MONTREAL, QUEBEC -- (Marketwire) -- 02/22/12 -- (TSX: AIM)
-- Record Gross Billings and Adjusted EBITDA driven by solid performance in
Canada and EMEA
-- Seven year contract renewal signed with anchor coalition partner
Sainsbury's in the UK
-- Contract extension signed with HSBC, anchor partner in the Middle East
Region
-- 2012 outlook calls for growth in both top line and Adjusted EBITDA along
with further investment in global footprint
-- Results impacted by $54 million non-cash goodwill impairment charge
taken against US operations and $136 million non-cash Breakage
adjustment in the EMEA region
Quarter Ended Year Ended
HIGHLIGHTS December 31, December 31,
(in millions, except per share
amounts) 2011 2010 2011 2010
----------------------------------------
$ $ $ $
Gross Billings(1) 621 594 2,233 2,188
Gross Billings Growth Rate in
Constant Currency(2) 4.2% 3.1%
Total Revenue(3) 561 619 2,116 2,056
Total Revenue excluding Breakage
Adjustments(3,5) 697 619 2,252 2,056
Net Earnings (Loss)(4) (143) (3) (77) 8
Net Earnings (Loss) per Common
Share(3, 4) (0.74) (0.03) (0.40) 0.02
Net Earnings (Loss) excluding
Breakage Adjustment and Impairment
of Goodwill(3,4,5) 43 (3) 108 8
Net Earnings (Loss) per Common Share
excluding Breakage Adjustment and
Impairment of Goodwill(3,4,5) 0.18 (0.03) 0.55 0.02
Adjusted EBITDA(1,3,5) 90 85 342 286
Adjusted EBITDA excluding Breakage
Adjustment(1,3,5) 100 85 353 286
Free Cash Flow before Dividends Paid
per Common Share(5) 0.06 0.42 1.04 1.08
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1 The year ended December 31, 2010 includes the positive effect of a
$17.4 million adjustment as a result of a reclassification of deferred
revenue amounts previously included in customer deposits.
2 Gross Billings growth calculated excluding the $17.4 million adjustment
recorded in the second quarter in 2010 and in constant currency.
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.
3 Adjustments to the Breakage estimates related to the Nectar and Air
Miles Middle East programs as a result of the contract renewal and
extension resulted in a reduction of $136.0 million to revenue from
Loyalty Units, with $113.3 million being attributable to prior years
and $22.7 million to the 2011 year (including $8.9 million attributable
to the fourth quarter of 2011). The net full year impact to Adjusted
EBITDA was $10.4 million recorded in the fourth quarter of 2011.
4 A goodwill impairment charge of $49.4 million ($53.9 million charge,
net of a tax recovery of $4.5 million) related to the US proprietary
loyalty cash generating unit was recorded in the fourth quarter of
2011.
5 A non-GAAP measurement, please refer to the Use of Non-GAAP Financial
Information section of this news release.
Aimia (TSX: AIM) today reported its financial results for the fourth quarter and year ended December 31, 2011. All financial information is in Canadian dollars unless otherwise noted.
"2011 was a record year on several fronts" said Rupert Duchesne, President and Chief Executive Officer. "Our Canadian and EMEA regions, fueled by the performance of our cornerstone coalition programs of Aeroplan and Nectar, posted record results and further advanced their leading positions in their respective markets. There were, of course, challenges given the weakness in many economies around the globe and we have taken aggressive action, particularly in the US, to ensure our long-term success. Most importantly, our company is well positioned to achieve our long-term growth objectives."
Added Duchesne, "In 2011, we launched our new brand and global identity, signaling to the market that we are fully aligned and mobilized to deliver increased value as well as fuel our growth as the recognized global leader in loyalty. The key contract renewals announced today with Sainsbury's and HSBC, as well as the strategic initiatives undertaken throughout the year, including our global partnership with Cardlytics and joint ventures with The TATA Group in India and Multiplus in Brazil, position us for significant growth in the coming years."
