GuestLogix Reports Fiscal 2008 Second Quarter Financial Results



    TORONTO, July 14 /CNW/ - GuestLogix Inc. (TSX-V: GXI), the leading
provider of on-board retail solutions to the airline industry, announces its
financial results for the three- and six-month periods ended May 31, 2008. All
results are reported in Canadian dollars.

    
    Operational Highlights - Mobile Virtual Store(TM) Platform

    -  Secured contract with UK-based Grand Central Railway Company
    -  Signed contract with low-cost carrier AirAsia X and completed
       deployment
    -  Awarded a multi-year contract by a major U.S. airline to be named upon
       full deployment this year
    -  Grew the number of revenue-producing customers to 15, up from 11 as
       at February 28, 2008 and nine as at May 31, 2007.


                                                  Q2 2008        Q1 2008
    Passenger trips under agreements          584 million    578 million
    Passenger trips deployed at quarter end   215 million    188 million
    ---------------------------------------------------------------------
    Average passenger trips deployed          202 million    175 million
    Average revenue per passenger trip          3.6 cents      3.2 cents


    Operational Highlights - Merchandising Channel

    -  Partnered with TicketOps to offer attraction tickets on North American
       flights
    -  Subsequent to quarter end, signed an agreement with a major New York
       City ticketing agency to launch the airline industry's first in-flight
       Broadway ticketing service
    

    GuestLogix established a retail merchandising channel business and
created its on-board retail development team in Q1 2008 to focus on
third-party product and service retailing integration agreements. To drive
further success of this strategic initiative, GuestLogix increased its capital
investment in its retail merchandising channel during the second quarter,
directing additional spending toward program development, promotion and
rollout.
    The strengthening of this group has resulted in two new partnerships. In
Q2 fiscal 2008, GuestLogix signed an agreement with e-ticketing company,
TicketOps, to offer tickets for tourist attractions, festivals, events and
movies on all inbound flights to North America. Subsequent to quarter end,
GuestLogix signed a Broadway ticketing agreement with a major New York City
based agency, to offer Broadway tickets on-board flights to New York City.
Including SkyMall, GuestLogix has a total of three major merchandising
agreements in place, each with revenue generating pilots scheduled for late
summer on select flights.

    
    Q2 Fiscal 2008 Financial Highlights

                      Three months  Three months    Six months    Six months
                             ended         ended         ended         ended
                      May 31, 2008  May 31, 2007  May 31, 2008  May 31, 2007
    Revenue             $1,826,710    $1,725,122    $3,230,567    $2,396,574
    Recurring revenue   $1,826,710      $912,503    $3,230,567    $1,572,400
    EBITDA(1)            $(336,971)     $348,034     $(328,196)     $536,514
    Net Income (Loss)  $(1,118,028)    $(677,423)  $(1,658,932)  $(1,491,091)
    

    "In the second quarter, we continued to build a strong base of recurring
revenue, delivering a 29% increase over Q1 2008," said Tom Douramakos,
President and CEO of GuestLogix. "We also committed greater resources to our
retail merchandising channel as third-party retail merchandising programs will
help accelerate growth of GuestLogix' average revenue per passenger. Our
agreements with SkyMall, Ticket Ops and the major New York ticketing agency
will offer significant potential revenue opportunities. In addition, we
continued to build our sales pipeline and expect increased adoption of our
Mobile Virtual Store(TM) platform in the second half of the year."
    As at May 31, 2008, GuestLogix had cash and cash equivalents totaling
$4.8 million, compared to $3.8 million as at February 28, 2008 and
$6.0 million as at November 30, 2007. Total shares issued and outstanding were
50,964,203.

    FY 2008 Outlook

    "We believe current airline industry challenges provide an opportunity
for GuestLogix, as our on-board retailing solution enables carriers to quickly
establish new revenue streams to help offset rising operating costs," added
Mr. Douramakos. "The industry trend toward ancillary revenue growth is gaining
momentum. On a daily basis, we are seeing major airlines announce plans and
implement additional charges for basic items such as checked baggage, seat
selection and refreshments including soft drinks, juices, coffee and bottled
water. With more than 50% of the passenger trips of the top 20 global airlines
covered under agreements and being deployed on our retail platform, GuestLogix
is positioned to immediately reap the benefits from these additional
transactions, creating the potential for accelerated revenue growth during the
remainder of the year."

    Financial statements and MD&A will be available at www.guestlogix.com and
www.sedar.com.

    
    (1) Earnings before interest, taxes, depreciation and amortization
        ("EBITDA") is a financial metric used by many investors to evaluate
        companies in this industry on the basis of operating results and the
        ability to incur and service debt. EBITDA does not have a
        standardized meaning prescribed by GAAP and may not be comparable to
        similar measures presented by other companies. The disclosure of
        EBITDA is not intended to replace, but only augment, the discussion
        of financial results from operations or cash flows.
    

    Notice of Conference Call

    GuestLogix will host a conference call Monday July 14, 2008, at 8:30 a.m.
Eastern Standard Time to discuss its second quarter fiscal 2008 financial and
operational results and its outlook for the balance of 2008. To access the
conference call by telephone, dial 416-644-3416 or 1-800-733-7560. Please
connect approximately fifteen minutes prior to the beginning of the call to
ensure participation. The conference call will be archived for replay until
Monday July 21, 2008. To access the archived conference call, dial
416-640-1917 or 1-877-289-8525 and enter reference number 21275446 followed by
the number sign. The replay will also be available at www.guestlogix.com.

    About GuestLogix

    GuestLogix is the leading provider of on-board retail technology and
solutions to the passenger travel industry. Through its proprietary Mobile
Virtual Store(TM) platform, the Company provides air, rail and ferry operators
the tools and products to become successful on-board retailers, enhance
service and drive ancillary revenue growth. With a customer base consisting of
world leading airlines such as American Airlines, Delta Air Lines, Ryanair,
Germanwings and Alaska Airlines, GuestLogix maintains agreements to serve more
than a half billion passenger trips annually. For additional information
please visit 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 July 14, 2008 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.

    (C) 2008 GuestLogix. All Rights Reserved.

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release

    %SEDAR: 00024725E




For further information:

For further information: Media/Analysts: Josef Zankowicz, VP Marketing &
Communications, GuestLogix, (647) 500-1563, josefz@guestlogix.com; Investors:
Brian Reddy, VP Corporate Development & CFO, GuestLogix, (416) 642-0395 x7053,
breddy@guestlogix.com; Kristen Dickson, Investor Relations, The Equicom Group,
(416) 476-7814, kdickson@equicomgroup.com

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