AIMFF - Earnings call transcript Q2 2022

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Operator

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

Second Quarter 2022 Results Conference Call. [Operator Instructions]. This call is being recorded on Friday, August 12, 2022. I would now like to turn the conference over to Steven Leonard. ahead. go Please

Steven Leonard

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

performance Before speakers the like our we With me pertaining I'd everyone call statement. get review today the to are to strategic is of will CFO. Phil Aimia's Mittleman, Michael to our Lehmann, the forward-looking and Leonard, who Aimia's cautions investments. remind and Michael, President. begin our Steve highlights, our CEO; on cover by risk the Phil factors And my statements underway, name followed will

it over me at to through questions we'll call the handing Phil. take the time to have for the you end. Before results quarter, over for to hand -- With your me that, for the me let

Philip Mittleman

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

continue quarter. to This our with recap free transaction the first strategic pipeline to advance We closed. strategy debt in towards To of strong $XXX our in $XXX stakeholders. the the existing deploy flow pursue value track million PLM. records losses, we and investment of With an long cash of highlights on while comment maximizing returns the opportunities of Beginning of capital investments, generation. seeking tax no actively to and deliver liquid to our new with continue holdings approximately to second for exciting opportunities cash chance our is since it million

some any the not and pleased in fees closing do taxes more which expect The million very proposed are this that was received transaction. cash share, or announced on aside we to are on net February. when We report common cash transaction we pay from proceeds than we per additional transaction-related million $XXX to $X.XX in $XX

an the towards in losses. to program Canada XXXX. of approximately the either the the tax ideally most receive of will majority or gross or of In million targeted sizable our net stakes a should proceeds in achieve deploy to by U.S. Aimia operating earn-out $XX intends businesses utilize PLM basis significant minority on are annual eligible addition, we billings that acquisition cash-generative

We the our proceeds repurchase renewed of which under in to shares NCIB, a quarter. we will also to the use portion continue

year, over including million shares repurchased X this we program. far the So current have shares, X.X million under

have X.X We automated available an under program share by repurchase million purchase plan. shares current the to supported NCIB

a discussed our to buy we back common previously, As we intrinsic asset see our continue significant to stock as opportunistically value. net discount we

nation. TRADE Caribbean new facilitate this Republic, of TRADE opening to where for Middle quarter as cross-border to Moving X. recently X global Europe, there in into the opportunities America, new Latin a opens X Asia. automotive to continues transactions imports East the trade quarters across exciting announced the it grow TRADE are and Dominican Africa,

for and While commercial we achieve have its billion fundraising the year. seen market approximately this companies, growth headwinds to strategy TRADE to technology in X continues in vehicle sales on gross $X execute

with to focus extension will collaborative Recently, on platform. business are Kognitiv. Kognitiv strengthening successful to Kognitiv securing approach that through collaborative grow, with contract to its to adapt Bank its different candidates National transform a several candidates the global commerce. prime benefit from triumph multiyear across that to Moving brands continues utilize in -- commerce empowering verticals pipeline of Australia new and to benefits is

shutdowns environment and similar Media. Media situation operating is a Clear its The stands offering. have Chinese market recent for to challenging and of Moving is slowing benefit to sizable XXXX our COVID-related responded facing that created first in Clear to China, advertising economy business and a investment position in the enhanced cost-saving implementing by the half is and a high-quality has situation initiatives. Media from digital to Clear that

of This increased quarter there's XXXX. recover, represents to the more provide but period uniquely value its airline demand XXXX the with operating A levels, carried develop that, benefit Capital in enhance very on turn on million positive. floor further Asia, travel sizable about Xx to investment from positioned Southeast restrictions. me updates passenger the see Mike? the capitalize is low-cost our region than continues emerges room you Asia pent-up to A. airline investment continues And let some travel volume Moving same X.X the COVID XX% trend the assets. digital Mike and second This of to still in Southeast to the the Capital so over our for of across as is to results, in AirAsia passengers, the In to carried the portfolio. while