Fourth Quarter and Year End Financial Highlights
Consolidated - Strong Underlying Operating Performance
-- Fourth quarter Gross Billings of $621.1 million, an increase of 4.6 per
cent or 4.2 per cent on a constant currency basis compared with the same
period in 2010; Full year 2011 Gross Billings of $2.233 billion, an
increase of 2.1 per cent or 2.3 per cent on a constant currency basis
over 2010. Excluding the $17.4 million reclassification adjustment
recorded in the second quarter of 2010, full year Gross Billings
increased 2.9 per cent or 3.1 per cent on a constant currency basis
-- Record year despite challenging global economic environment with Gross
Billings growth driven by strong performance in Aeroplan and Nectar
coalition programs
-- Adjusted EBITDA of $90 million ($100.4 million excluding Breakage
adjustment) in the fourth quarter, an increase of 5.3 per cent (17.4 per
cent excluding Breakage adjustment) compared to the same period in 2010;
Full year Adjusted EBITDA of $342.2 million ($352.6 million excluding
Breakage adjustment), an increase of 19.9 per cent (23.5 per cent
excluding Breakage adjustment) over 2010
-- In the fourth quarter of 2011, the Adjusted EBITDA margin (excluding the
Breakage adjustment) improved to 16.2 per cent from 14.4 per cent in the
same period in 2010. For the year, the Adjusted EBITDA margin (excluding
the Breakage adjustment) rose by 274 basis points reflecting synergies
realized from the acquisition of Carlson Marketing and prudent cost
management
Canada - Record Performance for the Year
-- Fourth quarter Gross Billings of $335.0 million compared with $336.3
million in the same period in 2010; Gross Billings of $1,299.5 million
for the full year 2011, an increase of 4.1 per cent over 2010
-- Adjusted EBITDA of $98.7 million in the fourth quarter, an increase of
3.3 per cent compared to the same period in 2010; Full year Adjusted
EBITDA of $372.6 million, an increase of 10.2 per cent over 2010
-- Record Gross Billings for the year at Aeroplan with an increase of $45.7
million resulting from increased financial partner activity due to an
increase in the number of active credit cards, an increase in average
consumer spend per active credit card, an increase in airline partner
activity, the positive contribution from an Aeroplan Miles conversion
promotion campaign, continued growth in the retail sector and a recovery
in the travel segment. Fourth quarter Gross Billings growth of $3.1
million resulted from increased financial partner activity due to an
increase in number of active credit cards and a positive contribution
from an Aeroplan Miles conversion program offset by a decrease in
activity in the airline sector
-- For both the year and fourth quarter, Aeroplan posted improved margins
due to reward mix, cost containment and the benefit of synergies
-- Aeroplan Miles issued increased by 1.5 per cent in the quarter and 4.0
per cent for the year
-- Total Aeroplan Miles redeemed increased by 18.3 per cent in the quarter
and 13.7 per cent for the year driven primarily by the introduction of a
new air redemption product and an increase in non-air redemptions
-- Gross Billings for the year within the Proprietary Loyalty Services
operations (formerly Carlson Marketing Canada) increased 3.1 per cent
driven by growth in the financial vertical while margins improved due to
mix and the benefit of synergies. There were $83.5 million of
intercompany billings to Aeroplan in 2011
Europe, Middle East & Africa (EMEA) - Solid Progress
-- Fourth quarter Gross Billings of $172.8 million, an increase of 23.1 per
cent or 22.2 per cent on a constant currency basis compared with the
same period in 2010; Full year 2011 Gross Billings of $571.0 million, an
increase of 13.6 per cent or 14.2 per cent on a constant currency basis
over 2010
-- Adjusted EBITDA of $6.2 million in the fourth quarter, an increase of
$3.5 million compared to fourth quarter 2010; Full year Adjusted EBITDA
of $28.2 million, versus a loss of $18.3 million in 2010
-- Nectar Points issued in the fourth quarter increased by 20.1 per cent
compared to the same period in 2010, driven by strong underlying growth
and greater bonusing activity in the grocery sector, and higher issuance
in the energy sector as a result of new program partner, British Gas;
For the year, Nectar Points issued increased by 9.1 per cent compared to
the same period in 2010, driven by strong underlying growth and the 11
month inclusion of new program partner, British Gas
-- Redemption activity for the Nectar Program increased by 11.0 per cent in
the quarter and by 8.4 per cent for the year, mainly driven by an
increase in the number of Nectar Points in circulation and the continued
popularity of online rewards
-- In the fourth quarter, Nectar Italia Gross Billings increased by $3.2
million or 17.1 per cent, while Nectar Italia Points issued increased by
10.9 per cent in comparison to the prior period as the program continued
to grow in its second year of operations
-- For the year, Nectar Italia Gross Billings increased by $11.4 million or
18.5 per cent, while Nectar Italia Points issued increased by 8.3 per
cent in comparison to the prior period
-- Within the Loyalty Analytics services, Intelligent Shopper Solutions
(ISS) posted a revenue increase of 82.8 per cent in the fourth quarter
and 59.8 per cent for the year driven by increased activity in the UK
and international expansion of ISS services
-- Sainsbury's Contract Renewal & HSBC Contract Extension: As announced
earlier today (see February 22, 2012 press release titled "Aimia
announces renewal of contract with anchor coalition partner Sainsbury's
in the UK and the extension of its contract with HSBC in the Middle East
region"), Aimia has signed a long-term contract renewing its agreement
with founding coalition partner Sainsbury's for its participation in
Nectar, the UK's largest loyalty coalition program. As part of the
renewal, Sainsbury's is extending its commitment to the program to
secure an even higher level of engagement and value for Nectar members.
At the same time, the Corporation announced that it has extended its
agreement with anchor partner HSBC for its participation in the Air
Miles Middle East program. Similarly, HSBC will also be increasing its
investment in the Air Miles Middle East program to provide its customers
with an improved value proposition. Aimia is reducing its estimates of
the long term Breakage rates for the Nectar and Air Miles Middle East
programs to reflect these higher levels of engagement. On a go forward
annual basis, the net impact of the renewed commercial terms and the
reduction in the Breakage rates will be accretive to Adjusted EBITDA and
Free Cash Flow. Sainsbury's will repay the GBP 40 million promissory
note due to Nectar on July 1, 2012. The GBP 40 million will form part of
Nectar's redemption reserve, replacing the loan note.
-- Breakage Adjustments: The impact of the adjustments resulting from the
changes to the Breakage rate estimates for each of the programs is a
reduction of $136.0 million to revenue from Loyalty Units, with $113.3
million being attributable to prior years and $22.7 million to the
current year (including $8.9 million attributable to the fourth quarter
of 2011). Of the total adjustment, $95.2 million is attributable to the
Nectar Program and $40.8 million to the Air Miles Middle East program.
