About Gatekeeper Systems Inc. Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications. The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol "GSI", on the OTC Markets under the symbol "GKPRF", and on the Frankfurt Stock Exchange under the symbol "1GK". For more information visit: www.gatekeeper-systems.com. Gatekeeper Systems Provides Corporate Update for Second Fiscal Quarter V.GSI | 2 hours ago (via Thenewswire.ca) -Achieved record backorder of $2.7 million CDN in 2nd Quarter -Finalized launch plans of revenue sharing project in Jones County, GA -Increased total number of cameras shipped by 126% -Increased total number of mobile digital recorders shipped by 65% -Stop-arm camera evaluation sites increased to 16 -Completed engineering of new high-definition airborne recorder -Released high-definition in-car camera for law enforcement Abbotsford, BC April 5th, 2016 / TheNewswire / Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to provide an update to shareholders regarding recent developments within the Company's second fiscal quarter ended February 29, 2016 ("Q2"). The Company's base business continued to drive sales in Q2 with a record backorder climbing to approximately $2.7 million CDN. The backorder is primarily due to an increase in camera sales and mobile digital recorders of 126% and 65%, respectively, as compared to the same period in fiscal 2015. Stop-arm camera evaluation sites increased from fourteen to sixteen over the last quarter, representing 1,083 buses owned by various school districts. Gatekeeper is in the process of working with school districts, law enforcement, and judicial systems in an effort to close evaluation sites, moving to shared revenue contracts. The Company is in the final stages of executing on its first five-year revenue sharing contract (the "Contract") in the stop-arm camera business with Jones County School District in Georgia. Equipment is scheduled to be installed April 16th and 17th, 2016 with a Press Day scheduled for April 27th, 2016. Pursuant to the Contract, Gatekeeper will receive 50% of the revenue from each citation issued with 25% shared with the school district and 25% shared with Jones County. Stop-arm violation fines in Georgia are $350 USD for first time offence, $750 USD for second time offence and $1,000 USD for third time offence. The Company anticipates receiving proceeds from ticket citations prior to the end of the current fiscal year. There is an estimated 13 to 15 million stop-arm violations in the United States with legislations now passed in thirteen States that allow video enforcement technology to be used to issue citations. During Q2, the Company continued product development activity, completing a number of new products including the release of its new airborne high-definition recorder to meet requirements for a new contract received from defense contractor Stirling Computers Corporation for use on United States Air Force AC-130 Gunships. The Company also released its MX12 miniature sized high-definition forward facing camera designed for law enforcement as well as other vehicles. The new MX12 measures only two inches in length which is ideal for mobile applications where space is a premium. Doug Dyment, President and CEO commented, "Sales activity for Q2 was robust with backorders for our high-definition products, setting us up for growth in the third fiscal quarter. The Jones County School District stop-arm camera revenue sharing project is expected to go live May 2016. I'm thrilled with the response we are getting from our evaluation sites and look forward to working with these school districts through to revenue sharing contracts.
http://www.gatekeeper-systems.com/i.../Gatekeeper Presentation 022916-V011-CBLH.pdf Investor Presentation Here - great company to own on the TSX.V - it is my primary venture holding.
