Gatekeeper Reports $37.8M Revenue, $4.2M Operating Profit, 36% YoY Growth in FY 2024
December 20, 2024 8:20 AM EST | Source: Gatekeeper Systems Inc.
Abbotsford, British Columbia--(Newsfile Corp. - December 20, 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 audited financial results for the fiscal year ended August 31, 2024.
Highlights for Fiscal Year Ended August 31, 2024:
Revenue for the fiscal year ended August 31, 2024 was $37,810,957, compared to $27,848,838 for the same prior year comparable period, representing an increase of 36% and the highest fiscal yearly revenue in the Company's history;
Gross profit was $17,242,182, compared to $12,543,394 for the same prior year comparable period, representing an increase in gross profit of 37%. Gross profit as a percentage of revenue was 46% compared to 45% for the same prior year comparable period;
Operating profit was $4,194,543, compared to $2,692,107 for the same prior year comparable period, representing an increase of 56%;
Total comprehensive income was $1,899,718, compared to $2,887,078 for the same prior year comparable period. Total deferred income tax expense of $1,462,000 and total current income tax expense of $811,233 was recognized during the year ended August 31, 2024; and
At August 31, 2024, the Company had cash and cash equivalents of $6,721,250, working capital of $16,702,256, no borrowed-money debt, and approximately 93.6 million shares outstanding.
Highlights for Fiscal Fourth Quarter Ended August 31, 2024:
Revenue for the three months ended August 31, 2024 was $11,670,476, compared to $7,344,882 for the same prior year comparable period, representing an increase of 59% and the highest fiscal quarterly revenue in the Company's history; and
Operating profit for the three months ended August 31, 2024 was $776,422, compared to $742,189 for the same prior year comparable period, representing an increase of 5%.
Management Commentary
"Our financial performance in fiscal year 2024 was our strongest ever and marks our third consecutive year of profitability," commented Doug Dyment, President and CEO of Gatekeeper.
"During the year we installed approximately 9,000 Mobile Data Collectors for our customers on their buses, increasing the installed base to approximately 57,000. These MDCs record and store video from roughly 200,000 video devices on school and transit buses daily, which elevates the need for automated video analytics. Therefore, this year we established a data center for our AI-based video analytics hosted services offerings and school districts are now beginning to embrace our solutions for full-fleet, AI-assisted video analytics and evidence management.
We also developed and launched new AI-based video cameras, such as our Pedestrian Protector which helps the bus driver with blind spot detection when children are around the bus, or our Cell Phone Detection camera that uses video algorithms to automatically detect if a school bus driver is texting while driving. School districts are increasingly turning toward technology to improve school bus safety for school children, and we are innovating accordingly. Our transit segment witnessed very strong revenue growth, and we added new smaller transit customers throughout the year. We continue to invest in our people, and we are extremely proud of the exceptional customer service our employees delivered to our valued customers in 2024."
School bus segment
Gatekeeper's history is anchored in video and data solutions for school buses that help protect school children while travelling to and from school. The Company has well-established relationships with school districts throughout North America and has installed approximately 53,000 Mobile Data Collectors (MDCs) and more than 180,000 video devices on school buses for more than 3,500 school district customers. During the fiscal year 2024, school bus segment revenues were approximately $22.6 million, representing an increase of 20% over the prior year comparable period and approximately 60% of the Company's total revenues.
Transit segment
Gatekeeper entered the transit industry in 2018, and the Company's transit solutions have since contributed more than $40 million in revenue. The Company has installed approximately 4,000 MDCs and over 14,000 video devices on transit buses and trains for approximately 60 transit customers, with the Southeastern Pennsylvania Transportation Authority being the largest. During the fiscal year 2024, transit segment revenues were approximately $12.5 million, representing an increase of 76% over the prior year comparable period and approximately 33% of the Company's total revenues.
Service & Recurring
Gatekeeper has annual service contracts with certain customers as well as per-month, per-vehicle based subscription contracts with certain customers for specialized video analytics and hosted solutions. During the fiscal year 2024, service & recurring revenues were approximately $2.7 million, representing an increase of 41% over the prior year comparable period and approximately 7% of the Company's total revenues.
Selected Financial Information
| For the years ended | |||||||||||||||||||
| August 31, 2024 | August 31, 2023 | August 31, 2022 | August 31, 2021 | ||||||||||||||||
| Revenue | $ | 37,810,957 | $ | 27,848,838 | $ | 20,031,288 | $ | 17,231,080 | |||||||||||
| Cost of Sales | $ | 20,568,775 | $ | 15,305,444 | $ | 10,722,475 | $ | 9,715,096 | |||||||||||
| Gross Profit | $ | 17,242,182 | $ | 12,543,394 | $ | 9,308,813 | $ | 7,515,984 | |||||||||||
| Gross Margin Percentage | 46% | 45% | 46% | 44% | |||||||||||||||
| Expenses | $ | 13,047,639 | $ | 9,851,287 | $ | 8,244,400 | $ | 7,922,351 | |||||||||||
| Operating Income (Loss) | $ | 4,194,543 | $ | 2,692,107 | $ | 1,064,413 | $ | (406,367 | ) | ||||||||||
| Comprehensive Income (Loss) | $ | 1,899,718 | $ | 2,887,078 | $ | 1,929,180 | $ | (1,011,932 | ) | ||||||||||
| Earnings (Loss) per share - | |||||||||||||||||||
| Basic | $ | 0.02 | $ | 0.03 | $ | 0.02 | $ | (0.01 | ) | ||||||||||
| Diluted | $ | 0.02 | $ | 0.03 | $ | 0.02 | $ | (0.01 | ) | ||||||||||
| Total Assets | $ | 22,368,076 | $ | 19,609,579 | $ | 23,016,204 | $ | 14,401,634 | |||||||||||
| Total Non-Current Liabilities | $ | 687,236 | $ | 561,851 | $ | 1,578,025 | $ | 1,790,287 | |||||||||||
| Total Liabilities | $ | 4,205,999 | $ | 3,866,678 | $ | 10,470,109 | $ | 4,421,803 | |||||||||||
| Total Shareholders' Equity | $ | 18,162,077 | $ | 15,742,901 | $ | 12,546,095 | $ | 9,979,831 | |||||||||||
Full details of the financial reports and operating results for the fiscal year ended August 31, 2024, are described in the Company's audited 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 interconnect 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
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, 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.
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