GuestLogix Inc.
TSX : GXI

GuestLogix Inc.

February 24, 2011 20:49 ET

CORRECTION FROM SOURCE: GuestLogix Announces Record Fiscal 2010 Year End Results

Grew revenue 38% and EBITDA 42%

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2011) - The following corrects and replaces the release issued at 4 pm ET on Feb, 24, 2011. The earnings per share for the fourth quarter of 2010 has been amended from $0.01 to $0.00. The complete and corrected release follows.

GuestLogix Inc. (TSX:GXI) ("GuestLogix" or the "Company"), the leading transaction processor of ancillary revenues and the provider of onboard store technology to airlines and the passenger travel industry, today announced record results for the three- and 12-month periods ended November 30, 2010. All amounts are reported in Canadian dollars unless otherwise stated.

F2010 Financial Highlights

  • Revenue of $25.7 million, up 38% from $18.6 million in F2009
    • Revenue in constant currency(1)  was $26.7 million for F2010
  • EBITDA(2)  of $6.8 million, up 42% from $4.8 million in F2009
    • Excluding OnTouch® Merchandising, EBITDA was $8.2 million, up 71% from F2009
  • Net income of $0.6 million, up 200% from $0.2 million in F2009
    • Excluding OnTouch® Merchandising expenses, net income was $2.0 million, up 900% from F2009
  • Cash and cash equivalents including restricted cash of $11.5 million compared to $12.1 million as at F2009 year end

F2010 Operational Highlights

  • Signed new customer agreements with airlines in North America, Europe and Asia Pacific representing a total of 149 million passenger trips annually
  • Completed onboard deployments representing 161 million passenger trips annually, including two European rail customers
  • Entered into channel partnerships with three major catering and duty free service providers to the Asia Pacific airline industry
  • Signed agreements for OnTouch® Merchandising program trial commitments with 11 customer airlines globally, spanning all six merchandising categories
  • Named 9th fastest growing technology company in Canada and the 40th fastest growing technology company in North America according to Deloitte's 2010 Technology Fast 50 and Fast 500 rankings, respectively

"Driven by new customer wins and deployments, we delivered excellent top and bottom line growth in fiscal 2010, with fourth quarter EBITDA margins returning to historical levels of 28%," said Mr. Tom Douramakos, President and CEO, GuestLogix. "Our results demonstrate the strength and profitability of our retail platform, as we delivered improvements in EBITDA and net income despite the increased strategic investments we made in our merchandising platform, a longer term revenue growth opportunity. Excluding these expenses, EBITDA was $8.3 million and net income was $2.0 million for the year."

"Mr. Douramakos continued: "Looking to fiscal 2011, we are confident we have the right strategy in place to further strengthen our financial results. We will increase the number and value of the transactions we process by: one, adding passenger access points to our platform both onboard and off board; two, expanding our footprint by working through our deployment backlog of 153 million annual passenger trips, adding new airline customers and moving into other travel verticals; and three, implementing additional onboard merchandising via airline driven programs and our OnTouch® merchandising platform. We also plan to augment our organic growth initiatives through acquisitions."

Passenger Trip Footprint Metrics
(All figures presented on an annualized basis) Q4 F2010 Q4 F2009 Q3 F2010
Passenger trips under agreement 1.08B 931M 1.03B
Passenger trips deployed 927M 766M 927M
       
       
Financial Summary
  F2010 F2009 Q4 F2010 Q4 F2009 Q3 F2010
Revenue $25.7M $18.6M $6.5M $5.2M $6.8M
Total Operating Expenses (3)  
  OnTouch® Retail Technology Platform $22.7M $17.7M $5.6M $4.3M $6.3M
  OnTouch® Merchandising Platform $1.5M $0.4M $0.4M
EBITDA $6.8M $4.8M $1.8M $1.7M $1.5M
Net income (loss) $0.6M $0.2M $0.2M $0.2M $0.1M
Net income per share $0.01 $0.00 $0.00 $0.00 $0.00

F2010 Conference Call

GuestLogix will host a conference call Thursday, February 24, 2011 at 4:30 p.m. Eastern Time to discuss its fiscal 2010 financial and operational results, as well as its outlook for fiscal 2011. To access the conference call, dial 647-427-7450, or 1-888-231-8191. A taped replay will be available at www.guestlogix.com on the Events and Presentations page.

A complete set of financial statements and Management's Discussion and Analysis for the three- and-12-month period ended November 30, 2010 will be available at www.sedar.com and www.guestlogix.com

(1) Based on November 30, 2009 closing exchange rates. See GuestLogix' MD&A and Financial Statement filed on February 24, 2011 for a detailed explanation.

(2) See GuestLogix' MD&A and Financial Statement filed on February 24, 2011 for complete definition.

(3)  Includes amortization, stock based compensation, but excludes interest in F/X gains or losses

About GuestLogix

GuestLogix is the leading global transaction processor of ancillary revenues and the provider of onboard store technology and merchandising, which helps airlines and other operators create, manage, and control onboard retail environments tailored to their needs and their passengers. Serving approximately 40% of the global airline passenger traffic, GuestLogix has become a trusted onboard transaction processing 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 Seoul, South Korea. GuestLogix is publicly traded on The Toronto Stock Exchange (Symbol: GXI.T). More information is available at www.guestlogix.com.

© 2011 GuestLogix. All Rights Reserved. ®OnTouch is a trademark of GuestLogix Inc. and is registered in the United States and may be pending or registered in other countries. 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 February 24, 2011 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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