Q4 2025 Aimia Inc Earnings Call

March 24, 2026

Operator: Good morning, ladies and gentlemen, and welcome to the Aimia Inc. Q4 2025 results conference call. At this time, note that all participants are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on 24 March 2026. I would now like to turn the conference over to Joe Racanelli. Please go ahead, sir.

Speaker #1: Good morning , ladies and gentlemen , and welcome to the Aimia Inc. fourth quarter 2020 Results Conference call . At this time , note that all participants are in a listen only mode Following the presentation , we will conduct a question and answer session .

Speaker #1: And if at any time during this call , you require me assistance , please press star zero . For the operator Also note that this call is being recorded on March 24th , 2026 .

Speaker #1: I would now like to turn the conference over to Joe Racanelli. Please go ahead, sir.

Joseph Racanelli: Thank you, operator, and good morning, everyone. Joining me on today's call are our Executive Chairman, Rhys Summerton, and Aimia's President and CFO, Steven Leonard. Before we begin, I wanna make sure that everybody is aware that we issued our financial results for Q4 earlier this morning. All of our materials, including the news release, MD&A, and financial statements are available from our website and SEDAR+. We will be using a presentation today, and for those listening to our discussion by phone, a copy of that presentation is available from the IR section of our website. Some of the statements made on today's call may constitute forward-looking information, and future results may differ materially from what we discuss. Please refer to the risks and uncertainties that may affect our future performance referenced in our presentation as well as in our MD&A.

Joe Racanelli: Thank you, operator, and good morning, everyone. Joining me on today's call are our Executive Chairman, Rhys Summerton, and Aimia's President and CFO, Steven Leonard. Before we begin, I wanna make sure that everybody is aware that we issued our financial results for Q4 earlier this morning. All of our materials, including the news release, MD&A, and financial statements are available from our website and SEDAR+. We will be using a presentation today, and for those listening to our discussion by phone, a copy of that presentation is available from the IR section of our website. Some of the statements made on today's call may constitute forward-looking information, and future results may differ materially from what we discuss. Please refer to the risks and uncertainties that may affect our future performance referenced in our presentation as well as in our MD&A.

Speaker #2: Thank you . Operator and good morning , everyone . Joining me on today's call are our Executive Chairman , Rhys Summerton and Aimia Inc. , president , CFO Steven Leonard Before we begin , I want to make sure that everyone is aware that we issued our financial results for the fourth quarter earlier this morning .

Speaker #2: All of our materials , including the news release , mDNA financial statements , are available from our website , from our website and Cd8+ .

Speaker #2: We will be using a presentation today . And for those listening to our discussion by phone , a copy of that presentation is available from the IR section of our website Some of the statements made on today's call may constitute forward looking information and future results may differ materially from what we discussed Please refer to the risks and uncertainties that may affect our future performance Referenced in our presentation , as well as in our MDA .

Joseph Racanelli: In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation is provided in the appendix of the presentation. Following today's presentation, please reach out to us if you have any outstanding questions or require any clarification of what we discussed today. With that, I'd like to turn the call over now to Rhys. Please go ahead, Rhys.

Joe Racanelli: In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation is provided in the appendix of the presentation. Following today's presentation, please reach out to us if you have any outstanding questions or require any clarification of what we discussed today. With that, I'd like to turn the call over now to Rhys. Please go ahead, Rhys.

Speaker #2: In addition, we will be making note of GAAP and non-GAAP financial measures. Reconciliation is provided in the appendix of the presentation and following today's presentation.

Speaker #2: Please reach out to us if you have any outstanding questions or require any clarification of what we discussed today With that , I'd like to turn the call over now to Reece .

Rhys Summerton: Yeah. Thanks, Joe, and good morning, everyone. I think the transformation of Aimia into a useful permanent capital vehicle continues into Q4. We made progress against our three-step strategy, most notably for a permanent capital vehicle. What's important is that we continue to grow the cash position, and we generated very strong EBITDA results in our core businesses. Overall, we achieved the guidance for the year. We continued with the momentum into the new year by entering into a definitive agreement that will result in the divestiture of our special chemicals core holding. The pending completion of the Bozzetto sale and the net proceeds it will generate will put us firmly on track towards our goal of enhancing shareholder value through making accretive investments in undervalued companies.

Speaker #2: Please go ahead, Reece.

Speaker #3: Yeah . Thanks , Joe . And good morning everyone . I think the transformation of Amir into a useful , permanent capital vehicle continues into the fourth quarter .

Speaker #3: We made progress against our three step strategy , most notably for a permanent capital vehicle . What's important is that we continue to grow the cash position , and be generated very strong EBITDA results in our core businesses and overall , we achieved the guidance for the year We continued with the momentum into the new year by entering into a definitive agreement that will result in the divestiture of our special chemicals core holding the pending completion of the sale and the net proceeds , it will generate will put us firmly on track towards our goal of enhancing shareholder value through making accretive investments in undervalued companies .

Rhys Summerton: In light of the developments in the Middle East and the timing of the Bozzetto transaction, the planned new investments could not have been more fortuitous. I'll expand on our progress against our strategy, as well as our near-term priorities later in the presentation. For now, I'll hand over to Steve to review the financial results in detail.

