Onex Reports Full-Year 2012 Results

Onex Reports Full-Year 2012 Results 
TORONTO, ONTARIO -- (Marketwire) -- 02/22/13 --  
All amounts in U.S. dollars unless otherwise stated 
Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated
financial results for the fourth quarter and full year ended December
31, 2012 and an update on matters following year-end. 
Highlights 


 
--  In 2012, Onex Partners acquired four businesses - SGS International,
    KraussMaffei, USI and BBAM - for a total purchase price of $4.2 billion.
    The total equity investment was $1.4 billion, of which Onex' share was
    $457 million.  
    
--  Including realizations and distributions, the value of Onex' interest in
    Onex Partners' and ONCAP's private investments grew by 17% and 23%,
    respectively, in 2012. Overall, Onex' proprietary capital, including
    $1.1 billion of cash and near-cash items, grew by 12% on a per share
    basis to $41.42. 
    
--  Onex opened an office in London, England to support continued growth of
    its investing activities. 
    
--  Onex Credit Partners completed two collateralized loan obligation
    ("CLO") offerings, raising approximately $840 million, including $58
    million from Onex.  
    
--  In March, Allison Transmission completed a $690 million initial public
    offering priced at $23.00 per share compared to Onex' original cost of
    $8.44 per share.  
    
--  In July, Onex completed the sale of Center for Diagnostic Imaging,
    realizing a multiple of invested capital of 2.0 times.  
    
--  In December, Tomkins paid a $1.2 billion distribution, of which Onex'
    share was $171 million, representing 54% of the original equity
    investment. 
    
--  In December, ONCAP acquired Bradshaw International, a designer and
    marketer of everyday houseware products, for an equity investment of $80
    million, of which Onex' share was $24 million.  
    
--  Earlier this month, Onex agreed to sell its 50% interest in RSI Home
    Products, resulting in a multiple of invested capital of 1.5 times. 

