Company Announcements

TORONTO , Aug. 14, 2025 /CNW/ - Aimia Inc, (TSX: AIM) ("Aimia" or the "Company"), today reported its financial results for the three and six months ended June 30, 2025. All amounts are in Canadian currency unless otherwise noted.

SENIOR LEADERSHIP COMMENTARY

"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," said Rhys Summerton, Aimia's Executive Chairman.  "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.  This progress was made while we sustained the momentum of our core holdings and generated improvements to a number of key financial metrics in spite of challenging macro-economic conditions."

Mr. Summerton added, "With an increased focus on value creation, we expect our performance over time will be better measured by improvements to our balance sheet rather than traditional quarterly reporting metrics. During the transition, we anticipate supplementing our financial reporting with increased disclosure on our net asset value."

"Despite the emergence of economic uncertainty due to the latest round of U.S. tariffs against markets that Bozzetto and Cortland operate in or sell into, 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," said Steven Leonard, Aimia's President and Chief Financial Officer. "As a result, we are re-iterating our guidance for Adjusted EBITDA, albeit at the lower end of the range."

Mr. Leonard added, "Given our progress at lowering HoldCo costs to date, we are lowering our cost guidance and expect costs to be $9 million for the year exclusive of one-time expenses, down from $11 million initially forecast."

AIMIA'S Q2 2025 HIGHLIGHTS

• Reported consolidated revenue of $128.7 million, up 5.1% from $122.4 million generated in Q2 2024. The growth was driven by a number of developments including the positive impact of foreign currency fluctuations relative to the Canadian dollar, higher contributions from Cortland due to stronger customer demand for its rope and netting products, and improved results from Bozzetto's Dispersion Solutions sector. On a constant currency basis, consolidated revenue was flat when compared to last year.
• Generated consolidated Adjusted EBITDA of $19.7 million, up 60% from $12.3 million reported in Q2 2024. The $7.4 million improvement was mainly driven by cost-cutting initiatives at the Holdings segment totaling $1.4 million and the positive impact of currency fluctuation of $1 million. In Q2 2024 Aimia incurred expenses of $2.9 million related to shareholder activism and $1.2 million of advisory fees for Cortland. 
• Generated cash flow from operating activities of $9.4 million, a positive turnaround of $22.6 million from Q2 2024, which included a number of one-time expenses.
• Reported a consolidated net loss of $6.1 million or $0.08 per common share. 
• Ended Q2 2025 with cash and cash equivalents of $70.5 million.
• Received overwhelming shareholder approval at its annual general meeting for its slate of directors and strategic plan aimed at reducing holding company costs, reducing the discount of its share price to the intrinsic value of its net assets, and efficiently utilizing its loss-carry forwards to create shareholder value.
• Renewed a normal course issuer bid to purchase for cancellation up to 5.9 million of its common shares, representing 10% of its public float as at May 30, 2025.  As at August 13, Aimia had purchased for cancellation 1.3 million shares or 21.4% of allowable purchases.
• Reached settlement with the Canada Revenue Agency for a tax dispute relating to a tax audit of Aimia's former subsidiary, Aeroplan Inc.  Aimia anticipates a refund of $27 million pending final processing of the settlement agreement.  In addition, Aimia will seek a refund from Revenu Québec for the remaining $6 million portion related to the same tax audit.

HIGHLIGHTS SUBSEQUENT TO QUARTER END

• Consistent with its three-step strategy previously disclosed, Aimia initiated efforts to determine the market value of its core holdings with the support of financial advisors. The Company will provide updates as material developments unfold.

CONSOLIDATED FINANCIAL HIGHLIGHTS

This press release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three and six-month periods ended June 30, 2025, which can be accessed from SEDAR+ and www.aimia.com.

Balance Sheet and Liquidity

As at June 30, 2025, Aimia had $70.5 million in cash and cash equivalents. As at March 31, 2025, Aimia had $94.7 million of cash and cash equivalents.

The quarter over quarter decline in Aimia's liquidity was attributable to a number of developments in Q2 2025. The most notable being $9.4 million of senior debt principal repayments made by Bozzetto, of which $6.3 million were voluntary,  $8.2 million of payments for the buyback of common shares through the Corporation's normal course issuer bid, $6.4 million of interest payments related to the 2030 Notes, $5.2 million of Bozzetto interest payments on its credit facilities, and $3.7 million of investments in property, plant and equipment. The decline was partially offset by $9.4 million of cash flow from operating activities in Q2 2025 and a $2.7 million loan repayment from Kognitiv.

