AIMIA reports fourth quarter and year end results

Record Adjusted EBITDA and Net Earnings, benefits from stronger operational 
performance in all regions and prior year investments 


    --  Strong EMEA performance driven by Nectar UK delivers robust
        Gross Billings performance for the year
    --  Record Adjusted EBITDA and Net Earnings, benefits from strong
        operational performance in all regions and a distribution from
        our investment  in Premier Loyalty & Marketing (PLM)
    --  2013 outlook calls for Gross Billings growth of between 3 and 5
        per cent, continued improvements in operational leverage
        contributing to approximately $425 million in Adjusted EBITDA
        and ongoing investment in global footprint
                                                                

FOURTH QUARTER Three Months Ended    Years Ended
HIGHLIGHTS(1)     December 31,       December 31,      Year Over Year

(in millions
of Canadian
dollars,
except per
share amounts) 2012        2011      2012    2011           % Change
                                                               Constant
                     As Reported      As Reported  As Reported Currency

Gross Billings 615.1         621.1 2,243.0 2,233.2         0.4      0.5

Total Revenue  678.2         560.7 2,248.9 2,115.9         6.3      6.4

Net Earnings
(loss)          57.3       (142.6)   166.7  (77.0)       316.6       na

Earnings
(loss) per
Common Share    0.31        (0.74)    0.89  (0.40)       322.5       na

Adjusted
EBITDA         118.1          90.0   402.6   342.2        17.7     17.9

Free Cash Flow
before
Dividends Paid  77.1          12.4   299.5   197.6        51.5       na

1. Non-recurring items included within 2011 numbers are detailed in the
   Notes to table section of this release on page 7. Non-GAAP measures
   (Adjusted EBITDA and Free Cash Flow) are explained on pages 6 and 7
   in the section entitled Use of Non-GAAP Financial Information.
   Discrepancies in variances may arise due to rounding.

MONTREAL, Feb. 27, 2013 /CNW Telbec/ - (TSX: AIM) Aimia today reported its 
financial results for the fourth quarter and full year ended December 31, 
2012. All financial information is in Canadian dollars unless otherwise noted.

"Our coalition programs continue to focus on driving engagement with our 
members and value to our partners even in tougher economic conditions.The 
clear gains from the renewal of a key partner contract at Nectar UK in 2011 
drove stronger growth in EMEA in 2012, while Aeroplan attracted another 0.7 
million new members to an already strong member base in 2012" said Rupert 
Duchesne, Group Chief Executive. "Our record profitability is consistent with 
the operational leverage and returns delivered through investments in our 
coalition loyalty programs and strong operational management in all regions. 
The investments we have made to grow our business elsewhere are also 
demonstrating returns, with a distribution from PLM contributing to strong 
Adjusted EBITDA and free cash flow this quarter."

Fourth Quarter and Year End Financial Highlights (Period ended December 31, 
2012 versus period ended December 31, 2011)
Consolidated - Adjusted EBITDA up on improved contributions from all regions
    --  Fourth quarter Gross Billings of $615.1 million, a decrease of
        1.0 per cent or 0.2 per cent on a constant currency basis
        compared to the same period of 2011. Full year Gross Billings
        of $2,243.0 million, an increase of 0.4 per cent or 0.5 per
        cent on a constant currency basis over 2011; excluding the
        impact of Qantas in-sourcing rewards fulfillment and the
        results of operations of EIM, 2012 Gross Billings increased 2.3
        per cent.
    --  Fourth quarter Adjusted EBITDA of $118.1 million, an increase
        of 31.2 per cent; full year Adjusted EBITDA of $402.6 million,
        an increase of 17.7 per cent over 2011. The quarter and year
        both include the impact of a distribution from PLM in 2012 and
        variances against last year when we recorded adjustments,
        including breakage, in EMEA in relation to the UK and the
        Middle East businesses.
    --  The $15.7 million PLM contribution to consolidated Adjusted
        EBITDA results from the solid growth in the program in its
        first two years, with Gross Billings for PLM's Club Premier up
        27.0% year over year, and over 3.3 million premium card members
        at the end of 2012.