 
Acquiring and Building Businesses 
"2012 was a busy year for Onex with the acquisition of five
businesses," said Gerald W. Schwartz, Chairman and Chief Executive
Officer of Onex. "These investments reflect years of effort
evaluating industry sectors and developing relati
onships with
management teams."  
USI, the ninth largest insurance broker in the United States, offers
a broad range of property and casualty, and employee benefits
insurance products to middle-market businesses. Onex' acquisition
follows seven years researching the insurance brokerage sector. USI
has a unique fully-integrated operating model and a proven add-on
acquisition strategy, completing three acquisitions since the closing
of Onex' investment. Onex Partners III invested $510 million, of
which Onex' share was $128 million as a limited partner in the Fund.
Including an additional $126 million co-investment, Onex' initial
investment was $254 million. A process is underway to offer a portion
of the co-investment to third-party limited partners and employees of
USI. 
BBAM is a leading manager of leased commercial aircraft. Over its
23-year history, the company has provided fleet and financing
solutions to over 200 airline customers in more than 50 countries.
BBAM provides asset management services to leasing companies,
aviation investors and financial institutions covering more than 450
aircraft valued in excess of $13 billion. The BBAM investment is a
proprietary opportunity that resulted from several years evaluating
the aircraft leasing sector. Onex Partners III acquired a 50%
interest in BBAM for $165 million, of which Onex' share was $42
million. In connection with this transaction, Onex Part
ners III also
invested $20 million in newly issued shares of FLY Leasing Limited
("FLY") (NYSE:FLY), a global lessor of commercial jet aircraft
managed by BBAM. Onex' share of the investment in FLY was $5 million. 
With no debt and $1.1 billion of cash and near-cash items, Onex is in
a very strong financial position. Onex also has $1.3 billion of
undrawn, committed capital from limited partners in Onex Partners III
and ONCAP III. Combined, we have the resources to pursue just about
any attractive opportunity.  
In 2012, Onex' operating companies paid down approximately $1.8
billion of debt and distributed approximately $1.6 billion, including
a $1.2 billion distribution from Tomkins following the sale of
several non-core assets. Our businesses also made capital
expenditures and add-on acquisitions of approximately $1.1 billion,
including JELD-WEN's acquisition of CraftMaster, the world's
third-largest integrated manufacturer of interior doors and door
facings.  
Onex' interest in Onex Partners' and ONCAP's private companies grew
by 17% and 23%, respectively, in 2012. Overall, Onex' proprietary
capital, including $1.1 billion of cash and near-cash items, grew by
12% on a per share basis during the year.  
By transforming good 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. At Onex, we all share in the success and
failure of our investments. At December 31, 2012, the value of the
Onex team's investment in Onex' shares and its businesses was
approximately $1.7 billion. 
Managing and Growing Third-Party Capital 
Onex earns recurring management fees and/or carried interest on $8.8
billion of third-party assets under management. In 2012, Onex
Partners, ONCAP and Onex Credit Partners earned a total of $113
million in management and other fees. Onex also received $3 million
of carried interest as a result of the realization of Center for
Diagnostic Imaging. Combined fees and carried interest received
offset ongoing operating expenses in 2012.  
At December 31, 2012, the value of Onex' unrealized carried interest
was approximately $50 million based on the traded market values of
Onex Partners' public companies and a further $90 million based on
the year-end valuations of the private businesses. Onex' share of the
total unrealized carried interest grew by $47 million in 2012. The
amount of carried interest ultimately realized by Onex depends on the
overall performance of each Fund.  
With Onex Partners III more than 75% invested, Onex is in a position
to fundraise for Onex Partners IV.  
Onex Credit Partners completed two CLO offerings in 2012, raising
approximately $840 million, including $58 million from Onex. These
CLOs increased Onex Credi
t 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. As market conditions permit, we expect Onex
Credit Partners to launch additional CLOs, which would represent an
additional source of recurring management fees.  
Creating Value for Shareholders 
Over time, we hope that the value of Onex' shares reflects both
growth in the value of our assets and the intrinsic value of our
asset management capabilities. At December 31, 2012 Onex' Subordinate
Voting Shares closed at C$41.87, a 26% increase from December 31,
2011. This compares to a 13% increase in the S&P 500 and a 4%
increase in the S&P/TSX Composite Index.  
The Company paid a fourth-quarter dividend of C$0.0275 per
Subordinate Voting Share on January 31, 2013 to shareholders of
record on January 10, 2013.  
In 2012, Onex repurchased 627,061 Subordinate Voting Shares under its
Normal Course Issuer Bids for a total cost of C$24 million or an
average cost per share of C$38.59. In January 2013, Onex repurchased
545,400 shares for a total cost of C$23 million or an average cost
per share of C$42.51.  
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 fourth quarter, revenues increased 2%
to $6.9 billion compared to the same period of the prior year. Onex
reported a consolidated net loss of $77 million compared to a loss of
$113 million in the fourth quarter of 2011. Cash from operations was
$784 million in the fourth quarter of 2012 compared to $707 million
in 2011.  
On a consolidated basis for the full year ended December 31, 2012,
revenues increased 11% to $27.4 billion. The acquisitions completed
in 2011, including JELD-WEN, contributed to this year-over-year
revenue increase. Net earnings for the year were $39 million compared
to $1.6 billion for 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 $2.0 billion in
2012 compared to $1.2 billion in the prior year. 
Attached are the Consolidated Balance Sheets, Statements of Earnings,
Statements of Cash Flows and information by industry segment for the
full year ended December 31, 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 are the "How We
Are Invested" schedule, which details Onex' $5.0 billion of
proprietary capital and provides private company performance
information, and the Schedule of Fees and Expenses. 
Webcast 
Onex management will host a conference call to review Onex' fiscal
2012 results on Friday, February 22 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 
With offices in Toronto, New York and London, Onex is one of the
oldest and most successful private equity firms. Onex acquires and
builds high-quality businesses in partnership with talented
management teams. The Company has approximately $15 billion of assets
under management, including $5 billion of proprietary capital, in
private equity, credit securities and real estate. Onex invests its
proprietary capital directly and as a substantial limited partner in
its Funds.  
Onex' businesses have assets of $43 billion, generate annual revenues
of $37 billion and employ approximately 250,000 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. 


 
                                                                            
How We Are Invested                                                         
Unless otherwise noted, all amounts are in millions of U.S. dollars except  
 per share data.                                                            
                                                               Proprietary  
                                                                 Capital    
As at December 31                                               2012    2011
-------------------------------------------
---------------------------------
Private Equity                                                              
Onex Partners                                                               
  Private Companies(1),(2)                                   $ 1,862 $ 1,847
  Public Companies(2),(3)                                        704     235
  Unrealized Carried Interest on Onex Partners                              
   Investments(4)                                                140      96
ONCAP(5)                                                         409     319
Direct Investments                                                          
  Private Companies(6)                                           148     204
  Public Companies(3)                                            145     130
----------------------------------------------------------------------------
                                                               3,408   2,831
----------------------------------------------------------------------------
                                                                            
Onex Real Estate Partners(7)                                     192     180
Onex Credit Partners(8)                                          171     100
----------------------------------------------------------------------------
                                                                 363     280
----------------------------------------------------------------------------
Other Investments                                                108      81
Cash and Near-Cash(9)                                          1,141   1,302
Onex Corporation Debt                                              -       -
----------------------------------------------------------------------------
                                                             $ 5,020 $ 4,494
----------------------------------------------------------------------------
Proprietary Capital per Share (December 31, 2012 - C$41.21;                 
 December 31, 2011 - C$37.47)(10)                            $ 41.42 $ 36.85
----------------------------------------------------------------------------
 

