Press release from Marketwire
GuestLogix Delivers Sequential Quarters of Record Revenue
Second Quarter Results Show That Company Continues to Execute on Business Strategy and 2013 Plans
Monday, August 12, 2013
GuestLogix Delivers Sequential Quarters of Record Revenue16:00 EDT Monday, August 12, 2013
TORONTO, ONTARIO--(Marketwired - Aug. 12, 2013) - GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology to airlines and the passenger travel industry, today announced its financial and operational results for the three and six month periods ended June 30, 2013. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.
"Our second quarter saw the beginning of GuestLogix driving substantial inroads in the Asia Pacific region with the signings of Cathay Pacific and Dragonair. Subsequent to our second quarter, we announced two landmark signings with China Southern and mainland China's low cost carrier Spring Airlines, which has proven that there is a new focus in the region on advancing their onboard retail technology and GuestLogix is best positioned to be the provider of choice throughout Asia," said Brett Proud, President & CEO GuestLogix. "We achieved sequential growth of 19% in our revenue performance compared to the same quarter in the previous year, and EBITDA continues to improve as the Company gets closer to the inflection point of financial performance as a global transaction processor."
Proud also noted: "Year-to-date revenues are 22% ahead of where we were in 2012 and these results reflect our commitment to executing on our strategic objectives. Looking ahead, we are committed to continuing this positive trend which will result in sustained improvements to our bottom-line results."
Proud continued: "The opportunities that lie ahead of us as a Company are tremendous. For example, our OnTouch® Analytics platform is seeing significantly improved adoption, as we are deploying this offering with each of the newly signed airlines in the Asia Pacific region, resulting in significantly improved margins for each contract signing. As well, the growth within our global partnerships with inflight entertainment providers Panasonic and Thales provide approximately two-times the margin we have experienced in our traditional point-of-sale business model. These new agreements will bring about a sharp inflection point that will see our growth in revenues start to outpace any increases in our expense base and bring about improved shareholder value."
Q2 F2013 Financial Summary
- Revenue of $7.2 million, compared to $6.0 million in Q2 F2012
- Operating Expenses(1) of $7.1 million, compared to $6.6 million in Q2 F2012
- EBITDA(2) of $0.7 million, compared to $(0.4) million in Q2 F2012
- Net income of $1.1 million, compared to $(0.5) million in Q2 F2012
Q2 F2013 Operational Highlights
Increasing the Number of Transactions that we process
- Signed 4-year agreement with leading Asia Pacific airlines Cathay Pacific and regional subsidiary Dragonair
- Subsequent to quarter end, signed multi-year agreement with Chinese low cost carrier, Spring Airlines
- Subsequent to quarter end, signed multi-year agreement with China's largest airline, China Southern
Increasing the Average Transaction Value
- Announced China Southern will deploy GuestLogix' seat upgrade auction technology which will significantly increase the average transaction value for that customer
Earning More Fees per Transaction
- Announced 4-year agreement with Cathay Pacific includes use of our OnTouch® Analytics platform
- Agreement with Spring Airlines includes funds reconciliation and OnTouch® Analytics platform
- Agreement with China Southern includes funds reconciliation and OnTouch® Analytics platform
|Key Operating Metrics|
|Q2 F2013||Q1 F2013||Q2 F2012||H1 F2013||H1 F2012|
|Gross Transaction Value (GTV) processed in the period||$227M||$222M||$149M||$449M||$292M|
|Total Revenue as a percentage of GTV||3.2%||3.2%||4.0%||3.2%||4.0%|
|Q2 F2013||Q1 F2013||Q2 F2012||H1 F2013||H1 F2012|
|Operating Expenses (1)||$7.1M||$7.3M||$6.6M||$14.3M||$12.2M|
|Net Income (Loss)||$1.1M||$(1.2)M||$(0.5)M||$(0.0)M||$(0.5)M|
|Net Income (Loss) Per Share||$0.02||$(0.02)||$(0.01)||$(0.00)||$(0.01)|
|A complete set of financial statements and Management's Discussion and Analysis for the three and six month periods ended June 30, 2013 will be available at http://www.sedar.com/ and http://www.guestlogix.com/|
|(1)||Includes Depreciation, Amortization, and Share-Based Payment Expense, but excludes Interest and Foreign Exchange|
|(2)||Defined as Earnings before Interest, Taxes, Depreciation, Amortization, Share-Based Payment Expense and Foreign Exchange|
Q2 F2013 Conference Call Details
GuestLogix will host a conference call on Monday August 12th, 2013 at 4:30 p.m. Eastern Time to discuss its 2013 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 1-862-255-5346 or toll free at 1-888-567-1602. A replay of the call will be available at http://www.guestlogix.com/events.html.
GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology brings over a decade of expertise as a trusted onboard transaction processing partner to airlines, rail operators and the passenger travel industry. GuestLogix helps its customers to create, manage, and control onboard retail environments tailored to their needs and their passengers for a truly personalized experience. The Company is partnered with global leaders in catering, duty-free and in-flight entertainment, offering complete onboard retailing services to airlines and rail operators worldwide. GuestLogix' global headquarters and centre for product innovation is located in Toronto, with regional head offices located in Dallas, London and Hong Kong. More information is available at www.guestlogix.com.
© 2013 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.
This news release includes certain forward-looking statements that are based upon current expectations including the anticipated benefits to GuestLogix of the acquisition of Initium Onboard, 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 that GuestLogix may not realize all of the anticipated benefits from the acquisition of Initium Onboard as well as the matters discussed under "Risks and Uncertainties" in the GuestLogix management's discussion and analysis filed August 12, 2013 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, other than as required by applicable laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
VP Marketing, Communications & Investor Relations