GuestLogix Announces Q3 Fiscal 2015 Results & Initiation of Strategic Review
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 11/12/15 -- GuestLogix Inc. (TSX: GXI), 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 September 30, 2015. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.
Q3 F2015 Highlights
Q3 F2015 Financial Summary
"Closing out the third quarter, we were able to successfully reduce the Company''s operating overhead through a major restructuring plan including both headcount and contractor reduction and several operational efficiency measures that will begin to drive the company towards positive operating results moving forward," said John Gillberry, Chief Executive Officer, GuestLogix Inc. "Revenue declined within the quarter, which was primarily a result of delay in device deployments and initial services. All client deployments in the pipeline remain scheduled, however several have been delayed as a result of software customization and / or configuration requests by clients."
Financial Summary
Announced Restructuring
During the quarter, the Company undertook a significant restructuring exercise resulting in a charge to operations of $2.3 million. This expense was largely the result of the following activities:
The result of these actions along with a significant reduction in non-essential General and Administrative expenses such as travel and entertainment expenses, communication costs and rationalizing excess space is expected to reduce the operating cash expenses of the Company on an annualized basis by $6.0 million - $6.5 million.
In addition, the Company recorded expenses of $2.1 million as a charge to general and administrative expenses consisting of bad debt provisions including an amount related to a client who went into liquidation, amounts related to settlement of disputes, interest and penalties in respect of a GST/HST reassessment, and certain expenses related to delayed deployments for client projects.
Gillberry continued, "As we enter into our fourth quarter, we do so with a new foundation aimed at achieving business successes that result in increased and sustainable earnings as a Company, which will in turn provide a heightened level of value for each of our shareholders."
GuestLogix'' Board of Directors has initiated a review of strategic alternatives to enhance shareholder value. Canaccord Genuity has been retained to act as exclusive financial advisor to the Company in connection therewith. There can be no assurance that this strategic review process will result in the completion of any transaction or other alternative. The Company has not set a timetable for completion of the review process, and it does not intend to comment further regarding the review process unless a specific transaction or other alternative is approved by the Board of Directors, the review process is concluded or it is otherwise determined that further disclosure is appropriate or required by law.
Introduction of Guidance
GuestLogix is, for the first time, introducing guidance in order to provide shareholders with better visibility into our two core lines of business. With the goal of offering a higher degree of transparency, the following is management''s best views of financial expectations in both the next quarter and the next fiscal year.
Fourth Quarter 2015 Financial Guidance
For the fourth quarter 2015 ending December 31, 2015, the Company expects revenue to be at least $5.2 million from the OpenJaw division and $6.0 million from the GuestLogix Onboard division for a total revenue of $11.2 million. This revenue guidance does not include the potential impact of revenue not yet factored into the Company''s sales pipeline which could include additional licensing revenue not already in the sales pipeline, new agreements that may be signed not already identified in the sales pipeline or the potential impact of any new service contracts not already in the sales pipeline. This guidance is provided prior to the completion of the first month of this fiscal quarter and as such, a number of activities that normally are captured at or shortly after the month end have yet to be recorded by the Company.
Additionally, certain revenues may be of a one-time nature. The above targets for the three-month period ending December 31, 2015 reflect our current business indicators and expectations and are subject to, among other things, fluctuations in foreign currency exchange rates. Actual revenues reported may exceed the revenue guidance provided due to the closing of certain business transactions or signing of new license agreements and sale of hardware, all after the guidance is provided.
Fiscal 2016 Financial Guidance
For the 12-month fiscal period ending December 31, 2016, the Company expects revenue to be at least $54.0 million with operating expenses expected to be $21.8 million. This financial guidance does not include the potential impact of revenue not yet factored into the Company''s sales pipeline which could include additional licensing revenue not already in the sales pipeline, new agreements that may be signed not already identified in the sales pipeline or the potential impact of any new service contracts not already in the sales pipeline.
Additionally, certain revenues may be of a one-time nature. The above targets for the 12-month period ending December 31, 2016 reflect our current business indicators and expectations and are subject to, among other things, fluctuations in foreign currency exchange rates. Actual revenues reported may exceed the revenue guidance provided due to the closing of certain business transactions or signing of new license agreements and sale of hardware, all after the guidance is provided.
Q3 F2015 Conference Call Details
GuestLogix will host a conference call on Thursday, November 12, 2015 at 4:30 p.m. Eastern Time to discuss its fiscal 2015 third 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 862-255-5346, or 1-888-567-1602. A replay of the call will be available at .
A complete set of financial statements and Management''s Discussion and Analysis for the three-and nine-month periods ended September 30, 2015 will be available at and .
About GuestLogix
GuestLogix Inc. (TSX: GXI), is a leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and 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. On December 23, 2014, GuestLogix announced the acquisition of OpenJaw Technologies, a Dublin-based technology company focused on travel retailing innovation in the e-commerce segment. GuestLogix'' global headquarters is located in Toronto, with regional offices located in Dallas, London, Dublin, Galway, Madrid and Hong Kong, and product innovation labs located in Moncton and Krakow. More information is available at and .
© 2015 GuestLogix. All Rights Reserved.
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 statements as to the Company''s expectations of its restructuring efforts, the Company''s expectations as to its revenues in the fourth quarter and beyond, and 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 Company''s latest Annual Information Form and Management''s Discussion and Analysis filed 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.
Contacts:
GuestLogix Inc.
Dan Thompson
SVP - Marketing & Communications
416-849-1566
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Datum: 12.11.2015 - 15:00 Uhr
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