The net full year impact to Adjusted EBITDA was $10.4 million recorded
in the fourth quarter 2011.
US & Asia Pacific - Right-sizing, Restructuring and Positioned for Market Recovery
-- Fourth quarter Gross Billings of $113.3 million, a decrease of 3.1 per
cent or 4.3 per cent on a constant currency basis compared to the same
period in 2010; Gross Billings of $362.7 million for the full year 2011,
a decrease of 16.9 per cent or 16.5 per cent on a constant currency
basis compared with 2010
-- Fourth quarter Adjusted EBITDA loss of $2.5 million, compared to
Adjusted EBITDA of $0.2 million in 2010. Full year 2011 Adjusted EBITDA
loss of $11.6 million, compared to Adjusted EBITDA of $15.8 million in
2010.
-- Results continued to be negatively impacted by the phasing out of a
portion of the Visa business in the US ($55.9 million in Gross Billings
for the year) as well as weakness in the US economy. In 2011, $11.8
million in restructuring and reorganization charges were incurred
related to the right-sizing of the US operation.
-- Goodwill Impairment Charge: The Corporation recorded a goodwill
impairment charge of $53.9 million for the year ending December 31, 2011
related to its US proprietary loyalty cash generating unit (CGU). The
impairment charge in the US CGU relates to the prevailing weakness in
the US economy which impacts consumer and marketing spending in the key
business verticals where the Corporation operates. After consideration
of these factors, projected Gross Billings and Adjusted EBITDA have been
reduced, resulting in lower projected cash flows.
Cash Flow and Financial Position
At December 31, 2011, Aimia had $202.1 million of cash and cash equivalents, $15.1 million of restricted cash, $58.4 million of short-term investments and $279.7 million of long-term investments in bonds, for a total of $555.3 million.
Aimia's Free Cash Flow (before dividends paid) was $197.6 million at year end 2011 compared to $221.2 million in 2010. As anticipated, Free Cash Flow was lower in the year due to higher redemptions in all loyalty programs, funding of prepaid cards, and higher inventory related to in-sourcing of non-air rewards.
Normal Course Issuer Bid
On May 12, 2011, Aimia received approval from the Toronto Stock Exchange and announced the renewal of its Normal Course Issuer Bid (NCIB) to repurchase up to 18,001,792 of its issued and outstanding common shares during the period from May 16, 2011 to May 13, 2012. Total common shares repurchased and cancelled during the period from May 16, 2011 to December 31, 2011, pursuant to the NCIB, amounted to 6,262,800 for a total cash consideration of $75.8 million.
Dividends Declared
Common Shares
The Board of Directors declared a quarterly dividend of $0.15 per common share, payable on March 30, 2012 to shareholders of record at the close of business on March 16, 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 March 30, 2012 to the holders of record at the close of business on March 16, 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
For the year ending December 31, 2012, Aimia expects to report the following:
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Key Financial Metric Target Range
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Consolidated Outlook
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Gross Billings Growth (1) Between 3% and 5%
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Adjusted EBITDA(2) Between $370 and $380 million
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Free Cash Flow (2,3) Between $220 million and $240 million
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Capital Expenditures To approximate $55 million
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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.
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Business Segment Gross Billings Growth Outlook
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Canada Between 2% and 4%
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EMEA Between 8% and 11%
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US & APAC(1) Between -2% and 2%
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Other
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Nectar Italia Greater than EUR60 million in Gross
Billings
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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 PLM 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 draft recommendations provided in their February 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.
Q4 2011 Conference Call / Audio Webcast
Aimia will host a conference call to discuss its fourth quarter 2011 financial results at 8:00 a.m. ET on Thursday, February 23, 2012. The call can be accessed by dialing 1-800-931-6427 or 416-981-9000 for the Toronto area. The call will be simultaneously audio webcast at: http://www.gowebcasting.com/events/aimia/2012/02/23/aimia-q4-2011-conference-call/play.
A slide presentation intended for simultaneous viewing with the conference call will be available the evening of February 22, 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 audited 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
Groupe Aeroplan Inc., doing business as Aimia ("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 merchant-funded transaction-driven marketing for electronic banking.
Aimia is a Canadian public company listed on the Toronto Stock Exchange (TSX: AIM) and has over 3,800 employees in more than 20 countries around the world. For more information about Aimia, please visit www.aimia.com.
