Marketwire
36% Increase in Year-over-Year Revenue As Company Remains on Solid Growth Path
TORONTO, ONTARIO--(Marketwired - Nov. 11, 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 nine month periods ended September 30, 2013. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.
"GuestLogix continues to demonstrate that we have moved back into a strong growth position. Our third quarter saw several major achievements that will significantly add to our top and bottom lines in the quarters ahead. We saw growth in all three geographic regions as well as our Global Rail division, success within our in-flight entertainment partnership agreements as well as the establishment of a global partnership with NCR, one of the largest global retail technology companies," said Brett Proud, President & CEO of GuestLogix. "We achieved sequential year-over-year growth of 36% in our revenue performance and remain on track for strengthened EBITDA results moving forward."
Proud continued: "Our contract win with the largest airline in Asia - China Southern, Scandinavia's largest regional airline - Wideroe, Air Canada Rouge, and our first rail customer in North America with Rocky Mountaineer, demonstrates that our team remains committed to winning new business and retaining our leadership position across the global travel industry. Subsequent to quarter end, we announced our global partnership with retail technology giant NCR which will prove to be one of the most significant ventures the Company has ever embarked on. This global partnership will enable GuestLogix to leverage its transaction processing success to off-board travel touch points. Although we are proud of these results, we know this new and lucrative chapter for GuestLogix has only just begun."
| Q3 F2013 Financial Summary |
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Revenue of $8.0 million, compared to $5.9 million in Q3 F2012 |
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Operating expenses(1) of $8.5 million, compared to $8.2 million in Q3 F2012 |
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EBITDA(2) of $0.3 million, compared to $(2.0) million in Q3 F2012 |
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Net loss of $(1.0) million, compared to $(2.0) million in Q3 F2012 |
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| Q3 F2013 Operational Highlights |
| Increasing the Number of Transactions that we process |
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Signed multi-year agreement with Asia's largest airline, China Southern |
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Signed agreement with Momentum Services and Eurostar for complete Merchant of Record Services |
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Signed multi-year agreement with Air Canada Rouge to support in-flight entertainment monetization |
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Signed multi-year agreement with Scandinavia's largest regional airline, Wideroe |
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Signed multi-year agreement with North American leisure rail carrier, Rocky Mountaineer |
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Subsequent to quarter end, signed ten-year partnership with leading retail technology firm, NCR, to integrate transaction processing engine into airport kiosks and mobile check-in applications |
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Subsequent to quarter end, announced multi-year renewal with Middle Eastern low cost carrier, flydubai |
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| Increasing the Average Transaction Value |
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China Southern agreement incorporates GuestLogix' seat upgrade auction technology which significantly increases the average transaction value for that customer |
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NCR partnership will increase product mix potential including baggage fees, lounge access, seat upgrades and destination-based content |
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| Earning More Fees per Transaction |
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Agreement with China Southern includes funds reconciliation and OnTouch® Analytics platform |
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Momentum Services and Eurostar agreement adds Merchant of Record Services to current agreement |
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Agreement with Rocky Mountaineer includes funds reconciliation and OnTouch® Analytics platform |
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NCR partnership enables upselling to airlines for OnTouch® Analytics |
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| Corporate Achievements |
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Completed private placement of common shares for gross proceeds of CAD $4.0 million |
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| Key Operating Metrics |
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Q3 F2013 |
Q2 F2013 |
Q3 F2012 |
9 months F2013 |
9 months F2012 |
| Gross Transaction Value (GTV) processed in the period |
$241M |
$227M |
$146M |
$690M |
$441M |
| Total Revenue as a percentage of GTV |
3.3% |
3.2% |
4.0% |
3.2% |
4.0% |
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| Financial Summary |
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Q3 F2013 |
Q2 F2013 |
Q3 F2012 |
9 months F2013 |
9 months F2012 |
| Revenue |
$8.0M |
$7.2M |
$5.9M |
$22.2M |
$17.6M |
| Operating Expenses(1) |
$8.5M |
$7.5M |
$8.2M |
$23.6M |
$20.5M |
| EBITDA(2) |
$0.3M |
$0.7M |
$(2.0)M |
$1.3M |
$(2.1)M |
| Net Income (Loss) |
$(1.0)M |
$0.8M |
$(2.0)M |
$(1.8)M |
$(2.4)M |
| Net Income (Loss) Per Share |
$(0.01) |
$0.01 |
$(0.03) |
$(0.02) |
$(0.04) |
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| A complete set of financial statements and Management's Discussion and Analysis for the three and nine month periods ended September 30, 2013 will be available at www.sedar.com and www.guestlogix.com. |
| (1)Includes Depreciation, Amortization, and Stock-Based Compensation Expense, but excludes Interest and Foreign Exchange. |
| (2) Defined as Earnings before Interest, Taxes, Depreciation, Amortization, Stock-Based Compensation Expense and Foreign Exchange. |
Q3 F2013 Conference Call Details
GuestLogix will host a conference call on Monday November 11th, 2013 at 4:30 p.m. Eastern Time to discuss its 2013 third 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.
About GuestLogix
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.
Forward-Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations of GuestLogix' performance 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 as well as the matters discussed under "Risks and Uncertainties" in the GuestLogix management's discussion and analysis filed November 11, 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.