Canada - Strong operating leverage despite a softer than expected Q4 
finish
    --  Fourth quarter Gross Billings of $336.2 million compared with
        $335.3 million in the same period of 2011, an increase of 0.3
        per cent; full year Gross Billings of $1,292.6 million, a
        decrease of 0.6 per cent over 2011.
    --  Adjusted EBITDA of $100.3 million in the fourth quarter, an
        increase of 1.6 per cent compared to the prior year period;
        operating leverage as a result of lower redemption costs and
        lower direct costs in proprietary loyalty drove a full year
        increase of 6.3 per cent over 2011 to $396.1 million.
    --  Gross Billings with financial partners were up for the full
        year but accounted for the softer than expected Gross Billings
        in the fourth quarter. This was partly accounted for by a tough
        fourth quarter comparative, with an Aeroplan Miles conversion
        promotion campaign in 2011 which did not recur in 2012. An
        increase in the number of active credit cards was also more
        than offset by lower fourth quarter spend per card. Lower
        business volumes in financial services also affected
        proprietary loyalty Gross Billings in the fourth quarter.
    --  Air and non-air Gross Billings for Loyalty Units were up in the
        fourth quarter but the changes to the Air Canada accumulation
        grid impacted Gross Billings for the full year.
    --  The increase in Aeroplan Miles issuance and redemption were
        broadly aligned. Despite reductions in accumulation mostly
        explained by changes in the Air Canada accumulation grid,
        Aeroplan Miles issued increased by 0.4 per cent in the year
        while total Aeroplan Miles redeemed increased 0.5 per cent in
        2012 over 2011.
    --  The Aeroplan Program added 0.7 million members and more than
        0.3 million new financial cards were issued during the year. At
        the end of 2012, Aeroplan had approximately 4.7 million active
        members. Of the 2.3 million rewards issued in 2012, more than
        1.6 million were for flights on Air Canada and Star Alliance
        carriers with around 0.7 million in non-air rewards.

Europe, Middle East & Africa (EMEA) - Strong EMEA performance driven by Nectar 
UK
    --  Fourth quarter Gross Billings of $177.6 million, an increase of
        2.7 per cent or 4.6 per cent on a constant currency basis
        compared to the same period of 2011. Full year Gross Billings
        of $639.9 million, up 11.9 per cent or 12.9 per cent on a
        constant currency basis over 2011, mainly due to an increase in
        Gross Billings from the sale  of Loyalty Units issued in the UK
        in the grocery and energy sectors along with the benefit of the
        new contract terms with the main sponsors in the UK and the
        Middle East
    --  Adjusted EBITDA of $16.0 million in the quarter, an increase of
        $9.8 million; Full year Adjusted EBITDA of $49.2 million, an
        increase of $21 million when compared with $28.2 million in the
        prior year period, with increased volumes driving improvements
        in operating leverage.
    --  At the end of 2012, Nectar UK had approximately 19 million
        active members, up from 18.5 million in 2011. Nectar UK Points
        issued in 2012 increased by 16.1 per cent compared to 2011,
        with higher issuance at British Gas and Sainsbury's continuing
        to drive improvement into the fourth quarter.
    --  Redemption activity for Nectar UK increased by 10.6 per cent in
        the year mainly driven by an increase in the number of Nectar
        Points in circulation.
    --  A more difficult economic environment in Italy saw points
        issuance decrease 0.6 per cent in 2012 compared to 2011. 9.5
        million members have joined Nectar Italia since the inception
        of the program, up from 8.5 million last year. Nectar Italia
        points redeemed increased significantly in 2012 consistent with
        members having increased availability of points in their
        accounts due to the program's growth, resulting in increased
        engagement among members.
    --  Other Gross Billings increased by $1.9 million or 2.1 per cent
        compared to 2011, with a full year of delivery under
        international contracts driving a 13.2 per cent increase in
        Gross Billings for Intelligent Shopper Solutions (ISS) during
        the year.
    --  The i2c joint venture with Sainsbury's in the UK will launch
        its first fully integrated multi-channel marketing campaigns
        from the first quarter of 2013.

US & Asia Pacific - Profitable despite a Challenging US Environment
    --  Fourth quarter Gross Billings of $102.3 million, a decrease of
        11.6 per cent or 10.5 per cent on a constant currency basis
        compared to the same period 2011. Full year Gross Billings of
        $315.2 million. Excluding the impact of Qantas in-sourcing
        rewards fulfillment and the results of operations of EIM, Gross
        Billings for the full year were down 4.4 per cent or 5.7 per
        cent on a constant currency basis.
    --  Fourth quarter Adjusted EBITDA at $6.7 million, compared to $
        (2.5) million in the same period of 2011; full year Adjusted
        EBITDA of $7.4 million compared to $(11.6) million in 2011.
    --  Under new management, the US region is making good strides in
        terms of repositioning and focusing on higher value-add
        strategic loyalty services, offsetting the impact of client
        losses in the prior year and benefiting from restructuring
        undertaken in 2011. In 2012, the US accounted for $191.5
        million of Gross Billings, compared to $196.3 million in the
        prior year, and contributed to the profitability of the US&APAC
        segment.
    --  Gross Billings for the region included $16.5 million from the
        Excellence in Motivation (EIM) acquisition which was completed
        on September 24, 2012.
    --  The APAC region remains focused on new business development as
        well as the 2013 deployment of a redemption technology and
        rewards fulfillment contract for Standard Chartered Bank.

