AIMIA reports first quarter 2013 financial results

Consolidated top line reflects 7 per cent growth in Gross Billings from
the sale of Loyalty Units

Increases annual common dividend by 6.25 per cent to 68 cents per share

• Consolidated Gross Billings growth of 4.6 per cent benefits from EMEA’s
  strong quarter
• Announced increase in Nectar Italia ownership to 100 per cent
• Renewed Normal Course Issuer Bid
• Maintaining 2013 outlook

FIRST QUARTER HIGHLIGHTS1	Three Months Ended March 31,			Quarter Over Quarter
(in millions of Canadian dollars, except per share amounts)	2013	2012 2		% Change
	As Reported			As Reported	Constant Currency
Gross Billings	561.1	536.6		4.6	4.6
Total Revenue	609.5	567.7		7.4	7.3
Net Earnings	45.7	44.7		2.3	na
Earnings per Common Share	0.22	0.24		(8.3)	na
Adjusted EBITDA	82.8	89.0		(6.9)	(6.9)
Free Cash Flow before Dividends Paid	(9.5)	18.3		(152.1)	na

1	Non-GAAP measures (Adjusted EBITDA and Free Cash Flow) and constant currency are explained on pages 6 and 7 in the section entitled Use of Non-GAAP Financial Information. Discrepancies in variances may arise due to rounding.
2	2012 financial information was restated to reflect the retroactive application of the amendments to IAS 19. Refer to Note 2 of Aimia’s Consolidated Financial Statements for the period ended March 31, 2013 for additional information.

 

MONTREAL, May 13, 2013 /CNW Telbec/ – (TSX: AIM) Aimia today reported
its financial results for the first quarter ended March 31, 2013. All
financial information is in Canadian dollars unless otherwise noted.

“This quarter our consolidated top line was bolstered by a solid
increase in the Gross Billings from the sale of Loyalty Units, which
represents nearly three-quarters of our total Gross Billings,” said
Rupert Duchesne, Group Chief Executive. “In particular, the EMEA region
was very strong in the first three months of this year.  We are on
track for 2013 and look forward to many successes in the balance of the
year across our global operations, including Canada with respect to the
negotiation of our financial partner contract renewals.”

Added Duchesne, “The dividend is an important facet of Aimia’s value
creation for shareholders. Our announcement today of a more than 6 per
cent increase in our annual common share dividend, together with the
renewal of our Normal Course Issuer Bid, further underscores our
ongoing commitment to shareholders.”

First Quarter Financial Highlights (Period ended March 31, 2013 versus
period ended March 31, 2012)

Consolidated – Strong top line driven by Gross Billings from the sale of
Loyalty Units

• Gross Billings in the first quarter of 2013 increased by 4.6 per cent to $561.1 million versus the first quarter of 2012, driven by a 7.1 per cent increase in Gross Billings from the sale of Loyalty Units.
• First quarter Adjusted EBITDA was $82.8 million, a decrease of 6.9 per cent in 2013 compared to the same quarter in 2012.

Canada – Solid margins with gross margin (before depreciation and
amortization) of 45 per cent and Adjusted EBITDA margin as a percentage
of Gross Billings of 29 per cent

• First quarter Gross Billings were $307.1 million compared with $313.2 million in the same period of 2012, a decrease of 2.0 per cent.
• Gross Billings from the sale of Loyalty Units amounted to $256.6 million compared to $261.7 million in the first quarter of 2012, representing a decrease of 2.0 per cent.
• The decrease is mostly explained by a reduction in accumulation at Air
  Canada relating to changes in the accumulation grid. This was offset in
  part by an increase in the financial sector driven by higher partner
  program conversions and a higher number of active credit cards, despite
  the lower average consumer spend per active credit card.
• Adjusted EBITDA was $89.1 million in the first quarter, a decrease of 8.7 per cent compared to the same period in the prior year.
• Total Aeroplan Miles redeemed were stable period-over-period. The
  increased burn earn rate, which is typically higher in the first
  quarter, is explained by a 1.5 per cent decrease in Aeroplan Miles issued in the quarter. 
• Aeroplan is seeing good momentum in commercial partner signings, most
  recently with Birks, Miele, The UPS Store and Teleflora, the world’s
  leading flower delivery service.
• In the first quarter of 2013, proprietary loyalty in Canada won new
  clients in travel and retail and successfully renewed its largest
  financial service client for a multi-year period.

