(All figures in Canadian dollars unless otherwise
noted)
TORONTO, March 16,
2023 /CNW/ - Aimia Inc. (TSX: AIM) reported its
financial results for the three months and twelve months ended
December 31, 2022.
Q4 2022 Highlights and Recent Events:
- Announced acquisitions of Tufropes and Bozzetto for total
consideration of approximately $585
million. Taken together, these two businesses generated
approximately $72 million in proforma
Adjusted EBITDA(1) for their most recent fiscal
years.
- Ended 2022 in a strong financial position, with over
$540 million of cash and liquid
securities and tax losses of over $660
million.
- Increased capital return target to $100
million, of which Aimia has executed $36.5 million in open market purchases (since
2022).
- TRADE X's asset-light model has begun bearing fruit, and in the
first months of 2023 saw margins improve.
- Kognitiv, under the guidance of a new CEO, Tim Sullivan, has accelerated its cost cutting
efforts and has begun executing a new business plan.
- Clear Media expected to enjoy a strong recovery as two years of
zero-Covid policy ends in China.
- Capital A (formerly AirAsia) experiencing a strong rebound in
business.
Phil Mittleman, Chief Executive
Officer of Aimia: "We ended 2022 in a strong financial position,
with over $540 million of investable
cash and liquid securities, a diversified portfolio of holdings
that we believe are poised to deliver strong results in 2023, and
tax losses of over $660 million that
will help shield a sizeable portion of our taxable income and
capital gains for years to come. During 2022, Aimia bought
back 8.3 million common shares on the open market, fully utilizing
its most recent NCIB, for total repurchases in 2022 of $36.5 million. In addition, we welcomed two new
independent board members last year, Linda
S. Habgood and Kristen M.
Dickey, which provide valuable experience and depth to our
board."
Q4 2022 financial highlights:
HIGHLIGHTS
|
Three Months Ended
December 31,
|
(in millions of
Canadian dollars,
except per share amounts)
|
2022
|
2021
|
YoY %
Change
|
Consolidated
|
|
|
|
Income
|
(11.1)
|
(5.8)
|
91.4 %
|
Expenses
|
10.6
|
7.7
|
37.7 %
|
Loss before income
taxes
|
(22.0)
|
(13.8)
|
59.4 %
|
Net Loss
|
(23.3)
|
(14.6)
|
59.6 %
|
Basic loss per Common
Share
|
(0.32)
|
(0.19)
|
68.4 %
|
Distributions received
from PLM
|
-
|
5.0
|
**
|
Cash from (used in)
Operating Activities
|
(6.0)
|
21.2
|
**
|
** Information not
meaningful
|
Mr. Mittleman added, "We are also excited about our previously
announced acquisitions of Tufropes and Bozzetto earlier this year
for total consideration of $585
million. These two businesses generated approximately
$72 million in proforma Adjusted
EBITDA(1) for their most recent fiscal years, with high
free-cash flow conversion, providing Aimia with a strong foundation
on which we will continue to build. These two companies will
form the backbone of our strategy to continue to acquire businesses
that generate significant cash flow for Aimia, utilizing our
sizeable tax assets, while presenting strong opportunities for
further growth. Moreover, as we recently announced, we are
increasing our previously stated $75
million capital return target to $100
million, of which we have executed $36.5 million in open market purchases in
2022."
Tufropes:
- On January 31, 2023, Aimia
announced that it has signed definitive agreements to acquire all
of the issued and outstanding shares of Tufropes Pvt Ltd. as well
as substantially all the net assets of India Nets (together
referred to as "Tufropes"). Aimia will pay a purchase price of
$252.6 million(2) on a
cash-free and debt-free basis, subject to customary adjustments
related to net debt and working capital at closing. Paladin Private
Equity LLC ("Paladin") acts as Aimia's partner on the
transaction.
- Aimia is projecting a favorable working capital adjustment at
closing, and based on the current INR rate, we expect the total
consideration to be reduced by approximately $17.5 million(2). Including this
adjustment, the purchase price multiple would represent
approximately 9.9x 2023 Adjusted EBITDA.