Cash Flow and Financial Position
At December 31, 2012, Aimia had $498.0 million of cash and cash equivalents, 
$28.3 million of restricted cash, $42.5 million of short-term investments and 
$313.3 million of long-term investments in bonds, for a total of $882.1 
million.

Aimia's Free Cash Flow (before dividends paid) was $77.1 million for the 
fourth quarter of 2012 compared to $12.4 million for the fourth quarter of 
2011. For the full year, Free Cash Flow (before dividends paid) was up 51.5% 
to $299.5 million. In addition to benefiting from a $15.7 million distribution 
from Club Premier, Free Cash Flow for the quarter and the year increased due 
to higher cash generated from operations. This was primarily due to lower 
cost of rewards and lower direct costs as well as the timing of changes in net 
operating assets and was only partially offset by higher capital expenditures 
as we continued to invest in the future of the business.

Dividends Declared
Common Shares
The Board of Directors declared a quarterly dividend of $0.16 per common 
share, payable on March 29, 2013 to shareholders of record at the close of 
business on March 15, 2013.

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 29, 2013 to 
the holders of record at the close of business on March 15, 2013.

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

2013 Outlook

For the year ending December 31, 2013, Aimia expects to report the following:
                                        Consolidated Outlook
                        2012 Actual           2013 Target Range

Gross Billings( )                             Growth of between 3% and
                        $2,243.0 million      5%

Adjusted EBITDA                               To approximate $425
                        $402.6 million        million

Free Cash Flow before                         Between $255 and $275
dividends               $299.5 million        million

Capital Expenditures                          To approximate $70
                        $58.0 million         million
                                              Current income tax rate
                                              is anticipated to
                                              approximate 27% in


                                          Canada. The
Income Taxes            Canadian income tax   Corporation expects no 


                           rate of 26.2%      significant cash
                                              income taxes will be
                                              incurred in the rest
                                              of its foreign
                                              operations.
    
                  Business Segment Gross Billings Growth Outlook
                        2012 Actual           2013 Target Range

Canada                  $1,292.6 million      Between 1% and 3%

EMEA                    $639.9 million        Between 5% and 7%

US & APAC               $315.2 million        Above 5%

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 2013 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. In addition, the above forecasts do not reflect the potential 
impact of any non-recurring or other special items or of any dispositions, 
mergers, acquisitions, other business combinations or other transactions that 
may be announced or that may occur after February 27, 2013. The financial 
impact of these transactions and non-recurring and other special items can be 
complex and depends on the facts particular to each of them. We therefore 
cannot describe the expected impact in a meaningful way or in the same way we 
present known risks affecting our business. 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 also includes distributions and dividends 
received from equity-accounted investments.

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 Selected Information 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 also includes distributions and dividends received from 
equity-accounted investments.

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 Selected Information 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 
Selected Information 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 
isderived bycalculatingcurrent-year results usingprior-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.

Notes to table
2011 numbers in the table on page 1 include:
    --  Adjustments to breakage estimates for Nectar UK and Air Miles
        Middle East recorded during the fourth quarter of 2011. The
        impact resulted in a $136.0 million reduction to revenue. Of
        this amount, $113.3 million is attributable to the years prior
        to 2011, $13.8 million to the first three quarters of 2011 and
        $8.9 million to the fourth quarter of 2011.
    --  A goodwill impairment charge of $49.4 million, or $53.9 million
        net of a tax recovery of $4.5 million, recorded during the
        fourth quarter of 2011 in relation to the US proprietary
        loyalty business which affected net earnings.
    --  A net unfavourable impact on Adjusted EBITDA for the fourth
        quarter of 2011 of $5.9 million representing breakage
        adjustments for Nectar UK and Air Miles Middle East offset in
        part by a contribution from a coalition anchor partner in
        connection with the extension of its participation in the
        program.

Q4 2012 Conference Call / Audio Webcast
Aimia will host a conference call to discuss its fourth quarter and full year 
2012 financial results at 8:00 a.m. ET on Thursday, February 28, 2013. 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/xx

A slide presentation intended for simultaneous viewing with the conference 
call will be available the evening of February 27, 2013 at: 
http://www.aimia.com/English/Investors/Financial-Reports/Quarterly-Reports/defa
ult.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/defa
ult.aspx.

