- Major airline wins help company achieve record year of growth
TORONTO, Feb. 25 /CNW/ - GuestLogix Inc. (TSX-V:GXI) today announced its
Fiscal 2007 financial results for the year ended November 30, 2007.
Highlights for Fiscal 2007
- Signed contracts with 7 airline customers, including Delta Air Lines,
Zoom Airlines, and Alaska Airlines
- Announced LSG Sky Chefs as strategic channel partner with 270
airlines and 100 rail/ferry customers
- Achieved 355 million passenger trips coverage with Mobile Virtual
- Became publicly traded issuer on the TSX Venture Exchange (Tier 1)
and raised over CDN $9 million gross
Fiscal 2007 Financial Review
Year ended Nov 30 3 months ended Nov 30
2007 2006 2007 2006
Revenue $5,430,154 $1,062,081 $1,577,825 $562,464
EBITDA(1) $32,377 ($1,022,754) ($127,043) ($656,293)
Net Loss $3,720,483 $2,289,780 $1,051,301 $828,374
The Company completed its fiscal year ended November 30, 2007 with record
revenue of $5.43 million, up 411% from $1.06 million in fiscal 2006. For
fiscal 2007, recurring revenue was 87% of revenue, or approximately
$4.73 million. The appreciation of the Canadian dollar, particularly against
the U.S. dollar by 14% during fiscal 2007 negatively impacted revenues by
approximately 5%. In the fourth quarter, revenues increased by 180% to
$1,577,825, compared to $562,464 for the comparable period in 2006.
"Our revenue continues to grow at a rapid pace which reflects the
popularity of our innovative on-board retail technology and platform service,"
said Tom Douramakos, President and CEO, GuestLogix. "As we secure the leading
airline brands and grow our passenger trip global footprint we will position
steadily to integrate third-party products and services that operators will
want to offer through our Mobile Virtual Store(TM). This should lead us to
additional profitable revenue growth in Fiscal 2008."
Operating expenses for the year ended November 30, 2007 increased to
$6,819,202 from $2,574,108 in fiscal 2006. The increase was due to the
continued strong growth of the Company and primarily driven by personnel
costs, equipment sales costs, sales and marketing costs and professional fees.
EBITDA(1) for the year ended November 30, 2007 was $32,377 compared to
($1,022,754) for the prior year.
Net loss for the year ended November 30, 2007, including non-cash
interest accretion charges and stock based compensation expenses totaling
$2,186,228, was $3,720,483 or $0.11 per basic and diluted share, compared to a
net loss of $2,289,780, including non-cash accretion and stock based
compensation expenses totaling $541,055, or $0.08 per basic and diluted share
As at November 30, 2007, the Company's cash and cash equivalents were
$5.99 million and the total issued and outstanding shares were 47,857,999.
Detailed Financial Statements
GuestLogix' complete Fiscal 2007 financial statements, Management
Discussion and Analysis are available at www.sedar.com.
Notice of Conference Call
GuestLogix will host a conference call on February 25, 2008 at 11:00 am
(ET) to discuss its Fiscal 2007 financial results and the Company's progress.
Tom Douramakos, President and CEO, will host the call. To participate, please
dial 416-644-3421 or 800-732-1073. The event will be archived and available
for audio replay until March 11th at 416-640-1917 or 877-289-8525 using
passcode 21263441 and the number sign. The replay will also be available at
www.guestlogix.com for 90 days.
GuestLogix is a leading provider of on-board retail technology and
solutions to the passenger travel industry. The world's leading airline
brands, including American Airlines, Delta Air Lines, Air Canada, Alaska
Airlines and Ryanair rely on GuestLogix to serve their customers daily.
GuestLogix is publicly traded on the TSX Venture Exchange in Toronto (Symbol
GXI). For more information please visit www.guestlogix.com.
(C) 2008 GuestLogix. All Rights Reserved.
The TSX Venture Exchange has neither approved nor disapproved the content
of this news release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
(1) EBITDA is a non non-GAAP measure that management believes is a useful
supplemental measure of operating performance prior to amortization,
debt service and income tax. Investors are cautioned that EBITDA
should not be construed as an alternative to net income, determined
in accordance with GAAP, as an indicator of the Company's performance
or to cash flows from operations as a measure of liquidity and cash
This news release includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with our 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 July 24, 2007 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.
For further information:
For further information: Analyst and Media Contact: Josef Zankowicz, VP
Marketing & Communications, (647) 500-1563, firstname.lastname@example.org; Investor
Contact: Brian Reddy, VP and CFO, Guestlogix, (416) 987-7053,