GlobeNewswire Inc | Nov 13, 2020 07:00AM EST

November 13, 2020

Allamountsin U.S.dollars unlessotherwisestated

TORONTO, Nov. 13, 2020 (GLOBE NEWSWIRE) -- Onex Corporation (TSX: ONEX) today announced its financial results for the third-quarter and nine-months ended September 30, 2020 and an update on matters following quarter end.

Building on our portfolio improvements last quarter, we continue to demonstrate increased momentum in our private equity and credit portfolios, resulting in a very good quarter for Onex, said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. Earlier this quarter, I was delighted to announce Bobby Le Blanc as President of Onex, in recognition of his leadership ability and the positive role he continues to play in our success.

Highlights

-- Onex reported segment net earnings for the three months ended September 30, 2020 of $515million ($5.39 per fully diluted share), comprised of net earnings of $492 million from its investing segment and net earnings of $23 million from its asset and wealth management segment. -- Onex reported segment net earnings for the nine-months ended September 30, 2020 of $152million ($1.55 per fully diluted share), comprised of net earnings of $164 million from its investing segment and a net loss of $12 million from its asset and wealth management segment. -- Onex private equity investments generated gross returns of 14% and 9% during the three and nine-months ended September 30, 2020, respectively. -- Onex total shareholder capital per fully diluted share increased by approximately 10% in the third-quarter to $74.04 (C$98.76), primarily driven by net increases in Onex private equity and credit investments. -- In August, Onex Partners sold approximately 32.0 million shares of SIG Combibloc Group (SWX: SIGN) at a price of CHF 15.50 per share. Onex share of the net proceeds was $162 million as a Limited Partner in Onex Partners IV and as a co-investor. -- In August, Onex invested $35 million in Onex Partners V as part of the Funds investment in preferred shares of Emerald Holdings, Inc. (NYSE: EEX). This attractively valued investment supports a business with a solid collection of assets with an opportunity remaining to improve operations. -- In September, Onex invested $64 million in Onex Partners V as part of the funds investment in Independent Clinical Services Group Ltd. -- In October, Onex Partners agreed to make a majority investment in OneDigital, a leading U.S. provider of employee benefits insurance brokerage and retirement consulting services. The transaction values OneDigital at $2.65 billion. The new equity investment of approximately $725 million will be made by Onex Partners V, Onex share will be approximately $200 million. -- Onex deployed $444 million (C$595 million) during the first ten months of 2020 by repurchasing 9,780,411 Subordinate Voting Shares at an average cost per share of C$60.86.

Financial Results

For the three-months ended September 30, 2020, total segment net earnings were $515 million ($5.39 per fully diluted share). Investing segment earnings of $492 million ($5.17 per fully diluted share) were primarily driven by net gains on Onex private equity and credit investments consistent with the recovery in those markets during the quarter. Third-quarter asset and wealth management segment earnings of $23 million ($0.22 per fully diluted share) were driven by management and advisory fees as well as an increase in unrealized carried interest.

For the nine-months ended September 30, 2020, total segment net earnings were $152 million ($1.55 per fully diluted share). Investing segment earnings of $164 million ($1.67 per fully diluted share) were primarily driven by a net gain on Onex private equity investments which reflects the overall resiliency and diversification of the operating businesses that Onex has invested in. The asset and wealth management segment loss for the nine-months ended September 30, 2020 was $12 million ($0.12 per fully diluted share) driven primarily by a net reversal of unrealized carried interest.

Enclosed are supplementary schedules and non-IFRS measures related to Onex consolidated net earnings for the three- and nine-months ended September 30, 2020, shareholder capital at September 30, 2020 and cash and near-cash changes for the nine-months ended September 30, 2020. The financial statements prepared in accordance with International Financial Reporting Standards (IFRS), including Managements Discussion and Analysis of the results, are posted on Onex website, www.onex.com, and are also available on SEDAR at www.sedar.com. A supplemental information package with additional information is available on Onex website, www.onex.com.

Webcast

Onex management will host a webcast to review Onex third-quarter 2020 results on Friday, November 13 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://ir.onex.com/events-and-presentations. A 90-day on-line replay will be available shortly following the completion of theevent.