Big news!! Gatekeeper Achieves 81% Revenue and 107% Gross Profit Increase in Second Quarter ABBOTSFORD, BC--(Marketwired - April 12, 2016) - Gatekeeper Systems Inc. ('Gatekeeper' or the 'Company') (TSX VENTURE: GSI) (OTC PINK: GKPRF) (FSE: 1GK) announces that it has filed its financial statements and management's discussion and analysis for the three and six months ended February 29, 2016, available for viewing onwww.sedar.com. All figures are expressed in Canadian dollars unless otherwise stated. Financial Highlights Revenue during the three months ended February 29, 2016 increased by 81% and improved to $1,726,008 as compared to $955,574 during the three months ended November 30, 2015 Revenue during the six months ended February 29, 2016 increased by 33% and improved to $2,681,582 from $2,019,027 during the six months ended February 28, 2015 Total backorder as of February 29, 2016 was approximately $2.12 Million Gross profit during the three months ended February 29, 2016 increased by 107% and improved to $1,339,663 from $436,967 during the three months ended November 30, 2015 Gross margins during the six months ended February 29, 2016 improved to 50%, compared to 45% during the six months ended February 28, 2015, representing a 5% gross profit margin increase As of February 29, 2016, the Company had cash and cash equivalents of $828,838 and working capital of $1,978,343 Net income for the three months ended February 29, 2016 was $66,024, compared to a loss of $237,439 during the three months ended February 28, 2015 EBITDA for the three months ended February 29, 2016 was $73,014 EBITDA for the six months ended February 29, 2016 was ($498,541) BUSINESS UPDATE During the second quarter, the following notable events occurred: Achieved a record backorder of $2.7 million CDN during the month of February 2016, ending in a total backorder of approximately $2.12 million CDN at the end of the second quarter Finalized launch plans of revenue sharing project in Jones County, GA Increased total number of cameras shipped by 126% Increased total number of mobile digital recorders shipped by 65% Stop-arm camera evaluation sites increased to 16 Completed engineering of new high-definition airborne recorder Released high-definition in-car camera for law enforcement The Company's base business continued to drive sales in the second fiscal quarter with a record backorder climbing to an all-time high of approximately $2.7 million CDN. The backorder is primarily due to an increase in camera sales and mobile digital recorders of 126% and 65%, respectively, as compared to the same period in fiscal 2015. Stop-arm camera evaluation sites increased from fourteen to sixteen over the last quarter, representing 1,083 buses owned by various school districts. Gatekeeper is in the process of working with school districts, law enforcement, and judicial systems in an effort to close evaluation sites, moving to shared revenue contracts. The Company is in the final stages of executing on its first five-year revenue sharing contract (the "Contract") in the stop-arm camera business with Jones County School District in Georgia. Equipment is scheduled to be installed April 16th and 17th, 2016 with a Press Day scheduled for April 27th, 2016. Pursuant to the Contract, Gatekeeper will receive 50% of the revenue from each citation issued with 25% shared with the school district and 25% shared with Jones County. Stop-arm violation fines in Georgia are $300 USD for first time offence, $750 USD for second time offence and $1,000 USD for third time offence. The Company anticipates receiving proceeds from ticket citations prior to the end of the current fiscal year. There is an estimated 13 to 15 million stop-arm violations in the United States with legislations now passed in thirteen States that allow video enforcement technology to be used to issue citations. PRODUCT NEWS During the second quarter, the Company continued product development activity, completing a number of new products including the release of its new airborne high-definition recorder to meet requirements for a new contract received from defense contractor Stirling Computers Corporation for use on United States Air Force AC-130 Gunships. The Company also released its MX12 miniature sized high-definition forward facing camera designed for law enforcement as well as other vehicles. The new MX12 measures only two inches in length which is ideal for mobile applications where space is a premium. MOVING AHEAD The Company continues to plan for expanding sales in multiple markets including the transition of analog cameras to high-definition, stop arm camera market and body cameras. To date, Gatekeeper has been working towards the following initiatives: Working with strategic software and alliance partners to build Gatekeeper brands in law enforcement as well as other mobile markets Executing on revenue sharing programs with Gatekeeper's stop arm cameras and Ticket Infraction Management software Transitioning stop arm camera evaluation projects to revenue sharing contracts Expanding distribution of Gatekeeper's high-definition products in the Company's base business Continuing analysis on revolving lines of credit options for inventory and general operating capital Doug Dyment, President and CEO commented, "The second quarter revenue increase and profitability are indicators that we are successfully executing on our business strategy. During the second quarter we allocated