Aimia Reports First Quarter Results


FIRST QUARTER HIGHLIGHTS⁽¹⁾⁽⁵⁾	Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars, except per share amounts)	2014	2013	% Change	Constant Currency

Gross Billings⁽²⁾	717.2	561.1	27.8%	22.6%
Total Revenue	608.9	609.5	-0.1%	-4.2%
Net Earnings (Loss)	(16.3)	45.7	**	**
Earnings (Loss) per Common Share	(0.13)	0.22	**	**
Adjusted EBITDA⁽²⁾	132.6	82.8	60.1%	**
Adjusted Net Earnings per Common Share⁽³⁾	0.48	0.27	77.8%	**
Free Cash Flow before Dividends Paid⁽²⁾⁽⁴⁾	60.5	(9.5)	**	**

** Information not meaningful
Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

MONTREAL, May 13, 2014 /CNW Telbec/ – (TSX:AIM) Aimia today reported its
financial results for the quarter ended March 31, 2014. All financial
information is in Canadian dollars unless otherwise noted.

Highlights:

A strong quarter for Gross Billings, Adjusted EBITDA and Free Cash Flow,
boosted by the $100 million TD contribution related to Aeroplan program
changes
Aeroplan transformation exceeding expectations, with TD enrolling around
275,000 new cardholders, representing a 50% increase over the credit
card portfolio conveyed from CIBC in only a few months
New investment announced in April in Spain’s Travel Club extends Aimia’s
coalition presence
Dividend reviewed in line with annual policy, with quarterly dividend to
common shareholders increased by 5.9% to $0.18 per common share
Free Cash Flow guidance for 2014 raised on back of a strong first
quarter at Aeroplan

Rupert Duchesne, Group Chief Executive said:

“Our partnership with TD has resulted in a successful launch and we are
seeing strong momentum in both our TD and AMEX relationships thanks to
the refresh of the Aeroplan program.

“Aeroplan members’ activity levels suggest that the changes we made to
the program were the right ones and are delivering value to them, with
rewards issued up 9% in the quarter.”

Consolidated Financial Highlights (Period ended March 31, 2014 versus
period ended March 31, 2013, except where otherwise stated)


Consolidated Highlights⁽¹⁾⁽⁵⁾		Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars)		2014	2013	% Change	Constant Currency
Gross Billings⁽²⁾		717.2	561.1	27.8%	22.6%
	Of which: Gross Billings from Sale of Loyalty Units⁽²⁾	548.7	413.3	32.7%	27.4%
	Of which: Proprietary Loyalty and Other	168.5	147.8	14.1%	9.1%
Adjusted EBITDA⁽²⁾		132.6	82.8	60.1%	**
	Of which: Distributions from equity-accounted investments	–	–	**	**
Free Cash Flow before Dividends Paid⁽²⁾⁽⁴⁾		60.5	(9.5)	**	**
	Of which: Cash flow from Operations	82.1	(0.5)	**	**
	Of which: Capital Expenditures	(21.6)	(9.0)	**	**

** Information not meaningful

Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

Gross Billings were up 27.8% on a reported basis, with the $100 million
benefit from the TD contribution in the first quarter, a strong
performance from the Canadian region and a favourable foreign exchange
impact.
On a constant currency basis, Gross Billings were up 22.6%, with Gross
Billings from the Sale of Loyalty Units up 27.4% and strong growth in
Proprietary Loyalty and Other, up 9.1%.
Adjusted EBITDA was up 60.1% to $132.6 million, with the $100 million
contribution received from TD offset by higher cost of rewards.
Free Cash Flow before Dividends Paid was $60.5 million, with higher
capital expenditures more than offset by higher Cash flow from
Operations which included the benefit of the $100 million TD
contribution and a $22.5 million harmonized sales tax credit received
in the first quarter.

