AIMFF - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aimia Inc.

First Quarter 2021 Results Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] I will now turn the call over to Tom Tran, Head of Investor Relations. ahead. go Please

Tom Tran

and presentation Crystal website. to morning's this Thank available welcome on Today's is company's SEDAR call. you, everyone and the

performance Before are and would review we statements. Lehmann, With factors I our remind the the Mittleman, our of get to call Leonard, Aimia's through on everyone Michael our quarter. today pertaining like investments to to will our CFO. strategic with Phil highlights, Steve cautions begin who Steve the to followed statements me and and speakers the risk President; cover forward-looking the handing underway, CEO; will the our before to the call Michael, by Phil results over of you take

let it me Phil. have to hand at will We for that your over time questions With the end.

Phil Mittleman

and the quarter. the for webcast morning, phone strategic with Tom first begin good on and our everyone We'll today. highlights Thanks,

PLM existing with grow We seeking operating new continue objectives in recovery strategic to performance. opportunities. to to our its make in while investments, of executing ongoing continued perform our progress investment signs well

received of $X.X half in year pause the the resumed Following second in in the to the XXXX first period COVID-XX, due to million, to the X% quarter shareholders higher deliberate in impacts Aimia shareholders of distributions and of a a same of distribution distributions this than prior year.

continues PLM XXXX as the extension expect assumed. as through well of we will be shareholder enhanced option Aeromexico be between including with formally agreement Aeromexico CPSA buyout Our it honored and and the Aeromexico, the by to

retail consumer collaboration provider global and leading a sales ISS pleased IRI partnership very with and and services and leader between insight IRI, retail acquired companies. innovative are suppliers. a see the in enables cognitive solutions business, media that retailers transaction We to for consumer, agreement

at experiences explore for IRI ISS this clients Kognitiv unique of ISS ecosystem. IRI's collaborative leader balance liquidity as new partnership a aligns to will analytics. leverage IRI predictive $XX the deliver over with hyper-personalized their million, strengthened end within and service through unique quarter consumers evidenced platform opportunities significantly This and Through data as Kognitiv's partnership platform sale the cash to agreement, of a global Kognitiv's the commerce technology of big in Kognitiv's Kognitiv's by As and position. value retail to validates

strategic We market talent pleased drive are to to to expected building the as well Kognitiv Clear with the business, whom client hires several also continues partnerships. privatization product from team the in of planned business expertise Kong on shares also as trading its the Stock including made across of and business commercialization experience. of to Exchange. its President Kognitiv new see Hong exceptional teams Media remaining commercial Like in added a senior Media, has foster Clear CFO scale having capital leadership both strong possess as and the the suspended

quarter we to million ordinary formal new of a publicly XX% XX end. XX.X our excited We Aimia's a a growth-oriented AirAsia. made close time firm for very largest BIGLIFE about which attractive transaction Aimia Clear AirAsia opportunistic expect very loyalty outdoor equity purchase blue-chip are sell valuation an participating understanding Media, investors. Since stakeholders. to purchased a at in quarter to advertising unique alongside in traded with for of entered at satisfied value Clear opportunity shares saw we of positive stake value be relationship close into its consortium AirAsia the create China to we by economy memorandum through Media see approximately have of share Subject a China's benefiting to continued economic with we continue we to these developed in BIGLIFE the sales investment advertising end, has a to AirAsia, and and the we transaction by binding CAD At program million signed agreement this China. outdoor we in trends recover

a participating in also pursue the we believe exists BIGLIFE its for to will positioned AirAsia believe airline. the airline, by capitalize will X.X% from in as in XX.X we million approximate Upon financial subject AirAsia the stronger private in emerge time, own for minority shares and the our full AirAsia equity which By allowing Asia's Southeast benefits across transformation. position upside from equity. shareholder the to that reap we We while believe of a provided position sizable is ownership stock its transaction fully AirAsia, in efforts that will of a acquire million. approval, placement of the the for Aimia acquisition publicly we BIGLIFE to strengthen the shares resulting will to stake many and participated opportunities in it And BIGLIFE liquidity pandemic XXX.X digital airline. be support air strategic completion AirAsia same an We enhance At what has of the the for significant Air pent-up million in on exchanging uniquely $X.X affords demand Asia. traded travel Aimia additional total the new airline's low-cost in value