more resources to our base business in an effort to achieve profitability while at the same time we continued to move forward finalizing software features for our Jones County revenue sharing contract in Georgia. The Jones County project is our first five-year revenue project. Our plan is to begin issuing citations in the third quarter this fiscal year. We have 16 other stop arm camera projects in the evaluation phase all of which are in various stages. We are in the process of negotiating revenue sharing contracts and hope to land several more contracts in the coming months. We also continue to move forward with our Sungard integration which was slowed because of technical requirements and resources required to complete and continue to work with Sungard to adjust the development schedule. We are bullish on our strategy to bring new capabilities to the law enforcement market with unique integration of body cameras, in-car video systems and Computer Aided Dispatch ("CAD") software." Dyment also added, "During the second quarter, we set a new record backorder of close to $3 million in purchase orders. As of February 29, 2016 we reduced the backorder to $2.12 million which gives us positive momentum going into the third fiscal quarter. We are in the process of analysing various non-dilutive financing options including lines of credit to assist with inventory and general operating expenses." Summary of Financial Results and Information Three months ended % change Six months ended % change February 29,2016 February 28,2015 February 29,2016 February 28,2015 Revenue $ 1,726,008 $ 1,087,172 59% $ 2,681,582 $ 2,019,027 33% Cost of Sales $ 823,312 $ 553,039 49% $ 1,341,919 $ 1,119,048 20% Gross Profit $ 902,696 $ 534,133 69% $ 1,339,663 $ 899,979 49% Expenses $ 881,126 $ 808,920 9% $ 1,915,715 $ 1,637,778 17% Operating Income (Loss) $ 21,570 $ (274,787 ) (109% ) $ (576,052 ) $ (737,799 ) (22% ) Net Income (Loss) for the period $ 66,024 $ (237,439 ) (128% ) $ (511,223 ) $ (673,319 ) (24% ) Earnings (Loss) per share - Basic $ 0.00 $ (0.01 ) $ (0.01 ) $ (0.02 ) Diluted $ 0.00 $ (0.01 ) $ (0.01 ) $ (0.02 ) February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Total Assets $ 3,003,596 $ 1,473,609 $ 3,003,596 $ 1,473,609 Total Liabilities $ 886,164 $ 697,495 $ 886,164 $ 697,495 Total Shareholders' Equity $ 2,117,432 $ 776,114 $ 2,117,432 $ 776,114 Financial Reports Full details of the financial reports and operating results for the three and six months ended February 29, 2016 are described in the Company's condensed interim consolidated financial statements with accompanying notes and related Management's Discussion and Analysis. These documents and additional information on Gatekeeper are available on SEDAR at www.sedar.com About Gatekeeper Systems Inc. A TSX-V Company since 2013, Gatekeeper Systems Inc. has provided total mobile video security solutions to over 3,500 customers and has installations in every state and province in North America. Customers include school districts, public transit, law enforcement and military. For more information visit: 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 February 29, 2016. 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. Doug Dyment President and CEO E: [email protected] Tel: 1.888.666.4833
This company is going to be an allstar on the TSXV - another $2.49 Million in orders. Market cap is ~$7Million total. Great growth and added a key piece to the board of directors. I am adding when possible. (Average Position is at 11.5 cents) Gatekeeper Completes $2.49 Million in Purchase Orders in First Two Months of 3rd Quarter Abbotsford, BC / TheNewswire / May 24th, 2016 - Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to announce that it has completed delivery obligations on 110 purchase orders valued at C$2.49 million in the first two months of the fiscal third quarter which ends May 31, 2016. Gatekeeper has seen an increased demand starting late in the first fiscal quarter for its high definition mobile video platform with AUTOWAKE(TM), a unique feature for controlling the power state of its mobile video devices from remote locations. The result has been record sales and a profitable second quarter. 3,655 cameras shipped in the in first two months of the third quarter 2016, already up 24% from 2,949 shipped the entire third quarter 2015. At 1,021 units shipped in the first two months of the quarter, high definition recording platform shipments are already 11% higher than the 919 shipped during the entire third quarter of 2015. President and CEO Doug Dyment stated, "We are off to a fantastic start to our 3rd quarter. We have already exceeded last year's quarterly sales result after just two months of the third quarter. We have completed shipments of $2.49 million to a diverse group of customers which shows strength in our sales funnel. We continue to attract new customers that are choosing our high definition platform as they transition their mobile video recorders to a high definition platform." About Gatekeeper Systems Inc. Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications. The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are listed on the TSX Venture Exchange under the symbol "GSI", on the OTC Markets under the symbol "GKPRF", and on the Frankfurt Stock Exchange under the symbol "1GK". For more information visit: 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. Copyright (c) 2016 TheNewswire - All rights reserved.
