Onex Reports Second Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2009) - All amounts in Canadian dollars unless otherwise stated Onex Corporation OCX today announced its consolidated financial results for the second quarter and six months ended June 30, 2009. Second Quarter 2009 Highlights - Onex acquired a majority interest in the Tropicana Las Vegas Hotel and Casino with a total equity value of US$137 million. This is the first investment for Onex Partners III. - Onex completed the sale of its investment in Cineplex Galaxy Income Fund for net proceeds of approximately $175 million. - Available third-party committed capital for the Onex Partners and ONCAP funds totaled US$3.5 billion. - Onex had approximately $670 million of cash and near-cash investments and no debt at the parent company. Onex is a private equity investor and asset manager, generating value from (i) growth in the Company's $3.7 billion of proprietary capital; (ii) management fees based on the US$6.7 billion of third-party capital committed to its Funds, and (iii) a carried interest based on the performance of those Funds. Private Equity Investing "As we reflect on the first half of a year marked by considerable global economic decline, it is evident that none of our operating companies are immune to this challenging environment," said Gerald W. Schwartz, Chairman and Chief Executive Officer of Onex. "In the early stages of a recovery, business conditions tend to lag the capital markets and therefore we continue to position our companies for tough operating environments. Fortunately, by focusing on enhancing the productivity and profitability of our businesses, we believe these industry leaders are well positioned to take full advantage of the recovery with leaner cost structures and greater operating leverage." Onex' fundamental investment strategy is to identify attractive businesses that will provide the opportunity for significant value creation. Part of this strategy is to partner with outstanding management teams, perform extensive due diligence, and optimize capital structures of our companies. Tropicana Las Vegas, a distressed-for-control opportunity, illustrates this strategy well. Onex acquired the Tropicana Las Vegas with an ownership interest of 61% at July 31, 2009. This followed a significant period of time studying the gaming industry and working with Alex Yemenidjian, former President of MGM Mirage, to evaluate a number of opportunities. In July, the Tropicana Las Vegas emerged from bankruptcy protection and Mr. Yemenidjian was appointed Chairman and Chief Executive Officer. The Tropicana Las Vegas today has no debt, approximately US$10 million of cash, and commitments from Onex and certain other equity holders to invest at least US$75 million in a capital refurbishment program. Located directly on the Las Vegas strip, the Tropicana Las Vegas is one of the best known and most storied casinos in the United States. The 34 acre property has more than 1,700 guestrooms, a 50,000 square-foot casino, multiple restaurants, an 850-seat showroom and a signature five-acre tropical pool area. "We're very excited about this investment. We acquired the business during a cyclical low in the industry and have capitalized it with no debt, providing Alex and his team with significant operational flexibility to complete the turnaround," commented Mr. Schwartz. During the quarter, Onex completed the sale of its investment in Cineplex Galaxy Income Fund with net proceeds of approximately $175 million. The sale brought to a close an investment platform in the theatre exhibition industry that the company established in 1999. Over the course of 10 years, Onex invested US$355 million and realized total proceeds of US$900 million from Cineplex and Loews. In addition, a number of Onex operating companies repurchased debt at a significant discount. Most notably, Hawker Beechcraft, in the first and second quarters, repurchased US$497 million of bonds at face value for US$137 million, or an approximate 70% discount. Earlier today, Onex announced that it has sold 9.2 million shares of Emergency Medical Services ("EMSC") through a secondary public offering. The shares were sold by Onex, Onex Partners I and certain limited partners, of which Onex' portion was approximately 3.5 million shares. The offering was completed at a price of US$40.00 per share before commissions and Onex' portion of the net proceeds was approximately US$137 million including carried interest. Based on a per-share