About Aimia

Aimia Inc. ("Aimia") is a global leader in loyalty management. Employing more 
than 4,000 people in over 20 countries worldwide, Aimia offers clients, 
partners and members proven expertise in launching and managing coalition 
loyalty programs, delivering proprietary loyalty services, creating value 
through loyalty analytics and driving innovation in the emerging digital, 
mobile and social communications spaces.

Aimiaowns and operates Aeroplan,Canada'spremier coalition loyalty 
program andNectar, theUnited Kingdom'slargest coalition loyalty program. 
In addition,Aimia owns stakes in Air Miles Middle East, Nectar Italia, 
Mexico'sleading coalition loyalty program Club Premier, Brazil's Prismah 
Fidelidade, and i2c, a joint venture with Sainsbury's offering insight and 
data analytics services in the UK to retailers and suppliers. Aimia also holds 
a minority position in Cardlytics, a US-based private company operating in 
transaction-driven marketing for electronic banking. Aimia is listed on 
theToronto Stock Exchange(TSX: AIM). For more information, visit us at 
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 27, 2013, 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.



SELECTED INFORMATION AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED 
NET EARNINGS AND FREE CASH FLOW
                                                                                    
                               For the years ended December 31,           %∆

(in thousands of                                                             
Canadian dollars ,
except share and                                                       2012     2011
per share                                                              over     over
information)              2012             2011      2010 ((i))        2011     2010

Gross Billings       2,243,023        2,233,226       2,187,753 (j)     0.4      2.1

Gross Billings                                                               
from the sale of
Loyalty Units        1,628,429        1,560,801       1,457,751         4.3      7.1

Total revenue        2,248,918        2,115,905 (f)   2,056,235         6.3      2.9

Cost of rewards                                                              
and direct costs   (1,300,925)      (1,332,874)     (1,295,282) (k)   (2.4)      2.9

Gross margin                                                                 
before
depreciation and
amortization ((a))     947,993          783,031 (f)     760,953 (k)    21.1      2.9

Depreciation and                                                             
amortization          (38,425)         (36,033)        (32,454)         6.6     11.0

Amortization of                                                              
Accumulation
Partners'
contracts,
customer
relationships and
technology            (87,234)         (93,474)        (90,308)       (6.7)      3.5

Gross margin           822,334          653,524 (f)     638,191        25.8      2.4

Operating expenses   (566,847)        (612,548) (g)   (542,593) (k)   (7.5)     12.9

Amortization of                                                              
Accumulation
Partners'
contracts,
customer
relationships and
technology              87,234           93,474          90,308       (6.7)      3.5

Operating income                                                             
before
amortization of
Accumulation
Partners'
contracts,
customer
relationships and                               (f)
technology             342,721          134,450 (g)     185,906 (k)   154.9   (27.7)

Depreciation and                                                             
amortization            38,425           36,033          32,454         6.6     11.0

Impairment of                                                                
goodwill               —           53,901         —     (100.0)    100.0

EBITDA ((a)(c)(l))     381,146          224,384 (f)     218,360 (k)    69.9      2.8

Adjustments:                                                                        

Change in deferred
revenue                                                                             
    Gross Billings   2,243,023      2,233,226        2,187,753  (j)                 
    Revenue        (2,248,918)      (2,115,905) (f) (2,056,235)                     

  Change in Future                                                           
  Redemption Costs
  ((b))                 11,640            472          (64,344)                     
    (Change in Net
    Loyalty Units
    outstanding x
    Average Cost
    of
    Rewards per
    Loyalty Unit
    for the
    period)                                                                         

  Distribution                                                               
  received from an
  equity-accounted
  investment            15,712        —           —                     

Subtotal of                                                                  
Adjustments             21,457        117,793            67,174                     

Adjusted EBITDA (                                               (j)
(c))                   402,603        342,177           285,534 (k)    17.7     19.8

Net earnings
(loss)
attributable to
equity holders of                               (f)
the                                             (g)             (h)
Corporation            165,167 (h)     (59,678) (h)      14,923 (k)                 

Weighted average                                                             
number of shares   173,015,589     179,146,339      194,748,024                     

Earnings per                                    (f)                          
common share ((d))                              (g)             (h)
                          0.89 (h)       (0.40) (h)        0.02 (k)                 

Net earnings
(loss)
attributable to
equity holders of                               (f)
the                                             (g)             (h)
Corporation            165,167 (h)     (59,678) (h)      14,923 (k)                 

Amortization of
Accumulation
Partners'
contracts,
customer
relationships and
technology              87,234           93,474          90,308                     