- Tufropes is expected to achieve annual revenue of approximately
$130 million(2) for the
fiscal year ending March 31, 2023,
and industry-leading Adjusted EBITDA margins of approximately
18.5%. Based on reasonable assumptions such as operational
improvement initiatives, as well as the optimization of product
mix, Adjusted EBITDA margins are expected to grow above 20% within
the next two years. Since 2001, the company has grown revenue at a
compounded annual growth rate of approximately 20%, with limited
capital investment requirements and high free-cash flow
conversion.
- Upon closing, joining the existing excellent management team
will be Jack Wang, President.
Tufropes will continue to be overseen by its local, senior
operations managers.
- Aimia expects the Tufropes transaction to close on or about
March 17, 2023.
- An updated, comprehensive Tufropes presentation is now
available on Aimia's website
www.aimia.com/investor-relations/events-presentations.
Bozzetto:
- On March 6, 2023, Aimia announced
that it has signed a definitive agreement to acquire substantially
all of the issued and outstanding shares of Giovanni Bozzetto S.p.A. (referred to as
"Bozzetto Group", "Bozzetto") from Chequers Capital and other
minority shareholders for $332.4
million(3) (or approximately 7x Adjusted 2022
EBITDA).
- It is anticipated that the acquisition will be financed with a
combination of cash and debt, with an expected level of debt of
approximately 3x Adjusted EBITDA, or approximately $135 million. Bozzetto achieved annual revenue of
approximately $330
million(3) and Adjusted EBITDA of $48 million(3) with an Adjusted EBITDA
margin of 14.5% for the fiscal year ended December 31, 2022. Transaction closing, which is
subject to regulatory approval and other customary closing
conditions, is expected to occur before the end of the second
quarter of 2023. The executive management team of Bozzetto, led by
Roberto Curreri and Stephano Risso, will reinvest a material portion
of their net proceeds from the sale representing a minority
position of up to 6%.
- Aimia sees significant opportunities to continue to grow this
business both organically and through accretive acquisitions, and
Aimia is in advanced discussions with several potential
targets.
- Paladin will act as Aimia's partner on the transaction.
External Financing Status on Announced Transactions
- Aimia is in active discussions with lenders and expects to
achieve a level of borrowing of 3x Adjusted EBITDA for both
acquisitions, with one of the financings expected to close before
the end of the second quarter of 2023.
Increases Share Buyback Target up to $100 Million
- On March 6, 2023, Aimia announced
that its Board of Directors has approved, subject to certain
conditions, an increase in its share repurchase program with
authorization to purchase up to $100
million of common shares of Aimia (inclusive of share
buybacks completed in 2022), and in connection thereto, confirms
its intent to renew its Normal Course Issuer Bid ("NCIB") which is
coming up for renewal in June
2023.
- During 2022, Aimia bought back 8.3 million common shares on the
open market, fully utilizing its most recent NCIB, for total
repurchases in 2022 of $36.5 million.
With this new target, $63.5 million
remains available for additional repurchases.
- The renewal of the NCIB in June will be subject to Toronto
Stock Exchange ("TSX") approval and achieving the full $100 million share buyback target is subject to
closing one or both external debt financings, both of which are
actively progressing, for the previously announced Bozzetto and
Tufropes acquisitions. Based on the share count on March 1, 2023, the renewal of the NCIB would
represent the ability to purchase approximately 6.4 million
additional common shares, representing approximately 10% of the
public float of Aimia's outstanding common shares. Once all
permissible repurchases of common shares under the NCIB have been
completed, Aimia will consider other buyback mechanisms to
facilitate additional share repurchases to achieve the targeted
remaining $63.5 million. Since 2020,
Aimia has repurchased 12.8 million common shares, reducing Aimia's
outstanding share count to 84.2 million.
This quarterly earnings release should be read in conjunction
with Aimia's consolidated financial statements and management
discussions and analysis (MD&A) for the year ended December 31, 2022 which can be accessed on SEDAR
as well as Aimia's website under Investor Relations.