 
                                                                            
Public Companies                                                            
                                     Shares                                 
                                    Subject     Shares   Closing     Market 
                                 to Carried    Held by     Price   Value of 
                                   Interest       Onex       per      Onex' 
As at December 31, 2012          (millions) (millions) Share(11) Investment 
----------------------------------------------------------------------------
Onex Partners                                                               
 Skilled Healthcare Group(12)          10.7        3.5 $    6.37 $       22 
 Spirit AeroSystems(12)                11.9        6.5 $   16.97        110 
 TMS International(12)                 13.2        9.3 $   12.52        116 
 Allison Transmission(2),(12)          33.5       23.4 $   20.42        479 
----------------------------------------------------------------------------
                                                                        727 
 Estimated Management Investment Plan Liability                         (23)
----------------------------------------------------------------------------
                                                                        704 
Direct Investments - Celestica            -   17.8(13) $    8.15        145 
----------------------------------------------------------------------------
                                                                 $      849 
----------------------------------------------------------------------------
 

 
                                                                            
Significant Private Companies                                               
                                                                            
                  Onex'                                                     
                    and                                                     
                    its                                                Orig-
                  Limi-                                                 inal
                    ted                                     Onex'       Cost
                  Part-                              Cumu-   Eco-         of
                  ners'                             lative  nom
ic      Onex'
As at December   Owner-          LTM         Net   Distri- Owner-    Invest-
 31, 2012          ship   EBITDA(14)        Debt   butions   ship       ment
                ------------------------------------------------------------
Onex Partners                                                               
  The Warranty                                                              
   Group             91%   $ 111(15)   $ 249(15) $     338     29% $     154
  Carestream                                                                
   Health            93%         429       1,509       561     37%       186
  RSI Home                                                                  
   Products          50%         n/a         n/a       n/a     20%       126
  Tropicana Las                                                             
   Vegas             83%        (10)          33         -     18%        70
  Tomkins            56%     512(16)       1,482     1,180     14%       315
  ResCare            98%         138         341         -     20%        41
  JELD-WEN       64(17)%     188(18)     540(18)         - 16(17)%   213(19)
  SGS                                                                       
   International     94%     104(20)         592         -     24%        66
  USI                93%     255(20)       1,633         -     37%   254(21)
  BBAM               50%          73           -         -     13%    47(22)
  KraussMaffei       97% EUR     100 EUR     235         -     25%        90
----------------------------------------------------------------------------
                                                                       1,562
----------------------------------------------------------------------------
Direct                                                                      
 Investments -                                                              
 Sitel Worldwide     70%   $     125   $     725 $       -     70%       251
----------------------------------------------------------------------------
                                                                   $   1,813
----------------------------------------------------------------------------
                                                                            
                                                                            
Notes to Tables                                                             
                                                                            
(1)  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 $39 million (2011 - $33      
     million). CDI, which was sold in July 2012, was included in private    
     companies of Onex Partners at December 31, 2011.                       
                                                                            
(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, whereas it is included in public   
     companies at December 31, 2012.                                        
                                                                            
(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  
     $25 million (2011 - $13 million) and a US$/C$ exchange rate of 0.9949  
     (2011 - 1.0170).                                                       
                                                                            
(6)  Based on the fair value.                                               
                                                                            
(7)  Based on the fair 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 Obligations. Onex  
     Credit Partners' Collateralized Loan Obligations were established in   
     2012. Excludes $328 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 $328 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 December 31, 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 net earnings rather than    
     EBITDA and total debt rather than net debt.                            
                                                                            
(16) LTM EBITDA excludes EBITDA from businesses divested as of December 31, 
     2012.                                                                  
                                                                            
(17) Onex' and its limited partners' investment 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 $128 million of convertible notes, including accrued     
     interest, held by Onex, Onex Partners III, Onex management, certain    
     limited partners and others.                                           
                                                                            
(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 $14 million return of capital on the   
     convertible promissory notes to date.                                  
                                                                            
(20) LTM EBITDA for SGS International and USI are presented on a pro-forma  
     basis to reflect the impact of acquired businesses.                    
                                                                            
(21) Onex' investment in USI includes $126 million as a co-investment.      
                                                                            
(22) Included in Onex' cost is $5 million that was invested in FLY Leasing  
     Limited (NYSE:FLY) in conjunction wi
th the investment in BBAM.         
                                                                            