Share of net
(earnings) loss of
equity-accounted
investments            (2,917)            4,444         —                     

Impairment of
goodwill               —           53,901         —                     

Adjusted EBITDA
Adjustments (from
above)                  21,457          117,793          67,174                     

Tax on adjustments
((e))                    (196)            6,273        (10,918)                     

Non-controlling
interests share on
adjustments above      (2,252)         (18,042)         (5,314)                     

Adjusted Net                                                    (h)          
Earnings((c))                                                   (j)
                       268,493 (h)      198,165 (h)     156,173 (k)    35.5     26.9

Adjusted Net
Earnings per                                                    (h)
common share ((c)                                               (j)
(d))                      1.49 (h)         1.04 (h)        0.75 (k)                 

Cash flow from
operations             357,443          242,541         268,105                     

Capital
expenditures          (57,955)         (44,919)        (46,877)                     

Dividends            (119,992)        (113,481)       (107,577)                     

Free Cash Flow (                                                             
(c))                   179,496           84,141         113,651       113.3   (26.0)

Total assets         5,246,581        4,931,733       5,140,964                     

Total long-term
liabilities          1,758,139        1,313,201       1,621,735                     

Total dividends
per preferred
share                    1.625            1.625           1.530                     

Total dividends
per common share         0.630            0.575           0.500                

(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) 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 $113.3 million to
    revenue from Loyalty Units attributable to the years prior to
    2011. Of the total adjustment, $82.0 million is attributable to the
    Nectar Program and $31.3 million is attributable to the
    Air Miles Middle East program.

(g) Includes a goodwill impairment charge of $53.9 million recorded in
    the fourth quarter of 2011 related to the US
    proprietary loyalty business.

(h) Interest expense for the years ended December 31, 2012, 2011 and
    2010 includes the effect of a charge recognized as
    a result of the ECJ VAT Judgment amounting to $4.5 million (£2.8
    million), $4.4 million (£2.8 million) and $7.2 million
    (£4.5 million), respectively.

(i) These figures exclude any effect attributable to the change in
    Breakage estimates made in the fourth quarter of 2011 in
    the Nectar and Air Miles Middle East programs.

(j) 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.

(k) Includes the non comparable effect of a $17.4 million (£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 (£33.4 million),
    representing input tax credits attributable to the period from 2002
    to 2009, was charged to cost of rewards and $1.6
    million (£1.0 million) to operating expenses. Operating expenses
    were also reduced by the reversal of a provision of
    $7.2 million (£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 (£19.0 million)
    related to the LMG acquisition following the unfavourable
    ECJ VAT Judgment.

(l) Excludes the goodwill impairment charge.
                                                                
                     Three Months Ended December 31,           %∆

(in thousands of
Canadian dollars ,
except share and per
share information)          2012                2011                 Q4

Gross Billings           615,055             621,109              (1.0)

Gross Billings from
the sale of Loyalty
Units                    429,534             425,208                1.0

Total revenue            678,179             560,683 (f)           21.0

Cost of rewards and
direct costs           (412,651)           (423,788)              (2.6)

Gross margin before
depreciation and
amortization ((a))       265,528             136,895 (f)           94.0

Depreciation and
amortization            (12,013)            (11,698)                2.7

Amortization of
Accumulation
Partners' contracts,
customer
relationships and
technology              (24,831)            (24,143)                2.8

Gross margin             228,684             101,054 (f)          126.3

Operating expenses     (153,551)           (204,216) (h)         (24.8)

Amortization of
Accumulation
Partners' contracts,
customer
relationships and
technology                24,831              24,143                2.8

Operating income
(loss) before
amortization of
Accumulation
Partners'
contracts, customer
relationships and
technology                99,964            (79,019) (f)(h)       226.5

Depreciation and
amortization              12,013              11,698                2.7

Impairment of
goodwill                 —              53,901            (100.0)

EBITDA ((a)(c)(j))       111,977            (13,420) (f)          934.4

Adjustments:                                                           

Change in deferred
revenue                                                                
    Gross Billings       615,055             621,109                   
    Revenue            (678,179)           (560,683) (f)               

  Change in Future
  Redemption Costs (
  (b))                    53,504              42,972 (g)               
    (Change in Net
    Loyalty Units
    outstanding x
    Average Cost of
    Rewards per
    Loyalty Unit for
    the period)                                                        

Distribution
received from an
equity-accounted
investment                15,712             —                   

Subtotal of
Adjustments                6,092             103,398                   

Adjusted EBITDA (
(c))                     118,069              89,978 (g)           31.2

Net earnings (loss)
attributable to
equity holders of
the Corporation           56,812 (i)       (126,267) (f)(h)(i)         

