Latest news with #Holdco
Cision Canada
5 days ago
- Business
- Cision Canada
Great Northern Energy Metals Announce Amendment Agreements to Nuvemco Option Agreement
CSE: GNEM VANCOUVER, BC, June 4, 2025 /CNW/ - Great Northern Energy Metals Inc. (" GNEM" or the " Company") (CSE: GNEM) announces that it has amended the option agreement dated August 20, 2024 (the " Option Agreement") with Ventura Uranium LLC (dba Nuvemco, LLC) (" Nuvemco"), 1494402 B.C. Ltd. (the " Optionee") and Paul Szilagyi (" PS", and together with Nuvemco, the " Optionors"). The Optionee's obligations under the Option Agreement were assigned to GNEM pursuant to an assignment an assumption agreement dated May 8, 2025 (the " Assignment Agreement"). Under the terms of the Option Agreement, the Company has the exclusive right to acquire up to a 100% interest in a Colorado-based uranium project (the " Property") through a two-stage option to acquire all of the membership interests in a Colorado limited liability company, NUV2C, LLC (" Holdco"), which holds legal and beneficial title to the Property. Nuvemco currently owns 99% of Holdco, and PS owns the remaining 1% of Holdco. GNEM may exercise the first option and earn a 49% interest in Holdco in exchange for: cash payments to Nuvemco totaling USD$1,750,000 over 17 months (with the first such payment being the " First Pubco Cash Payment"); and the issuance of common shares in the capital of GNEM (the " GNEM Shares") to Nuvemco and/or its designees a number of GNEM Shares that is equal to 16.66% of the issued and outstanding GNEM Shares, calculated on a post-issuance, fully diluted basis at the time of issuance (with the first such issuance being the " First Option Share Payment"). Following the exercise of the first option, the Company may exercise the second option and acquire the remaining 51% interest in Holdco in exchange for the issuance of GNEM Shares to Nuvemco and/or its designees representing an additional 23.33% of the Company on a post-issuance, fully diluted basis. GNEM and the Optionors have entered into amendment agreements dated May 15, 2025 (the " First Amendment Agreement") and June 2, 2025 (the " Second Amendment Agreement", and together with the First Amendment Agreement, the " Amendment Agreements"). The First Amendment Agreement extended the date for the First Pubco Cash Payment and the First Option Share Payment to June 4, 2025. The Second Amendment Agreement has further extended the date for the First Pubco Cash Payment and the First Option Share Payment to June 26, 2025. Except as amended by the Amendment Agreements, the Option Agreement and Assignment Agreement remain unamended and continue in full force and effect. Please see the Company's news releases dated May 9, 2025 and June 2, 2025. The completion of the transactions contemplated therein is subject to approval of the Canadian Securities Exchange (the " CSE"). None of the securities to be issued under the Option Agreement have been or will be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Great Northern Energy Metals Inc. GNEM is a Canadian-based exploration and development company focused on securing and developing critical energy metals, including uranium. The Company's mission is to support the global transition to clean energy through responsible resource development. Cautionary Note Regarding Forward-Looking Statements This news release includes certain statements that may be deemed "forward-looking statements", including but not limited to: the payments to be made under the Option Agreement, the development potential of the Property, approval of the CSE, and GNEM's strategic objectives. All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. SOURCE Great Northern Energy Metals Inc.
