Onex Reports Third Quarter 2024 Results
All amounts in U.S. dollars unless otherwise stated
Launches substantial issuer bid for up to C$400 million of its Subordinated Voting Shares
TORONTO, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Onex Corporation (TSX:ONEX) today announced its financial results for the third quarter and nine months ended September 30, 2024. In a separate news release issued today, Onex also announced that it has commenced a Substantial Issuer Bid.
"We are advancing our strategic plan focused on value creation, accelerating profitability and the long-term compounding of our investing capital," said Bobby Le Blanc, CEO and President. "The third quarter was marked by continued growth in investing capital per share and successful investing and realization activity across our platforms. The launch of a substantial issuer bid reflects our confidence in the inherent value in our shares, combined with our strong liquidity position."
Financial Results($ millions except per share amounts)
Three Months Ended Sept. 30
Nine Months Ended Sept. 30
2024
2023
2024
2023
Net earnings
$
127
$
256
$
305
$
156
Net earnings per diluted share
$
1.68
$
3.23
$
3.99
$
1.94
Investing segment net earnings
$
121
$
245
$
315
$
489
Asset management segment net earnings (loss)
22
38
3
(44
)
Total segment net earnings (1)
$
143
$
283
$
318
$
445
Total segment net earnings per fully diluted share(2)
$
1.88
$
3.58
$
4.11
$
5.51
Asset management fee-related earnings(3)
$
6
$
13
$
-
$
9
Total fee-related earnings (loss)(4)
$
-
$
8
$
(20
)
$
(12
)
Distributable earnings(5)
$
267
$
223
$
386
$
658
Substantial Issuer Bid
Onex announced today that it has launched a substantial issuer bid (the "Offer") to repurchase up to C$400 million of its Subordinate Voting Shares. The Offer commences today and expires on December 13, 2024 unless extended or withdrawn. Further details are available in the separate news release issued today. Given its strong liquidity position, Onex is confident in being able to execute on the Offer while continuing to invest in priority areas.
Highlights
Onex' investing capital per fully diluted share(6) returned 3% for the three months ended September 30, 2024. Onex had approximately $8.5 billion of investing capital, or $113.37 (C$153.04) per fully diluted share at September 30, 2024. Onex' investing capital per fully diluted share has had a compound annual return of 9% for the 12 months ended September 30, 2024, and 14% over the last five years.
Onex' private equity investments had net gains of $96 million or a return of 2% in the third quarter of 2024(7) (Q3 2023: net gains of $190 million or a return of 4%). Investments in Credit strategies generated net gains of $29 million or a return of 3% in the third quarter of 2024(8) (Q3 2023: net gains of $44 million or a return of 6%).
Onex raised approximately $2.1 billion in fee-generating capital across its Private Equity and Credit platforms in the third quarter.
To date, the Onex Partners Opportunities Fund has raised aggregate commitments approaching $1.2 billion, including pending co-investment commitments and Onex' commitment of $400 million. The Fund entered into an agreement to acquire Farsound, which is expected to close in the fourth quarter. In October, the Fund also acquired a majority interest in Fischbach.
ONCAP V has reached aggregate commitments of more than $1.0 billion, including Onex' commitment of $250 million, and continues to show positive fundraising momentum.
The sales of ASM Global and Englobe were completed in the third quarter and the partial realization of PowerSchool closed in October. Collectively, our private equity teams have returned approximately $2.7 billion of capital to Limited Partners so far in 2024, including approximately $910 million to Onex.
Onex has raised or extended a total of $10.6 billion of fee-generating assets across its CLO platform so far in 2024. Activity in Q3 includes closing of our 34th and 35th U.S. CLOs and 10th European CLO for approximately $1.5 billion in new fee-generating assets. In Q3 we also priced our 36th and 37th U.S. CLOs and 11th European CLO which will add approximately $1.7 billion in fee-generating assets in Q4 2024.
Onex repurchased 2,179,882 Subordinate Voting Shares (SVS) in the third quarter for a total cost of $144 million (C$197 million) or an average cost per share of $66.13 (C$90.25). Onex has repurchased 3,943,482 SVS over the 12 months ended September 30, 2024.
Onex had $34.1 billion of fee-generating assets under management at September 30, 2024, a 4% increase from the prior quarter.
Run-rate management fees(9) increased to $187 million at September 30, 2024.
Unrealized carried interest from funds managed by Onex was $270 million at September 30, 2024.
Onex' cash and near-cash(10) balance was $1.6 billion or 19% of Onex' investing capital as of September 30, 2024 (December 31, 2023 – $1.5 billion or 17% of Onex' investing capital).
Webcast
Onex management will host a webcast to review Onex' third quarter 2024 results on Friday, November 8, 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, investing capital, fee-related earnings (loss), distributable earnings, and cash and near-cash changes for the three and nine months ended September 30, 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 invests and manages capital on behalf of its shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. 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 approximately $50 billion in assets under management, of which $8.5 billion is Onex' own investing capital. With offices in Toronto, New York, New Jersey 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 useful 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 September 30
2024(i)
2023(i)
(Unaudited)($ millions except per share amounts)
Investing
Asset Management
Total
Total
Segment income
$
121
$
73
$
194
$
342
Segment expenses
–
(51
)
(51
)
(59
)
Segment net earnings
$
121
$
22
$
143
$
283
Stock-based compensation expense
(7
)
(14
)
Amortization of property, equipment and intangible assets, excluding right-of-use assets
(2
)
(5
)
Restructuring expenses, net
(3
)
(5
)
Unrealized carried interest included in segment net earnings, Credit
(2
)
(5
)
Unrealized performance fees included in segment net earnings
(1
)
–
Integration expenses
–
(3
)
Net impairment reversal of property and equipment
–
7
Other net expenses
(1
)
(2
)
Net earnings
$
127
$
256
Segment net earnings per fully diluted share
$
1.58
$
0.30
$
1.88
$
3.58
Net earnings per share
Basic
$
1.68
$
3.24
Diluted
$
1.68
$
3.23
(i) Refer to pages 20 and 21 of Onex' Q3 2024 Interim MD&A for further details concerning the composition of segmented results.
Nine months ended September 30
2024(i)
