Aimia reports third quarter results

Coalition Programs Drive Strong Free Cash Flow Performance

• EMEA posts fifth consecutive quarter of double digit gross billings growth
• Canadian region delivers solid financial performance despite a slowdown in consumer spending
• i2c joint venture formed with Sainsbury's
• Acquisition of Excellence in Motivation (EIM) enhances full suite product portfolio and geographic presence in the US market
• Agreement reached for acquisition of additional 20 per cent in Club Premier
• Minority investment in China Rewards provides strategic entrance into key growth market
• 2012 guidance confirmed; now expecting consolidated Adjusted EBITDA and Free Cash Flow at or above the top end of the target ranges

THIRD QUARTER HIGHLIGHTS	Three Months Ended September 30,		Year Over Year ^3
(in millions of Canadian dollars, except per share amounts)	2012	2011	per cent Change
	As Reported		As Reported	Constant Currency^1
Gross Billings	537.0	541.8	(0.9)	(0.7)
Total Revenue	498.8	501.4	(0.5)	(0.4)
Net Earnings	29.8	25.1	18.5	na
Earnings per Common Share	0.15	0.13	15.4	na
Adjusted EBITDA^2	93.6	104.2	(10.2)	(9.8)
Free Cash Flow before Dividends Paid ^2	129.9	124.8	4.1	na

^1	Constant currency excludes the translation effect of foreign operations on consolidated results. For more information on constant currency, please refer to the Use of Non-GAAP Financial Information section of this news release.
^2	A non-GAAP financial measurement. Please refer to the Use of Non-GAAP Financial Information section of this news release.
^3	Discrepancies in variances may arise due to rounding.

 

MONTREAL, Nov. 8, 2012 /CNW Telbec/ - (TSX: AIM) Aimia today reported its financial results for the third quarter ended September 30, 2012. All financial information is in Canadian dollars unless otherwise noted.

"We have been very successful in our pursuit of global growth," said Rupert Duchesne, Group Chief Executive. "We recently announced several important initiatives that will support and strengthen our strategic vision as the recognized world leader in loyalty management, including an agreement with Grupo Aeromexico to increase our ownership in Club Premier by an additional 20 per cent and the acquisition of Excellence in Motivation. Critical to all of this is the continued strength of our existing businesses."

Third Quarter Highlights (Period ended September 30, 2012 versus period ended September 30, 2011)

Consolidated - A Solid Quarter - Record Nine Month Performance - On Track For Guidance

• Third quarter Gross Billings of $537.0 million, a decrease of 0.9 per cent or 0.7 per cent on a constant currency basis
• Nine month Gross Billings of $1.6 billion, an increase of 1.0 per cent or 0.8 per cent on a constant currency basis
• For the quarter, the decrease in Gross Billings was due to lower Gross Billings from proprietary loyalty services, offset in part by the strong performance from coalition loyalty programs in the EMEA region
• Adjusted EBITDA of $93.6 million in the quarter, a decrease of 10.2 per cent
• Nine month record Adjusted EBITDA of $284.1 million, an increase of 12.5 per cent versus the comparable period in 2011
• Adjusted EBITDA in the third quarter 2011 was favourably affected by the impact of a $4.9 million revision of an estimate associated with online store activities. In addition, Adjusted EBITDA in 2012 includes $1.8 million of EIM acquisition-related costs

Canada - Operating Leverage Continues To Drive Performance

• Third quarter Gross Billings of $311.1 million compared with $321.3 million in the same period of 2011, a decrease of 3.2 per cent
• Gross Billings decrease in the third quarter due to reduced volumes in the proprietary loyalty financial vertical, a decrease in airline partner activity including a reduction in accumulation at Air Canada and offset in part by an increase in financial partner activity reflecting an increase in the number of active credit cards despite a decrease in spend per credit card due to weakening economic conditions
• Adjusted EBITDA of $91.7 million in the third quarter, a decrease of 7.9 per cent compared to the prior year period
• Adjusted EBITDA was negatively impacted by a higher redemption cost per Aeroplan Mile due to reinvestment in the value proposition related to promotional activities in the quarter
• Aeroplan Miles issued decreased by 0.6 per cent in the quarter, while total Aeroplan Miles redeemed increased 2.4 per cent in the quarter compared to the same period in 2011

Europe, Middle East & Africa (EMEA) - Fifth Consecutive Quarter of Double Digit Gross Billings Growth - Strong Momentum Continues