Speaker #3: In light of the developments in the Middle East and the timing of the transaction, the planned new investments could not have been more fortuitous. I'll expand on our progress against our strategy, as well as our near-term priorities, later in the presentation.

Speaker #3: But for now, I'll hand over to Steve to review the financial results in detail.

Steven Leonard: Thank you, Rhys. I'd like to begin my remarks with an overview of our consolidated results. As you'll note from slide 7, our results in Q4 2025 were marked by mixed performance when compared to last year. When you take into account the backdrop of heightened geopolitical and economic uncertainty, it becomes clear that we delivered strong results in Q4 2025. A case in point, our gross profit, cash flow from operations, and adjusted EBITDA in Q4 2025 were at or slightly below results from last year. I would draw everyone's attention to a couple of items. First, our consolidated revenues were down in Q4 2025 due to lower volumes and pricing pressures in both core businesses, which I will provide more color in a few minutes. Gross profit margins held due to improvements in mix, resulting in adjusted EBITDA down CAD 0.6 million for the quarter.

Speaker #4: Thank you . Reese . I'd like to begin my remarks with an overview of our consolidated results . As you'll note from slide seven , our results in the fourth quarter of 25 were marked by mixed performance when compared to last year , but when you take into account the backdrop of heightened geopolitical and economic uncertainty , it becomes clear that we delivered strong results in Q4 .

Speaker #4: Our case in point, our gross profit, cash flow from operations, and adjusted EBITDA in Q4 2025 were at or slightly below results from last year.

Speaker #4: I would draw to everyone's attention to a couple of items . First , our consolidated revenues were down in Q4 25 due to lower volumes and pricing pressures in both core businesses , which I will provide more color in a few minutes .

Speaker #4: Gross profit margins held due to improvements in mix , resulting in adjusted EBITDA down 0.6 million for the quarter Second , included in the increase in costs in Q4 25 was driven by a combination of factors .

Steven Leonard: Second, included in the increase in SG&A costs in Q4 2025 was driven by a combination of factors. These included CAD 2.9 million of costs related to the Bozzetto transaction and CAD 1.2 million related to a litigation settlement agreement with a former company executive claim launched in 2020. Excluding these one-off amounts, SG&A expenses declined on a year-over-year basis. Finally, our net loss for Q4 2025 included a non-cash goodwill impairment charge of CAD 14 million at Cortland. Turning to the performance of our core holdings, starting with Bozzetto on Slide 8. In Q4 2025, Bozzetto generated CAD 84.2 million of revenue, a decrease of 1.9% when compared to last year. On a constant currency basis, Bozzetto's revenue was down 9.8%. The year-over-year variance was due to lower volumes sold by Bozzetto's textile and water solution sectors.

Speaker #4: These included $2.9 million of costs related to the Passetto transaction and $1.2 million related to a litigation settlement agreement with a former company executive, arising from a claim launched in 2020.

Speaker #4: Excluding these one off amounts , G&A expenses declined on a year over year basis . And finally , our net loss for Q4 25 included a non-cash goodwill impairment charge of 14 million at Cortland Turning to the performance of our core holdings , starting with Busetto on slide eight in Q4 25 , Bozzetto generated 84.2 million of revenue , a decrease of 1.9% when compared to last year .

Speaker #4: On a constant currency basis, Biztools revenue was down 9.8%. The year-over-year variance was due to lower volumes sold by Bozzetto in the Textile and Water Solutions sectors. Two contributing factors were lower Textile Solution sales into Bangladesh due to political instability in the country, and Chinese competitors driving lower pricing in Water Solutions in markets where Bozzetto serves, resulting in weaker results.

Steven Leonard: Two contributing factors were lower textile solution sales into Bangladesh due to political instability in the country and Chinese competitors driving lower pricing in water solutions in markets where Bozzetto serves. Weaker results for Bozzetto's textile and water solutions were partially offset by improved pricing, product mix, and experience from the dispersion solution sector, where Bozzetto focused on growing sales of agrochemical and plasterboard solutions. In Q4 2025, Bozzetto generated adjusted EBITDA of EUR 15 million, which represented a margin of 17.8%. In the same period last year, Bozzetto generated adjusted EBITDA of EUR 13.4 million at a margin of 15.6%. While year-over-year comparisons of Bozzetto results are favorable, quarter-over-quarter comparisons better illustrate some of the macroeconomic headwinds that Bozzetto faced over the past year. Turning to Cortland on slide 9.

Speaker #4: For textile and water solutions were partially offset by improved pricing and product mix. Experienced from the dispersion solutions sector, where Busetto focused on growing sales of agrochemical and plasterboard solutions in Q4 2025.

Speaker #4: Generated adjusted EBITDA of 15 million , which represented a margin of 17.8% in the same period last year . Bozzetto generated adjusted EBITDA of 13.4 million and a margin of 15.6% , while year over year comparisons of Brazil results are favorable quarter over quarter comparisons better illustrates some of the macroeconomic headwinds of Bezerra faced over the past year .

Speaker #4: Turning to Cortland on Slide nine , Cortland generated 34.3 million of revenue in Q4 25 , down 17% from last year . Although Cortland results in Q4 , 25 were impacted by unfavorable market conditions , including the effects of U.S.

