Onex Reports First Quarter 2024 Results
10 Maggio 2024 - 1:00PM
Onex Corporation (TSX: ONEX) today announced its financial results
for the first quarter ended March 31, 2024.
“Onex is making progress in its plans to drive
growth in shareholder value, and we were pleased to see fundraising
start to gain momentum in the quarter,” said Bobby Le Blanc, Chief
Executive Officer. “We continue to focus our capital deployment and
resource allocation on areas where we have a proven track record
and the right to compete.”
Financial Results
|
(unaudited, $ millions except per share amounts) |
Three Months Ended March 31 |
|
|
|
2024 |
|
2023 |
|
|
Net earnings (loss) |
$ |
10 |
|
$ |
(232 |
) |
|
Net earnings (loss) per diluted share |
$ |
0.13 |
|
$ |
(2.87 |
) |
|
|
|
|
|
|
|
Investing segment net earnings |
$ |
54 |
|
$ |
44 |
|
|
Asset management segment net loss |
|
(26 |
) |
|
(69 |
) |
|
Total segment net earnings (loss) (1) |
$ |
28 |
|
$ |
(25 |
) |
|
Total segment net earnings (loss) per fully diluted share(2) |
$ |
0.33 |
|
$ |
(0.32 |
) |
|
Asset management fee-related earnings (loss)(3) |
$ |
(4 |
) |
$ |
(8 |
) |
|
Total fee-related earnings (loss)(4) |
$ |
(12 |
) |
$ |
(16 |
) |
|
Distributable earnings(5) |
$ |
45 |
|
$ |
68 |
|
Highlights
- Onex’ investing capital per fully
diluted share(6) was essentially unchanged for the three months
ended March 31, 2024. Onex had approximately $8.4 billion of
investing capital, or $107.44 (C$145.58) per fully diluted share at
March 31, 2024. Over the twelve months ended March 31, 2024, Onex’
investing capital per fully diluted share had a compound annual
return of 11%.
- Onex’ private equity investments
had net gains of $30 million or a return of 1% in the first quarter
of 2024(7) (Q1 2023: net gains of $6 million or a return of less
than 1%). Investments in Credit strategies generated net gains of
$13 million or a return of 2% in the first quarter of 2024(8) (Q1
2023: net gains of $28 million or a return of 4%).
- Onex raised approximately $1.8
billion in fee-generating capital across its Private Equity and
Credit platforms in the first quarter. To date, the Onex Partners
Opportunities Fund has raised an aggregate $735 million, including
Onex’ commitment of $400 million. ONCAP V has reached aggregate
commitments of $795 million, including Onex’ commitment of $250
million.
- Onex has raised or extended a total
of $3.5 billion of fee-generating assets across its CLO platform so
far in 2024. This includes closing its 30th and 31st U.S. CLOs for
approximately $900 million in fee-generating assets and pricing its
32nd U.S. CLO and 9th European CLO which will add approximately
$900 million in fee-generating assets upon their expected closings
in Q2 2024.
- Onex repurchased 598,708
Subordinate Voting Shares (SVS) in the first four months of 2024
for a total cost of $44 million (C$59 million) or an average cost
per share of $73.13 (C$99.29). In April, Onex renewed its normal
course issuer bid permitting Onex to purchase for cancellation up
to 10% of the public float in its Subordinate Voting Shares.
- Onex had $35.1 billion of
fee-generating assets under management (FGAUM) at March 31, 2024,
an increase of 4% from 2023 year-end. Run-rate management fees(9)
were $197 million, an increase of 3% from 2023 year-end. Private
client FGAUM was stable quarter-over-quarter at $3.2 billion.
- Unrealized carried interest was
$264 million at March 31, 2024.
- Onex’ cash and near-cash(10)
balance was $1.4 billion or 17% of Onex’ investing capital as of
March 31, 2024 (December 31, 2023 – $1.5 billion or 17% of
Onex’ investing capital).
Webcast
Onex management will host a webcast to review
Onex’ first quarter 2024 results on Friday, May 10, 2024 at 11:00
a.m. ET. The webcast will be available in listen-only mode from the
Presentations and Events section of Onex’ website,
https://www.onex.com/events-and-presentations. A 90-day on-line
replay will be available shortly following the completion of
the event.