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 February 22, 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
Years ended December 31, 2011 and 2010
For the years ended Year over
December 31, year % delta
(in thousands,
except share 2011 2010
and per share over over
information) 2011(a) 2010(a) 2009(b)(o) 2010 2009
$ $ $
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Gross Billings 2,233,226 2,187,753 (l) 1,447,322 2.1 51.2
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Gross Billings
from the sale
of Loyalty
Units 1,560,801 1,457,751 1,363,010 7.1 7.0
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Revenue from
Loyalty Units 1,433,747 (c) 1,352,802 1,352,527 6.0 0.0
Revenue from
proprietary
loyalty
services 567,258 610,580 - (7.1) 100.0
Other revenue 114,900 92,853 84,312 23.7 10.1
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Total revenue 2,115,905 (c) 2,056,235 1,436,839 2.9 43.1
Cost of
rewards and
direct costs (1,332,874) (1,295,282) (d) (903,060) 2.9 43.4
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Gross margin
before
depreciation
and
amortization(e
) 783,031 (c) 760,953 533,779 2.9 42.6
Depreciation
and
amortization (36,033) (32,454) (19,280) 11.0 68.3
Amortization
of
Accumulation
Partners'
contracts,
customer
relationships
and
technology (93,474) (90,308) (80,246) 3.5 12.5
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Gross margin 653,524 (c) 638,191 (d) 434,253 2.4 47.0
Operating
expenses (612,548) (m) (542,593) (d) (270,489) 12.9 100.6
Amortization
of
Accumulation
Partners'
contracts,
customer
relationships
and
technology 93,474 90,308 80,246 3.5 12.5
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Operating
income before
amortization
of
Accumulation
Partners'
contracts,
customer
relationships
and
technology 134,450 (c)(m) 185,906 (d) 244,010 (27.7) (23.8)
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Depreciation
and
amortization 36,033 32,454 19,280 11.0 68.3
Impairment of
goodwill 53,901 - - 100.0 0.0
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EBITDA
(e)(g)(n) 224,384 (c) 218,360 (d) 263,290 2.8 (17.1)
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Adjustments:
Change in
deferred
revenue
Gross
Billings 2,233,226 2,187,753 (l) 1,447,322
Revenue (2,115,905) (c) (2,056,235) (1,436,839)
Change in
Future
Redemption
Costs (f) 472 (i) (64,344) 7,861
(Change in
Net Loyalty
Units
outstanding
x Average
Cost of
Rewards per
Loyalty
Unit for
the year)
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Subtotal of
Adjustments 117,793 67,174 18,344
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Adjusted
EBITDA (g) 342,177 (i) 285,534 (d)(l) 281,634 19.8 1.4
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Net earnings
attributable
to equity
holders of
the (c)(j)
Corporation (59,678) (m) 14,923 (d)(j) 89,275
Weighted
average
number of
shares 179,146,339 194,748,024 199,443,084
Earnings per
common (c)(j)
share(h) (0.40) (m) 0.02 (d)(j) 0.45
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Net earnings
attributable
to equity
holders of
the (c)(j)
Corporation (59,678) (m) 14,923 (d)(j) 89,275 (499.9) (83.3)
Amortization
of
Accumulation
Partners'
contracts,
customer
relationships
and
technology 93,474 90,308 80,246
Share of net
loss of PLM 4,444 - -
Impairment of
goodwill 53,901 - -
Adjusted
EBITDA
Adjustments
(from above) 117,793 67,174 18,344
Tax on
adjustments
(k) 6,273 (10,918) (3,303)
Non-
controlling
interests
share on
adjustments
above (18,042) (5,314) (2,505)
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Adjusted net (d)(j)
earnings (g) 198,165 (i)(j) 156,173 (l) 182,057 26.9 (14.2)
Adjusted net
earnings per
common share (d)(j)
(g)(h) 1.04 (i)(j) 0.75 (l) 0.91
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Net earnings
attributable
to equity
holders of
the (c)(j)
Corporation (59,678) (m) 14,923 (d)(j) 89,275
Earnings per
common (c)(j)
share(h) (0.40) (m) 0.02 (d)(j) 0.45
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Cash flow from
operations 242,541 268,105 288,489 (9.5) (7.1)
Capital
Expenditures (44,919) (46,877) (23,469)
Dividends (113,481) (107,577) (99,988)
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Free cash flow
(g) 84,141 113,651 165,032 (26.0) (31.1)
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Total assets 4,931,733 5,140,964 5,217,992
Total long-
term
liabilities 1,313,201 1,621,735 1,618,201
Total
dividends 113,481 107,577 99,988
Total
dividends per
preferred
share 1.625 1.530 N/A
Total
dividends per
common share 0.575 0.500 0.500
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(a) Reported under IFRS.
(b) Reported under previous Canadian GAAP
(c) Includes the impact of the adjustments to the Breakage estimates
related to the Nectar and Air Miles Middle East programs, which
resulted in a reduction of $136.0 million to revenue from Loyalty
Units, with $113.3 million being attributable to prior years and $22.7
million to the 2011 year. Of the total adjustment, $95.2 million is
attributable to the Nectar program and $40.8 million to the Air Miles
Middle East program.
(d) Includes the non comparable effect of a $17.4 million (GBP 10.9
million) net charge to earnings recognized as a result of the ECJ VAT
Judgment for the year ended December 31, 2010. Of this amount, $53.1
million (GBP 33.4 million), representing input tax credits
attributable to the period from 2002 to 2009 (of which $5.4 million
(GBP 3.4 million) relates to 2009 and $47.7 million (GBP 30.0 million)
relates to the period from 2002 to 2008), was charged to cost of
rewards and $1.6 million (GBP 1.0 million) to operating expenses.
Operating expenses were also reduced by the reversal of a provision of
$7.2 million (GBP 4.5 million) payable to certain employees in the
event of a favourable VAT outcome and by the release of the contingent
consideration of $30.1 million (GBP 19.0 million) related to the LMG
acquisition following the unfavourable ECJ VAT Judgment.
(e) Excludes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology.
(f) 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.
(g) A non-GAAP measurement.
(h) After deducting dividends paid on preferred shares in 2011 and 2010.
(i) The Change in Future Redemption costs for the year ended December 31,
2011 includes the unfavourable impact resulting from the adjustments
to the Breakage estimates related to the Nectar and Air Miles Middle
East programs amounting to $15.8 million.
