Abbotsford, British Columbia--(Newsfile Corp. - April 27, 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 six months ended February 28, 2021.
Financial Highlights
- Revenue for the six months ended February 28, 2021 was $8,256,766, an increase of 19% compared to $6,931,041 for the same period in the previous year, and represents the highest first-half revenue in the Company's history;
- Revenue for the three months ended February 28, 2021 was $3,291,961 which compares to $3,574,643 for the same period in the previous year;
- Gross profit for the three and six months ended February 28, 2021 was $1,600,861 and $3,371,306 respectively, and represents 49% and 41% of revenues respectively;
- Operating profit for the three and six months ended February 28, 2021 was $91,980 and $345,411 respectively, and represents the highest operating profit in these respective periods in the Company's history;
- Cash flow generated from operating activities during the six month period was $4,401,902 and at February 28, 2021 the Company had working capital of $8,696,902, no borrowed-money debt, and approximately 89.8 million shares outstanding.
Business Highlights
- Signed US $2M contract with the No.1 bus dealer in US;
- Signed 5-year agreement with the 8th largest school district in US;
- Signed one of the 10 largest school districts in the US for factory-installed PaaS deployment;
- Named a Top 10 Tech company in 2021 TSX Venture 50;
- Signed Vancouver Golf Tour in a recurring revenue model for rapid temperature check solution for sports venues;
- Developed CLARITY, an industry-first integrated video and school bus operating platform;
- Appointed Colin Sutherland and Corey Muirhead as new directors.
Management Commentary
"The first half of fiscal 2021 was another period of record-breaking revenue, and over the past five years our first-half revenue has consistently represented between 27% and 35% of our full-year revenue," commented Doug Dyment, President and CEO. "Our backlog and sales pipeline remain strong in both the transit and school markets and we are winning new customers and booking repeat business from existing customers in a business model we describe as recurring-customer business. In the transit market we are actively conducting proof-of-concept trials for new products we are developing that integrate our AI and video analytics capabilities. In the school market over the past year, we have announced contracts with 3 of the top 10 school districts in the US, plus the largest bus dealer. Some of these contracts are for factory-installed solutions on new buses. We continue to work with our partner in the development of CLARITY, and our sales team is now introducing CLARITY to school districts as a solution to the logistics challenges created by the new era of hybrid schooling."
"Our two new director appointments add significant experience to our board," continued Doug Dyment. "Mr. Sutherland brings extensive experience in finance and capital markets, while Mr. Muirhead brings industry expertise in school transportation and government relations, which will help guide our ongoing growth strategy. We are also honored to have been named a Top 10 Tech company in the 2021 TSX Venture 50 during the quarter."
Financial Summary
| For the three months ended | For the six months ended | ||||||||||
| February 28, 2021 | February 29, 2020 | February 28, 2021 | February 29, 2020 | ||||||||
| Revenue | $ | 3,291,961 | $ | 3,574,643 | $ | 8,256,766 | $ | 6,931,041 | |||
| Cost of Sales | 1,691,100 | 1,960,175 | 4,885,460 | 3,848,560 | |||||||
| Gross Profit | 1,600,861 | 1,614,468 | 3,371,306 | 3,082,481 | |||||||
| Gross Margin | 49% | 45% | 41% | 44% | |||||||
| Expenses | 1,508,881 | 1,551,966 | 3,025,895 | 3,049,181 | |||||||
| Operating Profit | 91,980 | 62,502 | 345,411 | 33,300 | |||||||
| Total Comprehensive Income (Loss) | $ | (341,909 | ) | $ | 90,551 | $ | (99,508 | ) | $ | 90,219 | |
| Earning (Loss) per share - | |||||||||||
| Basic | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | |
| Diluted | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | |
| February 28, 2021 | August 31, 2020 | | |||||||||
| Total Assets | $ | 14,085,358 | $ | 15,601,937 | |||||||
| Total Liabilities | 3,231,045 | 4,764,064 | |||||||||
| Total Shareholders' Equity | $ | 10,854,313 | $ | 10,837,873 | |||||||
Full details of the financial reports and operating results for the second quarter ended February 28, 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 February 28, 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.
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