GuestLogix Inc.

GuestLogix Inc.

April 15, 2010 07:30 ET

GuestLogix Announces Strong First Quarter Results for Fiscal 2010

TORONTO, ONTARIO--(Marketwire - April 15, 2010) - GuestLogix Inc. (TSX:GXI) ("GuestLogix" or the "Company"), the leading global provider of onboard store technology to the passenger travel industry, today announced its operational and financial results for the three-month period ended February 28, 2010. All amounts are reported in Canadian dollars unless otherwise stated.

Q1 Fiscal 2010 Financial Highlights

  • Revenue of $6.0 million, up 15% from $5.2 million in Q4 F2009 and 50% from $4.0 million in Q1 F2009
  • Revenue in constant currency was $6.2 million for the quarter (1)  
  • EBITDA(2)  of $1.8 million, up 6% from $1.7 million in Q4 F2009 and 125% from $0.8 million in Q1 F2009
  • Net income of $0.3 million, up 50% from $0.2 million in Q4 F2009 and 200% from $(0.3) million in Q1 F2009
  • Cash and cash equivalents including restricted cash of $11.2 million, compared to $12.1 million in Q4 F2009 and $4.3 million in Q1 F2009

Q1 Fiscal 2010 Operational Highlights

  • Signed agreement with Frontier Airlines and Midwest Airlines, both subsidiaries of Republic Airways
  • Completed deployment with TUISki (UK)
  • Enabled Viva Macau's launch of in-flight credit card processing
  • Launched OnTouch™ Ads in partnership with JETERA
  • Expanded OnTouch™ Box Office, partnering with TicketSwitch to offer entertainment, attraction and event tickets onboard for 56 countries
  • Commenced pilot of OnTouch™ Ground Connections, selling Heathrow Express tickets at boarding gates in two major U.S. city airports, and expanded to a third airport subsequent to quarter end
  • Received U.K. Cards Association Common Criteria Accreditation for Company's Point-of-Sale handheld device with PIN Pad receivers
  • Received Chinese standards CUP and PBOC certification for Company's Point-of-Sale handheld device, facilitating Company's expansion into the Chinese airline market
  • Subsequent to quarter end, graduated to the TSX and commenced trading
  • Subsequent to quarter end, signed agreement with Continental Airlines' express partner, Express Jet Airlines
  • Subsequent to quarter end, entered channel partnership with in-flight caterer Alpha Flight Services to facilitate expansion into Australia and New Zealand
  • Subsequent to quarter end, appointed William "David" Oliver to Company's Board of Directors

"We entered fiscal 2010 with a robust annualized revenue base of $24 million, and given our progress to date, we are strongly positioned to drive continued growth," said Mr. Tom Douramakos, President and CEO, GuestLogix. "Despite a strengthening Canadian dollar and significant U.S. air travel disruptions due to severe weather conditions along the Eastern Seaboard, we posted solid sequential and year-over-year top and bottom line growth. We also continued to invest in our long-term strategic initiatives, in particular our OnTouch™ merchandizing program, to further build our market leadership position."

Financial Summary

(in millions, except per share data) Q1 F2010 Q4 F2009 Q1 F2009
Revenue $6.0 $5.2 $4.0
EBITDA $1.8 $1.7 $0.8
Net Income (loss) $0.3 $0.2 $(0.3)
Net Income (loss)/ share $0.00 $0.00 $(0.00)
Cash and cash equivalents including restricted cash $11.2 $12.1 $4.3

Passenger Trip Footprint Metrics

(All figures presented on an annualized basis) Q1 F2010 Q4 F2009 Q1 F2009
Passenger trips under agreement 947M 931M 824M
Passenger trips deployed 777M 766M 456M

F2010 Outlook

Mr. Douramakos added: "We will work to further expand our footprint, specifically in the Asia-Pacific airline and European rail industries. We are targeting a 20-25% percent airline market share, or between 140 and 175 million passenger trips under agreement, in Asia-Pacific by year end. We will also continue to help our customers implement uniquely branded onboard stores to increase their revenue and strengthen passenger loyalty. Our merchandising initiatives have the potential to significantly accelerate our growth. As such, we will continue to invest in expanding our OnTouch™ support infrastructure in terms of people, offerings and technology. However, we are committed to maintaining profitable operations. In fiscal 2010, we plan to launch a number of merchandising pilot programs across all OnTouch™ categories, positioning us to enter fiscal 2011 with a growing OnTouch™ monthly revenue run rate." 

F2010 First Quarter Conference Call

GuestLogix will host a conference call Thursday April 15, 2010 at 8:30 a.m. Eastern Time to discuss its fiscal 2010 first quarter financial and operational results, as well as its outlook for the remainder of the fiscal year. To access the conference call, dial 647-427-7450, or 1-888-231-8191. A taped replay will be available at on the Events and Presentations page of the Company's website approximately three hours after the live call.

A complete set of financial statements and management's discussion and analysis for the quarter ended February 28, 2010 will be available at and

(1) Based on November 30, 2009 closing exchange rates. See GuestLogix' MD&A and Financial Statement filed on April 15, 2010 for a detailed explanation.

(2) See GuestLogix' MD&A and Financial Statement filed on April 15, 2010 for complete definition.

About GuestLogix

GuestLogix is the leading global provider of onboard store technology, which helps airlines build and manage onboard retail operations 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 (TSX:GXI). More information is available at

© 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 April 15, 2010 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.

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