(j) Interest expense for the period includes the effect of a net charge
recognized as a result of the ECJ VAT Judgment amounting to $4.4
million (GBP 2.8 million) for the year ended December 31, 2011
compared to $7.2 million (GBP 4.5 million) for the year ended December
31, 2010.
(k) 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.
(l) Includes the positive effect of a $17.4 million adjustment, as a
result of a reclassification of deferred revenue amounts previously
included in customer deposits.
(m) Includes a goodwill impairment charge amounting to $53.9 million
related to our US Proprietary Loyalty cash-generating unit.
(n) Excludes the goodwill impairment charge.
(o) These figures do not include any effect related to the adverse impact
of the ECJ VAT Judgment.
Three months ended December 31, 2011 and 2010
Three months ended
December 31, % delta
(in thousands, except share
and per share information) 2011 2010 Q4
$ $
----------------------------------------------------------------------------
Gross Billings 621,109 593,617 4.6
----------------------------------------------------------------------------
Gross Billings from the
sale of Loyalty Units 425,208 394,698 7.7
----------------------------------------------------------------------------
Revenue from Loyalty Units 364,358 (f) 426,999 (14.7)
Revenue from proprietary
loyalty services 162,264 166,802 (2.7)
Other revenue 34,061 24,778 37.5
----------------------------------------------------------------------------
Total revenue 560,683 (f) 618,579 (9.4)
Cost of rewards and direct
costs (423,788) (392,348) 8.0
----------------------------------------------------------------------------
Gross margin before
depreciation and
amortization(a) 136,895 (f) 226,231 (39.5)
Depreciation and
amortization (11,698) (10,258) 14.0
Amortization of
Accumulation
Partners'contracts,
customer relationships and
technology (24,143) (20,300) 18.9
----------------------------------------------------------------------------
Gross margin 101,054 (f) 195,673 (48.4)
Operating expenses (204,216) (i) (146,606) 39.3
Amortization of
Accumulation
Partners'contracts,
customer relationships and
technology 24,143 20,300 18.9
----------------------------------------------------------------------------
Operating income (loss)
before amortization of
Accumulation Partners'
contracts, customer
relationships and
technology (79,019) (f)(i) 69,367 (213.9)
----------------------------------------------------------------------------
Depreciation and
amortization 11,698 10,258 14.0
Impairment of goodwill 53,901 - 100.0
----------------------------------------------------------------------------
EBITDA (a)(c)(j) (13,420) (f) 79,625 (116.9)
----------------------------------------------------------------------------
Adjustments:
Change in deferred revenue
Gross Billings 621,109 593,617
Revenue (560,683) (f) (618,579)
Change in Future Redemption
Costs (b) 42,972 (g) 30,810
(Change in Net Loyalty
Units outstanding x
Average Cost of Rewards
per Loyalty Unit for the
period)
----------------------------------------------------------------------------
Subtotal of Adjustments 103,398 5,848
----------------------------------------------------------------------------
Adjusted EBITDA (c) 89,978 (g) 85,473 5.3
----------------------------------------------------------------------------
Net earnings attributable
to equity holders of the
Corporation (126,267)(f)(h)(i) (3,186) (h)
Weighted average number of
shares 173,774,352 187,291,363
Earnings per common share
(d) (0.74)(f)(h)(i) (0.03) (h)
----------------------------------------------------------------------------
Net earnings attributable
to equity holders of the
Corporation (126,267)(f)(h)(i) (3,186) (h)(3,863.2)
Amortization of
Accumulation Partners'
contracts, customer
relationships and
technology 24,143 20,300
Share of net loss of PLM 10,303 -
Impairment of goodwill 53,901 -
Adjusted EBITDA Adjustments
(from above) 103,398 5,848
Tax on adjustments (e) 405 860
Non-controlling interests
share on adjustments above (26,372) (1,246)
----------------------------------------------------------------------------
Adjusted net earnings (c) 39,511 (f)(g)(h) 22,576 (h) 75.0
Adjusted net earnings per
common share (c)(d) 0.21 (f)(g)(h) 0.11 (h)
----------------------------------------------------------------------------
Net earnings attributable
to equity holders of the
Corporation (126,267)(f)(h)(i) (3,186) (h)
Earnings per common share
(d) (0.74)(f)(h)(i) (0.03) (h)
----------------------------------------------------------------------------
Cash flow from operations 27,623 97,355 (71.6)
Capital Expenditures (15,185) (15,861)
Dividends (28,900) (26,175)
----------------------------------------------------------------------------
Free cash flow (c) (16,462) 55,319 (129.8)
----------------------------------------------------------------------------
Total assets 4,931,733 5,140,964
Total long-term liabilities 1,313,201 1,621,735
Total dividends 28,900 26,175
Total dividends per
preferred share 0.406 0.406
Total dividends per common
share 0.150 0.125
----------------------------------------------------------------------------
(a) Excludes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology and the impairment of goodwill.
(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 paid 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) Includes the impact of the adjustments to the Breakage estimates
related to the Nectar and Air Miles Middle East programs, which
resulted in a reduction of $136.0 million to revenue from Loyalty
Units, with $113.3 million being attributable to prior years and $22.7
million to the 2011 year (including $8.9 million attributable to the
fourth quarter of 2011). Of the total adjustment, $95.2 million is
attributable to the Nectar program and $40.8 million to the Air Miles
Middle East program.