Weighted average
number of shares     172,123,799         173,774,352                   

Earnings per common
share ((d))                 0.31 (i)          (0.74) (f)(h)(i)         

Net earnings (loss)
attributable to
equity holders of
the Corporation           56,812 (i)       (126,267) (f)(h)(i)         

Amortization of
Accumulation
Partners' contracts,
customer
relationships and
technology                24,831              24,143                   

Share of net loss of
equity-accounted
investments                  374              10,303                   

Impairment of
goodwill                 —              53,901                   

Adjusted EBITDA
Adjustments (from
above)                     6,092             103,398                   

Tax on adjustments (
(e))                     (1,377)                 405                   

Non-controlling
interests share on
adjustments above          (889)            (26,372)                   

Adjusted Net
Earnings((c))             85,843 (i)          39,511 (g)(i)       117.3

Adjusted Net
Earnings per common
share ((c)(d))              0.48 (i)            0.21 (g)(i)            

Cash flow from
operations               100,570              27,623                   

Capital expenditures    (23,506)            (15,185)                   

Dividends               (30,374)            (28,900)                   

Free Cash Flow ((c))      46,690            (16,462)              383.6

Total assets           5,246,581           4,931,733                   

Total long-term
liabilities            1,758,139           1,313,201                   

Total dividends per
preferred share            0.406               0.406                   

Total dividends per
common share               0.160               0.150            

(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) 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 $127.1 million to
    revenue from Loyalty Units, with $113.3 million attributable
    to the years prior to 2011 and $13.8 million attributable to the
    first three quarters of 2011.  Of the total adjustment,
    $89.0 million is attributable to the Nectar Program and $38.1
    million is attributable to the Air Miles Middle East program.

(g) The Change in Future Redemption costs for the quarter ended
    December 31, 2011 includes an unfavorable impact of
    $11.3 million resulting from the adjustments to the Breakage
    estimates related to the Nectar and Air Miles Middle East
    programs attributable to the first three quarters of 2011.

(h) Includes a goodwill impairment charge of $53.9 million recorded in
    the fourth quarter of 2011 related to the US
    proprietary loyalty business.

(i) Interest expense for the three months ended December 31, 2012 and
    2011 includes the effect of a charge recognized
    as a result of the ECJ VAT Judgment amounting to $1.1 million (£0.7
    million) and $1.0 million (£0.7 million), respectively.

(j) Excludes the goodwill impairment charge.

SEGMENTED INFORMATION

At December 31, 2012, the Corporation had three reportable and operating 
segments: Canada, EMEA and US & APAC. The tables below summarize the relevant 
financial information by operating segment:
                                                                                                                        
                                       


                                                                                                      Years Ended 
December 31, 
(in thousands
of Canadian                                                                     2011(                                    
  2011(
dollars)            2012   2011((f))     2012      2011((f))        2012         (f))         2012         2011      
2012      (f))        2012     2011((f))   
Operating
Segments                  Canada                   EMEA                  US & APAC             Corporate((b))        
Eliminations             Consolidated      
Gross Billings 1,292,551   1,300,510   639,851 (c)   571,598 (c) 315,205 (c)  366,502 (c)  —      —   (4,584)   
(5,384)   2,243,023 (c) 2,233,226 (c) 
Gross Billings                                                                                                           
         
from the sale
of Loyalty
Units          1,079,793   1,078,504   548,636       482,297     —      —      —      —   —   —   1,628,429  
1,560,801   
Revenue from                                                                                                             
         
Loyalty Units  1,109,523   1,102,463   528,359       331,284 (g) —      —      —      —   —   —   1,637,882  
1,433,747 (g) 
Revenue from                                                                                                             
         
proprietary
loyalty
services         158,169     177,695   15,191         25,057     312,337      364,506      —      —   —   —     
485,697       567,258   
Other revenue     49,731      49,714   75,608         65,186     —      —      —      —   —   —     125,339  
  114,900   
Intercompany                                                                                                             
         
revenue               17       1,018      304            586       4,263        3,780      —      —   (4,584)   
(5,384)     —       —   
Total revenue  1,317,440   1,330,890   619,462       422,113 (g) 316,600      368,286      —      —   (4,584)   
(5,384)   2,248,918     2,115,905 (g) 
Cost of                                                                                                                  
         
rewards and
direct costs     693,044     726,580   438,639       384,108     169,563      224,616      —      —     (321)   
(2,430)   1,300,925     1,332,874   
Gross margin                                                                                                             
         
