Aimia Inc T.AIM

Hundreds of Millions in Tax Loss Pools

[nozzpack]

Forgotten in all of this is the hundreds of millions in forward tax loss pools which Aimia can now use to offset profits by TryRopes.

These will convert Ebitda margins to free cash flow margins which can be used in a variety of ways including a regular dividend.

[Hadituptohere]

You need a better understanding of how bad this deal appears to be for us. If this fishnet company converts 25% of its current ebitda into free cash flow (a reasonable general assumption, which is all we can make due to the invisible financials of this entity) then we just paid 250mm for a 6mm annual benefit based on the limited financials shared with us thus far. A 2.5% free cash flow yield. We

[nozzpack]

You forget that one of the long stated objectives was to find a strong cash flowing company with a decent growth rate and use their $400 million in forward tax loss pools to protect the earnings. No debt , no taxes transforms $25 million Ebitda to $20+ million in free cash flows. Fallow cash on the balance sheet in a high inflation environment is near useless, as the share price here has well

[Hadituptohere]

If they are expecting 20mm in free cash flow from this in year one, I'd like them to say so publicly. I think they would owe it to shareholders to disclose that expectation. 

[snootchybootchy]

The company said: - EBITDA margins are expected to grow above 20 per cent within the next two years - Since 2001, the company has grown revenue at a compounded annual growth rate of approximately 20 per cent - the company requires limited capital investment requirements and high free cash flow conversion And the company also has hundreds of millions of forward tax loss