U.S. Markets closed

National Bank Financial Updates Coverage on GuestLogix Inc. (TSX:GXI) with an Outperform Rating - Video Research Alert on InvestmentPitch.com

Vancouver, British Columbia, December 12, 2013 -. National Bank Financial updated its coverage on GuestLogix Inc. (GXI.TO). Following the closing of a bought deal financing, analyst Nikhil Thadani increased his rating to outperform, while reaffirming his 12-month price target of $2.25, a healthy premium of 105% to the $1.10 price the day the report was issued.

InvestmentPitch.com has produced a "video research alert" about GuestLogix based on this report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "GuestLogix" in the search box.

The financing, underwritten by National Bank Financial and Cormark Securities, consisted of 10,455,800 shares at $1.10 per share, for gross proceeds of $11.5 million.

The company`s end-to-end solutions enable airlines and rail operators to process ancillary revenue transactions such as passengers purchasing food and beverage, duty-free goods and ground connections both on-board and off-board. Transactions can be performed in person via point of sale handheld devices or self serve via seatback screens, airport kiosks, smartphones and tablets. The company is able to process a variety of payment options, including cash, credit cards, debit cards, coupons, and points, with airlines accounting for more than 90% of GuestLogix`s revenue.

The company reported record revenues of $8 million for the quarter ended September 30, 2013, an increase of 36% over the $5.9 million reported in the same quarter in 2012, and the 3rd sequential quarter of record revenue.

During the quarter, the company signed several new multi-year contracts with airlines, including China Southern, Asia`s largest airline, in addition to a multi-year contract with North American rail carrier, Rocky Mountaineer.

Brett Proud, President & CEO stated, "Subsequent to quarter end, we announced our global partnership with retail technology giant NCR which will prove to be one of the most significant ventures the Company has ever embarked on. This global partnership will enable GuestLogix to leverage its transaction processing success to off-board travel touch points. Although we are proud of these results, we know this new and lucrative chapter for GuestLogix has only just begun."

This 10-year partnership will increase product mix potential including baggage fees, lounge access, seat upgrades and destination-based content.

The company`s recently refocused organic growth strategy is centered on helping travel operators grow the number and value on on-board transactions.

Analyst Nikhil Thadani stated, "While still in its early days, Wi-Fi connectivity for airline flight crew handhelds and tablets could increase on-board transaction values, which is a positive for GuestLogix revenue. Wi-Fi would enable real-time versus batch credit card processing, which could increase ceilings on transaction values."

The company currently trades at $1.10, below the $2.25 target price, and with 91.9 million shares outstanding, the company is capitalized at $101 million. For more information, please visit the company`s website www.guestlogix.com or contact Dan Thompson at 416-849-1566 or email dthompson@guestlogix.com.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

About InvestmentPitch

InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing corporate interviews and three minute videos based on news releases and research reports. Please visit InvestmentPitch.com and browse our extensive library of investment videos.

Barry Morgan, CFO

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: InvestmentPitch via GlobeNewswire