Schedule of Fees and Expenses                                               
                                                    Year ended December 31, 
(USD Millions)                                             2012         2011
----------------------------------------------------------------------------
                                                                            
Revenue Items                                                               
                                                                            
   Management and Advisory Fees(1)                                          
     Base Management Fees                           $       108 $        110
     Transaction Fees, Net                                    5            -
----------------------------------------------------------------------------
     Total Management and Advisory Fees                     113          110
   Carried Interest and Performance Fees                                    
    Received(2)                                               6           72
   Interest and Other Treasury Income(3)                     39            8
----------------------------------------------------------------------------
Total                                                       158          190
----------------------------------------------------------------------------
                                                                            
Expense Items(4)                                                           
   Compensation                                                             
     Base Compensation (incl. benefits)                      29           29
     Variable Compensation                                   67           88
----------------------------------------------------------------------------
                                                             96          117
   Other Expense Items, Net                                  21           33
----------------------------------------------------------------------------
Total                                                       117          150
----------------------------------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
Net Amount                                          $        41 $         40
----------------------------------------------------------------------------
                                                                            
                                                                            
(1)The management fees include those from the third-party investors in the  
    Onex Partners and ONCAP private equity funds, those earned by Onex      
    Credit Partners manager and Onex' retained portion of the management    
    fees from operating companies.                                          
                                                                            
(2)Carried interest and performance fees received are on a cash received    
    basis.                                                                  
                                                                            
(3)Interest and other treasury income includes the returns on Onex'         
    investment as a limited partner in Onex Credit Partners Funds and the   
    interest earned on Onex' cash balance.                                  
                                                                            
(4)Expenses include those of the Onex corporate office, ONCAP, Onex Credit  
    Partners and Onex Real Estate Partners. There is no allocation of the   
    expenses to the management of Onex' $5.0 billion of proprietary capital.
    The expenses exclude stock-based compensation.                          
 

 
                                                                            
                              Onex Corporation                              
                        CONSOLIDATED BALANCE SHEETS                         
 

 
(Unaudited)                              As at           As at         As at
                                  December 31,    December 31,    January 1,
(in millions of U.S. dollars)             2012            2011          2011
----------------------------------------------------------------------------
Assets                                                                      
Current assets                                                              
Cash and cash equivalents         $      2,656    $      2,448    $    2,532
Short-term investments                     730             749           715
Accounts receivable                      3,858           3,272         3,430
Inventories                              4,519           4,428         4,004
Other current assets                     1,443           1,154         1,463
----------------------------------------------------------------------------
                                        13,206          12,051        12,144
Property, plant and equipment            5,495           5,102         4,056
Long-term investments                    6,424           5,415         4,864
Other non-current assets                 1,986           1,776         1,850
Intangible assets                        4,833           2,599         2,505
Goodwill                                 4,358           2,434         2,634
----------------------------------------------------------------------------
                                  $     36,302    $     29,377    $   28,053
----------------------------------------------------------------------------
Liabilities and Equity                                                      
Current liabilities                                                         
Accounts payable and accrued                                                
 liabilities                      $      4,549    $      3,893    $    3,964
Current portion of provisions              347             263           257
Other current liabilities                1,340             909         1,225
Current portion of long-term                                                
 debt of operating companies,                                               
 without recourse to Onex                                                   
 Corporation                               286             482           243
Current portion of warranty                                                 
 reserves and unearned                                                      
 premiums                                1,366           1,400         1,314
----------------------------------------------------------------------------
                                         7,888           6,947         7,003
Non-current portion of                                                      
 provisions                                264             180           284
Long-term debt of operating                                                 
 companies, without recourse                                                
 to Onex Corporation                    10,184           6,479         6,346
Non-current portion of                                                      
 warranty reserves and                                                      
 unearned premiums                       1,774           1,727         1,780
Other non-current liabilities            2,860           2,376         1,964
Deferred income taxes                    1,683           1,059           936
Limited Partners' Interests              6,208           4,980         5,650
----------------------------------------------------------------------------
                                        30,861          23,748        23,963
----------------------------------------------------------------------------
Equity                                                                      
Share capital                              358             360           373
Non-controlling interests                3,816           3,857         3,633
Retained earnings and                                                       
 accumulated other                                                          
 comprehensive earnings                  1,267           1,412            84
----------------------------------------------------------------------------
                                         5,441           5,629         4,090
----------------------------------------------------------------------------
                                  $     36,302    $     29,377    $   28,053
----------------------------------------------------------------------------
                          
                                                  
                                                                            
                              Onex Corporation                              
                    CONSOLIDATED STATEMENTS OF EARNINGS                     
                                                                            
