GuestLogix Inc.
TSX VENTURE : GXI

GuestLogix Inc.

January 26, 2010 16:00 ET

GuestLogix Announces Preliminary Fiscal 2009 Fourth Quarter and Year-End Results

Company expects to deliver record results driven by unprecedented growth in onboard store technology deployments

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2010) - GuestLogix Inc. (TSX VENTURE:GXI) ("GuestLogix" or the "Company"), the world's leading onboard store technology provider to the passenger travel industry, today announced operational and preliminary financial results for the three- and 12-month periods ended November 30, 2009. All figures cited in this release are based on preliminary, unaudited financial data and are subject to change as a result of the year-end audit process. All amounts are reported in Canadian dollars unless otherwise stated.

Management expects fiscal 2009 year-end and fourth quarter results to be as follows:

  • F2009 revenue of $18.6 million, up 119% year-over-year
    • Q4 revenue of $5.2 million, up 84% year-over-year
  • Monthly revenue run-rate of approximately $2.0 million in November 2009
  • F2009 EBITDA(1) of $4.8 million, or 26% of revenue
    • Q4 EBITDA of $1.7 million, or 32% of revenue
  • F2009 net income of $0.2 million
    • Q4 net income of $0.2 million
  • Cash and cash equivalents including restricted cash of $12.1 million as at November 30, 2009, compared to $5.2 million as at August 31, 2009 and $5.5 million as at November 30, 2008

"Fiscal 2009 was a milestone year," said Tom Douramakos, President and CEO, GuestLogix. "We increased our deployed passenger trips by nearly 100 percent, and grew our customer base, particularly in Europe, to 33 airlines and three rail companies worldwide. We also partnered with numerous content providers to launch destination-related onboard offerings, and commenced successful OnTouch program launches with two major U.S. carriers. As a result, we more than doubled revenues, generated strong EBITDA margins and achieved profitability. In addition, through the completion of a $7.2 million bought deal financing, we significantly strengthened our cash balance, well positioning us to continue to invest in the business to drive further growth." 

Financial Summary

(in millions) Q4 F2009 (E ) Q3 F2009 (A ) Q4 F2008 (A ) F2009 (E ) F2008 (A )
Revenue $5.2   $4.8   $2.8   $18.6   $8.5  
EBITDA $1.7   $1.3   $(1.0 ) $4.8   $(1.3 )
Net Income $0.2   $0.2   $(2.0 ) $0.2   $(4.3 )

Passenger Trip Footprint Metrics

(All figures presented on an annualized basis) F2009 Q3 F2009 F2008
Passenger trips under agreement at year-end 931 million 844 million 703 million
Passenger trips deployed at year-end 766 million 680 million 395 million

Mr. Douramakos added: "We expect our momentum to continue in fiscal 2010, and to build on our $24 million annualized recurring revenue run rate. We will work through our current deployment pipeline, while adding to our customer base by expanding our footprint, primarily in the Asia Pacific region, and entering the rail market in Europe. Another key focus for fiscal 2010 is to further demonstrate to airlines the benefits of destination-based onboard sales programs for growing revenue and increasing passenger loyalty. We will work with our customers to help them build and implement branded onboard stores, leveraging the early success we have seen with those customers who are already working with us on such initiatives."

In March, GuestLogix will report complete audited results for the three– and 12-month periods ended November 30, 2009. The Company will host an earnings conference call at that time.

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

About GuestLogix

GuestLogix is the world's onboard store technology leader. The Company provides technology to help airlines build, manage and control onboard stores tailored to their needs and their passengers. Serving 35% of the global airline passenger traffic, GuestLogix has become a trusted partner to airlines around the world. The Company is headquartered in Toronto, Canada and maintains sales and support facilities in the US, UK, Singapore, and S. Korea. GuestLogix is publicly traded in Toronto (Symbol: GXI.V). For more information please visit www.guestlogix.com and www.ontouch.com.

© 2010 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.

Contact Information