Steven Leonard: Cortland generated CAD 34.3 million of revenue in Q4 2025, down 17% from last year. Although Cortland results in Q4 2025 were impacted by unfavorable market conditions, including the effects of US tariffs on global trade, particularly in the marine and shipping rope sales. I should point out that Cortland's revenue in the comparative period last year was boosted by strong project sales in North America within the offshore energy sector that did not reoccur this year. On a constant currency basis, Cortland's revenue declined by CAD 7 million or 16.9%. The decline in Cortland's top-line numbers, coupled with an increase in SG&A costs, resulted in a decrease in adjusted EBITDA to CAD 4.1 million.

Speaker #4: Tariffs on global trade, particularly in marine and shipping—and specifically in marine and shipping rope sales—I should point out that Cortland's revenue in the comparative period last year was boosted by strong product sales in North America within the offshore energy sector that did not reoccur this year on a constant currency basis.

Speaker #4: Cortland's revenue declined by 7 million , or 17 16.9% . The decline in Cortland's top line numbers , coupled with an increase in sG&A costs , resulted in a decrease in adjusted EBITDA to 4.1 million .

Steven Leonard: The CAD 1 million in SG&A costs was driven by a combination of factors, including increased compensation and benefits expense related to Cortland's efforts to grow its sales force and strengthen customer relationships in key markets. This increase was partially offset by lower selling expenses due to reduced sales volumes. Subsequent to quarter end, Cortland made a management change and appointed Wolfgang Wandl as CEO. Given the increased focus on growing sales and operational excellence, we are optimistic Wolfgang will lead Cortland to its full potential. We ended the year with CAD 109 million in cash, up from CAD 106 million at the end of Q3. Slide 10 shows a waterfall of cash movements in Q4.

Speaker #4: The $1 million in costs was driven by a combination of factors, including increased compensation and benefits expense related to Cortland's efforts to grow its sales force and strengthen customer relationships in key markets.

Speaker #4: This increase was partially offset by lower selling expenses due to reduced sales volumes subsequent to quarter end. Cortland made a management change, appointing Wolfgang Wandel as CEO, given the increased focus on growing sales and operational excellence.

Speaker #4: Excellence, we are optimistic Wolfgang will lead Corton to its full potential. We ended the year with $109 million in cash, up from $106 million at the end of Q3. Slide ten shows a waterfall of cash movements in the fourth quarter.

Steven Leonard: Key drivers to the increase in liquidity included CAD 19.4 million of cash flow from operations and a CAD 8.8 million tax refund from Revenu Québec related to a tax audit of a former subsidiary. Cash flows in Q4 included CAD 6.9 million of interest payments against our 9.75% senior notes, CAD 3.6 million of common share buybacks, including tax, CAD 7.9 million of principal and interest payments on Bozzetto's credit facilities, and CAD 5 million of capital expenditures. Turning to slide 11, looking at our liquidity more closely, it shows a breakdown of our cash position by segment at the end of December. I'd like to make clear that our liquidity in the coming months will be impacted by the proceeds from the Bozzetto divestiture, which we expect at the end of Q2 of this year.

Speaker #4: Key drivers to the increase in liquidity included 19.4 million of cash flow from operations and an 8.8 million tax refund from revenue . Quebec related to a tax audit of a former subsidiary .

Speaker #4: Cash flows in the fourth quarter included 6.9 million of interest payments against our 9.75% senior notes , 3.6 million of common share buybacks , including tax , 7.9 million of principal and interest payments on Biztools credit facilities and 5 million of capital .

Speaker #4: Turning to slide 11 . Looking at our liquidity , more closely , it shows a breakdown of our cash position by segment at the end of December I'd like to make clear that our liquidity in the coming months will be impacted by the proceeds from the divestiture , which we expect at the end of Q2 of this year .

Steven Leonard: We expect the net proceeds in the range of CAD 265 million to 271 million. We anticipate our liquidity will be offset by the redemption of the senior notes, and if all the notes are redeemed, that would be CAD 142.6 million. Over the next twelve months, our cash requirements will include CAD 7 million of operating expenses at the whole co level. Slide 12 shows our results for 2025 tracked against the guidance we provided a year ago. We had forecasted that Bozzetto and Cortland would generate between CAD 88 and 95 million of adjusted EBITDA on a combined basis. Their combined results, which totaled CAD 85.6 million, were broadly in line with our expectations for the year. At the whole co level, we forecasted cost to be CAD 9 million for 2025.

Speaker #4: We expect the net proceeds in the range of 265 million to 271 million . We anticipate our liquidity will be offset by the redemption of the senior notes .

Speaker #4: And if all the notes are up redeemed , that would be 142.6 million over the next 12 months . Our cash requirements will include 7 million of operating expenses at the local level Slide 12 shows our results for 2025 tracked against the guidance we provided a year ago .

Speaker #4: We had forecasted that Cortland would generate between $88 million and $95 million of adjusted EBITDA on a combined basis. Their combined results, which totaled $85.6 million, were broadly in line with our expectations for the year. At that level, we forecasted costs to be $9 million for 2025.