Europe, Middle East & Africa (EMEA) – An exceptional quarter

• First quarter Gross Billings were $173.7 million, representing an increase of 20.8 per cent or 21.0 per cent on a constant currency basis compared to the same period of 2012.  This
  increase was mainly due to an increase in Gross Billings from the sale
  of Loyalty Units in the Nectar UK Program, driven by the grocery sector
  and new sponsor billings and from the benefit of the new contract terms
  initiated with the program’s main sponsor in the second quarter of
  2012. Additionally, Gross Billings from the sale of Loyalty Units in
  the Air Miles Middle East program increased by $16.8 million due to new contract terms, including funding provided by the program’s
  main sponsor to support enhanced member engagement.
• Adjusted EBITDA of $17.4 million in the quarter grew by $13.4 million in comparison to the first quarter of 2012 with increased volumes driving improvements in operating leverage and sponsor
  funding related to supporting enhanced engagement.
• Nectar UK Points issued in the first quarter of 2013 increased by 19.5 per cent compared to the same period in the prior year, with higher issuance in
  the grocery sector, as well as growth from new sponsors.
• Redemption activity for Nectar UK increased by 15.4 per cent in the quarter mainly driven by an increase in the number of Nectar
  Points in circulation.
• A more difficult economic environment in Italy saw points issuance
  decrease by 13.4 per cent in the first quarter of 2013 compared to the first quarter of 2012 due
  to a decrease in promotional activity. Nectar Italia points redeemed
  decreased by 5.5 per cent in comparison to the same period of 2012.
• Air Miles Middle East Loyalty Units issued during the three months ended
  March 31, 2013 increased by 32.3 per cent in comparison to the same period in the prior year, mostly due to
  program growth due to new contract terms with the program’s main
  sponsor.  Redemption activity in the Air Miles Middle East program
  increased significantly due to promotional activity to enhance member
  engagement as part of the new contract terms.
• Other Gross Billings amounted to $17.0 million, a decrease of $2.6 million or 13.3 per cent compared to 2012.  The decrease is primarily explained by the fact
  that, effective the first quarter of 2013, a large portion of the ISS
  UK Gross Billings is now reported within the i2c joint venture.  The
  decrease was partially offset by growth in Gross Billings from ISS’
  international activities.
• On March 19, 2013, Aimia announced that it will take full control of the
  Nectar Italia coalition loyalty program, acquiring the remaining 25 per
  cent stake currently held by Banque Accord S.A. The purchase price consideration of approximately €7 million ($9
  million) will be paid on completion, which is expected by the end of
  June. An additional contingent consideration, for an amount to be
  determined, may be paid within the next two years, based on the
  performance of the program.  Over the three years since its launch in March 2010, Nectar Italia has
  signed up more than 10 million members and has 14 sponsor partners
  today.
• On March 13, 2013, Nectar UK was notified of the UK Supreme Court ruling
  on its outstanding Value Added Tax (VAT) litigation. While the ruling
  was in our favour, the Supreme Court asked for further written
  submissions from both Aimia EMEA Limited and Her Majesty’s Revenue &
  Customs to fully determine the case. Management expects the UK Supreme
  Court to make its final judgment during the second quarter of 2013.

US & Asia Pacific – Tracking for growth with addition of Excellence in
Motivation (EIM)

• First quarter Gross Billings of $80.6 million were flat compared to the same period in 2012 both on a reported and a
  constant currency basis.  Gross Billings for the region included $10.2 million from EIM, which was
  acquired in September 2012, offset by a decrease of $7.2 million related to the exit of the Qantas business.  This represents the last
  comparative quarter of the Qantas exit.
• First quarter Adjusted EBITDA amounted to ($3.7) million compared to $1.8 million in the same period of 2012. This includes $1.0 million in deferred
  compensation and integration costs related to EIM, start-up costs
  related to a contract in Asia and business development costs in the
  U.S.