(g) The Change in Future Redemption costs for the quarter ended December
31, 2011 includes the unfavourable impact resulting from the
adjustments to the Breakage estimates related to the Nectar and Air
Miles Middle East programs amounting to $15.8 million (of which $4.5
million relates to the current quarter).
(h) Includes the effect of a $1.0 million (GBP 0.7 million) net charge to
interest expense recognized as a result of the ECJ VAT Judgment for
the three months ended December 31, 2011, compared to a $0.8 million
(GBP 0.5 million) net charge to interest expense recognized during the
three months ended December 31, 2010.
(i) Includes a goodwill impairment charge amounting to $53.9 million
related to our US Proprietary Loyalty cash-generating unit.
(j) Excludes the goodwill impairment charge.
SEGMENTED INFORMATION
At December 31, 2011, the Corporation had three operating segments: Canada, EMEA and US & APAC.
The table below summarizes the relevant financial information by operating segment:
Years ended December 31, 2011 and 2010
(in thousands) Year ended December 31,
2011 2010(m) 2011 2010(m)
Operating segments Canada EMEA
---------------------------------------------------------------------------
$ $ $ $
---------------------------------------------------------------------------
(d)
Gross Billings 1,299,492 1,248,569 571,012 (d) 502,879 (j)
---------------------------------------------------------------------------
Gross Billings from
the sale of Loyalty
Units 1,078,504 1,033,223 482,297 424,528
---------------------------------------------------------------------------
Revenue from Loyalty
Units 1,102,463 956,412 331,284 (h) 396,390
Revenue from
proprietary loyalty
services 177,695 157,315 25,057 32,611
Other revenue 49,714 49,266 65,186 43,587
---------------------------------------------------------------------------
Total revenue 1,329,872 1,162,993 421,527 (h) 472,588
Cost of rewards and
direct costs 725,562 665,371 383,522 386,325 (g)
---------------------------------------------------------------------------
Gross margin before
depreciation and
amortization(a) 604,310 497,622 38,005 (h) 86,263 (g)
Depreciation and
amortization(b) 100,197 99,850 13,884 13,665
---------------------------------------------------------------------------
Gross margin 504,113 397,772 24,121 (h) 72,598 (g)
Operating expenses
before share-based
compensation and
impairment of
goodwill 223,482 207,682 137,600 107,950 (g)
Share-based
compensation - - - -
Impairment of
goodwill(k) - - - -
---------------------------------------------------------------------------
Total operating
expenses 223,482 207,682 137,600 107,950 (g)
---------------------------------------------------------------------------
Operating income
(loss) 280,631 190,090 (113,479)(h) (35,352)(g)
---------------------------------------------------------------------------
(g)
Adjusted EBITDA(l) 372,642 338,105 28,168 (i) (18,329)(j)
---------------------------------------------------------------------------
Additions to non-
current assets(e) 24,056 22,655 16,455 8,690
Non-current assets(e) 3,259,974 3,331,272 459,729 (f) 450,316 (f)
Deferred revenue 1,815,595 1,845,284 412,815 265,662
Total assets 3,796,092 4,016,306 931,724 889,233
---------------------------------------------------------------------------
(in thousands) Year ended December 31,
2011 2010(m)
Operating segments US & APAC
---------------------------------------------------------------------
$ $
---------------------------------------------------------------------
(d)
Gross Billings 362,722 (d) 436,305 (j)
---------------------------------------------------------------------
Gross Billings from
the sale of Loyalty
Units - -
---------------------------------------------------------------------
Revenue from Loyalty
Units - -
Revenue from
proprietary loyalty
services 364,506 420,654
Other revenue - -
---------------------------------------------------------------------
Total revenue 364,506 420,654
Cost of rewards and
direct costs 223,790 243,586
---------------------------------------------------------------------
Gross margin before
depreciation and
amortization(a) 140,716 177,068
Depreciation and
amortization(b) 15,426 9,247
---------------------------------------------------------------------
Gross margin 125,290 167,821
Operating expenses
before share-based
compensation and
impairment of
goodwill 150,547 176,959
Share-based
compensation - -
Impairment of
goodwill(k) 53,901 -
---------------------------------------------------------------------
Total operating
expenses 204,448 176,959
---------------------------------------------------------------------
Operating income
(loss) (79,158) (9,138)
---------------------------------------------------------------------
Adjusted EBITDA(l) (11,615) 15,760 (j)
---------------------------------------------------------------------
Additions to non-
current assets(e) 4,408 15,532
Non-current assets(e) 43,948 (f) 106,582 (f)
Deferred revenue 14,324 16,105
Total assets 149,512 211,345
---------------------------------------------------------------------
(in thousands) Year ended December 31,
2011 2010(m) 2011 2010(m)
Operating segments Corporate(c) Consolidated
----------------------------------------------------------------------------
$ $ $ $
----------------------------------------------------------------------------
(d)
Gross Billings - - 2,233,226(d) 2,187,753(j)
----------------------------------------------------------------------------
Gross Billings from
the sale of Loyalty
Units - - 1,560,801 1,457,751
----------------------------------------------------------------------------
Revenue from Loyalty
Units - - 1,433,747(h) 1,352,802
Revenue from
proprietary loyalty
services - - 567,258 610,580
Other revenue - - 114,900 92,853
----------------------------------------------------------------------------
Total revenue - - 2,115,905(h) 2,056,235
Cost of rewards and
direct costs - - 1,332,874 1,295,282(g)
----------------------------------------------------------------------------
Gross margin before
depreciation and
amortization(a) - - 783,031(h) 760,953(g)
Depreciation and
amortization(b) - - 129,507 122,762
----------------------------------------------------------------------------
Gross margin - - 653,524(h) 638,191(g)
Operating expenses
before share-based
compensation and
impairment of
goodwill 41,282 38,926 552,911 531,517(g)
Share-based
compensation 5,736 11,076 5,736 11,076
Impairment of
goodwill(k) - - 53,901 -
----------------------------------------------------------------------------
Total operating
expenses 47,018 50,002 612,548 542,593(g)
----------------------------------------------------------------------------
Operating income
(loss) (47,018) (50,002) 40,976(h) 95,598(g)
----------------------------------------------------------------------------
(g)
Adjusted EBITDA(l) (47,018) (50,002) 342,177(i) 285,534(j)
----------------------------------------------------------------------------
Additions to non-
current assets(e) N/A N/A 44,919 46,877
Non-current assets(e) N/A N/A 3,763,651(f) 3,888,170(f)
Deferred revenue N/A N/A 2,242,734 2,127,051
Total assets 54,405 24,080 4,931,733 5,140,964
----------------------------------------------------------------------------
(a) Excludes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology.