Additional Information
Enclosed are supplementary financial schedules
related to Onex’ consolidated net earnings (loss), investing
capital, fee-related earnings (loss), distributable earnings, and
cash and near-cash changes for the three months ended March 31,
2024. The financial statements prepared in accordance with IFRS
Accounting Standards, 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.sedarplus.ca. A
supplemental information package with additional information is
available on Onex’ website, www.onex.com.
About Onex
Onex is an investor and asset manager that
invests capital on behalf of Onex shareholders and clients across
the globe. Formed in 1984, we have a long track record of creating
value for our clients and shareholders. Onex’ two primary
businesses are Private Equity and Credit. In Private Equity, we
raise funds from third-party investors, or limited partners, and
invest them, along with Onex’ own investing capital, through the
funds of our private equity platforms, Onex Partners and ONCAP.
Similarly, in Credit, we raise and invest capital across several
private credit, public credit and public equity strategies. Our
investors include a broad range of global clients, including public
and private pension plans, sovereign wealth funds, insurance
companies, family offices and high-net-worth individuals. In total,
Onex has $50.9 billion in assets under management, of which $8.4
billion is Onex’ own investing capital. With offices in Toronto,
New York, New Jersey, Boston and London, Onex and its experienced
management teams are collectively the largest investors across
Onex’ platforms.
Onex is listed on the Toronto Stock Exchange
under the symbol ONEX. For more information on Onex, visit its
website at www.onex.com. Onex’ security filings can also be
accessed at www.sedarplus.ca.
Forward-Looking Statements
This press release may contain, without
limitation, statements concerning possible or assumed future
operations, performance or results preceded by, followed by or that
include words such as “believes”, “expects”, “potential”,
“anticipates”, “estimates”, “intends”, “plans” and words of similar
connotation, which would constitute forward-looking statements.
Forward-looking statements are not guarantees. The reader should
not place undue reliance on forward-looking statements and
information because they involve significant and diverse risks and
uncertainties that may cause actual operations, performance or
results to be materially different from those indicated in these
forward-looking statements. Except as may be required by Canadian
securities law, Onex is under no obligation to update any
forward-looking statements contained herein should material facts
change due to new information, future events or other factors.
These cautionary statements expressly qualify all forward-looking
statements in this press release.
Non-GAAP Financial Measures
This press release contains non-GAAP financial
measures and ratios which have been calculated using methodologies
that are not in accordance with IFRS Accounting Standards. The
presentation of financial measures in this manner does not have a
standardized meaning prescribed under IFRS Accounting Standards and
is therefore unlikely to be comparable to similar financial
measures presented by other companies. Onex management believes
these financial measures and ratios provide helpful information to
investors. Reconciliations of the non-GAAP financial measures to
information contained in the consolidated financial statements have
been presented where practical.
For
Further
Information:
|
Jill Homenuk Managing Director – Shareholder Relations and
CommunicationsTel: +1 416.362.7711 |
Zev KormanVice President, Shareholder Relations and
CommunicationsTel: +1 416.362.7711 |
|
|
|
Supplementary Financial
Schedules
|
|
|
Three months ended March 31 |
|
|
|
2024(i) |
2023(i) |
|
|
(Unaudited)($ millions except per share amounts) |
|
Investing |
|
|
Asset Management |
|
|
Total |
|
Total |
|
|
Segment income |
$ |
54 |
|
$ |
40 |
|
$ |
94 |
|
$ |
62 |
|
|
Segment expenses |