Of Aimia's cash and cash equivalents held at June 30, 2025, $36.9 million was held in Bozzetto, $10.2 million in Cortland International, and $23.4 million in the Holdings segment.  As at August 13, 2025, Aimia had not yet received the $27 million refund from its tax audit settlement with the Canada Revenue Agency.

Available Tax Losses

As at June 30, 2025, Aimia had $1,085.9 million of tax losses available for carry forward that may be used to reduce taxable income in future years. The total available for carry forward is comprised of $510.3 million of operating tax losses and $575.6 million of capital tax losses.

Dividends

Aimia paid $0.7 million in dividends for the second quarter ended June 30, 2025, on its three series of outstanding preferred shares. In the same period of 2024, Aimia paid $3.8 million in dividends. The year-over-year decline reflects the successful completion of the Corporation's substantial issuer bid that resulted in the purchase for cancellation 7,889,931 Preferred Shares in consideration for the 9.75% senior unsecured notes.

Aimia's Board of Directors declared quarterly dividends of $0.392563 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.431266 per Series 4 preferred share, in each case payable on September 30, 2025, to shareholders of record on September 16, 2025. Dividends paid by Aimia to Canadian residents on its preferred shares are "eligible dividends" for the purpose of the Income Tax Act (Canada) and any similar applicable provincial legislation.

SEGMENT RESULTS

Aimia is comprised of three segments: Bozzetto, Cortland International, and Holdings. Financial highlights for each segment for the three-month and six-month periods ended June 30, 2025 follow.

Bozzetto

Aimia owns a 94.1% equity stake in Bozzetto, one of the world's leading providers of sustainable specialty chemicals with applications mainly in the textile, home and personal care, geothermal, construction, and agrochemical markets. Bozzetto's management team owns the remaining 5.9%.  Subsequent to June 30, 2025, the Corporation repurchased 0.084% of equity from a member of Bozzetto's management team, increasing Aimia's total equity stake to 94.18%.

• Bozzetto generated revenue of $90.9 million in the second quarter of 2025, up 4.0% from $87.4 million generated in the comparable period for 2024. On a constant currency basis, Bozzetto's revenue decreased by $2.1 million or 2.4%. The variance is due to lower volume sold by Bozzetto's Textile Solutions sector as a result of weaker demand caused by the uncertainty of U.S. tariffs. The decline was partially offset by improved pricing and product mix for Bozzetto's Dispersion Solutions sector, which primarily serves plasterboard, agrochemical, and concrete markets outside of the U.S.
• Adjusted EBITDA for Q2 2025 was $16.9 million, which represents a margin of 18.6%. These compare to $15.1 million and 17.3%, respectively, for Q2 2024.  The year-over-year improvements were principally driven by a favourable currency impact of $1 million. On a constant currency basis, the growth was due to lower SG&A expenses of $0.9 million, offset by lower gross profit of $0.5 million.
• Bozzetto generated earnings before taxes in Q2 2025 of $7.4 million, up from a loss of $0.3 million in Q2 2024. The turnaround reflects the reduction in SG&A expenses and Bozzetto management's adaptability in the face of macroeconomic and geopolitical challenges.

Cortland International

Aimia owns a 100% equity stake in Cortland International, the rebranded combination of Tufropes and Cortland Industrial, a global leader in the manufacturing of high-performance synthetic fiber ropes and netting solutions for maritime and other industrial customers.

• Cortland generated revenue of $37.8 million for Q2 2025, up 8.0% from $35 million generated in Q2 2024. On a constant currency basis, Cortland's revenue grew $2.4 million or 6.9%. Cortland's performance in Q2 2025 was largely driven by improved market conditions and improved product mix, including higher volumes of high-performance rope sales, despite some prevailing headwinds in the market due to uncertainties related to U.S. tariffs.
• Adjusted EBITDA for Q2 2025 was $4.9 million, representing a margin of 13.0%. These compare to $3.6 million and 10.3%, respectively, for Q2 2024.  The year-over-year improvements were largely driven by higher gross profit. In Q2 2024, Cortland incurred $1.2 million of professional and advisory fees related to business transformation and operational improvement initiatives aimed at building Cortland's market share, strengthening its sales force, and launching new products.  Excluding these fees from the prior period, Adjusted EBITDA would be broadly in line with last year.

Holdings Segment

The Holdings Segment includes Aimia's investments in Clear Media Limited and Kognitiv as well as minority investments in public company securities and limited partnerships. The results of the Holdings Segment include corporate operating costs, including costs related to public company disclosure and board, executive leadership, legal, finance and administration.

