GuestLogix Announces Fiscal 2011 Second Quarter Results

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Company Achieves 10th Consecutive Quarter Of Positive EBITDA

ORONTO, ONTARIO, Jul 14, 2011 (MARKETWIRE via COMTEX) — GuestLogix Inc. CA:GXI +3.18% (“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(R) 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(R) 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(R) Retail Technology Platform Enhancements

— Deployed OnTouch(R) Analytics Sales Suite, the first module of the
Company’s Onboard Retail Analytics Platform for the airline industry,
onboard four customer airlines

OnTouch(R) Merchandising Platform

— Won 2011 Global AirRail “Innovation of the Year: Implementation” award
for OnTouch(R) 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(R) Retail Technology
Platform $5.8M $5.7M $11.5M $10.8M
—————————————————————————-
OnTouch(R) 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
—————————————————————————-

(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

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