2014 Guidance*

For the year ending December 31, 2014, Aimia currently expects to report
the following:


	2013	Original Guidance (as provided on Feb 26, 2014)	2014 Target Range (as updated on May 13, 2014)
Gross Billings	$2,366.4 million	Between 7% and 9% growth (constant currency)⁽²⁾	No Change
Adjusted EBITDA⁽¹⁾	$350.5 million⁽⁶⁾	Adjusted EBITDA margin of approximately 12%⁽²⁾	No Change
Free Cash Flow before Dividends Paid⁽¹⁾	$268.1 million⁽⁷⁾	Target range of $230 to $250 million⁽²⁾⁽⁸⁾	Target range of $250 to $270 million⁽²⁾⁽⁸⁾
Capital Expenditures	$54.4 million	To approximate $60 to $70 million	No Change

Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

*Please refer to “Statement on Guidance Assumptions” at the end of this
release for details on assumptions made in preparing the 2014 guidance.

Regional Financial Highlights


Regional Highlights⁽¹⁾⁽⁵⁾		Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars)		2014	2013	% Change	Constant Currency
Consolidated Gross Billings⁽²⁾⁽⁹⁾		717.2	561.1	27.8%	22.6%
	Of which: Canada⁽²⁾	432.8	307.1	40.9%	40.9%
	Of which: EMEA	187.0	173.7	7.6%	-6.8%
	Of which: US & APAC	97.7	80.6	21.3%	15.9%

Consolidated Revenue⁽⁹⁾		608.9	609.5	-0.1%	-4.2%
	Of which: Canada	355.2	371.7	-4.4%	-4.4%
	Of which: EMEA	158.7	157.4	0.8%	-12.3%
	Of which: US & APAC	95.2	80.8	17.9%	12.8%

(in millions of Canadian dollars)		2014	2013	2014 Margin	2013 Margin
Consolidated Adjusted EBITDA⁽²⁾		132.6	82.8	18.5%	14.8%
	Of which: Canada⁽²⁾	141.0	89.1	32.6%	29.0%
	Of which: EMEA	14.7	17.4	7.9%	10.0%
	Of which: US & APAC	(1.7)	(3.7)	-1.7%	-4.5%
	Of which: Corporate	(21.4)	(20.0)	**	**

** Information not meaningful

Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

Canada – Strong Aeroplan Gross Billings growth on the back of new
financial cards agreements and TD contribution

Gross Billings were up 40.9% over last year, with the benefit of the TD
contribution and an 8.4% underlying increase in Gross Billings. This is
a significant change in Canadian Gross Billings growth rates compared
to a 2% decrease in the first quarter of last year.
The main driver was the significant increase in Gross Billings from
Loyalty Units, as a result of the implementation of the Aeroplan
transformation and the financial cards agreements signed with TD, CIBC
and AMEX in 2013.
Adjusted EBITDA was up $51.9 million over last year to $141.0 million,
with the benefit of the TD contribution. Excluding the TD contribution,
the $48.1 million decrease was due to higher redemption costs,
including a $16.1 million increase in Future Redemption Costs on
promotional miles issued with the activation of new financial cards,
and the impact of reduced Breakage. Marketing costs were also higher
in the quarter.
Revenue of $355.2 million was below last year, with the impact of
increased redemption volumes being more than offset by the $25.1
million impact resulting from the change in the Breakage rate.

Europe, Middle East & Africa (EMEA) – Favourable currency impact
offsetting tough comps

Gross Billings were up 7.6% to $187.0 million, with our UK-denominated
billings benefiting from the strength of the pound sterling.
The Gross Billings decrease of $9.9 million in the Middle East, mainly
attributable to last year’s sponsor funding to support enhanced member
engagement, and the timing of the Easter holiday were the main drivers
of the decline relative to the comparative period. An increase in Gross
Billings from analytics and insights and proprietary loyalty clients
partially offset this decline.
Adjusted EBITDA was down $2.7 million to $14.7 million. The decrease was
due to the promotional funding to support increased member engagement
in the Middle East in the first quarter of last year offset by the
favourable currency impact.
Revenue also benefited from a favourable currency impact and was up 0.8%
on a reported basis. Underlying performance was driven by lower
redemption volumes in our coalition programs against a strong quarter
in the Middle East and Italy last year, only partially offset by
analytics and insights and proprietary loyalty revenue growth.

