GSI - speaking of Canadian companies
Recent business highlights:
- Announced transit contracts worth over $7 million, including for: a video services contract extension with SEPTA, a new transit customer in Oregon, a new transit customer in Canada, and factory-installed paratransit video systems;
- Announced school bus video and subscription contracts worth over $5.4 million, including for: bus fleets of 300 in Florida, 200 in Missouri, 100 in Indiana, 100 in Virginia, 70 in Nebraska, 51 in California, Student Protector installations in Nevada, 360 Surround Vision installations in Florida, and interior video for several school districts in Canada;
- Video management and hosted service subscriptions grew from approximately 300 to 3,500 during this fiscal year;
- Transit team expanded with a particular focus on the Federal Railroad Administration (FRA) mandate;
- Revenue for the three-month period ended May 31, 2025, was the Company's highest-ever fiscal third quarter revenue, increasing 16% to $7.5 million, compared to $6.5 million in the prior year;
- Revenue for the nine-month period was $20.7 million, compared to $26.1 million in the prior year. The prior year nine-month revenue included a large transit contract of $9 million in addition to the Company's regular business (see press release dated January 4, 2024). When excluding that large contract, the Company's regular business grew approximately 21% for the nine-month period ended May 31, 2025;
- Gross profit for the three and nine month periods was $3.7 million and $9.1 million respectively. Gross margin as a percentage of revenue for the three and nine months periods was 49% and 44%, respectively, compared to 42% and 48% for the same prior year comparable periods;
- Operating expenses for the three and nine month periods were $3.7 million and $10.5 million, respectively, as compared to $3.2 million and $9.2 million for the same prior year comparable periods. Operating expenses increased in the current period due to an increase in selling and marketing expenses and an increase in research and development costs associated with new product development;
- Operating loss for the three and nine month periods was $0.1 million and $1.4 million respectively, as compared to operating loss of $0.4 million and operating profit of $3.4 million for the same prior year comparable periods;
- Total comprehensive loss for the three and nine month periods was $0.4 million and $0.8 million respectively, as compared to loss of $0.5 million and income of $3.1 million for the same prior year comparable periods;
- At May 31, 2025, the Company had working capital of $15.6 million and no borrowed-money debt; and
- Subsequent to the period ended May 31, 2025, the Company completed a bought-deal brokered financing generating gross proceeds of $11.5 million and increased its Letter of Credit Facility with TD Bank to $7.5 million to accommodate potential inventory purchases and performance bond guarantees for large projects.
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