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

SUMMARY OF AIMIA'S KEY 2024 DEVELOPMENTS

HIGHLIGHTS SUBSEQUENT TO YEAR END

CONSOLIDATED FINANCIAL HIGHLIGHTS

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 losses.

Dividends

Aimia paid $3.8 million in dividends for the fourth quarter ended December 31, 2024, on its three series of outstanding preferred shares.

Aimia's Board of Directors declared quarterly dividends declared quarterly dividends of $0.300125 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.473486 per Series 4 preferred share, in each case payable on March 31, 2025, to shareholders of record on March 24, 2025.

SEGMENT RESULTS

Aimia is comprised of three segments: Bozzetto, Cortland International, and Holdings. Financial highlights for each segment for the three-month period and year ended December 31, 2024, follow.

Bozzetto

Aimia owns a 94.1% equity stake in Bozzetto, one of the world's leading providers of sustainable specialty chemicals with applications mainly in the textile, home and personal care, geothermal, construction, and agrochemical markets. Bozzetto's management team owns the remaining 5.9%. The Bozzetto segment includes results since Bozzetto's acquisition on May 9, 2023, as well as the results of StarChem since its acquisition on January 2, 2024.

Cortland International

Aimia owns a 100% equity stake in Cortland International, the rebranded combination of Tufropes and Cortland Industrial, a global leader in the manufacturing of high-performance synthetic fiber ropes and netting solutions for maritime and other industrial customers. The companies were acquired in March and July 2023, respectively.

Holdings Segment

The Holdings Segment includes Aimia's investments in Clear Media Limited and Kognitiv as well as minority investments in public company securities and limited partnerships. The results of the Holdings Segment include corporate operating costs, including costs related to public company disclosure and board, executive leadership, legal, finance and administration.

Outlook and Guidance

Aimia achieved its guidance for the year based on the performance of its core holdings, Bozzetto and Cortland, which on a combined basis generated $80.4 million of adjusted EBITDA, while Holding Company costs totaled $12 million.

Aimia's guidance for 2025 is based on the expected performance of Company's core holdings and ongoing cost-cutting initiatives at the Holding Company. The Company's forecast for adjusted EBITDA for 2025 represents an expected growth of 13.8% from the mid-point of guidance relative to results for 2024.

Quarterly Conference Call and Audio Webcast Information

Aimia will host a conference call to discuss its fourth quarter 2024 financial results at 8:30 am ET on March 28. The call will be webcast at the following URL link:https://app.webinar.net/MmPwKJ49k0R Interested parties can listen to conference call by dialing 1 888 699 1199 or 1 416 945 7677 (internationally). A slide presentation intended for simultaneous viewing with the conference call and an archived audio webcast will be available for 90 days following the original broadcast available at: https://www.aimia.com/investor-relations/events-presentations/

About Aimia

Aimia Inc. (TSX: AIM) is a diversified company focused on enhancing the growth potential of its two global businesses, Bozzetto, a sustainable specialty chemicals company, and Cortland International, a rope and netting solutions company. Headquartered in Toronto, Aimia's priorities include monetizing its non-core investments, enhancing the value of our core holdings, and efficiently utilizing its loss carry-forwards to create shareholder value. For more information about Aimia, visit www.aimia.com.

Non-GAAP Financial Measures and Reconciliation to Comparable GAAP Measures

"GAAP" means Canadian Generally Accepted Accounting Principles (which are in accordance with the International Financial Reporting Standards).

Adjusted EBITDA

Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, does not have a standardized meaning and is not directly comparable to similar measures used by other issuers. Adjusted EBITDA should not be used as an exclusive measure of cash flow because it does not account for the impact of working capital growth, capital expenditures, debt repayments and other sources and uses of cash, which are disclosed in the statements of cash flows. A reconciliation to operating income (loss) is provided.

Adjusted EBITDA is used by management to evaluate the performance of its Bozzetto, Cortland International and Holdings segments. Management believes Adjusted EBITDA assists investors in comparing Aimia's performance on a consistent basis excluding depreciation and amortization, impairment charges related to non-financial assets and share-based compensation, which are non-cash in nature and can vary significantly depending on accounting methods as well as non-operating factors such as historical cost. Aimia's management believes that the exclusion of business acquisition and/or disposal related expenses assists investors by excluding expenses that are not representative of the run-rate cost structure of its operations.

Adjusted EBITDA is operating income (loss) adjusted to exclude depreciation, amortization, impairment charges related to non-financial assets, cost of sales expense related to inventory fair value step up resulting from purchase price allocation, share-based compensation, gain/loss from the disposal of manufacturing property and land, costs related to the termination of the Paladin agreements, as well as transaction costs related to business acquisitions.

For a reconciliation of Adjusted EBITDA to operating income (loss), please refer to the tables below.

 

 

For a reconciliation of Holdco costs to the Holdings segment's Selling, general and administrative expenses, please refer to the tables below.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon Aimia's current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions.

Forward-looking statements in this press release include, but are not limited to, Aimia's future growth and value creation; Aimia's accelerating efforts to return capital to shareholders in 2025; Aimia's corporate operating costs for 2025; Bozzetto and Cortland significant organic and accretive growth potential; monetization of Aimia's core or non-core assets in an expedited manner; Aimia's potential gain to be reported under IFRS related to the substantial issuer bid; Aimia's annual cash savings related to the substantial issuer bid; and Aimia's, Bozzetto and Cortland Adjusted EBITDA.

Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to the Company can be found in Aimia's current Management's Discussion and Analysis and Annual Information Form, each of which have been or will be filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aimia disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Aimia Inc.

SOURCE: Aimia Inc.

For more information, please contact: Joe Racanelli, Vice President, Investor
Relations, 647 970 2200, Joseph.Racanelli@aimia.com

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