US & Asia Pacific – Gross Billings growth driven by timing of new
business in the APAC region

Gross Billings were up 21.3% to $97.7 million and up 15.9% on a constant
currency basis, with strong growth resulting from net new business in
APAC, which offset lower rewards fulfillment volumes in the US.
Adjusted EBITDA improved by $2.0 million, mainly attributable to the
timing of Gross Billings, which offset a lower gross margin and
increased operating expenses.
Revenue was up 17.9% to $95.2 million and up 12.8% on a constant
currency basis, driven by net new business in APAC offset by lower
rewards fulfillment volumes in the US.

Corporate

Corporate costs were up 6.9% to $21.4 million from $20.0 million, with
the increase mainly attributable to higher costs to support growth in
the global businesses, offset in part by lower share-based compensation
expense of $2.2 milllion.

Operational Highlights


Operational Highlights⁽¹⁾⁽⁵⁾		Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars)		2014	2013	% Change

Consolidated Gross Billings from the sale of Loyalty Units (76% of total Gross Billings)⁽²⁾		548.7	413.3	32.7%
Of which: Canada (70% of Loyalty Units)⁽²⁾		384.5	256.6	49.9%
Of which: EMEA (30% of Loyalty Units)		164.1	156.7	4.7%

Consolidated Revenue from Loyalty Units		441.7	461.1	-4.2%
	Aeroplan Miles Revenue	272.6	263.5	3.5%
	Aeroplan Breakage Revenue	33.3	57.3	-41.9%
Of which: Canada		305.9	320.8	-4.6%
Of which: EMEA		135.8	140.3	-3.2%

Consolidated Change in Deferred Revenues⁽²⁾		108.3	(48.4)	**
Of which: Canada⁽²⁾		77.6	(64.5)	**
Of which: EMEA		28.2	16.4	72.7%

** Information not meaningful
Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

Canadian Gross Billings and Revenue from the sale of Loyalty Units

Canadian Gross Billings from Loyalty Units represented 54% of total
Consolidated Gross Billings and 70% of Consolidated Gross Billings from
Loyalty Units in the quarter.

The 49.9% increase in the quarter included the $100 million TD
contribution. Underlying Gross Billings were up 10.9%, with financial
services being the principal contributor to the strong growth. The
promotional mileage awarded on new financial cards activation also
drove the 15.4% increase in Aeroplan Miles issued in the quarter.

Gross Billings from our financial cards partners were up 15.5%, mainly
resulting from:

A higher number of financial cards in the market driven by higher card
activations in the first three months of 2014, with a 12% lift in
co-branded credit cards to 1.4 million and net new cards acquired
taking the AMEX base up over 30%;
Higher Membership Rewards conversions into Aeroplan Miles from AMEX; and
An increased price per mile under our renewed financial card agreements
on miles issued (outside of promotional issuance related to new cards
acquired).

In our other sectors, higher promotional activity in the non-air travel
sector was offset by flat Gross Billings in air. Pricing for these
sectors remained unchanged.

Canadian revenue from Loyalty Units was down 4.6%, with the impact of
lower Breakage revenue resulting from the change in Breakage rate in
the second quarter of 2013 more than offsetting the increase in
redemption volumes. Miles redeemed were up 2.9%, driven mainly by an
increase in air redemptions due to enhanced travel reward offerings
under the Distinction program launched in January 2014. Rewards issued
in the quarter were up 8.6%, with air rewards up 13.3% over the same
period last year.

EMEA Gross Billings and Revenue from the sale of Loyalty Units

EMEA Gross Billings from Loyalty Units represented the remaining 30% of
Gross Billings from Loyalty Units on a consolidated basis and 23% of
total Consolidated Gross Billings. Nectar UK accounted for 82% of EMEA
Gross Billings from Loyalty Units in the quarter.

EMEA Gross Billings from Loyalty Units were up 4.7% on a reported basis,
including a favourable benefit from currency. Excluding the impact of
currency, Gross Billings decreased by $14.8 million, of which $9.9
million was attributable to partner promotional funding in the Middle
East last year. Nectar Italia is also down due to a decrease in
promotional activity and difficult economic conditions.

Middle East points accumulation was down 7.2%, while Nectar Italia
accumulation was down 16.6%. Nectar UK was impacted by the timing of
the Easter holiday and a more challenging grocery sector, which saw
points issued decrease by 1.6%.