|
- |
|
|
(66 |
) |
|
(66 |
) |
|
(87 |
) |
|
Segment net earnings (loss) |
$ |
54 |
|
$ |
(26 |
) |
$ |
28 |
|
$ |
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation recovery (expense) |
|
|
|
|
|
|
(10 |
) |
|
3 |
|
| Amortization
of property, equipment and intangible assets, excluding
right-of-use assets |
|
|
|
|
|
|
|
(5 |
) |
|
(10 |
) |
|
Impairment of goodwill, intangible assets and property and
equipment |
|
|
|
|
|
|
|
– |
|
|
(171 |
) |
|
Restructuring recovery (expenses) |
|
|
|
|
|
|
3 |
|
|
(20 |
) |
|
Unrealized carried interest included in segment net earnings (loss)
– Credit |
|
|
|
|
|
|
|
(4 |
) |
|
(6 |
) |
|
Unrealized performance fees included in segment net earnings
(loss) |
|
|
|
|
|
|
|
(3 |
) |
|
(3 |
) |
|
Other net income |
|
|
|
|
|
|
|
1 |
|
|
2 |
|
|
Earnings (loss) before income taxes |
|
|
|
|
|
|
|
10 |
|
|
(230 |
) |
|
Provision for income taxes |
|
|
|
|
|
|
|
– |
|
|
(2 |
) |
|
Net earnings (loss) |
|
|
|
|
|
$ |
10 |
|
$ |
(232 |
) |
|
|
|
|
|
|
|
|
|
|
|
Segment net earnings (loss) per fully diluted share |
$ |
0.67 |
|
$ |
(0.34 |
) |
$ |
0.33 |
|
$ |
(0.32 |
) |
|
Net earnings (loss) per share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
$ |
0.13 |
|
$ |
(2.87 |
) |
|
Diluted |
|
|
|
|
|
$ |
0.13 |
|
$ |
(2.87 |
) |
| (i) |
|
Refer to pages
17 and 18 of Onex’ Q1 2024 Interim MD&A for further details
concerning the composition of segmented results. |
Investing
Capital(i)
|
(Unaudited)($ millions except per share amounts) |
March 31, 2024 |
|
December 31, 2023 |
|
|
Private EquityOnex Partners FundsONCAP FundsOther Private
EquityCarried Interest |
$ |
4,486871473234 |
|
$ |
4,445929407252 |
|
|
|
|
6,064 |
|
|
6,033 |
|
|
Private Credit |
|
|
|
|
|
Investments |
|
856 |
|
|
907 |
|
|
Carried Interest |
|
30 |
|
|
29 |
|
|
|
|
886 |
|
|
936 |
|
|
|
|
|
|
|
|
Real Estate |
|
15 |
|
|
18 |
|
|
Cash and Near-Cash |
|
1,438 |
|
|
1,466 |
|
|
Other Net Liabilities |
|
(13 |
) |
|
(20 |
) |
|
Investing Capital |
$ |
8,390 |
|
$ |
8,433 |
|
|
Investing Capital per fully diluted share (U.S.
dollars)(ii) |
$ |
107.44 |
|
$ |
107.82 |
|
|
Investing Capital per fully diluted share (Canadian
dollars)(ii) |
$ |
145.58 |
|
$ |
142.61 |
|
| (i) |
|
Refer to the
glossary in Onex’ Q1 2024 Interim MD&A for further details
concerning the composition of investing capital. |
| (ii) |
|
Fully diluted shares for investing capital per share were 78.1
million at March 31, 2024. |
Fee-Related Earnings (Loss) and
Distributable Earnings
|
(Unaudited)($ millions) |
Three months endedMarch 31,
2024 |
|
Three Months EndedMarch 31,
2023 |
|
|
Private EquityManagement and advisory fees |
$ |
22 |
|
$ |
27 |
|
|
Total fee-related revenues from Private Equity |
|
22 |
|
|
27 |
|
|
Compensation expense |
|
(22 |
) |
|
(23 |
) |
|
Support and other net expenses |
|
(10 |
) |
|
(11 |
) |
|
Net contribution |
$ |
(10 |
) |
$ |
(7 |
) |
|
|
|
|
|
|
|
CreditManagement and advisory feesPerformance
fees |
$ |
284 |
|
$ |
385 |
|
|
Other income |
|
– |
|
|
1 |
|
|
Total fee-related revenues from Credit |
$ |
32 |
|
$ |
44 |
|
|
Compensation expense |
|
(14 |
) |
|
(23 |
) |
|
Support and other net expenses |
|
(12 |
) |
|
(22 |
) |
|
Net contribution |
$ |
6 |
|
$ |
(1 |
) |
|
|
|
|
|
|
|
Asset management fee-related earnings (loss) |
$ |
(4 |
) |
$ |
(8 |
) |
|
|
|
|
|
|
|
Public Company and Onex Capital Investing |
|
|
|
|
|
Compensation expense |
$ |
(4 |
) |
$ |
(4 |
) |
|
Other net expenses |
|
(4 |
) |
|
(4 |
) |
|
Total expenses |
$ |
(8 |
) |
$ |
(8 |
) |
|
|
|
|
|
|
|
Total fee-related earnings (loss) |
$ |
(12 |
) |
$ |
(16 |
) |
|
|
|
|
|
|
|
Realized carried interest |
$ |
3 |
|
$ |
8 |
|
|
Net realized gain on corporate investments and interest income |
|
54 |
|
|
76 |
|
|
Distributable earnings |
$ |
45 |
|
$ |
68 |
|
Fee-related earnings (loss) and distributable
earnings are non-GAAP financial measures. The tables below provide
reconciliations of Onex’ net earnings (loss) to fee-related
earnings (loss) and distributable earnings during the three months
ended March 31, 2024 and 2023.