Yahoo
5 days ago
- Business
- Yahoo
Great Northern Energy Metals Announce Amendment Agreements to Nuvemco Option Agreement
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CSE: GNEM VANCOUVER, BC, June 4, 2025 /CNW/ - Great Northern Energy Metals Inc. ("GNEM" or the "Company") (CSE: GNEM) announces that it has amended the option agreement dated August 20, 2024 (the "Option Agreement") with Ventura Uranium LLC (dba Nuvemco, LLC) ("Nuvemco"), 1494402 B.C. Ltd. (the "Optionee") and Paul Szilagyi ("PS", and together with Nuvemco, the "Optionors"). The Optionee's obligations under the Option Agreement were assigned to GNEM pursuant to an assignment an assumption agreement dated May 8, 2025 (the "Assignment Agreement"). Under the terms of the Option Agreement, the Company has the exclusive right to acquire up to a 100% interest in a Colorado-based uranium project (the "Property") through a two-stage option to acquire all of the membership interests in a Colorado limited liability company, NUV2C, LLC ("Holdco"), which holds legal and beneficial title to the Property. Nuvemco currently owns 99% of Holdco, and PS owns the remaining 1% of Holdco. GNEM may exercise the first option and earn a 49% interest in Holdco in exchange for: cash payments to Nuvemco totaling USD$1,750,000 over 17 months (with the first such payment being the "First Pubco Cash Payment"); and the issuance of common shares in the capital of GNEM (the "GNEM Shares") to Nuvemco and/or its designees a number of GNEM Shares that is equal to 16.66% of the issued and outstanding GNEM Shares, calculated on a post-issuance, fully diluted basis at the time of issuance (with the first such issuance being the "First Option Share Payment"). Following the exercise of the first option, the Company may exercise the second option and acquire the remaining 51% interest in Holdco in exchange for the issuance of GNEM Shares to Nuvemco and/or its designees representing an additional 23.33% of the Company on a post-issuance, fully diluted basis. GNEM and the Optionors have entered into amendment agreements dated May 15, 2025 (the "First Amendment Agreement") and June 2, 2025 (the "Second Amendment Agreement", and together with the First Amendment Agreement, the "Amendment Agreements"). The First Amendment Agreement extended the date for the First Pubco Cash Payment and the First Option Share Payment to June 4, 2025. The Second Amendment Agreement has further extended the date for the First Pubco Cash Payment and the First Option Share Payment to June 26, 2025. Except as amended by the Amendment Agreements, the Option Agreement and Assignment Agreement remain unamended and continue in full force and effect. Please see the Company's news releases dated May 9, 2025 and June 2, 2025. The completion of the transactions contemplated therein is subject to approval of the Canadian Securities Exchange (the "CSE"). None of the securities to be issued under the Option Agreement have been or will be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Great Northern Energy Metals Inc. GNEM is a Canadian-based exploration and development company focused on securing and developing critical energy metals, including uranium. The Company's mission is to support the global transition to clean energy through responsible resource development. Cautionary Note Regarding Forward-Looking Statements This news release includes certain statements that may be deemed "forward-looking statements", including but not limited to: the payments to be made under the Option Agreement, the development potential of the Property, approval of the CSE, and GNEM's strategic objectives. All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. SOURCE Great Northern Energy Metals Inc. View original content: Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
AIMIA REPORTS FIRST QUARTER 2025 RESULTS
TORONTO, May 13, 2025 /CNW/ - Aimia Inc, (TSX: AIM) ("Aimia" or the "Company"), today reported its financial results for the three months ended March 31, 2025. All amounts are in Canadian currency unless otherwise noted. SENIOR LEADERSHIP COMMENTARY "The improved performance of our core holdings combined with reduced Holdco costs and the positive impact of foreign currency fluctuations contributed to Aimia's solid first quarter results," said Rhys Summerton, Aimia's Executive Chairman. "In particular, consolidated revenue grew to $129.8 million, the highest quarterly total since we completed the acquisitions of Bozzetto and Cortland, while consolidated Adjusted EBITDA improved to $19.7 million due largely to the reduction of Holdco expenses by $10.1 million from last year." Mr. Summerton added, "With a sharper focus on reducing Holdco costs, we expect to build on our first quarter performance through 2025 and beyond. Our near-term focus will also build on recent efforts at enhancing share value. Most notably, we plan to renew our share buyback in June, take measures to reduce the discount of our share price relative to the value of our assets, find ways to efficiently utilize our tax loss carry-forwards, and optimize our corporate structure