and Growing Third-Party Capital Onex earns recurring management fees and/or carried interest on $8.3 billion of third-party assets under management. At September 30, 2012, the value of Onex' unrealized carried interest was approximately $49 million based on the traded market values of Onex Partners' public companies and a further $77 million based on the quarter-end valuations of the private businesses. The actual amount of carried interest realized by Onex depends on the ultimate performance of each Fund.In October, Onex Credit Partners priced its second CLO offering, which is expected to close in the fourth quarter of 2012. This private placement will raise $521 million including $26 million from Onex, and will increase Onex Credit Partners' third-party capital under management to $1.8 billion. In the last few years, the market for CLOs has significantly consolidated and favours well-capitalized, diversified sponsors like Onex. We're committed to growing this platform and, as market conditions permit, we expect Onex Credit Partners to launch additional CLOs, which will include investments from Onex. This would represent an additional source of recurring management fee income for Onex. Consolidated Results Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of its publicly traded and privately held operating companies and varying business cycles at its operating companies.On a consolidated basis for the third quarter, revenues increased 12% to $6.7 billion compared to the same period of the prior year. The acquisitions completed in 2011, including JELD-WEN, contributed to this year-over-year revenue increase. Onex reported net earnings of $104 million compared to $184 million in the third quarter of 2011. The decrease in net earnings for the quarter was primarily due to forward-loss charges recorded by Spirit AeroSystems on certain new programs, partially offset by a net gain recorded by Spirit AeroSystems related to an insurance settlement.On a consolidated basis for the nine months ended September 30, 2012, revenues increased 15% to $20.5 billion. Net earnings for the period were $116 million compared to $1.7 billion for the nine months ended September 30, 2011, which included $1.7 billion of earnings relating to the sales of Husky International and Emergency Medical Services Corporation. Cash flow from operations was $1.3 billion for the first nine months of 2012 compared to $481 million for the same period last year.The Company paid a third-quarter dividend of C$0.0275 per Subordinate Voting Share on October 31, 2012 to shareholders of record on October 10, 2012. For the 10-month period ended October 31, 2012, Onex repurchased 438,657 Subordinate Voting Shares under its Normal Course Issuer Bids for a total cost of C$17 million or an average cost per share of C$37.88. Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter and nine months ended September 30, 2012 and 2011 as prepared under International Financial Reporting Standards. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. Also attached is the "How We Are Invested" schedule, which details Onex' $4.8 billion of proprietary capital and provides private company performance information. Webcast Onex management will host a conference call to review the Company's results for the third quarter and nine months ended September 30, 2012 at 4:30 p.m. ET today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com. About Onex Onex is one of North America's oldest and most successful private equity firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. In total, the Company manages approximately $14 billion, of which $9.6 billion is third-party capital. Onex invests its $4.8 billion of proprietary capital directly and as a substantial limited partner in its Funds. Onex' businesses have assets of $39 billion, generate annual revenues of $34 billion and employ approximately 235,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.ONEXHow We Are InvestedUnless otherwise noted, all amounts are in millions of U.S. dollars except per share data.Proprietary CapitalAs atSeptember 30, 2012December 31, 2011Private EquityOnex PartnersPrivate Companies1, 2$1,409$1,847Public Companies2, 3705235Unrealized Carried Interest on Onex Partners Investments412696ONCAP5343319Direct InvestmentsPrivate Companies6162204Public