GuestLogix Inc.

GuestLogix Inc.

February 27, 2012 16:00 ET

GuestLogix Announces Fiscal 2011 Results

TORONTO, ONTARIO--(Marketwire - Feb. 27, 2012) - GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology solutions to airlines and the passenger travel industry today announced its financial and operational results for the three- and 12-month periods ended November 30, 2011. All amounts are reported in Canadian dollars unless otherwise stated.

F2011 Financial Summary

  • Revenue of $25.1 million, compared to $25.7 million in F2010.
    • Assuming consistent exchange rates as at November 30, 2010 closing, revenue would have been $25.8 million(1)for F2011.
  • EBITDA(2) of $4.2 million, compared to $6.8 million in F2010.
    • EBITDA was $5.1 million, excluding a $0.9 million non-cash increase in the Company's bad debt provision, the majority of which was included in Q4 F2011. The Company continues to maintain healthy and active relationships with its customer base. However, given certain challenges with a few specific customers, the Company took the provision as a precautionary measure.
  • Excluding investments in OnTouch® Content and other new initiatives, as well as the increase in the Company's bad debt provision, EBITDA was $6.0 million compared to $8.3 million in F2010.
  • Net loss of $0.8 million compared to net income of $0.6 million in F2010.
    • Excluding investments in OnTouch® Content and other new initiatives, as well as the increase in the Company's bad debt provision, net income was $1.0 million, compared to $2.1 million in F2010.
  • Cash and cash equivalents including restricted cash of $6.5 million compared to $11.5 million as at November 30, 2010.

F2011 Operational Highlights

Gross Transactions Processed ("GTV")

  • Processed GTV of $589 million up 17% from $503 million in F2010.

Expanded Technology Platform Footprint

  • Deployed platform onboard a US regional carrier network, Garuda Indonesia, Hong Kong Airlines, Hong Kong Express and Aer Lingus.
  • Renewed contract with large North American carrier and Southwest Airlines (including the addition of AirTran Airways).

Extended Technology Platform Access

  • Signed agreement to integrate solution with digiEcor's portable in-flight entertainment system.

Enhanced Technology Platform

  • Released OnTouch Analytics®.
  • Developed next-generation handheld devices.
  • Developed payment integration with IFE systems.
  • Developed Storefront solution for WiFi-based Connectivity providers.
  • Commenced development of Company's enterprise mobile platform.
  • Introduced Destination Deals platform.

Added Content

  • Deployed OnTouch® Box Office onboard leading global airline.

Corporate Developments

  • Opened GuestLogix U.S.A. in Dallas, Texas, European head office near London, England and Asia-Pacific headquarters in Hong Kong to accelerate growth in key target geographic regions.
  • Launched normal course issuer bid, buying back 0.6 million shares during the year for a total of $0.3 million

"Fiscal 2011 was about securing our future and maintaining our technology leadership," said Mr. Tom Douramakos, President and CEO, GuestLogix. "We renewed key customers, stabilized our client base by enhancing customer service and strengthened our infrastructure to better support our growth in each target geographic region. On the technology front, we started the development of our next-generation Technology Platform. It now includes new handhelds and offerings such as Global Payments, new Warehouse Logistics, Data Analytics, Auto Reconciliation, as well as an Enterprise Mobile Platform and Destination Deals platform. We also obtained important worldwide certifications from an airline and payment industry perspective. With the steps we took in fiscal 2011, we believe we are well positioned to resume our growth."

Mr. Douramakos continued: "In fiscal 2012, we will focus on the airline sector, working to fulfill demand rather than create and execute regionally. In the Americas, we plan to leverage our existing footprint by selling our new technology offerings while also expanding into Latin America. In EMEA, we are working to launch our new technology offerings in continental Europe and are targeting expansion opportunities, predominantly in Eastern Europe and the Middle East. In Asia-Pacific, the largest regional opportunity, we are working to increase our market share, particularly in China, Korea and Japan. In addition, over the past 18 months we created a portfolio of assets, including our integrated merchandising content, which we plan to monetize in 2012. Overall, we believe that by successfully executing on these initiatives we will fuel our top line growth."

Key Operating Metrics
F2011 F2010 Q4 F2011 Q4 F2010
GTV processed in the period $589M $503M $146M $142M
Total revenue as a percentage of GTV 4.3% 5.1% 4.4% 4.6%
Financial Summary
F2011 F2010 Q4 F2011 Q4 F2010
Revenue $25.1M $25.7M $6.3M $6.5M
Operating Expenses (3)
OnTouch® Retail Technology Platform $24.8M $22.7M $7.2M $5.7M
OnTouch® Content & Other New Initiatives $0.9M $1.5M $0.3M $0.3M
EBITDA $4.2M $6.8M $(0.2)M $1.8M
Net Income (Loss) $(0.8)M $0.6M $(1.0)M $0.2M
Net Income Per Share $(0.01 ) $0.01 $(0.02 ) $0.00

F2011 Conference Call Details

GuestLogix will host a conference call on Monday, February 27, 2012 at 4:30 p.m. Eastern Time to discuss its fiscal 2011 financial and operational results as well as the Company's outlook for fiscal 2012. To access the conference call, please dial 647-427-7450, or 1-888-231-8191. A taped replay of the call will be available at

A complete set of financial statements and Management's Discussion and Analysis for the three- and 12-month periods ended November 30, 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 February 27, 2012 for a detailed explanation.
(2) Defined as Earnings Before, Interest, Taxes, Depreciation and Amortization.
(3) Includes amortization and stock based compensation, but excludes interest and F/X gains or losses.

About GuestLogix

GuestLogix Inc. is the leading global provider of onboard store technology and merchandising solutions, which help airlines and other travel operators create, manage, and control onboard retail environments tailored to their needs and their passengers. Serving approximately 90% of the North American airline passenger traffic and 40% of the global airline passenger traffic, GuestLogix has become a trusted onboard transaction processing partner to airlines around the world. The Company's global headquarters and centre for product innovation is located in Toronto, Canada with regional head offices around the globe including GuestLogix USA, serving the Americas, located in Dallas, Texas; GuestLogix Europe, located in London, UK, serving Europe, Middle East and Africa; GuestLogix Asia Pacific, located in Hong Kong; and a sales and support office located in Singapore. Logistics centres are situated in Toronto, Dallas, London and Seoul with a software development centre located in India. On February 1, 2012, the Company marked a major milestone celebrating its 10th Anniversary. Since its founding in 2002, the Canadian technology startup has established itself as a pioneer of the onboard retail revolution through its innovative technology solutions. GuestLogix is pleased to be recognized as one of Deloitte's North America Technology Fast 500 and Canada Technology Fast 50 companies. GuestLogix is publicly traded on The Toronto Stock Exchange (GXI.T). More information is available at

© 2012 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 27, 2012 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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