to become a permanent capital vehicle." "Our core holdings combined to generate $22.4 million of adjusted EBITDA and our Holdco costs were $2.7 million, putting us in line to reach our guidance for the year," said Steven Leonard, Aimia's President and Chief Financial Officer. "While the threat of tariffs has introduced new uncertainty to global markets, our core holdings have largely been unaffected to date and the underlying assumptions for their expected performance in 2025 remain in effect. As a result, we continue to expect to generate adjusted EBITDA in 2025 in the range of $88 to $95 million for our core holdings on a combined basis and forecast Holdco costs to be below $11 million. We will continue to monitor macro-economic developments and the impact of tariffs on the performance of our core holdings closely and will adjust our outlook if warranted." AIMIA'S Q1 2025 HIGHLIGHTS Reported consolidated revenue of $129.8 million, up 6.3% from $122.1 million generated in Q1 2024. The growth was driven by several factors including the positive impact of foreign currency fluctuations relative to the Canadian dollar and higher contributions from Cortland due to improved customer demand. On a constant currency basis, consolidated revenue was up 2%. Generated consolidated Adjusted EBITDA of $19.7 million, up from $6.7 million reported in Q1 2024. The gain was driven by a number of developments, including improved performance by the Corporation's core holdings and by the $10.1 million reduction in selling, general and administrative (SG&A) expenses at the Holdings Segment, which was largely comprised of $6.9 million of shareholder activism costs and a $1.6 million expense related to termination benefits for former executives. Generated cash flow from operating activities of $12.2 million, a turnaround of $18.4 million from Q1 2024. Reported consolidated net earnings of $0.4 million compared to a net loss of $4.5 million for Q1 2024. Generated net earnings per common share of $0.55 due to the $53.8 million net gain from the substantial issuer bid completed in February 2025. Ended Q1 2025 with cash and cash equivalents of $94.7 million. Named Rhys Summerton, who brings 20-years of experience in the investment industry, as Executive Chairman following outgoing Executive Chairman Tom Finke's decision to retire. The transition reflects Aimia's commitment to succession planning and commitment to good governance. In addition to Mr. Summerton, Aimia's Board of Directors is currently comprised of Robert Feingold, Steven Leonard, Thomas Little, and Asif Seemab, all of whom will stand for nomination as Directors at the Company's upcoming annual general meeting of shareholders slated for May 21, 2025 in Toronto. Completed a substantial issuer bid to purchase for cancellation all of the Company's preferred shares in consideration for 9.75% senior unsecured notes. A total of 7,889,931 Preferred Shares were tendered and the Company issued $142.6 million principal amount of unsecured notes in consideration. The transaction will generate approximately $5.1 million in annual cash savings when comparing the annual preferred dividends and Part VI.1 tax to the annual cash coupon interest payments. CONSOLIDATED FINANCIAL HIGHLIGHTS Aimia(in $millions except for margin and per share data) Q1 2025 Q1 2024 Change Revenue 129.8 122.1 6.3 % Gross Profit 35.6 34.3 3.8 % Gross Margin 27.4 % 28.1 % (0.7) pp Selling, general and administrative expenses (25.5) (35.0) 27.1 % Operating Income (loss) 10.1 (0.7) NM Adjusted EBITDA1 19.7 6.7 194 % Net earnings (loss) 0.4 (4.5) 108.9 % Earnings (loss) per share 0.55 (0.09) NM _______________________________ 1 Adjusted EBITDA is a non-GAAP measure. This press release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three-month period ended March 31, 2025, which can be accessed from SEDAR+ and Balance Sheet and Liquidity As at March 31, 2025, Aimia had $94.7 million in cash and cash equivalents. As at December 31, 2024, Aimia had total liquidity of $95.5 million, comprised of $95.4 million in cash and cash equivalents and $0.1 million of marketable securities. The modest quarter over quarter decline in Aimia's liquidity was attributable to a number of developments in Q1 2025. The most notable being $3.8 million of investments in property, plant and equipment, $3.8 million of transaction costs related to the substantial issuer bid, $1.9 million of principal repayments made by Bozzetto on its credit facilities, and a $1.6 million payment for the buyback of common shares through the Corporation's normal course issuer bid. The decline was largely offset by $12.2 million of cash flow from operating activities in Q1 2025. Of Aimia's cash and cash equivalents held at March 31, 2025, $47.5 million was held in Bozzetto, $11.7 million in Cortland International, and $35.5 million in the Holdings segment. Available Tax Losses As at March 31, 2025, Aimia had $1,010.3 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 $511.3 million of operating tax losses and $499 million of capital tax losses. Dividends Aimia paid $0.7 million