KaBOOOOOOM!!!
GuestLogix Inc. (TSX:GXI), the leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry, today announced its financial and operational results for the three-month period ended March 31, 2015. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars. "We have closed our first full quarter since the acquisition of OpenJaw Technologies and I am thrilled we are able to illustrate the strength of this new addition to the business immediately out of the gate. As our traditional onboard business continues to show great strength having signed three large-scale agreements in the quarter, the OpenJaw business unit has added an additional layer of confidence as we work to fuse these two companies together," said Brett Proud, President & CEO of GuestLogix. "We are extremely excited about the cross selling opportunities and operational synergies ahead of us, which will only work to accelerate the growth trajectory of the new GuestLogix." Q1 F2015 Financial Summary •Revenue of $15.3 million, compared to $8.5 million in Q1 F2014. •Operating Expenses of $7.4 million, compared to $4.7 million in Q1 F2014. •Adjusted EBITDA(1) of $1.9 million, compared to $146 thousand in Q1 F2014. •Net profit of $237 thousand, compared to a net loss of $704 thousand in Q1 F2014. •Cash of $7.0 million as at March 31, 2015, and with $2.4 million available in lines of credit for total cash resources of $9.4 million. "I am proud to report our first quarter of over $15 million in revenue that was achieved despite the foreign exchange headwinds felt within the past several months," Proud continued. "And with the addition of our new team in Dublin, we were able to announce a restructuring plan that has already been put into place and will result in an additional annualized savings of $2 million - further enhancing our financial position and bringing about additional improvement in shareholder value." Q1 F2015 Operational Highlights Increasing the Number of Transactions that we process •Signed 6+ year renewal and expansion agreement with Momentum Services for its customer Eurostar •Signed a multi-year renewal and expansion agreement with leading Canadian airline, WestJet •Signed major multi-year agreement with one of the industry's largest airlines for iOS-based onboard retail deployment Increasing the Average Transaction Value •Announced latest t-Retail Platform Release which includes support for high-value ancillary offers such as baggage fees, lounge access and airport concierge services •Announced partnership with Expedia Affiliate Network (EAN) for large hotel distribution agreement Earning More Fees per Transaction •Agreement with Momentum Services includes use of its Global Payment Gateway™ and Ancillary Insights™ business intelligence platform •Agreement with Canadian carrier, WestJet includes use of its Ancillary Insights™ business intelligence platform •Agreement with large undisclosed airline includes use of its Ancillary Insights™ business intelligence platform Strengthening our Operations & Finance •Announced appointment of John Gillberry as Lead Independent Director on GuestLogix' Board of Directors •Subsequent to quarter end, announced the appointment of Scott Craven Jones as new Independent Director on GuestLogix' Board of Directors •Subsequent to quarter end, announced an operational restructuring plan that will result in a reduction of approximately US$2 million in annual operating expenditures Financial Summary Q1 F2015 Q4 F2014 Q1 F2013 Revenue $ 15.3M $ 9.9M $ 8.5M Gross Margin 46 % 47 % 48 % Adjusted EBITDA(1) $ 1.9M $ 0.4M $ 0.2M Net Profit (Loss) $ 0.2M $ (3.9M ) $ (0.7M ) Net Loss Per Share $ 0.00 $ (0.4 ) $ (0.1 ) (1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, restructuring charges, foreign exchange, stock-based compensation and change in fair value of derivative warrant liability and derivative liability. Q1 F2015 Conference Call Details GuestLogix will host a conference call on Monday, May 4, 2015 at 4:30 p.m. Eastern Time to discuss its fiscal 2015 first 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 862-255-5346, or 1-888-567-1602. A replay of the call will be available at https://www.guestlogix.com/events.html. A complete set of financial statements and Management's Discussion and Analysis for the three-month period ended March 31, 2015 will be available at www.sedar.com and www.guestlogix.com/investors.