Gatekeeper Reports $20.3M Revenue, $3.5M Net Income, $0.04 EPS in Record Breaking Fiscal 2020
61% CAGR revenue growth in two years
Abbotsford, BC – December 10, 2020 – Gatekeeper Systems Inc. (‘Gatekeeper’ or the ‘Company’) (TSX-V: GSI) (OTC: GKPRF) (FSE: 1GK) a video and data solutions provider for public transportation and smart cities, reports audited financial results for fiscal year ended August 31, 2020.
Fourth Quarter and Year End Highlights
- Revenue for the year ended August 31, 2020 was $20,316,576, the highest fiscal year revenue in the Company’s history and an increase of 48% when compared to $13,726,313 for the same period in the previous year;
- Revenue for the fourth quarter was $7,732,074, the highest fourth quarter revenue in the Company’s history and an increase of 58% when compared to $4,879,510 in the same period in the previous year;
- Gross profit for the year ended August 31, 2020 was $8,348,810, the highest gross profit in the Company’s history and an increase of 37% when compared to $6,104,128 for the same period in the previous year;
- Net income for the year ended August 31, 2020 was $3,535,007, the highest net income in the Company’s history and an increase of 1337% when compared to net loss of $285,827 for the same period in the previous year, and representing 17.4% of revenue;
- Working capital as at August 31, 2020 was $8,325,049. The Company had immaterial long term debt and approximately 89.4 million shares outstanding;
- Introduced Platform-as-a-Service (PaaS) business model as an enabling transformation to a video and data solutions provider for intelligent transit and Smart Cities;
- Announced several customer contracts for video analytics software solutions;
- Launched Intelligent Temperature Sensing Systems (ITSS) for passenger health monitoring on school buses and transit buses;
- Completed design and delivery of NTSB compliant digital video recorders in a $6.3 million contract for the sixth largest transit authority in the US;
- Commenced annually recurring contract to provide video services for the sixth largest transit authority in the US valued at approximately $12 million over 5 years and was deemed essential business during the COVID-19 pandemic; and
- Entered a non-dilutive revolving credit facility with TD Bank for up to $3 million.
Doug Dyment, President and CEO commented: “I’m extremely pleased with the fantastic results that our team delivered during a fiscal year which was overshadowed by a global pandemic and economic uncertainty. We adjusted our operations quickly and efficiently to protect our employees, allowing our business to operate as an essential service. We continued to develop our new AI-based platform for Smart Cities and developed new solutions to improve passenger safety and transit efficiency as cities reopen following COVID-19 lockdowns. Our new passenger health monitoring panel became part of our PaaS platform and its facial recognition feature paves the road for future applications like contact tracing, passenger counting or payment verification, and strengthens our transformation to a video and data solutions provider for Smart Cities.”
Several new initiatives were established during the 2020 fiscal year which the Company expects will contribute strongly to future growth. They include:
Platform-as-a-Service (“PaaS”) Business Model – during the year, Gatekeeper introduced the PaaS business model as an enabling transformation to a video and data solutions provider for intelligent transit and Smart Cities. Over the past seven years the Company has installed over 28,000 intelligent mobile data collectors and 97,000 video devices on school buses, transit buses and trains for over 3,500 public transportation customers. These intelligent devices form the foundation of the Company’s PaaS business model by collecting vehicle data such as video, audio, GPS, time, door open/close and serve as the “black box” to aid in transit accident investigations. The PaaS units are WiFi enabled, mobile connected, or mobile enabled, allowing public transport assets to become part of an intelligent transportation solution in a Smart City ecosystem. The PaaS platform also serves as the AI-based intelligence platform for future applications such as thermal camera sensors, passenger counting, contact tracing, intelligent routing, license plate capture, video evidence and more.
Artificial Intelligence and Video Analytics Software – during the year, Gatekeeper continued development of video-based artificial intelligence offerings. AI offers the potential to evolve conventional video into machine-vision intelligence to automatically record, alarm, enforce, or take action without human interaction in applications such as abnormal driver behavior, abnormal passenger behavior, passenger counting, or license plate capture and ticketing of vehicles illegally driving in the bus lane or passing streetcars or school buses while passengers are loading or unloading. Many customers choose Gatekeeper because of its video analytics software which allows easy zooming, facial blurring and enables quick and easy assembly of video evidence needed to deal with problems such as bullying, grazing or verbal abuse on school buses.
Passenger Health Check Initiative – during the year, Gatekeeper launched Intelligent Temperature Sensing System (ITSS) as its first health check offering. ITSS is a contactless infrared body temperature sensor system that incorporates a smart panel, thermal imaging, and artificial intelligence to measure body temperature within 20 milliseconds. The panel is equipped with facial recognition capabilities to improve accuracy and allows authorities to prepare future applications such as intelligent passenger routing, contact tracing, passenger counting, or payment verification. The Company believes passenger health monitoring in public transportation is an emerging growth trend that will continue even after the COVID-19 pandemic subsides. An estimated 25 million schoolchildren and 18 million transit passengers board buses daily in the US alone, mostly at locations that are not stations which necessitates on-bus installations for passenger health screening devices. The Company is integrating ITSS into its PaaS platform business model as a new additional data layer.
NTSB Compliant Digital Video Recorders – during the year, Gatekeeper completed the design and supply of digital video recorders (DVRs) and crash hardened memory modules (CHMMs) that record and protect operating evidence in rail transit applications. The DVRs and CHMMs have continuous-recording capabilities that can be used to verify crew actions and train operating conditions, which greatly aids accident investigations in the same way black boxes are used in the airline industry. They are compliant with the recommendation made by the National Transportation Safety Board (NTSB), which calls upon the Federal Transit Administration to install crash-resistant inward and outward-facing cameras and continuous recorders in all rail transit vehicles. The Company completed its first installation, equipping the trains of the sixth largest transit authority in the US through a $6.3 million contract.
Annually Recurring Video Services – during the year, Gatekeeper was awarded a contract to provide annually recurring vehicle video system maintenance services to Southeastern Pennsylvania Transit Authority (SEPTA), the sixth largest transit authority in the US. The contract is valued at approximately $2.36 million per year and SEPTA has approved an initial three-year service term plus two one-year extension options for a total potential contract value of up to $11.8 million over five years. SEPTA is actively using video evidence as protection against fraudulent claims and has installed more than 27,000 video cameras on vehicles and in stations. Gatekeeper was deemed an essential business during the COVID-19 emergency order which temporarily prohibited operations of non-essential businesses in Pennsylvania.
Selected Financial Information
The following sets out selected financial information from the Company’s four most recently completed financial years and are derived from the Company’s consolidated financial statements. Users of this information should read the following in conjunction with those statements thereto.
Full details of the financial reports and operating results for the year ended August 31, 2020 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.
President & CEO
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 year ended August 31, 2020. 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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