in dividends for the first quarter ended March 31, 2025, on its three series of outstanding preferred shares. In the same period of 2024, Aimia paid $3.2 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 declared quarterly dividends of $0.392563 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.438670 per Series 4 preferred share, in each case payable on June 30, 2025, to shareholders of record on June 16, 2025. SEGMENT RESULTS Aimia is comprised of three segments: Bozzetto, Cortland International, and Holdings. Financial highlights for each segment for the three-month period March 31, 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%. Bozzetto(in $ millions except for margin data) Q1 2025 Q1 2024 Change Revenue 89.1 88.1 1.1 % Gross Profit 26.1 26.5 (1.5) % Gross Margin 29.3 % 30.1 % (0.8) pp Selling, general and administrative expenses (14.0) (17.1) 18.1 % Operating Income (loss) 12.1 9.4 28.7 % Earnings (loss) before income taxes 7.5 5.6 33.9 % Adjusted EBITDA2 17.0 15.5 9.7 % Adjusted EBITDA margin 19.1 % 17.6 % 1.5 pp _____________________________ 2 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Bozzetto generated revenue of $89.1 million in the first quarter of 2025, up 1.1% from $88.1 million generated in the comparable period for 2024. On a constant currency basis, the variance represents a decrease of $1.8 million, or 2%, due to lower volume sold by Bozzetto's Textile Solutions sector as a result of weaker demand. The decline was partially offset by improved pricing and product mix for Bozzetto's Dispersion Solutions sector. Adjusted EBITDA for Q1 2025 was $17 million, which represents a margin of 19.1%. These compare to $15.5 million and 17.6%, respectively, for Q1 2024. The year-over-year improvements are principally due to the decrease in SG&A expenses. Bozzetto generated earnings before taxes in Q1 2025 of $7.5 million, up 33.9% from $5.6 million generated in Q1 2024. The increase reflects developments already cited. Bozzetto's results for Q1 2025 and the comparable period of 2024 each include the contributions from Starchem, which was acquired on January 2, 2024. 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. The companies were acquired in March and July 2023, respectively. Cortland International(in millions of dollars except for margin data) Q1 2025 Q1 2024 Change Revenue 40.7 34.0 19.7 % Gross Profit 9.5 7.8 21.8 % Gross Margin 23.3 % 22.9 % 0.5 pp Selling, general and administrative expenses (8.1) (7.0) (15.7) % Operating Income (loss) 1.4 0.8 75.0 % Earnings (loss) before taxes (1.0) (1.5) 33.3 % Adjusted EBITDA3 5.4 4.0 35.0 % Adjusted EBITDA Margin 13.3 % 11.8 % 1.5 pp ______________________________ 3 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Cortland generated revenue of $40.7 million for Q1 2025, up 19.7% from $34 million generated in Q1 2024. On a constant currency basis, the variance represents an increase of $4.3 million, or 12.6%, driven mainly by increased market demand, particularly among customers within the fishing and aquaculture industry and by improved product mix. Adjusted EBITDA for Q1 2025 was $5.4 million, representing a margin of 13.3%. These compare to $4 million and 11.8%, respectively, for Q1 2024. The year-over-year improvements were largely driven by higher gross profit and by the impact of business transformation and operational improvement initiatives completed in prior periods aimed at building Cortland's market share, strengthening its sales force, and launching new products. Cortland made senior leadership team appointments, naming Wolfgang Wandl as Executive Chairman and Brian Boyce as Chief Financial Officer. The appointments support Cortland's commitment to improving operational efficiencies and results. 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. Holdings(in millions of dollars) Q1 2025 Q1 2024 Change Selling, general and administrative expenses (3.4) (10.9) 68.8 % Earnings (loss) before taxes (3.6) (5.8) 37.9 % Adjusted EBITDA4 (2.7) (12.8) 78.9 % _____________________________ 4 Adjusted EBITDA is a non-GAAP measure. SG&A expenses for the Holdings segment in Q1 2025 were $3.4 million, down from $10.9 million incurred in Q1 2024. In Q1 2024 Aimia incurred $6.9 million of shareholder activism expenses including settlement agreements. SG&A expenses in Q1 2024 also included $1.6 million in termination benefits related to the departure of Aimia's former CEO and its former President. A further reduction in SG&A expenses of $1.6 million was offset by an increase in stock-based compensation of $2.6 million, which included a reduction in the unvested deferred share unit liability related to executives departed in 2024. Adjusted EBITDA in Q1 2025 improved by $10.1 million due to reduced SG&A expenses noted above, excluding stock-based compensation. Aimia anticipates that costs at the Holdings Segment in 2025 will be below $11 million. Outlook and Guidance Aimia's guidance for 2025 is based on the expected performance of Company's core holdings and ongoing cost-cutting initiatives at the Holding Company. To date, the imposition of US tariffs