STOP ARM Program Comparable - Gwinnett County, Georgia. $$$ Just Imagine - Redflex has a Deal with Gwinnett County Public School District with 300 Buses Equiped with Cameras and is Pulling in $3 Million Dollars in STOP ARM Violations Already.....Impressive! PS> Remember that GSI is in the final stages of executing on its first five-year revenue-sharing contract in the stop-arm camera business with Jones County School District in Georgia. Equipment is scheduled to be installed April 16 and April 17, 2016, with a press day scheduled for April 27, 2016. Pursuant to the contract, Gatekeeper will receive 50 per cent of the revenue from each citation issued with 25 per cent shared with the school district and 25 per cent shared with Jones county. Stop-arm violation fines in Georgia are $300 (U.S.) for a first-time offence, $750 (U.S.) for a second-time offence and $1,000 (U.S.) for a third-time offence. The company anticipates receiving proceeds from ticket citations prior to the end of the current fiscal year. The Jones County School District stop-arm camera revenue-sharing project is expected to go live May, 2016. I'm thrilled with the response we are getting from our evaluation sites and look forward to working with these school districts through to revenue-sharing contracts." The Jones county project is our first five-year revenue project. Our plan is to begin issuing citations in the third quarter this fiscal year. We have 16 other stop-arm camera projects in the evaluation phase all of which are in various stages. We are in the process of negotiating revenue-sharing contracts and hope to land several more contracts in the coming months. We also continue to move forward with our Sungard integration which was slowed because of technical requirements, and resources required to complete and continue to work with Sungard to adjust the development schedule. We are bullish on our strategy to bring new capabilities to the law enforcement market with unique integration of body cameras, in-car video systems and computer-aided dispatch (CAD) software.
Good start to the quarter with over 800k in sales in just 7 days! Gatekeeper Reports $830,000 in Purchase Orders to Begin Fourth Fiscal Quarter (via Thenewswire.ca) Abbotsford, BC / TheNewswire / June 8th, 2016 - Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to report that it has entered the fourth fiscal quarter ending August 31, 2016 with approximately $830,000 CDN in backorders received up to end of business day June 7th, 2016. The purchase orders represent a broad range of customers throughout the United States and Canada, and span Gatekeeper's high-definition mobile video products including wireless connectivity devices, integrated GPS and vehicle sensors. President and CEO Doug Dyment stated, "Sales in the first week of the fourth quarter continue to be brisk on the back of the Company's prior press release where we reported completion of approximately $2.49 Million in projects for the first two months of the third quarter putting us on track for a record third quarter. Sales of approximately $830,000 CDN as of June 7th are a strong indication that fourth quarters sales could be another record quarter. Our sales funnel is growing along with increased interest in our products across all our verticals." About Gatekeeper Systems Inc. Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications. The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol "GSI", on the OTC Markets under the symbol "GKPRF", and on the Frankfurt Stock Exchange under the symbol "1GK". For more information visit: 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. Copyright (c) 2016 TheNewswire - All rights reserved.
Gatekeeper Reports $1.686 Million CDN In Backlog Orders (via Thenewswire.ca) Abbotsford, BC / TheNewswire / June 21th, 2016 - Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to report that its backlog of orders (the "Sales Orders") has grown from approximately $830,000 CDN, as reported in a press release on June 8th to approximately $1.686 million CDN as of end of business on June 21st, 2016. Included in the Sales Orders are the Company's high-definition products including its four and eight camera mobile video solutions integrated with wireless, GPS and vehicle sensors. Gatekeeper G4 incident management software is bundled with each system providing end users with an application that allows them to navigate through hundreds of hours of recorded video to find, save and share video that is used as evidence by school officials or law enforcement. The Company recently closed its debt facility with a maximum draw down of $1.5 million USD which will assist the Company in securing inventory and meeting scheduled shipments for delivery, which is anticipated to occur within the next three weeks. Sales Orders that require longer ship dates will be shipped prior to the end of the fiscal fourth quarter ending August 31, 2016. President and CEO Doug Dyment commented, "Our backlog of orders continues to increase early in the fourth quarter. We have activated marketing strategies that are targeting key clients which, when synchronized with our outside sales team's business development efforts, have continued to result in positive sales momentum." About Gatekeeper Systems Inc. A TSX-V Company since 2013, Gatekeeper Systems Inc. has provided total mobile video security solutions to over 3,500 customers and has installations in every state and province in North America. Customers include school districts, public transit, law enforcement and military. For more information visit: 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. Copyright (c) 2016 TheNewswire - All rights reserved.