Steven Leonard: As a result of cost-cutting initiatives we implemented over the past year, including reduced audit and professional fees, lower insurance costs, and decreased director fees, we did better than our target for the year. HoldCo costs for 2025 were CAD 7.7 million. We remain committed to reducing HoldCo costs to or below 1.5% of NAV. I should point out that in light of the planned sale of Bozzetto, we are not providing guidance for 2026. A key development subsequent to quarter end was our announcement of the signing of the definitive agreement to divest Bozzetto. While we have discussed some of the details previously, I think it would be helpful to review the salient aspects of the transaction, provide an update on the recent developments.

Speaker #4: As a result of cost cutting initiatives , we implemented over the past year , including reduced audit and professional fees , lower insurance costs , and decreased director fees .

Speaker #4: We did better than our target for the year. Costs for 2025 were $7.7 million. We remain committed to reducing costs to or below 1.5% of NAV.

Speaker #4: I should point out that in light of the planned sale , we are not providing guidance for 2026 . A key development subsequent to quarter end was our announcement of the signing of the definitive agreement to divest Boris et al While we have discussed some of the previously , I think it would be helpful to review the salient aspects of the transaction .

Speaker #4: Provide an update on the recent developments As summarized on slide 14 . The sale bazetta will generate proceeds in the range of 265 to 271 million .

Steven Leonard: I've summarized on slide 14, the sale of Bozzetto will generate proceeds in the range of CAD 265 to 271 million. We anticipate the transaction closing in Q2 as we await final regulatory approvals. As we have disclosed previously, we expect the use of the net proceeds towards making investments in undervalued companies with an ultimate goal of acquiring controlling interest in these investments. In addition, we will be reducing our debt by making an offer for our senior notes to be redeemed at principal value plus accrued interest. With more than CAD 500 million of capital tax carry-forwards at December 31, we do not anticipate paying any taxes on the gain from this transaction. Slide 15 illustrates the cash waterfall and the main transaction components.

Speaker #4: We anticipate the transaction closing in Q2 as we await final regulatory approvals As we have disclosed previously , we expect the use of the net proceeds towards making investments in undervalued companies with an ultimate goal of acquiring , controlling interest in these investments in addition , we will be reducing our debt by making an offer for our senior notes held for our senior notes to be redeemed at the principal value plus accrued interest .

Speaker #4: With more than $500 million of capital tax carryforwards at December 31st, we do not anticipate paying any taxes on the gain from this transaction. Slide 15 illustrates the cash waterfall and the main transaction components.

Steven Leonard: Although the Bozzetto transaction is denominated in euros, we have presented it in Canadian dollars, our reporting currency. As you can see, Bozzetto was valued at an enterprise value of CAD 411 million. Taking into consideration Bozzetto's net debt, the value of minority interest in transaction costs, the sale of Bozzetto will generate net proceeds in the range of CAD 265 to 271 million dollars. Amounts presented in the waterfall are subject to closing adjustments on net debt, working capital, and currency rates. I should also note that we entered into a hedging strategy in February to mitigate the impact of major foreign currency volatility. We have hedged approximately 50% of the net euro proceeds into Canadian dollars, which essentially represents the par value of the senior notes if they were all redeemed after the divestiture closes.

Speaker #4: Although the transaction is dominated in euros , we have presented it in Canadian dollars . Our reporting currency . As you can see , was valued at an enterprise value of 411 million , taking into consideration net debt .

Speaker #4: The value of minority interest in transaction costs . The sale bazetta will generate net proceeds in the range of 265 to $271 million .

Speaker #4: Amounts presented in the waterfall are subject to closing adjustments on net debt, working capital, and currency rates. I should also note that we entered into a hedging strategy in February to mitigate the impact of major foreign currency volatility.

Speaker #4: We have hedged approximately 50% of the net euro proceeds into Canadian dollars, which essentially represents the par value of the senior notes.

Speaker #4: If they were all redeemed after the divestiture closes, Slide 16 presents our cash position on a pro forma basis, taking into account the impacts associated with the divestiture on our liquidity as at December 31st.

Steven Leonard: Slide 16 presents our cash position on a pro forma basis, taking into account the impacts associated with the Bozzetto divestiture on our liquidity as at 31 December. As a reminder, our cash position at year-end was CAD 109.2 million. This pro forma walk takes the estimated net proceeds from the Bozzetto sale, less CAD 50 million of cash held by Bozzetto at 31 December, and the use of CAD 143 million towards the redemption of our senior notes if all our note holders accepted the offer. Once these items are taken into account, we derive CAD 185 million of cash on a pro forma basis as of 31 December. As noted earlier, this total is subject to the final closing adjustments. That concludes my prepared remarks.

Speaker #4: As a reminder , our cash position at year end was 109.2 million . This pro forma walk takes takes the estimated net proceeds from the sale .

Speaker #4: Less $50 million of cash held by Busetto at December 31st, and the use of $143 million towards the redemption of our senior notes.

Speaker #4: If all our shareholders , all our Noteholders accepted the offer . Once are taken into account , we derive 185 million of cash on a pro forma basis as of December 31st .

Speaker #4: As noted earlier , this total is subject to the final closing adjustments . That concludes my prepared remarks . I would like to turn the call back over to Reese to review Amia's near-term priorities and outlook .