Revenue from Loyalty Units was down $4.5 million to $135.8 million.
Nectar UK redemptions rose by 5.3% but this was offset by lower Middle
East and Nectar Italia redemptions, with redemptions down 61.4% and
17.4% respectively, due to the first year of expiry in the Middle East
last year and lower promotional activity in Italy.

Cost of Rewards and Direct Costs


Cost of Rewards and Direct Costs⁽⁵⁾		Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars)		2014	2013	% Change	Constant Currency

Consolidated cost of rewards and direct costs		404.5	353.4	14.5%	9.9%
	Of which: Canada	241.6	202.8	19.1%	19.1%
	Of which: EMEA	108.8	106.4	2.2%	-11.2%
	Of which: US & APAC	54.2	44.2	22.5%	18.2%

Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

Cost of rewards and direct costs represented 66.4% of revenue in the
quarter, resulting in a gross margin before depreciation and
amortization of 33.6%, compared to 42.0% last year.

Cost of rewards and direct costs were up 14.5% to $404.5 million.
Canada contributed $38.8 million of the increase, up 19.1%. The
elevated cost of rewards in Canada resulted from an increase in
redemption volumes and higher redemption cost per Mile due to the
redemption mix in the first quarter under the newly launched
Distinction program.

In EMEA, the lower volume of redemptions in the Air Miles Middle East
and Nectar Italia programs was offset by an unfavourable currency
impact increasing cost of rewards and direct costs by 2.2% on a
reported basis.

Net new business in APAC more than offset the lower fulfillment volumes
from our US business, resulting in a 22.5% increase in the US & APAC
region.

Free Cash Flow


Free Cash Flow⁽¹⁾⁽⁵⁾	Three Months Ended March 31,		Year over Year
(in millions of Canadian dollars)	2014	2013	% Change

Cash Flow from Operations⁽²⁾⁽⁴⁾	82.1	(0.5)	**
Capex	(21.6)	(9.0)	140.0%
Free Cash Flow before Dividends Paid⁽²⁾⁽⁴⁾	60.5	(9.5)	**
Free Cash Flow before Dividends Paid per share^(2)(4)(10)	0.32	(0.07)	**
Dividends Paid (Common and Preferred)	(34.2)	(30.4)	12.5%
Free Cash Flow⁽²⁾⁽⁴⁾	26.3	(39.9)	**

** Information not meaningful
Please refer to “Notes to Financial Tables” at the end of this release
for details on notations (1) through (10)

Free Cash Flow before Dividends Paid was $60.5 million, or $0.32 per
share, up significantly on last year.

The increase was largely attributable to an increase in Cash Flow from
Operations, resulting from higher Gross Billings in the quarter
compared to the prior year, including the TD contribution received in
early January and a $22.5 million input tax credit on harmonized sales
tax received in the first quarter, offset by higher redemption costs
and operating expenses.

Higher capital expenditures were mainly related to information
technology investments and real estate expenditures, including the
relocation of our headquarters to the new Tour Aimia in Montreal at the
end of April.

Dividends paid in the quarter were $34.2 million, of which $29.5 million
were related to quarterly dividends paid to common shareholders.

Dividend and Share Information


	Amount of Dividend
Date of Dividend Declaration		Per Common Share	Per Series 1 Preferred Share	Per Series 3 Preferred Share
13-May-2013		$0.170	$0.40625	–
12-Aug-2013		$0.170	$0.40625	–
13-Nov-2013		$0.170	$0.40625	–
26-Feb-2014		$0.170	$0.40625	$0.321100
13-May-2014		$0.180	$0.40625	$0.390625

Common Shares
The Board of Directors have declared a quarterly dividend of $0.18 per
common share, payable on June 30, 2014 to shareholders of record at the
close of business on June 16, 2014, representing a 5.9% increase.

At March 31, 2014, the number of Common shares outstanding was
173,357,418. The weighted average number of basic and diluted common
shares for the three months ended March 31, 2014, was 173,062,413.

Preferred Shares
The Board also declared a quarterly dividend in the amount of $0.40625
per Cumulative Rate Reset Preferred Share, Series 1 and a quarterly
dividend in the amount of $0.390625 per Cumulative Rate Reset Preferred
Share, Series 3, in each case payable on June 30, 2014 to the holders
of record at the close of business on June 16, 2014.