• Third quarter Gross Billings of $160.8 million, an increase of 14.9 per cent or 16.3 per cent on a constant currency basis
• Adjusted EBITDA of $17.2 million in the quarter, an increase of 0.3 per cent or 2.7 per cent on a constant currency basis
• Nectar UK points issued in the third quarter increased by 10.5 per cent compared to the same period in 2011, driven by strong underlying growth at Sainsbury's and British Gas, as well as growth from new sponsors
• During the quarter Nectar UK announced a major new partnership with eBay, the UK's largest online marketplace with 17 million unique monthly visitors. Nectar card holders will be able to collect points automatically when they shop on eBay.
• Redemption activity for the Nectar Program increased by 10.0 per cent in the quarter mainly driven by an increase in the number of Nectar Points in circulation
• In the third quarter, Nectar Italia points issued increased by 7.3 per cent, while Nectar Italia points redeemed increased significantly consistent with members having increased availability of points in their accounts and the program's growth
• Gross Billings for Intelligent Shopper Solutions (ISS) increased by 22.4 per cent resulting from growth in existing international contracts as well as services provided in the UK
• During the quarter Aimia announced the creation of a new joint venture with Sainsbury's. The new venture, to be known as i2c, will offer suppliers more comprehensive multi-channel marketing solutions in and around Sainsbury's stores and online.

US & Asia Pacific - US Stabilized But Still Challenging - Strategic Initiatives To Drive Growth

• Third quarter Gross Billings of $66.4 million, a decrease of 18.8 per cent or 19.7 per cent on a constant currency basis compared to the same period of 2011. Excluding the impact of the Qantas exit, Gross Billings were down 4.9 per cent or 5.9 per cent on a constant currency basis
• Third quarter Adjusted EBITDA of $(0.7) million. Excluding EIM acquisition-related costs of $1.8 million, Adjusted EBITDA would have been $1.1 million in the quarter
• The US continues to be an extremely challenging environment, however, the region is making good strides in terms of stabilizing, repositioning and focusing on higher value-add strategic loyalty services
• Strategic initiatives undertaken:
• EIM acquisition expands the full suite product portfolio and geographic presence in the US market
• agreement to increase Aimia's ownership in Interact from 40 per cent to 100 per cent with a $2 million investment. Interact is the leader in Indonesia's rapidly emerging loyalty sector with a solid portfolio of blue chip clients, including Nestle and Mazda
• agreement to co-invest up to $5 million each with Points International Ltd. in China Rewards. China Rewards is a new loyalty program partnered with China Union Pay, one of the world's largest network operators and the only domestic payment card in China.

Club Premier - Strong Performance Continues - Agreement Reached For Additional Investment
Club Premier continues to perform exceptionally well. It generated Gross Billings of more than US$34 million this quarter, an increase of 17 per cent over the same period last year.  Year-over-year, the number of members and commercial partners has increased by 10 per cent and 28 per cent, respectively.

On October 29, 2012, Aimia and Grupo Aeromexico announced an agreement in principle for the acquisition by Aimia of an additional 20 per cent equity participation in Premier Loyalty & Marketing, S.A.P.I. de C.V. (PLM). PLM's fair value has been established at US$518 million and Aimia will pay US$88 million which includes a discount agreed to at the time of Aimia's initial investment in PLM in September 2010. The transaction is expected to close before the end of 2012. After closing, Aimia's and Grupo Aeromexico's equity participations in PLM will approximate 49 per cent and 51 per cent respectively.

Cash Flow and Financial Position
At September 30, 2012, Aimia had $337.3 million of cash and cash equivalents, $25.3 million of restricted cash, $43.8 million of short-term investments and $312.9 million of long-term investments in bonds, for a total of $719.3 million.

Aimia's Free Cash Flow (before dividends paid) was $129.9 million for the third quarter of 2012 compared to $124.8 million for the third quarter of 2011. Free Cash Flow in the quarter increased year over year primarily due to an increase in cash from operating activities including lower cash taxes and lower capital expenditures.

Dividends Declared
Common Shares
The Board of Directors declared a quarterly dividend of $0.16 per common share, payable on December 31, 2012 to shareholders of record at the close of business on December 17, 2012.

Preferred Shares
The Board also declared a quarterly dividend in the amount of $0.40625 per Cumulative Rate Reset Preferred Share, Series 1, payable on December 31, 2012 to the holders of record at the close of business on December 17, 2012.

Dividends paid by Aimia to Canadian residents on both its common and preferred shares are "eligible dividends" for Canadian income tax purposes.

