GuestLogix Inc.

GuestLogix Inc.

June 29, 2009 07:00 ET

GuestLogix Delivers 150% Year-Over-Year Revenue Growth and Achieves Profitability in Q2 Fiscal 2009

TORONTO, ONTARIO--(Marketwire - June 29, 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 six-month periods ended May 31, 2009. All results are reported in Canadian dollars.

Q2 F2009 Financial Highlights

- Increased revenue 150% to $4.6 million, up from $1.8 million in Q2 fiscal 2008

-- Excluding foreign exchange impact, revenue for Q2 fiscal 2009 was $4.8 million

- Monthly revenue run-rate of $1.5 million in May 2009

- Generated $1.0 million in EBITDA, up from $(0.3) million in Q2 fiscal 2008

- Achieved a net profit of $0.03 million, up from $(1.1) million in Q2 fiscal 2008

- Cash and cash equivalents including restricted cash was $3.6 million as at May 31, 2009, compared to $5.5 million as at November 30, 2008

Summary Q2 F2009 Q1 F2009 Q2 F2008 H1 F2009 H1 F2008
Revenue $4,555,182 $4,001,259 $1,826,710 $8,556,441 $3,230,567
EBITDA(1) $1,049,604 $828,998 $(336,971) $1,878,602 $(328,197)
Net Profit
(Loss) $33,340 $(251,712) $(1,118,028) $(218,372) $(1,658,932)
Net Profit
(Loss)/Share $0.00 $0.00 $(0.02) $0.00 $(0.03)

"Our strong momentum continued in Q2, resulting in our first quarter of profitability, which we believe is sustainable," said Tom Douramakos, President and CEO, GuestLogix. "With our success in expanding our deployed customer base, we achieved more than 100% of our total fiscal 2008 revenue in the first half of fiscal 2009. In the coming quarters, as we execute on our strategy to grow our passenger trip footprint and deploy our sizable customer pipeline, we believe we are well positioned to improve our top line, capitalize on the leverage in our business model and, in turn, further strengthen our bottom line results."

Q2 F2009 Operational Highlights: growing deployed customer footprint

- Completed deployment onboard United Airlines

- Completed deployment with British Airways (BA), which will use GXI's platform to transact duty free and other merchandise purchases onboard. BA expects to complete its fleet-wide roll-out by mid-summer

- Completed deployment onboard Saudi Arabian Airlines, subsequent to quarter end

- Renewed contract with American Airlines, and incorporated GXI's platform into the air carrier's new cashless cabin, in-flight retailing initiative

Q2 F2009 Operational Highlights: leveraging platform deployments

- Launched OnTouch, the Company's new merchandising division, to offer airlines a complete portfolio of products and services to sell onboard, further facilitating the airline industry's shift toward driving ancillary revenue growth

- Completed in-flight SkyMall shopping pilot and commenced North American fleet-wide deployment onboard a major US airline

- Signed an agreement with Heathrow Express to offer transfer vouchers on GXI customers' flights from US airports to London, UK, and commenced a pilot onboard a major US airline

Mobile Virtual Store™ Footprint Metrics Q2 F2009 Q1 F2009 Q2 F2008
(All figures presented on an annualized
Passenger trips under agreement at
quarter end 824 million 824 million 584 million

Passenger trips deployed at quarter
end 563 million 456 million 215 million

Mr. Douramakos continued: "With the launch of OnTouch, we have heightened our focus on the second phase of our growth strategy: onboard merchandising. OnTouch offers passengers a new in-flight experience by making products and services they want and need while traveling available for purchase onboard. By providing our customer airlines with a suite of products and services that can be sold onboard exclusively via our technology, we are positioned to grow our revenue per passenger trip with minimal capital investment and short deployment timelines. As we continue to build out our OnTouch portfolio, we have entered into pilot programs with a major US airline and have more activity planned for the coming months."

F2009 Outlook

"In the near term, we will continue to work to expand our passenger trip footprint," Mr. Douramakos added. "Over the longer term, our vision is to utilize OnTouch to transition GuestLogix from an onboard retailing technology provider to the enabler of a large-scale onboard marketplace."

As a result of the rapid adoption of its Mobile Virtual Store™ technology, GuestLogix has more than 30 of the world's leading airlines under agreement. GuestLogix continues to work to sign new customers, particularly in the Asia Pacific region. As such, the Company believes it will achieve its goal of one billion passenger trips under agreement in fiscal 2009. In addition, GuestLogix expects to continue to expand its deployed customer base, keeping the Company on track to reach a $2.0 million monthly revenue run-rate by fiscal year end.

With the launch of OnTouch, GuestLogix is positioned to accelerate its financial growth over the long-term. Third-party research into the buying habits of travelers has revealed that more than 50% of passengers will buy destination-based products and services onboard for convenience reasons. Airlines can deploy OnTouch quickly and are not required to carry physical inventory onboard, enabling them to establish new profitable revenue streams with minimal investment.

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

Q2 F2009 Conference Call

GuestLogix will host a conference call Monday, June 29, 2009 at 8:30 a.m. Eastern Time to discuss its second quarter fiscal 2009 financial and operational results and its outlook for the balance of 2009. To access the conference call by telephone, dial 416-644-3415 or 1-800-733-7571. The conference call will be archived for replay and will be available until Monday, July 6, 2009. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter reference number 21308371#. The replay will also be available at

(1) See GuestLogix' MD&A and Financial Statement filed on June 29, 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 platform, the Company provides carriers the tools to become successful onboard retailers and by way of its OnTouch™ merchandising division it facilitates innovative products and services to enhance passenger experience and propel ancillary revenue growth. With a customer base comprising seven of the top 10 global airlines GuestLogix maintains contracts to serve more than 30 per cent of the world airline passenger traffic through its proprietary platform. Additional information on the Company 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 June 29, 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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