AIMFF - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Aimia Inc.

First Quarter 2022 Results Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]. recorded May being XXXX. is call on X, Friday, This conference to to I like the call would now turn over Mr. Tom Tran, Head of Investor Relations. ahead. go Please

Tom Tran

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

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

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

Phil Mittleman

the Thanks, everyone good webcast on to and Tom, morning phone today. and

advance we with We while our quarter. pleased a had wholly the XX.X% owned subsidiary returns to LOI becoming Beginning in new for Aeromexico. announced PLM, existing deploy our value PLM, seeking which To are of investment it in results to holdings deliver stake stakeholders. first the capital recap first as highlights Aeromexico to Aimia maximizing result for closing entered PLM to in strong of February, towards strategic the Binding continue a our its opportunities into with with divest will quarter our strategy on of

the from PLM XX approval closing and advanced and has its has application make as Mexican been assumed. We towards definitive anti-trust contracts Chapter the emerged also Aeromexico we towards formally restructuring progress completed transaction, filed the PLM agreement. financial to and have continue completion of the been for

to towards the Canadian based majority significant one that the closing. or exchange deploy in our these generating proceeds will in the acquisition the the close rate businesses either the applying three the end rate of will million approximately transaction, majority of operating closing currency minority the of U.S. the allow to sizable will transaction Aimia on operating months. dollar stakes cash be Aimia dislocations Aimia more by ideally tax markets, Canada of this proceeds and backdrop or on after investment change net exchange next or legacy ongoing the tax Against to losses. to Upon March, receive opportunities. utilize proceeds will world which within expects intends XXX expect We Canadian at subject in capitalize the of at

market TRADE X. to XXX% it acquisitions we TRADE rate trade opens across help Latin and facilitate global Europe, growth at Moving accretive actively X first up that transactions is quickly lines year-over-year pursuing and closed Also can a XXXX. grow business to the current Africa, in complementary its scale sales of And with quarter, remarkable benefiting the in America, Middle markets X to new cross-border pipeline gross reach. quarters targeting QX TRADE companies vehicle automotive East acquisitions, TRADE key Asia. as from expand a in in robust X and continues

Kognitiv. to Moving

which Bank, collaborative to and Having continued seen Kognitiv to that successfully plans. contract the million our is grow, benefit executing growth businesses prime pleased approach global efforts extensions completed adapt, Australian a CEO, its new others. $XX transform by major commerce. Valley team collaborative global candidates with across Bank well achieve are made new verticals the are brands by strengthening engagement successful led Pearson. through to and drive to of positioned in includes of under its in plan business by a progress securing its management with pipeline its with from brands In Silicon We commercial and commercial several is different and President is Kognitiv Kognitiv quarter, accelerate as convertible financing Shawn renewals including Kognitiv to to amongst of National HSBC, XX.X Avis, platform. commerce its investment. many million its Kognitiv first note led empowering was

our XXXX responded advertising The is cost Media saving to the investment Moving environment initiatives. created situation situation COVID-related to that facing half by and Media. operating Chinese in economy Clear similar recent the challenging Clear first and is and slowing China have has a a of for implementing shutdowns to in

sizeable digital We continue closely its stands their to a And to they headwind. enhanced market as the are believe Clear benefit and this that developments navigate we business Media offering. high from business position through quality is monitoring

A, AirAsia. formally Moving to Capital investment in our

We pleased travel COVID the airline moves resume see the away borders reopening zero and its Malaysia’s of are very its the strategy. to that region domestic from

of significant number quarter increase for As Malaysia. domestic year-over-year led of by results, XXX% during first and carried recently reported the campaigns preliminary strong A’s in quarter the Capital passengers AirAsia travel promotional a to demand

We on pent-up Asia, to the travel sizeable expect uniquely across while the digital enhancing demand a value emerge assets. stronger capitalize the holding positioned and low pandemic for One Capital company Southeast as will of from air its airline cost

per XXX,XXX $X.XX began price year-to-date average the Finally, share. we repurchases buying of recently than back and current share NCIB common shares under more an

shares to executing interest we believe We accretive our as undervalued. have are a continue buybacks heightened

announced to to to the buybacks. investment Mike on intend further turn some we over our floor me million updates up these $XX towards of incoming PLM that, you provide with to allocate portfolio. Mike? As let previously, And proceeds