Year ended December 31                                                      
(in millions of U.S. dollars except per share data)          2012      2011 
----------------------------------------------------------------------------
Revenues                                                 $ 27,443  $ 24,642 
Cost of sales (excluding amortization of property, plant                    
 and equipment, intangible assets and deferred charges)   (22,218)  (19,725)
Operating expenses                                         (3,313)   (2,924)
Interest income                                                60        32 
Amortization of property, plant and equipment                (595)     (462)
Amortization of intangible assets and deferred charges       (330)     (311)
Interest expense of operating companies                      (553)     (488)
Increase in value of investments in joint ventures and                      
 associates at fair value, net                                863       501 
Stock-based compensation expense                             (241)     (133)
Other gains                                                    59         - 
Other items                                                   (45)     (160)
Impairment of goodwill, intangible assets and long-lived                    
 assets, net                                                  (65)     (197)
Limited Partners' Interests charge                           (929)     (627)
----------------------------------------------------------------------------
Earnings before income taxes and discontinued operations      136       148 
Provision for income taxes                                    (97)     (236)
----------------------------------------------------------------------------
Earnings (loss) from continuing operations                     39       (88)
Earnings from discontinued operations                           -     1,715 
----------------------------------------------------------------------------
Net Earnings for the Year                                $     39  $  1,627 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Earnings (Loss) from Continuing Operations attributable                     
 to:                                                                        
Equity holders of Onex Corporation                       $   (121) $   (356)
Non-controlling Interests                                     160       268 
----------------------------------------------------------------------------
Earnings (Loss) from Continuing Operations for the Year  $     39  $    (88)
----------------------------------------------------------------------------
                                                                            
                                                                            
Net Earnings (Loss) attributable to:                                        
Equity holders of Onex Corporation                       $   (121) $  1,326 
Non-controlling Interests                                     160       301 
----------------------------------------------------------------------------
Net Earnings for the Year                                $     39  $  1,627 
----------------------------------------------------------------------------
                                                                            
                                                                            
Net Earnings (Loss) per Subordinate Voting Share of Onex                    
 Corporation                                                                
Basic and Diluted:                                                          
  Continuing operations                                  $  (1.05) $  (3.03)
  Discontinued operations                                       -     14.33 
----------------------------------------------------------------------------
Net Earnings (Loss) for the Year                         $  (1.05) $  11.30 
----------------------------------------------------------------------------
                                                                            
                                                                            
                              Onex Corporation                              
                   CONSOLIDATED STATEMENTS OF CASH FLOWS                    
                                                                            
Year ended December 31 (in millions of U.S. dollars)         2012      2011 
----------------------------------------------------------------------------
Operating Activities                                                        
Earnings (loss) for the year from continuing operations  $     39  $    (88)
Adjustments to earnings (loss) from continuing                              
 operations:                                                                
  Provision for income taxes                                   97       236 
  Interest income                                             (60)      (32)
  Interest expense of operating companies                     553       488 
----------------------------------------------------------------------------
Net earnings before interest and provision for income                       
 taxes                                                        629       604 
Cash taxes paid                                              (302)     (161)
Items no
t affecting cash and cash equivalents:                              
  Amortization of property, plant and equipment               595       462 
  Amortization of intangible assets and deferred charges      330       311 
  Amortization of deferred warranty costs                      32        50 
  Increase in value of investments in joint ventures and                    
   associates at fair value, net                             (863)     (501)
  Stock-based compensation expense                            213        62 
  Other gains                                                 (59)        - 
  Impairment of goodwill, intangible assets and long-                       
   lived assets                                                65       197 
  Limited Partners' Interests charge                          929       627 
  Change in provisions                                         93        89 
  Other                                                        69        (6)
----------------------------------------------------------------------------
                                                            1,731     1,734 
Changes in non-cash working capital items:                                  
  Accounts receivable                                         (23)        1 
  Inventories                                                 377      (162)
  Other current assets                                         22         3 
  Accounts payable, accrued liabilities and other                           
   current liabilities                                         15      (457)
----------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents due to                     
 changes in working capital items                             391      (615)
Decrease in other operating activities                       (101)      (58)
Increase in warranty reserves and premiums                     22        27 
Cash flows from operating activities of discontinued                        
 operations                                                     -       100 
----------------------------------------------------------------------------
                                                            2,043     1,188 
----------------------------------------------------------------------------
Financing Activities                                                        
Issuance of long-term debt                                  2,632       594 
Repayment of long-term debt                                (1,882)     (460)
Cash interest paid                                           (476)     (411)
Cash dividends paid                                           (12)      (13)
Repurchase of share capital of Onex Corporation               (24)     (105)
Repurchase of share capital of operating companies           (340)     (149)
Financing provided by Limited Partners                      1,311       932 
Issuance of share capital by operating companies               34       151 
Proceeds from sales of operating investments under                          
 continuing control                                             -       268 
Distributions paid to non-controlling interests and                         
 Limited Partners                                            (982)   (2,248)
Change in restricted cash for distribution to Limited                       
 Partners                                                     (35)      272 
Decrease due to other financing activities                    (51)      (52)
Cash flows used for financing activities of discontinued                    
 operations                                                     -       (42)
----------------------------------------------------------------------------
                                                              175    (1,263)
----------------------------------------------------------------------------
Investing Activities                                                        
Acquisition of operating companies, net of cash and cash                    
 equivalents in acquired companies of $275 (2011 - $191)   (1,393)   (1,155)
Purchase of property, plant and equipment                    (723)     (646)
Proceeds from sale of investment in associates at fair                      
 value                                                        326         - 
Proceeds from sale of operating investment no longer                        
 controlled                                                    71         - 
Distributions received from investments in associates of                    
 Onex Partners                                                676        38 
Purchase of investments in associates of Onex Partners       (165)        - 
Cash interest received                                         19        45 
Net purchases of investments and securities                  (787)      (91)
Decrease due to other investing activities                    (39)     (233)
Cash flows from investing activities of discontinued                        
 operations                                                     -     2,030 
----------------------------------------------------------------------------
                                                           (2,015)      (12)
----------------------------------------------------------------------------
Increase (decrease) in Cash and Cash Equivalents for the                    
 Year                                                         203       (87)
Increase in cash due to changes in foreign exchange                         
 rates                                                          5         3 
Cash and cash equivalents, beginning of the year -                          
 continuing operations                                      2,448     2,053 
Cash and cash equivalents, beginning of the year -                          
 discontinued operations                                        -       479 
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing Operations  $  2,656  $  2,448 
----------------------------------------------------------------------------
 

