Post by
Ciao on Dec 20, 2022 2:51pm
AGM Q&A
Answers are paraphrased.
1. How much of the Q4 sales were to National Express?
Over $1M
2. What is the status of the ALE trials, ie. TTC?
ALE is just starting, legislation needed to be passed in each state, had a couple of proof of concepts that have gone very well, in a holding period, waiting for transit agencies (?) to put in legislation
3. Has there been any setbacks in regard to ALE due to legislative pushback?
No, just takes time for legislation to be passed
4. What is the progress with getting SEPTA contracts in other cities?
SEPTA is unique tier 1 transit account, takes an enormous of work to be successful, working on a number of them right now, strategy is to try to attack more tier 1, but also tier 2 in smaller agencies as there is significant rev there as well
5. SEPTA uses video for evidence management, are schools doing the same and is this a trend?Starting to see more school districts are using video if warranted, gave some examples of needs on criminal behaviour by drivers or false accusations against drivers
6. Where do you growth in 2023 coming from, which products?We see growth from mainline products from PAAS model, starting to see in K-12 market, project significant growth there, also want to go after transit market, SEPTA opens up market, getting requests from global train system integrators, manufacturers
7. COVID may have affected budgets for school bus contracts, do you seeing things getting back to normal in 2023?Challenges is shortage of drivers in K-12 and transit, during and after COVID, less buses available, affects operational money flow, still projecting pretty impressive top line numbers in 2023, don’t think we’ll get back to normal, but heading in right direction
BTW, I asked questions 2, 4, 6 and 7
Doug's closing remark: able to scale rev and net income in Q4 without increasing cost, don’t want to dilute company with financing at this level, use cash flow to support the growth, stay disciplined with this strategy.
2022 rev. of $20M is just shy of the record $20.3M in 2020. I think we were all pleasantly surprised by the strength in Q4 as the share price appeared to forecast complete doom and gloom, not only for Q4 but beyond as well. Doug’s comments are quite bullish as well, so if and when the markets recover, GSI should have a disproportionate rate of recovery.
Comment by
Tropicalsun on Dec 20, 2022 3:31pm
Thanks for posting Ciao, Dougs answers seem reasonable, wish he could have provided a little more information sometime ago as to why the ALE was taking so long to develope into a potential contract. Crazy times we live in on planet earth, what does 2023 bring for us all?
Comment by
Ciao on Dec 20, 2022 3:43pm
No worries, glad to help the community. I also recall your name from the Ceapro forum(?) several years ago.
Comment by
ranman on Dec 20, 2022 7:54pm
Great questions Ciao. I wonder why we have seen little if any insider buying. I know it's not the sort of question to ask at an AGM but we shareholders would like to know the answer. I'll admit a lot of what I heard makes me want to buy even more shares. But why are the insiders not interested?
Comment by
Tropicalsun on Dec 20, 2022 10:41pm
ranman, great question that has been brought up from time to time on this board. I don't recall if any shareholder has asked Doug this question directly, please feel free to tackle this one. I can tell you that Doug is quite easy to talk with.
Comment by
ranman on Dec 21, 2022 4:30pm
Tropicalsun, Im sure I'd get a well scripted, out of the box answer. The ressponse will satisfy the worried shareholder and I will hang up feeling warm and fuzzy. That's my expectation. Hm, I guess my post was rhetorical afterall. Ignore me. LOL
Comment by
Tropicalsun on Dec 21, 2022 5:18pm
No worries, I listened to the AGM audio call last night and thought it was quite good. I will take on the task.
Comment by
NineLives on Dec 20, 2022 4:23pm
A big thank you Ciao. You went to a lot of trouble to post all that, much appreciated.