Annual meeting report (as fast as I could write!) Bring everyone to date including on 2020 business, not just 2019.
Gatekeeper had best year ever!
Slight decrease in gross margins as Covid hit. (See more below)
TD did a lot of due diligence before offering line of credit. Need to show profitability. Not easy to pass their stress tests.
About PP financing... Group in US reached out. As they moved forward, they had compliance hoops to deal with. They asked for extensions. GSI put their stick in the sand. That group is still at the table, GSI still talking to them. Doug Dyment met with the group face to face on east coast.
Business issues. GSI evolved in strong position. GSI wants to monetize data they collect. 28 000 cameras with SEPTA. GSIhopes to land more transit contracts in future. GSI hopes to get more business from SEPTA. SEPTA indicated significant upgrade this year --one account with many legs to it. SEPTA is like many customers wrapped into one.
GSI provides end-to-end solutions, paas --new to 2020, catching on with customer base. AI used to make smarter decisions. Automatically record alarms with no human intervention. Itss stand-alone (like Vancouver gold tour) mobile application, not only transit, new health compliance business.
GSI between 8-13% is recurring business. Around 3 million last year.
GSI first quarter is looking robust, Coming out really fast. Still will be some bumpiness in quarterly results. Encourage investors to look at annual rather than q/q. Repeated q1, which is their slowest, looks strong this year.
What keeps Doug up at night? 2020 -lots of things, Covid environment. GSI pulled things together. Able to deliver based on budget and throw more money to the bottom line. Doug sleeping much better now. Turned corner on profitability. Cannot be losing money. Show top-line growth. Next are of growth: look at capital. Properly capitalized. No dilution until time is right.
Working on a contract with one of the largest transportation companies in America. But you won't find out who! So don't ask for weekly news releases.
Pursuing any cp or cn train at all? Not going for this right at the moment it is always a possibility.
Confirm they are in advanced talks with second transit authority.
GSI has seen some slowdown in some transit and school bus accounts but has seen others doing well. They see their internal goals in 2021 being achieved.
international presence : focused on current projects in North America. Might look for new alliances. Briefly mentioned Dubai but not particularly enthusiastically.
How to see improved margins --hit by Covid and us trade war with China (down 7%). Didn't feel they could raise prices in current environment so attacked their expenses. Septa account had one project with lower margins. Gross margin for itss is significantly north of average gross margins. Hopefully with Biden getting in will help. Nevertheless, still profitable at 40% GM.
Any other applications for itss platform. Company wants to stay laser focused. But ITSS platform has ability to collect multiple forms of data. Will eventually be valuable.
''Is GSIin a position to take on other big contracts from transit. Absolutely. In a position to take other contracts. Can't imagine any other accounts except New York that would be more difficult than Septa.