Michael Lehmann

airline strong from the In the to with PLM. by Thanks, which Phil, continued good a demonstrate significantly demand. to received has X.X benefited million distribution we PLM. morning and partner recovery and performance a my everyone. its begin Aeromexico, strengthened supported travel I’ll a for quarter, of operating recovery in remarks PLM

of longer within share our at reclassified PLM’s financial And in Following in investment our balance to end March. PLM net we announcement will divest help asset Aeromexico, results. income the PLM in no consolidated stake sale to the Aimia’s of for February on to we its our sheet report

trade Turning XXXX. XXX gross of quarter in same TRADE the to rate terrific annual were business million the has X. supported XXXX, price by of first China, Nigeria, a an cars in an sales selling year. volume of growth as over generated quarter XX% in the quarter, its XX,XXX of continues XXXX% such of decline acquisitions, to growth TRADE X completed its last the which into year-over-year of first new the fourth versus countries, expansion continued over Total sold XXX% results, last of X,XXX first Average mix. Mexico, over and due X QX XXX TRADE been represents quarter slightly sold X more than deliver UAE, increase was in business including which the over XXXX, to year. in vehicle corridors Japan, Netherlands. were cars TRADE quarter of

to expenses million, XXX,XXX impact was offset a reduced continuing of of picked Moving loss revenues professional were continuing improvement of quarter, related decline on the X mainly client of wins quarter fourth operating of to Adjusted from due XX.X EBITDA last first a Kognitiv. new by XX.X million sequential lower part of last up million, a fees mainly from a XXXX. this operations up XXXX. true that of due the from from quarter in quarter, X.X in quarter, sequential to million to the over In operations the setup revenues

by the revenue subscription with including We of of this which be Kognitiv client, the the client widening model, base, scope of on quarter. level its CPG to engagement. a to maximizing as pleased receptivity based and well identifying service expanding focus revenue as will cost ramp continue also inefficiencies. current growth Kognitiv structure continues from of begin to subscription existing Kognitiv removing addition is clients up its new by their improving

challenging in cities a Recently and significant as in which outdoor partial advertisers within COVID-related and triggered environment operating the China. Shanghai. for presence in shutdowns This Clear Shenzhen, to market many has Clear have Moving creating Media. is Guangzhou such full shutdowns Media a

which As first [indiscernible] financial past, equity positive investment XXX,XXX turn the finally investment asset demand turning offset that, quarter to portfolio, to negative our let and global flows in markets, XXX.X by to to broad we AUM shutdowns these based outdoor And breakeven. during management the advertising weakness me the due quarter, Revenue million of down for earnings rebound. fees for we taxes it the to business. impacted XX.X% in value-oriented from in income performance Steve sequentially, temporary part management to approximately And by in some was be largely with through was expect before the the concentrated, over you and results. anticipate will was the quarter. take Steve?

Steve Leonard

morning and good everyone. to Thanks, Michael,

million million XX.X Kognitiv’s of results, corporate investment reversed fees. as million as in a our office of advisory and negative and in XXXX. million pickup year, Precog of in and loss were in securities loss months covering Capital million X.X due insurance, X.X three the segment Let’s executive cash forfeited and mainly significant X.X includes A in again, X.X to investments consolidated to first begin by million well expenses, of the performance in of the ended previously quarter, quarter, before equity consolidated of due XX, compensation, of of well million fair in down also with lower due from total a compensation. first in to income in same price was change to as the in share-based million, to the year. were by Starting X.X movements offset we XX.X year, the Aimia by same The share value mainly change mainly which last on quarter with income move loss Reported other XXXX, the and driven quarter from to cash total from unvested the related unrealized a and non an share technology results million X.X to decrease was related the as last to X.X down marketable operating granted compensation, last performance first DSUs part connection increase expenses, the net expenses of expenses in management of were the Within the role compared March period quarter. professional fees Aimia the our share-based

movements tax movements to ended and ended million, Moving cover major including notes. investments for liquid XX.X cash, were U.K. PLM, investments total the quarter. million XXX of end million, the cash of in operating costs Tax losses to quarter with of from in operating Part mostly dividends me cash XX.X and million We excluding million on with The at investment X.X X.X cash with losses, total XXX now million quarter. million. the And in U.S. this Kognitiv’s main paid VI XXX and net in losses quarter We first investments of a capital Canada of liquid some totaled a the to in Phil? corporate million to a the of million received XX comprised X.X first in wrap were liquid over remarks. X.X quarter concluding million related and Phil at million it that, related XX.X distribution up let cash and preferred the turn few the and convertible

Phil Mittleman

Thanks, new share cash of PLM’s to continuing in potential PLM we start conducting further meantime, strong towards and actively while In transaction. Steve. completing our work are look a is we course. diligence to distributions due as to we you towards on in we the rata transaction updates XXXX accrue as providing closing off investments this the progressed forward pro

Tom Tran

the prompt Operator, Please and concludes ahead prepared that questions today’s remarks. go

Operator

the Please Ladies go and with Your will [Operator question-and-answer now question begin first Brian session. gentlemen, ahead. TD. Morrison from we comes Instructions]

Brian Morrison

morning Hey, guys. good

Phil Mittleman

Brian Hey

Michael Lehmann

Good morning, Brian.

