TORONTO, ONTARIO–(Marketwire – July 15, 2010) – GuestLogix Inc. (TSX:GXI) (“GuestLogix” or the “Company”), the leading global provider of onboard store technology to the passenger travel industry, today announced its operational and financial results for the three- and six-month periods ended May 31, 2010. All amounts are reported in Canadian dollars unless otherwise stated.
Q2 Fiscal 2010 Financial Highlights
- Revenue of $6.4 million, up 39% from $4.6 million in Q2 F2009 and 7% from $6.0 million in Q1 F2010
- Revenue in constant currency was $6.8 million for Q2 F2010(1)
- EBITDA(2) of $1.7 million, compared to $1.0 million in Q2 F2009 and $1.8 million in Q1 F2010
- Net income of $0.05 million, compared to $0.03 million in Q2 F2009 and $0.3 million in Q1 F2010
- Cash and cash equivalents including restricted cash of $12.7 million, compared to $12.1 million as at F2009 year end
Q2 Fiscal 2010 Operational Highlights
- Won contracts with five airlines: three Asia-Pacific-based airlines (one subsequent to quarter end), Aer Lingus and another EMEA airline
- Extended agreement with existing EMEA-based airline customer and entered into a new five-year contract commencing in Q3 F2010
- Completed deployment onboard three airlines: Continental Airline’s regional partner, ExpressJet Airlines, an Asia-Pacific-based air carrier and an EMEA airline
- Completed deployment onboard trains operated by London Midland and CrossCountry
- Entered channel partnership with Australia-based in-flight caterer, Alpha Flight Services
- Signed channel partnership agreement with Hong Kong-based airline retail concessionaire, Inflight Sales Group (ISG)
- Entered channel partnership with a EMEA-based airline retailer and logistics service provider
- Signed channel partnership with Asia-Pacific-based airport and airline duty free service provider
- Received PCI PED version 2.0 certification for Company’s third generation PowerSeller™ point-of-sale handheld
- Launched OnTouch™ Ads onboard Spirit Airlines and commenced pilot onboard a second U.S. airline
- Extended OnTouch™ Ground Connections pilot with major U.S. airline to include the sale of Heathrow Express tickets in the airline’s member lounge at a large U.S. airport
- Introduced OnTouch™ Concierge Everywhere offering
“We have delivered strong growth in the first half of fiscal 2010, as we further expanded our passenger trip footprint and increased our deployed customer base in the second quarter,” said Mr. Tom Douramakos, President and CEO, GuestLogix. “We continue to successfully execute on our strategy of building channel partnerships to accelerate our footprint expansion. Combined, the four partnerships we signed in the quarter represent a potential market opportunity of 406 million airline passenger trips annually, 59.2 million of which we have already secured under agreement. With our growing traction in the Asia-Pacific region, we believe we remain on track to achieve our target of 20-25 percent airline market share, or between 140 and 175 million annual passenger trips under agreement, by year end.”
Mr. Douramakos continued: “We believe our OnTouch™ merchandising platform offers significant long-term growth potential for us as well as the airline industry, and we are starting to see greater adoption among our airline customers. We are at various stages with 15 merchandising pilot programs, spanning four of our six OnTouch™ categories. This is up from four pilot programs last quarter. As such, while we remain focused on carefully managing our costs, we are further investing in our merchandising initiatives in terms of people, offerings and technology. Our goal for fiscal 2010 is to launch additional pilots while also converting existing ones into full rollouts, thus positioning us to enter fiscal 2011 with a growing OnTouch™ merchandising monthly revenue run rate.”
Passenger Trip Footprint Metrics
Financial Summary
F2010 Second Quarter Conference Call
GuestLogix will host a conference call Thursday July 15, 2010 at 8:30 a.m. Eastern Time to discuss its fiscal 2010 second 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 approximately three hours after the live call.
A complete set of financial statements and Management’s Discussion and Analysis for the quarter ended May 31, 2010 will be available at www.sedar.com and www.guestlogix.com.
About GuestLogix
GuestLogix is the leading global provider of onboard store technology, which helps airlines build and manage onboard retail operations tailored to their needs and their passengers. Serving 35% 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 July 15, 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.