Aimia Inc. · TSX:AIM
Aimia — Groupe Aeroplan — Q3 2010 Earnings Presentation
24 slides from Aimia's earnings presentation, Nov 10, 2010
Slide 1: Financial Highlights, November 10, 2010
Pm SQ 2010 GROUPE AEROPLAN Financial Highlights November 10, 2010
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: Q3 2010 Consolidated Financial Highlights
Q3 2010 Consolidated Financial Highlights As Reported & Adjusted for Constant Currency Three Months Ended September 30, 2010 Impact of (Excluding Foreign 2010 2010 VAT Impact of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency (Reporte
Slide 5: YTD Consolidated Financial Highlights
YTD Consolidated Financial Highlights As Reported & Adjusted for Constant Currency Nine Months Ended September 30, 2010 Impact of (Excluding Foreign 2010 2010 VAT Impact of VAT 2009 % Exchange Constant 2009 % ($ thousands) (Reported) Judgment Judgment) (Reported) Change Impact Currency (Reported) Ch
Slide 6: Impact of VAT Judgment on Key Financial Metrics
Impact of VAT Judgment on Key Financial Metrics Three Months Ended September 30, 2010 Nine Months Ended September 30, 2010 Excluding Impact (in thousands, excluding per share Excluding Impact Reported Impact of VAT Judgment of VAT Judgment amounts) Reported Impact of VAT Judgment of VAT Judgment $ £
Slide 7: Impact of VAT Judgment on Balance Sheet and Statement of Cash Flows
Impact of VAT Judgment on Balance Sheet and Statement of Cash Flows Balance Sheet Statement of Cash Flows (as at September 30, 2010) (For the three and nine months ended September 30, 2010) In millions £ $ In millions £ $ Accounts receivable 37.2 60.3 Net earnings for the period ( 37.3) (59.3) Accou
Slide 8: Q3 2010 Non-Comparable Items
Q3 2010 Non-Comparable Items Effect on Effect on Adjusted EBITDA Free Cash Flow 1. Nectar Italia launch costs ($1.9 million) ($1.9 million) 2. Carlson Marketing migration costs ($4.5 million) ($4.5 million) 3. Corporate costs (strategic consulting fees) ($3.0 million) ($3.0 million) 4. Impact of VAT
Slide 9: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $531.5 $11.1M Fx Impact $136.4M Carlson Marketing (as reported) $355.3 $355.3M Groupe Aeroplan $384.0M Groupe Aeroplan (as reported) excluding Carlson Marketing (as reported) Q3 2009 Q3 2010 9 9
Slide 10: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $90.7 $1.0M Fx impact $76.7 $53.3M impact of VAT judgment(3) $76.7M Groupe Aeroplan (as reported) $9.4M Non-comparable costs(2) $27.0M Groupe Aeroplan (as reported) Q3 2009 Q3 2010 (1) Calculated in accordance with the definition included in the Corporati
Slide 11: Consolidated Free Cash Flow
Consolidated Free Cash Flow(1) ($ Millions) Reported Free Cash Flow in Q3 2010 $112.7 million Non-comparable items(2) that affected reported Adjusted EBITDA and free cash flow $9.4 million No VAT impact on cash flow from operations or from free cash flow in Q3 2010 In addition to the non-comparable
Slide 12: Aeroplan Canada Q3 and YTD 2010 Financial Highlights
Aeroplan Canada Q3 and YTD 2010 Financial Highlights Three Months Ended September 30, Nine Months Ended September 30, ($ thousands) 2010 2009 % Change 2010 2009 % Change Gross billings 268,351 257,020 4.4% 794,425 772,209 2.9% Gross billings from sale of GALUs 256,971 244,991 4.9% 757,422 731,576 3.