About Onex

Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional investors and high net worth clients from around the world. Onex platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe; ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, senior loan strategies and other private credit strategies; and Gluskin Sheffs wealth management services including its actively managed public equity and public credit funds. In total, Onex has approximately $36.6billion of assets under management, of which approximately $6.7 billion is its own shareholder 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.

The Onex Partners and ONCAP businesses have assets of $36 billion, generate annual revenues of $22 billion and employ approximately 149,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex security filings can also be accessed at www.sedar.com.

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 may contain non-GAAP financial measures which have been calculated using methodologies that are not in accordance with IFRS. The presentation of financial measures in this manner does not have a standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar financial measures presented by other companies. Onex management believes these financial measures 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.

ForFurtherInformationJill HomenukManaging Director, Shareholder Relations and Communications Tel: +1 416.362.7711

Supplementary and Non-IFRS Measures

Summarized Consolidated Net Earnings (Loss)

Asset and(Unaudited) ($ millions except per Investing Wealth Total share amounts) ^(i) ManagementThree months ended September 30, ^(i)2020Segment income $ 492 $ 93 $ 585 Segment expenses - (70) (70) Segment net earnings $ 492 $ 23 $ 515 Stock-based compensation recovery 3 Amortization of property andequipment and other intangible (12) assets, excluding right-of-useassetsIntegration expense (5) Net earnings $ 501 Segment net earnings per share^ $ 5.17 $ 0.22 $ 5.39 (ii)Net earnings per share Basic $ 5.30 Diluted $ 5.29

(i) Refer to the unaudited interim consolidated financial statements for segment presentation and allocation considerations.(ii) Calculated on a fully diluted basis.

Asset and(Unaudited) ($ millions except per Investing Wealth Total share amounts) ^(i) ManagementNine months ended September 30, ^(i)2020Segment income $ 164 $ 182 $ 346 Segment expenses - (194) (194) Segment net earnings (loss) $ 164 $ (12) $ 152 Stock-based compensation recovery 108 Amortization of property andequipment and other intangible (35) assets, excluding right-of-useassetsIntegration expense (7) Impairment of goodwill (85)Net earnings $ 133 Segment net earnings (loss) per $ 1.67 $ (0.12) $ 1.55 share^(ii)Net earnings per share Basic $ 1.36 Diluted $ 1.36

(i) Refer to the unaudited interim consolidated financial statements for segment presentation and allocation considerations.(ii) Calculated on a fully diluted basis.

Shareholder Capital

(Unaudited) ($ millions except per Asset andshare amounts) Investing Wealth TotalAs at September 30, 2020 ManagementTotal segmented assets $ 6,260 $ 780 $ 7,040 Accounts payable and accrued - (33) (33) liabilitiesAccrued compensation - (86) (86) Lease and other liabilities - (118) (118) DSU hedge assets - (61) (61) Total shareholder capital^(i) $ 6,260 $ 482 $ 6,742 Shareholder capital per share^(i)(ii) $ 68.74 $ 5.30 $ 74.04

Shareholder capital and shareholder capital per share are non-GAAP financial measures which have been calculated using methodologies that are not in accordance with IFRS. A reconciliation of total segmented assets to shareholder capital is presented in this table. The presentation of(i) financial measures in this manner does not have a standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar financial measures presented by other companies. Management believes that shareholder capital is useful to investors as the metric is used, in part, to assess Onex? performance. Calculated on a fully diluted basis using the treasury stock method. Fully(ii) diluted shares for shareholder capital per share were 91.1 million at September 30, 2020.

Cash and Near-Cash

The table below provides a reconciliation of the change in cash and near-cash from December 31, 2019 to September 30, 2020.

(Unaudited) ($ millions) Cash and near-cash on hand at December 31, 2019^(i) $ 1,842 Private equity realizations 582 Private equity investments (325) Real estate distributions 15 Net Onex Credit strategies investment activity, including warehouse (53) facilitiesOnex share repurchases, options exercised, dividends and director (472) DSU redemptionNet other, including capital expenditures, management fees, 12 operating costs and treasury incomeCash and near-cash on hand at September 30, 2020^(i) $ 1,601

Includes $934 million (December 31, 2019 ? $395 million) of treasury(i) investments, $96 million (December 31, 2019 ? $97 million) invested in an Onex Credit unlevered senior secured loan strategy fund and $192 million (December 31, 2019 ? $190 million) of management fees.