GuestLogix Inc.

TSX : GXI


GuestLogix Inc.

March 24, 2014 16:00 ET

GuestLogix Achieves Fourth Sequential Quarter of Record Revenue and Announces Fiscal Year 2013 Results

Company achieves record revenue with 28% YOY growth and carries strong cash balance into 2014 as it prepares to capture lucrative self-service retail opportunities both onboard and off board

TORONTO, ONTARIO--(Marketwired - March 24, 2014) - GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology to airlines and the passenger travel industry, today announced its financial and operational results for the quarter and 12-month period ended December 31, 2013. Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

Financial Highlights

(U.S. Dollars) 3 months ended December 31, 2013 4 months ended December 31, 2012 12 months ended December 31, 2013 13 months ended December 31, 2012
REVENUE $ 8.3M $ 8.2M $ 30.5M $ 25.8M
OPERATING EXPENSES(1) $ 9.8M $16.2M $ 33.4M $ 36.7M
EBITDA(2) $ (0.6)M $ (7.4)M $ 0.7M $ (9.5)M
Net Income (Loss) $ (2.0)M $ (10.2)M $ (3.8)M $ (12.6)M
Net Income (Loss) Per Share $ (0.03) $ (0.15) $ (0.05) $ (0.19)

A complete set of financial statements and Management's Discussion and Analysis for the three and twelve month periods ended December 31, 2013 will be available at www.sedar.com and www.guestlogix.com.

(1) Includes depreciation, amortization, and stock-based compensation expense, but excludes interest and foreign exchange.

(2) Defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, foreign exchange, and change in fair value of derivative warrant liability.

"In 2013, we achieved great success in establishing two of the most exciting partnerships in the Company's history with Thales and NCR. We remain committed to putting GuestLogix back on a solid growth path and drive a new level of shareholder value," said Brett Proud, President & Chief Executive Officer of GuestLogix. "We have successfully achieved another record revenue quarter and enter 2014 with significant growth opportunities in the near-term as we broaden our transaction processing support both within the aircraft cabin as well as off board, and transition from a pure hardware-based transaction processor to a software-based transaction processor."

The Company achieved a 28% revenue growth year-over-year based on an adjustment to its 2012 results as 2012 was a 13-month fiscal year. In 2012, GuestLogix achieved less than 1% of its revenue from software-based transaction processing. In 2013, more than 5% of the Company's revenue was generated from software-based transaction processing. This is in line with the Company's strategy to drive significantly higher-margin revenues.

GuestLogix incurred a number of expenses in the fourth quarter of 2013 that are one-time by their nature, and as a result the financial performance in the quarter was negatively impacted. These costs total approximately $1 million and would have had a significantly positive impact on EBITDA in the quarter.

FY2013 Operational Highlights

  • Gross Transaction Value Processed ("GTV")
    • Processed GTV of $917 million
  • Increase (and Protect) Number of Transactions
    • Signed major 10-year agreement with in-flight entertainment leader, Thales Avionics to integrate Company's Transaction Processing Engine® in support of self-service onboard retail programs via seatback screens
    • Signed multi-year agreement with European airline, Germania to provide onboard retail technology platform
    • Signed 4-year agreement with leading Asia Pacific airline, Cathay Pacific to support in-flight duty-free program as well as pre-orders and post-flight delivery through channel partner, Inflight Sales Group
    • Signed first customer in mainland China, Spring Airlines, in multi-year agreement to support the Buy on Board and Duty Free programs of the carrier
    • Signed Asia's largest airline, China Southern with multi-year agreement for an in-flight seat upgrade program
    • Signed multi-year agreement with Canadian flag-carrier, Air Canada to monetize in-flight entertainment systems beginning with new leisure carrier, Air Canada rouge
    • Signed multi-year agreement with Canada's leisure rail carrier, Rocky Mountaineer to supply both onboard retail technology as well as warehouse management system
    • Signed major 10-year agreement with leading retail technology firm, NCR, to support its travel division by integrating GuestLogix' Transaction Processing Engine® into several self-service retail solutions including kiosks and consumer mobile applications
    • Renewed Middle Eastern carrier, flydubai in multi-year agreement for continued use of onboard retail technology platform
    • Signed multi-year partnership with Toronto-based airline, Porter, to utilize as the Company's showcase / demonstration center for next-generation technologies
  • Increase Average Transaction Value
    • China Southern agreement incorporates GuestLogix' seat upgrade technology which significantly increases the average transaction value for that customer
    • NCR partnership is expected to increase product mix potential including baggage fees, lounge access, seat upgrades and destination-based content
  • Earn More Fees Per Transaction
    • Agreement with China Southern includes funds reconciliation and Ancillary Insights™ platform
    • Momentum Services and Eurostar sign agreement to use GuestLogix for Merchant of Record Services
    • Agreement with Cathay Pacific includes Ancillary Insights™ platform
    • Agreement with Rocky Mountaineer includes funds reconciliation and Ancillary Insights™ platform
    • NCR partnership includes optional upgrades to airlines for Ancillary Insights™ platform
  • Strengthening our Operations & Finances
    • Successfully completed integration of major acquisition, Initium Onboard
    • Closed private placement in September raising gross proceeds of CAD$4.0 million
    • Arranged CAD$2.3 million lease facility
    • Closed an equity offering in December 2013 raising gross proceeds of CAD$11.5 million
    • Arranged a USD$4 million line of credit with a Canadian chartered bank

FY2013 Conference Call

GuestLogix will host a live conference call on Monday, March 24, 2014 at 4:30 pm ET to discuss its fiscal 2013 financial and operational results as well as the Company's outlook for fiscal 2014. To access the conference call, please dial 862-255-5346 or 1-888-567-1602. A taped replay of the call will be available at http://www.guestlogix.com/investors/investor-events/.

About GuestLogix

GuestLogix Inc. (TSX:GXI), is a global leader in comprehensive retail solutions delivered to the passenger travel industry, both onboard and off board. Bringing over a decade of expertise as the industry's most trusted onboard transaction processing partner to airlines, rail operators and elsewhere in the passenger travel industry, GuestLogix powers the industry's growing reliance on ancillary revenue generation. Both direct to operators as well as through partnerships with global leaders in catering, duty-free, inflight entertainment and self-service retail experts, the Company provides the payment services touching over 1 billion travelling consumers each year. GuestLogix' global headquarters and centre for product innovation is located in Toronto, with regional head offices located in Dallas, London and Hong Kong. More information is available at www.guestlogix.com.

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 March 24, 2014 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.

©2014 GuestLogix. All Rights Reserved.

Contact Information

  • Media & Investor Relations
    Dan Thompson
    SVP, Marketing, Communications & Investor Relations
    GuestLogix
    416-849-1566
    dthompson@guestlogix.com