GuestLogix Inc.

GuestLogix Inc.

July 14, 2011 16:05 ET

GuestLogix Announces Fiscal 2011 Second Quarter Results

- Company Achieves 10th Consecutive Quarter of Positive EBITDA -

TORONTO, ONTARIO--(Marketwire - July 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- and six-month periods ended May 31, 2011. All amounts are reported in Canadian dollars unless otherwise stated.

Q2 F2011 Financial Highlights

  • Total revenue of $6.1 million, compared to $6.4 million in Q2 F2010
    • Assuming consistent exchange rates as at November 30, 2010 closing, revenue would have been $6.4 million(1) for Q2 F2011
  • EBITDA(2) of $1.4 million compared to $1.7 million in Q2 F2010
    • Excluding investments in OnTouch® Merchandising and other new initiatives, EBITDA
      was $1.5 million compared to $2.1 million in Q2 F2010
  • Net income of $0.2 million compared to net income of $0.05 million in Q2 F2010
    • Excluding investments in OnTouch® Merchandising and other new initiatives, net income was $0.3 million compared to $0.5 million in Q2 F2010
  • Cash and cash equivalents including restricted cash of $8.6 million compared to $11.5 million as at F2010 year end
Q2 F2011 Operational Highlights
Gross Transactions Processed ("GTV")
  • Processed Gross Transaction Value of $151 million, up 29% from $117 million in Q2 F2010 and up 5% from $144 million in Q1 F2011
OnTouch® Retail Technology Platform Enhancements
  • Deployed OnTouch® Analytics Sales Suite, the first module of the Company's Onboard Retail Analytics Platform for the airline industry, onboard four customer airlines
OnTouch® Merchandising Platform
  • Won 2011 Global AirRail "Innovation of the Year: Implementation" award for OnTouch® Ground Connections
  • Signed agreement with SuperShuttle to offer transportation service from 35 U.S. airports and three airports in France
  • Partnered with Pokeware to offer innovative in-flight advertising solution
  • Subsequent to quarter end, signed agreement with a Luxury tour expert to offer unique tours experiences onboard flights to Paris
  • Subsequent to quarter end, signed agreement to offer Eat and Play Cards, which provide travelers with significant savings on dining, entertainment and shopping, onboard flights to Orlando
Channel Partnerships
  • Subsequent to quarter end, entered partnership with Skytrac, a foodservice and distribution provider to rail and travel operators in the United Kingdom.

"We continue to focus on expanding our footprint in the airline industry and leveraging our customer base and business model to increase passenger spending and penetrate other travel sectors," said Mr. Tom Douramakos, President and CEO, GuestLogix. "Despite foreign exchange headwinds that negatively affected reported revenue and EBITDA by approximately $300,000 in comparison to Q2 last year, we remain well positioned for long-term growth. Our core retail technology platform continues to demonstrate its strength and profitability, and our deployment backlog represents annual GTV between $80 and $100 million. In addition, we have at least 13 merchandising programs that are on track to go live by the end of the fiscal year. These programs could represent $287 million in GTV annually assuming a 1% customer take-up rate."

Key Operating Metrics
Q2 F2011 Q2 F2010 H1 F2011 H1 F2010
GTV processed in the period $151M $117M $295M $231M
Total revenue as a percentage of GTV 4.0 % 5.5 % 4.2 % 5.4 %
Financial Summary
Q2 F2011 Q2 F2010 H1 F2011 H1 F2010
Revenue $6.1M $6.4M $12.5M $12.5M
Operating Expenses (3)
OnTouch® Retail Technology Platform $5.8M $5.7M $11.5M $10.8M
OnTouch® Merchandising Platform & Other New Initiatives $0.1M $0.4M $0.4M $0.8M
EBITDA $1.4M $1.7M $3.1 M $3.5M
Net Income (Loss) $0.2M $0.05M $0.1M $0.3M
Net Income Per Share $0.00 $0.00 $0.00 $0.00

Q2 F2011 Conference Call

GuestLogix will host a conference call Thursday, July 14, 2011 at 4:30 p.m. Eastern Time to discuss its Q2 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- and six-month periods ended May 31, 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 July 14, 2011 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 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 July 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.

Contact Information