Abbotsford, British Columbia--(Newsfile Corp. - July 26, 2021) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) (FSE: 1GK) ('Gatekeeper' or the 'Company'), a video and data solutions provider for public transportation and smart cities, reports its financial results for the three and nine months ended May 31, 2021. During the quarter, the Company achieved its sixth consecutive quarter of operating profit while investing approximately $0.5 million in AI development pertaining to the Company's recently launched Automatic Lane Enforcement (ALE) product offering.
ALE uses video analytics and Artificial Intelligence to identify instances in which vehicles are violating transit lane traffic laws or passing a streetcar when passengers are boarding or deboarding. ALE records the video evidence, captures the vehicle license plate, and prepares the instance for review and ticketing using the Company's proprietary Traffic Infraction Management System (TIMS) software. The Company is currently conducting live ALE transit trials.
Business Highlights
- Launched AI-enabled Automatic Lane Enforcement (ALE) solution for traffic lane violations;
- Developed CLARITY, an industry-first integrated video and school bus operating platform;
- Launched a new Software-as-a-Service (SaaS) based video management solution designed to store and manage school bus video data and announced first customer deployment;
- Announced contracts with school districts in Louisiana, Illinois and Alberta;
- Announced pilot-project installations for Toronto Student Transportation Group and for the Canadian Federal, Provincial and Territorial school bus safety initiative.
Financial Highlights
- Revenue for the nine months ended May 31, 2021 was $12,088,139 which compares to $12,584,503 for the same period in the previous year;
- Revenue for the three months ended May 31, 2021 was $3,831,373 which compares to $5,653,462 for the same period in the previous year;
- Gross profit for the three and nine months ended May 31, 2021 was $1,853,029 and $5,224,335 respectively, and represents 48% and 43% of revenues respectively;
- Operating profit for the three and nine months ended May 31, 2021 was $144,081 and $489,492 respectively;
- Cash flow generated from operating activities during the nine-month period was $4,856,090 and at May 31, 2021 the Company had working capital of $8,738,973, no borrowed-money debt, and approximately 90.3 million shares outstanding.
Management Commentary
"In Fiscal Q3 2021, we maintained operating profitability while re-investing in our business to develop new product lines, which we expect will deliver significant future revenues," commented Doug Dyment, President and CEO. "Our backlog and sales pipeline are strong in both the transit and school markets, and in Q3 most of our business was repeat orders from existing customers through our recurring-customer business model. We are strategically investing in our AI and video analytics capabilities to develop smart city products such as ALE, which we recently launched as a solution to help cities improve passenger safety and alleviate traffic congestion as we emerge from the pandemic."
Financial Summary
| For the three months ended | For the nine months ended | |||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |||||||||
| Revenue | $ | 3,831,373 | $ | 5,653,462 | $ | 12,088,139 | $ | 12,584,503 | ||||
| Cost of Sales | 1,978,344 | 3,246,302 | 6,863,804 | 7,094,861 | ||||||||
| Gross Profit | 1,853,029 | 2,407,160 | 5,224,335 | 5,489,642 | ||||||||
| Gross Margin | 48% | 43% | 43% | 44% | ||||||||
| Expenses | 1,708,948 | 1,472,852 | 4,734,843 | 4,522,034 | ||||||||
| Operating Profit | 144,081 | 934,308 | 489,492 | 967,608 | ||||||||
| Total Comprehensive Income (Loss) | $ | (42,393) | $ | 1,325,428 | $ | (141,898) | $ | 1,424,783 | ||||
| Earning (Loss) per share - | ||||||||||||
| Basic | $ | (0.00) | $ | 0.01 | $ | (0.00) | $ | 0.01 | ||||
| Diluted | $ | (0.00) | $ | 0.01 | $ | (0.00) | $ | 0.01 | ||||
| May 31, 2021 | August 31, 2020 | |||||||||||
| Total Assets | $ | 13,911,315 | $ | 15,601,937 | ||||||||
| Total Liabilities | 3,051,923 | 4,764,064 | ||||||||||
| Total Shareholders' Equity | $ | 10,859,392 | $ | 10,837,873 | ||||||||
Full details of the financial reports and operating results for the third quarter ended May 31, 2021 are described in the Company's consolidated financial statements with accompanying notes and related Management's Discussion and Analysis, available on SEDAR at www.sedar.com.
About Gatekeeper Systems Inc.
Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, thermal cameras, and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems in a Smart City ecosystem. The Company's Platform-as-a-Service (PaaS) business model is an enabling transformation to a video and data solutions provider for intelligent transit and Smart Cities.
www.gatekeeper-systems.com
Contact Information:
Douglas Dyment
President & CEO
ddyment@gatekeeper-systems.com
(604) 864-6187
Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis for the period ended May 31, 2021. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91246