Premier Loyalty & Marketing, S.A.P.I. de C.V. (PLM)

• PLM, the owner of Club Premier, reported Gross Billings of $36.3 million for the three months ended March 31, 2013 compared to $33.7 million for the three months ended March 31, 2012, an increase of 7.7 per cent.
• Club Premier continues to build out the coalition program with the
  addition of retail and international hotel brand partners during the
  quarter.

Cash Flow and Financial Position
At March 31, 2013, Aimia had $476.9 million of cash and cash equivalents, $29.5 million of restricted cash, $15.4 million of short-term investments and $312.6 million of long-term investments in bonds, for a total of $834.4 million.

Aimia’s Free Cash Flow (before dividends paid) was ($9.5) million for the first quarter of 2013 compared to $18.3 million for the first quarter of 2012. This was primarily due to a decrease in
cash from operating activities, explained by higher cost of rewards and
direct costs and operating expenses, offset in part by an increase in
Gross Billings of $24.5 million, lower income taxes paid and lower capital expenditures.  The
unfavourable variance is also explained by changes to operating assets
and liabilities driven by the timing of accounts receivable collection
and accounts payable payments and inventory levels returning to
normalized levels in Canada.

Normal Course Issuer Bid (NCIB)
Aimia received approval today from the Toronto Stock Exchange respecting
the renewal of its NCIB to purchase up to 17,212,126 of its issued and
outstanding common shares during the period from May 16, 2013 to May
15, 2014.   As at May 13, 2013 there were 172,466,957 common shares
issued and outstanding.

Dividends
On May 13, 2013, the Board of Directors approved a 6.25 per cent
increase to the dividends payable on the Corporation’s common shares to
$0.68 per common share per year, or $0.17 per common share per quarter.

Common Share Dividend Declared
The Board of Directors declared a quarterly dividend of $0.17 per common
share, payable on June 28, 2013 to shareholders of record at the close
of business on June 14, 2013.

Preferred Share Dividend Declared
The Board also declared a quarterly dividend in the amount of $0.40625
per Cumulative Rate Reset Preferred Share, Series 1, payable on June
28, 2013 to the holders of record at the close of business on June 14,
2013.

Dividends paid by Aimia to Canadian residents on both its common and
preferred shares are “eligible dividends” for Canadian income tax
purposes.

2013 Outlook

Aimia has no revisions to the 2013 annual guidance provided in its
February 27, 2013 earnings press release.

For the year ending December 31, 2013, Aimia currently expects to report
the following:

Consolidated Outlook
	2012 Actual	2013 Target Range
Gross Billings	$2,243.0 million	Growth of between 3% and 5%
Adjusted EBITDA	$402.6 million	To approximate $425 million
Free Cash Flow before dividends	$299.5 million	Between $255 and $275 million
Capital Expenditures	$58.0 million	To approximate $70 million
Income Taxes	Canadian income tax rate of 26.2%	Current income tax rate is anticipated to approximate 27% in Canada. The Corporation expects no significant cash income taxes will be incurred in the rest of its foreign operations.
Business Segment Gross Billings Growth Outlook
	2012 Actual	2013 Target Range
Canada	$1,292.6 million	Between 1% and 3%
EMEA	$639.9 million	Between 5% and 7%
US & APAC	$315.2 million	Above 5%

The above guidance excludes the effects of fluctuations in currency
exchange rates. In addition, Aimia made a number of economic and market
assumptions in preparing its 2013 forecasts, including assumptions
regarding the performance of the economies in which the Corporation
operates and market competition and tax laws applicable to the
Corporation’s operations. The Corporation cautions that the assumptions
used to prepare the forecasts for 2013, although reasonable at the time
they were made, may prove to be incorrect or inaccurate. In addition,
the above forecasts do not reflect the potential impact of any
non-recurring or other special items or of any new material commercial
agreements, dispositions, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may
occur after May 13, 2013. The financial impact of these transactions
and non-recurring and other special items can be complex and depends on
the facts particular to each of them. We therefore cannot describe the
expected impact in a meaningful way or in the same way we present known
risks affecting our business. Accordingly, our actual results could
differ materially from our expectations as set forth in this news
release. The outlook provided constitutes forward-looking statements
within the meaning of applicable securities laws and should be read in
conjunction with the “Caution Concerning Forward-Looking Statements”
section.

