GuestLogix Inc.

GuestLogix Inc.

April 14, 2011 16:00 ET

GuestLogix Announces Fiscal 2011 First Quarter Results

TORONTO, ONTARIO--(Marketwire - April 14, 2011) - 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 its financial and operational results for the three-month period ended February 28, 2011. All amounts are reported in Canadian dollars unless otherwise stated.

Q1 F2011 Financial Highlights

  • Total revenue of $6.4 million, compared to $6.0 million in Q1 F2010
    • Assuming no currency fluctuations in the quarter, revenue would have been $6.5 million(1) for Q1 F2011
  • EBITDA(2) of $1.7 million, compared to $1.8 million in Q1 F2010
    • Excluding investments in OnTouch® Merchandising and in other new initiatives, EBITDA was $2.0 million
  • Net loss of $0.04 million, compared to net income of $0.3 million in Q1 F2010
    • Excluding investments in OnTouch® Merchandising and in other new initiatives, net income was $0.2 million
  • Cash and cash equivalents including restricted cash of $10.6 million, compared to $11.5 million as at F2010 year end

Q1 F2011 Operational Highlights

Gross Transactions Processed ("GTV")

  • Increased GTV to $144 million, up 26% from $114 million in Q1 F2010
  • Increased GTV 1.4% from $142 million in Q4 F2010

OnTouch® Retail Technology Platform Footprint Expansion

  • Renewed agreements with two major North American airlines representing more than 250 million passenger trips annually
  • Completed deployment representing 8 million passenger trips annually

OnTouch® Merchandising Platform Customer Wins

  • Signed six new agreements for OnTouch® Merchandising program commitments for a total of 47 commitments at quarter end
    • Company now working with 12 airlines and its first airport authority customer on OnTouch® Merchandising programs

New Retail Channels for OnTouch® Merchandising Platform

  • Signed partnership agreement to integrate onboard store technology with digEcor's leading portable in-flight entertainment system

OnTouch® Retail Technology Platform Enhancements

  • Completed development of OnTouch® Analytics Sales Suite, the first module of the Company's Onboard Retail Analytics Platform for the airline industry

OnTouch® Merchandising Platform Product Inventory Expansion

  • Subsequent to quarter end, signed an agreement with SuperShuttle to offer transportation service from 35 U.S. airports and three airports in France

"Our focus for the quarter was advancing our fiscal 2011 growth strategy and renewing customer contracts," said Mr. Tom Douramakos, President and CEO, GuestLogix. "Our major airline clients that came up for renewal in Q1 re-signed. Our core retail technology platform continued to demonstrate its strength and profitability, delivering an EBITDA margin of 31% excluding investments we made in our merchandising platform and other new initiatives. We also made progress with our merchandising programs, with at least 13 deployments scheduled to go live by the end of the fiscal year that could represent $287 million in GTV annually assuming a 1% customer take-up rate."

"Mr. Douramakos continued: "We remain excited about the opportunities in front of us, and we are confident we have the right plan in place to drive long-term growth. We will increase the number and value of the transactions we process by: one, expanding our deployed footprint; two, adding new airline customers and penetrating other travel verticals; three, adding new channels for our merchandising platform, which includes ready-made products; four, adding more onboard and off board passenger access points to our offering; and five, implementing additional onboard retailing initiatives via airline driven programs and our merchandising platform. We also plan to augment our organic growth strategy with acquisitions, which we are actively pursuing."

Key Operating Metrics
Q1 F2011Q1 F2010
GTV processed in the quarter$144M$114M
Total revenue as a percentage of GTV4.4%$5.7%
Passenger trips under agreement (3)1.08B947M
Passenger trips deployed (3)935M777M
Financial Summary
Q1 F2011Q1 F2010
Operating Expenses (4)
OnTouch® Retail Technology Platform$5.7M$5.5M
OnTouch® Merchandising Platform & Other New Initiatives$0.3M
Net Income (Loss)$(0.04)M$0.3M
Net Income Per Share$0.00$0.00

Q1 F2011 Conference Call

GuestLogix will host a conference call Thursday, April 14, 2011 at 4:30 p.m. Eastern Time to discuss its Q1 fiscal 2011 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.

A complete set of financial statements and Management's Discussion and Analysis for the three-month period ended February 28, 2011 will be available at and

(1)Assuming consistent exchange rates as at November 30, 2010 closing exchange rates. See GuestLogix' MD&A filed on April 14, 2011 for a detailed explanation.
(2)Defined as Earnings Before, Interest, Taxes, Depreciation and Amortization
(3)Figures presented on an annualized basis
(4)Includes amortization and stock based compensation, but excludes interest and 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

© 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 April 14, 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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