TOP IDEAS: Sales of Gatekeeper Systems Inc. (TSXV: GSI) high-definition imaging systems and security solutions for mobile applications are gaining momentum and profits are beginning to emerge. It appears 2016 is shaping up to be a strong year for revenue growth at Gatekeeper Systems Inc. (TSXV: GSI - $0.11), but the Company’s stock price is still trading near its lows. Therefore, we see a good small cap growth investment opportunity at a value price. That said, Gatekeeper Systems Inc. has become one of Investorfile’s Top Ideas. Based in Abbotsford BC, Gatekeeper Systems Inc. is a leading provider of rugged high-resolution video security and safety systems for mobile applications, including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems and airborne digital recording systems for military applications. Gatekeeper’s value proposition goes beyond the sale of video devices but, rather, the integration of hardware and software to provide systems that derive significant value from the data collected from installed mobile cameras. As such, Gatekeeper’s industry-leading Incident Management Software synchronizes real-time video, mapping, audio and vehicle sensors to create a total picture of operations. The Company’s photo enforcement technology and auto-ticketing software protect students on buses, school and parking zones by deterring bad driving habits. Gatekeeper is a brand leader in outfitting school buses in North America with mobile video systems. Gatekeeper’s technology platforms are used for recording incidents inside and outside school buses. For recording inside school buses, the platform integrates high definition video with GPS, voice, live streaming, WIFI and vehicle sensors recorded to an onboard military-grade, high-definition digital video recorder. The software synchronizes video, date and time, voice, vehicle sensors such as activation of stop arms, signals, brake and warning lights, door switches or other electronic sensors. The synchronized data is then displayed on Gatekeeper’s video management software, allowing the navigation of hundreds of hours of recorded video to find, save and share as evidence by school officials or law enforcement should a security or safety incident occur. There are approximately 550,000 school buses operating in the USA with an average of 25,000 to 50,000 school buses manufactured each year according, to Gatekeeper. Recent legislation in some states and provinces allow authorities to use video from a school bus video system as evidence to issue a citation for stop arm violations which occur when buses are stopped, the stop arm is engaged and/or children are getting on or off the school bus. Gatekeeper has developed a high-speed license plate reading system which is attached to the outside of the school bus and records video evidence required to prosecute stop arm violators. With that, the Company developed a cloud-based software application with the trade name TIM (Ticket Infraction Management) system that connects to the vehicle owner database and manages the entire citation cycle for stop arm infractions. Gatekeeper has marketed its school bus stop-arm violations solution to school boards and law enforcement districts under a recurring revenue sharing model based on a split of the dollar amount of citations issued and collected. The average citation is usually between US $250.00 and US$500.00. The Company said it is estimated that over 13 million stop arm violations occur in the United States annually. Gatekeeper’s stop-arm enforcement application is currently installed and in pilots on school buses in 16 school districts. The Company anticipating recurring revenue streams from its stop-arm business to begin within its current fiscal year. While to date the majority of sales are in the school bus market, Gatekeeper’s products are scalable for transit buses, law enforcement vehicles and officers, aircraft, taxis and general fleet vehicles; maritime applications including coast guard patrol boats and navy vessels, as well as homeland security and defence applications, including special operations. As such, the Company recently launched several new products including: Body cameras for law enforcement; high-definition in-car video systems for law enforcement vehicles and high-definition airborne digital recorders for aerospace applications that will meet certain military standards, including electronic magnetic interference. Over the past nine months, the Company has implemented new sales and marketing strategies to strengthen Gatekeeper’s brand awareness while adding distribution partners to complement its direct sales team. As a result, revenues have begun to grow more significantly. The last quarter reported (which was fiscal Q2 ending on February 29, 2016), the Company’s revenues jumped 59% to C$1.73 million. But that may be was just the beginning. Gatekeeper’s Management has provided guidance that Q3 sales should set a Company record, coming in at over C$2.49 million, and Q4 sales could be another record sales quarter. Gross margins on sales average about 50%. Approximately 90% of Gatekeeper’s revenues are derived from customers in the USA. With the increase in revenues the Company reported a slight profit in fiscal Q2. As revenues continue to rise in Q3 and Q4, profitability at Gatekeeper could become more pronounced. As such we feel Gatekeeper’s operations are at an