Welcome!

News Feed Item

GuestLogix Achieves Fourth Sequential Quarter of Record Revenue and Announces Fiscal Year 2013 Results

Company achieves record revenue with 28% YOY growth and carries strong cash balance into 2014 as it prepares to capture lucrative self-service retail opportunities both onboard and off board

TORONTO, ONTARIO -- (Marketwired) -- 03/24/14 -- 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 quarter and 12-month period ended December 31, 2013. Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

Financial Highlights

----------------------------------------------------------------------------
               3 months ended 4 months ended 12 months ended 13 months ended
                 December 31,   December 31,    December 31,    December 31,
(U.S. Dollars)           2013           2012            2013            2012
----------------------------------------------------------------------------
REVENUE                $ 8.3M         $ 8.2M         $ 30.5M         $ 25.8M
----------------------------------------------------------------------------
OPERATING                                                                   
 EXPENSES(1)           $ 9.8M         $16.2M         $ 33.4M         $ 36.7M
----------------------------------------------------------------------------
EBITDA(2)            $ (0.6)M       $ (7.4)M          $ 0.7M        $ (9.5)M
----------------------------------------------------------------------------
Net Income                                                                  
 (Loss)              $ (2.0)M      $ (10.2)M        $ (3.8)M       $ (12.6)M
----------------------------------------------------------------------------
Net Income                                                                  
 (Loss) Per                                                                 
 Share               $ (0.03)       $ (0.15)        $ (0.05)        $ (0.19)
----------------------------------------------------------------------------

A complete set of financial statements and Management's Discussion and Analysis for the three and twelve month periods ended December 31, 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, foreign exchange, and change in fair value of derivative warrant liability.

"In 2013, we achieved great success in establishing two of the most exciting partnerships in the Company's history with Thales and NCR. We remain committed to putting GuestLogix back on a solid growth path and drive a new level of shareholder value," said Brett Proud, President & Chief Executive Officer of GuestLogix. "We have successfully achieved another record revenue quarter and enter 2014 with significant growth opportunities in the near-term as we broaden our transaction processing support both within the aircraft cabin as well as off board, and transition from a pure hardware-based transaction processor to a software-based transaction processor."

The Company achieved a 28% revenue growth year-over-year based on an adjustment to its 2012 results as 2012 was a 13-month fiscal year. In 2012, GuestLogix achieved less than 1% of its revenue from software-based transaction processing. In 2013, more than 5% of the Company's revenue was generated from software-based transaction processing. This is in line with the Company's strategy to drive significantly higher-margin revenues.

GuestLogix incurred a number of expenses in the fourth quarter of 2013 that are one-time by their nature, and as a result the financial performance in the quarter was negatively impacted. These costs total approximately $1 million and would have had a significantly positive impact on EBITDA in the quarter.

FY2013 Operational Highlights

--  Gross Transaction Value Processed ("GTV") 
    --  Processed GTV of $917 million 

--  Increase (and Protect) Number of Transactions 
    --  Signed major 10-year agreement with in-flight entertainment leader,
        Thales Avionics to integrate Company's Transaction Processing
        Engine® in support of self-service onboard retail programs via
        seatback screens 
        
    --  Signed multi-year agreement with European airline, Germania to
        provide onboard retail technology platform 
        
    --  Signed 4-year agreement with leading Asia Pacific airline, Cathay
        Pacific to support in-flight duty-free program as well as pre-orders
        and post-flight delivery through channel partner, Inflight Sales
        Group
        
    --  Signed first customer in mainland China, Spring Airlines, in multi-
        year agreement to support the Buy on Board and Duty Free programs of
        the carrier
        
    --  Signed Asia's largest airline, China Southern with multi-year
        agreement for an in-flight seat upgrade program
        
    --  Signed multi-year agreement with Canadian flag-carrier, Air Canada
        to monetize in-flight entertainment systems beginning with new
        leisure carrier, Air Canada rouge
        
    --  Signed multi-year agreement with Canada's leisure rail carrier,
        Rocky Mountaineer to supply both onboard retail technology as well
        as warehouse management system
        
    --  Signed major 10-year agreement with leading retail technology firm,
        NCR, to support its travel division by integrating GuestLogix'
        Transaction Processing Engine® into several self-service retail
        solutions including kiosks and consumer mobile applications
        
    --  Renewed Middle Eastern carrier, flydubai in multi-year agreement for
        continued use of onboard retail technology platform
        
    --  Signed multi-year partnership with Toronto-based airline, Porter, to
        utilize as the Company's showcase / demonstration center for next-
        generation technologies

--  Increase Average Transaction Value 
    --  China Southern agreement incorporates GuestLogix' seat upgrade
        technology which significantly increases the average transaction
        value for that customer
        
    --  NCR partnership is expected to increase product mix potential
        including baggage fees, lounge access, seat upgrades and
        destination-based content 

--  Earn More Fees Per Transaction 
    --  Agreement with China Southern includes funds reconciliation and
        Ancillary Insights(TM) platform
        
    --  Momentum Services and Eurostar sign agreement to use GuestLogix for
        Merchant of Record Services
        
    --  Agreement with Cathay Pacific includes Ancillary Insights(TM)
        platform
        
    --  Agreement with Rocky Mountaineer includes funds reconciliation and
        Ancillary Insights(TM) platform
        
    --  NCR partnership includes optional upgrades to airlines for Ancillary
        Insights(TM) platform 

--  Strengthening our Operations & Finances 
    --  Successfully completed integration of major acquisition, Initium
        Onboard
        
    --  Closed private placement in September raising gross proceeds of
        CAD$4.0 million
        
    --  Arranged CAD$2.3 million lease facility
        
    --  Closed an equity offering in December 2013 raising gross proceeds of
        CAD$11.5 million
        
    --  Arranged a USD$4 million line of credit with a Canadian chartered
        bank 

FY2013 Conference Call

GuestLogix will host a live conference call on Monday, March 24, 2014 at 4:30 pm ET to discuss its fiscal 2013 financial and operational results as well as the Company's outlook for fiscal 2014. To access the conference call, please dial 862-255-5346 or 1-888-567-1602. A taped replay of the call will be available at http://www.guestlogix.com/investors/investor-events/.

About GuestLogix

GuestLogix Inc. (TSX:GXI), is a global leader in comprehensive retail solutions delivered to the passenger travel industry, both onboard and off board. Bringing over a decade of expertise as the industry's most trusted onboard transaction processing partner to airlines, rail operators and elsewhere in the passenger travel industry, GuestLogix powers the industry's growing reliance on ancillary revenue generation. Both direct to operators as well as through partnerships with global leaders in catering, duty-free, inflight entertainment and self-service retail experts, the Company provides the payment services touching over 1 billion travelling consumers each year. 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, 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 March 24, 2014 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.

©2014 GuestLogix. All Rights Reserved.

Contacts:
Media & Investor Relations
Dan Thompson
SVP, Marketing, Communications & Investor Relations
GuestLogix
416-849-1566
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to clos...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...