cash cost of US$6.67 to acquire the business in 2005, this sale of shares resulted in a multiple of invested capital of almost 6 times. The Onex group continues to hold approximately 54% of EMSC's equity, of which Onex's share is approximately 20%. As well, the Onex group will continue to hold about 92% of the voting interest. With its disciplined, active ownership approach to value-oriented investing, Onex has produced impressive returns over its 25-year history by transforming undervalued businesses into industry-leading companies across multiple economic and industry cycles. As of June 30, 2009, Onex had generated a 25-year gross IRR of 29% and an average multiple of 3.3 times invested capital from its private equity investing. "We continue to believe that our success in building companies and our record of capital preservation and superior returns are direct results of the strong alignment of interests between Onex, the shareholders, our limited partners and our management team," said Mr. Schwartz. At June 30, 2009, Onex' management team had approximately $1 billion invested in Onex shares and in its operating companies. "We expect that the present economic environment will create the greatest potential for value investors like Onex with experience in distressed-for-control investing, corporate carve-outs and restructurings," continued Mr. Schwartz. "With approximately $670 million of cash and near-cash investments, no debt and US$3.5 billion of uncalled third-party capital available, Onex is well positioned to act on these attractive opportunities." Asset Management Onex' asset management business continues to grow steadily through the predictable and increasing management fees it earns on third-party capital and the meaningful carried interest opportunity on that capital. As of June 30, 2009, Onex had closed on US$3.1 billion of third-party capital for Onex Partners III and may receive additional commitments prior to the Fund's final closing scheduled for September 30, 2009. With the success of Onex Partners III, Onex has almost doubled its total fee-earning assets under management. As a result, the current annualized rate of management fees is approximately US$80 million for the Onex Partners and ONCAP funds, which more than offsets the Company's operating costs. In addition, the Company has an 8% carried interest opportunity on approximately US$2.9 billion of invested capital and on US$3.5 billion of uncalled capital. Consolidated Second-Quarter Results Onex' quarterly consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses by Onex, the impact of foreign currency translation and varying business cycles at its operating companies. On a consolidated basis for the quarter, revenues decreased 10% to $6.1 billion and operating earnings dropped 20% to $411 million compared to the second quarter in 2008. Net earnings for the period grew to $83 million from a net loss of $18 million in the same period last year. Onex reported cash generated from operations of $355 million compared to $395 million in the second quarter of 2008. On a consolidated basis for the six months ended June 30, 2009, revenues were off 3% to $12.6 billion and operating earnings rose 7% to $934 million compared to the same period last year. Net earnings for the period grew to $252 million from $27 million and Onex reported cash generated from operations of $788 million compared to $670 million in the first half of 2008. The Company paid a second-quarter dividend of $0.0275 per subordinate voting share on July 31, 2009 to shareholders of record on July 10, 2009. Operating earnings as referred to in this press release are a non-GAAP measure. See Management's Discussion and Analysis for the definition and reconciliation to the consolidated statements of earnings. Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the three and six months ended June 30, 2009 and 2008. 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. Webcast Onex management will host a conference call to review the Company's second-quarter results at 4:30 p.m. today. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com. About Onex Onex is one of North America's oldest and most successful private equity firms. Onex makes private equity investments through the Onex Partners and ONCAP families of Funds. Onex also manages investment platforms focused on real estate and credit securities. In total, the Company manages approximately US$10 billion. Onex generates annual management fee income and is entitled to a carried interest on approximately US$7 billion of third-party capital, and also invests its own capital directly and as a substantial limited partner in its Funds. Onex' businesses generate annual revenues of $33 billion, have assets of $40 billion and employ 211,000 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. /T/ Onex Corporation Consolidated Balance Sheets ---------------------------------------------------------------------------- (Unaudited) As at June 30 As at December 31 (in millions of dollars) 2009 2008 ---------------------------------------------------------------------------- Assets Current assets Cash and short-term investments $ 2,867 $ 2,921 Marketable securities 784 842 Accounts receivable 3,491 4,014 Inventories 3,351 3,471 Other current assets 1,567 1,695 ---------------------------------------------------------------------------- 12,060 12,943 Property, plant and equipment 3,839 4,066 Investments 3,976 3,897 Other long-term assets 2,883 3,125 Intangible assets 2,496 2,755 Goodwill 2,683 2,946 ---------------------------------------------------------------------------- $ 27,937 $ 29,732 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued liabilities $ 3,813 $ 4,617 Other current liabilities 1,135 1,196 Current portion of long-term debt, without recourse to Onex 234 532 Current portion of obligations under capital leases, without recourse to Onex 22 25 Current portion of warranty reserves and unearned premiums 1,600 1,698 ---------------------------------------------------------------------------- 6,804 8,068 Long-term debt of operating companies, without recourse to Onex 6,699 7,143 Long-term portion of obligations under capital leases of operating companies, without recourse to Onex 45 46 Long-term portion of warranty reserves and unearned premiums 2,375 2,561 Other long-term liabilities 2,066 2,287 Future income taxes 1,282 1,450 ---------------------------------------------------------------------------- 19,271 21,555 Non-controlling interests 6,875 6,624 Shareholders' equity 1,791 1,553 ---------------------------------------------------------------------------- $ 27,937 $ 29,732 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Onex Corporation Consolidated Statements of Earnings ---------------------------------------------------------------------------- Three months ended June 30 Six months ended June 30 (Unaudited) ----------------------------------------------------- (in millions of dollars, except per share data) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Revenues $ 6,131 $ 6,815 $ 12,600 $ 13,041 Cost of sales (4,886) (5,501) (9,907) (10,549) Selling, general and administrative expenses (693) (671) (1,463) (1,359) ---------------------------------------------------------------------------- Earnings Before the Undernoted Items 552 643 1,230 1,133 Amortization of property, plant and equipment (160) (151) (330) (300) Amortization of intangible assets and deferred charges (94) (86) (196) (186) Interest expense of operating companies (133) (122) (278) (253) Debt prepayment income (expense) 2 - (6) - Interest income 19 20 34 40 Earnings (loss) from equity-accounted investments (56) 17 (46) (11) Foreign exchange gains (loss) (35) (13) (30) 33 Stock-based compensation recovery (expense) (63) (18) (57) 32 Other income 85 20 68 16 Gains on dispositions of operating investments, net 184 - 184 - Acquisition, restructuring and other expenses (52) (65) (96) (113) Writedown of goodwill, intangible assets and long-lived assets (114) (3) (114) (3) ---------------------------------------------------------------------------- Earnings before income taxes, non-controlling interests and discontinued operations 135 242 363 388 Recovery of (provision for) income taxes (32) (98) 9 (147) Non-controlling interests (20) (162) (120) (219) ---------------------------------------------------------------------------- Earnings (loss) from continuing operations 83 (18) 252 22 Earnings from discontinued operations - - - 5 ---------------------------------------------------------------------------- Net Earnings (Loss) for the Period $ 83 $ (18) $ 252 $ 27 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net Earnings (Loss) per Subordinate Voting Share Basic and Diluted: Continuing operations $ 0.68 $ (0.14) $ 2.06 $ 0.18 Discontinued operations $ - $ - $ - $ 0.04 Net earnings (loss) $ 0.68 $ (0.14) $ 2.06 $ 0.22 ---------------------------------------------------------------------------- Onex Corporation Consolidated