Steven Leonard: I would like to turn the call back over to Rhys to review Aimia's near-term priorities and outlook.

Rhys Summerton: Good. Thanks, Steven. Slide 18, I think it is, we're going to just look ahead in the near-term activities. We anticipate the Bozzetto transaction will close in Q2. There's the customary closing conditions and regulatory approvals, which Steven alluded to. Within 30 days of closing, we'll make an offer to purchase all the senior notes. The purchase offer is a requirement of our indenture agreement, which is triggered by the sale of Bozzetto. The offer to note holders will be made at par value of the notes, plus any accrued interest. That value at 31 December 2025 was $142.6 million. The holders will retain the option to continue to hold the notes until maturity in January 2030.

Speaker #3: Good , thanks , Steve . So slide 18 . I think it is We're going to just look ahead in the near term activities So we anticipate the transaction will close in Q2 There's the customary closing conditions and regulatory approvals , which Steve alluded to .

Speaker #3: And then within 30 days of closing , we'll make an offer to purchase all the senior notes . The purchase offer is a requirement of our indenture agreement , which is triggered by the sale of the zero .

Speaker #3: The offer to Noteholders will be made at par value of the notes, plus any accrued interest, and that value at December 31, 2025, was $142.6 million.

Speaker #3: So holders will retain the option to continue to hold the notes until maturity in January 2030 . So there'll be a decision that Noteholders will have to have to make in tandem with the offer to redeem the senior notes will begin to deploy the net proceeds towards the exciting part of Amia's future , which is making investments in companies that we fund that we believe it would be undervalued and would be consistent with our strategy .

Rhys Summerton: There'll be a decision that note holders will have to make. In tandem with the offer to redeem the senior notes, we'll begin to deploy the net proceeds towards the exciting part of Aimia's future, which is making investments in companies that we find that we believe would be undervalued and would be consistent with our strategy. We've already identified a number of target companies. We won't share obviously any of the details with you, but I think we'll give a broad sketch or outline of that. The companies we're looking at, you know, we'll definitely have to get control of them. We'll look for things that have got strong, dependable cash flows.

Speaker #3: So we've already identified a number of targets . Companies we won't share , obviously , any of the details with you , but I think we'll give a broad sketch or outline of that .

Speaker #3: So the companies we're looking at , you know , we'll definitely have to get control of them . We'll look for things that have got strong , dependable cash flows .

Rhys Summerton: They have balance sheets which are not just strong, but they are essentially net cash position balance sheets. They'll be undervalued on a relative basis with a strong valuation or asset underpinning to them. Just to highlight on slide 19, the impact of the early redemption of the senior notes. These notes bear interest at 9.75% coupon, and they consume CAD 13.9 million of cash annually, and that cash comes from the holdco right at the center. Early redemption will result in cumulative cash savings to maturity in January 2030 of approximately CAD 56 million if all of them are redeemed.

Speaker #3: They have balance sheets which are not just strong , but they are essentially net cash position balance sheets . And they'll be under undervalued on a relative basis with a strong valuation or asset underpinned to them .

Speaker #3: So just to highlight on slide 19 , the impact of the early redemption of the senior notes , these notes , they bear interest at 9.75% coupon , and they consume 13.9 million of cash annually .

Speaker #3: And that cash comes from the Holdco right at the center. Early redemption will result in cumulative cash savings to maturity in January 2030 of approximately $56 million.

Speaker #3: If all of them are redeemed, it's worth remembering that we generated a gain of $53.8 million and annual cash savings of a further $5 million when we completed our substantial issuer bid last year, when we exchanged our preferred shares at a discount to their face value for the senior notes.

Rhys Summerton: It's worth remembering that we generated a gain of CAD 53.8 million, and annual cash savings of and further CAD 5 million when we completed our substantial issuer bid last year when we exchanged our preferred shares, at a discount to the face value of the senior notes. With that out the way, slide 20 talks about the progress against our three-step strategy. Remember those three steps, reduce the holdco costs, reduce the share price discount that it trades at, and deploy the capital effectively. It's been less than a year since we introduced this strategy. On the holdco cost side, we reduced holdco cost to CAD 7.7 million in 2025, surpassing our target, which was CAD 9 million. We did better there.

Speaker #3: So with that out of the way, slide 20 talks about the progress against our three-step strategy. So remember those three steps: reduce the costs, reduce the share price discount that it trades at, and deploy the capital effectively.

Speaker #3: So, it's been less than a year since we introduced this strategy on the Holdco cost side. We reduced Holdco cost to $7.7 million in 2025, surpassing our target, which was $9 million.

Rhys Summerton: Steven and the team did a good job in reducing that number. To put it into context, we're down from CAD 12 million in 2024. On the share buybacks, we continued with our share buybacks. We've spent more than CAD 3.6 million worth of shares in our NCIB in Q4 at an average price of CAD 2.80 per share. More significantly, the sale of Bozzetto puts us on the cusp of being able to deploy the capital, effectively executing on the final part of our strategy and the most important part which will create value. We are excited about the path ahead, clearly. Once the Bozzetto divestiture closes, we'll have a strong cash position.

