Gatekeeper Reports $6.5M Revenue in Fiscal Q3; $26M Revenue and $3.1M Net Income in 9 Month Period

Rhea-AI Summary

Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) reported its financial results for Q3 and the nine months ended May 31, 2024. Highlights include:

• Q3 revenue increased 9% to $6.46M
• Nine-month revenue up 27% to $26.14M
• Nine-month net income of $3.11M
• Cash and equivalents of $9.25M with no debt

The company saw growth in both school and transit segments, with $3M in orders for Mobile Data Collectors and video systems for 1,400 school buses. Gatekeeper is also positioning itself for the new Federal Railroad Administration rule requiring video and recording devices on all U.S. intercity passenger trains by 2027.

Positive

• Q3 revenue increased 9% year-over-year to $6.46M
• Nine-month revenue grew 27% to $26.14M
• Nine-month net income of $3.11M, up from $2.22M in the prior year
• Strong financial position with $9.25M in cash and no debt
• $3M in new orders for school bus video systems and Mobile Data Collectors
• Expanded sales and marketing efforts, participating in 50 industry trade shows

Negative

• Q3 gross margin decreased to 42% from 50% in the prior year
• Q3 net loss of $517,132 compared to net income of $440,963 in the prior year
• Increased expenses, with sales and marketing costs up approximately 50%

Abbotsford, British Columbia--(Newsfile Corp. - July 30, 2024) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) ('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, 2024.

Highlights for Third Fiscal Quarter Ended May 31, 2024:

• Revenue for the three months ended May 31, 2024 was $6,457,184 compared to $5,933,125 for the same prior year comparable period, representing an increase of 9%;

• Revenue for the nine months ended May 31, 2024 was $26,140,481 compared to $20,503,956 for the same prior year comparable period, representing an increase of 27%;

• Gross margin for the three months and nine months ended May 31, 2024 was $2,725,898 and $12,591,574, respectively, compared to $2,946,985 and $9,038,682 for the same prior year comparable periods. Gross margin as a percentage of revenue for the three and nine months ended May 31, 2024 was 42% and 48%, respectively, compared to 50% and 44% for the same prior year comparable periods;

• Total comprehensive loss for the three months ended May 31, 2024 was $517,132 and total comprehensive income for the nine months ended May 31, 2024 was $3,111,840, compared to total comprehensive income of $440,963 and $2,219,853 for the same prior year comparable periods;

• At May 31, 2024, the Company had cash and cash equivalents of $9,254,002, working capital of $15,826,682, no borrowed-money debt, and approximately 92.7 million shares outstanding.

Management Commentary

Doug Dyment, President and CEO, commented, "Fiscal Q3 revenue represents the highest third-quarter revenue in Gatekeeper's history. Our strong financial performance in recent quarters has allowed us to increase investment in our people and business infrastructure in alignment with our new product offerings and expected growth. We have ramped up our sales and marketing expenses by approximately 50% and during this calendar year we will be presenting our solution suite at approximately 50 industry trade shows throughout North America. We have launched several new products and established a data center for our AI-based video analytics hosted service offerings.

In the school segment, we announced $3 million in orders for Mobile Data Collectors (MDCs) and video on 1,400 school buses during the quarter. School districts are embracing our video analytics software offerings, and our sales team is focused on the importance of wirelessly connected MDCs and these offerings. We believe that interest by school districts in video analytics is quickly increasing in importance. Many customers have already installed video systems, but they now need help in analyzing that video efficiently. We believe we now have the solutions to help them with that.

In the transit segment, we announced a transit contract in Central Oregon to equip 77 transit vehicles with video and data solutions. Gatekeeper has also attended transit industry trade shows and has received notable interest in our product suite designed to meet the Federal Railroad Administration's new rule which requires the installation of video and crashworthy recording devices on all intercity passenger trains in the U.S. by 2027."

Selected Financial Information

		For the three months ended						For the nine months ended
		May 31, 2024			May 31, 2023			May 31, 2024			May 31, 2023
Revenue	$	6,457,184		$	5,933,125		$	26,140,481		$	20,503,956
Cost of Sales		3,731,286			2,986,140			13,548,907			11,465,274
Gross Profit		2,725,898			2,946,985			12,591,574			9,038,682
Gross Margin		42%			50%			48%			44%
Expenses		3,172,710			2,518,935			9,173,453			7,089,064
Operating Income (Loss)		(446,812	)		428,050			3,418,121			1,949,618
Total Comprehensive Income (Loss) for the period	$	(517,132	)	$	440,963		$	3,111,840		$	2,219,853
Earning (Loss) per share -
Basic	$	(0.01	)	$	0.01		$	0.03		$	0.02
Diluted	$	(0.01	)	$	0.01		$	0.03		$	0.02
		May 31, 2024			August 31, 2023
Total Assets	$	22,790,929		$	19,609,579
Total Liabilities		3,708,883			3,866,678
Total Shareholders' Equity	$	19,574,046		$	15,742,901

 

Full details of the financial reports and operating results for the third fiscal quarter ended May 31, 2024, are described in the Company's unaudited consolidated financial statements with accompanying notes and related Management's Discussion and Analysis, available on SEDAR+ at www.sedarplus.ca.

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, and Mobile Data Collectors to inter-connect public transportation assets within a Smart City ecosystem. The Company's Platform-as-a-Service (PaaS) business model is centered around wirelessly enabled Mobile Data Collectors which forms the foundation of the Company's data company evolution. 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, 2024. 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/218304

FAQ

What was Gatekeeper Systems' (GKPRF) revenue for Q3 2024?

Gatekeeper Systems reported revenue of $6,457,184 for the third quarter ended May 31, 2024, representing a 9% increase from the same period last year.

How much net income did Gatekeeper Systems (GKPRF) report for the nine months ended May 31, 2024?

Gatekeeper Systems reported a total comprehensive income of $3,111,840 for the nine months ended May 31, 2024.

What new orders did Gatekeeper Systems (GKPRF) announce in Q3 2024?

Gatekeeper Systems announced $3 million in orders for Mobile Data Collectors (MDCs) and video systems for 1,400 school buses during the third quarter of 2024.

What is Gatekeeper Systems' (GKPRF) cash position as of May 31, 2024?

As of May 31, 2024, Gatekeeper Systems had cash and cash equivalents of $9,254,002, with no borrowed-money debt.