Statements of Cash Flows ---------------------------------------------------------------------------- Three months ended June 30 Six months ended June 30 ---------------------------------------------------------------------------- (Unaudited) (in millions of dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Operating Activities Net earnings (loss) for the period $ 83 $ (18) $ 252 $ 27 Earnings from discontinued operations - - - (5) Items not affecting cash: Amortization of property, plant and equipment 160 151 330 300 Amortization of intangible assets and deferred charges 94 86 196 186 Amortization of deferred warranty costs 22 (7) 41 (22) Debt prepayment expense (income) (2) - 6 - Loss (earnings) from equity-accounted investments 56 (17) 46 11 Foreign exchange loss (gains) 40 7 22 (15) Stock-based compensation expense (recovery) 63 18 57 (32) Gains on dispositions of operating investments, net (184) - (184) - Writedown of goodwill and long-lived assets 114 3 114 3 Non-controlling interests 20 162 120 219 Future income taxes (36) 19 (141) (22) Other (75) (9) (71) 20 ---------------------------------------------------------------------------- 355 395 788 670 Changes in non-cash working capital items: Accounts receivable 42 (158) 328 (233) Inventories 42 (159) (66) (301) Other current assets (118) 37 (16) 52 Accounts payable, accrued liabilities and other current liabilities 3 189 (555) 204 ---------------------------------------------------------------------------- Decrease in cash due to changes in working capital items (31) (91) (309) (278) Increase (decrease) in warranty reserves and unearned premiums and other liabilities (17) 3 (175) 56 ---------------------------------------------------------------------------- 307 307 304 448 ---------------------------------------------------------------------------- Financing Activities Issuance of long-term debt 397 272 706 503 Repayment of long-term debt (531) (447) (971) (597) Cash dividends paid (4) (3) (7) (7) Repurchase of share capital (1) - (1) (53) Issuance of share capital provided by L.P. investors and operating companies 186 35 222 83 Distributions by operating companies (2) (2) (4) (57) Increase (decrease) due to other financing activities 8 (3) 11 (1) ---------------------------------------------------------------------------- 53 (148) (44) (129) ---------------------------------------------------------------------------- Investing Activities Acquisition of operating companies, net of cash in acquired companies of nil (2008 - $2) (2) (54) (2) (74) Purchase of property, plant and equipment (97) (168) (295) (314) Proceeds from sales of operating investments 175 - 175 - Increase (decrease) due to other investing activities (51) 79 (70) 3 Cash from discontinued operations - - - 5 ---------------------------------------------------------------------------- 25 (143) (192) (380) ---------------------------------------------------------------------------- Increase (Decrease) in Cash for the Period 385 16 68 (61) Increase (decrease) in cash due to changes in foreign exchange rates (217) (14) (122) 64 Cash, beginning of the period - continuing operations 2,699 2,463 2,921 2,462 ---------------------------------------------------------------------------- Cash, End of the Period 2,867 2,465 2,867 2,465 Short-term investments - - - - ---------------------------------------------------------------------------- Cash and Short-term Investments Held by Continuing Operations $ 2,867 $ 2,465 $ 2,867 $ 2,465 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Onex Corporation Information by Industry Segment for the Three Months Ended June 30, 2009 (Unaudited) (in millions of dollars) Electronics Manufac- Finan- Customer Consol- turing Aerostr- Health- cial Support Metal idated Services uctures care Services Services Services Other(a) Total ---------------------------------------------------------------------------- Rev- enues $ 1,621 $ 1,240 $ 1,694 $ 342 $ 453 $ 276 $ 505 $ 6,131 Cost of sales (1,480) (1,156) (1,229) (170) (292) (244) (315) (4,886) Selling, general and admini- strat- ive expenses (66) (50) (194) (125) (122) (9) (127) (693) ---------------------------------------------------------------------------- Earnings before the under- noted items 75 34 271 47 39 23 63 552 Amortiz- ation of property, plant and equipment (22) (35) (48) (4) (14) (18) (19) (160) Amortiz- ation of intan- gible assets and deferred charges (6) (1) (58) (6) (6) (4) (13) (94) Interest expense of operating companies (12) (12) (63) (1) (21) (13) (11) (133) Debt prepayment income - - - - - 2 - 2 Interest income 1 3 1 - - - 14 19 Earnings (loss) from equity- accounted invest- ments - - 6 - - - (62) (56) Foreign exchange gains (loss) 1 4 4 - (5) - (39) (35) Stock -based compen- sation expense (10) (3) (2) - - - (48) (63) Other income - 1 6 - 2 - 76 85 Gains on dispos- itions of operating companies - - - - - - 184 184 Acquis- ition, restruc- turing and other expenses (24) (1) (10) - (7) - (10) (52) Writedown of goodwill, intangible assets and long- lived assets - - - - (52) (62) - (114) ---------------------------------------------------------------------------- Earnings (loss) before income taxes, non- control- ling interests and discon- tinued operations 3 (10) 107 36 (64) (72) 135 135 Recovery of (provision for) income taxes 2 4 (30) (3) (2) 2 (5) (32) Non- controlling interests (4) 6 (53) (23) - 46 8 (20) ---------------------------------------------------------------------------- Earnings (loss) from continuing operations 1 - 24 10 (66) (24) 138 83 Earnings from discon- tinued operations - - - - - - - - ---------------------------------------------------------------------------- Net earn- ings (loss) $ 1 $ - $ 24 $ 10 $ (66) $ (24) $ 138 $ 83 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (a) Includes Allison Transmission, Hawker Beechcraft, Husky, RSI, ONCAP II, Onex Real Estate and the parent company. Onex Corporation Information by Industry Segment for the Three Months Ended June 30, 2008 (Unaudited) (in millions of dollars) Electronics Manufac- Finan- Customer Consol- turing Aerostr- Health- cial Support Metal idated Services uctures care Services Services Services Other(a) Total ---------------------------------------------------------------------------- Rev- enues $ 1,897 $ 1,073 $ 1,458 $ 334 $ 451 $ 1,015 $ 587 $ 6,815 Cost of sales (1,748) (858) (1,073) (158) (294) (965) (405) (5,501) Selling, general and admin- istrative expenses (66) (44) (172) (118) (124) (16) (131) (671) ---------------------------------------------------------------------------- Earnings before the under- noted items 83 171 213 58 33 34 51 643 Amortiz- ation of property, plant and equip- ment (23) (26) (48) (3) (14) (16) (21) (151) Amortiz- ation of intang- ible assets and deferred charges (4) (2) (55) (4) (5) (3) (13) (86) Interest expense of operating companies (12) (10) (57) (2) (16) (10) (15) (122) Interest income 2 5 3 - - - 10 20 Earnings from equity- accounted invest- ments - - 4 - - - 13 17 Foreign exchange gains (loss) 2 (1) (6) - (1) - (7) (13) Stock -based compen- sation expense (8) (4) (1) - - - (5) (18) Other income (expense) - 1 - (1) 1 - 19 20 Acquis- ition, restruct- uring and other expenses (4) - (23) (2) (29) - (7) (65) Writedown of goodwill, intang- ible assets and long- lived assets - - - - (3) - - (3) ---------------------------------------------------------------------------- Earnings (loss) before income taxes, non- control- ling interests and discon- tinued oper- ations 36 134 30 46 (34) 5 25 242 Recovery of (provis- ion for) income taxes 4 (47) (32) (14) (5) (2) (2) (98) Non- control- ling interests (35) (82) (4) (22) - (2) (17) (162) ---------------------------------------------------------------------------- Earnings (loss) from continuing operations 5 5 (6) 10 (39) 1 6 (18) Earnings from discon- tinued operations - - - - - - - - ---------------------------------------------------------------------------- Net earnings (loss) $ 5 $ 5 $ (6) $ 10 $ (39) $ 1 $ 6 $ (18) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker Beechcraft, Husky, Radian, ONCAP II, Onex Real Estate and the parent company. Onex Corporation Information by Industry Segment for the Six Months Ended June 30, 2009 (Unaudited) (in millions of dollars) Electronics Manufac- Finan- Customer Consol- turing Aerostr- Health- cial Support Metal idated Services uctures care Services Services Services Other(a) Total ---------------------------------------------------------------------------- Rev- enues $ 3,451 $ 2,345 $ 3,361 $ 707 $ 948 $ 659 $ 1,129 $12,600 Cost of sales (3,145) (2,042) (2,450) (349) (607) (590) (724) (9,907) Selling, general and admin- istrative expenses (141) (110) (395) (266) (256) (24) (271) (1,463) Earnings before the under- noted items 165 193 516 92 85 45 134 1,230 Amortiz- ation of property, plant and equipment (46) (67) (102) (7) (30) (36) (42) (330) Amortiz- ation of intang- ible assets and deferred charges (13) (2) (122) (12) (12) (8) (27) (196) Interest expense of