TORONTO, ONTARIO–(Marketwire – Oct. 14, 2010) – GuestLogix Inc. (TSX:GXI) (“GuestLogix” or the “Company”), the leading global provider of onboard store technology to airlines and the passenger travel industry, today announced record financial and operational results for the three- and nine-month periods ended August 31, 2010. All amounts are reported in Canadian dollars unless otherwise stated.
Financial Highlights
- Revenue of $6.8 million, up 42% from $4.8 million in Q3 F2009 and 6% from $6.4 million in Q2 F2010
- Revenue in constant currency was $7.2 million for Q3 F2010 (1)
- EBITDA (2) of $1.5 million, compared to $1.3 million in Q3 F2009 and $1.7 million in Q2 F2010
- Net income of $0.1 million, compared to $0.2 million in Q3 F2009 and $0.05 million in Q2 F2010
- Cash and cash equivalents including restricted cash of $11.4 million, compared to $12.1 million as at F2009 year end
OnTouch™ Retail Platform Highlights
- Won contracts with two Asian airlines (one subsequent to quarter end) and one U.S. regional carrier
- Commenced new five-year contract with an existing EMEA-based airline customer
- Extended existing contract with major U.S. air carrier to the end of 2012
- Completed deployment onboard Frontier and Midwest Airlines as well as Qantas Airlines
- Enabled Continental Airlines and its regional partner, ExpressJet Airlines, to launch a “Food for Sale” initiative, expanding the airlines’ in-flight retailing beyond beverages to include meals on all domestic flights
OnTouch™ Merchandising Highlights
- Completed OnTouch™ Ads program rollout onboard all Spirit Airline flights to New York City
- Signed agreements to complete two OnTouch™ Ground Connection and two OnTouch™ Box Office merchandising program rollouts, all of which are expected to be completed by the end of Q2 F2011
- Have 16 OnTouch™ merchandising program trial commitments in place
- Subsequent to quarter end, signed agreement with Air Transat to rollout all six OnTouch™ merchandising categories onboard, at the gate and via the airline’s website, with the first category deployment expected to be completed by Q1 F2011
“We delivered strong Q3 results, and with our solid performance through the first nine months of the year, we have surpassed our fiscal 2009 full-year revenue and EBITDA levels, generated record cash from operations and delivered net income on a per share basis for the first time in the Company’s history,” said Mr. Tom Douramakos, President and CEO, GuestLogix. “This was also a milestone quarter for our OnTouch™ merchandising platform business, as we completed our first ever program rollout. We signed contracts in the quarter to go live with four more programs, and our agreement with Air Transat subsequent to quarter end is for all six OnTouch™ categories across three different travel touch points.”
Mr. Douramakos continued: “We believe our OnTouch™ merchandising platform business, both on and off board, represents a significant growth opportunity for us, and adoption among our airline customers is clearly gaining momentum. As we head toward fiscal 2011, we remain focused on launching more programs while also converting our existing trials into full rollouts, thus positioning us to enter next fiscal year with a growing OnTouch™ merchandising monthly revenue run rate.”
F2010 Third Quarter Conference Call
GuestLogix will host a conference call Thursday October 14, 2010 at 4:30 p.m. Eastern Time to discuss its fiscal 2010 third quarter financial and operational results, as well as its outlook for the remainder of the fiscal year. To access the conference call, dial 647-427-7450, or 1-888-231-8191. A taped replay will be available at www.guestlogix.com on the Events and Presentations page of the Company’s website.
A complete set of financial statements and Management’s Discussion and Analysis for the three- and-nine-month period ended August 31, 2010 will be available at www.sedar.com and www.guestlogix.com
(1) Based on November 30, 2009 closing exchange rates. See GuestLogix’ MD&A and Financial Statement filed on October 14, 2010 for a detailed explanation.
(2) See GuestLogix’ MD&A and Financial Statement filed on October 14, 2010 for complete definition.
About GuestLogix
GuestLogix is the leading global provider of onboard store technology and merchandising, which helps airlines and other operators create, manage, and control onboard retail environments tailored to their needs and their passengers. Serving 38% of the global airline passenger traffic, GuestLogix has become a trusted partner to airlines around the world. The Company is headquartered in Toronto, Canada and maintains sales and support facilities in the US, UK, Singapore, and Korea. GuestLogix is publicly traded in Toronto (TSX:GXI). More information is available at www.guestlogix.com.
© 2010 GuestLogix. All Rights Reserved. All other trademarks and trade names are the property of their respective owners.
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 October 14, 2010 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.