2012 Outlook
We are reconfirming the 2012 guidance provided in our February 22, 2012 earnings press release, as updated on September 20, 2012.  In fact, we now expect to report consolidated Adjusted EBITDA and Free Cash Flow at or above the top end of the target ranges. However, in order to meet our outlook for Gross Billings in Canada and on a consolidated basis, we will need to finish the year on a strong note, with robust credit card spend during the holiday season. For the year ending December 31, 2012, Aimia expects to report the following:

Key Financial Metric	Target Range (February 22, 2012)	Target Range (updated September 20, 2012)	Target Range (updated November 8, 2012)
Consolidated Outlook
Gross Billings Growth^1	Between 3% and 5%	Lower end of range	No change
Adjusted EBITDA^2	Between $370 and $380 million	Upper end of range	At or above the top end of the range
Free Cash Flow^2,3	Between $220 million and $240 million	No change	At or above the top end of the range
Capital Expenditures	To approximate $55 million	No change	No change
Income Taxes	Current income tax rate is anticipated to approximate 27% in Canada and 17% in Italy. The Corporation expects no significant cash income taxes will be incurred in the rest of its foreign operations.	No change	No change
Business Segment Gross Billings Growth Outlook
Canada	Between 2% and 4%	Between 1% and 2%	No change
EMEA	Between 8% and 11%	Between 11% and 13%	No change
US & APAC^1	Between -2% and 2%	Between -9% and -7%	No change
Other
Nectar Italia	Greater than €60 million in Gross Billings	No change	No change

Notes:

1. The Gross Billings growth guidance excludes the effect of a client loss (Qantas) in APAC at the end of the first quarter of 2012. The target growth ranges are based on 2011 reported Gross Billings, excluding $40 million related to Qantas. The client loss will have a negligible impact on Adjusted EBITDA.
2. The Adjusted EBITDA and Free Cash Flow outlook range includes an assumption of planned incremental operating expenses in business development activities, principally in the U.S., India and Brazil, technology platform related expenditures that are operating in nature and additional brand related expenses associated with our new branding, which in total will approximate $20 million in 2012.
3. Free Cash Flow before dividends.

The above guidance excludes the effects of fluctuations in currency exchange rates. In addition, Aimia made a number of economic and market assumptions in preparing its 2012 forecasts, including assumptions regarding the performance of the economies in which the Corporation operates and market competition and tax laws applicable to the Corporation's operations. The Corporation cautions that the assumptions used to prepare the above forecasts for 2012, although reasonable at the time they were made, may prove to be incorrect or inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth in this news release. The outlook provided constitutes forward-looking statements within the meaning of applicable securities laws and should be read in conjunction with the "Caution Concerning Forward-Looking Statements" section.

Use of Non-GAAP Financial Information
In order to provide a better understanding of the results, the following indicators are used:

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization
EBITDA adjusted for certain factors particular to the business, such as changes in deferred revenue and Future Redemption Costs ("Adjusted EBITDA"), is used by management to evaluate performance, and to measure compliance with debt covenants. Management believes Adjusted EBITDA assists investors in comparing the Corporation's performance on a consistent basis without regard to depreciation and amortization, which are non-cash in nature and can vary significantly depending on accounting methods and non-operating factors such as historical cost.

Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to operating income or net income in measuring performance, and is not comparable to similar measures used by other issuers. For a reconciliation to GAAP, please refer to the Summary of Consolidated Operating Results and Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Earnings and Free Cash Flow included in the attached schedule. 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.

Adjusted Net Earnings
Adjusted Net Earnings provides a measurement of profitability calculated on a basis consistent with Adjusted EBITDA. Net earnings attributable to equity holders of the Corporation are adjusted to exclude Amortization of Accumulation Partners' contracts, customer relationships and technology, share of net earnings (loss) of equity-accounted investments and impairment charges. Adjusted Net Earnings includes the Change in deferred revenue and Change in Future Redemption Costs, net of the income tax effect and non-controlling interest effect (where applicable) on these items at an entity level basis.

Adjusted Net Earnings is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, and is not comparable to similar measures used by other issuers. For a reconciliation to GAAP, please refer to the Summary of Consolidated Operating Results and Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Earnings and Free Cash Flow included in the attached schedule.

Standardized Free Cash Flow ("Free Cash Flow")
Free Cash Flow is a non-GAAP measure recommended by the CICA in order to provide a consistent and comparable measurement of free cash flow across entities of cash generated from operations and is used as an indicator of financial strength and performance.