Michael Lehmann

its Phil, good second quarter of of TRADE XXXX morning Thanks, completed X. XXXX, in develop where to and in the the its a begin TRADE growth I'm trajectory. on generated review sales million going gross fourth The orders, on sales. challenges were to billion and side, acquisitions vehicle cost presents $X holding operational approximately $XXX of financing company quarter is of trade confident the to with right path and that estimate the X year-to-date, trade Including is of year $XXX vehicle growth full platform certain which which the we're to expand our million in continues everyone. to or

model. loss service improve and expense EBITDA engagements. expenses. delivery travel through from revenues which million, due from on by and its to over continuing cost revenue maximizing mainly dampened to expanding by over focus was improved and an from an due year, clients commercial Adjusted or million it continues same continues related existing base still operating a hospitality improvement quarter, Kognitiv Kognitiv. from In initiatives as operations well by new operations revenues as aligns of same the of COVID-XX. its widening the ancillary were XX% growth $X.X mainly $XX.X travel to on growth structure be Kognitiv client improved removing of to to million, scope lower restrictions maximize current albeit reduction of the their clients increase its subscription focused year, as period last last the period $X.X inefficiencies million to to on member $XX.X to Moving costs continuing second clients

Clear year for down there to X XXX all on Beijing, to of challenging of China. period bus outdoor the China. such continued similar were the to including demand Media's has environment first and Guangzhou temporarily Media. XXXX shutdowns half XX, and same reduced. operating out-of-home restrictions advertisers XX% as XXXX revenue throughout for ended the was in Total Shanghai, when Moving months last COVID-related Clear million, the been many similar June China's is a shelters, advertising largest cities, for mobility within creating This Due from

environment, and carrying lifted, similar a historical This that the the of its weakening the rebound in for of time advertising outdoor our now recorded expect to tough return on within anticipating marketing But being delayed. we demand adjustment world quarter based reduction this are business current time, recovery levels. the to rest we environment, a the Given is was the Clear value million. $X revenue restrictions the market is and mobility we're Once until Media's the EBITDA that seeing. to currently

A. Capital is up Next

for or the in air seen removed Southeast COVID region relaxed has as travelers. resurgence a Asia all requirements travel has

of and approximately pent-up $XXX,XXX, taxes was for finally, fees loss income to in $XXX,XXX noncash And Malaysia, Thailand from quarter Investment operating intangibles. earnings were investment turning Capital Management was for $XXX,XXX, business. nonrecurring the expected, management Indonesia, A's better Philippines expenses of As and each our drove the airlines. demand including before Revenue a within metrics dramatically and of amortization

broad-based to financial through second due down the negative with let management Steve? of concentrated you results. end XX.X% in sequentially, weakness the of equity were $XXX.X that, largely by which to global it the over Steve under the Assets markets. quarter, me million turn value-oriented the portfolio, at to impacted the performance take And was

Steven Leonard

Mike. Thanks,

in from million in securities reduction In Kognitiv's before was with a year, million million, mainly million begin driven decrease expenses movements year. compensation expenses. again, the operating compensation, the professional of to our expenses. and million Clear insurance same million from results $X.X to as and covering the same of fees professional and last of were the net loss expenses, and pickup value segment a year, net Media share of by other office million a in corporate second we and fees Within professional as marketable the consolidated performance noncash from $X.X by our mainly to $XX quarter of in in million $X.X the was of our lower compared $X.X Let's of in the second Reported down our value quarter, and which $X share-based income quarter, performance $X fair other were fees $X.X change down Starting million investments. share-based loss. equity carrying $X.X consolidated the last advisory of of negative compensation, in other period related expenses, quarter. and million expenses million last Negative includes technology total well $X.X move investments to cash results.

comprised second and mostly net and Precog, Moving and under end ended cash We of investments VI the related were million held from cash excluding U.S. $XXX were million. in main of the movements the not dividends $XX.X of million of million. tax shares of the million, quarter. and of the with quarter at the million costs million tax cover million, quarter, the to second this $XX.X holding cash on securities in shares $XXX in U.K. approximated in quarter. total marketable in And the $XX.X operating $XXX repurchase the cash losses some in $X.X the $X.X movements Including of million operating NCIB, proceeds liquid Canada and sale the of $X.X major marketable the million million, and at losses, were A Capital for $X.X Available to $X.X total losses Part cash, capital quarter of end securities preferred

up mitigate As back to with let our strategy. to Phil wrap remarks. to with mentioned me concluding it few taxes turn And tax losses that, Phil? earlier, associated utilize with we over a to intend investment these

Philip Mittleman

Thanks, Steve.

