GuestLogix Inc.
TSX : GXI

GuestLogix Inc.

November 03, 2014 16:00 ET

GuestLogix Continues to Achieve Q over Q Record Revenue Performance in Third Quarter

Incremental Revenue Growth Corresponds to Company's Growth in EBITDA - Signaling Shift in Profitability Profile

TORONTO, ONTARIO--(Marketwired - Nov. 3, 2014) - 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 September 30, 2014. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

"GuestLogix recorded another record revenue quarter making this our 7th consecutive quarter of record revenue performance and we continue to sustain a Gross Transaction Value run-rate above $1 billion per annum," said Brett Proud, President & CEO, GuestLogix. "We are extremely enthusiastic that our growth in revenue is in line with our growth in EBITDA, which provides us with added confidence that we are now beginning to leverage our operating base. In particular, with recurring revenue growing at the same pace, we are confident that GuestLogix has now reached a level of optimal operational performance and will continue sustainable growth in profitability."

Q3 F2014 Financial Summary

  • Revenue of $9.4 million, compared to $8.0 million in Q3 F2013.
  • Operating Expenses of $5.5 million, compared to $4.3 million in Q3 F2013.
  • Adjusted EBITDA(1) of $758 thousand, compared to $335 thousand in Q3 F2013.
  • Net loss of $339 thousand, compared to a net loss of $1.0 million in Q3 F2013.
  • Cash of $5.4 million as at September 30, 2014.

Proud continued, "As we continue our shift to become more of a software-based transaction processor, we are demonstrating that any acceleration in revenue growth is translating to EBITDA. Having seen two major US carriers deploy our payment technology with our Inflight Entertainment partners in the quarter, we are confident within the coming quarters we will begin to see this repeat itself at a faster pace."

Q3 F2014 Operational Highlights

Increasing the Number of Transactions that we process

  • Signed a multi-year renewal agreement with the world's largest low-cost carrier Southwest Airlines
  • Signed a four-year renewal agreement with Qantas Airways for continued use of the Company's onboard retail technology platform
  • Signed multi-year renewal agreement with Alaska Airlines with upgrades to utilize the Company's smartphone point-of-sale technology
  • Signed five-year agreement with Pan-American carriers InselAir and InselAir Aruba for use of the Company's retail technology platform both onboard and off board
  • Signed multi-year renewal agreement with Frontier Airlines for use of the Company's onboard retail technology platform
  • Signed three-year agreement with Tigerair Taiwan, in partnership with St. Doras Enterprises for use of the Company's onboard retail technology platform

Increasing the Average Transaction Value

  • Deployed OnTouch® Destination Merchandising solution onboard Southwest Airlines

Earning More Fees per Transaction

  • Our renewal agreement with Southwest Airlines includes the Ancillary Insights™ platform
  • GuestLogix' Travel RPM® business unit announces consulting agreement with St. Doras Enterprises in Taiwan to support Tigerair Taiwan
  • Our renewal agreement with Qantas Airways includes the Ancillary Insights platform
  • Our renewal agreement with Alaska Airlines includes both Global Payment Gateway™ and Ancillary Insights
  • Our agreement with InselAir and InselAir Aruba includes Global Payment Gateway
  • Our agreement with Frontier Airlines includes Global Payment Gateway
  • Our agreement with Tigerair Taiwan includes Global Payment Gateway and Ancillary Insights

Financial Summary

Q3 F2014 Q2 F2014 Q3 F2013
Revenue $ 9.4M $ 9.0M $ 8.0M
Gross Margin $ 4.5M $ 4.5M $ 3.9M
Adjusted EBITDA $ 0.8M $ 0.4M $ 0.3M
Net Loss $ (0.3M ) $ (1.7M ) $ (1.0M )
Net Loss Per Share $ (0.00 ) $ (0.02 ) $ (0.01 )

Q3 F2014 Conference Call Details

GuestLogix will host a conference call on Monday, November 3, 2014 at 4:30 p.m. Eastern Time to discuss its fiscal 2014 third 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 862-255-5351, or 1-888-390-3967. A replay of the call will be available at www.guestlogix.com/events.html.

A complete set of financial statements and Management's Discussion and Analysis for the three-month period ended September 30, 2014 will be available at www.sedar.com and www.guestlogix.com.

(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, foreign exchange, stock-based compensation and change in fair value of derivative warrant liability.

About GuestLogix

GuestLogix Inc. (TSX:GXI) is a leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and 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 is located in Toronto, with regional head offices located in Dallas, London and Hong Kong, and a Product Innovation Lab located in Moncton. More information is available at www.guestlogix.com.

© 2014 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 November 03, 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.

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