 
                                                                            
                              Onex Corporation                              
                       INFORMATION BY INDUSTRY SEGMENT                      
                    FOR THE YEAR ENDED DECEMBER 31, 2012                    
                                                                            
----------------------------------------------------------------------------
                      Electronics                                           
                    Manufacturing                                 Insurance 
                         Services  Aerostructures   Healthcare     Provider 
----------------------------------------------------------------
------------
Revenues            $       6,507  $        5,404  $     4,947  $     1,205 
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible assets                                                          
 and deferred                                                               
 charges)                  (5,988)         (5,038)      (3,401)        (621)
Operating expenses           (226)           (202)        (885)        (402)
Interest income                 1               -            3            - 
Amortization of                                                             
 property, plant                                                            
 and equipment                (70)           (130)        (128)          (4)
Amortization of                                                             
 intangible assets                                                          
 and deferred                                                               
 charges                      (11)            (29)        (160)         (15)
Interest expense of                                                         
 operating                                                                  
 companies                     (5)            (83)        (191)          (5)
Increase in value                                                           
 of investments in                                                          
 joint ventures and                                                         
 associates at fair                                                         
 value, net                     -               -            -            - 
Stock-based                                                                 
 compensation                                                               
 expense                      (36)            (16)         (11)          (2)
Other gains                     -               -            -            - 
Other items                   (42)            150          (42)          11 
Impairment of                                                               
 goodwill,                                                                  
 intangible assets                                                          
 and long-lived                                                             
 assets                       (18)             (2)         (17)          (4)
Limited Partners'                                                           
 Interests charge               -               -            -            - 
----------------------------------------------------------------------------
Earnings (loss)                                                             
 before income                                                              
 taxes                        112              54          115          163 
Recovery of                                                                 
 (provision for)                                                            
 income taxes                   6               8          (44)         (54)
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year       $         118  $           62  $        71  $       109 
----------------------------------------------------------------------------
Total assets        $       2,659  $        5,371  $     3,971  $     4,903 
----------------------------------------------------------------------------
Long-term debt(b)   $          55  $        1,133  $     2,540  $       258 
----------------------------------------------------------------------------
Property, plant and                                                         
 equipment                                                                  
 additions          $          98  $          225  $       120  $         4 
----------------------------------------------------------------------------
Intangible assets                                                           
 with indefinite                                                            
 life               $           -  $            -  $       256  $        16 
----------------------------------------------------------------------------
Goodwill additions                                                          
 from acquisitions  $          26  $            -  $        23  $         - 
----------------------------------------------------------------------------
Goodwill            $          60  $            3  $       852  $       304 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 attributable to:                                                           
Equity holders of                                                           
 Onex Corporation   $          13  $           10  $        18  $        62 
Non-controlling                                                             
 interests                    105              52           53           47 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year       $         118  $           62  $        71  $       109 
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
                    Customer                                                
                        Care      Metal   Building             Consolidated 
                    Services   Services   Products   Other(a)         Total 
----------------------------------------------------------------------------
Revenues           $   1,429  $   2,526  $   3,168  $   2,257  $     27,443 
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible assets                                                          
 and deferred                                                               
 charges)               (920)    (2,316)    (2,556)    (1,378)      (22,218)
Operating expenses      (368)       (64)      (448)      (718)       (3,313)
Interest income            1          -          3         52            60 
Amortization of                                                             
 property, plant                                                            
 and equipment           (29)       (57)      (101)       (76)         (595)
Amortization of                                                             
 intangible assets                                                          
 and deferred                                                               
 charges                 (25)       (12)       (19)       (59)         (330)
Interest expense of                                                         
 operating                                                                  
 companies              (100)       (39)       (63)       (67)         (553)
Increase in value                                                           
 of investments in                                                          
 joint ventures and                                                         
 associates at fair                                                         
 value, net                -          -          -        863           863 
Stock-based                                                                 
 compensation                                                               
 expense                  (1)        (2)       (17)      (156)         (241)
Other gains                -          -          -         59            59 
Other items               (4)         1        (33)       (86)          (45)
Impairment of                                                               
 goodwill,                                                                  
 intangible assets                                                          
 and long-lived                                                           
  