Use of Non-GAAP Financial Information
In order to provide a better understanding of the results, the following
indicators are used:

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization
EBITDA adjusted for certain factors particular to the business, such as
changes in deferred revenue and Future Redemption Costs (“Adjusted
EBITDA”), is used by management to evaluate performance, and to measure
compliance with debt covenants. Management believes Adjusted EBITDA
assists investors in comparing the Corporation’s performance on a
consistent basis without regard to depreciation and amortization and
impairment charges, which are non-cash in nature and can vary
significantly depending on accounting methods and non-operating factors
such as historical cost. Adjusted EBITDA also includes distributions
and dividends received from equity-accounted investments.

Adjusted EBITDA is not a measurement based on GAAP, is not considered an
alternative to operating income or net income in measuring performance,
and is not comparable to similar measures used by other issuers. For a
reconciliation to GAAP, please refer to the Summary of Consolidated
Operating Results and Reconciliation of EBITDA, Adjusted EBITDA,
Adjusted Net Earnings and Free Cash Flow included in the attached schedule. 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.

Adjusted Net Earnings
Adjusted Net Earnings provides a measurement of profitability calculated
on a basis consistent with Adjusted EBITDA. Net earnings attributable
to equity holders of the Corporation are adjusted to exclude
Amortization of Accumulation Partners’ contracts, customer
relationships and technology, share of net earnings (loss) of equity
accounted investments and impairment charges. Adjusted Net Earnings
includes the Change in deferred revenue and Change in Future Redemption
Costs, net of the income tax effect and non controlling interest effect
(where applicable) on these items at an entity level basis. Adjusted
Net Earnings also includes distributions and dividends received from
equity-accounted investments.

Adjusted Net Earnings is not a measurement based on GAAP, is not
considered an alternative to net earnings in measuring profitability,
and is not comparable to similar measures used by other issuers. For a
reconciliation to GAAP, please refer to the Summary of Consolidated
Operating Results and Reconciliation of EBITDA, Adjusted EBITDA,
Adjusted Net Earnings and Free Cash Flow included in the attached
schedule.

Standardized Free Cash Flow (“Free Cash Flow”)
Free Cash Flow is a non-GAAP measure recommended by the CICA in order to
provide a consistent and comparable measurement of free cash flow
across entities of cash generated from operations and is used as an
indicator of financial strength and performance.

Free Cash Flow is defined as cash flows from operating activities, as
reported in accordance with GAAP, less adjustments for:

	(a)	total capital expenditures as reported in accordance with GAAP; and
	(b)	dividends, when stipulated, unless deducted in arriving at cash flows from operating activities.

For a reconciliation to cash flows from operations please refer to the
Summary of Consolidated Operating Results and Reconciliation of EBITDA,
Adjusted EBITDA, Adjusted Net Earnings and Free Cash Flow included in
the attached schedule.

EBITDA and Free Cash Flow are non-GAAP measurements recommended by the
CICA in accordance with the recommendations provided in their October
2008 publication, Improved Communications with Non-GAAP Financial Measures – General
Principles and Guidance for Reporting EBITDA and Free Cash Flow.

Constant Currency
Because exchange rates are an important factor in understanding period
to period comparisons, the presentation of various financial metrics on
a constant currency basis or after giving effect to foreign exchange
translation, in addition to the reported metrics, helps improve the
ability to understand operating results and evaluate performance in
comparison to prior periods. Constant currency information compares
results between periods as if exchange rates had remained constant over
the periods. Constant currency is derived by calculating current-year
results using prior-year foreign currency exchange rates. Results
calculated on a constant currency basis should be considered in
addition to, not as a substitute for, results reported in accordance
with GAAP and may not be comparable to similarly titled measures used
by other companies.