Holdings Segment Results for Q4 2022
During the fourth quarter of 2022:
- The Holdings segment reported loss from investments of
$11.4 million, mainly related to a
negative net change in fair value of investments of $10.2 million.
Expenses from compensation and benefits, professional, advisory
and service fees, as well as insurance, technology and other office
expenses amounted to $6.3 million,
down $0.3 million versus the same
quarter in the prior year, mainly due to:
- A decrease in compensation and benefits of $1.6 million, due primarily to a decrease of
$1.5 million in share-based
compensation resulting from a larger increase in Aimia's price per
common shares in the three months ended December 31, 2021, compared to the same quarter
in the current year, as well as lower vesting expense of the DSUs
due in part to a lower quantity of outstanding DSUs subject to
vesting conditions.
- This was offset in part by an increase in professional,
advisory and services fees of $1.5
million, primarily due to $2.1
million of transaction costs recognized in the current
period in relation to the Tufropes acquisition.
Equity-accounted Investment Performance Summary
Kognitiv
Aimia owns a 48.8% equity stake in Kognitiv as of December 31, 2022.
Kognitiv's revenues are derived from platform subscriptions and
commerce activity to global clients across the financial services,
media, telecom, travel and hospitality and retail industries.
Customer retention at Kognitiv continues to be high as it has
renewed contracts with major brands such as HSBC, National
Australia Bank and Avis earlier this year.
Kognitiv is undertaking a series of initiatives to reduce costs
and drive efficiency as it rolls out its commercial offering and to
secure additional sources of financing as necessary including
divesting non-core travel assets.
The table below summarizes the performance of Kognitiv for the
three and twelve months ended December 31,
2022, and 2021. A detailed analysis of its performance is
available in the MD&A:
Kognitiv (millions
of Canadian dollars)
|
Q4
|
Q4
|
FY
|
FY
|
|
2022
|
2021
|
2022
|
2021
|
Revenue(1)
|
12.5
|
12.9
|
47.7
|
47.7
|
Net loss
|
(7.2)
|
(15.7)
|
(47.3)
|
(52.3)
|
Adjusted
EBITDA(1)(2)
|
(5.9)
|
(11.1)
|
(32.3)
|
(39.9)
|
1. Kognitiv's financial
results are presented on a continuing operations basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. A non-GAAP measure.
Non-GAAP financial measures are defined and reconciled to the most
directly comparable GAAP measures in the section "Non-GAAP
Financial Measures and Reconciliation to Comparable GAAP Measures"
of this earnings release. See caution regarding Non-GAAP financial
measures at the end of this earnings release.
|
Other Investments
TRADE X
Aimia owns a 11.8% fully diluted equity stake in TRADE X as of
December 31, 2022.
TRADE X is a global B2B cross-border automotive trading platform
that connects buyers and sellers through an online marketplace
powered by the TRADE X 'Brain' platform, a machine-learning,
AI-driven technology which aids sellers in finding the world's
highest bidders and gives buyers access to the best source
markets.
Preferred shares
As of December 31, 2022, the fair
value of the preferred shares has been estimated at $40.2 million (US$ 29.6
million) and Aimia recorded unrealized fair value losses of
$7.8 million and $4.4 million during the three and twelve months
ended December 31, 2022,
respectively, for this investment. The unrealized fair value loss
recognized in the three months ended December 31, 2022, is mainly a result of a
pullback in volume and a reduction in vehicle prices due to market
headwinds that the used car industry has experienced caused in part
by rising interest rates and prospects of recession, which, despite
TRADE X's growth during the year, has led to delays in the
execution of TRADE X's business plan. Aimia believes TRADE X will
continue to grow as the business of automated cross-border used car
sales matures and as TRADE X continues to open new sales
corridors.
Convertible note and warrants
In December 2021, Aimia invested
$31.6 million (US$25.0 million) in a convertible note of TRADE
X. The note originally had an 8% interest bearing rate and, unless
converted as a result of a qualified financing, was scheduled to
mature 12 months after the closing date. At maturity, Aimia had the
option to convert the note and accrued interest into TRADE X
preferred shares using the original issue price, which is based on
the preferred shares series A financing round mentioned above, or
have the note and accrued interests paid in full. At maturity,
Aimia and TRADE X negotiated an amended and restated secured
convertible note ("A&R note").