Moving The to acquire to a million $X.X the well-established unlock upon continued Aimia of the vehicle target vehicle of up target successful the buyout commitment enhance of management to of target special shares in $XX leverage to team purpose option the cash of a target's shareholder strong the LBO. of fully engaged free the market XX% planned target. acquire pursue purpose a of our up with generating a a has explore consummation its The special and million a to in in stake cash representing Aimia and opportunities funded has the earnings special and history is commitment long to to to value. the a open company vehicle. flow. purpose initial created quarter has

free our businesses with cash globally and Our distributions upstream cash holding company. deploy to the of opportunities, potentially best and to we core losses tax strategy generating income is significant to that the can utilize ability flow opportunities our the taxable seek on acquisitions with to investment find

with securities investment, up million the are investing to new including we XXXX, the that in catalysts. co-investment with identified these first the Aimia quarter investment end unrealized quarter enough businesses we our generate discernible expand $X.X Aimia considers of of To gains to As beyond public for until global of provide streamlined securities private also traditional investing, its At set a opportunities have million. leaders that capital opportunity an been opportunities. undervalued way warrant proven of invest attractive to public to opportunities end totaled the as equities public our significantly also we company $XX.X have portfolio seek

have Mike and pipeline with further the and that, provide disciplined. We let we our over to of a on investments updates strong investment turn some Mike? you floor to potential portfolio. remain me patient And

Michael Lehmann

tickets over with be Thanks, and down demonstrate PLM's our million to down which last due speaking last over performance lower as operating year $XX.X to were quarter, where redemption was partly despite were $XX.X year to impacts $XX.X award the mainly in continue flow was in was up currency. Phil, million quarter, margin cost last of the growth an the first improvement in engagement XX.X% PLM Aeromexico of quarter impacts the challenging the the due usage and from enrolled functional XXXX. is million X.X% driven million and I'll by over quarter by was in same gross second occurred offset well of of volumes which unit million million in lower to first continued We'll increase the pre-purchased everyone. XXXX billings as Gross a $XX.X $XX.X environment. year, continues Revenues last initiatives. that down expense the the to free in well PLM's first reduction Adjusted and accumulation $XX.X execution good of the tickets discussion down in to as million lower The to year. recovery quarter. of CPSA representing following a the billings period positive XX% first prior the the PLM Further, year begin Overall, over in to of member XX.X% compared the X.X% million COVID-XX. continued signs over the seasonality the revised were demonstrate quarter, of morning the $XX EBITDA last with first partly of lower due in in to pre-purchase USD, quarter, volumes. cash airline members metrics quarter as as operating award of X.X

Adjusted due the first business the impact revenues quarter, business a to the million from sale $XX.X be a clients the EBITDA margin revenues lower well to Kognitiv was were Loyalty loss Kognitiv. costs commercialization a business, continuing mainly operating Solutions to it the reduced offering. roll-off from on due ISS million higher as IRI. platform $X legacy as of on and of service of to from continues Moving towards the transitions expenses. as of million $XX.X a to its In as by operations offset subscription-based focused

and experiences. loyalty and strategy to customer expertise programs provide their are solutions In clients to offered resources additional managed manage addition, and deliver campaigns

was $XXX,XXX excluding and Moving a income investment a on from before $XXX,XXX approximately negative taxes loss to our Investment D&A. Revenue a management fees were management business. negative $XXX,XXX or

are continue the compared revenues in finally concentrated Focus as the Media domestic the higher result moving $XXX Assets in as the Major prior region under of of levels. and recovery quarter X.X% Media's the a Chinese JCDecaux to improvement from seeing an financial management to advertising of grew pre-COVID projects in in to year. to on investment rebound XXXX it of market Clear back improve million, signs strategy. Clear results million such value-oriented with year as in almost revenues to its And $XXX.X materially first quarter-on-quarter and Media. the operators

Steve coming remains Media's We we revenue believe commercial expect And turn years. advertising penetration it plan with and higher-margin for digitize growth-oriented the of XX,XXX you panels clientele. goal to through the that, its financial of execute than X% attracting panels take results. currently on Steve? Clear its its With me to significant management digital let with over over streams less new runway there to to a team digital,

Steve Leonard

good to Thank morning everyone. you, Michael, and

million, units increase total value Let's executives mostly $X.X and a begin covering move were to driven In mostly alignment consolidated securities. $X.X year, by performance million, fair cash by $X.X to to a deferred quarter, from quarter. due the with the the last first before was slight Reported net income public to segment stakeholders. $X.X to the a maintain compared million related gain investments million continuous in expense to we non-cash expenses movements granted in share results

in $X.X the compensation, includes as common same in million well in million were $X.X and quarter. last share first of previously which quarter office the as holding last a of million lower spend which $X.X in million Within also savings total expense expenses, granted from million, fees. expense the of the the $X.X segment, unit resulted operating and loss in expenses And quarter the of the office a the offset were year. professional from were quarter income mainly share-based up of were year. during to corporate and of expenses, professional advisory down other in $X.X in expenses from and deferred quarter same the total same current increase the was expenses, the executives and $X in charge Total partially mentioned. second The to awards, by quarter the amortization advisory other other compensation XX% last higher quarter share Within the XX% year. million non-cash $X as the drivers compensation technology fees down Aimia's in quarter, reduced technology savings price due and XXXX, XXXX, period a million These

