Aimia (TSE:AIM) Announces Earnings Results

Aimia (TSE:AIM) issued its earnings results on Friday. The company reported C($0.17) EPS for the quarter, FiscalAI reports. The company had revenue of C$45.60 million during the quarter. Aimia had a return on equity of 1.45% and a net margin of 1.53%.

Here are the key takeaways from Aimia’s conference call:

• Cortland revenue grew 21.3% year over year to CAD 45.6 million, with gross profit up 25.3% and margin improving to 22.8%. Adjusted EBITDA edged up to CAD 5.7 million from CAD 5.5 million as higher freight, selling and compensation costs offset some gains; management cited surcharges and stronger demand in select sectors as contributors to revenue growth.
• Aimia reported a quarterly net loss, largely reflecting an CAD 8.3 million unrealized write-down on Clear Media amid a landlord dispute and CAD 4.8 million in deferred financing costs tied to redeeming its senior notes. CAD 4 million of the Clear Media investment remained on the balance sheet.
• Aimia redeemed CAD 131.4 million of senior notes, a move management says will save about CAD 13 million in annual interest costs. Consolidated cash was CAD 152 million at quarter-end, after the redemption and CAD 15.5 million of investment purchases.
• Aimia invested CAD 15.5 million in public companies during the quarter and said its new investment portfolio generated CAD 1.9 million in gains; management emphasized that quarterly results may fluctuate and there are no guarantees its positions will succeed. The company is prioritizing acquisitions to build cash-generating businesses and eventually use its tax losses, while treating share buybacks as a secondary use of capital.

Aimia Stock Performance

AIM stock remained flat at C$2.60 on Friday. The company had a trading volume of 44,807 shares, compared to its average volume of 48,696. Aimia has a 12 month low of C$2.48 and a 12 month high of C$3.44. The company has a current ratio of 2.55, a quick ratio of 83.33 and a debt-to-equity ratio of 39.18. The stock has a market capitalization of C$229.14 million, a price-to-earnings ratio of 9.29, a PEG ratio of -2.30 and a beta of 0.31. The company has a 50-day moving average price of C$2.64 and a two-hundred day moving average price of C$2.77.

Wall Street Analyst Weigh In

Separately, Jefferies Financial Group set a C$3.75 target price on Aimia and gave the stock a “buy” rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of C$3.38.

Insider Activity

In related news, Director Robert Matthew Feingold acquired 10,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were purchased at an average cost of C$2.80 per share, for a total transaction of C$28,000.00. Following the acquisition, the director owned 160,362 shares in the company, valued at C$449,013.60. The trade was a 6.65% increase in their position. Company insiders own 3.34% of the company’s stock.

Aimia Company Profile

Aimia Inc (TSX: AIM; JSE: AII) is a diversified conglomerate focused on enhancing the value of its holdings. Headquartered in Toronto, Aimia’s priorities include increasing its intrinsic value, reducing holding company costs, reducing the discount of its share price to the intrinsic value of its businesses, and redeploying capital to make investments in undervalued companies.