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GuestLogix Reports Q2 and Continues Quarter Over Quarter Record Revenue Growth

August 14, 2014 Financial No Comments Email Email

GuestLogix Inc., 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 June 30, 2014.

All financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) and reported in U.S. dollars.

“GuestLogix achieved its highest revenue results in the Company’s history and for the first time has exceeded the $1 billion gross transaction value run-rate, illustrating that we continue to execute on our growth strategies in each of our regions and work towards GuestLogix’ true breakthrough quarter,” said Brett Proud, President & CEO, GuestLogix. “When excluding certain costs in the quarter, the Company delivered an adjusted EBITDA result of $0.5 million and continues to see improvement in our operating margin. As we remain in good position to transition to become more of a software-based transaction processor, we are confident that GuestLogix is already showing strong signs of profitability on the horizon.”

Q2 F2014 Financial Summary

  • Revenue of $9.0 million, compared to $7.2 million in Q2 F2013.
  • Operating Expenses of $5.5 million, compared to $3.8 million in Q2 F2013.
  • Adjusted EBITDA(1)of $369 thousand, compared to $690 thousand in Q2 F2013.
  • Net loss of $(1.7) million, compared to a net income of $0.8 million in Q2 F2013.
  • Cash of $7.5 million as at June 30, 2014.

Proud continued, “We are also seeing improvement in our recurring revenue line as deployments are coming online, proving the growth we are seeing quarter over quarter is secure. In addition, our teams around the world continue to acquire lucrative new accounts that are adding sustainability to the Company as a whole.”

Q2 F2014 Operational Highlights

Increasing the Number of Transactions that we process

  • Deployed retail solution onboard Europe’s largest regional airline, Flybe for both food & beverage and duty-free sales
  • Signed multi-year agreement with industry’s largest independent airport lounge operator, Priority Travel Group
  • Signed multi-year agreement with Southeast Asian airline through partnership with Inflight Sales Group
  • Signed multi-year agreement with Japanese airline through partnership with Inflight Sales Group
  • Signed multi-year agreement with second Southeast airline within the quarter with Inflight Sales Group
  • Signed multi-year renewal agreement with UK’s Facilities Partner Ltd for continued use of its retail system onboard UK-based rail operator
  • Deployed retail solution onboard Primera Air through partnership with Servair
  • Subsequent to quarter end, signed multi-year renewal agreement with world’s largest low-cost carrier Southwest Airlines

Increasing the Average Transaction Value

  • Agreement with Priority Travel Group focuses on lounge guest passes which has a higher average transaction value than traditional food and beverage purchases onboard

Earning More Fees per Transaction

  • All three Asia Pacific agreements, in partnership with Inflight Sales Group includes Ancillary Insights platform
  • Renewal agreement with Southwest Airlines includes Ancillary Insights platform

Financial Summary

Q2 F2014 Q1 F2014 Q2 F2013
Revenue $ 9.0M $ 8.5M $ 7.2M
Gross Margin $ 4.5M $ 4.1M $ 3.5M
Adjusted EBITDA $ 0.4M $ 0.1M $ 0.7M
Net (Loss) Profit $ (1.7M ) $ (0.7M ) $ 0.8M
Net (Loss) Profit Per Share $ (0.02 ) $ (0.01 ) $ 0.1

Q2 F2014 Conference Call Details

GuestLogix will host a conference call on Monday, August 11, 2014 at 4:30 p.m. Eastern Time to discuss its fiscal 2014 second 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 dial862-255-5351, or 1-888-390-3967. A replay of the call will be available at http://www.guestlogix.com/events.html.

A complete set of financial statements and Management’s Discussion and Analysis for the three-month period ended June 30, 2014 will be available at www.sedar.com and www.guestlogix.com

(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, foreign exchange, stock-based compensation and change in fair value of derivative warrant liability.

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