Free Cash Flow is defined as cash flows from operating activities, as reported in accordance with GAAP, less adjustments for:

(a) total capital expenditures as reported in accordance with GAAP; and
(b) dividends, when stipulated, unless deducted in arriving at cash flows from operating activities.

For a reconciliation to cash flows from operations please refer to the Summary of Consolidated Operating Results and Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Earnings and Free Cash Flow included in the attached schedule.

EBITDA and Free Cash Flow are non-GAAP measurements recommended by the CICA in accordance with the recommendations provided in their October 2008 publication, Improved Communications with Non-GAAP Financial Measures - General Principles and Guidance for Reporting EBITDA and Free Cash Flow.

Constant Currency
Because exchange rates are an important factor in understanding period to period comparisons, the presentation of various financial metrics on a constant currency basis or after giving effect to foreign exchange translation, in addition to the reported metrics, helps improve the ability to understand operating results and evaluate performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant over the periods. Constant currency is derived by calculating current-year results using prior-year foreign currency exchange rates. Results calculated on a constant currency basis should be considered in addition to, not as a substitute for, results reported in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

Q3 2012 Conference Call / Audio Webcast
Aimia will host a conference call to discuss its third quarter 2012 financial results at 8:00 a.m. ET on Friday, November 9, 2012. The call can be accessed by dialing 1-888-231-8191 or 647-427-7450 for the Toronto area. The call will be simultaneously audio webcast at: http://www.newswire.ca/en/webcast/detail/891083/950093

A slide presentation intended for simultaneous viewing with the conference call will be available the evening of November 8, 2012 at: http://www.aimia.com/English/Investors/Financial-Reports/Quarterly-Reports/default.aspx and an archived audio webcast will be available at: http://www.aimia.com/English/Investors/Presentations-and-Events/Events/default.aspx for ninety days following the original broadcast.

The consolidated financial statements, the MD&A and a financial highlights presentation will be accessible on the investor relations website at: http://www.aimia.com/English/Investors/Financial-Reports/Quarterly-Reports/default.aspx.

About Aimia

Aimia Inc. ("Aimia") is a global leader in loyalty management. Aimia's unique capabilities include proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program and Nectar, the United Kingdom's largest coalition loyalty program. In addition, Aimia has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico's leading coalition loyalty program and Cardlytics, a US-based private company operating in transaction-driven marketing for electronic banking. Aimia is a Canadian public company listed on the Toronto Stock Exchange (TSX: AIM) and has over 3,400 employees in more than 20 countries around the world. For more information about Aimia, please visit www.aimia.com.

Follow us on Twitter: http://twitter.com/#!/aimiainc.

Caution Concerning Forward-Looking Statements

Forward-looking statements are included in this news release. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions.

Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, dependency on top accumulation partners and clients, conflicts of interest, greater than expected redemptions for rewards, regulatory matters, retail market/economic conditions, industry competition, Air Canada liquidity issues, Air Canada or travel industry disruptions, airline industry changes and increased airline costs, supply and capacity costs, unfunded future redemption costs, failure to safeguard databases and consumer privacy, changes to coalition loyalty programs, seasonal nature of the business, other factors and prior performance, foreign operations, legal proceedings, reliance on key personnel, labour relations, pension liability, technological disruptions and inability to use third party software, failure to protect intellectual property rights, interest rate and currency fluctuations, leverage and restrictive covenants in current and future indebtedness, uncertainty of dividend payments, managing growth, credit ratings, as well as the other factors identified in this news release and throughout Aimia's public disclosure record on file with the Canadian securities regulatory authorities.

The forward-looking statements contained herein represent Aimia's expectations as of November 8, 2012, and are subject to change after such date. However, Aimia disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW

			Three Months Ended September 30,		Nine Months Ended September 30,		%∆
(in thousands of Canadian Dollars, except share and per share information)			2012	2011^(f)	2012	2011^(f)	Q3	YTD
Gross Billings			537,030	541,819	1,627,968	1,612,117	(0.9)	1.0
Gross Billings from the sale of Loyalty Units			398,885	384,651	1,198,895	1,135,593	3.7	5.6
Revenue from Loyalty Units			361,616	345,150	1,146,476	1,069,389	4.8	7.2
Revenue from proprietary loyalty services			104,021	128,549	334,249	404,994	(19.1)	(17.5)
Other revenue			33,144	27,713	90,014	80,839	19.6	11.3
Total revenue			498,781	501,412	1,570,739	1,555,222	(0.5)	1.0
Cost of rewards and direct costs			(285,978)	(283,733)	(888,274)	(909,086)	0.8	(2.3)
Gross margin before depreciation and amortization ^(a)			212,803	217,679	682,465	646,136	(2.2)	5.6
Depreciation and amortization			(9,407)	(8,419)	(26,412)	(24,335)	11.7	8.5
Amortization of Accumulation Partners' contracts, customer relationships and technology			(20,788)	(23,109)	(62,403)	(69,331)	(10.0)	(10.0)
Gross margin			182,608	186,151	593,650	552,470	(1.9)	7.5
Operating expenses			(131,301)	(130,867)	(413,296)	(408,332)	0.3	1.2
Amortization of Accumulation Partners' contracts, customer relationships and technology			20,788	23,109	62,403	69,331	(10.0)	(10.0)
Operating income before amortization of Accumulation Partners' contracts, customer relationships and technology			72,095	78,393	242,757	213,469	(8.0)	13.7
Depreciation and amortization			9,407	8,419	26,412	24,335	11.7	8.5
EBITDA^(a)(c)			81,502	86,812	269,169	237,804	(6.1)	13.2
Adjustments:
	Change in deferred revenue
		Gross Billings	537,030	541,819	1,627,968	1,612,117
		Revenue	(498,781)	(501,412)	(1,570,739)	(1,555,222)
	Change in Future Redemption Costs^(b)		(26,147)	(23,000)	(42,282)	(42,042)
		(Change in Net Loyalty Units outstanding x Average Cost of Rewards per Loyalty Unit for the period)
Subtotal of Adjustments			12,102	17,407	14,947	14,853
Adjusted EBITDA^(c)			93,604	104,219	284,116	252,657	(10.2)	12.5
Net earnings attributable to equity holders of the Corporation			28,210	26,066	108,355	66,589
Weighted average number of shares			172,034,083	177,253,111	172,683,579	180,956,779
Earnings per common share^(d)			0.15	0.13	0.58	0.32
Net earnings attributable to equity holders of the Corporation			28,210	26,066	108,355	66,589
Amortization of Accumulation Partners' contracts, customer relationships and technology			20,788	23,109	62,403	69,331
Share of net (earnings) loss of equity-accounted investments			(576)	669	(3,291)	(5,859)
Adjusted EBITDA Adjustments (from above)			12,102	17,407	14,947	14,853
Tax on adjustments^(e)			619	888	5,373	4,658
Non-controlling interests share on adjustments above			23	(553)	(1,354)	(1,314)
Adjusted Net Earnings^(c)			61,166	67,586	186,433	148,258	(9.5)	25.7
Adjusted Net Earnings per common share^(c)(d)			0.34	0.37	1.03	0.77
Cash flow from operations			140,436	138,604	256,873	214,918
Capital expenditures			(10,516)	(13,779)	(34,449)	(29,734)
Dividends			(30,364)	(29,056)	(89,618)	(84,581)
Free Cash Flow^(c)			99,556	95,769	132,806	100,603	4.0	32.0
Total assets			4,986,187	4,997,980	4,986,187	4,997,980
Total long-term liabilities			1,577,327	1,335,740	1,577,327	1,335,740
Total dividends			30,364	29,056	89,618	84,581
Total dividends per preferred share			0.406	0.406	1.219	1.219
Total dividends per common share			0.160	0.150	0.470	0.425

(a)		Excludes depreciation and amortization as well as amortization of Accumulation Partners' contracts, customer relationships and technology.
(b)		The per unit cost derived from this calculation is retroactively applied to all prior periods with the effect of revaluing the Future Redemption Cost liability on the basis of the latest available average unit cost.
(c)		A non-GAAP measurement.
(d)		After deducting dividends declared on preferred shares.
(e)		The effective tax rates, calculated as income tax expense / earnings before taxes for the period on an entity level basis, are applied to the related entity level adjustments noted above.
(f)		These figures do not include any effect attributable to the change in Breakage estimates made during the fourth quarter of 2011 in the Nectar and Air Miles Middle East programs.