The A&R note has an 8% interest bearing rate (until the
interest peek date) and, unless converted as a result of a
qualified financing, will mature in December
2023. At maturity, Aimia has the option to convert the
A&R note and accrued interest into TRADE X preferred shares
using the original issue price, which is based on the preferred
shares series A financing round, or have the A&R note and
accrued interests paid in full.
As of December 31, 2022, the fair value of the convertible
note has been estimated at $35.0
million (US$25.8 million).
Aimia has accrued interest of $2.6
million, as well as recorded an unrealized net fair value
gain of $0.4 million during the year
ended December 31, 2022 for this investment.
TRADE X generated gross vehicle sales (GVS) of approximately
$150 million in the fourth quarter of
2022, a significant increase from the same period last year, mainly
the result of acquisitions closed into the fourth quarter.
Clear Media
Aimia owns an indirect 10.85% shareholding in the privatized
Clear Media as of December 31,
2022.
Clear Media is the largest operator of bus shelter advertising
panels in China, with leading
market shares of more than 70% in top-tier cities, including
Shanghai, Guangzhou and Beijing, and broad presence in fast growing
cities across the country. Clear Media provides one-stop solutions
for nationwide advertising campaigns to their customers, through a
network of more than 70,000 panels covering twenty-four cities, and
573 digital panels as of December 31,
2022.
During the year ended December 31,
2022, facing the resurgence of COVID-19 cases, China applied a zero-COVID policy, which
triggered full and partial lockdowns in many Chinese cities,
including Shanghai, Beijing, and Guangzhou. These lockdowns have significantly
affected the demand for outdoor advertising during the year and
therefore, Clear Media has reported a decrease in revenue of 43%
for the full year over 2021. Clear Media has mitigated these
impacts via various cost-saving plans and delays in capital
expenditures compared to normal course and continues to do so.
As of December 31, 2022, the fair
value of the indirect investment in Clear Media has been estimated
at $54.7 million. Aimia recognized an
unrealized fair value loss of $13.6
million during the year ended December 31, 2022, mainly due to the impacts of
COVID-19 related lockdowns in China on demand for outdoor advertising, which
have caused delays in the execution of Clear Media's business plan,
offset in part by the strengthening of the Hong-Kong dollar versus the Canadian
dollar.
Balance sheet and Liquidity
As of December 31, 2022, Aimia had
cash and cash equivalents of $505.3
million.
Aimia's liquid portfolio of publicly listed equities had a
market value of $36.7 million at the
end of the fourth quarter of 2022 (excluding marketable securities
held through Precog, presently valued at $16.2 million).
Aimia remains actively focused on investing in companies with
long track records of free-cash flow generation that will also
utilize Aimia's sizeable tax assets.
Available Tax Losses
Tax losses approximated $660
million as of December 31,
2022, comprised of $260
million in capital losses and $400
million in net operating losses.
In the fourth quarter 2022, Aimia utilized approximately
$130 million of net capital losses to
mitigate taxes on the repatriation of proceeds from foreign
affiliates.
Returns to Shareholders
Normal Course Issuer Bid (NCIB)
On June 17, 2022, Aimia announced
it had received approval from the TSX for the establishment of a
new NCIB to repurchase for cancellation up to 7.8 million common
shares during the period from June 21,
2022 to no later than June 20,
2023. On July 29, 2022, in
connection with this program, Aimia entered into an automatic share
purchase plan.
Dividends
Dividends of $3.1 million were
paid for the fourth quarter ended December
31, 2022, on the two series of outstanding preferred shares,
and $12.6 million for the full year
ended December 31, 2022.
On March 15, 2023, the Board of
Directors of Aimia declared quarterly dividends of $0.300125 per Series 1 preferred share and
$0.375688 per Series 3 preferred
share, in each case payable on March 31,
2023, to shareholders of record on March 24, 2023.
(1) On a proforma basis including full year financials
of the recent acquisition by Bozzetto of Levaco Chemicals GMBH
completed in November
2022.
