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%
News Market Reaction – GKPRF
In the trading session that priced this news, GKPRF declined 4.76%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 of9% ;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 of27% ;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 was42% and48% , respectively, compared to50% and44% 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
In the school segment, we announced
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 | ||||||||||||
| | ||||||||||||
| 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