Q1 2013 Conference Call / Audio Webcast
Aimia will host a conference call to discuss its first quarter 2013
financial results at 8:00 a.m. ET on Tuesday, May 14, 2013. The call
can be accessed by dialing 1-888-231-8191 or 647-427-7450 for the
Toronto area. The call will be simultaneously audio webcast at: http://www.newswire.ca/en/webcast/detail/1059049/1151287

A slide presentation intended for simultaneous viewing with the
conference call will be available the evening of Monday, May 13, 2013
at: https://www.aimia.com/English/Investors/Financial-Reports/Quarterly-Reports/default.aspx and an archived audio webcast will be available at: https://www.aimia.com/English/Investors/Presentations-and-Events/Events/default.aspx for ninety days following the original broadcast.

The consolidated financial statements, the MD&A and a financial
highlights presentation will be accessible on the investor relations
website at: https://www.aimia.com/English/Investors/Financial-Reports/Quarterly-Reports/default.aspx.

CSR Report

Our social purpose aims to bring people together, inspiring innovative
ideas that create economic, environmental and social value for our
stakeholders.  To view Aimia’s Corporate Social Responsibility Annual
Report for 2012, please go to: https://www.aimia.com/English/Social-Purpose/CSR-Reports/default.aspx.

About Aimia

Aimia Inc. (“Aimia”) is a global leader in loyalty management. Employing
more than 4,000 people in over 20 countries worldwide, Aimia offers
clients, partners and members proven expertise in launching and
managing coalition loyalty programs, delivering proprietary loyalty
services, creating value through loyalty analytics and driving
innovation in the emerging digital, mobile and social communications
spaces.

Aimia owns and operates Aeroplan, Canada’s premier coalition loyalty
program and Nectar, the United Kingdom’s largest coalition loyalty
program. In addition, Aimia owns stakes in Air Miles Middle East,
Nectar Italia, Mexico’s leading coalition loyalty program Club Premier,
Brazil’s Prismah Fidelidade, and i2c, a joint venture with Sainsbury’s
offering insight and data analytics services in the UK to retailers and
suppliers. Aimia also holds a minority position in Cardlytics, a
US-based private company operating in transaction-driven marketing for
electronic banking. Aimia is listed on the Toronto Stock Exchange (TSX:
AIM). For more information, visit us at www.aimia.com

Caution Concerning Forward-Looking Statements

Forward-looking statements are included in this news release. These
forward-looking statements are identified by the use of terms and
phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.

Forward-looking statements, by their nature, are based on assumptions
and are subject to important risks and uncertainties. Any forecasts,
predictions or forward-looking statements cannot be relied upon due to,
among other things, changing external events and general uncertainties
of the business and its corporate structure. Results indicated in
forward-looking statements may differ materially from actual results
for a number of reasons, including without limitation, dependency on
top accumulation partners and clients, conflicts of interest, greater
than expected redemptions for rewards, regulatory matters, retail
market/economic conditions, industry competition, Air Canada liquidity
issues, Air Canada or travel industry disruptions, airline industry
changes and increased airline costs, supply and capacity costs,
unfunded future redemption costs, failure to safeguard databases and
consumer privacy, changes to coalition loyalty programs, seasonal
nature of the business, other factors and prior performance, foreign
operations, legal proceedings, reliance on key personnel, labour
relations, pension liability, technological disruptions and inability
to use third party software, failure to protect intellectual property
rights, interest rate and currency fluctuations, leverage and
restrictive covenants in current and future indebtedness, uncertainty
of dividend payments, managing growth, credit ratings, as well as the
other factors identified in this news release and throughout Aimia’s
public disclosure record on file with the Canadian securities
regulatory authorities.