Companies31271302,8722,831Alternative AssetsOnex Real Estate Partners7187180Onex Credit Partners8172100359280Other Investments8881Cash and Near-Cash91,4551,302Onex Corporation Debt--$4,774$4,494Proprietary Capital per Share (September 30, 2012 - C$38.72; December 31, 2011 - C$37.47 10)$39.38 $ 36.85Public CompaniesAs at September 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$6.43$22Spirit AeroSystems1211.96.5$22.21143TMS International1213.29.3$9.9092Allison Transmission2, 1233.523.4$20.12472729Estimated Management Investment Plan Liability(24)705Direct Investments - Celestica-17.813$7.14127$832Significant Private CompaniesAs at September 30, 2012Onex' and its Limited Partners' OwnershipLTM EBITDA14Net DebtCumulative DistributionsOnex' Economic OwnershipOriginal Cost of Onex' InvestmentOnex PartnersThe Warranty Group92%$10815$25015$28829%$154Carestream Health94%4141,57750937%186RSI Home Products50%n/an/an/a20%126Tropicana Las Vegas76%(9)58-17%60Tomkins56%681161,810-14%315ResCare98%132346-20%41JELD-WEN62%171691852918-15%17203191,085Direct Investments - Sitel Worldwide68%$125$698$-68%251$1,336Notes to TablesBased on the US$ fair value of the investments in Onex Partners' financial statements net of the estimated Management Investment Plan ("MIP") liability on these investments of $31 million (2011 − $33 million). CDI, which was sold in July 2012, was included in private companies of Onex Partners at December 31, 2011. 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 $23.00 per share. At December 31, 2011, Allison Transmission was included in private companies of Onex Partners. Based on the closing market values and net of the estimated MIP liability on these investments. Represents Onex' share of the unrealized carried interest on public and private companies in the Onex Partners Funds. Based on the C$ fair value of the investments in ONCAP's financial statements net of the estimated MIP liability on these investments of $18 million (2011 − $13 million) and a US$/C$ exchange rate of 0.9832 (2011 - 1.0170). Based on the estimated value. Based on the carrying value of Onex Real Estate Partners' investments. Based on the market values of investments in Onex Credit Partners' funds and Onex Credit Partners' Collateralized Loan Obligations. Onex Credit Partners' Collateralized Loan Obligations were established in 2012. Excludes $324 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund, which is included with cash and near-cash items. Includes $324 million (2011 − $312 million) invested in a segregated Onex Credit Partners unleveraged senior secured loan strategy fund. Calculated on a diluted basis. Closing prices on September 30, 2012. Excludes Onex' potential participation in the carried interest and includes shares related to the MIP. Excludes shares held in connection with the MIP. 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. Amount presented for The Warranty Group is net earnings rather than EBITDA and total debt rather than net debt. LTM EBITDA excludes EBITDA from businesses divested as of September 30, 2012. Onex' and its limited partners' investment is in convertible preferred shares. The ownership percentage is presented on an as-converted basis. LTM EBITDA and net debt are presented for JELD-WEN Holding, inc. Net debt excludes $119 million of convertible notes held by Onex, Onex Partners III, Onex management, certain limited partners and others. Net of $83 million of the amount originally invested in JELD-WEN that was sold by Onex to certain limited partners and others as a co-investment in February 2012 and $12 million return of capital on the convertible promissory notes to date. Excludes $12 million invested in October 2012 as an add-on acquisition. Onex CorporationCONSOLIDATED BALANCE SHEETS(in millions of U.S. dollars)As at September 30, 2012As at December 31, 2011As at January 1, 2011AssetsCurrent assetsCash and cash equivalents$2,436$2,448$2,532Short-term investments779749715Accounts receivable3,6303,2723,430Inventories4,1564,4284,004Other current assets1,2271,1541,46312,22812,05112,144Property, plant and equipment5,1225,1024,056Long-term investments6,2755,4154,864Other non-current assets1,8511,7761,850Intangible assets2,4252,5992,505Goodwill2,4242,4342,634$30,325$29,377$28,053Liabilities and EquityCurrent liabilitiesAccounts payable and