Aimia Inc. · TSX:AIM
Aimia — Groupe Aeroplan — Q1 2010 Earnings Presentation
20 slides from Aimia's earnings presentation, May 12, 2010
Slide 1: Q1 2010 Groupe Aeroplan Financial Highlights
Q1 2010 AcROPLAN Financial Highlights May 12, 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: Consolidated Financial Highlights Reported & Adjusted for Constant Currency
Consolidated Financial Highlights Reported & Adjusted for Constant Currency Foreign Q1 2010 Q1 2010 Q1 2009 Exchange Constant Q1 2009 % ($ thousands, except per share amounts) (Reported) (Reported) % Change Impact Currency (Reported) Change Gross billings 517,947 346,328 49.6% (9,099) 527,046 346,32
Slide 5: Non-Comparable Items
Non-Comparable Items Effect on Effect on Adjusted EBITDA Free Cash Flow 1. Nectar Italia launch costs $11.1 million $11.1 million 2. Carlson Marketing transition and migration costs – Fees paid pursuant to transition services agreement $7.8 million $7.8 million – Migration expenses $2.6 million $2.6
Slide 6: Consolidated Gross Billings
Consolidated Gross Billings ($ Millions) $527.1 $9.1 Fx Impact $156.9 Carlson Marketing $346.3 $361.1 Groupe Aeroplan excluding Carlson Marketing Q1 2009 Q1 2010 6
Slide 7: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA(1) ($ Millions) $77.8 ($1.7) Fx Impact $65.2 $23.5 Non-comparable costs(2) $56.0 Reported Q1 2009 Q1 2010 (1) Calculated in accordance with the definition included in the Corporation’s MD&A for the quarter ended March 31, 2010. (2) Non-comparable items of $23.5 million,
Slide 8: Consolidated Free Cash Flow
Consolidated Free Cash Flow(1) ($ Millions) Reported Free Cash Flow in Q1 2010 ($66.0 million) Non-comparable items(2) that affected Adjusted EBITDA $23.5 million In addition to the $23.5 million non-comparable items that impacted Adjusted EBITDA, the following items also effected consolidated free
Slide 9: Aeroplan Canada - Financial Highlights
Aeroplan Canada - Financial Highlights Aeroplan Canada % ($ thousands) Q1 2010 Q1 2009 Change Gross billings 260,553 254,726 2.3% Gross billings from sale of GALUs 246,491 240,184 2.6% Total revenue 272,595 277,837 (1.9%) Cost of rewards & direct costs 168,501 173,046 (2.6%) Gross margin 104,094 104
Slide 10: Groupe Aeroplan Europe - Financial Highlights
Groupe Aeroplan Europe - Financial Highlights Reported Constant Currency Groupe Groupe Foreign Groupe Groupe Aeroplan Aeroplan Exchange Aeroplan Aeroplan Europe Europe Impact Europe Europe ($ thousands) Q1 2010 Q1 2009 % Change Q1 2010 Q1 2010 Q1 2009 % Change Gross billings 100,503 91,602 9.7% (9,0
Slide 11: Carlson Marketing - Financial Highlights
Carlson Marketing - Financial Highlights Carlson Marketing ($ thousands) Q1 2010 Gross billings 156,891 Total revenue 155,020 Cost of rewards & direct costs 82,956 Gross margin 72,064 Selling, general and administrative 65,732 Earnings before income taxes 634 Adjusted EBITDA 8,202 Gross margin as a
Slide 12: Update: Carlson Marketing Migration & Non-Recurring Costs
Update: Carlson Marketing Migration & Non-Recurring Costs Migration Costs Original estimate of migration costs (at time of acquisition) $15.0 million • migration required from Carlson Marketing’s former parent company’s infrastructure Change in technology migration approach $ 7.0 million • required
Slide 13: Liquidity, Long-Term Receivable and Capital Structure
Liquidity, Long-Term Receivable and Capital Structure (in $ millions) March 31, 2010 Dec 31, 2009 Cash and cash equivalents* 551.6 609.8 Restricted cash 6.7 4.2 Short-term investments 11.1 14.4 569.4 628.5 Loan Receivable from Air Canada 150.0 150.0 Long-term debt 641.2 780.1 Shareholders' equity 2,
Slide 14: 2010 Outlook
2010 Outlook For 2010 Groupe Aeroplan anticipates Gross Billings growth ranging between 2 and 4 per cent in its legacy businesses. Groupe Aeroplan expects to realize growth in consolidated Adjusted EBITDA in 2010. Groupe Aeroplan expects to realize growth in Adjusted EBITDA in its legacy businesses,
Slide 15: Appendix
Slide 16: Foreign Exchange Rates
Foreign Exchange Rates Period Rates Q1 2010 Q1 2009 Change % Change Period end rate £ to $ 1.5422 1.8022 (0.2600) (14.4%) Average Quarter £ to $ 1.6256 1.7860 (0.1604) (9.0%) Period end rate AED to $ 0.2765 0.3431 (0.0666) (19.4%) Average Quarter AED to $ 0.2834 0.3390 (0.0556) (16.4%) Period end ra
Slide 17: Gross Billings by Major Partner
Gross Billings(1) by Major Partner Q1 2009 Gross Billings Q1 2010 Gross Billings $346.3 million $517.9 million 22.3% 33.7% 24.3% 46.4% 18.6% 6.1% 9.7% 10.4% 15.7% 12.8% Partner A Partner B Partner C Air Canada Other (1) The definition of “gross billings” has been updated to mean gross proceeds from
Slide 18: Aeroplan Canada - Revenue
Aeroplan Canada - Revenue Total Miles Redeemed (billions) 19.1 18.0 18.2 17.6 March 31, March 31, (in millions) 2010 2009 Change % Change Miles revenue 213.9 220.1 (6.2) (2.8%) Breakage revenue 44.6 43.2 1.4 3.2% Other 14.1 14.5 (0.4) (2.8%) Total Revenue 272.6 277.8 (5.2) (1.9%) 0.9 0.4 Q1 2010 Q1
Slide 19: Aeroplan Canada – Miles
Aeroplan Canada – Miles Miles Issued Aeroplan Miles Redeemed (billions) (billions) 19.9 19.5 18.2 17.6 Q1 2010 Q1 2009 Q1 2010 Q1 2009 Avg. Selling Price Average Cost / Mile (cents) Redeemed (cents) 1.24 1.23 0.96 0.95 Q1 2010 Q1 2009 Q1 2010 Q1 2009 19
Slide 20: Q1 2010 Groupe Aeroplan Financial Highlights
Q1 2010 AcROPLAN Financial Highlights May 12, 2010