AIMIA REPORTS STRONG FOURTH QUARTER RESULTS AND ACHIEVES GUIDANCE FOR FY2024
TORONTO, March 28, 2025 /CNW/ - Aimia Inc, (TSX:AIM) ("Aimia" or the "Company"), today reported its financial results for the three months and year ended December 31, 2024. All amounts are in Canadian currency unless otherwise noted.
SENIOR LEADERSHIP COMMENTARY
"Aimia ended 2024 with considerable momentum as reflected by our strong consolidated results across a number of our key financial metrics and by the solid performance of each of our core holdings in the fourth quarter," said Rhys Summerton, Aimia's Executive Chairman. "Bozzetto and Cortland, in particular, generated $20.1 million of adjusted EBITDA on a combined basis in Q4, enabling Aimia to achieve our guidance for the year."
Mr. Summerton added, "Our efforts in 2024 were also marked by the completion of a number of major milestones, indicative of our commitment to enhance shareholder value. Key among these included the launch of normal course issuer bid, the signing of a cooperation agreement with our largest shareholder, and the receipt of a $32.9 million cash earn out from our PLM divestiture. We anticipate sustaining this momentum through 2025 and expect to generate adjusted EBITDA in the range of $88 to $95 million for our core holdings on a combined basis, representing a growth of 14% from this year's results."
"With the recent completion of our Substantial Issuer Bid that will deliver annual savings of approximately $5.1 million and a gain on the transaction of approximately $54 million behind us, our near-term focus will center on the next phase of initiatives aimed at enhancing shareholder value," said Steven Leonard, Aimia's President and Chief Financial Officer.
AIMIA'S Q4 2024 HIGHLIGHTS
Reported consolidated revenue of $127.2 million, up 27.1% from $100.1 million generated in Q4 2023. Results for Q4 2024 sustained the momentum established at the Company's core holdings since the start of 2024 despite a backdrop of unfavourable economic and geopolitical conditions.
Reported consolidated Adjusted EBITDA of $17.3 million, up from a loss of $1.1 million incurred in Q4 2023. The improvement was driven by a number of developments, including the $11.1 million reduction in selling, general and administrative (SG&A) expenses at the Holdings Segment, improved results from the Company's core holdings, and the incremental contributions from StarChem, which was acquired in January 2024.
Generated cash flow from operating activities of $20.2 million, a total that included a $2.1 million payment related to the cooperation agreement signed with Aimia's largest shareholder.
Reported a consolidated net loss of $41.2 million or $0.48 per common share mostly due to non-cash expenses relating to a $16 million net change in the fair value of investments at the Company's non-core holdings, a $28.7 million goodwill impairment charge at Cortland International, and a $9.9 million credit loss provision recorded against an investment income receivable. In Q4 2023, Aimia incurred a net loss of $59 million or $0.69 per common share largely due to a $54.9 million net change in the fair value of investments at the Company's non-core investments.
Signed a cooperation agreement with Mithaq that resulted in the dismissal of all outstanding litigation between the parties, the appointment of two Mithaq nominees, Muhammad Asif Seemab and Rhys Summerton, to Aimia's Board of Directors, the grant of customary preemptive and registration rights to Mithaq, the adoption of customary standstill provisions through March 31, 2026, and an undertaking from Mithaq to vote all of its common shares of the Company in favour of each of Aimia's management nominees for election to the Company's board of directors at Aimia's next annual general meeting of shareholders to be held in 2025.
Launched a Substantial Issuer Bid to purchase for cancellation all of the Company's preferred shares in consideration for 9.75% senior unsecured notes.
SUMMARY OF AIMIA'S KEY 2024 DEVELOPMENTS
Reported consolidated revenue of $500.8 million, up 72% from $291.2 million generated in 2023.
Aimia's core holdings, Bozzetto and Cortland, generated $80.4 million of adjusted EBITDA1 on a combined basis, achieving the Company's guidance for 2024.
Reported consolidated Adjusted EBITDA of $51.3 million, up from $7.8 million generated in 2023. The improvement was driven by a number of developments, including the $8 million reduction in selling, general and administrative (SG&A) expenses at the Holdings segment. In 2023, Aimia had partial reporting periods for Bozzetto and Cortland due to the timing of their acquisitions.
Reported a consolidated net loss of $53.5 million or $0.75 per common share.
Ended 2024 with $95.4 million in cash and cash equivalents.
