Aimia Inc. · TSX:AIM
Aimia — Q4 2010 Earnings Presentation
30 slides from Aimia's earnings presentation, Feb 24, 2011
Slide 1: Q4 2010 Aeroplan Financial Highlights
A 4 2010 AEROPLAN Financial Highlights February 24, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements are included in this presentation. 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
Slide 3: David Adams, Executive Vice President & CFO
Slide 4: Q4 2010 Consolidated Financial Highlights
Q4 2010 Consolidated Financial Highlights As Reported & Adjusted for Constant Currency 3 Months Ended December 31, 2010 (Excluding Impact of Impact Foreign 2010 2010 VAT of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency* (Reported) C
Slide 5: Full Year Consolidated Financial Highlights
Full Year Consolidated Financial Highlights As Reported & Adjusted for Constant Currency For the Years Ended December 31, 2010 (Excluding Impact of Impact Foreign 2010 2010 VAT of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency* (Repo
Slide 6: Non-Comparable Items
Non-Comparable Items Q4 2010 F2010 Effect on Effect on Adjusted Free Cash Flow Adjusted Free Cash Flow ($ millions) EBITDA (net of dividends) EBITDA (net of dividends) Impact of ECJ VAT Judgment ($2.5) ($56.1) Nectar Italia launch costs ($20.4) ($20.4) Corporate costs (strategic consulting fees) ($1
Slide 7: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $602.1 $8.5 Fx Impact $173.0 Carlson Marketing (as reported) $386.7 $386.7 $420.6 Groupe Aeroplan Groupe Aeroplan excluding Carlson Marketing (as reported) (as reported) Q4 2009 Q4 2010 7
Slide 8: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $2,216.0 $45.6 Fx Impact $617.9* Carlson Marketing $1,447.3 ($635.3 reported less Q2 adjustment of $17.4M) $1,447.3 Groupe Aeroplan $1,552.5 Groupe Aeroplan (as reported) excluding Carlson Marketing (as reported) F2009 F2010 * In connection with the integrati
Slide 9: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $95.0 $0.3 Fx impact $2.5 impact of VAT judgment(2) $7.3 Non-comparable costs(3) $69.6 $84.9 Groupe Aeroplan (as reported) $69.6 Groupe Aeroplan (as reported) Q4 2009 Q4 2010 (1) Calculated in accordance with the definition included in the Corporation’s M
Slide 10: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $344.8 $2.8 Fx impact $281.6 $56.1 impact of VAT judgment(2) $30.2 non-comparable costs(3) $255.7 Groupe Aeroplan $281.6 Adjusted EBITDA (as reported) Groupe Aeroplan (as reported) F2009 F2010 (1) Calculated in accordance with the definition included in t
Slide 11: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ Millions) Effect on Q4 2010 Effect on F2010 ($ millions) Free Cash Flow Free Cash Flow Reported Free Cash Flow (net of dividends)* $55.3 $113.7 Nectar Italia launch costs $20.4 Corporate costs (strategic consulting fees) $1.9 $9.1 Carlson Marketing migration costs $4.3
Slide 12: Aeroplan Canada Q4 and F2010 Financial Highlights
Aeroplan Canada Q4 and F2010 Financial Highlights 3 Months Ended December 31, 12 Months Ended December 31, ($ thousands) 2010 2009 % Change 2010 2009 % Change Gross billings 288,063 274,362 5.0% 1,082,488 1,046,571 3.4% Gross billings from sale of GALUs 275,801 261,719 5.4% 1,033,223 993,295 4.0% To
Slide 13: Groupe Aeroplan Europe Q4 2010 Financial Highlights
Groupe Aeroplan Europe Q4 2010 Financial Highlights 3 Months Ended December 31, 3 Months Ended December 31, Reported Constant Currency 1 Foreign % Exchange % ($ thousands) 2010 2009 Change Impact 2010 2009 Change Gross billings 132,524 112,336 18.0% 8,445 140,969 112,336 25.5% Gross billings from sa
Slide 14: Groupe Aeroplan Europe F2010 Financial Highlights
Groupe Aeroplan Europe F2010 Financial Highlights 12 Months Ended December 31, 12 Months Ended December 31, Reported Constant Currency 1 Foreign % Exchange % ($ thousands) 2010 2009 Change Impact 2010 2009 Change Gross billings 469,990 400,751 17.3% 45,623 515,613 400,751 28.7% Gross billings from s
Slide 15: Carlson Marketing Q4 2010 and F2010 Financial Highlights
Carlson Marketing Q4 2010 and F2010 Financial Highlights 3 Months 12 Months Ended Ended December 31, December 31, ($ thousands) 2010 2010 Gross Billings 173,030 635,275 Total revenue 166,802 610,580 Cost of rewards & direct costs 100,198 330,306 Gross margin 66,604 280,274 Selling, general and admin
Slide 16: Income Taxes