operating companies (25) (23) (130) (2) (44) (26) (28) (278) Debt prepayment income (expense) (8) - - - - 2 - (6) Interest income 1 6 3 - 1 - 23 34 Earnings (loss) from equity- accounted invest- ments - - 11 - - - (57) (46) Foreign exchange gains (loss) (2) 5 (4) - (6) 1 (24) (30) Stock-based compen- sation expense (18) (7) (4) - - - (28) (57) Other income (expense) - 2 (9) (1) 1 - 75 68 Gains on dispos- itions of operating companies - - - - - - 184 184 Acquisition, restruct- uring and other expenses (32) (1) (24) - (9) - (30) (96) Writedown of goodwill, intangible assets and long-lived assets - - - - (52) (62) - (114) ---------------------------------------------------------------------------- Earnings (loss) before income taxes, non- control- ling interests and discon- tinued operations 22 106 135 70 (66) (84) 180 363 Recovery of (provision for) income taxes 7 (36) (42) (16) (6) 5 97 9 Non- controlling interests (25) (65) (71) (38) - 52 27 (120) ---------------------------------------------------------------------------- Earnings (loss) from continuing operations 4 5 22 16 (72) (27) 304 252 Earnings from discon- tinued operations - - - - - - - - ---------------------------------------------------------------------------- Net earnings (loss) $ 4 $ 5 $ 22 $ 16 $ (72) $ (27) $ 304 $ 252 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total assets $ 3,772 $ 4,945 $ 6,306 $ 5,855 $ 914 $ 920 $5,225 $27,937 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Long -term debt(b) $ 676 $ 828 $ 3,146 $ 225 $ 758 $ 454 $ 846 $ 6,933 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker Beechcraft, Husky, RSI, ONCAP II, Onex Real Estate and the parent company. (b) Long-term debt includes current portion, excludes capital leases and is net of deferred charges. Onex Corporation Information by Industry Segment for the Six Months Ended June 30, 2008 (Unaudited) (in millions of dollars) Electronics Manufac- Finan- Customer Consol- turing Aerostr- Health- cial Support Metal idated Services uctures care Services Services Services Other(a) Total ---------------------------------------------------------------------------- Rev- enues $ 3,740 $ 2,114 $ 2,811 $ 664 $ 929 $ 1,629 $ 1,154 $13,041 Cost of sales (3,455) (1,694) (2,075) (316) (606) (1,538) (865)(10,549) Selling, general and adminis- trative expenses (132) (88) (357) (239) (260) (29) (254) (1,359) ---------------------------------------------------------------------------- Earnings before the under- noted items 153 332 379 109 63 62 35 1,133 Amortiz- ation of property, plant and equipment (45) (51) (94) (6) (27) (31) (46) (300) Amortiz- ation of intangible assets and deferred charges (8) (3) (109) (9) (9) (6) (42) (186) Interest expense of operating companies (28) (19) (115) (5) (30) (20) (36) (253) Interest income 9 11 4 - 1 - 15 40 Earnings (loss) from equity- accounted invest- ments - - 8 - - - (19) (11) Foreign exchange gains (loss) 8 (1) 8 - 4 - 14 33 Stock-based compen- sation recovery (expense) (13) (8) (2) - - - 55 32 Other income (expense) - 2 - (2) 1 - 15 16 Acquis- ition, restruct- uring and other expenses (7) - (53) (4) (34) - (15) (113) Writedown of goodwill, intang- ible assets and long-lived assets - - - - (3) - - (3) ---------------------------------------------------------------------------- Earnings (loss) before income taxes, non-cont- rolling interests and discon- tinued operat- ions 69 263 26 83 (34) 5 (24) 388 Recovery of (provis- ion for) income taxes 1 (92) (48) (27) (10) (2) 31 (147) Non-cont- rolling interests (61) (160) 3 (39) (1) (2) 41 (219) ---------------------------------------------------------------------------- Earnings (loss) from continuing operations 9 11 (19) 17 (45) 1 48 22 Earnings from discon- tinued operations - - - - - - 5 5 ---------------------------------------------------------------------------- Net earnings (loss) $ 9 $ 11 $ (19) $ 17 $ (45) $ 1 $ 53 $ 27 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total assets at Dec- ember 31, 2008 $ 4,612 $ 4,821 $ 6,660 $ 6,095 $ 1,020 $ 1,026 $ 5,498 $29,732 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Long -term debt at Dec- ember 31, 2008(b) $ 892 $ 697 $ 3,367 $ 237 $ 796 $ 519 $ 1,167 $ 7,675 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (a) Includes Allison Transmission, CEI, Cineplex Entertainment, Hawker Beechcraft, Husky, Radian, ONCAP II, Onex Real Estate and the parent company. (b) Long-term debt includes current portion, excludes capital leases and is net of deferred charges. /T/