The forward-looking statements contained herein represent Aimia’s
expectations as of May 13, 2013, and are subject to change after such
date. However, Aimia disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under
applicable securities regulations.

SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA,
ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW

			Three Months Ended March 31,				%∆
(in thousands of Canadian dollars , except share and per share information)			2013		2012 (f)		Q1
Gross Billings			561,115		536,636		4.6
Gross Billings from the sale of Loyalty Units			413,349		385,984		7.1
Total revenue			609,503		567,725		7.4
Cost of rewards and direct costs			(353,408)		(322,396)		9.6
Gross margin before depreciation and amortization (a)			256,095		245,329		4.4
Depreciation and amortization			(10,320)		(8,462)		22.0
Amortization of Accumulation Partners’ contracts, customer relationships and technology			(20,307)		(20,795)		(2.3)
Gross margin			225,468		216,072		4.3
Operating expenses			(153,313)		(140,816)		8.9
Amortization of Accumulation Partners’ contracts, customer relationships and technology			20,307		20,795		(2.3)
Operating income before amortization of Accumulation Partners’ contracts, customer relationships and technology			92,462		96,051		(3.7)
Depreciation and amortization			10,320		8,462		22.0
EBITDA (a)(c)			102,782		104,513		(1.7)
Adjustments:
Change in deferred revenue
		Gross Billings	561,115		536,636
		Revenue	(609,503)		(567,725)
	Change in Future Redemption Costs (b)		28,421		15,553
		(Change in Net Loyalty Units outstanding x Average Cost of Rewards per Loyalty Unit for the period)
Subtotal of Adjustments			(19,967)		(15,536)
Adjusted EBITDA (c)			82,815		88,977		(6.9)
Net earnings attributable to equity holders of the Corporation			40,527		45,378
Weighted average number of shares			172,283,597		173,820,140
Earnings per common share (d)			0.22		0.24
Net earnings attributable to equity holders of the Corporation			40,527		45,378
Amortization of Accumulation Partners’ contracts, customer relationships and technology			20,307		20,795
Share of net (earnings) loss of equity-accounted investments			1,722		(1,155)
Adjusted EBITDA Adjustments (from above)			(19,967)		(15,536)
Tax on adjustments (e)			6,936		6,633
Non-controlling interests share on adjustments above			110		(223)
Adjusted Net Earnings(c)			49,635		55,892		(11.2)
Adjusted Net Earnings per common share (c)(d)			0.27		0.31
Cash flow from operations			(452)		30,970
Capital expenditures			(9,085)		(12,656)
Dividends			(30,392)		(28,905)
Free Cash Flow (c)			(39,929)		(10,591)		(277.0)
Total assets			5,162,271		4,839,171
Total long-term liabilities			1,695,017		1,320,157
Total dividends per preferred share			0.406		0.406
Total dividends per common share			0.160		0.150

(a)		Excludes depreciation and amortization as well as amortization of Accumulation Partners’ contracts, customer relationships and technology.
(b)		The per unit cost derived from this calculation is retroactively applied to all prior periods with the effect of revaluing the Future Redemption Cost liability on the basis of the latest available average unit cost.
(c)		A non-GAAP measurement.
(d)		After deducting dividends declared on preferred shares.
(e)		The effective tax rates, calculated as income tax expense / earnings before taxes for the period on an entity level basis, are applied to the related entity level adjustments noted above.
(f)		2012 financial information was restated to reflect the retroactive application of the amendments to IAS 19. Refer to Note 2 of Aimia’s Consolidated Financial Statements for the period ended March 31, 2013 for additional information.