accrued liabilities$3,844$3,893$3,964Current portion of provisions271263257Other current liabilities1,0099091,225Current portion of long-term debt of operating companies, without recourse to Onex Corporation1,361482243Current portion of warranty reserves and unearned premiums1,4331,4001,3147,9186,9477,003Non-current portion of provisions199180284Long-term debt of operating companies, without recourse to Onex Corporation5,8856,4796,346Non-current portion of warranty reserves and unearned premiums1,7261,7271,780Other non-current liabilities2,5382,3761,964Deferred income taxes1,0541,059936Limited Partners' Interests5,2634,9805,65024,58323,74823,963EquityShare capital359360373Non-controlling interests3,9233,8573,633Retained earnings and accumulated other comprehensive earnings1,4601,412845,7425,6294,090$30,325$29,377$28,053Onex CorporationCONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)Three months ended September 30Nine months ended September 30(in millions of U.S. dollars except per share data)2012201120122011Revenues$6,712$6,008$20,531$17,884Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(5,907)(4,766)(16,858)(14,348)Operating expenses(768)(711)(2,427)(2,082)Interest income1913918Amortization of property, plant and equipment(148)(108)(442)(320)Amortization of intangible assets and deferred charges(78)(77)(240)(222)Interest expense of operating companies(117)(112)(412)(351)Increase (decrease) in value of investments in associates at fair value, net365(26)615374Stock-based compensation recovery (expense)(30)66(164)(90)Other gains59−59−Other items183(60)62(125)Impairment of intangible assets and long-lived assets(11)(126)(27)(126)Limited Partners' Interests recovery (charge)(259)184(565)(431)Earnings before income taxes and discontinued operations20273171181Recovery of (provision for) income taxes84(83)(55)(156)Earnings from continuing operations10419011625Earnings (loss) from discontinued operations-(6)-1,715Net Earnings for the Period$104$184$116$1,740Earnings (Loss) from Continuing Operations attributable to:Equity holders of Onex Corporation$175$152$35$(170)Non-controlling Interests(71)3881195Earnings from Continuing Operations for the Period$104$190$116$25Net Earnings (Loss) attributable to:Equity holders of Onex Corporation$175$146$35$1,512Non-controlling Interests(71)3881228Net Earnings for the Period$104$184$116$1,740Net Earnings (Loss) per Subordinate Voting Share of Onex CorporationBasic and Diluted:Continuing operations$1.52$1.29$0.30$(1.44)Discontinued operations-(0.04)-14.25Net Earnings for the Period$1.52$1.25$0.30$12.81Onex CorporationCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)Nine months ended September 30(in millions of U.S. dollars)20122011Operating ActivitiesEarnings for the period from continuing operations$116$25Adjustments to earnings from continuing operations:Provision for income taxes55156Interest income(39)(18)Interest expense of operating companies412351Net earnings before interest and provision for income taxes544514Cash taxes paid(251)(116)Items not affecting cash and cash equivalents:Amortization of property, plant and equipment442320Amortization of intangible assets and deferred charges240222Amortization of deferred warranty costs2841Increase in value of investments in associates at fair value, net(615)(374)Stock-based compensation expense14322Other gains(59)-Impairment of intangible assets and long-lived assets27126Limited Partners' Interests charge565431Change in provisions9767Other14(14)1,1751,239Changes in non-cash working capital items:Accounts receivable(344)(129)Inventories365(243)Other current assets377Accounts payable, accrued liabilities and other current liabilities78(501)Increase (decrease) in cash and cash equivalents due to changes in working capital items136(866)Decrease in other operating activities(68)(14)Increase in warranty reserves and premiums1622Cash flows from operating activities of discontinued operations-1001,259481Financing ActivitiesIssuance of long-term debt2,039471Repayment of long-term debt(1,792)(242)Cash interest paid(325)(295)Cash dividends paid(9)(10)Repurchase of share capital of Onex Corporation(11)(57)Repurchase of share capital of operating companies(145)(52)Financing provided by Limited Partners133788Issuance of share capital by operating companies19148Proceeds from sales of