Aimia (TSE:AIM) reported a second-quarter marked by the sale of Bozzetto, higher net book value per share and steps to reduce debt costs, while management said it expects improving conditions at its Cortland rope and netting business in the second half of 2026.
Executive Chairman Rhys Summerton said the company completed several strategic objectives during the quarter, including closing the Bozzetto sale, renewing its share repurchase program and beginning to deploy capital into investment opportunities. Aimia also plans to pursue a secondary listing on London’s AIM market.
Bozzetto Sale Boosts Cash and Book Value
Aimia completed the sale of Bozzetto during the quarter, generating net proceeds of C$270 million, including C$1.8 million received in July following the finalization of working-capital and debt closing accounts. Bozzetto was classified as discontinued operations, meaning its operating contributions were excluded from continuing-operations results, aside from consolidated cash flow from operations and net earnings.
President and Chief Financial Officer Steven Leonard said the transaction produced a net gain of C$21.7 million, benefiting earnings per share and net book value per share. Aimia incurred no income tax on the sale after using about C$45 million of capital loss carryforwards to offset the taxable capital gain.
Net book value per share rose 22% following the sale to C$3.74. Summerton said the measure can serve as an indicator of the company’s progress, though he cautioned that gains comparable to the Bozzetto-related increase should not be expected regularly.
“There will be some lumpiness in the periods ahead,” Summerton said. He added that the company’s long-term objective is to increase net book value per share through capital allocation decisions.
Consolidated cash at June 30 was C$294.5 million, compared with C$100.3 million at the end of March. The increase was driven principally by C$268.2 million of cash proceeds from the Bozzetto transaction. Cash outflows during the quarter included C$22.6 million of principal repayments on Bozzetto credit facilities before closing, C$25 million of Bozzetto cash at closing, C$7.5 million of interest payments, C$4.3 million of capital expenditures, C$1.8 million for share buybacks and C$11.8 million in net marketable-security investments.
Senior Notes Tender Reduces Interest Costs
Following the Bozzetto sale, Aimia completed an offer to purchase its senior notes due in January 2030. The company paid C$131.4 million on July 3 for validly tendered notes and accrued interest.
On a pro forma basis, after the notes repayment, Aimia reported liquidity of C$173.2 million. That amount included C$163.1 million in cash and C$12 million of marketable securities, less C$2 million of other current borrowings. The remaining principal balance of the 2030 notes was C$11.2 million.
Leonard said Aimia expects holding-company expenses to approximate C$7 million over the next 12 months. He noted that holding-company selling, general and administrative costs continued to decline, reflecting lower insurance, rent and professional-services costs. However, quarterly expenses included C$600,000 related to one-time strategic initiatives, particularly dual-listing activities in the United Kingdom.
Continuing Operations Largely Flat as Cortland Sales Decline
Continuing operations, consisting of Cortland and the holding-company segment, generated C$36.4 million in second-quarter revenue, compared with C$37.8 million a year earlier. Gross profit was C$8.7 million, compared with C$8.8 million, while adjusted EBITDA was C$2.3 million, down from C$2.8 million in the prior-year quarter.
Leonard attributed the modest decline to geopolitical and macroeconomic developments affecting Cortland’s rope and netting solutions business. Cortland recorded C$36.4 million in revenue, down C$3.7 million from the prior year, and adjusted EBITDA of C$4.4 million, compared with C$4.9 million a year earlier.
Lower volume in offshore energy projects and weaker broader-market demand contributed to the revenue decline, according to Leonard. Higher selling prices also affected demand, though pricing surcharges helped offset rising raw-material and freight costs associated with higher oil prices following geopolitical events in the Middle East.
Management said Cortland has implemented changes designed to improve sales, customer relationships, operations and leadership. Thomas Cherian, a finance executive with more than 30 years of experience, is joining Cortland Chief Executive Officer Wolfgang Wandl in Houston as CFO.
- Aimia said it is seeing stronger Cortland orders for the second half of 2026.
- Management expects improvement in both gross margin and EBITDA during the second half.
- Cortland adjusts pricing more frequently than annually, reviewing input-cost changes two or three times per month, Leonard said.
Summerton said the company sees “low-hanging fruit” to improve Cortland and expects benefits from operational and sales changes to begin emerging in the second half, barring further geopolitical disruption. Longer term, he said Aimia sees an opportunity to develop Cortland into a global growth platform, potentially supported by small bolt-on acquisitions that broaden geographic coverage and reduce reliance on a limited number of markets.
Investment Strategy Focuses on Cash Generation and Tax Assets
Summerton said Aimia intends to deploy capital in a disciplined fashion, favoring investment opportunities that do not require substantial holding-company funding. He said Cortland is already cash-flow generative, has cash on hand and carries no debt, and that potential acquisitions at Cortland would generally be self-funded or financed at the Cortland level.
Management also discussed Aimia’s C$12.1 million of marketable securities, describing them as preliminary investments in companies that management views as attractively valued and may eventually seek to own. Summerton said the company may change course and sell investments if valuations rise and no longer appear attractive.
Aimia’s approach is to identify companies where it sees value that may be overlooked by the broader market, including situations involving limited investor interest or shareholders seeking liquidity, Summerton said. The company seeks to build stakes without paying acquisition premiums, while retaining flexibility to exit investments if circumstances change.
Leonard said the company holds about C$500 million of capital losses within its Canadian parent entity, representing roughly half of its disclosed tax losses. He said Aimia generally intends to structure investments through that entity where appropriate, enabling it to use tax attributes against future taxable gains. The company also has operating losses that may be used against certain income streams, including dividends and interest income from downstream loans.
Summerton said Aimia has continued to review opportunities in Canada, the United Kingdom and other Western markets. While management expects the London listing to support activity in the U.K., Summerton said he would expect a potential primary listing to be in the United States over the longer term.
Separately, Summerton said Clear Media’s operating results are improving year over year, and that Aimia does not view the current period as the right time to monetize its investment in the company.
About Aimia (TSE:AIM)
Aimia Inc (TSX: AIM) is a holding company that makes long-term investments in private and public businesses through controlling or minority stakes. We target companies with durable economic advantages evidenced by a track record of substantial free cash flow generation over complete business cycles, strong growth prospects, and guided by strong, experienced management teams. Headquartered in Toronto, Canada, Aimia is positioned to invest in any sector, wherever a suitable opportunity can be identified worldwide.
