Onex Reports Third-Quarter 2017 Results

All amounts in U.S. dollars unless otherwise stated

TORONTO, Nov. 10, 2017 (GLOBE NEWSWIRE) -- Onex Corporation (TSX:ONEX) today announced its consolidated financial results for the third quarter and nine months ended September 30, 2017 and an update on matters following quarter-end.

Highlights

• We raised nearly $7 billion in aggregate commitments for our private equity and credit platforms.
  • Onex Partners V: We surpassed the original $6.5 billion target, raising a total of $6.7 billion in aggregate commitments to date, including $2.0 billion from Onex.
  • Onex Credit Lending Partners I: We raised aggregate commitments of approximately $290 million towards our $500 million target, including $100 million from Onex.
• Year to date, we’ve returned nearly $3 billion to our limited partners, through realizations and distributions, of which Onex’ portion is approximately $875 million, including $101 million of carried interest.
• The value of Onex’ private equity investments increased by 17% during the twelve months ended September 30, 2017, including realizations and distributions.
• We priced our second European collateralized loan obligation for approximately €437 million.  After giving effect to the closing of this offering, our credit platform will manage approximately $9 billion.
• In the ten months ended October 31, 2017, approximately one million Subordinate Voting Shares (“SVS”) were repurchased for a total cost of $78 million (C$103 million), or an average cost per share of C$95.51.

Recent Performance

“While the current investment environment remains challenging, our prudent approach to investing keeps us focused on finding the right opportunities for Onex and our investors,”  said Gerry Schwartz, Chairman and Chief Executive Officer of Onex.

We have approximately $9.6 billion of uncalled fund investor capital available to deploy for new private equity investments, including $3.1 billion of uncalled capital available from Onex.  This capital provides Onex with the strength and flexibility to invest in future opportunities.

Onex management continues to share in the risks and rewards of our businesses through the team’s significant investment in everything Onex owns. At September 30, 2017, the team has approximately $2.1 billion invested in the underlying private equity operating businesses, credit funds and Onex shares.

Creating Value for Shareholders

We create value for shareholders by growing both our capital per share and our fee-generating assets.  For the twelve months ended September 30, 2017 the company’s capital per share increased by 12% to $63.88 and our fee-generating assets increased by 30% to $19.4 billion. The growth in our fee-generating assets was driven by our success in raising ONCAP IV and Onex Partners V.  Over the last five years, Onex’ capital per share grew 10% per year and our fee-generating assets grew by 19% per year.

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 capital for our fund investors.  For the twelve months ended September 30, 2017 our share price increased by 20% (14% in Canadian dollars).

Onex paid a third-quarter dividend of C$0.075 per SVS on October 31, 2017 to shareholders of record on October 10, 2017.

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 by 47% to $6.4 billion compared to the same period of the prior year. The increase was largely due to the inclusion of revenues from the acquisitions of Clarivate Analytics, Parkdean Resorts, Save-A-Lot and WireCo. Net earnings for the third quarter of 2017 were $363 million compared to a loss of $76 million in the same quarter of 2016. This increase in net earnings was primarily attributable to the gain recognized by Carestream Health on the sale of its Dental Digital business and an increase in the fair value of investments in joint ventures and associates.  

On a consolidated basis for the nine months ended September 30, 2017, revenues increased 46% to $18.2 billion as compared to the same period of the prior year. Onex reported consolidated net earnings of $2.1 billion during the first nine months of 2017 compared to $116 million in the same period of 2016. This increase in net earnings was primarily driven by $3.3 billion of gains from the loss of control over JELD-WEN and the sale of USI, partially offset by an increase in the limited partners’ interests charge.

Attached are the unaudited Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the three and nine months ended September 30, 2017 and 2016.  The complete financial statements as prepared under International Financial Reporting Standards applicable to the preparation of interim financial statements, and 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. A supplemental information package, which includes the How We Are Invested schedule, Schedules of Fees and Expenses and additional information, is available on Onex’ website, www.onex.com.

Webcast

Onex management will host a conference call to review Onex’ third-quarter results on Friday, November 10 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. Onex has approximately $30 billion of assets under management, including $6.7 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests alongside its fund investors and is the largest limited partner in each of its private equity funds.

Onex’ businesses have assets of $45 billion, generate annual revenues of $30 billion and employ approximately 161,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com.  Onex’ 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.

Please click here to view the Onex Q3 2017 Financial Statements.

For further information:
Emilie Blouin
Director, Investor Relations
Tel: 416.362.7711