$XX existing related we million opportunities. legacy the our exit awards, and down currently range $XX were cash performance We expect XXXX will value new as diligence compensation maximizing Holdco investment in through of operating period cash to million, for the activities $X.X year. transformation, investments some and corporate from operating new share-based to and XX% million Excluding some same other complete $X.X last due our progress our expenses experience million between expenses

Moving preferred for movements million cash operating made of paid as Including total of offset the received and the that, public this The adjustment. of with of main other ended quarter cover in working were were compared related a from commitment major cash we movements million. These me were a the first to $X.X the million portfolio, $X.X million the now vehicle. quarter. on cash quarter to purpose million, and totaled cash quarter by our payment We investment portion had down the We PLM to $XXX.X last Phil million, tax market Part cash Aimia's $XX.X our to investments a from capital to remarks. in remaining over X the $X.X dividends million fund costs $XX.X a distribution the million in by working million of special liquid offset We quarter. $XXX last end closing million balance $XX.X $X.X capital securities with $X.X to the value quarter. Kognitiv plus refunds securities. of million And let various of the $X.X related And cash Tax million. turn $XXX.X first and public corporate with wrap concluding few up it items. towards

Phil Mittleman

company investments. significant developments shaping new investment and deliver various Aimia's is to existing seeking made Thanks, enduring by Steve. our an We continuing on our strategy holding highlighted positive remain grow opportunities the our as new to value to the in year, progress assets, a be executing XXXX stakeholders. focused in up to while exciting

over So we'll turn Operator? with questions. that it to

Operator

first Instructions] of line Your comes Securities. from [Operator Brian question with the Morrison TD

Brian Morrison

Good guys. Hey. morning,

Phil Mittleman

Hey, Brian.

Steve Leonard

morning, Good Brian.

Brian Morrison

Good morning, mates.

in pave walk acrimonious? us hearing? a outcomes to the claim I be the maybe there. this heard Is you just the this it for start of of just Just can I a XXst. can formal see way potential May through? MD&A PLM Can procedural? your maybe assumption of in And contract? there's on Is What are terms

Phil Mittleman

honoring I'll to they're can't that I the ongoing is not but legal paying is And Yes. that procedural. just contracts, assumed. This It's do contracts say us again you're be know the comment on PLM we dividends. we acrimonious. issues, expect right.

Brian Morrison

by then And of that's the have limiting or how much operationally, management PLM worked redemption airline And is Okay. been by just encouraging maybe the activity? pre-buys any or through? there active

Steve Leonard

PLM year related that $X to used take of last about million the the I'll quarter. Brian. in pre-volumes

the unusual. redemption activity, we're terms anything seeing In of not

the mentioned, been the has there's unusual. nothing airline As Phil and honoring agreement

that's You'll bit more last than versus a notice else. but quarter, that related the down quarter-over-quarter redemption anything was seasonal

Brian Morrison

I on Okay. And I of update shift private, levels? realize the that are already but XX,XXX gears we you did so back if just it's on close that? to correct, us heard you And far digitization if progression or the can pre-pandemic along think then if Clear, to I you displays? say How they're I of

Phil Mittleman

themselves Sure. are forecasting. We can't Clear what forecast Media beyond

business. of Chinese the industry been And a leaders you've seen so other anecdotally, from there's lot on bullishness outdoor advertising

we in the there. So company's in from what But forecast, can terms we just of what it's read said.

In anything progress terms digitization, of the began. we the their on effort this is digital X% than this but know publicly, again, revealed And of were that they do when less focus. panels haven't their

we you of upside a any at but think beyond runway So of details long amount give growth, time. tremendous a this and there we can't that there's

Michael Lehmann

level. are Media approaching a the on and comment Asia. levels, comment pre-pandemic in that of the venues JCDecaux made exceeding was that They in Brian, [indiscernible] Focus pre-pandemic by are seeing and business other and their portions

pulling putting and back expenses advertising actively those pretty programs initially dramatically after marketing into very are quickly companies back play. and So the on

this the to everybody, by but share. be is there's an boats perhaps certainly continue and to all, gleaned set leaders think raising take increase I even and So all all opportunity

So progress to pleased we're pretty the with date.