 assets                    -          -         (7)       (17)          (65)
Limited Partners'                                                           
 Interests charge          -          -          -       (929)         (929)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 before income                                                              
 taxes                   (17)        37        (73)      (255)          136 
Recovery of                                                                 
 (provision for)                                                            
 income taxes             (3)       (11)        12        (11)          (97)
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year      $     (20) $      26  $     (61) $    (266) $         39 
----------------------------------------------------------------------------
Total assets       $     632  $     989  $   2,626  $  15,151  $     36,302 
----------------------------------------------------------------------------
Long-term debt(b)  $     725  $     306  $     547  $   4,906  $     10,470 
----------------------------------------------------------------------------
Property, plant and                                                         
 equipment                                                                  
 additions         $      23  $     115  $      91  $      81  $        757 
----------------------------------------------------------------------------
Intangible assets                                                           
 with indefinite                                                            
 life              $      36  $       -  $     259  $     548  $      1,115 
----------------------------------------------------------------------------
Goodwill additions                                                          
 from acquisitions $       -  $       -  $       -  $   1,983  $      2,032 
----------------------------------------------------------------------------
Goodwill           $     118  $     240  $     113  $   2,668  $      4,358 
----------------------------------------------------------------------------
                   `                                                        
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 attributable to:                                                           
Equity holders of                                                           
 Onex Corporation  $     (14) $      15  $     (43) $    (182) $       (121)
Non-controlling                                                             
 interests                (6)        11        (18)       (84)          160 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year      $     (20) $      26  $     (61) $    (266) $         39 
----------------------------------------------------------------------------
                                                                            
(a) Includes Tropicana Las Vegas, SGS International, USI, KraussMaffei,     
    ONCAP II, ONCAP III, Flushing Town Center, OCP CLO-1, OCP CLO-2 and the 
    parent company. Investments in joint ventures and associates recorded at
    fair value include Allison Transmission, BBAM, 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 YEAR ENDED DECEMBER 31, 2011                    
                                                                            