(2) Based on CAD/INR of 60.24 as of
March 15, 2023.
(3) Based
on EUR/CAD of 1.4645 as of March 15,
2023.
Quarterly Conference Call and Audio Webcast
Information
Aimia will host a conference call to discuss its fourth quarter
2022 financial results at 8:30 a.m.
EDT on March 16, 2023. The
call will be webcast at the following URL link:
https://present.webinar.net/gkYLylQoWXv. 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/
Aimia's fourth quarter 2022 Financial Statements, MD&A, and
Financial Highlights Presentation will be filed on SEDAR.com around
7:00 a.m. EDT on March 16, 2023, as well as on Aimia's website
under Investor Relations.
This earnings release was reviewed by Aimia's Audit Committee
and was approved by Aimia's Board of Directors, on the Audit
Committee's recommendation, prior to its release.
Appendix
The highlights for the twelve months ended
December 31, 2022 and 2021, are as
follows:
HIGHLIGHTS
|
Years Ended December
31,
|
(in millions of
Canadian dollars,
except per share amounts)
|
2022
|
2021
|
YoY %
Change
|
Consolidated
|
|
|
|
Income
|
476.5
|
12.6
|
**
|
Expenses
|
34.1
|
25.5
|
33.7 %
|
Earnings (loss) before
income taxes
|
445.3
|
(12.1)
|
**
|
Net earnings
(loss)
|
440.1
|
(16.4)
|
**
|
Basic Earnings (loss)
per Common Share
|
4.88
|
(0.32)
|
**
|
Distributions received
from PLM
|
2.9
|
26.4
|
**
|
Cash from (used in)
Operating Activities
|
(17.7)
|
21.4
|
**
|
** Information not
meaningful
|
About Aimia
Aimia Inc. (TSX: AIM) is a holding company with a focus on
making long-term investments in public and private companies, on a
global basis, through controlling or minority stakes.
The company owns a portfolio of investments which include: a
10.85% stake in Clear Media Limited, one of the largest outdoor
advertising firms in China, a
48.8% equity stake in Kognitiv, a B2B company enabling global
brands to redefine loyalty with solutions for multi-enterprise
collaboration, a 11.8% equity stake in TRADE X, a global B2B
cross-border automotive trading platform as well as a wholly owned
investment advisory business, Mittleman Investment Management, LLC.
Upon closing of the previously announced acquisitions of Tufropes
and Bozzetto, Tufropes and Bozzetto will be added to Aimia's
portfolio of investments.
For more information about Aimia, visit www.aimia.com.
About Tufropes
Founded in 1992, Tufropes is a global leader in the
manufacturing of high-performance synthetic fiber ropes and netting
solutions for global aquaculture, maritime, and other various
industrial customers. Tufropes' products are known for their unique
combination of design and performance characteristics (including
resistance to UV radiation and abrasion, high strength vs. weight).
The Company is uniquely positioned to serve the global maritime
sector across a huge range of SKUs (>35,000), a global network
of sales distributors, 60+ sales employees, 70+ countries with
distributors, and at unprecedented scale (manufacturing capacity of
~70,000 MT p.a.).
Find out more at www.tufropes.com.
About Bozzetto
Founded in 1919 and headquartered in Filago, Italy, Bozzetto is one of the world's largest
ESG-focused providers of specialty sustainable chemicals, offering
sustainable textile, water and dispersion chemical solutions with
applications in several end-markets including the textile, home and
personal care, plasterboard and agrochemical markets. Bozzetto has
over 1,500 long-standing clients in over 90 countries, an
exceptionally vast portfolio of over 2,000 products and a global
production footprint with 6 manufacturing facilities and over 500
employees worldwide.
Find out more at www.bozzetto-group.com.