inflection point that makes the Company’s stock an attractive investment opportunity. We estimate that for fiscal 2017, Gatekeeper could average a C$3 million quarterly revenue run rate (C$12 million annually), generating C$2 million of earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year. Based on this forecast and given the current capital structure, the Company’s stock (at $0.11) trades at a valuation under 3.5 times Enterprise Value (EV) to EBITDA. This is a very inexpensive price for a growth company. The Investorfile blog recommends that small cap investors should take advantage of the current stock valuation levels and begin accumulating shares of Gatekeeper up to a price of $0.25. Assuming an average accumulation cost base of $0.18, a stock position in this Company can be purchased for under six times EV/EBITDA (based on our forecast), which is a value-wise small cap investment opportunity. Of course, over time we feel that Gatekeeper will exceed our annual financial projection and therefore the stock price will exceed our accumulation price target of $0.25 for more upside over the longer term. As of February 2016 fiscal Q2, the Company had a strong balance sheet with cash on hand of $700,000, no debt and a working capital ratio of over 3:1. Management and directors own about 15% of the Company shares. The BC Discovery Fund, an institutional investor, has an 8% ownership position in Gatekeeper. The Company currently has 63.3 million shares outstanding. Of note, about 12 million share purchase warrants (from a prior equity financing) are outstanding at strike price of $0.25. The Company's website www.gatekeeper-systems.com Author's share ownership disclosure: GSI - Yes
Out at 0.175 - nice 50% gain on this one for me. Gatekeeper Achieves 113% Revenue and 147% Gross Profit Increase in Third Quarter (via Thenewswire.ca) Abbotsford, BC / TheNewswire / July 12th, 2016 - Gatekeeper Systems Inc. ('Gatekeeper' or the 'Company') (TSX.V:GSI; OTC: GKPRF; FSE: 1GK) announces that it has filed its financial statements and management's discussion and analysis for the three and nine months ended May 31, 2016, available for viewing on www.sedar.com. All figures are expressed in Canadian dollars unless otherwise stated. Financial Highlights -Revenue during the three months ended May 31, 2016 increased by 113% and improved to $3,103,333 as compared to $1,455,537 during the three months ended May 31, 2015; -Revenue during the nine months ended May 31, 2016 increased by 66% and improved to $5,784,915 from $3,475,564 during the nine months ended May 31, 2015; -Gross profit during the three months ended May 31, 2016 increased by 147% and improved to $1,541,440 from $623,911 during the three months ended May 31, 2015; -Gross margins during the nine months ended May 31, 2016 improved to 50%, compared to 44% during the nine months ended May 31, 2015, representing a 6% gross profit margin increase; -As of May 31, 2016, the Company had cash and cash equivalents of $1,735,738 and working capital of $2,276,793; -Net income for the three months ended May 31, 2016 was $322,078, compared to a loss of $215,984 during the three months ended May 31, 2015; and -EBITDA for the three months and nine months ended May 31, 2016 were $362,154 and ($136,765), respectively. BUSINESS UPDATE During the third quarter, the following notable events occurred: -Secured $1.5 million USD non-dilutive credit facility; -Issued first citation under five-year revenue sharing contract at Jones County, GA; -Increased total number of cameras shipped by 51% compared to same period 2015; -Increased total number of mobile digital recorders shipped by 35% compared to same period 2015; -Stop-arm camera evaluation sites increased to 20 representing approximately 5,000 buses; -Completed new features for Traffic Infraction Management cloud software; and -Launched stop arm camera programs in Washington and Illinois. The Company's base business continued to drive sales in the third fiscal quarter with a record sales climbing to over $3.1 million CDN. Sales increase is primarily due to an increase in camera sales and mobile digital recorders of 51% and 36%, respectively, as compared to the same period in fiscal 2015. Stop-arm camera evaluation sites increased from sixteen to twenty over the last quarter, representing 1,543 buses owned by various school districts. Gatekeeper is in the process of working with school districts, law enforcement, and judicial systems in an effort to close evaluation sites, moving to shared revenue contracts. The Company executed on its first five-year revenue sharing contract (the "Contract") in the stop-arm camera business with Jones County School District in Georgia. Equipment was installed April 16th and 17th, 2016 with a Press Day on April 27th, 2016. Pursuant to the Contract, Gatekeeper will receive 50% of the revenue from each citation issued with 25% shared with the school district and 25% shared with Jones County. Stop-arm violation fines in Georgia are $300 USD for first time offence, $750 USD for second time offence and $1,000 USD for each subsequent offence. The Company anticipates receiving proceeds from ticket citations prior to the end of the current fiscal year. There is an estimated 13 to 15 million stop-arm violations in the United States with legislations now passed in thirteen States that allow video enforcement technology to be used