Gatekeeper Systems, Inc. (TSXV: GSI) (OTC Pink: GKPRF) is engaged as a provider of wireless video surveillance and security solutions provider, which focuses on in-transit application: school buses, municipal buses, first responders, military, and more. In addition to video, the company provides video analytics, driver monitoring, incident management solutions, and more. Gatekeeper Systems has installed over 100,000 video devices for over 3,500 customers across North America. Shares of the video surveillance company jumped 38.89%, during trading on Tuesday, July 23, 2019. Over the past three months, Gatekeeper Systems has seen average daily volume of 61,345 shares. However, volume of 2.99 million shares or dollar volume of C$373,750, exchanged hands during trading on Tuesday.
Shares of Gatekeeper Systems jumped on Tuesday, after the company reported record fiscal third quarter earnings results for the period ending May 31, 2019. Revenue came in at C$4.31 million, which represents a 70% increase compared to the same period last year and an all-time record. Gross profits came in at C$1.97 million and net income came in at C$616,572 or C$0.01 per share.
Gatekeeper Systems, Inc. Press Release:
Abbotsford, British Columbia–(Newsfile Corp. – July 23, 2019) – Gatekeeper Systems Inc. (TSXV: GSI) (OTC: GKPRF) (FSE: 1GK) (‘Gatekeeper’ or the ‘Company’), a leading provider of video surveillance systems developed to protect people while in transit, today reported its financial results for the three and nine months ended May 31, 2019.
Financial Highlights for Third Quarter
- Revenue for the three months ended May 31, 2019 was $4,308,506, the highest quarterly revenue in the Company’s history and an increase of 70% when compared to $2,527,308 in the same period in the previous year;
- Revenue for the nine-month period ended May 31, 2019 was $8,846,803, the highest nine-month period revenue in the Company’s history and an increase of 70% when compared to $5,194,527 in the same period in the previous year;
- Gross profit during the three and nine-month period ended May 31, 2019 was $1,973,883 and $4,027,298 respectively, which compares to $1,360,930 and $2,767,242 respectively in the prior year comparable periods and represents the highest nine-month period gross profit in the Company’s history;
- Net income for the three-month period ended May 31, 2019 was $616,572 or $0.01 per share, the highest third-quarter net income in the Company’s history which compares to a net loss of $126,209 or $0.00 per share for the same period in the previous year;
- As at May 31, 2019 the Company had working capital of $5,740,807, no long-term debt, and approximately 87.6 million common shares outstanding.
Management Commentary
Doug Dyment, President and CEO commented, “Our fiscal third quarter marks the third consecutive quarter of record-breaking revenues, and a return to profitability. We developed a strategy in 2018 to expand into the US transit market, and over the past year we invested in operations to support this strategy. Although we recorded net losses over the past year to make these investments, today’s record-breaking quarterly results validate the meaningfulness of this strategic plan, which positions us exceptionally well for continued growth. Our employees are clearly motivated to deliver excellence to our valued customers, and we continue to strengthen our customer relationships – especially with our cornerstone customer in our transit business. We are also receiving increasing interest from the school bus market, as customers seek safety solutions for school children, and governments embrace the use of video evidence.”
U.S. Transit Initiative
In April 2018, the Company executed a strategic plan to focus on the U.S. transit industry as a key growth initiative by establishing Gatekeeper Systems USA Inc. (“Gatekeeper USA”) and purchasing assets of an existing mobile video surveillance service provider to the transit industry. This strategic initiative enabled a business relationship with the Southeastern Pennsylvania Transportation Authority (“SEPTA”) which is the sixth largest public transportation system in the U.S., has an average weekday ridership of approximately 1.1 million, and is actively using video evidence as protection against fraudulent claims, with an installed base of more than 27,000 video cameras on vehicles and in stations.
The Company has already been chosen for several new contracts which include video solutions for SEPTA transit buses being manufactured by New Flyer of America Inc. (TSX: NFI), video system solutions for SEPTA trains, as well as ongoing video servicing solutions.
School Bus Vision Technology
During the quarter ended May 31, 2019, the Company continued sales and deliveries of its recently-launched SP25 School Bus Vision systems, which have 10-megapixel dual-camera systems for multi-lane viewing license plate capture capability, a high-speed license plate tag reader, and cellular network compatibility ready for remote, and auto downloading of stop-arm violations.
The Company has received increasing interest from school districts regarding the use of video evidence to help protect school children, following the increase in tragic deaths of several students who have been struck within the past year by vehicles illegally passing school buses in various states. The National Association of State Directors of Pupil Transportation Services estimates that there are more than 15 million school bus stop-arm violations per year in the United States alone. The Company is actively marketing its new SP25 product line and is supportive of the social movements and legislation changes that increase awareness and address the safety concerns for school children.
Financial Summary
Full details of the financial reports and operating results for the three and nine months ended May 31, 2019 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 provides wireless high-resolution video security and safety solutions for in-transit applications, including school buses, municipal transit, first response, and the military. The Company offers wireless live-streaming video surveillance, video analytics, driver monitoring, and incident management solutions to help protect school children, public transit users, and employees on the move. The Company has unique photo enforcement and auto-ticketing solutions to deter stop-arm violations and protect school children. Gatekeeper has installed over 100,000 video devices for more than 3,500 customers throughout North America. www.gatekeeper-systems.com
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, 2019. 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.