has had limited impact on Aimia's core holdings. While the outlook remains fraught with uncertainty given the fluid dynamics of global trade, the underlying conditions for Aimia's guidance for 2025 remain in effect. As a result, Aimia has re-iterated its guidance for the year. The Corporation will continue to closely monitor global trade developments and their impact on the performance of its core holdings. The Company's forecast for adjusted EBITDA for 2025 for the combined Bozzetto and Cortland businesses represents an expected growth of 13.8% from the mid-point of guidance relative to results for 2024. (in millions of dollars) Guidance for 2025 Year to Date Results Adjusted EBITDA at Bozzetto and Cortland on a Combined Basis5 $88 - $95 $22.4 Holding Company Costs Below $11 $2.7 _____________________________ 5 Adjusted EBITDA is a non-GAAP measure. Quarterly Conference Call and Audio Webcast Information Aimia will host a conference call to discuss its first quarter 2025 financial results at 8:30 am ET on May 13. The call will be webcast at the following URL link 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: 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 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. Bozzetto (in millions of Canadian dollars) Q1 2025 Q1 2024 Reconciliation of Adjusted EBITDA Operating income (loss) 12.1 9.4 Depreciation and amortization 6.0 5.4 Transaction related (income) costs (1.1) 0.7 Adjusted EBITDA 17.0 15.5 Adjusted EBITDA Margin 19.1 % 17.6 % Cortland International (in millions of Canadian dollars) Q1 2025 Q1 2024 Reconciliation of Adjusted EBITDA Operating income (loss) 1.4 0.8 Depreciation and amortization 3.0 3.0 Long-term management incentive plan 1.0 — Transaction and transition related costs — 0.2 Adjusted EBITDA 5.4 4.0 Adjusted EBITDA Margin 13.3 % 11.8 % Holdings (in millions of Canadian dollars) Q1 2025 Q1 2024 Reconciliation of Adjusted EBITDA Operating income (loss) (3.4) (10.9) Share-based compensation expense (reversal) 0.7 (1.9) Adjusted EBITDA (2.7) (12.8) For a reconciliation of Holdco costs to the Holdings segment's Selling, general and administrative expenses, please refer to the tables below. Holdings (in millions of Canadian dollars) Three Months Ended March 31, 2025 Holdings segment Selling, general and administrative expenses 3.4 Share-based compensation (expense) reversal (0.7) Holdco Costs 2.7 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; the impact of tariffs on Aimia's outlook and guidance; Aimia's approach with respect to its NCIB and the regulatory approval of Aimia's NCIB program, Aimia's guidance for 2025, and related to Bozzetto's and Cortland's combined Adjusted EBITDA. 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 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. View original content: Sign in to access your portfolio
Cision Canada
13-05-2025
- Business
- Cision Canada
AIMIA REPORTS FIRST QUARTER 2025 RESULTS
TORONTO, May 13, 2025 /CNW/ - Aimia Inc, (TSX: AIM) ("Aimia" or the "Company"), today reported its financial results for the three months ended March 31, 2025. All amounts are in Canadian currency unless otherwise noted. "The improved performance of our core holdings combined with reduced Holdco costs and the positive impact of foreign currency fluctuations contributed to Aimia's solid first quarter results," said Rhys Summerton, Aimia's Executive Chairman. "In particular, consolidated revenue grew to $129.8 million, the highest quarterly total since we completed the acquisitions of Bozzetto and Cortland, while consolidated Adjusted EBITDA improved to $19.7 million due largely to the reduction of Holdco expenses by $10.1 million from last year." Mr. Summerton added, "With a sharper focus on reducing Holdco costs, we expect to build on our first quarter performance through 2025 and beyond. Our near-term focus will also build on recent efforts at enhancing share value. Most notably, we plan to renew our share buyback in June, take measures to reduce the discount of our share price relative to the value of our assets, find ways to efficiently utilize our tax loss carry-forwards, and optimize our corporate structure to become a permanent capital vehicle." "Our core holdings combined to generate $22.4 million of adjusted EBITDA and our Holdco costs were $2.7 million, putting us in line to reach our guidance for the year," said Steven Leonard, Aimia's President and Chief Financial Officer. "While the threat of tariffs has introduced new uncertainty to global markets, our core holdings have largely been unaffected to date and the underlying assumptions for their expected performance in 2025 remain in effect. As a result, we continue to expect to generate adjusted EBITDA in 2025 in the range of $88 to $95 million for our core holdings on a combined basis and forecast Holdco costs to be below $11 million. We will continue to monitor macro-economic developments and the impact of tariffs on the performance of our core holdings closely and will adjust our outlook if warranted." AIMIA'S Q1 2025 HIGHLIGHTS Reported consolidated revenue