to issue citations. PRODUCT NEWS During the third quarter the engineering team completed the following: -TIMTM Private Portal went live and includes the following features: -Creation of incidents -Review of evidence by police -Printing citations -Mailing citations -Tracking the status of citations -TIMTM Public Portal for violators to review the evidence of the stop arm violations and pay the fine or request a court date went live -In-house Hosting Infrastructure for TIMTM Cloud Based Incident Processing was fully set up. All networking was put in place and the high speed internet was upgraded with multiple IP address capability, redundant fail over and backup systems, providing the company a hosting environment built on a reliable backend infrastructure for the stop arm camera business -First stop-arm violation citation was issued in Jones County -The result of the above is that the company went live in May 2016 with its Jones County stop arm camera project proving a total incident management solution for evidence capture, approval, citation generation and collections MOVING AHEAD The Company continues to plan for expanding sales in multiple markets including the stop-arm camera and body camera markets, as well as the transition of analog cameras to high-definition. To date, Gatekeeper has been working towards the following initiatives: -Working with strategic software and alliance partners to build Gatekeeper brands in law enforcement as well as other mobile markets; -Executing on revenue sharing programs with Gatekeeper's stop arm cameras and Ticket Infraction Management software; -Transitioning stop arm camera evaluation projects to revenue sharing contracts; and -Expanding distribution of Gatekeeper's high-definition products in the Company's base business. Doug Dyment, President and CEO commented, "The third quarter revenue increase and profitability are indicators that we are successfully executing on our business strategy. During the third quarter we continued to allocate more resources to our base business in an effort to achieve profitability while at the same time we continued to move forward finalizing software features for our Jones County revenue sharing contract in Georgia. The Jones County project is our first five-year revenue project. We executed on our plan to begin issuing citations before the summer break. We currently have 20 additional stop-arm camera projects in the evaluation phase, and are in the process of negotiating several revenue sharing contracts." Dyment also added, "During the third quarter we were successful at executing delivery of products caused from the large backorder, which is directly attributed to the efforts of all Gatekeeper employees who have showed a strong commitment to the Company for many years. On behalf of management and our shareholders we thank them for their efforts and look forward to growing the Company together." Summary of Financial Results and Information Three months ended % change Nine months ended % change May 31, May 31, May 31, May 31, 2016 2015 2016 2015 $ $ $ $ Revenues 3,103,333 1,455,537 113% 5,784,915 3,475,564 66% Cost of Sales 1,561,893 831,626 88% 2,903,812 1,951,674 49% Gross Profit 1,541,440 623,911 147% 2,881,103 1,523,890 89% Operating Expenses 1,035,642 842,549 23% 2,951,357 2,480,327 19% Operating Income (Loss) 505,798 (216,638) (333%) (70,254) (956,437) (93%) Net Income (Loss) for the period 322,078 (215,984) (249%) (189,145) (889,303) (79%) Basic and Diluted Loss Per Share 0.01 (0.01) 0.00 (0.02) May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Total Assets 3,362,720 1,753,296 3,362,720 1,753,296 Total Liabilities 922,218 1,031,458 922,218 1,031,458 Total Shareholders' Equity 2,440,502 721,838 2,440,502 721,838 Financial Reports Full details of the financial reports and operating results for the three and nine months ended May 31, 2016 are described in the Company's condensed interim consolidated financial statements with accompanying notes and related Management's Discussion and Analysis. These documents and additional information on Gatekeeper are available on SEDAR at www.sedar.com. About Gatekeeper Systems Inc. A TSX-V Company since 2013, Gatekeeper Systems Inc. has provided total mobile video security solutions to over 3,500 customers and has installations in every state and province in North America. Customers include school districts, public transit, law enforcement and military. For more information visit: 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, 2016. 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. Copyright (c) 2016 TheNewswire - All rights reserved. C
GSI is another great EPS growth story in the making. Investors should be flocking to any company that can turn a profit because in essence that is what Stocks, Business and Capitalism is based on, MAKING MONEY! If your company can't make money after a certain period of time, throw in the towel and move on. Exploration companies for minerals are great for a pop right now, but only worth holding long term if there's a feasible discovery from the very start or if times are good and money can flow into good and bad companies.
I am hoping a lull without any news will allow re-entry at the 0.15 price point. There are too many things going right for this company - and the current numbers do no reflect the revenue sharing agreement that is in place in Jones County.