----------------------------------------------------------------------------
                      Electronics                                           
                    Manufacturing                                 Insurance 
                         Services  Aerostructures   Healthcare     Provider 
----------------------------------------------------------------------------
Revenues            $       7,213  $        4,864  $     5,030  $     1,184 
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible assets                                                          
 and deferred                                                               
 charges)                  (6,645)         (4,124)      (3,446)        (579)
Operating expenses           (234)           (178)        (918)        (432)
Interest income                 1               -            4            - 
Amortization of                                                             
 property, plant                                                            
 and equipment                (64)           (107)        (126)          (5)
Amortization of                                                             
 intangible assets                                                          
 and deferred                                                               
 charges                      (14)            (41)        (168)         (18)
Interest expense of                                                         
 operating                                                                  
 companies                     (6)            (77)        (221)          (4)
Increase in value                                                           
 of investments in                                                          
 joint ventures and                                                         
 associates at fair                                                         
 value, net                     -               -            -            - 
Stock-based                                                                 
 compensation                                                               
 expense                      (44)            (14)          (9)           - 
Other items                    (8)              1          (42)           9 
Impairment of                                                               
 goodwill,                                                                  
 intangible assets                                                          
 and                                                                        
long-lived assets,                                                          
 net                            -               -         (129)         (40)
Limited Partners'                                                           
 Interests charge               -               -            -            - 
----------------------------------------------------------------------------
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 
 operations                   199             324          (25)         115 
Recovery of                                                                 
 (provision for)                                                            
 income taxes                  (4)           (100)         (87)         (55)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 from continuing                                                            
 operations                   195             224         (112)          60 
Earnings from                                                               
 discontinued                                                               
 operations(b)                  -               -          606            - 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year       $         195  $          224  $       494  $        60 
----------------------------------------------------------------------------
Total assets        $       2,970  $        4,978  $     4,194  $     4,808 
----------------------------------------------------------------------------
Long-term debt(c)   $           -  $        1,157  $     2,670  $       203 
----------------------------------------------------------------------------
Property, plant and                                                         
 equipment                                                                  
 additions          $          60  $          275  $        96  $         3 
----------------------------------------------------------------------------
Intangible assets                                                           
 with indefinite                                                            
 life               $           -  $            -  $       258  $        16 
----------------------------------------------------------------------------
Goodwill additions                                                          
 from acquisitions  $          34  $            -  $        41  $         - 
----------------------------------------------------------------------------
Goodwill            $          48  $            3  $       911  $       304 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 attributable to:                                                           
Equity holders of                                                           
 Onex Corporation   $          17  $           35  $       512  $        58 
Non-controlling                                                             
 interests                    178             189          (18)           2 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year       $         195  $          224  $       494  $        60 
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
                    Customer                                                
                        Care      Metal   Building             Consolidated 
                    Services   Services   Products   Other(a)         Total 
----------------------------------------------------------------------------
Revenues           $   1,416  $   2,661  $     774  $   1,500  $     24,642 
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible assets                                                          
 and deferred                                                               
 charges)               (921)    (2,467)      (660)      (883)      (19,725)
Operating expenses      (377)       (59)      (118)      (608)       (2,924)
Interest income            -          -          1         26            32 
Amortization of                                                             
 property, plant                                                            
 and equipment           (34)       (47)       (25)       (54)         (462)
Amortization of                                                             
 intangible assets                                                          
 and deferred                                                               
 charges                 (28)       (13)        (5)       (24)         (311)
Interest expense of                                                         
 operating                                                                  
 companies               (85)       (34)       (17)       (44)         (488)
Increase in value                                                           
 of investments in                                                          
 joint ventures and                                                         
 associates at fair                                                         
 value, net                -          -          -        501           501 
Stock-based                                                                 
 compensation                                                               
 expense                   -         (2)         -        (64)         (133)
Other items              (20)         1        (19)       (82)         (160)
Impairment of                                                               
 goodwill,                                                                  
 intangible assets                                                          
 and                                                                        
long-lived assets,                                                          
 net                       -          -        (22)        (6)         (197)
Limited Partners'                                                           
 Interests charge          -          -          -       (627)         (627)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 operations              (49)        40        (91)      (365)          148 
Recovery of                                                                 
 (provision for)                                                            
 income taxes             (9)       (16)         2         33          (236)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 from continuing                                                            
 operations              (58)        24        (89)      (332)          (88)
Earnings from                                                               
 discontinued                                                               
 operations(b)             -          -          -      1,109         1,715 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 
 for the year      $     (58) $      24  $     (89) $     777  $      1,627 
----------------------------------------------------------------------------
Total assets       $     631  $   1,045  $   2,581  $   8,170  $     29,377 
----------------------------------------------------------------------------
Long-term debt(c)  $     652  $     377  $     481  $   1,421  $      6,961 
----------------------------------------------------------------------------
Property, plant and                                                         
 equipment                                                                  
 additions         $      32  $      75  $      13  $     120  $        674 
----------------------------------------------------------------------------
Intangible assets                                                           
 with indefinite                                                            
 life              $      36  $       -  $     257  $     376  $        943 
----------------------------------------------------------------------------
Goodwill additions                                                          
 from acquisitions $       -  $       -  $     119  $     278  $        472 
----------------------------------------------------------------------------
Goodwill           $     118  $     239  $     120  $     691  $      2,434 
----------------------------------------------------------------------------
                   `                                                        
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 attributable to:                                                           
Equity holders of                                                           
 Onex Corporation  $     (39) $      17  $     (60) $     786  $      1,326 
Non-controlling                                                             
 interests               (19)         7        (29)        (9)          301 
----------------------------------------------------------------------------
Net earnings (loss)                                                         
 for the year      $     (58) $      24  $     (89) $     777  $      1,627 
----------------------------------------------------------------------------
                                                                            
(a) Includes Tropicana Las Vegas, ONCAP II, ONCAP III, Flushing Town Center 
    and the parent company. Investments in joint ventures and 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.                                               

 
Contacts:
Onex Corporation
Emma Thompson
Vice President, Investor Relations
416.362.7711
www.onex.com