Guestlogix Achieves 80% Year-Over-Year Growth in Revenue in Q1 2015

TORONTO, ONTARIO--(Marketwired - May 4, 2015) - 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 March 31, 2015. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

"We have closed our first full quarter since the acquisition of OpenJaw Technologies and I am thrilled we are able to illustrate the strength of this new addition to the business immediately out of the gate. As our traditional onboard business continues to show great strength having signed three large-scale agreements in the quarter, the OpenJaw business unit has added an additional layer of confidence as we work to fuse these two companies together," said Brett Proud, President & CEO of GuestLogix. "We are extremely excited about the cross selling opportunities and operational synergies ahead of us, which will only work to accelerate the growth trajectory of the new GuestLogix."

Q1 F2015 Financial Summary

• Revenue of $15.3 million, compared to $8.5 million in Q1 F2014.
• Operating Expenses of $7.4 million, compared to $4.7 million in Q1 F2014.
• Adjusted EBITDA⁽¹⁾ of $1.9 million, compared to $146 thousand in Q1 F2014.
• Net profit of $237 thousand, compared to a net loss of $704 thousand in Q1 F2014.
• Cash of $7.0 million as at March 31, 2015, and with $2.4 million available in lines of credit for total cash resources of $9.4 million.

"I am proud to report our first quarter of over $15 million in revenue that was achieved despite the foreign exchange headwinds felt within the past several months," Proud continued. "And with the addition of our new team in Dublin, we were able to announce a restructuring plan that has already been put into place and will result in an additional annualized savings of $2 million - further enhancing our financial position and bringing about additional improvement in shareholder value."

Q1 F2015 Operational Highlights

Increasing the Number of Transactions that we process

• Signed 6+ year renewal and expansion agreement with Momentum Services for its customer Eurostar
• Signed a multi-year renewal and expansion agreement with leading Canadian airline, WestJet
• Signed major multi-year agreement with one of the industry's largest airlines for iOS-based onboard retail deployment

Increasing the Average Transaction Value

• Announced latest t-Retail Platform Release which includes support for high-value ancillary offers such as baggage fees, lounge access and airport concierge services
• Announced partnership with Expedia Affiliate Network (EAN) for large hotel distribution agreement

Earning More Fees per Transaction

• Agreement with Momentum Services includes use of its Global Payment Gateway™ and Ancillary Insights™ business intelligence platform
• Agreement with Canadian carrier, WestJet includes use of its Ancillary Insights™ business intelligence platform
• Agreement with large undisclosed airline includes use of its Ancillary Insights™ business intelligence platform

Strengthening our Operations & Finance

• Announced appointment of John Gillberry as Lead Independent Director on GuestLogix' Board of Directors
• Subsequent to quarter end, announced the appointment of Scott Craven Jones as new Independent Director on GuestLogix' Board of Directors
• Subsequent to quarter end, announced an operational restructuring plan that will result in a reduction of approximately US$2 million in annual operating expenditures

Financial Summary

	Q1 F2015			Q4 F2014			Q1 F2013
Revenue	$	15.3M		$	9.9M		$	8.5M
Gross Margin		46	%		47	%		48	%
Adjusted EBITDA(1)	$	1.9M		$	0.4M		$	0.2M
Net Profit (Loss)	$	0.2M		$	(3.9M	)	$	(0.7M	)
Net Loss Per Share	$	0.00		$	(0.4	)	$	(0.1	)

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

Q1 F2015 Conference Call Details

GuestLogix will host a conference call on Monday, May 4, 2015 at 4:30 p.m. Eastern Time to discuss its fiscal 2015 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 862-255-5346, or 1-888-567-1602. 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 March 31, 2015 will be available at www.sedar.com and www.guestlogix.com/investors.

About GuestLogix

GuestLogix Inc. (TSX:GXI), is a global leader in comprehensive merchandising, payment and business intelligence technology delivered to 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 and centre for product innovation 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 Kraków. More information is available at www.guestlogix.com and www.openjawtech.com.

© 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 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 4, 2015 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.