Aimia (TSE:AIM) Issues Quarterly Earnings Results

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

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 Price Performance

AIM remained flat at C$2.60 during trading hours on Friday. The company had a trading volume of 44,807 shares, compared to its average volume of 48,696. The company has a debt-to-equity ratio of 39.18, a quick ratio of 83.33 and a current ratio of 2.55. Aimia has a 52-week low of C$2.48 and a 52-week high of C$3.44. The stock has a 50 day simple moving average of C$2.64 and a 200-day simple moving average of C$2.77. The firm has a market capitalization of C$229.14 million, a PE ratio of 9.29, a price-to-earnings-growth ratio of -2.30 and a beta of 0.31.

Insiders Place Their Bets

In other Aimia news, Director Robert Matthew Feingold bought 10,000 shares of the business’s stock in a transaction on Friday, August 14th. The shares were purchased at an average price of C$2.80 per share, with a total value of C$28,000.00. Following the completion of the acquisition, the director directly owned 160,362 shares of the company’s stock, valued at approximately C$449,013.60. The trade was a 6.65% increase in their position. 3.34% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Separately, Jefferies Financial Group set a C$3.75 price target 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 assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of C$3.38.

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.