Slide 13: Aeroplan Canada Adjusted EBITDA Bridge
Aeroplan Canada Adjusted EBITDA Bridge Reported Adjusted EBITDA Bridge – $74.6M in Q3 2009 VS. $79.9M in Q3 2010 ($ millions) 12.0 0.7 0.7 1.6 5.1 79.9 74.6 2009 Adjusted Gross Billings Other Gross Selling, general Redemption costs Change in future 2010 Adjusted EBITDA from GALUs Billings and redemp
Slide 14: Groupe Aeroplan Europe Q3 2010 Financial Highlights
Groupe Aeroplan Europe Q3 2010 Financial Highlights AS reported Constant Currency Three Months Ended September 30, Fx Impact Three Months Ended September 30, % % ($ thousands) 2010 2009 Change 2010 2010 2009 Change Gross billings 115,707 98,329 17.7% 11,094 126,801 98,329 29.0% Gross billings from s
Slide 15: Groupe Aeroplan Europe YTD 2010 Financial Highlights
Groupe Aeroplan Europe YTD 2010 Financial Highlights As reported Constant Currency Nine Months Ended September 30, Fx Impact Nine Months Ended September 30, % % ($ thousands) 2010 2009 Change 2010 2010 2009 Change Gross billings 337,466 288,415 17.0% 36,655 374,121 288,415 29.7% Gross billings from
Slide 16: Carlson Marketing Financial Highlights
Carlson Marketing Financial Highlights Carlson Marketing Three Months Ended Nine Months Ended September 30, September 30, ($ thousands) 2010 2010 Gross Billings 136,397 462,245 Total revenue 133,108 443,778 Cost of rewards & direct costs 66,077 230,108 Gross margin 67,031 213,670 Selling, general an
Slide 17: Liquidity
Liquidity (in $ millions) September 30, 2010 Dec 31, 2009 Cash and cash equivalents 688.6 609.9 Restricted cash 8.0 4.2 Short-term investments 12.4 14.4 709.0 628.5 Loan receivable from Air Canada (1) – 150.0 Long-term debt 643.2 780.1 Shareholders' equity 1,871.0 1,915.4 (1) Loan receivable from Ai
Slide 18: Share Repurchase Summary
Share Repurchase Summary Shares Total Average Repurchased Consideration Price Per Share May 12 – June 30, 2010 2,500,000 $23.7 million $9.48 July 1 – September 30, 2010 8,150,600 $88.9 million $10.91 October 1 – November 10, 2010 1,972,300 $24.7 million $12.52 12,622,900 $137.3 million $10.88 As of
Slide 19: Appendix
Slide 20: Foreign Exchange Rates
Foreign Exchange Rates Period Rates Q3 2010 Q3 2009 Change % Change Period end rate £ to $ 1.6198 1.7158 (0.0960) (5.60%) Average quarter £ to $ 1.6117 1.7996 (0.1879) (10.44%) Average YTD £ to $ 1.5901 1.7976 (0.2075) (11.54%) Period end rate USD to $ 1.029 1.0707 (0.0417) (3.89%) Average quarter U
Slide 21: Gross Billings from Sale of GALUs by Major Partner
Gross Billings from Sale of GALUs(1) by Major Partner Q3 2009 Gross Billings from Sale of GALUs Q3 2010 Gross Billings from Sale of GALUs $335.9 million $360.1 million 18.1% 20.8% 38.4% 37.6% 17.7% 17.1% 9.4% 16.4% 9.2% 15.3% Partner A Partner B Partner C Air Canada Other (1) The definition of “Gros
Slide 22: Aeroplan Canada - Revenue
Aeroplan Canada - Revenue Total Miles Redeemed (billions) 16.1 15.5 Three Months Ended September 30, 15.5 15.5 (in millions) 2010 2009 Change % Change Miles revenue 189.2 187.8 1.4 0.7% Breakage revenue 44.8 43.8 1.0 2.3% Other 11.4 12.0 -0.6 (5.0%) Total Revenue 245.4 243.6 1.8 0.7% 0.6 0.0 Q3 2010
Slide 23: Aeroplan Canada – Miles
Aeroplan Canada – Miles Miles Issued (billions) Aeroplan Miles Redeemed (billions) 20.7 15.5 15.5 20.0 Q3 2010 Q3 2009 Q3 2010 Q3 2009 Average Cost / Mile Avg. Selling Price (cents) Redeemed 1.24 (cents) 1.23 0.89 0.88 Q3 2010 Q3 2009 Q3 2010 Q3 2009 23
Slide 24: Financial Highlights, November 10, 2010
Pm SQ 2010 GROUPE AEROPLAN Financial Highlights November 10, 2010