Speaker #3: So we did better there . And Steve and the team did a good job in reducing that number And to put it into context , we're down from 12,000,000 in 2024 on the share buybacks .

Speaker #3: We continued with our share buybacks . We've spent more than 3.6 million worth of shares in our NCIB in the fourth quarter , at an average price of $2.80 per share , and more significantly , the sale of Busetto puts us on the cusp of being able to deploy the capital effectively executing on the final part of our strategy and the most important part , which will create value .

Speaker #3: We are excited about the path ahead . Clearly , once the divestiture closes , we'll have a strong cash position . Importantly , depending on on the success of the redemption of the notes , we'll have no debt at the center and the underlying companies will have net cash as well .

Rhys Summerton: Importantly, depending on the success of the redemption of the notes, we'll have no debt at the center, and the underlying companies will have net cash as well. We have more than 1 billion of tax losses, tax loss carryforwards to utilize. We are very aligned, both as a board, as the executives of the company and as shareholders to take Aimia forward. As sanguine as we are about our prospects, I want to remind everyone that this process will take some time. We've been at it for less than a year. The turnaround is gaining a lot of momentum. The team is executing very well, and we are very well placed to start executing on the next part of our strategy. Slide 21 talks about the progress in the NCIB.

Speaker #3: And we have more than 1 billion of tax losses . Tax loss , carryforwards to utilize . So we are very aligned both as as a board , as the executives of the company and our shareholders to take Amia forward .

Speaker #3: As sanguine as we are about our prospects , I want to remind everyone that this process will take some time . So we've been at it for for less than a year .

Speaker #3: The turnaround is gaining a lot of momentum. The team is executing very well, and we are very well placed to start executing on the next part of our strategy.

Speaker #3: Slide 21 talks about the progress in the NCIB. This, as you can see, takes us all the way to the 28th of February, 2026.

Rhys Summerton: This you can see takes us all the way to 28 February 2026, so after year-end. We've continued to buy back shares from the start of the strategy. We reduced the share count by over 10%. We will continue with this until our current NCIB approval runs out in June, and then we will look to reinstate that at the next AGM. Going on to our summary and outlook slide. As you have heard, the Q4 was marked by progress against our three-step strategy. We had solid financial results, even though there's been geopolitical uncertainty around the world. Our focus in the coming months will be to sustain the momentum that Aimia has.

Speaker #3: So after year end , we've continued to buy back shares from the start of the strategy . We've reduced the share count by over 10% , and we'll we will continue with this until our current NCIB approval runs out in June .

Speaker #3: And then we will look to reinstate that at the next AGM Going on to our summary on outlook slide . As you have heard , the fourth quarter was marked by progress against our three step strategy .

Speaker #3: We had solid financial results . Even though there's been geopolitical uncertainty around the world . Our focus in the coming months will be to sustain the momentum that Amia has , in particular , our priorities in the near term will center on closing the transaction , which we said will be in the second quarter , redeeming the outstanding senior notes and then starting the process to invest in in new undervalued companies that meet the criteria that we specified earlier .

Rhys Summerton: In particular, our priorities in the near term will center on closing the Bozzetto transaction, which we said will be in Q2, redeeming the outstanding senior notes, and then starting the process to invest in new undervalued companies that meet the criteria that we specified earlier. We also have worked on secondary listings of Aimia. We have a listing now on the JSE, and we look to add one more additional listing of Aimia in another market. This is all part of our strategy, which will become clearer in the time ahead of how we plan to invest in undervalued companies. Finally, I wanna point out that AGM materials will be mailed to investors in the coming weeks in advance of the shareholder meeting.

Speaker #3: We have also worked on secondary listings of Aimia. We have a listing on the JSE, and we are looking to add one more additional listing of Aimia in another market.

Speaker #3: And this is all part of our strategy, which will become clearer in the time ahead, of how we plan to invest in undervalued companies.

Speaker #3: Finally, I want to point out that AGM materials will be mailed to investors in the coming weeks, in advance of the shareholder meeting.

Rhys Summerton: This year's meeting will be held in Toronto on 13 May, and I hope to meet as many of you in person as possible. I'm hoping that we can double the attendance from last year. Thank you for your time today, and we'll open the call to questions.

Speaker #3: This year's meeting will be held in Toronto on May 13th, and I hope to meet as many of you in person as possible.

Speaker #3: I'm hoping that we can double the attendance from last year. Thank you for your time today, and we'll open the call to questions.

Joseph Racanelli: Go ahead, operator.

Joe Racanelli: Go ahead, operator.

Rhys Summerton: Thank you.

Joseph Racanelli: If you wouldn't mind polling listeners for questions.

Joe Racanelli: If you wouldn't mind polling listeners for questions.

Speaker #2: Go ahead, operator. If you wouldn't mind, please pull listeners for questions.

Operator: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions.

Speaker #1: Thank you sir . Ladies and gentlemen , if you do have any questions at this time , please press star , followed by one on your touchtone phone .

Speaker #1: You will then hear a prompt that your hand has been raised, and should you wish to decline from the polling process, please press star followed by two.

Speaker #1: And if you're using a speakerphone , you will need to lift the handset first before pressing any keys . Please go ahead and press star one now .

