The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

GuestLogix Announces Fiscal 2011 Third Quarter Results

Company Achieves 11th Consecutive Quarter of Positive EBITDA

Friday, October 14, 2011

GuestLogix Announces Fiscal 2011 Third Quarter Results07:00 EDT Friday, October 14, 2011TORONTO, ONTARIO--(Marketwire - Oct. 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 nine-month periods ended August 31, 2011. All amounts are reported in Canadian dollars unless otherwise stated. Q3 F2011 Financial Highlights Total revenue of $6.2 million, compared to $6.8 million in Q3 F2010 Assuming consistent exchange rates as at November 30, 2010 closing, revenue would have been $6.5 million(1) for Q3 F2011 EBITDA(2) of $1.3 million compared to $1.5 million in Q3 F2010 Excluding investments in OnTouch® Merchandising and other new initiatives, EBITDA was $1.5 million compared to $1.9 million in Q3 F2010 Net income of $0.1 million compared to net income of $0.1 million in Q3 F2010 Excluding investments in OnTouch® Merchandising and other new initiatives, net income was $0.3 million compared to $0.5 million in Q3 F2010 Cash and cash equivalents including restricted cash of $8.6 million compared to $11.5 million as at F2010 year end Q3 F2011 Operational HighlightsGross Transactions Processed ("GTV")•Processed GTV of $148 million compared to $130 million in Q3 F2010 and $151 million in Q2 F2011•Deployed platform onboard US regional carrier network and Garuda IndonesiaChannel Partnerships•Entered partnership with Skytrac, a foodservice and distribution provider to rail and travel operators in the United KingdomOnTouch® Merchandising Platform•Deployed OnTouch® Box Office onboard leading global airline•Signed agreement with luxury tour expert, Experience Paris and an agreement to offer Eat and Play Cards onboard flights to Orlando•Subsequent to quarter end, signed agreements to offer tickets for events and attractions available through VisitBritin and Merlin EntertainmentsCorporate Enhancements•Opened GuestLogix U.S.A. in Dallas, Texas and a European head office near London, England to accelerate growth by building the GuestLogix team in key target geographic regions"Our Q3 results demonstrate the strength and profitability of our core retail technology platform," said Mr. Tom Douramakos, President and CEO, GuestLogix. "We expect this to be a main growth driver for us going forward as we work to further expand our footprint in new geographic regions and other travel verticals." "We made progress on the merchandising front in the third quarter, launching OnTouch® Box Office onboard a large international carrier," Mr. Douramakos added. "The program needs to gain further momentum before it has a material impact on our results, but the initial passenger response is encouraging. We are seeing average transactions in the range of $145 and $170. We have a promising merchandising deployment pipeline, with another 12 programs to go live. We expect to launch some in Q4, with the larger proportion now planned for fiscal 2012. Our Mobile Concierge and Destination Deals technology platforms, as well as the potential to integrate our retailing and merchandising platforms with other technologies, such as in-flight entertainment systems, represent additional growth opportunities for fiscal 2012." Key Operating Metrics Q3 F2011Q3 F20109 months F20119 months F2010GTV processed in the period$148M$130M$443M$361MTotal revenue as a percentage of GTV4.2%5.2%4.2%5.3%Financial SummaryQ3 F2011Q3 F20109 months F20119 months F2010Revenue$6.2M$6.8M$18.7M$19.3MOperating Expenses (3)OnTouch® Retail Technology Platform$6.0M$6.2M$17.5M$17.0MOnTouch® Merchandising Platform & Other New Initiatives$0.2M$0.4M$0.6M$1.2MEBITDA$1.3M$1.5M$4.4M$5.0MNet Income (Loss)$0.1M$0.1M$0.2M$0.4MNet Income Per Share$0.00$0.00$0.00$0.01 Q3 F2011 Conference Call and Slide Presentation Details GuestLogix will host a conference call with an accompanying slide presentation on Friday, October 14, 2011 at 8:30 a.m. Eastern Time to discuss its Q3 fiscal 2011 financial and operational results as well as the Company's outlook for the remainder of the fiscal year and fiscal 2012. To access the conference call, please dial 647-427-7450, or 1-888-231-8191. To access the slide presentation, please go to www.anywhereconference.com and use the web login: 124405291, pin code: 8217909# and select: I will dial myself in. A taped replay of the call along with the accompanying slides will be available at http://www.guestlogix.com/events.html. A complete set of financial statements and Management's Discussion and Analysis for the three- and nine-month periods ended August 31, 2011 will be available at www.sedar.com and www.guestlogix.com.(1)Assuming consistent exchange rates as at November 30, 2010 closing exchange rates. See GuestLogix' MD&A filed on October 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 lossesAbout GuestLogixGuestLogix 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, USA, GuestLogix Europe, located in London, UK, serving Europe, Middle East and Africa and a sales and support office located in Singapore, serving Asia Pacific. Logistics centers are situated in Toronto, Dallas, London and Seoul with a software development centre located in India. GuestLogix is publicly traded on The Toronto Stock Exchange (GXI). © 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 StatementsThis 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 October 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.FOR FURTHER INFORMATION PLEASE CONTACT: Brian ReddyGuestLogix Inc.Chief Financial Officer416-987-7053breddy@guestlogix.comORKristen DicksonTMX/Equicom416-815-0700 ext. 273kdickson@equicomgroup.com