|
(Unaudited)($ millions) |
Three months endedMarch 31,
2024 |
|
Three months endedMarch 31,
2023 |
|
|
Net earnings (loss) |
$ |
10 |
|
$ |
(232 |
) |
|
Provision for income taxes |
|
– |
|
|
2 |
|
|
Earnings (loss) before income taxes |
|
10 |
|
|
(230 |
) |
|
Stock-based compensation expense (recovery) |
|
10 |
|
|
(3 |
) |
|
Amortization of property, equipment and intangible assets,
excluding right-of-use assets |
|
5 |
|
|
10 |
|
|
Impairment of goodwill, intangible assets and property and
equipment |
|
– |
|
|
171 |
|
|
Restructuring expenses (recovery) |
|
(3 |
) |
|
20 |
|
| Unrealized carried interest
included in segment net earnings (loss) – Credit |
|
4 |
|
|
6 |
|
| Unrealized performance fees
included in segment net earnings (loss) |
|
3 |
|
|
3 |
|
|
Other net income |
|
(1 |
) |
|
(2 |
) |
|
Total segment net earnings (loss) |
|
28 |
|
|
(25 |
) |
|
Net unrealized decrease in carried interest |
|
17 |
|
|
61 |
|
|
Net unrealized loss (gain) on corporate investments |
|
(4 |
) |
|
31 |
|
|
Interest income |
|
4 |
|
|
1 |
|
|
Distributable earnings |
|
45 |
|
|
68 |
|
|
Less: Realized carried interest |
|
(3 |
) |
|
(8 |
) |
|
Less: Net realized gain on corporate investments and interest
income |
|
(54 |
) |
|
(76 |
) |
|
Total fee-related earnings (loss) |
$ |
(12 |
) |
$ |
(16 |
) |
|
|
|
|
|
Cash and Near-Cash
The table below provides a breakdown of cash and
near-cash at Onex as at March 31, 2024 and December 31, 2023.
|
(Unaudited)($ millions) |
March 31, 2024 |
|
December 31, 2023 |
|
|
Management fees and recoverable fund expenses receivable(i) |
$ |
619 |
|
$ |
615 |
|
|
Cash and cash equivalents within Investment Holding
Companies(ii) |
|
433 |
|
|
398 |
|
|
Cash and cash equivalents – Investing segment(iii) |
|
196 |
|
|
142 |
|
|
Treasury investments within Investment Holding Companies |
|
146 |
|
|
197 |
|
|
Subscription financing and short-term loan receivable(iv) |
|
44 |
|
|
114 |
|
|
Cash and near-cash |
$ |
1,438 |
|
$ |
1,466 |
|
|
(i) |
|
Includes management fees and recoverable fund expenses receivable
from certain funds which Onex has elected to defer cash receipt
from. |
| (ii) |
|
Includes restricted cash and cash equivalents of $23 million
(December 31, 2023 – $22 million) for which the Company can readily
remove the external restriction or for which the restriction will
be removed in the near term. Excludes cash and cash equivalents for
Onex’ share of uncalled expenses payable by the Investment Holding
Companies of $33 million (December 31, 2023 - $35 million). |
| (iii) |
|
Excludes cash and cash equivalents allocated to the asset
management segment related to accrued incentive compensation ($36
million (December 31, 2023 – $108 million)) and contingent
consideration related to the acquisition of Falcon Investment
Advisors ($15 million (December 31, 2023 - $15 million)). |
| (iv) |
|
Includes $44 million of subscription financing receivable,
including interest receivable, attributable to third-party
investors in certain Credit Funds and ONCAP V (December 31, 2023 -
$77 million). The December 31, 2023 balance also includes $37
million related to a short-term loan receivable from an Onex
Partners operating company, which was repaid during the three
months ended March 31, 2024. |
| |
|
|
The table below provides a reconciliation of the
change in cash and near-cash from March 31, 2024 to December 31,
2023.
