GuestLogix Inc.
TSX : GXI

GuestLogix Inc.

August 12, 2015 16:00 ET

GuestLogix Announces Q2 Fiscal 2015 Results

TORONTO, ONTARIO--(Marketwired - Aug. 12, 2015) - GuestLogix Inc. (TSX:GXI), the leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry, today announced its financial and operational results for the three-month period ended June 30, 2015. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

"At the end of another solid quarter, we are happy to see a continued uptick in our top line," said Brett Proud, President & CEO of GuestLogix. "With four large deployments within the quarter, we have further proven our market leadership -- in particular as we saw these deployments cover multiple touch points and within multiple travel verticals."

Q2 F2015 Financial Summary

  • Revenue of $15.4 million, compared to $9.0 million in Q2 F2014.
  • Operating Expenses of $8.1 million, compared to $5.5 million in Q2 F2014.
  • Adjusted EBITDA(1) of $1.4 million, compared to $369 thousand in Q2 F2014.
  • Net loss of $3.1 million, compared to a net loss of $1.7 million in Q2 F2014.
  • Cash of $5.5 million as at June 30, 2015, and with $2.0 million available in lines of credit for total cash resources of $7.5 million.

Proud continued, "In accordance with our plan, we saw a reduction in deferred development by more than $0.5 million from the previous quarter and we are confident that GuestLogix is firmly on the path of renewed shareholder value and sustainable growth as a new and formidable entity."

Q2 F2015 Operational Highlights

Increasing the Number of Transactions that we process

  • Successfully deployed next-generation onboard retail technology platform onboard Finnair via consumer-grade tablets and payment peripherals
  • Signed agreement with Dufry Sharjah for deployment of our onboard retail technology platform on Air Arabia
  • Deployed first-phase of Cathay Pacific Group's Travel Retail Platform to support airline's e-Commerce operations
  • Deployed full travel retailing technology for e-Commerce support with Hainan Airlines via Travelsky Partnership
  • Subsequent to quarter end, deployed full travel retailing technology for e-Commerce support with Asia Miles

Increasing the Average Transaction Value

  • Cathay Pacific Group deployment includes high-value ancillaries such as hotels and dynamic packages as well as mobile flight Internet booking engine
  • Hainan Airlines deployment includes a new flight Internet booking engine, hotels and dynamic packages
  • Asia Miles deployment includes loyalty redemption on high value ancillaries such as hotels and cars

Earning More Fees per Transaction

  • Agreement with Cathay Pacific, Hainan Airlines and Asia Miles all include additional solution offerings which increase the fees associated with each transaction

Strengthening our Operations & Finance

  • Announced appointment of IFE veteran, Louis Belanger-Martin as a new board member and subsequent to the Company's Annual General Meeting, Chairman of the Board
  • Successfully closed CAD$9 million subordinated credit agreement

Financial Summary

Q2 F2015 Q1 F2015 Q2 F2014
Revenue $15.4M $15.3M $9.0M
Gross Margin 46% 46% 50%
Adjusted EBITDA(1) $1.4M $1.9M $0.4M
Net Profit (Loss) $(3.1)M $0.2M $(1.7)M
Net Loss Per Share $(0.02) $0.00 $(0.02)
(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, restructuring charges, foreign exchange, stock-based compensation and change in fair value of derivative warrant liability and derivative liability.

Q2 F2015 Conference Call Details

GuestLogix will host a conference call on Wednesday, August 12, 2015 at 4:30 p.m. Eastern Time to discuss its fiscal 2015 second quarter financial and operational results as well as the Company's outlook for the remainder of the fiscal year. To access the conference call, please dial 862-255-5346, or 1-888-567-1602. A replay of the call will be available at http://www.guestlogix.com/investors/investor-events/.

A complete set of financial statements and Management's Discussion and Analysis for the three-and six month periods ended June 30, 2015 will be available at www.sedar.com and www.guestlogix.com/investors.

About GuestLogix

GuestLogix Inc. (TSX:GXI), is a global leader in comprehensive merchandising, payment and business intelligence technology 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. On December 23, 2014, GuestLogix announced the acquisition of OpenJaw Technologies, a Dublin-based technology company focused on travel retailing innovation in the e-commerce segment. GuestLogix' global headquarters is located in Toronto, with regional offices located in Dallas, London, Dublin, Galway, Madrid and Hong Kong, and product innovation labs located in Moncton and Kraków. More information is available at www.guestlogix.com and www.openjawtech.com.

© 2015 GuestLogix. All Rights Reserved.

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 August 12, 2015 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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