At March 31, 2014, the number of Series 1 Cumulative Rate Reset
Preferred Shares outstanding was 6,900,000 and the number of Series 3
Cumulative Rate Reset Preferred Shares outstanding was 6,000,000.

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

Investments

A strong financial position has allowed Aimia to undertake small
acquisitions and investments to support its strategy and replicate its
successful models globally. It has also allowed investment in
technology to strengthen its competitive position and to generate the
kind of longer term returns seen from PLM, where Aimia received
distributions of $14 million in 2013.

Investments
On a year to date basis, Aimia has announced the following acquisitions:

Think Big
On February 6, 2014, Aimia made an initial equity investment of $17.1
million in Air Asia’s Think Big coalition loyalty program. Aimia will
bring the expertise and knowledge transfer to help grow the member base
and build the loyalty experience with the consumer, while also
improving profitability.

Travel Club
On April 10, 2014, Aimia acquired a 25% equity stake in Travel Club,
Spain’s largest coalition loyalty program, becoming a shareholder
alongside Iberia, Repsol and Eroski. Travel Club has 6 million members
and 30 business partners. Aimia will draw on its international
experience to grow Travel Club’s member base, deliver more value to
members and attract partners from new sectors including finance,
fashion, insurance and telecoms.

Current investments include:


Investments
Name	Country	% Aimia holds
Investments in Joint Arrangements
PLM Premier S.A.P.I. de CV	Mexico	48.9%
Prismah Fidelidade S.A.	Brazil	50.0%
Insight 2 Communications LLP	UK	50.0%
Think Big	Malaysia	nd
Investments in Associates and Other
China Rewards	China	nd
Cardlytics	US	nd
Travel Club	Spain	25.0%

nd: Not disclosed

Balance Sheet and financial position

Aimia had commitments for long term debt facilities totalling $961.2
million at the end of March 2014, with $181.9 million coming due in
2014.


Long-Term Debt Maturity Schedule (in millions Canadian Dollars)
	Total	2014	2015	2016	2017	2018	Thereafter
Long-Term Debt including Interest	961.2	181.9	37.4	36.9	229.6	218.4	257.0

On May 9, 2014, Aimia also concluded an amendment to its existing $300
million credit facility with its lending syndicate, extending the term
of its revolving facility by two years to April 23, 2018.

The continued availability of the credit facilities is subject to
Aimia’s ability to maintain certain leverage, debt service and interest
coverage covenants, as well as other affirmative and negative
covenants, including certain limitations of distributions in the form
of dividends or equity repayments in any given fiscal year, as set out
in the credit agreement. At March 31, 2014, Aimia complied with all
such covenants.

At March 31, 2014, Aimia had net debt of $(181.0) million, consisting of
long term debt of $800.0 million less $623.2 million of cash and $357.8
million in long term investments in bonds, short term investments and
restricted cash.

Our available cash, which includes cash and cash equivalents, short term
investments and long term investments in bonds, totaled $503.8 million,
after accounting for $444.2 million of redemption reserves related to
our Canadian and UK programs.

Quarterly Conference Call and Audio Webcast Information

Aimia will host a conference call to discuss its first quarter 2014
financial results at 8:00 a.m. ET on Wednesday, May 14, 2014. 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/1281253/1413551

A slide presentation intended for simultaneous viewing with the
conference call will be available the evening of May 13, 2014, at: https://www.aimia.com/en/investors/presentations.html and an archived audio webcast will be available at: https://www.aimia.com/content/aimiawebsite/global/en/investors/events.html for ninety days following the original broadcast.

The audited consolidated financial statements and the MD&A will be
accessible on the investor relations website at: https://aimia.com/en/investors/quarterly-reports.html

Social Purpose Report

Aimia has today issued its 2013 Social Purpose Report, outlining the
progress against its three focus areas: Loyalty for Good, Responsible
Business Practices and Employees & Communities.

The full report is available at www.aimia.com/en/social-purpose/annual-reports.html.

