Gatekeeper Reports 8th Consecutive Quarter of Operating Profit in Fiscal Q1 2022
Abbotsford, British Columbia–(Newsfile Corp. – January 31, 2022) – 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 months ended November 30, 2021.
Financial Highlights for Fiscal First Quarter Ended November 30, 2021:
- Revenue was $2,699,589 which compares to $4,964,805 for the same period in the previous year;
- Gross profit was $1,719,439 which compares to $1,770,445 for the same period in the previous year;
- Gross margin as a percentage of revenue was 64% which compares to 36% in the same period in the previous year;
- Operating profit was $16,300 which compares to $253,431 for the same period in the previous year;
- At November 30, 2021, the Company had cash of $3,709,918, working capital of $9,276,103, and approximately 90.4 million shares outstanding.
Management Commentary
“In our first fiscal quarter, we continued to maintain operating profitability even though it was a quarter where some of our anticipated customer sales contracts were delayed while our school and transit customers were addressing driver shortage and operational challenges with high priority,” commented Doug Dyment, President and CEO. “These driver shortages and operational challenges increase our conviction in our recently-launched CLARITY and Automatic Lane Enforcement offerings which have been carefully designed to help address these challenges.
During the quarter we took the necessary steps to prepare Gatekeeper for the incredible opportunities that lie ahead in the school and transit industries, which are the primary business segments we serve. In 2021, federal funding commitments for over US $100 billion in each of these industries were announced, which is the largest federal funding assistance these industries have ever received.
We continued to invest in our customer sales and marketing activities during the quarter. Recently, we launched a new website, created five new product solution videos, and initiated seven new customer marketing campaigns. We also made significant effort to ensure we have access to sufficient product inventory, given the current challenges with the supply chain and chip shortages. A prevalent customer concern surrounds a supplier’s ability to deliver on their video and data offerings and we are proud that we can offer this advantage to new and existing customers. We also continued to invest in research and development for new products and solutions that our customers are requesting and we look forward to launching those solutions in the coming months.”
Selected Financial Information
| For the three months ended | ||
| November 30, 2021 | November 30, 2020 | |
| Revenue | $ 2,699,589 | $ 4,964,805 |
| Cost of Sales | $ 980,150 | $ 3,194,360 |
| Gross Profit | $ 1,719,439 | $ 1,770,445 |
| Gross Margin Percentage | 64% | 36% |
| Expenses | $ 1,703,139 | $ 1,517,014 |
| Operating Income (Loss) | $ 16,300 | $ 253,431 |
| Net Income (Loss) for the period | $ 183,093 | $ 242,401 |
| Earnings (Loss) per share – | ||
| Basic | $ 0.00 | $ 0.00 |
| Diluted | $ 0.00 | $ 0.00 |
| November 30, 2021 | August 31, 2021 | |
| Total Assets | $ 16,061,901 | $ 14,404,634 |
| Total Liabilities | $ 4,741,253 | $ 3,301,803 |
| Total Shareholders’ Equity | $ 11,320,648 | $ 11,099,831 |
Full details of the financial reports and operating results for the first quarter ended November 30, 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.
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 period ended November 30, 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.
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