GuestLogix, Inc., 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-month period ended February 29, 2012. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars. This is the Company's first quarter reporting in U.S dollars and under IFRS.
"This year is about securing contract renewals, expanding our customer footprint in emerging markets, such as Asia and the Middle East, and leveraging our existing customer base to extend access to our platform and introduce additional technology services and products," said Mr. Tom Douramakos, President and CEO, GuestLogix. "Our focused approach to driving growth is delivering results.
We made progress on all of our strategic initiatives in Q1, which should translate into further top line improvements in the coming quarters. Looking ahead, we are confident we have the right strategy, channel partnerships, infrastructure and team in place to successfully capitalize on the significant opportunities in front of us in the global airline market and deliver growth in fiscal 2012."
Q1 F2012 Financial Summary
• Revenue of $5.6 million, up from $5.5 million in Q1 F2011
• EBITDA(1) of $0.09 million, compared to $1.0 million in Q1 F2011
• Net income of $0.06 million compared to net income of $0.8 million in Q1 F2011
• Cash and cash equivalents including restricted cash of $5.1 million compared to $6.9 million as at November 30, 2011
Q1 F2012 Operational Highlights
• Gross Transactions Processed ("GTV")
- GTV: $143 million compared to $144 million in Q1 F2011
• Expand Footprint
- The Americas: announced contract renewal with Southwest Airlines, including expansion to AirTran Airways
- EMEA: announced deployment onboard Aer Lingus and subsequent to quarter end, signed contract renewal with KLM Royal Dutch Airlines
- Asia-Pacific: subsequent to quarter end opened Asia-Pacific headquarters in Hong Kong and launched Chinese, Korean and Japanese language versions of the Company's onboard retail technology software platform to better meet the needs of Asia-based airlines
• Leverage Footprint
- New Technology Offerings: launched Global Payment Services offering
• Enter New Markets
- Rail: subsequent to quarter end, signed agreement with U.K. rail operator, First TransPennine Express
• Technology Roadmap
- Subsequent to quarter end, released next-generation onboard point-of-sale device, XPDA-SP
- Subsequent to quarter end, unveiled second-generation onboard retail software platform, OBR Plus
Key Operating Metrics
Q1 F2012 – Q4 F2011 – Q1 F2011
GTV processed in the period: $143M – $146M – $144M
Total revenue as a percentage of GTV: 3.9% – 3.8% – 3.8%
GuestLogix' Q1 F2012 results are the Company's first set of consolidated financial statements prepared in U.S. dollars and under IFRS. For more detailed information regarding the Company's transition to IFRS, including a reconciliation of the Company's Q1 fiscal 2011 results and fiscal 2011 annual results as originally reported in Canadian Generally Accepted Accounting Principles ("CGAAP") to IFRS, please refer to the Company's financial statements and MD&A filings on SEDAR at sedar.com. Note, the Company has not provided CGAAP to IFRS reconciliations for its quarterly or annual results prior to fiscal 2011. Therefore, historical numbers reported under CGAAP should not be directly compared to the Company's fiscal 2011 or fiscal 2012 quarterly or annual results as reported under IFRS.
Q1 F2012 – Q4 F2011 – Q1 F2011
Revenue: $5.6M – $5.5M – $5.5M
Operating Expenses (2): $5.6M – $6.2M – $4.6M
EBITDA: $0.09M – $(0.5)M – $1.0M
Net Income (Loss): $0.06M – $(0.1)M – $0.8M
Net Income (Loss) Per Share: $0.00 – $(0.00) – $0.01
Transition to IFRS
Effective December 1, 2010, the Company changed its functional and presentation currency from the Canadian dollar to the U.S. dollar as a result of the adoption of IFRS and the significant role of the U.S. dollar in the business operations of the Company. In addition, as required under IFRS, the Company must now recognize revenue attributed to the hardware components contained in a multiple-element agreement as if it were an upfront sale at the inception of the arrangement. The effect of applying this change at December 1, 2010 was the elimination of deferred cost of equipment sales and capital assets deployed accounts, as well as a significant reduction in deferred revenue to reflect the upfront sale, while the Company restated net finance receivable to reflect the fair value of the delivered elements of the arrangement. Accordingly, revenue under IFRS, including what the Company has reported for Q1 2012 and Q1 2011, is reduced by an amount equal to the fair value of the hardware components of the arrangement recognized in past periods. While the changes to the Company's accounting policies under IFRS are significant, the underlying business model and cash inflows remain the same as they were under CGAAP.
Change in Fiscal Year End
GuestLogix also announced today that the Board of Directors has approved a change in the Company's fiscal year end from November 30 to December 31, effective fiscal 2012. As a result, GuestLogix will have a 13-month 2012 fiscal year, as the fiscal year commenced December 1, 2011 and will end to December 31, 2012.
Q1 F2012 Conference Call Details
GuestLogix will host a conference call on Monday, May 14, 2012 at 8:00 am. Eastern Time to discuss its fiscal 2012 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 647-427-7450, or 1-888-231-8191. A replay of the call will be available at guestlogix.com/.
A complete set of financial statements and Management's Discussion and Analysis for the three-month period ended February 29, 2012 will be available at sedar.com and guestlogix.com/.
(1) Defined as Earnings Before, Interest, Taxes, Depreciation and Amortization
(2) Includes depreciation and stock based compensation, but excludes interest and F/X gains or losses
GuestLogix, Inc. (GXI: TSX), the leading global provider of onboard store technology and merchandising solutions, helps airlines and other travel operators create, manage, and control onboard retail environments tailored to their needs and their passengers. GuestLogix (guestlogix.com) brings a decade of expertise as a trusted onboard transaction processing partner to airlines around the world. The Company's global headquarters and centre for product innovation is located in Toronto, Canada with regional head offices located in Dallas, Texas (serving Americas) London, UK (serving EMEA), and Hong Kong (serving Asia Pacific). A sales and support office is located in Singapore. Logistics centres are situated in Toronto, Dallas, London and Seoul with a software development centre located in India.
Investors: Kristen Dickson, TMX½Equicom
P: 416-815-0700 x273 - E: kdickson[.]equicomgroup.com.
© 2012 GuestLogix. All Rights Reserved. ®OnTouch is a trademark of GuestLogix Inc. and is registered in the United States and may be pending or registered in other countries. All other trademarks and trade names are the property of their respective owners.
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 May 14, 2012 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.