Joseph Racanelli: Sorry, operator. Before we begin, Rhys, we did receive some questions, and I just wanna ask those for you and Steven. Now, you talked about potentially monetizing some assets. Can you clarify which ones that you're considering?

Joe Racanelli: Sorry, operator. Before we begin, Rhys, we did receive some questions, and I just wanna ask those for you and Steven. Now, you talked about potentially monetizing some assets. Can you clarify which ones that you're considering?

Speaker #1: If you have any questions.

Speaker #2: Before we begin . Reese , we did receive some questions and I just want to ask those for you and Steve . Now , you talked about potentially monetizing some assets .

Speaker #2: Can you clarify which ones you're considering?

Rhys Summerton: Well, the balance sheet is now fairly transparent and, you know, the investments are easy to understand. We have a few remaining smaller assets, which we are going to be in the process of monetizing. Those are some investments which we will redeem, bringing in some of the cash into the center. We also have an investment in China, which we don't believe is ready to be sold yet. It is trending in the right direction. Performance has improved materially over the last year, and we think in the future there will be an opportunity to exit that. At this point, we are happy holders of that turnaround.

Speaker #3: Well , the balance sheet is now fairly transparent and , you know , the investments are easy to understand . So we have a few remaining smaller assets which we are going to be in the process of monetizing .

Speaker #3: And those are some investments which we will redeem , bringing in some of the cash into the center . We also have an investment in China , which we don't believe is is ready to be sold yet , but it is trending in the right direction .

Speaker #3: Performance has improved materially over the last year, and we think in the future there will be an opportunity to exit that.

Speaker #3: But at this point , we are happy holders of that turnaround .

Joseph Racanelli: Okay. Can you clarify a little bit in terms of your tax loss carry forwards? How would you utilize them with some of your planned investments? Do you need to acquire controlling stakes to utilize them?

Joe Racanelli: Okay. Can you clarify a little bit in terms of your tax loss carry forwards? How would you utilize them with some of your planned investments? Do you need to acquire controlling stakes to utilize them?

Speaker #2: Okay . Can you clarify a little bit on terms of your tax loss ? Carry forward ? How would you utilize them with some of your planned investments ?

Speaker #2: Do you need to acquire controlling stakes to utilize them?

Steven Leonard: In each jurisdiction, there's particular parameters around utilizing the tax losses. The biggest parameter is change in control. You know, obviously we have that top of mind as we deploy our investments and make our decisions going forward. I wanna point out, though, we were able to utilize our capital losses on the sale of the Bozzetto transaction. That's just another example of our ability to mitigate tax costs.

Speaker #4: In each in each jurisdiction ? There's a parameters around utilizing the tax losses . The biggest parameters change and control . So obviously we're we have that top in mind as we make our As we deploy our investments and make our decisions going forward , I want to point out , though , we were able to use allies , our capital losses on the sale of the transaction .

Speaker #4: That's just another example of our ability to mitigate tax costs

Joseph Racanelli: Rhys, question for you in particular. Does Milkwood plan on adding or increasing its position in the company?

Joe Racanelli: Rhys, question for you in particular. Does Milkwood plan on adding or increasing its position in the company?

Speaker #2: And Rhys, question for you in particular, does Milkwood plan on adding or increasing its position in the company?

Rhys Summerton: Yeah, I don't think we'll make an answer about that now. We have a substantial investment already. I have material investment as well personally. We'll have to see what happens in the next few days. We increase our holding or our percentage of Aimia virtually every day because there's a share buyback going on, and obviously we're not sellers. We'll see what happens with the market and the way that Aimia trades relative to its book value.

Speaker #3: You know , I don't think we'll we'll make an answer about that . Now . We have a substantial investment already . I have material investment as well .

Speaker #3: Personally , and we'll have to see what happens in the in the next few days . But we increase our holding or our percentage of , of Amia virtually every day because there's a share buyback going on .

Speaker #3: And obviously we're not we're not sellers , but we'll see what happens at with , with the market and where Amia trades relative to its book value .

Joseph Racanelli: Great. Operator, can you open the line to the person in queue, please?

Joe Racanelli: Great. Operator, can you open the line to the person in queue, please?

Speaker #2: Great, operator. Can you open the line to the person queue, please?

Operator: Certainly. First question from the phone is from Rob Sherwood at Zeus Capital. Please go ahead.

Speaker #1: Certainly. First question from the phone is from Robert at XYZ Capital. Please go ahead.

Rob Sherwood: Thank you. Good morning, Rhys and Steven. Two from me, please. Firstly, on Cortland and EBITDA margins. You discuss in the statement higher SG&A costs related to investments in sales and customer relationships. Are those investments now complete? And would you expect, you know, all other things being equal, the EBITDA margins in this division would now recover? Secondly, just to press you a little bit more on acquisition strategy and targets. I know you can't give any precise details, but can you perhaps say anything on geographies and perhaps verticals? Thank you.

Speaker #5: Thank you . Good morning Reese . And Steven , two from me . Please . Firstly , on Courtland and EBITDA margins , you discuss in the statement higher sG&A costs related to investments in sales and customer relationships .

Speaker #5: Are those investments now complete ? And would you expect all other things being equal that EBITDA margins in this division would now recover ?