least. the while this long transaction success common and history on into moving in With cash-generative Aeromexico We'd to thank a capital PLM outcome deploying We efforts very the us, this are for structure are was to their an also and Aimia management like and to execute divestiture, behind done. careful bankruptcy PLM efforts our entire in our with like management continue difficult to most this as thank Premier advisers its opportunity tremendous for I'd Club businesses and getting asset our stock. we program. tireless and to a say this difficult a with complex their and tireless Aeromexico the during take to wholly-owned buy achievement with forward successful board and wish the loyalty team airline-related a completing a their Aeromexico we now pandemic and transaction teams pleased the PLM with airline extremely of proceedings of through We focused period transaction. aviation partnership, worldwide back

on potential you We in providing are conducting look forward to investments, diligence and due we actively further course. new updates

Unidentified Company Representative

concludes ahead go that and remarks. questions. today's Operator, prepared prompt Please for

Operator

[Operator Instructions].

from question comes TD first from Your Securities. Brian Morrison

Brian Morrison

the I time with know evaluate on next sort know getting is line. us over there's to guess opportunities. many you're going some some is Congratulations you these I But no out to proceeds. of give finish wondering can just the however, go hard firm the to reallocating I reallocate date, detail proceeds. PLM I'm the the not but what had getting about more process question, dragged color? duration maybe you've into

Philip Mittleman

at at -- the can. We markets transaction had want quickly the lot We a forcing Phil. advanced But not some looking we're And before serious on doesn't obviously know a dislocation. to doesn't the target And really diligence worldwide Brian, same listen, cash to idle cash of We've we've in have closed. we since make as you benefit know, sense. work been actively as been opportunities. transaction it's we this that pretty as put time, anybody.

So the opportunities increased. have

as their equity markets a You stepping expectations back downward, kind and adjusting uncertain, takes debt and time. see that sellers are private of firms the little seen you've

we of cash So other advantage news we're amount debt we good have, with to don't relying markets that. as that on take have is, might. to be The trying of firms the as

-- great some So opportunities. so seeing we're

under that But because get assets work. feel that So said, sheet. our we're to of see of think But as feel the stock we can belt change as the X we change others pursuing. urgency think will that we're and cash you working I'm that start react X that you those of or things. the have deals quickly cash and to sure not and have will we you would that frustrating the to But once forcing on we feel the to -- I we I backbone not to it's our get say -- and that as balance we're anything. type and I the earnings, see you

So it. we recognize the urgency and we feel

Brian Morrison

Okay.

let's further. So step X take that

So you've cash net your -- price $X.XX the is per of press. when you got share share about track

$X got about your remaining assets. $XX essentially, you've share per million. all So for That's about of

So I purchasing any sort being with preps to with with you, returns other there be. this at shareholders in other there's here Aimia active might value capital agree whatever it than dislocation Is for or of it another or NCIB. active time just create a your ways through point

Philip Mittleman

that by these them what's is value to and wisely, that to can NAV. in of I in marker because things the you up we're increasing they're And valuing of assets that mean think we at people these you by to things and way that lack where get investing value going is these can't I how only can and when our to a you and clarity recognize the other on going value also we're what understand see just market. that value it's but creating a provide wind going hard by predict It's the creating and #X you a actually way there's do share. $X some on say --

So that's frustrating.

just we We while we undervalued. and balancing Invest you and And us much as combination. it be deploy can as on it's And But that's in will significantly and it's those. their value into create our create people point think committed and -- stock. stock this have going buybacks that can what to I a capital value and real wisely with act. shareholders. create I once the see Aimia on We're So capital as for hold this think have. buying think kind back and we're not refocus value disclose confidence not it we're come can focusing and -- we buy aggressively. things. way to It's that value-creating can in value the clearly on those they we much a to of as clear to they obviously, see and they them deals give and to in we

Brian Morrison

as going private about that is X quite this private I guess market looks you're last when you're be question to right. valuations All being the tricky well seems like I that have actually time. point talking at X investment TRADE the in

or when of Just think Or wondering be what you the financing? event next market of see another we think that one? when might be would monetization on can would we round a

Philip Mittleman

I transaction form raising value of event. or Yes. you're type transactions, markers really some X mean a in money I either come of you're doing of guess,

way. organic now, have in way equity equity So the focusing I that we're tech recycling the markets as for think growing with that on debt they and right the are they capital and growth, think I the just

as do prudently think capital some for focusing of do we is see to the beneficial they going it. soon an we're as meantime, type stakeholders, a using at value continue transaction we that we'll that have. So growing on to it In the opportunity

Operator

Mr. no time. questions Please Leonard, are further this there proceed. at

Steven Leonard

quarter Thank everyone. look at you, to call, and next will Okay. up That wrap you you. forward Thank talking the to call. our we

Operator

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

Aimia (AIMFF) 12 Aug 222022 Q2 Earnings call transcript