before
depreciation
and
amortization     624,396     604,310   180,823        38,005 (g) 147,037      143,670      —      —   (4,263)   
(2,954)     947,993       783,031 (g) 
Depreciation                                                                                                             
         
and
amortization (
(a))              95,170     100,197   17,005         13,884      13,484       15,426      —      —   —   —     
125,659       129,507   
Gross margin     529,226     504,113   163,818        24,121 (g) 133,553      128,244      —      —   (4,263)   
(2,954)     822,334       653,524 (g) 
Operating                                                                                                                
         
expenses
before the
undernoted       225,040     223,482   141,995       137,600     138,277      153,501       53,260       41,282   
(4,263)   (2,954)     554,309       552,911   
Share-based                                                                                                            
         
  compensation   —     —   —       —     —      —       12,538        5,736   —   —      12,538         
5,736   
Impairment                                                                                                             
         
  of goodwill
  ((h))          —     —   —       —     —       53,901      —      —   —   —     —        53,901   
Total                                                                                                                    
         
operating
expenses         225,040     223,482   141,995       137,600     138,277      207,402       65,798       47,018   
(4,263)   (2,954)     566,847       612,548   
Operating                                                                                                                
         
income (loss)    304,186     280,631   21,823      (113,479) (g) (4,724)     (79,158)     (65,798)     (47,018)   —   
—     255,487        40,976 (g) 
Adjusted                                                                                                                 
         
EBITDA ((i))     396,137     372,642   49,187         28,168       7,365     (11,615)     (50,086) (j) (47,018)   —   
—     402,603 (j)   342,177   
Additions to                                                                                                             
         
non-current
assets ((d))      32,269      24,056   18,675         16,455       7,011        4,408        2,273      —       N/A    
N/A      60,228        44,919   
Non-current                                                                                                              
         
assets ((d))   3,190,837   3,259,974   468,782 (e)   459,729 (e)  77,805 (e)   43,948 (e)    2,156      —       N/A    
N/A   3,739,580 (e) 3,763,651 (e) 
Deferred                                                                                                                 
         
revenue        1,790,540   1,815,595   438,985       412,815      24,133       14,324      —      —       N/A       
N/A   2,253,658     2,242,734   
Total assets   3,883,248   3,796,092   998,514       931,724     228,291      149,512      136,528       54,405       
N/A       N/A   5,246,581     4,931,733   
(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 $525.2 million in the UK and
    $191.5 million in the US for the year ended December 31, 2012,
    compared to third party Gross Billings of $466.8 million in the UK
    and $196.3 million in the US for the year ended December 31, 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 $418.2 million in the UK and $71.1
    million in the US as of December 31, 2012, compared to non-current
    assets of $408.4 million in the UK and $38.0 million in the US as
    of December 31, 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) 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 $113.3 million to revenue from Loyalty
    Units attributable to the years prior to 2011. Of the total
    adjustment, $82.0 million is attributable to the Nectar Program and
    $31.3 million is attributable to the Air Miles Middle East program.

(h) The goodwill impairment charge recorded during the year ended
    December 31, 2011 related to the US proprietary loyalty business.

(i) A non-GAAP measurement.

(j) Adjusted EBITDA includes distributions received from an
    equity-accounted investment, amounting to $15.7 million for the
    year ended December 31, 2012.
                                                                                                                        
                                       
               Three Months Ended December 31,

(in thousands
of Canadian                                                                     2011(                                   


  2011(
dollars)            2012   2011((f))      2012     2011((f))        2012         (f))         2012         2011      
2012      (f))        2012     2011((f))     
Operating                                                                                                                
         
Segments                  Canada                   EMEA                  US & APAC             Corporate((b))        
Eliminations             Consolidated      
Gross Billings   336,232     335,307   177,586 (c)   172,919 (c) 102,265 (c)  115,735 (c)  —      —   (1,028)   
(2,852)     615,055 (c)   621,109 (c) 
Gross Billings                                                                                                           
         
from the sale
of Loyalty
Units            278,780     279,103   150,754       146,105     —      —      —      —   —   —     429,534  
  425,208     
Revenue from                                                                                                             
         
