Aimia Inc. · TSX:AIM
Aimia — Groupe Aeroplan — Q1 2011 Earnings Presentation
28 slides from Aimia's earnings presentation, May 25, 2011
Slide 1: Q1 2011 Financial Highlights
Q1 2011 Financial Highlights May 25, 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
David Adams Executive Vice-President & CFO
Slide 4: Q1 2011 Highlights
Q1 2011 Highlights • Groupe Aeroplan’s First Quarter 2011 results reflect the following changes to its financial reporting: • Adoption of International Reporting Standards (IFRS) effective January 1, 2011 • New regional reporting segments: • Investment in PLM/ Club Aeroplan LMG CM Premier Nectar UK
Slide 5: Q1 2011 Consolidated Financial Highlights
Q1 2011 Consolidated Financial Highlights Three Months Ended % Change March 31, (3) ($ millions) 2011 2010 Year Over Year Constant Currency Gross billings 527.9 517.9 1.9% 3.1% Gross billings from sale of GALUs 362.7 338.3 7.2% 8.2% Total Revenue 546.2 508.3 7.5% 8.5% Cost of rewards and direct cost
Slide 6: Segmented Gross Billings
Q1 2011 Gross Billings Three Months Ended % Change Segmented March 31, (2) Gross Billings ($ millions) 2011 2010 Year Over Year Constant Currency Canada Canada EMEA Aeroplan Canada 275.2 260.6 5.6% 5.6% 60% 23% Carlson Marketing Canada 58.8 36.9 59.3% 59.3% Inter-company eliminations (14.3) -- na na
Slide 7: Q1 2011 Adjusted EBITDA
Q1 2011 Adjusted EBITDA Three Months Ended % Change March 31, (2) ($ millions) 2011 2010 Year Over Year Constant Currency Canada Aeroplan Canada 77.2 68.8 12.2% 12.2% Carlson Marketing Canada 10.8 4.3 151.2% 151.2% 88.0 73.1 20.5% 20.5% EMEA 3.2 (8.5) 137.5% 136.5% US & APAC (6.9) 3.0 na na Corporat
Slide 8: Carlson Marketing - Update
Carlson Marketing - Update Carlson Marketing Q1 2011 F2011 Guidance Post Carlson Marketing Acquisition Gross Billings $ 153.5 million 7% - 10% growth (1) Key Achievements (2) Adjusted EBITDA margin 4.9% 6% - 8% (2) • IT and support service savings (1) Includes approximately $60 million in intercompa
Slide 9: Free Cash Flow
Free Cash Flow Three Months Ended $ Change March 31, ($ in millions) 2011 2010 Cash generated from operating activites 7.3 1.9 5.4 Interest received 1.8 5.2 (3.4) Interest paid (13.9) (7.6) (6.3) Income taxes paid (10.1) (29.2) 19.1 Net cash used in operating activities (14.8) (29.7) 14.9 Capital ex
Slide 10: Premier Loyalty and Marketing/ Club Premier Q1 2011 Financial Highlights
Premier Loyalty and Marketing/ Club Premier Q1 2011 Financial Highlights • On February 28, 2011, we completed the second tranche of the investment in Premier Loyalty and Marketing (PLM) of US$11.8 million ($11.8 million), bringing our equity participation to 28.86%. • The disbursement was made follo
Slide 11: Liquidity, Balance Sheet, Refinancing & Redemption Reserve
Liquidity Balance Sheet Refinancing & Redemption Reserve ($ millions) March 31, 2011 Dec 31, 2010 • On May 6, 2011, we concluded an amendment to our credit facilities with our lending syndicate – Repaid $100.0 million outstanding under the term Cash and cash equivalents $295.3 $538.6 facility Restri
Slide 12: Dividends
Dividends AER Payout Ratio F2011 AER Dividends and Distributions Paid • Anticipate payout ratio for 2011 to be around 50% of ($ millions) midpoint of Free Cash Flow guidance $173 • Dividend policy will be reviewed annually $144 AER Dividend Yield $123 $108 $100 6% 5% 4% $26 3% 2% Jan 2010 Apr 2010 J
Slide 13: Share Repurchase Summary
Share Repurchase Summary Shares Total Average Initial NCIB Repurchased Consideration Price Per Share Shares Repurchased (MM) Average Price Per Share May 12 – June 30, 2010 2,500,000 $23.7 million $9.48 $13.00 $13.00 July 1 – September 30, 2010 8,150,600 $88.9 million $10.91 $12.60 8.2 October 1 – De
Slide 14: 2011 Outlook
2011 Outlook Other than an update with respect to Carlson Marketing’s contribution to 2011 Adjusted EBITDA, the Corporation has no revisions to the 2011 annual guidance provided in the February 24, 2011 earnings press release. Operating results are subject to seasonal variations and are not indicati
Slide 15: Appendix
Appendix GROUPE > AEROPLAN
