Canadian private equity firm Onex Corp. (OCX.TO) Friday reported a loss for its first quarter, reflecting an increase in expenses, despite higher revenues. The board, however, approved a quarterly dividend, up 36 percent from last year.
For the quarter, the firm posted net loss of $271 million or $2.71 per share, compared to net earnings of $173 million or $0.51 per share in the previous year.
The Toronto, Canada-based company's quarterly revenues grew 6 percent to $7.21 billion from $6.82 billion reported last year.
Operating expenses were $1.05 billion, higher than the $829 million in the preceding year.
Gerald Schwartz, chairman and chief executive officer of the company stated, "After investing $1.5 billion in five businesses in the fourth quarter of last year, we have been busy working with our management teams to execute our investment plans...For each of the five businesses just acquired, we have a specific plan for improvement and growth."
Earlier this week, Onex agreed to acquire Nielsen Expositions from its parent, an affiliate of Nielsen Holdings N.V. (NLSN), for $950 million cash. San Juan Capistrano, California-based Nielsen Expositions operates business-to-business tradeshows in the U.S.
Cash used in operations in the recent quarter was $68 million, compared with $263 million of cash generated from operations in the prior-year period.
On May 9, the board declared a quarterly dividend of C$0.0375 per share, up 36 percent from last year, to shareholders of record on July 10, 2013, payable on payable on July 31.
OCX.TO closed Thursday's regular trading at $49.95 on the Toronto Stock Exchange.
For comments and feedback: editorial@rttnews.com