Speaker #5: And then secondly , just to press you a little bit more on acquisition strategy and targets , I know you can't give any precise details , but can you perhaps say anything on geographies and perhaps verticals ?

Rhys Summerton: Yes, sir. Thanks. I'll give the question to you, the first one to Steve, and I'll take the second one.

Speaker #5: Thank you

Speaker #3: Thanks . Thanks . I'll give the question to you . The first one to Steve , and I'll take the second one .

Steven Leonard: Yeah. In the quarter, in Q4, we had a little bit of, as we highlighted, some unusual items in the period on SG&A. We decided in 2025 to invest in our sales team, in our getting to markets and establishing presence in different markets. That has had a bit of a downward impact on EBITDA margins in 2025. That work is done. We don't expect to be growing the sales force anymore, and we're starting to see some of the work that's been done behind that coming through for 2026. We're expecting better margins in 2026.

Speaker #4: Yeah . So in the quarter , in the fourth quarter , we had a little bit of as we highlighted , some some unusual items in the in the , in the , in the period on S , G and A , but we , we decided in 25 to invest in our , in our sales team , in our getting to markets and establishing presence in different markets .

Speaker #4: So that has had a bit of a downward impact on EBITDA margins in 25 . That that work is done . We don't expect to be growing the sales force anymore .

Speaker #4: And we're starting to see some of the work that's been done behind that coming through for '26. So we're expecting better, better margins in '26.

Rhys Summerton: Thanks, Steve. The second question, some geographic indication of where we might make acquisitions. We look for value anywhere in the world. At the moment, you know, we've said it many times that the UK we think offers the best risk-reward of any place that we look at. The opportunities to deploy some of the capital in the short term I think would make sense if valuations stayed where they are today. In the UK, that's where we see, you know, tremendous value. Balance sheets are not only strong, there's opportunities with companies with net cash on the balance sheet. There's good management teams. You don't overpay for management through SBC, which you get in the US. We think it's a really good place to hunt for acquisitions.

Speaker #3: Thanks , Steve . The second question . Some geographic indication of of where we might make acquisitions . We look for value anywhere in the world and at the moment , you know , we've said it many times that the UK , we think offers the best risk reward of any place that we look at .

Speaker #3: So, the opportunities to deploy some of the capital in the short term, I think, would make sense if valuations stayed where they are today in the UK. That's where we see tremendous value.

Speaker #3: Balance sheets are not only—there are opportunities with companies with net cash on the balance sheet. There are good management teams. You don't overpay for management through SBC, which you get in the US.

Speaker #3: So we think it's a really good place to to hunt for acquisitions . We also know the market very well . But that's that's kind of stage one , stage two as we get bigger and the investments work out , we would need to then look Canada and , and the US to utilize those tax losses .

Rhys Summerton: We also know the market very well. That's kind of stage one. Stage two, as we get bigger and the investments work out, we would need to then look at Canada and the US to utilize those tax losses. You know, to give you sort of a roadmap, we would say stage one, look at things that have exposure to really the cheapest valuations with the best management, and highest quality companies. Stage two, hopefully the US market sees some normality and valuations correct, and we'll be very well placed to start executing on an acquisition strategy in the US, and here in Canada.

Speaker #3: So , you know , to give you sort of a roadmap , we would say stage one , look at things that have exposure to , to really , you know , the cheapest valuations with the best management and highest quality companies and stage two , hopefully the US market sees some normality and valuations correct .

Speaker #3: And we'll be very well placed to start executing on acquisition strategy in the US, and here in Canada.

Rob Sherwood: Oh, that's great. Thanks very much.

Rhys Summerton: Thank you.

Speaker #5: Oh that's great . Thanks very much .

Operator: Ladies and gentlemen, a reminder to please press star one should you have any questions. Thank you. At this time, Mr. Racanelli, it appears we have no other questions registered. Please proceed.

Speaker #3: Thank you

Speaker #1: Ladies and gentlemen . A reminder to please press star . One . Should you have any questions . Thank you And at this time , Mr. Li , it appears we have no other questions registered .

Joseph Racanelli: Great. Thank you again everyone for joining us. As mentioned, there are a couple of things to take note of, our upcoming AGM in May. As well, if there are any additional questions as you review our material, please, reach out to us. We'll be happy to answer any questions that you may have. Thank you again.

Joe Racanelli: Great. Thank you again everyone for joining us. As mentioned, there are a couple of things to take note of, our upcoming AGM in May. As well, if there are any additional questions as you review our material, please, reach out to us. We'll be happy to answer any questions that you may have. Thank you again.

Speaker #1: Please proceed .

Speaker #2: Great . Thank you again , everyone , for joining us . As mentioned , there are a couple of things to take note of our upcoming AGM in May , and as well , if there are any additional questions as you review your material , please reach out to us .

Speaker #2: We'll be happy to answer any questions that you may have. Thank you again.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines. Enjoy the rest of your day.

Speaker #1: Thank you sir . Ladies and gentlemen , this does indeed conclude your conference call for today . Once again , thank you for attending .

Speaker #1: And at this time, we do ask that you please disconnect your lines. Enjoy the rest of your day.

Q4 2025 Aimia Inc Earnings Call

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