Aimia (TSE:AIM) Releases Quarterly Earnings Results

Aimia (TSE:AIM) posted its earnings results on Wednesday. The company reported C$0.02 earnings per share (EPS) for the quarter, FiscalAI reports. Aimia had a negative return on equity of 4.81% and a negative net margin of 3.21%.The firm had revenue of C$32.70 million for the quarter.

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

• Aimia received all required regulatory approvals for the Bozzetto divestiture and expects the deal to close by the end of May, with about CAD 267 million in net proceeds.
• Management said the Bozzetto proceeds will help the company retire senior notes and then begin deploying capital into undervalued investment opportunities, aiming to build Aimia into a permanent capital vehicle.
• Cortland posted weaker Q1 results, with revenue down 19.7% year over year and adjusted EBITDA down 16.7%, pressured by lower marine/shipping volumes and geopolitical disruption in the Middle East.
• Aimia appointed Wolfgang Wandl as Cortland CEO, and management expects him to improve free cash flow, strengthen customer relationships, and expand the business through global growth and selective acquisitions.
• Despite Q1 cash usage, Aimia ended the quarter with CAD 100.3 million in consolidated cash, and management also plans to renew its normal course issuer bid with authority to buy back about 5 million shares over the next 12 months.

Aimia Price Performance

Shares of AIM stock remained flat at C$2.67 during mid-day trading on Wednesday. 81,309 shares of the company’s stock traded hands, compared to its average volume of 51,854. Aimia has a 1-year low of C$2.60 and a 1-year high of C$3.44. The stock’s 50-day moving average price is C$2.79 and its two-hundred day moving average price is C$2.84. The company has a debt-to-equity ratio of 96.18, a quick ratio of 83.33 and a current ratio of 2.89. The stock has a market capitalization of C$237.68 million, a PE ratio of 7.03, a P/E/G ratio of -2.30 and a beta of 0.03.

Analyst Upgrades and Downgrades

Separately, TD Securities cut Aimia from a “buy” rating to a “hold” rating and dropped their price objective for the company from C$3.75 to C$3.00 in a research report on Tuesday, February 10th. One analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of C$3.00.

Insider Transactions at Aimia

In other Aimia news, Director Thomas (Tom) Little bought 20,100 shares of Aimia stock in a transaction that occurred on Thursday, March 26th. The stock was purchased at an average price of C$2.70 per share, with a total value of C$54,270.00. Following the completion of the acquisition, the director directly owned 231,600 shares in the company, valued at approximately C$625,320. This trade represents a 9.50% increase in their position. In the last ninety days, insiders acquired 121,600 shares of company stock valued at $338,624. Company insiders own 3.34% of the company’s stock.

About Aimia

Aimia Inc (TSX: AIM) is a holding company that makes long-term investments in private and public businesses through controlling or minority stakes. We target companies with durable economic advantages evidenced by a track record of substantial free cash flow generation over complete business cycles, strong growth prospects, and guided by strong, experienced management teams. Headquartered in Toronto, Canada, Aimia is positioned to invest in any sector, wherever a suitable opportunity can be identified worldwide.