Income Taxes • Current income tax expense essentially reflects the current income taxes paid or payable at a rate of approximately 30 per cent on earnings generated by our Canadian operations. • The future income tax expense relates to timing differences between accounting and taxable income and mor
Slide 17: IFRS
IFRS • IFRS will not result in significant differences • Breakage – Opening retained earnings for 2010 will be adjusted by $72.1 million with a corresponding increase to deferred revenue – The impact of the new rules for the year ended 2010 is expected to result in an approximate increase of $3 mill
Slide 18: Liquidity
Liquidity (in $ millions) Dec 31, 2010 Dec 31, 2009 Cash and cash equivalents 538.6 609.9 Restricted cash 12.6 4.2 Short-term investments – 14.4 Long-term investments (1) 176.9 – 728.1 628.5 Loan receivable from Air Canada (2) – 150.0 Long-term debt (including current portion) 643.9 780.1 Shareholde
Slide 19: Share Repurchase Summary
Share Repurchase Summary Shares Total Average Repurchased Consideration Price Per Share May 12 – June 30, 2010 2,500,000 $23,700,000 $9.48 July 1 – September 30, 2010 8,150,600 $88,900,000 $10.91 October 1 – December 31, 2010 2,372,300 $29,900,000 $12.60 Total Shares Repurchased in F2010 13,022,900
Slide 20: 2011 Outlook
2011 Outlook* For the year ending 2011, Groupe Aeroplan expects to report the following on a consolidated basis: Target Range Gross Billings Between 4% and 6% growth Adjusted EBITDA Between $355M and $365M Free Cash Flow 1 2 Between $190M and $210M 1 Free Cash Flow before dividends and excluding an
Slide 21: 2011 Outlook: Free Cash Flow
2011 Outlook: Free Cash Flow Free Cash Flow forecast for 2011 of between $190 million and $210 million includes incremental spend of between $45 million and $65 million related to the following: • higher redemptions expected at Nectar Italia as members start reaching redemption thresholds and the re
Slide 22: Appendix
Slide 23: Q4 2010 Consolidated Statement of Cash Flows (unaudited)
Q4 2010 Consolidated Statement of Cash Flows (unaudited) Three months ended December 31 (in thousands of dollars, except share and per share amounts) 2010 2009 (unaudited) (unaudited) Cash flows from (used in) Operating activities Net earnings (loss) for the year $ (10,964) $ 20,545 Items not affect
Slide 24: VAT Impact on Cashflow
VAT Impact on Cashflow For the years ended December 31 in millions 2010 2011 Outlook(1) $ £ $ £ Net Earnings (Loss) (63.7) (40.0) 1.3 0.8 Accounts Receivable Recoverable amounts from redemption partners (65.6) (41.2) 63.9 41.2 Accounts Payable Input tax credits, fees and interest 136.5 85.7 (133.0)
Slide 25: Foreign Exchange Rates
Foreign Exchange Rates Period Rates Q4 2010 Q4 2009 Change % Change Period end rate £ to $ 1.5513 1.6918 (0.1405) (8.3%) Average Quarter £ to $ 1.6011 1.7266 (0.1255) (7.3%) Average YTD £ to $ 1.5928 1.7799 (0.1871) (10.5%) Period end rate AED to $ 0.2724 0.2849 (0.0125) (4.4%) Average Quarter AED t
Slide 26: Gross Billings from Sale of GALUs by Major Partner
Gross Billings from Sale of GALUs(1) by Major Partner Q4 2009 Gross Billings from Sale of GALUs Q4 2010 Gross Billings from Sale of GALUs $363.0 million $394.7 million 18.2% 19.9% 36.6% 36.2% 17.0% 18.2% 10.4% 17.8% 8.5% 17.2% Partner A Partner B Partner C Air Canada Other (1) Defined in the Corpora
Slide 27: Gross Billings from Sale of GALUs by Major Partner
Gross Billings from Sale of GALUs(1) by Major Partner F2009 Gross Billings from Sale of GALUs F2010 Gross Billings from Sale of GALUs $1,363.0 million $1,457.8 million 17.7% 19.8% 37.1% 37.1% 18.2% 18.0% 10.0% 8.9% 17.0% 16.2% Partner A Partner B Partner C Air Canada Other (1) Defined in the Corpora
Slide 28: Aeroplan Canada - Revenue
Aeroplan Canada - Revenue Total Miles Redeemed (billions) 16.0 16.4 Three Months Ended December 31, 16.4 15.4 (in millions) 2010 2009 Change % Change Miles revenue 200.0 187.5 12.5 6.7% Breakage revenue 45.2 44.2 1.0 2.3% Other 12.3 12.6 (0.3) (2.3%) Total Revenue 257.5 244.3 13.2 5.4% 0.6 0.0 Q4 20
Slide 29: Aeroplan Canada – Miles
Aeroplan Canada – Miles Miles Issued (billions) Aeroplan Miles Redeemed (billions) 22.4 16.4 21.5 15.4 Q4 2010 Q4 2009 Q4 2010 Q4 2009 Avg. Selling Price Average Cost / Mile (cents) Redeemed 1.23 (cents) 1.22 0.92 0.88 Q4 2010 Q4 2009 Q4 2010 Q4 2009 29
Slide 30: Q4 2010 Aeroplan Financial Highlights
A 4 2010 AEROPLAN Financial Highlights February 24, 2011