SEGMENTED INFORMATION

At September 30, 2012, the Corporation had three reportable and operating segments: Canada, EMEA and US & APAC. The table below summarizes the relevant financial information by operating segment:

	Three months ended September 30,
(in thousands of Canadian dollars)	2012		2011^(f)		2012		2011^(f)(g)		2012		2011^(f)		2012		2011		2012		2011^(f)		2012		2011^(f)(g)
Operating Segments	Canada				EMEA				US & APAC				Corporate^(b)				Eliminations				Consolidated
Gross Billings	311,082		321,253		160,804	^(c)	139,981	^(c)	66,388	^(c)	81,780	^(c)	-		-		(1,244)		(1,195)		537,030	^(c)	541,819	^(c)
Gross Billings from the sale of Loyalty Units	262,063		265,798		136,822		118,853		-		-		-		-		-		-		398,885		384,651
Revenue from Loyalty Units	259,694		253,315		101,922		91,835		-		-		-		-		-		-		361,616		345,150
Revenue from proprietary loyalty services	35,504		42,488		3,637		5,739		64,880		80,322		-		-		-		-		104,021		128,549
Other revenue	12,944		12,393		20,200		15,320		-		-		-		-		-		-		33,144		27,713
Intercompany revenue	-		414		49		198		1,195		583		-		-		(1,244)		(1,195)		-		-
Total revenue	308,142		308,610		125,808		113,092		66,075		80,905		-		-		(1,244)		(1,195)		498,781		501,412
Cost of rewards and direct costs	167,348		162,754		84,832		72,670		33,847		49,361		-		-		(49)		(1,052)		285,978		283,733
Gross margin before depreciation and amortization	140,794		145,856		40,976		40,422		32,228		31,544		-		-		(1,195)		(143)		212,803		217,679
Depreciation and amortization ^(a)	23,381		25,297		4,389		3,423		2,425		2,808		-		-		-		-		30,195		31,528
Gross margin	117,413		120,559		36,587		36,999		29,803		28,736		-		-		(1,195)		(143)		182,608		186,151
Operating expenses before share-based compensation	51,753		54,152		32,963		31,956		33,264		33,771		11,275		9,477		(1,195)		(143)		128,060		129,213
Share-based compensation	-		-		-		-		-		-		3,241		1,654		-		-		3,241		1,654
Total operating expenses	51,753		54,152		32,963		31,956		33,264		33,771		14,516		11,131		(1,195)		(143)		131,301		130,867
Operating income (loss)	65,660		66,407		3,624		5,043		(3,461)		(5,035)		(14,516)		(11,131)		-		-		51,307		55,284
Adjusted EBITDA ^(h)	91,655		99,562		17,188		17,140		(723)		(1,352)		(14,516)		(11,131)		-		-		93,604		104,219
Additions to non-current assets ^(d)	5,878		7,301		3,271		4,818		1,367		1,660		-		-		N/A		N/A		10,516		13,779
Non-current assets ^(d)	3,205,993		3,272,133		457,567	^(e)	469,715	^(e)	76,976	^(e)	106,229	^(e)	2,246		-		N/A		N/A		3,742,782	^(e)	3,848,077	^(e)
Deferred revenue	1,779,658		1,828,179		503,282		357,446		23,385		14,146		-		-		N/A		N/A		2,306,325		2,199,771
Total assets	3,767,255		3,789,354		947,136		941,639		206,173		202,279		65,623		64,708		N/A		N/A		4,986,187		4,997,980

(a)		Includes depreciation and amortization as well as amortization of Accumulation Partners' contracts, customer relationships and technology.
(b)		Includes expenses that are not directly attributable to any specific operating segment. Corporate also includes the financial position and operating results of our operations in India, the investments in PLM, Prismah and Cardlytics.
(c)		Includes third party Gross Billings of $130.6 million in the UK and $39.0 million in the US for the three months ended September 30, 2012, compared to third party Gross Billings of $116.1 million in the UK and $43.9 million in the US for the three months ended September 30, 2011. Third party Gross Billings are attributed to a country on the basis of the country where the contractual and management responsibility for the customer resides.
(d)		Non-current assets includes amounts relating to goodwill, intangible assets and property and equipment.
(e)		Includes non-current assets of $407.6 million in the UK and $70.4 million in the US as of September 30, 2012, compared to non-current assets of $417.0 million in the UK and $100.0 million in the US as of September 30, 2011.
(f)		Intercompany revenue and expenses related to the comparative period have been reclassified to conform with the presentation adopted in the current period.
(g)		These figures do not include any effect attributable to the change in Breakage estimates made during the fourth quarter of 2011 in the Nectar and Air Miles Middle East programs.
(h)		A non-GAAP measurement.

 

 

SOURCE: AIMIA

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