Mittleman Brothers recently published its Q3 investor letter (you can download a copy here). In the letter, the hedge fund discussed its investment thesis on Aimia Inc (TSE:AIM) (GAPFF), a $533-million market cap data-driven marketing and loyalty analytics company based in Quebec, Canada. Let’s take a look at comments made by Mittleman Brothers in the letter about Aimia.

Aimia Inc (TSE:AIM), formerly Groupe Aeroplan, is a data-driven marketing and loyalty analytics company headquartered in Montreal, Quebec, Canada. The company runs manages many loyalty programs including Aeroplan in Canada, Nectar in UK and Chile. It also holds stakes in loyalty programs such as Club Premier in Mexico, Air Miles Middle East and Think Big.

For the third quarter ended September 30, Aimia Inc (TSE:AIM) reported better results, exceeding market expectations. Gross billings were $496.8 million, down 10.0% on a constant currency basis including the impact of divestitures. Americas coalitions gross billings were up $3.4 million, or 1.0%, while international coalitions gross billings were down $11.6 million, or 8.9%, on a constant currency basis. Nectar saw a positive contribution from the first quarter of Daily Mail issuance but lower Sainsbury’s bonusing and the Homebase exit resulted in an overall decline. Air Miles Middle East was down on fewer promotional miles and challenging market dynamics in the region. Adjusted EBITDA was $60.3 million, or 12.1% of gross billings, including a restructuring expense of $11.1 million. That compares to adjusted EBITDA of $60.5 million, or 10.8%, last year.

Shares of Aimia have jumped more than 41% since September 30. The stock, however, is down more than 60% year-to-date.