Steve Leonard

morning. Good

Brian Morrison

cash So just and cash that update free your for EBITDA earlier earmarked of front? you the flow, on break-even financing, get and an the Kognitiv targets deployment should on the can to what comment just just terms in this maybe is of of cash you

Phil Mittleman

to Yes, “propping up” of funding industry a time the Aimia I important seeing the investment. say, this to recognize vested leading hope first skeptic outsiders to a this argue business mean, well, about come adequate in I its line. this could interest But investments. you this I funding is is think, could before kind has making what’s you’re them and think, get really is we this in scrub finish

its this they’re they and need skeptical checks they out So and up very it. bullish at with scrubbed a parties on what the large very that to the from looked adding it and bottom because really these a But eye new came with towards came money model was write really outlook in future.

people So that coming And see market. excited that see model. really we model of to large it couple vote see and support to we’re competence to that in the the recognize checks to nice big really it’s write important a from of obviously and and think it’s sector a that’s what they know future. we the very And

and we that see to funding is developments this adequate and optimistic really We’re there see. what happy continue we with we’re positive

Brian Morrison

appreciate Okay. I And then that.

need time but very this we’re confident the where deep supportive would they nice have the from obviously that very potential through? see cash of is Turning involved need group of at it with to shutdowns the partners but We’ve Clear is was going are model. the a really group they’ll that headwinds they Media, a that if Clear – where tremendous in point facing require business that seen a China, yet it’s And here you’re get is – needed, the you that infusion get pockets involved. funding as some just cash, with to that indication to to Or hiccup here? no it they’re the a

Phil Mittleman

nothing Absolutely, required.

Michael Lehmann

it’s Hey Mike Yes. Brian, Lehmann.

first look reared head reported kind They financials when its So, COVID of XXXX, initially. at are if semi-annually. you Those half out. back

You to XXXX. did first I was half cash half or from think, can and see XX% there XXXX dramatic first so dramatic very there that also slowdown, a rebound, a burn was they but

think certainly restrictions of a of and demand the of I action to some advertising So, and slowing elements it’s already loosening due just climate we’ve overall. those weakening is are outlook seen This the guidelines. business short-term transitory, COVID some right? near-term But

these first but like and the substantially. is up next that Digital but the XX XX, they The like So, slope and – rebound within, have in great. six second, grew year-over-year. panels moving to about Panels a they the within of And what talked cities to quarter, panels over demand who of kind plus likelihood continue great. demand going panels we’re is forward. are the their and that we grow The of anticipating positioning the positioning continue for rebound dramatically. months XX% digital as increase XX three, knows, last it

to continue tail somewhat to of the as then be going the So dog overall is revenues in get This have we’re we really – get do get pulled markets and Short of and term, pulled back about back some blips. investment. rebound. the excited tip advertising

how we’re about and So, trough deep but this about unsure optimistic prolonged be, really midterm. might

Brian Morrison

Okay.

Phil Mittleman

well also We them acquisitions competitors in advantage like times of have past, weakened the weakened during of take as seen this. partners or

benefit possible that is well. there So, as

Brian Morrison

question since for share held the that’s I number, Thank you million last why a there million, a it last or call. because that put active you question is Phil. to here. is, your XX The of you you long threshold pay? put that Okay. willing a the that, percentage last guess hasn’t you’re got that we buyback been QX XX with float is why a is count your Curious

Phil Mittleman

float. is Yes, the a your formula NCIB function an of for

so shares And you when million it math, do to approximately the equates X NCIB. per

Brian Morrison

right. it So indicate – all doesn’t

that threshold to a $X.XX. indicate willing So it doesn’t top pay is you’re

Phil Mittleman

number. No, it’s Yes. base shared a

Brian Morrison

guys. Okay. much Thanks very

Phil Mittleman

you. Thank

Michael Lehmann

Brian. thanks, Yes,

Operator

are no there questions Please Mr. proceed. further time. [Operator Tran, Instructions] at this

Tom Tran

for everyone webcast. call and you joining today’s Thank

speaking morning begins look you We As at forward XX. our to you. XX Thank then. to a AGM reminder, this

Operator

and and Ladies great please We that conference call day. for concludes today. lines. your thank Have ask participating gentlemen, a you you disconnect your this for

Aimia (AIMFF) 6 May 222022 Q1 Earnings call transcript