TORONTO, Aug. 13, 2024 /CNW/ - Aimia Inc. (TSX:AIM) ("Aimia" or the "Company"), today reported its financial results for the three and six months ended June 30, 2024. All amounts are in Canadian currency unless otherwise noted. SENIOR LEADERSHIP COMMENTARY "Consistent with the commitments we made earlier in the year, we focused our efforts in the second quarter on a two-pronged strategy aimed at improving the operational performance of each of core holdings and unlocking shareholder value," said Tom Finke, Aimia's Executive Chairman. "Our results in Q2, as reflected by our improved adjusted EBITDA, receipt of the $32.9 million PLM earn-out, and the successful launch of a normal course issuer bid, demonstrate our ability to execute against our plans." Mr. Finke added, "In the second half of the year, we anticipate accelerating the efforts of the recently formed Strategic Review Committee, chaired by Jamie Scarlett, to roll-out specific plans for returning capital to shareholders in a responsible and expeditious manner. Currently, our options include the potential sale of Aimia's core holdings, the potential spinoff of core holdings, the potential recapitalization of the Holdco or core holdings or the potential merger of core holdings with other entities, which may enable the use of the Company's cumulative tax losses.  We look forward to providing updates on our progress." "Despite some macro-economic headwinds, we are re-iterating our guidance for 2024 given our performance year-to-date," said Steven Leonard, Aimia's President and CFO. "In particular, we anticipate generating adjusted EBITDA in 2024 for our core businesses in the range of $80 to $85 million on a combined basis, albeit at the lower end of the scale. We also anticipate corporate operating costs for the year to be approximately $13 million, exclusive of one-time expenses." AIMIA'S Q2 2024 HIGHLIGHTS Reported consolidated revenue of $122.4 million, up from $122.1 million generated in Q1 2024. Second quarter results sustained the momentum established at the Company's core holdings since the start of 2024 but were impacted by several macro-economic factors, including global shipping disruptions and the effects of high inflation that softened customer demand. Reported consolidated Adjusted EBITDA of $12.3 million, up 83.6% from $6.7 million generated in Q1 2024. The improvement was driven by a number of developments, including the reduction in selling, general and administrative (SG&A) expenses (excluding share-based compensation and costs associated the termination of the Paladin agreements) at the Holdings segment by $6.4 million. Reported a consolidated net loss of $4.6 million or $0.10 per common share. Ended Q2 with a total liquidity of $114.6 million, comprised of $112.8 million in cash and cash equivalents and $1.8 million of marketable securities. Launched a normal course issuer bid to purchase for cancellation up to 7,009,622 common shares, or 10% of the Company's public float as at May 28, 2024. As at August 12, 2024, Aimia had purchased for cancellation 1,778,800 common shares or 25.4% of allowable purchases. Received $32.9 million in cash related to the earn-out associated with the Company's divestiture of its 48.9 percent equity stake in PLM Loyalty to Aeromexico in 2022. Received overwhelming shareholder approval at its annual general meeting for its slate of directors and strategic plan to unlock value and return capital to investors. HIGHLIGHTS SUBSEQUENT TO QUARTER END Announced leadership appointments aimed at fast-tracking the rollout of the Company's strategy endorsed by shareholders at Aimia's annual general meeting, naming James Scarlett as Chair of the recently formed Strategic Review Committee and Steven Leonard as President and Chief Financial Officer. Aimia's strategy and near-term priorities are focused on unlocking value and returning capital to investors in a responsible and expeditious manner. Entered into an agreement with Milkwood Capital (UK) Ltd. ("Milkwood") to purchase for cancellation 1.3 million common shares owned by Milkwood. The common shares were purchased at price of $2.53 per common share, representing an approximate aggregate price of $3.3 million. CONSOLIDATED FINANCIAL HIGHLIGHTS Aimia (in millions of dollars except for margin and per share data) Q2 2024 Q1 2024 Q2 2023 Revenue 122.4 122.1 74.8 Gross Profit 32.5 34.6 19.1 Gross Margin 26.6 % 28.3 % 25.5 % Operating Expenses (38.5) (35.0) (31.8) Operating Income (loss) (6.0) (0.4) (12.7) Adjusted EBITDA1 12.3 6.7 5.5 Net earnings (loss) (4.6) (4.2) (74.5) Earnings (loss) per share diluted (0.10) (0.09) (0.93) ____________________________ 1 Adjusted EBITDA is a non-GAAP measure. Aimia's financial results for the three months ended June 30, 2024, reflect the acquisitions of Bozzetto and Cortland completed in 2023, and the acquisition of StarChem completed on January 2, 2024. Comparisons to the Company's performance in the comparable period of 2023 may not be meaningful. This quarterly earnings release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three and six months ended June 30, 2024, which can be accessed from SEDAR+ and www.aimia.com. Balance Sheet and LiquidityAs at June 30, 2024, Aimia had a total liquidity of $114.6 million, which was comprised of $112.8 million in cash and cash equivalents and $1.8 million in marketable securities.  As at March 31, 2024, Aimia had total liquidity of $ 111.2 million, which was comprised of $98.2 million in cash and cash equivalents and $13 million in marketable securities. The quarter over quarter increase in Aimia's liquidity was attributable to a number of developments in Q2, including receipt of a $32.9 million earn-out relating to the Corporation's PLM divestiture.  The increase in liquidity was partially offset by a $10.9 million cash payment relating to the termination of carried interest and management service agreements with Paladin, $3.8 million dividend payment for preferred shareholders, $3.4 million of expenses relating to shareholder activism, and almost $14 million of Bozzetto-related payments, including a $7.2 million interest payment, a senior loan repayment of $4.2 million, and a $2.3 million payment related to the StarChem acquisition. Of Aimia's cash and cash equivalents held at June 30, 2024, $32.7 million was held in Bozzetto, $11 million in Cortland International, and $69.1 million in the Holdings segment. Cash Flow from OperationsAimia used $13.2 million of cash in operating activities on a consolidated basis in the second quarter of 2024. The amount includes a cash payment $10.9 million related to the termination of agreements with Paladin, $3.4 million of expenses paid related to shareholder activism, including litigation settlement agreements, and $1.5 million of expenses related to acquisition activities. Available Tax LossesAs at June 30, 2024, Aimia had $766.1 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 $474 million of operating tax losses and $292.1 million of capital tax losses. DividendsAimia paid $3.8 million in dividends for the second quarter ended June 30, 2024, on its three series of outstanding preferred shares. Aimia's Board of Directors declared quarterly dividends of $0.300125 per Series 1 preferred share,  $0.485813 per Series 3 preferred share, and $0.570098 per Series 4 preferred share, in each case payable on September 30, 2024, to shareholders of record on September 16, 2024. With the reset of the annual dividend rate for Series 3 Preferred shares and the introduction of Cumulative Floating Rate Series 4 Preferred Shares, Aimia's quarterly dividend payments increased by approximately $600,000 beginning in Q2 2024. SEGMENT RESULTSAimia is comprised of three segments: Bozzetto, Cortland International, and Holdings.  Financial highlights for each segment for the three-month period ended June 30, 2024, follow. BozzettoAimia 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%. The Bozzetto segment includes results since Bozzetto's acquisition on May 9, 2023, and the results since the acquisition of 65% of StarChem on January 2, 2024.  As a result, comparisons to the comparable period of 2023 may not be meaningful. Bozzetto2 (in millions of dollars expect for margin data) Q2 2024 Q1 2024 Q2 2023 Revenue 87.4 88.1 45.9 Gross Profit 25.6