Launched a normal course issuer bid to purchase for cancellation up to 7,009,622 common shares. At December 31, 2024 Aimia had purchased for cancellation approximately 3 million common shares, or 43% of allowable purchases, for a consideration of $7.8 million.
Received $32.9 million in cash related to the earn-out associated with the Company's divestiture of its 48.9% equity stake in PLM Loyalty to Aeromexico in 2022.
Terminated existing agreements with Paladin Private Equity for total consideration of $22.9 million, consisting of a cash payment of $10.3 million and the issuance of shares valued at $12.6 million. The total consideration was based on the termination of Paladin's carried interests in Bozzetto and Cortland and the termination of its advisory service agreements.
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1 Adjusted EBITDA is a non-GAAP measure. The combined total for the Company's core holdings in 2024 excludes $2.2 million of advisory fees incurred by Cortland International related to business transformation initiatives.
HIGHLIGHTS SUBSEQUENT TO YEAR END
Completed a substantial issuer bid to purchase for cancellation all of the Company's preferred shares in consideration for 9.75% senior unsecured notes. Based on the count provided by TMX Trust, the depository for the Offers, a total of 7,889,931 Preferred Shares were validly tendered and the Company issued $142,603,700 principal amount of unsecured notes in consideration. The transaction will generate approximately $5.1 million in annual cash savings when comparing the annual preferred dividends and Part VI.1 tax to the annual cash coupon interest payments. Under IFRS, Aimia expects to record a $53.8 million gain on the transaction, based on the exchange value of the 2030 Notes and the carrying value of the Preferred Shares exchanged.
As part of the Company's commitment to succession planning and commitment to good governance, Aimia named Rhys Summerton, who brings 20-years of experience in the investment industry, as Executive Chairman following outgoing Executive Chairman Tom Finke's decision to retire.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Aimia
(in $millions except for margin and per share data)
Q4 2024
Q4 2023
Change
FY 2024
FY 2023
Change
Revenue
127.2
100.1
27.1 %
500.8
291.2
72.0 %
Gross Profit
31.1
23.8
30.7 %
132.0
65.9
100.3 %
Gross Margin
24.4 %
23.8 %
0.6 pp
26.4 %
22.6 %
3.8 pp
Selling, general and administrative expenses
(23.4)
(34.9)
33.0 %
(126.3)
(116.9)
(8.0) %
Impairment charge
(28.7)
—
NM
(28.7)
—
NM
Operating Income (loss)
(21.0)
(11.1)
NM
(23.0)
(51.0)
54.9 %
Adjusted EBITDA2
17.3
(1.1)
NM
51.3
7.8
557.7 %
Net earnings (loss)
(41.2)
(59.0)
30.2 %
(53.5)
(188.6)
71.6 %
Earnings (loss) per share
(0.48)
(0.69)
30.4 %
(0.75)
(2.37)
68.4 %
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2 Adjusted EBITDA is a non-GAAP measure.
Aimia's financial results for the three months and year ended December 31, 2024 reflect the acquisition of StarChem completed on January 2, 2024. This quarterly earnings release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three-month period and year ended December 31, 2024, which can be accessed from SEDAR+ and www.aimia.com.
Balance Sheet and Liquidity
As at December 31, 2024, Aimia had a total liquidity of $95.5 million, comprised of $95.4 million in cash and cash equivalents and $0.1 million of marketable securities. As at September 30, 2024, Aimia had total liquidity of $121.4 million, which was comprised of $120.6 million in cash and cash equivalents and $0.8 million in marketable securities.
The quarter over quarter decline in Aimia's liquidity was attributable to a number of developments in Q4. The most notable was Bozzetto's $30 million of principal repayments on its credit facilities, which included $22.1 million in voluntary prepayments made ahead of contractual due dates. Other impacts to Aimia's liquidity included $7.2 million of interest payments, $5.4 million investment in property, plant and equipment, $3.8 million dividend payment for preferred shareholders, and payments of $2.4 million for the repurchase of common shares through a normal course issuer bid. The decline was partially offset by cash flow from operations for Q4 of $20.2 million.
Of Aimia's cash and cash equivalents held at December 31, 2024, $36.7 million was held in Bozzetto, $12.3 million in Cortland International, and $46.4 million in the Holdings segment.
Available Tax Losses
As at December 31, 2024, Aimia had $1,003 million of tax losses available for carry forward that may be used to reduce taxable income in future years. The total available for carry forward is comprised of $504 million of operating tax losses and $499 million of capital tax ...
