AIMIA REPORTS SECOND QUARTER 2025 RESULTS; RE-ITERATES AEBITDA GUIDANCE AND LOWERS HOLDCO COST TARGET FOR THE YEAR

Executive Summary

• Aimia Inc. reported its financial results for the second quarter and first half of 2025, highlighting a significant increase in Adjusted EBITDA and revenue driven by cost-cutting initiatives and favorable currency fluctuations.
• The company re-iterated its 2025 Adjusted EBITDA guidance for its core holdings (Bozzetto and Cortland) at $88–$95 million, while lowering its Holding Company cost target from below $11 million to $9 million.
• Key operational highlights include a $27 million tax refund settlement with the Canada Revenue Agency, a normal course issuer bid for share buybacks, and strong performance from subsidiary Bozzetto despite macroeconomic headwinds.

Key Details

• Consolidated Financials (Q2 2025):
  • Revenue: $128.7 million (up 5.1% from $122.4 million in Q2 2024).
  • Adjusted EBITDA: $19.7 million (up 60% from $12.3 million in Q2 2024).
  • Net Loss: $6.1 million ($0.08 per share).
  • Cash Flow from Operations: $9.4 million (positive turnaround from Q2 2024).
  • Cash and Cash Equivalents: $70.5 million at quarter-end.
• Consolidated Financials (6 Months Ended June 30, 2025):
  • Revenue: $258.5 million (up 5.7% from $244.5 million).
  • Adjusted EBITDA: $39.4 million (up 107.4% from $19.0 million).
  • Net Loss: $5.7 million.
• Segment Performance:
  • Bozzetto: Revenue of $90.9 million (up 4.0%); Adjusted EBITDA of $16.9 million (up 11.9%); Operating Income of $10.8 million.
  • Cortland International: Revenue of $37.8 million (up 8.0%); Adjusted EBITDA of $4.9 million (up 36.1%); Operating Income of $0.7 million.
  • Holdings: SG&A expenses reduced to $2.5 million (down from $8.0 million in Q2 2024) due to the absence of shareholder activism expenses.
• Guidance Updates:
  • Adjusted EBITDA (Bozzetto & Cortland Combined): Re-iterated at $88–$95 million for 2025.
  • Holding Company Costs: Lowered to $9 million for 2025 (down from below $11 million).
• Corporate Actions & Settlements:
  • Tax Settlement: Reached a settlement with the Canada Revenue Agency for a tax audit of former subsidiary Aeroplan Inc., anticipating a $27 million refund. Aimia will also seek a $6 million refund from Revenu Québec.
  • Share Buybacks: Renewed normal course issuer bid to purchase up to 5.9 million common shares (10% of public float). As of August 13, 1.3 million shares had been purchased.
  • Dividends: Paid $0.7 million in preferred share dividends for Q2 2025. Declared quarterly dividends for Series 1, 3, and 4 preferred shares payable September 30, 2025.
• Balance Sheet & Liquidity:
  • Cash declined from $94.7 million (March 31, 2025) to $70.5 million (June 30, 2025) due to $9.4 million in senior debt repayments, $8.2 million in share buybacks, and interest payments.
  • Available Tax Losses: $1,085.9 million ($510.3 million operating, $575.6 million capital).

Notable Quotes

• "Our performance in Q2 reflected the progress we made against the three-step strategy we launched earlier this year to become a permanent capital vehicle... We reduced HoldCo costs to $2 million, allocated $8.2 million towards share buybacks, and took steps to determine the market value of our core holdings." — Rhys Summerton, Executive Chairman
• "Despite the emergence of economic uncertainty due to the latest round of U.S. tariffs... the performance of our core holdings through the mid-point of the year puts them on track to meeting our target for 2025 for Adjusted EBITDA on a combined basis... As a result, we are re-iterating our guidance for Adjusted EBITDA, albeit at the lower end of the range." — Steven Leonard, President and Chief Financial Officer