About Paladin Private Equity LLC
Paladin Private Equity LLC ("Paladin") is a global private
equity firm based in the US (Los
Angeles & New York) and
Germany (Hamburg) with a focus on investing in and
building global market leaders within the industrial technology
sector. Paladin's investment strategy targets unique companies that
dominate highly attractive niche markets encompassing
highly-engineered, manufactured products and technology-enabled,
business services. These companies are distinguished by deep and
sustainable competitive advantages and with as yet unfulfilled
global growth, lean management and digital technology performance
improvement potential. Paladin's investment team, board of
directors and senior advisor network have extensive experience
advising management teams on global sales & marketing growth
strategies (including new product development and geographic
expansion), executing and integrating global M&A, optimizing
complex global manufacturing, procurement, and supply chains and
pioneering the use of lean management and cutting-edge digital
technology to automate and modernize operations for maximum
efficiency, quality, innovation and safe operations.
Find out more at http://www.paladinprivateequity.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).
Aimia does not present Non-GAAP financial measures for its
consolidated results. However, in order to complement the analysis
of the financial performance of its investments, certain Non-GAAP
measures are presented. A reconciliation to these investments' most
comparable GAAP measure is provided in this earnings release in
this section "Non-GAAP Financial Measures and Reconciliation to
Comparable GAAP Measures".
Kognitiv Adjusted EBITDA
Adjusted EBITDA for Kognitiv ("Kognitiv Adjusted EBITDA") is
earnings before net financial income (expense) and net income tax
expense adjusted to exclude depreciation, amortization,
shared-based compensation, restructuring expenses, business
acquisition/disposal related expenses and impairment charges
related to non-financial assets. Kognitiv Adjusted EBITDA is not a
measure based on GAAP, is not considered an alternative to net
earnings in measuring profitability, does not have a standardized
meaning and is not comparable to similar measures used by other
issuers. Kognitiv Adjusted EBITDA is used by Aimia and Kognitiv's
management to evaluate performance. Aimia and Kognitiv's management
believe Adjusted EBITDA assists investors in comparing Kognitiv's
performance on a consistent basis excluding depreciation,
amortization, impairment charges related to non-financial assets,
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 and Kognitiv's
management believe that the exclusion of restructuring and business
acquisition/disposal related expenses assists investors by
excluding expenses that are not representative of the run-rate cost
structure of Kognitiv.
A reconciliation of Adjusted EBITDA to Loss before net financial
income and income tax expense (GAAP) is presented below:
|
Three Months
Ended
December 31,
|
Years Ended
December 31,
|
(in millions of
Canadian dollars)
|
2022
|
2021
|
2022
|
2021
|
Loss before net
financial income and income tax expense (b)
|
(8.5)
|
(13.4)
|
(40.1)
|
(45.5)
|
Depreciation and
amortization
|
0.1
|
0.3
|
0.4
|
1.1
|
Share-based
compensation
|
(1.3)
|
1.8
|
2.0
|
3.8
|
Restructuring
expenses
|
3.8
|
0.2
|
5.4
|
0.7
|
Kognitiv's Adjusted
EBITDA (a)(b)
|
(5.9)
|
(11.1)
|
(32.3)
|
(39.9)
|
(a) A non-GAAP
measure.
|
|
|
|
|
|
(b) Loss before net
financial income and income tax expense as well as Kognitiv's
Adjusted EBITDA are presented on a continuing operations basis,
excluding discontinued operations.
|
Tufropes
Reference to (i) "Adjusted EBITDA" is the unaudited earnings of
Tufropes before interest, taxes, depreciation and amortization,
(ii) "Adjusted EBITDA margins" is Tufropes' Adjusted EBITDA divided
by its revenue, (iii) "free-cash flow" is Tufropes' operating cash
flow less capital expenditures, excluding cash interest, cash taxes
and changes in working capital, and (iv) "free-cash flow
conversion" is Tufrope's free-cash flow divided by its Adjusted
EBITDA. Adjusted EBITDA, Adjusted EBITDA margins, free-cash flow
and free-cash flow conversion are non-standardized financial
measures that are not calculated or presented in accordance with
GAAP. Accordingly, it may not be possible to compare Tufropes'
Adjusted EBITDA, Adjusted EBITDA margins, free-cash flow or
free-cash flow conversion with Adjusted EBITDA, Adjusted EBITDA
margins, free-cash flow, free-cash flow conversion or other
financial measures of other companies having the same or similar
businesses.