SEGMENTED INFORMATION

At March 31, 2013, the Corporation had three reportable and operating
segments: Canada, EMEA and US & APAC. The table below summarizes the
relevant financial information by operating segment:

		Three Months Ended March 31,
(in thousands of Canadian dollars)		2013		2012(g)		2013		2012		2013		2012		2013		2012		2013		2012		2013		2012(g)
Operating Segments		Canada				EMEA				US & APAC				Corporate(b)				Eliminations				Consolidated
Gross Billings		307,117		313,237		173,746	(c)	143,869	(c)	80,558	(c)	80,914	(c)	—		—		(306)		(1,384)		561,115	(c)	536,636	(c)
Gross Billings from the sale of Loyalty Units		256,604		261,732		156,745		124,252		—		—		—		—		—		—		413,349		385,984
Revenue from Loyalty Units		320,814		320,483		140,290		97,732		—		—		—		—		—		—		461,104		418,215
Revenue from proprietary loyalty services		38,820		40,291		3,719		4,155		80,528		78,011		—		—		—		—		123,067		122,457
Other revenue		12,017		11,954		13,315		15,099		—		—		—		—		—		—		25,332		27,053
Intercompany revenue		—		9		69		80		237		1,295		—		—		(306)		(1,384)		—		—
Total revenue		371,651		372,737		157,393		117,066		80,765		79,306		—		—		(306)		(1,384)		609,503		567,725
Cost of rewards and direct costs		202,780		194,437		106,413		84,091		44,215		43,957		—		—		—		(89)		353,408		322,396
Gross margin before depreciation and amortization		168,871		178,300		50,980		32,975		36,550		35,349		—		—		(306)		(1,295)		256,095		245,329
Depreciation and amortization (a)		23,817		23,234		4,038		3,906		2,772		2,117		—		—		—		—		30,627		29,257
Gross margin		145,054		155,066		46,942		29,069		33,778		33,232		—		—		(306)		(1,295)		225,468		216,072
Operating expenses before the undernoted		54,379		57,102		39,227		35,484		39,994		35,129		16,154		11,408		(306)		(1,295)		149,448		137,828
	Share-based compensation	—		—		—		—		—		—		3,865		2,988		—		—		3,865		2,988
Total operating expenses		54,379		57,102		39,227		35,484		39,994		35,129		20,019		14,396		(306)		(1,295)		153,313		140,816
Operating income (loss)		90,675		97,964		7,715		(6,415)		(6,216)		(1,897)		(20,019)		(14,396)		—		—		72,155		75,256
Adjusted EBITDA (f)		89,070		97,526		17,415		4,019		(3,651)		1,828		(20,019)		(14,396)		—		—		82,815		88,977
Additions to non-current assets (d)		5,311		8,805		3,370		2,494		404		1,357		—		2,273		N/A		N/A		9,085		14,929
Non-current assets (d)		3,170,935		3,239,959		451,357	(e)	460,939	(e)	77,014	(e)	42,341	(e)	2,199		2,152		N/A		N/A		3,701,505	(e)	3,745,391	(e)

(a)		Includes depreciation and amortization as well as amortization of Accumulation Partners’ contracts, customer relationships and technology.
(b)		Includes expenses that are not directly attributable to any specific operating segment. Corporate also includes the financial position and operating results of our operations in India, the investments in PLM, Prismah and Cardlytics.
(c)		Includes third party Gross Billings of $133.4 million in the UK and $54.3 million in the US for the three months ended March 31, 2013, compared to third party Gross Billings of $119.1 million in the UK and $46.1 million in the US for the three months ended March 31, 2012. Third party Gross Billings are attributed to a country on the basis of the country where the contractual and management responsibility for the customer resides.
(d)		Non-current assets includes amounts relating to goodwill, intangible assets and property and equipment.
(e)		Includes non-current assets of $402.2 million in the UK and $70.7 million in the US as of March 31, 2013, compared to non-current assets of $409.6 million in the UK and $35.9 million in the US as of March 31, 2012.
(f)		A non-GAAP measurement.
(g)		2012 financial information was restated to reflect the retroactive application of the amendments to IAS 19. Refer to Note 2 of Aimia’s Consolidated Financial Statements for the period ended March 31, 2013 for additional information.

 

 

 

SOURCE: AIMIA

 

Contact:

Media
Krista Pawley
416- 352 3794
krista.pawley@aimia.com 

Analysts & Investors
Karen Keyes
514-205-7163
karen.keyes@aimia.com

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