Gatekeeper Reports $5.65M Revenue, $1.3M Net Income in Fiscal Q3 2020

9th Consecutive Quarter of Year-over-Year Revenue Growth, Net Income 23%

Abbotsford, British Columbia--(Newsfile Corp. - July 6, 2020) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) (FSE: 1GK) ('Gatekeeper' or the 'Company') a leading provider of intelligent video solutions for public transport and smart cities, reports its financial results for the three and nine months ended May 31, 2020.

Third Quarter Highlights

  • Revenue for the three and nine months ended May 31, 2020 was the highest in the Company's history at $5,653,462 and $12,584,503 respectively which compares to $4,308,506 and $8,846,803 for the same prior year comparable periods, representing an increase of 31% and 42% respectively;

  • Gross profit for the three and nine months was the highest in the Company's history at $2,407,160 and $5,489,642 respectively which compares to $1,973,883 and $4,027,298 for the same prior year comparable periods, representing an increase in gross margin of 22% and 36%, respectively;

  • Gross Profit for the three and nine month represents 43% and 44% of revenues, respectively.

  • Net income for the three and nine months was the highest in the Company's history at $1,325,428 and $1,424,783 respectively which compares to net income of $616,572 and net loss of $526,332 for the same prior year comparable periods, representing an increase in profitability of 115% and 371%, respectively;

  • Net income for the three and nine months represents 23% and 11% of revenues respectively and further, was reduced by the inclusion of non-cash expenses of $228,761 and $412,997, respectively;

  • Annually recurring revenue for the nine months ended May 31, 2020 is estimated by management to be approximately $1.8 million, representing approximately 14% of total revenue;

  • As at May 31, 2020 the Company had working capital of $7,729,471 and approximately 88.8 million shares outstanding;

  • Introduced Platform-as-a-Service business model for Smart City Initiatives and Video Analytics solutions;

  • Operated as an essential business during COVID-19 outbreak.

Management Commentary

Doug Dyment, President and CEO commented, "I could not be more pleased with the fantastic results that our team delivered during a quarter which was overshadowed by a global pandemic and economic uncertainty. We adjusted our operations quickly and efficiently to protect our employees, allowing them to design new solutions for our customers and operate as an essential service, delivering the excellent service our valued customers expect. It portrays the dedication of our employees and the solid foundation on which the company is built. We are now rapidly advancing our new AI-based intelligent platform for Smart Cities and designing technology solutions that improve passenger safety and transit efficiency as cities reopen following COVID-19 lockdowns. This platform will host future applications such as thermal camera sensors or passenger counting and forms the basis of our evolution to a data company, which we expect will significantly contribute to our continued growth."

Platform-as-a-Service Business Model

Gatekeeper introduced its Platform-as-a-Service ("PaaS") business model, which is centered around its intelligent video devices that the Company is actively installing for transit authorities on multiple transportation modes. The intelligent devices collect vehicle data such as video, audio, GPS, time, door open/close, and will also serve as the AI-based intelligence platform for future applications such as thermal camera sensors, passenger counting, and license plate capture.

Gatekeeper's PaaS units are WiFi enabled and mobile connected, allowing public transit assets to become part of the intelligent transportation system in the Smart City ecosystem. The PaaS units also serve as the "black box" to aid in transit accident investigations. The Company is evaluating solutions that interface with its PaaS platform, including new innovations that may be desired by transit authorities and Smart Cities during and following the COVID-19 pandemic.

Artificial Intelligence and Video Analytics

The Company's Artificial Intelligence (AI) solutions support reliable video evidence collection and are an important component for passenger transportation safety and security. AI has the potential to evolve conventional video into machine-vision intelligence to automatically record, alarm, enforce, or take action without human interaction in applications such as abnormal driver behavior, abnormal passenger behavior, passenger counting, or license plate capture and ticketing of vehicles illegally driving in the bus lane or passing streetcars or school buses while passengers are loading or unloading.

During the quarter, the Company announced new video analytics system installations and is actively pursuing AI and video analytics solutions as part of its Smart City solution offerings.

COVID-19 Commentary

Gatekeeper, through its subsidiary Gatekeeper Systems USA Inc., has been deemed essential business in Philadelphia and surrounding counties. The Company's business relating to the Southeast Pennsylvania Transportation Authority (SEPTA) continues normal operations. SEPTA is the Company's largest customer and represented approximately 30% of the Company's revenues during its 2019 fiscal year.

Financial Summary

  For the three months ended  For the nine months ended 
  May 31,
2020
  May 31,
2019
  May 31,
2020
  May 31,
2019
 
Revenue$5,653,462 $4,308,506 $12,584,503 $8,846,803 
Cost of Sales 3,246,302  2,334,623  7,094,861  4,819,505 
Gross Profit 2,407,160  1,973,883  5,489,642  4,027,298 
Gross Margin 43%  46%  44%  46% 
             
Expenses 1,472,852  1,424,785  4,522,034  4,654,795 
Operating Income (Loss) 934,308  549,098  967,608  (627,497)
Net Income (Loss)$1,220,354 $616,572 $1,272,070 $(526,332)
Total Comprehensive Income (Loss)$1,325,428 $616,572 $1,424,783 $(526,332)
Earning (Loss) per share -            
     Basic$0.01 $0.01 $0.01 $(0.00)
     Diluted$0.01 $0.01 $0.01 $(0.00)

 

  May 31,
2020
  August 31,
2019
       
Total Assets$9,820,196 $9,249,093       
             
Total Liabilities 1,292,977  2,331,195       
             
Total Shareholders' Equity$8,527,219 $6,917,898       

 

Full details of the financial reports and operating results for the third quarter ended May 31, 2020 are described in the Company's condensed interim 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 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 and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems for Smart City initiatives. The Company's Platform-as-a-Service (PaaS) business model is designed to connect moving vehicles in the era of Internet of Things (IOT). www.gatekeeper-systems.com

Contact Information:

Douglas Dyment
President & CEO
ddyment@gatekeeper-systems.com
(604) 864-6187

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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 quarter ended May 31, 2020. 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/59217

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