Gatekeeper Reports 11% Growth and US Expansion Fuels Third Quarter Results

INVESTORS NEWS

FOR IMMEDIATE RELEASE

Gatekeeper Reports 11% Growth and US Expansion Fuels Third Quarter Results

Abbotsford, BC – July 30, 2018 – Gatekeeper Systems Inc. (‘Gatekeeper’ or the ‘Company’) (TSX.V: GSI; OTC: GKPRF; FSE: 1GK), a leading provider of video surveillance systems developed to protect children riding on school buses and people using North America’s transit systems, today reported its financial results for the third quarter ending May 31, 2018.

Q3 2018 Financial Highlights

• Revenue for the three months ending May 31, 2018 was $2,527,308 compared to $2,274,528 during the same period in the previous year, representing an 11% increase, and included $311,883 of recurring revenue from the Company’s US subsidiary, Gatekeeper Systems USA Inc. (“Gatekeeper USA”), which operated in two months of the quarter;
• Gross profit during the quarter was $1,360,930 compared to $1,183,068 during the same period in the previous year and, as a percentage of revenue, was 54% for Q3-F2018 as compared to 52% for Q3-F2017;
• Increased expense levels during the quarter reflected consolidated general and administrative expenses from the new Gatekeeper USA, and one-time expenditures related to setting up the US location and expanding the company’s sales team;
• Net loss for the quarter was $126,209 as compared to a net income of $139,508 for the same period in the previous year and included $108,235 (Q3 F2017 $22,851) of non-cash, share based payment expense;
• Gatekeeper USA contributed $71,264 of profit for the two months that it operated in Q3;
• As at May 31, 2018, the Company had cash and cash equivalents of $4,625,143 and working capital of $6,714,687.

BUSINESS UPDATE

 

Summary of Financial Results and Information

About Gatekeeper Systems Inc.

www.gatekeeper-systems.com.

On behalf of the Board,

 

“Douglas Dyment”

President & CEO

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.

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, 2018. 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.

2018-07-30 -NR – Gatekeeper Reports 11% Growth and US Expansion Fuels Third Quarter Results