What does GuestLogix do?
GuestLogix is an on-board retail technology and application service provider to the passenger travel industry. Its Mobile Virtual Store™ platform is recognized as the leading on-board retail system in the airline industry today. The Company also facilitates the introduction of new products and services that can be sold on-board via its platform to achieve more profitable sales for its customers.
What is a Mobile Virtual Store?
The Mobile Virtual Store™ is a platform comprising wireless handheld devices, software and Web services that allow operators to plan, provision, sell, and control the sale of goods and services during pre-departure, on-board, and post-arrival operations. The transactions can be cash or cashless. The GuestLogix technology integrates with the operators' existing CRM, ERP and accounting systems to completely automate their retail business.
How is the Mobile Virtual Store different from a traditional POS retail solution?
A point of sale interface is incorporated within the Mobile Virtual Store™ platform. While traditional POS retail products also help with planning and provisioning, the GuestLogix solution encompasses workflow automation and alerts to fine tune retailing in an environment that is constantly changing and where each departure to arrival segment is essentially managed as a unique virtual store. The Company also manages the cash handling and reconciliation at the end of each trip.
How does your POS interface work?
GuestLogix provides a state-of-the-art handheld device specifically designed for use on board transport systems. The interface can also be deployed as software on seatback screens and passengers' equipment, such as laptop computers, for customer self-service. As most transport systems have yet to be 'webified' the GuestLogix interface stores the transactions locally until a secure Internet connection is established for final secure processing of on-board sales.
How much has been invested in your platform to date?
The Company has invested over $15M in product R&D. There are a number of elements to its platform that are innovative, proprietary and patent-pending.
Who are your competitors?
The Company's competitors include enterprise software firms (e.g. SAP), software firms in the travel industry (e.g. Sabre), business processing outsourcing firms (e.g. Gate Gourmet), duty free services providers (e.g. Duty Free World), handheld POS providers (e.g. Ingenico), and transaction processing companies (e.g. First Data). GuestLogix is the industry's only end-to-end solution provider.
How many airline customers do you have?
The Company has 24 airline and rail customers in various stages of deployment throughout the world.
Who is your single largest customer?
The Company's largest customers in terms of revenue today are American Airlines, Delta Air Lines and LSG SkyChefs.
Who are your airline customers?
As at the start of 2008 GuestLogix has captured 42% of the top 20 global airlines and 55% of the top 20 North American airlines. The customer list includes American Airlines, Delta Air Lines, Alaska Airlines, Ryanair, AirAsia X, Germanwings and Zoom Airlines to name a few. Collectively its contracted customers represent more than a half billion passenger trips annually.
How long does it take for an operator to deploy your on-board retail system?
Once an agreement is signed, the Mobile Virtual Store™ implementation will follow a staged process, including training, which takes 6-8 weeks. An operator with 400 aircraft, for example, would typically require 2-4 months to fully deploy the GuestLogix solution across its entire fleet.
Why do airline operators want to become retailers?
Non-ticket revenues generate more profits per passenger than any other revenue component. On-board retailing is recognized as being strategic to profitable airline operations and GuestLogix allows operators to become smart retailers without any capital outlay.
How large is the on-board retail market with airlines?
The airline industry manages 3.3 billion passenger trips annually. The average on-board revenue generated by airlines is around US $1 per passenger trip. The airlines' leading ancillary revenue producer generates five times the industry average in on-board sales per passenger trip. The Company estimates the on-board retail market to be worth more than $20 Billion by 2010.
Are you serving any other passenger verticals?
The Company's other market segments include rail and ferry operators. GuestLogix has one rail customer to date and plans to expand this business segment in Fiscal 2009 with a concerted effort in Europe. The rail industry is least 10 times larger than air travel in terms of passenger trips.
How does the company sell its solution?
The Company sells its Mobile Virtual Store™ solution directly and through distribution partners such as LSG Sky Chefs the world's largest caterer to the airline industry with 270 airlines and 100 rail and ferry operators as customers.
What does your solution cost?
GuestLogix provides its platform service on a transaction fee based model. The Company supplies and funds the devices and software services. Customers must commit to a minimum number of monthly transactions to participate in the no capital outlay model.
What are the company's sales to date?
The Company's revenue has been growing at triple digit rate for the past three years. For the fiscal year ending November 30, 2007 GuestLogix achieved CDN $5.4 million in sales. For the six-months ending May 31, 2008 GuestLogix generated $3.2 million in sales.
How is the Company capitalized?
GuestLogix is publicly traded on the TSX Venture Exchange (Symbol "GXI") in Toronto. Coincident with its listing in August 2007, the Company raised private placement financing of over CDN $9M with warrants that are providing an additional $5M.
How many shares are issued and outstanding?
As at May 31, 2008 the weighted average number of shares issued and outstanding was 50,964,203.
Who are the main shareholders?
Management and employees own 35.1% of the fully diluted number of shares. |