Slide 16: Canada – Q1 2011 Financial Highlights
Canada – Q1 2011 Financial Highlights Three Months Ended March 31, % Change Segmented Gross Billings* ($ millions) 2011 2010 Year Over Year Gross billings Aeroplan Aeroplan Canada 275.2 260.6 5.6% Canada Carlson Marketing Canada 58.8 36.9 59.3% 86% Inter-company eliminations (14.3) -- na 319.7 297.5
Slide 17: EMEA – Q1 2011 Financial Highlights
EMEA – Q1 2011 Financial Highlights Three Months Ended % Change March 31, (3) ($ millions) 2011 2010 Year Over Year Constant Currency Gross billings 120.7 111.4 8.4% 11.9% Total revenue 103.9 89.7 15.8% 19.6% (1) Gross margin 33.2 31.2 6.4% 9.6% Gross margin (%) 31.9% 34.8% (284 bps) na Operating in
Slide 18: US & APAC – Q1 2011 Financial Highlights
US & APAC – Q1 2011 Financial Highlights Three Months Ended % Change March 31, (2) ($ millions) 2011 2010 Year Over Year Constant Currency Gross billings 87.4 109.0 (19.8%) (18.0%) Total revenue 87.8 108.2 (18.9%) (17.1%) Gross margin (1) 35.3 47.8 (26.0%) (23.2%) Gross margin (%) 40.2% 44.1% (391 b
Slide 19: Aeroplan Canada - Financial Highlights
Aeroplan Canada - Financial Highlights Three Months Ended % Change March 31, ($ millions) 2011 2010 Year-Over-Year Gross billings 275.2 260.6 5.6% Gross billings from sale of GALUs 261.6 246.5 6.1% Total revenue 309.8 274.4 12.9% Cost of rewards & direct costs 184.8 168.5 9.7% Gross margin (1) 125.0
Slide 20: Aeroplan Canada - Revenue
Aeroplan Canada - Revenue Total Miles Redeemed Revenue Breakdown (billions) Three Months Ended March 31, (in millions) 2011 2010 Change % Change 19.9 0.4 Miles revenue 243.3 213.9 29.4 13.7% Breakage revenue 52.9 46.4 6.5 14.0% 17.6 Other 13.6 14.1 (0.5) (3.5%) Total Revenue 309.8 274.4 35.4 12.9% Q
Slide 21: Aeroplan Canada - Miles
Aeroplan Canada - Miles Miles Issued & Redeemed Average Cost & Selling Price (billions) (cents / mile) 21.0 19.9 19.9 1.25 1.24 0.96 0.93 17.6 Q1 2011 Q1 2010 Q1 2011 Q1 2010 Aeroplan Miles Issued Aeroplan Miles Redeemed Average Selling Price Average Cost/ Mile Redeemed • Miles issued increased 5.5%
Slide 22: Groupe Aeroplan Europe - Financial Highlights
Groupe Aeroplan Europe - Financial Highlights Three Months Ended % Change March 31, (2) ($ millions) 2011 2010 Year Over Year Constant Currency Gross billings 113.4 100.5 12.8% 16.6% Gross billings from sale of GALUs 101.1 91.8 10.2% 13.9% Total revenue 96.8 78.8 22.8% 26.9% Cost of rewards & direct
Slide 23: Outstanding VAT Payment
Outstanding VAT Payment Beginning Balance Movement Ending Balance (amounts in millions) January 1, 2011 Q1 2011 March 31, 2011 £ $ £ $ £ $ Accounts Payable 85.7 133.0 1.8 3.5 87.5 136.5 Accounts Receivable (41.2) (63.9) -- (0.4) (41.2) (64.3) Cash in escrow (27.1) (42.0) -- (0.3) (27.1) (42.3) Inter
Slide 24: Carlson Marketing - Financial Highlights
Carlson Marketing - Financial Highlights Three Months Ended % Change March 31, ($ millions) 2011 2010 Year Over Year Constant Currency (2) Gross billings 153.5 156.9 (2.2%) (0.8%) Total revenue 153.9 155.0 (0.7%) 0.7% Cost of rewards & direct costs 88.7 83.0 6.9% 7.7% Gross margin (1) 65.2 72.1 (9.5
Slide 25: Gross Billings by Major Partner
Gross Billings by Major Partner Q1 2011 Gross Billings Q1 2010 Gross Billings $527.9 million $517.9 million 24.2% 24.3% 44.6% 46.4% 6.6% 6.1% 10.7% 10.4% 13.9% 12.8% Partner A Partner B Partner C Air Canada Other 25
Slide 26: Adjusted EBITDA & Free Cash Flow - Seasonality
Adjusted EBITDA & Free Cash Flow - Seasonality Adjusted EBITDA* Free Cash Flow ($ millions) ($ millions) 100 120 90 100 80 80 70 60 60 40 50 20 40 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 30 (20) 2007 2008 2009 2010 2011 20 (40) 10 (60) 0 (80) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 27: Foreign Exchange Rates
Foreign Exchange Rates Period Rates Q1 2011 Q1 2010 Change % Change Period end rate £ to $ 1.5595 1.5422 0.0173 1.1% Average Quarter £ to $ 1.5803 1.6256 (0.0453) (2.8%) Period end rate AED to $ 0.2646 0.2765 (0.0119) (4.3%) Average Quarter AED to $ 0.2685 0.2834 (0.0149) (5.3%) Period end rate AED
Slide 28: Q1 2011 Financial Highlights
Q1 2011 Financial Highlights May 25, 2011