of $129.8 million, up 6.3% from $122.1 million generated in Q1 2024. The growth was driven by several factors including the positive impact of foreign currency fluctuations relative to the Canadian dollar and higher contributions from Cortland due to improved customer demand. On a constant currency basis, consolidated revenue was up 2%. Generated consolidated Adjusted EBITDA of $19.7 million, up from $6.7 million reported in Q1 2024. The gain was driven by a number of developments, including improved performance by the Corporation's core holdings and by the $10.1 million reduction in selling, general and administrative (SG&A) expenses at the Holdings Segment, which was largely comprised of $6.9 million of shareholder activism costs and a $1.6 million expense related to termination benefits for former executives. Generated cash flow from operating activities of $12.2 million, a turnaround of $18.4 million from Q1 2024. Reported consolidated net earnings of $0.4 million compared to a net loss of $4.5 million for Q1 2024. Generated net earnings per common share of $0.55 due to the $53.8 million net gain from the substantial issuer bid completed in February 2025. Ended Q1 2025 with cash and cash equivalents of $94.7 million. Named Rhys Summerton, who brings 20-years of experience in the investment industry, as Executive Chairman following outgoing Executive Chairman Tom Finke's decision to retire. The transition reflects Aimia's commitment to succession planning and commitment to good governance. In addition to Mr. Summerton, Aimia's Board of Directors is currently comprised of Robert Feingold, Steven Leonard, Thomas Little, and Asif Seemab, all of whom will stand for nomination as Directors at the Company's upcoming annual general meeting of shareholders slated for May 21, 2025 in Toronto. Completed a substantial issuer bid to purchase for cancellation all of the Company's preferred shares in consideration for 9.75% senior unsecured notes. A total of 7,889,931 Preferred Shares were tendered and the Company issued $142.6 million principal amount of unsecured notes in consideration. The transaction will generate approximately $5.1 million in annual cash savings when comparing the annual preferred dividends and Part VI.1 tax to the annual cash coupon interest payments. CONSOLIDATED FINANCIAL HIGHLIGHTS Aimia (in $millions except for margin and per share data) Q1 2025 Q1 2024 Change Revenue 129.8 122.1 6.3 % Gross Profit 35.6 34.3 3.8 % Gross Margin 27.4 % 28.1 % (0.7) pp Selling, general and administrative expenses (25.5) (35.0) 27.1 % Operating Income (loss) 10.1 (0.7) NM Adjusted EBITDA 1 19.7 6.7 194 % Net earnings (loss) 0.4 (4.5) 108.9 % Earnings (loss) per share 0.55 (0.09) NM _______________________________ 1 Adjusted EBITDA is a non-GAAP measure. This press release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three-month period ended March 31, 2025, which can be accessed from SEDAR+ and Balance Sheet and Liquidity As at March 31, 2025, Aimia had $94.7 million in cash and cash equivalents. As at December 31, 2024, Aimia had total liquidity of $95.5 million, comprised of $95.4 million in cash and cash equivalents and $0.1 million of marketable securities. The modest quarter over quarter decline in Aimia's liquidity was attributable to a number of developments in Q1 2025. The most notable being $3.8 million of investments in property, plant and equipment, $3.8 million of transaction costs related to the substantial issuer bid, $1.9 million of principal repayments made by Bozzetto on its credit facilities, and a $1.6 million payment for the buyback of common shares through the Corporation's normal course issuer bid. The decline was largely offset by $12.2 million of cash flow from operating activities in Q1 2025. Of Aimia's cash and cash equivalents held at March 31, 2025, $47.5 million was held in Bozzetto, $11.7 million in Cortland International, and $35.5 million in the Holdings segment. Available Tax Losses As at March 31, 2025, Aimia had $1,010.3 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 $511.3 million of operating tax losses and $499 million of capital tax losses. Dividends Aimia paid $0.7 million in dividends for the first quarter ended March 31, 2025, on its three series of outstanding preferred shares. In the same period of 2024, Aimia paid $3.2 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 declared quarterly dividends of $0.392563 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.438670 per Series 4 preferred share, in each case payable on June 30, 2025, to shareholders of record on June 16, 2025. SEGMENT RESULTS Aimia is comprised of three segments: Bozzetto, Cortland International, and Holdings. Financial highlights for each segment for the three-month period March 31, 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%. _____________________________ 2 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Bozzetto generated revenue of $89.1 million in the first quarter of 2025, up 1.1% from $88.1 million generated in the comparable period for 2024. On a constant currency basis, the variance