All amounts in U.S. dollars unless otherwise stated
TORONTO, May 11, 2018 (GLOBE NEWSWIRE) -- Onex Corporation (TSX:ONEX) today announced its consolidated financial results for the first quarter ended March 31, 2018 and an update on matters following quarter-end.
Highlights
- We invested and committed to invest nearly $1.3 billion in two private equity investments, of which Onex’ portion is expected to be approximately $415 million:
- SMG Holdings, a leading global manager of convention centers, stadiums, arenas, theatres, performing arts centers and other venues; and
- PowerSchool, a leading education technology platform for K-12 schools.
- We returned approximately $790 million to our limited partners, through realizations and distributions, of which Onex’ portion was approximately $285 million, including $20 million of carried interest:
- We sold Mavis Discount Tire for a gross multiple of capital invested of 3.5 times; and
- We completed a secondary offering for Emerald Expositions and continue to own a majority stake. Our remaining investment is valued at approximately $910 million as of yesterday’s closing price, which reflects a gross multiple of capital invested of 2.4 times, including prior realizations.
- For the twelve months ended March 31, 2018, the manager of Onex Partners, ONCAP and Onex Credit provided a contribution of $58 million as disclosed in the Schedule of Fees and Expenses.
- In the first four months of 2018, 254,328 Subordinate Voting Shares (“SVS”) were repurchased for a total cost of $18 million, or an average cost per share of C$89.34.
- Yesterday, Onex increased its quarterly dividend by 17% to C$0.0875 per SVS beginning with the dividend declared by the Board of Directors payable in July 2018.
Recent Performance
“We’ve had a good start to the year. We found two great businesses to invest in and continued to capitalize on good market conditions by returning meaningful capital to investors,” said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. “Our strong balance sheet and recent fundraising success provides us with the continued strength and flexibility to invest in future opportunities.”
Onex has approximately $9.9 billion of uncalled capital available to deploy for new private equity investments, including $2.8 billion committed by Onex.
Onex management continues to share in the risks and rewards of our businesses through the team’s significant investment in everything Onex owns. 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 March 31, 2018, Onex’ capital per share increased by 6% to $64.01 and our private equity investments grew by 12%. Over the same period, our fee-generating assets increased by 30% to $21.2 billion largely driven by our success in raising Onex Partners V. Over the last five years, Onex’ capital per share and our fee-generating assets grew by 9% and 18% per year, respectively. With larger private equity funds and a growing credit platform, we are well positioned to grow the profitability of our asset management business in the years to come.
Onex paid a first-quarter dividend of C$0.075 per SVS on April 30, 2018 to shareholders of record on April 10, 2018.
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 first quarter, revenues increased by 6% to $6.0 billion compared to the same period of the prior year. The increase was largely due to the inclusion of revenues from the acquisitions of IntraPac, Laces, Parkdean Resorts and SMG. Net loss for the first quarter of 2018 was $164 million compared to $936 million in the same quarter of 2017. The decrease in the net loss was primarily driven by a year-over-year decrease in the limited partners’ interests charge and a loss from discontinued operations recorded in the first quarter of 2017. Prior year comparative information has been restated to conform with IFRS 15, Revenue from Contracts with Customers, which was adopted by Onex retrospectively on January 1, 2018 (refer to Note 1 in the interim consolidated financial statements for further details).
Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarters ended March 31, 2018 and 2017 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. 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’ first-quarter 2018 results on Friday, May 11 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode from the Presentations and Events section of Onex’ shareholder website, https://ir.onex.com/investor-relations. A 90-day on-line replay will be available shortly following the completion of the call.
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 more than $32 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 and the team are collectively the largest investors across Onex’ platforms.
Onex’ businesses have assets of $49 billion, generate annual revenues of $31 billion and employ approximately 207,000 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.
For further information:
Emilie Blouin
Director, Investor Relations
Tel: 416.362.7711