operating investments under continuing control-268Distributions paid to non-controlling interests and Limited Partners(420)(2,155)Change in restricted cash for distribution to Limited Partners-272Decrease due to other financing activities(41)(51)Cash flows used for financing activities of discontinued operations-(42)(552)(957)Investing ActivitiesAcquisition of operating companies, net of cash and cash equivalents in acquired companies of $6 (2011 - 44)(143)(298)Purchase of property, plant and equipment(523)(439)Change in restricted cash for acquisition of an operating company−(860)Proceeds from sale of investments in associates at fair value326−Proceeds from sale of operating investment no longer controlled71-Cash interest received1111Net purchases of investments and securities(489)(112)Increase (decrease) due to other investing activities15(204)Cash flows from investing activities of discontinued operations-2,030(732)128Decrease in Cash and Cash Equivalents for the Period(25)(348)Increase (decrease) in cash due to changes in foreign exchange rates13(5)Cash 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$2,436$2,179Onex CorporationINFORMATION BY INDUSTRY SEGMENTFOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012(Unaudited)(in millions of U.S. dollars)Three months ended September 30, 2012ElectronicsManufacturingServicesAerostructuresHealthcareFinancialServicesCustomerCareServicesMetalServicesBuildingProductsOther(a)ConsolidatedTotalRevenues$1,575$1,368$1,190$295$348$573$813$550$6,712Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(1,444)(1,742)(829)(153)(221)(521)(646)(351)(5,907)Operating expenses(56)(48)(200)(94)(89)(16)(103)(162)(768)Interest income----1-11719Amortization of property, plant and equipment(18)(31)(28)(1)(7)(14)(28)(21)(148)Amortization of intangible assets and deferred charges(3)(7)(39)(3)(5)(3)(6)(12)(78)Interest expense of operating companies(1)(17)(42)(2)(20)(6)(14)(15)(117)Increase in value of investments in associates at fair value, net-------365365Stock-based compensation expense(11)(4)(4)(1)---(10)(30)Other gains-------5959Other items(11)228(5)1(3)(1)(5)(21)183Impairment of intangible assets and long-lived assets--(5)-(1)-(5)-(11)Limited Partners' Interests charge-------(259)(259)Earnings (loss) before income taxes31(253)3842312714020Recovery of (provision for) income taxes1398(14)(14)2(2)13(12)84Net earnings (loss) for the period$44$(155)$24$28$5$10$20$128$104`Net earnings (loss) attributable to:Equity holders of Onex Corporation$5$(24)$20$25$-$6$13$130$175Non-controlling interests39(131)43547(2)(71)Net earnings (loss) for the period$44$(155)$24$28$5$10$20$128$104(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2 and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments.Onex Corporation INFORMATION BY INDUSTRY SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 (Unaudited)(in millions of U.S. dollars) Three months ended September 30, 2011Electronics Manufacturing Services Aerostructures Healthcare Financial ServicesCustomer Care Services Metal Services Other(a) Consolidated TotalRevenues$1,830$1,130$1,242$303$359$707$437$6,008Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (1,684) (920) (857) (152) (231) (658) (264) (4,766)Operating expenses(61)(42)(221)(108)(97)(16)(166)(711)Interest income−−1−−−−1Amortization of property, plant and Equipment (16) (26) (29) (1) (8) (12) (16) (108)Amortization of intangible assets and deferred charges (4) (9) (42) (5) (8) (3) (6) (77)Interest expense of operating companies(2)(19)(50)(1)(20)(8)(12)(112)Decrease in value of investment in associates at fair value, net − − − − − − (26) (26)Stock-based compensation recovery (expense) (8) (4) − − − − 78 66Other items2(2)(24)2(6)1(33)(60)Impairment of goodwill, intangible assets and long-lived assets, net 2 − (120) − − − (8) (126)Limited Partners' Interests charge−−−−−−184184Earnings (loss) before income taxes and discontinued operations 59 108 (100) 38 (11) 11 168 273Provision for income taxes(8)(32)(19)(14)(9)(1)−(83)Earnings (loss) from continuing operations5176(119)24(20)10168190Loss from discontinued operations(b)−−−−−−(6)(6)Net earnings (loss) for the period$51$76$(119)$24$(20)$10$162$184`Net earnings (loss) attributable to:Equity holders of Onex Corporation$5$12$(52)$22$(13)$6$166$146Non-controlling interests4664(67)2(7)4(4)38Net