|
(Unaudited)($ millions) |
|
|
|
Cash and near-cash at December 31, 2023 |
$ |
1,466 |
|
|
Private equity realizations and distributions |
|
29 |
|
|
Private equity investments |
|
(48 |
) |
|
Net private credit strategies investment activity |
|
64 |
|
|
Share repurchases, dividends
and net cash paid for stock-based compensation |
(52 |
) |
|
Net other, including cash flows from asset management activities,
operating costs and changes in working capital |
|
(21 |
) |
|
Cash and near-cash at March 31, 2024 |
$ |
1,438 |
|
| (1) |
|
Refer to pages 17 and 18 of Onex’ Q1 2024 Interim MD&A for
further details concerning the composition of segment net earnings
(loss). A reconciliation of total segment net earnings (loss) to
net earnings (loss) is provided in the supplementary financial
schedules in this press release. |
| (2) |
|
Refer to the glossary in Onex’ Q1 2024 Interim MD&A for details
concerning the composition of fully diluted shares. |
| (3) |
|
Asset management fee-related earnings (loss) excludes Onex’ public
company expenses and other expenses associated with managing Onex’
investing capital and is a component of total fee-related earnings
(loss). |
| (4) |
|
Total fee-related earnings (loss) is a non-GAAP financial measure
that does not have a standardized meaning prescribed under
International Financial Reporting Standards as issued by the
International Accounting Standards Board (“IFRS Accounting
Standards”). Therefore, it may not be comparable to similar
financial measures disclosed by other companies. The most directly
comparable financial measure under IFRS Accounting Standards to
fee-related earnings (loss) is Onex’ net earnings (loss). Refer to
the 2024 Year-To-Date Results & Activity section of Onex’ Q1
2024 Interim MD&A and the supplementary financial schedules in
this press release for further details concerning fee-related
earnings (loss). |
| (5) |
|
Distributable earnings is a non-GAAP financial measure that does
not have a standardized meaning prescribed under IFRS Accounting
Standards. Therefore, it may not be comparable to similar financial
measures disclosed by other companies. The most directly comparable
financial measure under IFRS Accounting Standards to distributable
earnings is Onex’ net earnings (loss). Refer to the 2024
Year-To-Date Results & Activity section of Onex’ Q1 2024
Interim MD&A and the supplementary financial schedules in this
press release for further details concerning distributable
earnings. |
| (6) |
|
Refer to the glossary in Onex’ Q1 2024 Interim MD&A for details
concerning the composition of investing capital per share. The
percentage changes in investing capital per share exclude the
impact of capital deployed in Onex’ asset management segment, where
applicable, and dividends paid by Onex. |
| (7) |
|
The gross return on Onex’ private equity investments is a non-GAAP
ratio calculated using methodologies that are not in accordance
with IFRS Accounting Standards. The presentation of this ratio does
not have a standardized meaning prescribed under IFRS Accounting
Standards and therefore may not be comparable to similar financial
measures presented by other companies. The net gains (losses) used
to calculate the gross return of Onex’ private equity investments
are gross of management incentive programs. Refer to page 8 of
Onex’ Q1 2024 Interim MD&A for further details concerning the
gross performance of Onex’ private equity investments. |
| (8) |
|
The percentage returns on Credit investments have been adjusted for
capital deployed, realizations and distributions. |
| (9) |
|
Refer to the glossary in Onex’ Q1 2024 Interim MD&A for details
concerning the composition of run-rate management fees. |
| (10) |
|
Cash and near-cash is a non-GAAP financial measure calculated using
methodologies that are not in accordance with IFRS Accounting
Standards. The presentation of these measures does not have
standardized meaning prescribed under IFRS Accounting Standards and
therefore might not be comparable to similar financial measures
presented by other companies. The most directly comparable
financial measure under IFRS Accounting Standards to cash and
near-cash is Onex’ consolidated cash and cash equivalents balance,
which was $247 million at March 31, 2024 (December 31, 2023 - $265
million). Refer to the Cash and Near-Cash section of Onex’ Q1 2024
Interim MD&A and the supplementary financial schedules in this
press release for further details concerning Onex’ cash and
near-cash. |
Grafico Azioni Onex (TSX:ONEX)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Onex (TSX:ONEX)
Storico
Da Nov 2023 a Nov 2024
