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
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
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...