earnings (loss) for the period$51$76$(119)$24$(20)$10$162$184(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments. (b) Discontinued operations includes EMSC in the Healthcare segment (sold in May 2011) and Husky in the Other segment (sold in June 2011). Onex CorporationINFORMATION BY INDUSTRY SEGMENTFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012(Unaudited)(in millions of U.S. dollars) Nine months ended September 30, 2012ElectronicsManufacturingServicesAerostructuresHealthcareFinancialServicesCustomerCareServicesMetalServicesBuildingProductsOther(a)ConsolidatedTotalRevenues$5,011$3,972$3,648$899$1,059$1,989$2,351$1,602$20,531Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges)(4,611)(3,857)(2,529)(461)(679)(1,830)(1,901)(990)(16,858)Operating expenses(171)(141)(671)(296)(273)(48)(330)(497)(2,427)Interest income1-2-1-23339Amortization of property, plant and equipment(53)(98)(93)(3)(20)(41)(79)(55)(442)Amortization of intangible assets and deferred charges(8)(21)(121)(11)(18)(9)(14)(38)(240)Interest expense of operating companies(4)(63)(147)(4)(76)(32)(44)(42)(412)Increase in value of investments in associates at fair value-------615615Stock-based compensation expense(28)(11)(9)(1)-(1)(14)(100)(164)Other gains, net-------5959Other items(27)168(14)9(12)-(33)(29)62Impairment of intangible assets and long-lived assets--(19)-(2)-(6)-(27)Limited Partners' Interests charge-------(565)(565)Earnings (loss) before income taxes110(51)47132(20)28(68)(7)171Recovery of (provision for) income taxes134(14)(48)(5)(8)11(26)(55)Net earnings (loss) for the period$111$(17)$33$84$(25)$20$(57)$(33)$116Net earnings (loss) attributable to:Equity holders of Onex Corporation$11$(2)$27$76$(16)$12$(40)$(33)$35Non-controlling interests100(15)68(9)8(17)-81Net earnings (loss) for the period$111$(17)$33$84$(25)$20$(57)$(33)$116Total assets$2,886$5,339$3,902$4,926$634$993$2,600$9,045$30,325Long-term debt(b)$-$1,135$2,551$259$721$297$544$1,739$7,246(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2 and the parent company. Investments in associates recorded at fair value include Allison Transmission, Hawker Beechcraft, RSI, Tomkins, Cypress and certain Onex Real Estate investments. (b) Long-term debt includes current portion, excludes finance leases and is net of financing charges. Onex Corporation INFORMATION BY INDUSTRY SEGMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 (Unaudited)(in millions of U.S. dollars) Nine months ended September 30, 2011Electronics Manufacturing Services Aerostructures Healthcare Financial ServicesCustomer Care Services Metal Services Other(a) Consolidated TotalRevenues$5,460$3,645$3,696$900$1,052$2,042$1,089$17,884Cost of sales (excluding amortization of property, plant and equipment, intangible assets and deferred charges) (5,033) (3,110) (2,553) (438) (684) (1,894) (636) (14,348)Operating expenses(179)(127)(683)(329)(280)(45)(439)(2,082)Interest income−13−−−1418Amortization of property, plant and Equipment (47) (79) (92) (3) (23) (36) (40) (320)Amortization of intangible assets and deferred charges (11) (24) (127) (14) (20) (9) (17) (222)Interest expense of operating companies(5)(62)(171)(3)(60)(25)(25)(351)Increase in value of investments in associates at fair value, net − − − − − − 374 374Stock-based compensation expense(35)(10)(3)−−(2)(40)(90)Other items(7)(1)(33)7(13)1(79)(125)Impairment of goodwill, intangible assets and long-lived assets, net 2 − (120) − − − (8) (126)Limited Partners' Interests charge−−−−−−(431)(431)Earnings (loss) before income taxes and discontinued operations 145 233 (83) 120 (28) 32 (238) 181Recovery of (provision for) income taxes(19)(68)(45)(41)(9)(11)37(156)Earnings (loss) from continuing operations126165(128)79(37)21(201)25Earnings from discontinued operations(b)−−606−−−1,1091,715Net earnings (loss) for the period$126$165$478$79$(37)$21$908$1,740`Net earnings (loss) attributable to:Equity holders of Onex Corporation$11$26$500$72$(25)$15$913$1,512Non-controlling interests115139(22)7(12)6(5)228Net earnings (loss) for the period$126$165$478$79$(37)$21$908$1,740(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, 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. FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Onex CorporationEmma ThompsonVice President, Investor Relations416.362.7711www.onex.com