• SG&A expenses for the Holdings segment in Q2 2025 were $2.5 million, down from $8.0 million incurred in Q2 2024. In Q2 2024 Aimia incurred $2.9 million of shareholder activism expenses and $0.8 million of expenses related to the termination of the Paladin agreements.  SG&A expenses for the six-months ended June 30, 2024 also included $1.6 million in termination expenses related to the departure of Aimia's former CEO and its former President.
• Adjusted EBITDA in Q2 2025 improved by $4.3 million due to absence of activism expenses of $2.9 million incurred in the prior period and a $1.4 million reduction in professional advisory fees and compensation and benefit expenses.
• Aimia anticipates that costs at the Holdings Segment in 2025 will be $9 million.

Outlook and Guidance

Aimia's performance through the mid-point of the year tracks favourably against its targets announced for 2025. As a result, the Company has re-iterated its guidance for Adjusted EBITDA for its core holdings on a combined basis for 2025, albeit at the lower end of the range. Through June 30, 2025, Aimia's core holdings generated $44.2 million on a combined basis. Aimia will continue to closely monitor global trade developments and their impact on the performance of its core holdings.

In light of the Company's progress at reducing HoldCo costs, Aimia has lowered its guidance for Holding Company costs for 2025 from below $11 million to $9 million. Through June 30, 2025 Holding Company costs were $4.5 million, net of one-time related professional fees associated with the settlement of the tax audit.  The guidance is exclusive of one-time costs.

Quarterly Conference Call and Audio Webcast Information

Aimia will host a conference call to discuss its second quarter 2025 financial results at 8:30 am ET on August 14. The call will be webcast at the following URL link https://app.webinar.net/L4jZzB4MXEG.  Interested parties can listen to conference call by dialing 1 888 699 1199 or 1 416 945 7677 (internationally). A slide presentation intended for simultaneous viewing with the conference call and an archived audio webcast will be available for 90 days following the original broadcast available at: https://www.aimia.com/investor-relations/events-presentations/.

About Aimia

Aimia Inc. (TSX: AIM) is a diversified company focused on enhancing the value of its two core global businesses, Bozzetto, a sustainable specialty chemicals company, and Cortland International, a rope and netting solutions company. Headquartered in Toronto, Aimia's priorities include reducing its holding company costs, reducing the discount of its share price to the intrinsic value of its net assets and efficiently utilizing its loss carry-forwards to create shareholder value. For more information about Aimia, visit www.aimia.com.

Non-GAAP Financial Measures and Reconciliation to Comparable GAAP Measures

"GAAP" means Canadian Generally Accepted Accounting Principles (which are in accordance with the International Financial Reporting Standards).

Adjusted EBITDA

Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, does not have a standardized meaning and is not directly comparable to similar measures used by other issuers. Adjusted EBITDA should not be used as an exclusive measure of cash flow because it does not account for the impact of working capital growth, capital expenditures, debt repayments and other sources and uses of cash, which are disclosed in the statements of cash flows. A reconciliation to operating income (loss) is provided.

Adjusted EBITDA is used by management to evaluate the performance of its Bozzetto, Cortland International and Holdings segments. Management believes Adjusted EBITDA assists investors in comparing Aimia's performance on a consistent basis excluding depreciation and amortization, impairment charges related to non-financial assets and share-based compensation, which are non-cash in nature and can vary significantly depending on accounting methods as well as non-operating factors such as historical cost. Aimia's management believes that the exclusion of business acquisition and/or disposal related expenses assists investors by excluding expenses that are not representative of the run-rate cost structure of its operations.

Adjusted EBITDA is operating income (loss) adjusted to exclude depreciation, amortization, impairment charges related to non-financial assets, cost of sales expense related to inventory fair value step up resulting from purchase price allocation, share-based compensation, expenses related to Cortland International's long-term management incentive plan, gain/loss from the disposal of manufacturing property and land, costs related to the termination of the Paladin agreements, as well as transaction costs related to business acquisitions.

For a reconciliation of Adjusted EBITDA to operating income (loss), please refer to the tables below.

For a reconciliation of Holdco costs to the Holdings segment's Selling, general and administrative expenses, please refer to the table below.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-ling statements"), which are based upon Aimia's current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions.

Forward-looking statements in this press release include, but are not limited to, Aimia's future growth and value creation; Aimia's reduction in holding company costs; monetization of Aimia's core or non-core assets; Aimia's possibility to make  controlling stake investments and the use of Aimia's tax loss carry forwards; the duration of the transition period; Aimia's increased disclosure on net asset value; the impact of tariffs on Aimia's outlook and guidance; Aimia's refund of $27 million by the Canada Revenue Agency pending final processing of the settlement agreement and Aimia's guidance for 2025; and Aimia's refund from Revenu Québec.

Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to the Company can be found in Aimia's current Management's Discussion and Analysis and Annual Information Form, each of which have been or will be filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aimia disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Aimia Inc.