represents a decrease of $1.8 million, or 2%, due to lower volume sold by Bozzetto's Textile Solutions sector as a result of weaker demand. The decline was partially offset by improved pricing and product mix for Bozzetto's Dispersion Solutions sector. Adjusted EBITDA for Q1 2025 was $17 million, which represents a margin of 19.1%. These compare to $15.5 million and 17.6%, respectively, for Q1 2024. The year-over-year improvements are principally due to the decrease in SG&A expenses. Bozzetto generated earnings before taxes in Q1 2025 of $7.5 million, up 33.9% from $5.6 million generated in Q1 2024. The increase reflects developments already cited. Bozzetto's results for Q1 2025 and the comparable period of 2024 each include the contributions from Starchem, which was acquired on January 2, 2024. 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. The companies were acquired in March and July 2023, respectively. ______________________________ 3 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Cortland generated revenue of $40.7 million for Q1 2025, up 19.7% from $34 million generated in Q1 2024. On a constant currency basis, the variance represents an increase of $4.3 million, or 12.6%, driven mainly by increased market demand, particularly among customers within the fishing and aquaculture industry and by improved product mix. Adjusted EBITDA for Q1 2025 was $5.4 million, representing a margin of 13.3%. These compare to $4 million and 11.8%, respectively, for Q1 2024. The year-over-year improvements were largely driven by higher gross profit and by the impact of business transformation and operational improvement initiatives completed in prior periods aimed at building Cortland's market share, strengthening its sales force, and launching new products. Cortland made senior leadership team appointments, naming Wolfgang Wandl as Executive Chairman and Brian Boyce as Chief Financial Officer. The appointments support Cortland's commitment to improving operational efficiencies and results. 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. _____________________________ 4 Adjusted EBITDA is a non-GAAP measure. SG&A expenses for the Holdings segment in Q1 2025 were $3.4 million, down from $10.9 million incurred in Q1 2024. In Q1 2024 Aimia incurred $6.9 million of shareholder activism expenses including settlement agreements. SG&A expenses in Q1 2024 also included $1.6 million in termination benefits related to the departure of Aimia's former CEO and its former President. A further reduction in SG&A expenses of $1.6 million was offset by an increase in stock-based compensation of $2.6 million, which included a reduction in the unvested deferred share unit liability related to executives departed in 2024. Adjusted EBITDA in Q1 2025 improved by $10.1 million due to reduced SG&A expenses noted above, excluding stock-based compensation. Aimia anticipates that costs at the Holdings Segment in 2025 will be below $11 million. Outlook and Guidance Aimia's guidance for 2025 is based on the expected performance of Company's core holdings and ongoing cost-cutting initiatives at the Holding Company. To date, the imposition of US tariffs has had limited impact on Aimia's core holdings. While the outlook remains fraught with uncertainty given the fluid dynamics of global trade, the underlying conditions for Aimia's guidance for 2025 remain in effect. As a result, Aimia has re-iterated its guidance for the year. The Corporation will continue to closely monitor global trade developments and their impact on the performance of its core holdings. The Company's forecast for adjusted EBITDA for 2025 for the combined Bozzetto and Cortland businesses represents an expected growth of 13.8% from the mid-point of guidance relative to results for 2024. _____________________________ 5 Adjusted EBITDA is a non-GAAP measure. Quarterly Conference Call and Audio Webcast Information Aimia will host a conference call to discuss its first quarter 2025 financial results at 8:30 am ET on May 13. The call will be webcast at the following URL link 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: 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 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. Cortland International (in millions of Canadian dollars) Q1 2025 Q1 2024 Reconciliation of Adjusted EBITDA Operating income (loss) 1.4 0.8 Depreciation and amortization 3.0 3.0 Long-term management incentive plan 1.0 — Transaction and transition related costs — 0.2 Adjusted EBITDA 5.4 4.0 Adjusted EBITDA Margin 13.3 % 11.8 % For a reconciliation of Holdco costs to the Holdings segment's Selling, general and administrative expenses, please refer to the tables 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; the impact of tariffs on Aimia's outlook and guidance; Aimia's approach with respect to its NCIB and the regulatory approval of Aimia's NCIB program, Aimia's guidance for 2025, and related to Bozzetto's and Cortland's combined Adjusted EBITDA. 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 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.
