GuestLogix Inc.

GuestLogix Inc.

October 15, 2009 07:00 ET

GuestLogix Achieves Record EBITDA and Net Income in Q3 Fiscal 2009

- Company reports record quarterly revenue, an increase of 100% year-over-year - Expanding EBITDA margin reaches 27% for the quarter - Company generates profitability for the year-to-date period

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2009) - GuestLogix Inc. (TSX VENTURE:GXI) ("GuestLogix" or the "Company"), the leading provider of onboard retail solutions to the airline industry, announces its financial and operational results for the three- and nine-month periods ended August 31, 2009. All results are reported in Canadian dollars unless otherwise stated.

Q3 F2009 Financial Highlights

- Increased revenue 100% year-over-year to $4.8 million

- Achieved monthly revenue run-rate of $1.7 million in August 2009

- Delivered EBITDA of $1.3 million, or 27% of revenue

- Generated record net profit of $0.2 million

- Recorded cash and cash equivalents including restricted cash of $5.2 million as at August 31, 2009, compared to $3.6 million as at May 31, 2009 and $5.5 million as at November 30, 2008

- Subsequent to quarter end, reached a settlement agreement for legal dispute with U.S.-based company, and neither party was required to make any cash payment or to provide any compensation to the other

Financial 9 Mos. 9 Mos.
Summary Q3 F2009 Q2 F2009 Q3 F2008 F2009 F2008
Revenue $4,808,161 $4,555,182 $2,417,288 $13,364,602 $ 5,647,855
EBITDA(1) $1,302,422 $1,049,604 $ 62,157 $ 3,181,024 $ (266,040)
Net Profit
(Loss) $ 237,880 $ 33,340 $ (650,484) $ 19,508 $(2,309,416)
Net Profit
(Loss)/Share $ 0.00 $ 0.00 $ (0.01) $ 0.00 $ (0.04)

"We completed deployment onboard three airlines in the quarter, driving continued sequential improvement in our top and bottom line," said Tom Douramakos, President and CEO, GuestLogix. "We also strengthened our cash position, adding $1.2 million to the balance sheet primarily as a result of record cash generated from operations and proceeds from the exercise of options and warrants. Based on our current sales and deployment pipelines, we believe we are positioned to further strengthen our financial results in the coming quarters."

Q3 F2009 Operational Highlights: new deployments and growing customer footprint

- Completed deployment onboard Continental Airlines (NYSE:CAL), KLM Royal Dutch Airlines (EPA:AF) and an Asia Pacific-based (APAC) air carrier

- Signed U.S.-based regional airline, Horizon Air, and two airlines in the APAC region

- Subsequent to the quarter, entered into an agreement with UK's Facilities Partner Limited to provide retail solutions onboard London Midland and CrossCountry trains

Q3 F2009 Operational Highlights: leveraging platform deployments

- Went live with OnTouch™ Shopping & More for in-flight sales from the SkyMall catalog and OnTouch Ground Connections for London, England's Heathrow Express rail tickets, onboard a major North American airline

- OnTouch™ Ground Connections:

-- Announced agreements with Go Group, Viator and Toronto Airport Express, which in combination with the Company's agreement with Heathrow Express, enables customer airlines to sell ground transportation vouchers for the world's 50 busiest airports

- OnTouch™ Concierge Everywhere:

-- Entered into a strategic partnership with UK-based Mobiletrails Limited to allow customer airlines to provide their passengers with itinerary management, destination-related information regarding events, attractions and other offers, via text messages and mobile internet

- OnTouch™ Box Office:

-- Signed multi-year agreement with to sell Las Vegas-based attraction, show and event tickets onboard customer airlines

- Ads By OnTouch™:

-- Subsequent to the quarter, entered into strategic partnership with JETERA Inc. to provide personalized advertising on receipts printed via GuestLogix' handheld devices

- OnTouch™ Minutes On The Go:

-- Subsequent to quarter end, signed agreement with Forum Telecom, enabling customer airlines to offer mobile phone and minutes packages, specifically designed for international travel

Passenger Trip Footprint Metrics Q3 F2009 Q2 F2009 Q3 F2008
(All figures presented on an
annualized basis)
Passenger trips under agreement
at quarter end 844 million 824 million 617 million
Passenger trips deployed at
quarter end 680 million 563 million 218 million

Mr. Douramakos added: "We continued to execute on our merchandising strategy, by launching two of our OnTouch offerings onboard one of our key airline customers in mid-July. While airline adoption of our in-flight merchandising is still in the early stages, passenger response has been positive. We are excited about the long-term growth potential OnTouch creates for GuestLogix. Providing our customers with a suite of offerings that they can sell onboard positions us to accelerate top line growth, specifically by increasing our revenue per passenger trip, with minimal additional investment."

F2009 Outlook

As GuestLogix gains further traction in new geographic markets, particularly the Asia Pacific region, the Company is working toward a goal of approximately one billion passenger trips under agreement in fiscal 2009. In addition, with a robust deployment pipeline, most of which GuestLogix expects to deploy by fiscal year end, the Company believes it remains on track to achieve a $2.0 million monthly revenue run-rate as at November 2009.

Q3 F2009 Conference Call

GuestLogix will host a conference call Thursday, October 15, 2009 at 8:30 a.m. Eastern Time to discuss its third quarter fiscal 2009 financial and operational results and its outlook for the balance of 2009. To access the conference call by telephone, dial 416-644-3424 or 1-800-594-3790. The conference call will be archived for replay and will be available until Thursday, October 22, 2009. To access the archived conference call, dial 416-640-1917 or
1-877-289-8525 and enter reference number 4167852#. The replay will also be available at

A complete set of financial statements and management's discussion and analysis for the third quarter ended August 31, 2009 will be available at and on the Company's website at

(1) See GuestLogix' MD&A and Financial Statement filed on October 15, 2009, for complete definition.

About GuestLogix

GuestLogix is the leading provider of onboard retail technology and solutions to the passenger travel industry. Through its industry standard onboard transaction processing engine, the Company provides carriers the tools to become successful onboard retailers and by way of its OnTouch™ merchandising platform it facilitates innovative products and services to enhance passenger experience and propel ancillary revenue growth. With a customer base comprising nine of the top 11 global airlines, GuestLogix maintains contracts to serve more than 35 per cent of the world airline passenger traffic via its proprietary platform based on the 2008 passenger data compiled by Air Transport Intelligence (ATI). To date in 2009, GuestLogix has been named one of Canada's Top 100 fastest growing companies by Profit Magazine, one of Canada's Top 100 technology companies according to Canadian Business Magazine, and the Company ranked as one of Deloitte's 50 fastest growing Canadian technology companies. Additional information on GuestLogix can be found at and

(C) 2009 GuestLogix. All Rights Reserved. All other trademarks and trade names are the property of their respective owners.

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GuestLogix' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Filing Statement filed on October 15, 2009 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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