Bozzetto
Reference to (i) "Adjusted EBITDA" is the unaudited earnings of
Bozzetto before interest, taxes, depreciation and amortization,
(ii) "Adjusted EBITDA margins" is Bozzetto's Adjusted EBITDA
divided by its revenue, (iii) "free-cash flow" is Bozzetto's
operating cash flow less capital expenditures, excluding cash
interest, cash taxes and changes in working capital, and (iv)
"free-cash flow conversion" is Bozzetto's free-cash flow divided by
its Adjusted EBITDA. Adjusted EBITDA, Adjusted EBITDA margins,
free-cash flow and free-cash flow conversion are non-standardized
financial measures that are not calculated or presented in
accordance with GAAP. Accordingly, it may not be possible to
compare Bozzetto's Adjusted EBITDA, Adjusted EBITDA margins,
free-cash flow or free-cash flow conversion with Adjusted EBITDA,
Adjusted EBITDA margins, free-cash flow, free-cash flow conversion
or other financial measures of other companies having the same or
similar businesses.
Key Performance Indicator
TRADE X Gross Vehicle Sales
Gross Vehicle Sales represents sales income generated from
wholesale transactions and transaction fees from the platform.
TRADE X Gross Vehicle Sales is not a measure based on GAAP and does
not have a standardized meaning and is not comparable to similar
measures used by other issuers. TRADE X Gross Vehicle Sales is used
by Aimia and TRADE X's management to evaluate performance. Aimia
and TRADE X's management believe Gross Vehicle Sales assists
investors in comparing TRADE X growth performance to other
comparable businesses.
Presentation of Financial Information
The financial information of Aimia, Kognitiv and Bozzetto
referred to in this press release have been prepared in accordance
with GAAP.
The financial information of TRADE X referred to in this press
release is unaudited and has been provided by TRADE X's management
team. Certain of the financial information of TRADE X
referred in this press release is preliminary and subject to TRADE
X closing procedures and based on a number of assumptions and are
not necessarily indicative of results to be expected for any future
period as a result of various factors. During the course of
the TRADE X's financial closing procedures, adjustments to the
preliminary estimates may be identified, and such adjustments maybe
material.
The financial information regarding Tufropes referred to in this
press release has been derived from Tufropes' financial statements
which are prepared in accordance with Indian Generally Accepted
Accounting Principles ("Indian GAAP"). Indian GAAP differs in
certain respects from GAAP.
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 our 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 or phrases
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, statements with respect to the recovery of
Clear Media post zero-COVID policy in China; the results in 2023 of our portfolio of
holdings; closing of the Tufropes acquisition; closing of the
Bozzetto acquisition; Aimia's current and future strategic
initiatives and investment opportunities; the use of Aimia's tax
losses; the working capital adjustment at closing of the Tufropes
acquisition; Tufropes' revenue and Adjusted EBITDA margins for the
year ending March 31, 2023; the
growth of Tufropes' Adjusted EBITDA margins; new employees joining
the Tufropes' management team; reinvestment by the Bozzetto's
management team; acquisitions by Bozzetto; renewal of the NCIB,
including TSX approval and the total number of common shares
available for repurchase thereunder; the expectations and
intentions with respect to the NCIB and Aimia's repurchases
thereunder or under any other buyback mechanisms; the debt
financing with respect to the Bozzetto and the Tufropes
acquisitions; Kognitiv's series of initiatives to reduce costs and
drive efficiency; TRADE X's growth; payment of dividends; Aimia's
ability to source and execute on acquisitions on terms acceptable
to it.
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. While Aimia considers these factors, expectations
and assumptions to be reasonable, actual events or results could
differ materially from the results, predictions, forecasts,
conclusions or projections expressed or implied in the
forward-looking statements. 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 us can be found in our current Management
Discussion and Analysis and Annual Information Form, each of which
have been or will be filed on SEDAR and can be accessed at
www.sedar.com. Aimia cautions that the list of risk factors
included in such Management Discussion and Analysis is not
exhaustive. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and we disclaim any intention and assume 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.