Brian Morrison

down weighing this looks transaction? the on there Do Thank with us quarter. That’s tech path on XXXX. breakeven encouraging. after monetization I you. your to views to yields question Maybe investment? the change your the in EBITDA then IRR to Okay. to targets Kognitiv. or And be plan is financial this in still be And update just you on valuations, timing any bond last on see

Phil Mittleman

Yes.

to few ways. the an IRI transaction sale was exciting a of in ISS I think

outside. perspective the of investors I think number from one

business. One buy one only a real? a came this sector things an to of company, in wanted was is And client IRI in their something purest such like transaction mean to has understand. they leader tech hard the Kognitiv they which they this it's especially unique the came product. that but in for with they Is the scrubbed leader any and not second, in industry that, telling it decided in and and and that did difficult Is when because they're ISS, something I Kognitiv's That I'll product it real base. industry an have transformational Kognitiv Kognitiv, decision sell address that to that of to that's shows great very a form wants capitalism. a sell. partner something But they

So excited about we're very that.

In a take it some yielded terms for cash, of but of of did sale transformative It the ISS Kognitiv. that away revenues. was actual lot

We ISS -- So of targets, smoke in clear. terms gone. still a of the is there's lot have now to

new a have We partnership.

dropping off. Aimia clients have legacy We

sales, we're model that have commercialization, traction some pass higher-margin We with. they're on that new focused seeing

smoke the we is targets, give you as we're not improving the clarity there the as overall all dramatically care different picture I new yet but the would have until clears say don't -- So far we metrics just about. to

of of terms it. the commercializing right of when on their take is opportunity day-to-day think and I product we're a the and And terms markets We're rising they're that going moment focused liquidity in arises possibility In event now. too rates. the of the not to

hopefully As they'll product if And I you when for that it. will want people and opportunity we'll think take of it. does it know it a advantage out working is come and pay tech

Brian Morrison

for I the right. very it. appreciate all much All Thanks color.

Steve Leonard

No. Thank you, Brian

Phil Mittleman

Brian. Thanks,

Operator

of line Your next Mazari question comes with Hamzah from the Jefferies.

Ryan Gunning

it's Ryan actually Gunning for Hey, on Hamzah.

Kognitiv Just will do of market, you're increased M&A following with kind organically? liquidity, more you if the come just up think seeing any or growth attractive in wondering on, targets

Steve Leonard

consider past. further consider a new to offerings. made lot has Kognitiv acquisitions of the in bolster to, their acquisitions They

accent can their the technologies And there offerings. are there's, targets. there answer is And yes, that so out exciting some

the yes. So answer be, would

Phil Mittleman

model, couple technological also acquisitions set reducing to push where further are that acquisitions And go then can more grow the there or the product either a that fold. to trying acquisitions are There can by commercialization towards get us costs. of the right? The faster we're efficiently to they're of

the and of on we those are them. continue So table options several to evaluate

is of loyalty the and is terms long-standing clients. from process ongoing. growth Kognitiv In attractiveness both, with technology commercialization of that and The Aimia's Aimia was collaborative through product a cutting-edge coming organically business the well where as thesis combining of and acquisition, as merging the loyalty

a make to of experience So while in also converting so loyalty services profitable is process and element past user consulting of to more positive. we're doing and the which like customers model more Aimia offering managed the element the the model kind

Ryan Gunning

Thanks, guess, the very is then, this Got thanks plans yeah And capital for on helpful. it. of lastly, I allocation just XXXX. balance

doesn't like, they've anything all Just just if they wondering it at but, it's sound have changed buybacks like changed. terms or

Steve Leonard

never value. to priorities Our allocate shareholder the cash We're going are evaluating to always capital change. create ways to allocation best our

-- are We back the past bought know of over over of as XX% our shares we years. couple you

So we're and always that. aggressive about about that opportunistic

can to our We we're will investments utilize at that NOLS. -- continue things U.S. larger looking

We of capital to have U.S. a Canada significant losses tax shield and also our in amount losses gains.

not lot So always. different priorities we're evaluating a And change. will of opportunities those

Ryan Gunning

Got a guys. lot Thanks it.

Steve Leonard

you. Thank

Phil Mittleman

Andrew. Thanks,

Steve Leonard

Ryan.

Operator

no further are questions. Tran the now call for closing turn back remarks. Tom I There to will

Tom Tran

joining call morning held and Thank at our We you today's at webcast. everyone for you this virtually connect also hope a.m. soon AGM XX:XX to with

reach Investor If out any questions you Thank Relations. have you. please to

Operator

conference today's call. concludes This

You may now disconnect.

Aimia (AIMFF) 14 May 212021 Q1 Earnings call transcript