(b) Includes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology.
(c) Includes expenses that are not directly attributable to any specific
operating segment. Corporate also includes the investments in PLM and
Cardlytics.
(d) Includes Gross Billings of $137.6 million in the UK and $56.6 million
in the US for the three months ended December 31, 2011, compared to
Gross Billings of $114.8 million in the UK and $60.8 million in the US
for the three months ended December 31, 2010. 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.
(e) Non-current assets includes amounts relating to goodwill, Accumulation
Partners' contracts, trade names, customer relationships, other
intangibles, software and technology and property and equipment.
(f) Includes non-current assets of $408.4 million in the UK and $38.0
million in the US as of December 31, 2011, compared to non-current
assets of $399.1 million in the UK and $100.8 million in the US as of
December 31, 2010.
(g) Includes the impact of the adjustments to the Breakage estimates
related to the Nectar and Air Miles Middle East programs, which
resulted in a reduction of $136.0 million to revenue from Loyalty
Units, with $113.3 million being attributable to prior years and $22.7
million to the 2011 year (including $8.9 million attributable to the
fourth quarter of 2011). Of the total adjustment, $95.2 million is
attributable to the Nectar program and $40.8 million to the Air Miles
Middle East program.
(h) The Change in Future Redemption costs for the quarter ended December
31, 2011 includes the unfavourable impact resulting from the
adjustments to the Breakage estimates related to the Nectar and Air
Miles Middle East programs amounting to $15.8 million (with $4.5
million relating to the current quarter).
(i) The goodwill impairment charge recorded during the three months ended
December 31, 2011 relates to our US Proprietary Loyalty cash-
generating unit.
(j) A non-GAAP measurement.
(k) Comparative figures have been reclassified to conform with the new
segmentation.
Three months ended December 31, 2011 and 2010
(in thousands) Three months ended December 31,
2011 2010(k) 2011 2010(k)
Operating segments Canada EMEA
----------------------------------------------------------------------------
$ $ $ $
----------------------------------------------------------------------------
Gross Billings 335,009 336,337 172,762 (d) 140,343 (d)
----------------------------------------------------------------------------
Gross Billings
from the sale of
Loyalty Units 279,103 275,801 146,105 118,897
----------------------------------------------------------------------------
Revenue from
Loyalty Units 291,230 243,548 73,128 (g) 183,451
Revenue from
proprietary
loyalty services 44,017 44,880 5,375 8,143
Other revenue 12,080 12,263 21,981 12,515
----------------------------------------------------------------------------
Total revenue 347,327 300,691 100,484 (g) 204,109
Cost of rewards
and direct costs 181,992 167,155 168,559 150,052
----------------------------------------------------------------------------
Gross margin
before
depreciation and
amortization(a) 165,335 133,536 (68,075) (g) 54,057
Depreciation and
amortization(b) 24,730 24,879 3,727 3,015
----------------------------------------------------------------------------
Gross margin 140,605 108,657 (71,802) (g) 51,042
Operating expenses
before share-
based
compensation and
impairment of
goodwill 60,418 55,394 34,897 36,572
Share-based
compensation - - - -
Impairment of
goodwill (i) - - - -
----------------------------------------------------------------------------
Total operating
expenses 60,418 55,394 34,897 36,572
----------------------------------------------------------------------------
Operating income
(loss) 80,187 53,263 (106,699) (g) 14,470
----------------------------------------------------------------------------
Adjusted EBITDA
(j) 98,701 95,584 6,176 (h) 2,733
----------------------------------------------------------------------------
Additions to non-
current assets
(e) 7,771 6,714 6,268 5,202
Non-current assets
(e) 3,259,974 3,331,272 459,729 (f) 450,316 (f)
Deferred revenue 1,815,595 1,845,284 412,815 265,662
Total assets 3,796,092 4,016,306 931,724 889,233
----------------------------------------------------------------------------
2011 2010(k)
Operating segments US & APAC
----------------------------------------------------------------------------
$ $
----------------------------------------------------------------------------
Gross Billings 113,338 (d) 116,937 (d)
----------------------------------------------------------------------------
Gross Billings
from the sale of
Loyalty Units - -
----------------------------------------------------------------------------
Revenue from
Loyalty Units - -
Revenue from
proprietary
loyalty services 112,872 113,779
Other revenue - -
----------------------------------------------------------------------------
Total revenue 112,872 113,779
Cost of rewards
and direct costs 73,237 75,141
----------------------------------------------------------------------------
Gross margin
before
depreciation and
amortization(a) 39,635 38,638
Depreciation and
amortization(b) 7,384 2,664
----------------------------------------------------------------------------