Loyalty Units    267,678     291,230   223,728        73,128 (g) —      —      —      —   —   —     491,406  
  364,358 (g) 
Revenue from                                                                                                             
         
proprietary
loyalty
services          45,314      44,017     4,276         5,375     101,858      112,872      —      —   —   —     
151,448       162,264     
Other revenue     12,546      12,080    22,779        21,981     —      —      —      —   —   —      35,325  
   34,061     
Intercompany                                                                                                             
         
revenue                5         298        48           157         975        2,397      —      —   (1,028)   
(2,852)     —       —     
Total revenue    325,543     347,625   250,831       100,641 (g) 102,833      115,269      —      —   (1,028)   
(2,852)     678,179       560,683 (g) 
Cost of                                                                                                                  
         
rewards and
direct costs     172,597     182,290   182,578       168,716      57,529       74,063      —      —      (53)   
(1,281)     412,651       423,788     
Gross margin                                                                                                             
         
before
depreciation
and
amortization     152,946     165,335    68,253      (68,075) (g)  45,304       41,206      —      —     (975)   
(1,571)     265,528       136,895 (g) 
Depreciation                                                                                                             
         
and
amortization (
(a))              25,257      24,730     4,881         3,727       6,706        7,384      —      —   —   —     
 36,844        35,841     
Gross margin     127,689     140,605    63,372      (71,802) (g)  38,598       33,822      —      —     (975)   
(1,571)     228,684       101,054 (g) 
Operating                                                                                                                
         
expenses
before the
undernoted        58,912      60,418    36,910        34,897      38,018       44,136       18,172       12,887     
(975)   (1,571)     151,037       150,767     
Share-based                                                                                                            
         
  compensation   —     —   —       —     —      —        2,514        (452)   —   —       2,514         
(452)     
Impairment                                                                                                             
         
  of goodwill
  ((i))          —     —   —       —     —       53,901     —       —   —   —     —        53,901    
Total                                                                                                                    
         
operating
expenses          58,912      60,418    36,910        34,897      38,018       98,037       20,686       12,435     
(975)   (1,571)     153,551       204,216     
Operating                                                                                                                
         
income (loss)     68,777      80,187    26,462     (106,699) (g)     580     (64,215)     (20,686)     (12,435)   —   
—      75,133     (103,162) (g) 
Adjusted                                                                                                                 
         
EBITDA ((j))     100,312      98,701    16,013         6,176 (h)   6,718      (2,464)      (4,974) (k) (12,435)   —   
—     118,069 (k)    89,978 (h) 
Additions to                                                                                                             
         
non-current
assets ((d))      12,351       7,771     8,964         6,268       2,191        1,146      —      —       N/A       
N/A      23,506        15,185     
Non-current                                                                                                              
         
assets ((d))   3,190,837   3,259,974   468,782 (e)   459,729 (e)  77,805 (e)   43,948 (e)    2,156      —       N/A    
N/A   3,739,580 (e) 3,763,651 (e) 
Deferred                                                                                                                 
         
revenue        1,790,540   1,815,595   438,985       412,815      24,133       14,324      —      —       N/A       
N/A   2,253,658     2,242,734     
Total assets   3,883,248   3,796,092   998,514       931,724     228,291      149,512      136,528       54,405       
N/A       N/A   5,246,581     4,931,733     
(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 $148.4 million in the UK and
    $67.0 million in the US for the three months ended December 31,
    2012, compared to third party Gross Billings of $137.6 million in
    the UK and $56.6 million in the US for the three months ended
    December 31, 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 $418.2 million in the UK and $71.1
    million in the US as of December 31, 2012, compared to non-current
    assets of $408.4 million in the UK and $38.0 million in the US as
    of December 31, 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) 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 $127.1 million to revenue from Loyalty
    Units, with $113.3 million attributable to the years prior to 2011
    and $13.8 million attributable to the first three quarters of 2011.
    Of the total adjustment, $89.0 million is attributable to the
    Nectar Program and $38.1 million is attributable to the Air Miles
    Middle East program.

(h) The Change in Future Redemption costs for the quarter ended
    December 31, 2011 includes an unfavorable impact of $11.3 million
    resulting from the adjustments to the Breakage estimates related to
    the Nectar and Air Miles Middle East programs attributable to the
    first three quarters of 2011.

(i) The goodwill impairment charge recorded during the year ended
    December 31, 2011 related to the US proprietary loyalty business.

(j) A non-GAAP measurement.

(k) Adjusted EBITDA includes distributions received from an
    equity-accounted investment, amounting to $15.7 million for the
    three months ended December 31, 2012.













Media Krista Pawley 416- 352 3794 krista.pawley@aimia.com

JoAnne Hayes 416-352-3706 joanne.hayes@aimia.com

Analysts & Investors Karen Keyes 514-205-7163 karen.keyes@aimia.com

Trish Moran 416-352-3728 trish.moran@aimia.com  

SOURCE: AIMIA

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/27/c7957.html

CO: AIMIA
ST: Quebec
NI: ADV LEI ERN 

-0- Feb/28/2013 01:06 GMT


 
Press spacebar to pause and continue. Press esc to stop.