Explanatory Notes to Financial Tables

Non-GAAP measures (Adjusted EBITDA, Adjusted Net Earnings per Common
share, Free Cash Flow before Dividends Paid and Free Cash Flow before
Dividends Paid per share) and constant currency are explained in the
section entitled Use of Non-GAAP Financial Information.
Includes the $100.0 million upfront contribution received from TD in the
first quarter of 2014.
Includes the upfront contribution received from TD totaling $73.4
million, net of an income tax expense of $26.6 million.
Includes a $22.5 million harmonized sales tax credit received in the
first quarter of 2014.
Variances in sub-totals and figures may arise due to rounding of
financial information in millions of dollars.
Represents reported figures excluding the $150.0 million payment to CIBC
and $50.0 million card migration provision.
Represents reported figures excluding the $150.0 million payment to CIBC
and $22.5 million of related harmonized sales tax.
Includes $100.0 million related to income tax refund of loss carry back
applied in Canada and $22.5 million input tax credit on harmonized
sales tax payment made in 2013.
The variance between the consolidated total and regional sub-totals is
due to intercompany eliminations.
Calculated as: (Free Cash Flow before Dividends Paid less preferred
dividends paid) / weighted average common shares outstanding.

Currency Sensitivity and Constant Currency

Currency Sensitivity
Aimia is exposed to currency risk on its foreign operations which are
denominated in a currency other than the Canadian dollar, mainly the
pound sterling, and as such, is subject to fluctuations as a result of
foreign exchange rate variations.

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.

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
goodwill impairment, 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 or receivable 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 on page 14 of the Management
Discussion & Analysis for the three month period ended March 31, 2014.
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 or
receivable 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 on page 14 of the Management
Discussion & Analysis.

Adjusted Net Earnings per Common Share
Adjusted Net Earnings per Common Share provides a measurement of
profitability per Common Share on a basis consistent with Adjusted Net
Earnings. Calculated as Adjusted Net Earnings less dividends declared
on preferred shares divided by the number of weighted average number of
basic and diluted common shares.

Adjusted Net Earnings per Common Share is not a measurement based on
GAAP, is not considered an alternative to Net Earnings per Common Share
in measuring profitability per Common Share 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 on page 14 of the Management Discussion & Analysis for
the three month period ended March 31, 2014.

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 on page 14 of
the Management Discussion & Analysis for the three month period ended
March 31, 2014.

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.

Free Cash Flow before Dividends paid per Share

Free Cash Flow before Dividends Paid per Share is a measurement of
cashflow generated from operations on a per share basis. It is
calculated as follows, Free Cash Flow before dividends paid less
preferred dividends paid over the weighted average number of common
shares outstanding

Please refer to the Summary of Consolidated Operating Results and
Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Earnings and
Free Cash Flow on page 14 of the Management Discussion & Analysis for
the three month period ended March 31, 2014.

Statement on Guidance Assumptions

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 2014 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 2014, 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, 2014. 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 presently
know about the 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.

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
“should” 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, changes to the Aeroplan Program,
failure to safeguard databases and consumer privacy, 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, 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 throughout Aimia’s
public disclosure records on file with the Canadian securities
regulatory authorities.

The forward-looking statements contained herein represent Aimia’s
expectations as of May 13, 2014, 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.

About Aimia

Aimia Inc. (“Aimia”) is a global leader in loyalty management. Employing
more than 4,300 people in 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, Nectar, the United Kingdom’s largest coalition loyalty
program, Nectar Italia, Italy’s largest coalition loyalty program and
Smart Button, a leading provider of SaaS loyalty solutions. In
addition, Aimia owns stakes in Air Miles Middle East, Travel Club,
Spain’s leading coalition loyalty program, Club Premier, Mexico’s
leading coalition loyalty program, China Rewards, the first coalition
loyalty program in China that enables members to earn and redeem a
common currency, Think Big, the owner and operator of BIG – AirAsia
and Tune Group’s loyalty program, 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 card-linked marketing. Aimia is listed on the Toronto Stock
Exchange (TSX: AIM). For more information, visit us at www.aimia.com.

SOURCE AIMIA

Contact:

Media, Analysts and Investors
Karen Keyes
416-352-3728
karen.keyes@aimia.com

Download PDF Version

Archives

Aimia Reports First Quarter Results

Get in Touch

IRandMedia@corp.aimia.com

(647) 948-8758

© Copyright 2024 Aimia Inc. All Rights Reserved.