Gross margin 32,251 35,974
Operating expenses
before share-
based
compensation and
impairment of
goodwill 42,565 41,579
Share-based
compensation - -
Impairment of
goodwill (i) 53,901 -
----------------------------------------------------------------------------
Total operating
expenses 96,466 41,579
----------------------------------------------------------------------------
Operating income
(loss) (64,215) (5,605)
----------------------------------------------------------------------------
Adjusted EBITDA
(j) (2,464) 217
----------------------------------------------------------------------------
Additions to non-
current assets
(e) 1,146 3,945
Non-current assets
(e) 43,948 (f) 106,582 (f)
Deferred revenue 14,324 16,105
Total assets 149,512 211,345
----------------------------------------------------------------------------
2011 2010(k) 2011 2010(k)
Operating segments Corporate(c) Consolidated
----------------------------------------------------------------------------
$ $ $ $
----------------------------------------------------------------------------
Gross Billings - - 621,109 (d) 593,617 (d)
----------------------------------------------------------------------------
Gross Billings
from the sale of
Loyalty Units - - 425,208 394,698
----------------------------------------------------------------------------
Revenue from
Loyalty Units - - 364,358 (g) 426,999
Revenue from
proprietary
loyalty services - - 162,264 166,802
Other revenue - - 34,061 24,778
----------------------------------------------------------------------------
Total revenue - - 560,683 (g) 618,579
Cost of rewards
and direct costs - - 423,788 392,348
----------------------------------------------------------------------------
Gross margin
before
depreciation and
amortization(a) - - 136,895 (g) 226,231
Depreciation and
amortization(b) - - 35,841 30,558
----------------------------------------------------------------------------
Gross margin - - 101,054 (g) 195,673
Operating expenses
before share-
based
compensation and
impairment of
goodwill 12,887 9,881 150,767 143,426
Share-based
compensation (452) 3,180 (452) 3,180
Impairment of
goodwill (i) - - 53,901 -
----------------------------------------------------------------------------
Total operating
expenses 12,435 13,061 204,216 146,606
----------------------------------------------------------------------------
Operating income
(loss) (12,435) (13,061) (103,162) (g) 49,067
----------------------------------------------------------------------------
Adjusted EBITDA
(j) (12,435) (13,061) 89,978 (h) 85,473
----------------------------------------------------------------------------
Additions to non-
current assets
(e) N/A N/A 15,185 15,861
Non-current assets
(e) N/A N/A 3,763,651 (f) 3,888,170 (f)
Deferred revenue N/A N/A 2,242,734 2,127,051
Total assets 54,405 24,080 4,931,733 5,140,964
----------------------------------------------------------------------------
(a) Excludes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology.
(b) Includes depreciation and amortization as well as amortization of
Accumulation Partners' contracts, customer relationships and
technology.
(c) Includes expenses that are not directly attributable to any specific
operating segment. Corporate also includes the investments in PLM and
Cardlytics.
(d) Includes Gross Billings of $137.6 million in the UK and $56.6 million
in the US for the three months ended December 31, 2011, compared to
Gross Billings of $114.8 million in the UK and $60.8 million in the US
for the three months ended December 31, 2010. 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.
(e) Non-current assets includes amounts relating to goodwill, Accumulation
Partners' contracts, trade names, customer relationships, other
intangibles, software and technology and property and equipment.
(f) Includes non-current assets of $408.4 million in the UK and $38.0
million in the US as of December 31, 2011, compared to non-current
assets of $399.1 million in the UK and $100.8 million in the US as of
December 31, 2010.
(g) Includes the impact of the adjustments to the Breakage estimates
related to the Nectar and Air Miles Middle East programs, which
resulted in a reduction of $136.0 million to revenue from Loyalty
Units, with $113.3 million being attributable to prior years and $22.7
million to the 2011 year (including $8.9 million attributable to the
fourth quarter of 2011). Of the total adjustment, $95.2 million is
attributable to the Nectar program and $40.8 million to the Air Miles
Middle East program.
(h) The Change in Future Redemption costs for the quarter ended December
31, 2011 includes the unfavourable impact resulting from the
adjustments to the Breakage estimates related to the Nectar and Air
Miles Middle East programs amounting to $15.8 million (with $4.5
million relating to the current quarter).
(i) The goodwill impairment charge recorded during the three months ended
December 31, 2011 relates to our US Proprietary Loyalty cash-
generating unit.
(j) A non-GAAP measurement.
(k) Comparative figures have been reclassified to conform with the new
segmentation.
Contacts:
Media
JoAnne Hayes
416-352-3706
joanne.hayes@aimia.com
Analysts & Investors
Trish Moran
416-352-3728
trish.moran@aimia.com