TORONTO - Aimia Inc. (TSX: AIM) reported its financial results for the three and six months ended June 30, 2021.
Q2 2021 Highlights
Aimia reported income of $9.7 million and net earnings from continuing operations of $2.9 million.
PLM generated net earnings of $15.5 million and adjusted EBITDA of $15.4 million; Aimia received $5.3 million of PLM distributions.
Aimia completed the sale of its 20% equity stake in AirAsia's loyalty company, BIGLIFE, to AirAsia Group Berhad ('AirAsia'), and recorded a gain of $6.9 million on the transaction.
Subsequent to the end of the quarter
Aimia invested $44.0 million (US$35.0 million) in TRADE X, a global B2B automotive cross-border trading platform, at a pre-money valuation of $314 million (US$250 million), representing a 12.3% equity stake on a fully diluted basis.
Aimia announced its intent to participate in the planned privatization of Clear Media Limited by tendering the company's entire stake consisting of 58,774,450 shares of Clear Media as acceptance for the Share Alternative in the new holding company entity pursuant to the voluntary conditional offer as jointly announced by Ever Harmonic Global Limited and Clear Media Limited on July 5, 2021. Following Aimia's review of the Composite Document dated August 2, 2021, Aimia has elected to accept the share offer and will maintain an indirect 10.85% shareholding in the privatized Clear Media. The transaction is expected to close in the third quarter of 2021.
This quarterly earnings release should be read in conjunction with Aimia's consolidated financial statements and MD&A which can be accessed on SEDAR as well as the company's website.
Phil Mittleman, Chief Executive Officer, commented: 'We are very pleased with our second quarter and first half results, and continue to focus on enhancing the value of our legacy holdings, while deploying excess capital towards new investment opportunities. Aimia has been successfully transformed into a lean, opportunistic holding company, with an exciting portfolio of investments, optimally positioned to deliver attractive long-term returns for stakeholders.'
Segment Highlights for Q2 2021
The Holdings segment includes Aimia's equity-accounted investments in PLM, Kognitiv, and investments in Clear Media Limited, a special purpose vehicle, and a portfolio of various public securities and investments in limited partnerships. Also included are holding company operating costs related to public company disclosure and Board costs, executive leadership, finance and administration.
The Investment Management segment consists of the discretionary portfolio management services provided to institutional investors and high net worth individuals operated under Mittleman Investment Management, LLC ('MIM').
Holdings segment results
During the second quarter of 2021, total income was $8.8 million, which included the $6.9 million gain on the disposal of equity-accounted investment related to the BIGLIFE transaction, down from $9.1 million in the same quarter last year, impacted by a reduced share of net earnings of equity-accounted investment and lower net change in fair value of investment in equity instruments.
Expenses were $5.0 million, up from $1.5 million in the same quarter last year, due to an increase in compensation and benefits expense driven by an increase of $2.9 million of share-based compensation and other performance awards which included a reversal of previously accrued liability in the three months ended June 30, 2020. This increase was offset by lower restructuring expenses. Excluding share-based compensation and other compensation awards, expenses were $3.8 million, an increase of $0.6 million from $3.2 million last year.
On June 1, 2021, Aimia invested $25.0 million in Precog Capital Partners L.P. ('Precog'), a private fund managed by Mittleman Investment Management. The private fund employs a long-term value-oriented investment strategy based on a concentrated portfolio of domestic and foreign equity securities of varying market capitalization.
Phil Mittleman, Chief Executive Officer, commented: 'We are very pleased with our second quarter and first half results, and continue to focus on enhancing the value of our legacy holdings, while deploying excess capital towards new investment opportunities. Aimia has been successfully transformed into a lean, opportunistic holding company, with an exciting portfolio of investments, optimally positioned to deliver attractive long-term returns for stakeholders.'
About Aimia
Aimia Inc. (TSX: AIM) is a holding company with a focus on long-term investments in public and private companies, on a global basis, through controlling or minority stakes.
The company operates an investment advisory business through its wholly-owned subsidiary Mittleman Investment Management, LLC, and owns a diversified portfolio of investments including a 48.9% equity stake in PLM Premier, S.A.P.I. de C.V. (PLM), owner and operator of Club Premier, the coalition loyalty program in Mexico that operates the Aeromexico Frequent Flyer program, a 48.4% equity stake in Kognitiv, a B2B technology growth company enabling collaborative commerce, a 12.3% equity stake in TRADE X, a global B2B cross-border automotive trading platform, a 10.85% stake in Clear Media Limited (100.HK), one of the largest outdoor advertising firms in China, as well as minority stakes in various public company securities and investments in limited partnerships.
Non-GAAP Financial Measures
Following the Corporation strategic update, 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 our MD&A section - 'Non-GAAP Financial Measures for Investments'.
Forward-Looking Statements
Forward-looking statements are included in this press 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, business and industry disruptions related to natural disasters, security issues and global health crises particularly as they might affect the airline, travel and hospitality sectors, risks and uncertainties related to Aimia's investment in PLM arising from Aeromexico's Chapter 11 filings, the execution of the strategic plan, investment risks, including in connection with how and when to deploy and invest Aimia's considerable cash and other liquid assets, holding company liquidity risk, investment partnerships risks, airline industry changes and increased airline costs, reliance on key personnel, market price and trading volume of the common shares and preferred shares, uncertainty of dividend declarations and/or payments on either common shares or preferred shares, passive foreign investment company risk, limitations on utilization of tax losses, technological disruptions and inability to use third-party software and outsourcing, regulatory matters related to privacy, foreign operations, interest rate and currency fluctuations, legal proceedings, audit by tax authorities, 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 August 12, 2021 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.
Contact:
Tom Tran
Tel: (647) 208-2166
Email: tom.tran@aimia.com
AIMIA INC. 