Yahoo
18-03-2025
- Business
- Yahoo
MTN Group Ltd (MTNOF) (FY 2024) Earnings Call Highlights: Strong Revenue Growth Amidst ...
Service Revenue Growth: 13.8% year-on-year in constant currency; excluding Sudan, 14.4%. Data Revenue Growth: 21.9% year-on-year in constant currency. Fintech Revenue Growth: 28.5% year-on-year. EBITDA Margin: Improved to 39.9% in H2 from 36.5% in H1. Adjusted Headline Earnings Per Share: ZAR8.16, down from ZAR3.15 per share last year. Dividend: Approved at ZAR3.45 per share, with an anticipated increase to ZAR3.70 for FY2025. Group Leverage: 0.7 times net debt to EBITDA. Holdco Leverage: 1.4 times, within the guided range. Cash Upstreaming: ZAR14 billion for the year, with ZAR7.5 billion in H2. CapEx: ZAR29.9 billion excluding leases, with a CapEx intensity of 15.9%. South Africa Service Revenue Growth: 3.1% year-on-year. Nigeria Service Revenue Growth: 35.6% in constant currency. Uganda Service Revenue Growth: 19.6% with a margin of 52%. Ghana Service Revenue Growth: 34% with a margin in the upper 50%. Warning! GuruFocus has detected 8 Warning Signs with MTNOF. Release Date: March 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MTN Group Ltd (MTNOF) reported strong service revenue growth of 13.8% in constant currency, with a notable acceleration to 15.5% in the second half of 2024. The company achieved a significant improvement in free cash flow in the second half of the year, reaching ZAR21.5 billion compared to ZAR9.9 billion in the first half. MTN Group Ltd (MTNOF) successfully renegotiated tower lease agreements in Nigeria, realizing savings of ZAR1.3 billion in operating expenses. The fintech segment showed robust growth, with service revenue rising by 28.5% and advanced services growing by 52% year-on-year. The company maintained a strong balance sheet with Group net debt to EBITDA at 0.7 times, well within the loan covenant limit of 2.5 times. MTN Group Ltd (MTNOF) faced significant macroeconomic challenges, including the sharp devaluation of the naira, which negatively impacted reported earnings. The company reported a decline in reported EBITDA by 33.5% due to currency volatility and inflationary pressures. MTN Nigeria experienced a decline in EBITDA margin by 10.3 percentage points to 38.9%, primarily due to the naira devaluation and high inflation. The South African prepaid segment underperformed, with the company acknowledging the need for improvement in specific regions. MTN Group Ltd (MTNOF) faced operational challenges in Sudan due to ongoing conflict, resulting in a ZAR11.7 billion impairment. Q: Can you explain the impact of currency translation on your earnings and whether this is a target for future performance? A: Tsholofelo B. L. Molefe, Group CFO, explained that the ZAR18 earnings figure was an illustrative translation impact, showing what earnings would have been without currency effects. It is not a target, and the company maintains its guidance of mid-teens growth. Q: What are your plans for CapEx in South Africa, given the competitive landscape and recent market share losses? A: Ralph Mupita, Group CEO, stated that the CapEx in South Africa will decrease from ZAR9.8 billion to ZAR6.3 billion, excluding resilience investments. The focus will be on targeted 5G rollout and maintaining network growth without excessive spending. Q: What is the outlook for MTN Nigeria's tariff hikes and their impact on service revenue? A: Karl Toriola, CEO of MTN Nigeria, mentioned that a 50% tariff increase was approved, which is being implemented gradually. The company expects strong elasticity of demand and anticipates service revenue growth in line with guidance. Q: How is MTN addressing the challenges with MoMo PSB in Nigeria? A: Ralph Mupita noted that the PSB license is limiting, and MTN is exploring additional licenses and strategies to compete effectively in Nigeria's fintech market. The focus will be on expanding services beyond basic transactions. Q: What are MTN's plans for the 2026 Eurobond maturity? A: Tsholofelo B. L. Molefe stated that MTN aims to reduce dollar-denominated debt and will assess options for the Eurobond maturity by October 2025, with plans to communicate their strategy in due course. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
