Intermap Technologies Reports 2012 Fourth Quarter and Year-End Financial Results

2012 revenue increases 15% to $28M
Adjusted EBITDA improves $10M to positive $5M
$15 million of backlog for delivery in 2013

DENVER, March 11, 2013 /PRNewswire/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2012. A conference call will be held today, March 11th, at 4:30 p.m. Eastern Time to discuss the results.

All amounts in this news release are in United States dollars unless otherwise noted.

In 2012, Intermap's strategy of "solutions selling" drove an increase in revenue across all of the Company's product lines, resulting in three consecutive quarters of profitability for the first time in the Company's history.

"Our solutions selling approach has made it clear to us that our customers are focused more on finding solutions to their unique geospatial needs, and not on the type of sensor used to provide the requisite data," said Todd Oseth, President & CEO of Intermap. "Our 3D business intelligence applications, coupled with our multi-sensor approach for creating foundation geospatial information (i.e. radar, LiDAR, satellite, photo, etc.) provides the optimum solution for our customers. Our easy to use cloud-based software applications combined with our industry leading data aggregation capabilities give us a distinct advantage in the marketplace."

Mr. Oseth added, "The introduction of our "Pro" series of software applications during 2012 generated new customers, increased revenues, and expanded our sales pipeline. Our Pro series SaaS-based applications and web-services offerings are a key element of our solutions approach of building a complete Spatial Data Infrastructure for our customers. We've seen the success of this approach during 2012 including our major win in Southeast Asia, and we are anticipating continued success with our solutions selling worldwide in 2013."

Financial Review

"A key metric that we use to measure the progress of our business is adjusted EBITDA. We were successful in delivering a substantial improvement in this metric on a year-over-year basis in 2012 and we expect to see continued improvement as we progress through 2013. Adjusted EBITDA exceeded $2.5 million in each of the last three quarters of the year. A major contract totaling $14.5 million was announced in January of this year and produced the majority of the contract backlog of $14.8 million. The revenue from this contract is expected to be recognized in its entirety during 2013. Our sales pipeline has grown for this coming year driven by commercial applications including, energy, advertising, and risk management, as well as new mapping services contracts both domestically and internationally," said Mr. Oseth.

For the fourth quarter 2012, Intermap reported total revenue of $7.6 million, a 58% increase from $4.8 million last year. Contract services revenue in the fourth quarter increased 26% to $2.9 million from $2.3 million last year. Data licensing revenue increased 88% to $4.7 million from $2.5 million last year. As of December 31, 2012, there remained $14.8 million in backlog contracts ($14.3 million in contract services, and $0.5 million in data licensing contracts) to be recognized in future periods. Fourth quarter net earnings improved significantly to $1.0 million, or $0.01 per share, compared with a net loss of $4.5 million, or ($0.06) per share last year.

Fourth quarter adjusted EBITDA, a non-GAAP and IFRS financial measure, was $2.7 million, compared with a loss of $2.0 million last year. Adjusted EBITDA excludes restructuring costs, share-based compensation expense, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.

For the fourth quarter 2012, personnel expense was $2.9 million, a 22% decrease from $3.7 million last year. The decrease was primarily due to workforce reductions associated with the Company's restructuring activities during 2011.

For the fourth quarter 2012, purchased services and materials expense was $1.3 million, a 48% decrease from $2.5 million last year. The decrease was primarily due to a decrease in job and subcontractor expenses associated with a large contract services project in Southeast Asia during 2011, with no similar project at the same stage of completion during the current year. Purchased services and materials includes (i) aircraft related costs (ii) professional and consulting costs (iii) third-party support services related to the collection, processing and editing of the Company's airborne data collection activities, and (iv) software expenses (including maintenance and support).

For the year ended December 31, 2012, Intermap reported total revenue of $27.8 million, a 15% increase from $24.1 million for 2011. Contract services revenue for the year increased 10% to $11.9 million from $10.8 million last year. Data licensing revenue increased 20% to $15.9 million from $13.3 million last year. For the year 2012, net loss was reduced to $2.9 million, or ($0.04) per share, compared with a net loss of $13.6 million, or ($0.19) per share last year.

Adjusted EBITDA for the year improved by $9.5 million to positive $5.0 million, compared with a loss of $4.5 million for 2011.

For the year ended December 31, 2012, personnel expense was $12.9 million, a 24% decrease from $17.0 million last year. The year-over-year decrease is primarily due to workforce reductions associated with the Company's restructuring activities during 2011. The amount shown for 2011 includes $1.3 million of severance and termination expenses.

For the year ended December 31, 2012, purchased services and materials expense was $7.4 million, a 27% decrease from $10.2 million last year. Increased job and subcontractor expenses associated with a large contract services project in Southeast Asia during 2011 was primarily the reason for the difference in this category of expenditures on a year-over-year basis.

The cash position of the Company at December 31, 2012 (cash and cash equivalents) was $2.1 million, compared to $0.6 million at December 31, 2011. Amounts receivable and unbilled revenue at December 31, 2012 was $8.4 million, compared to $6.4 million at December 31, 2011. Working capital improved to $1.9 million at December 31, 2012, compared to ($1.0) million at December 31, 2011 (see "Intermap Reader Advisory" below).

Detailed financial results and management's discussion and analysis can be found on SEDAR at: www.sedar.com.

Fourth Quarter Business Highlights

The Company announced a $2.3 million and related $0.5 million 3D business intelligence solutions contact during the quarter. The combined contracts are for the initial phase of a program where Intermap will design, build, and deliver 3DBI solutions for an Asia based customer. The solutions will enable a national spatial information database designed to be delivered via the cloud, or on an appliance in the client's data center. The initial phase includes the sale of NEXTMap data to be used for area of interest analysis and feature extraction. A follow-on phase(s) is expected to be used for the creation of custom data layers, the fusion of specialized data sets, and the creation of a RiskProTM web-based application.

The Company announced a $450,000 NEXTMap licensing contract for selected areas in North America. The NEXTMap data was purchased by a company that specializes in the property insurance industry for use within their claims management solutions.

Subsequent to year-end, in January 2013 the Company announced a $14.5 million contract to provide defined geospatial solutions to an international customer. Under the terms of the award, Intermap was selected to provide elevation and imagery related information for identified areas in Southeast Asia. The Company will use its proprietary airborne radar technology to collect and process the 3D digital models of the selected areas.

As of March 11, 2013, there were 79,414,013 common shares outstanding.

Important factors, including those discussed in the Company's regulatory filings (www.sedar.com) could cause actual results to differ from the company's expectations and those differences may be material. Detailed financial results and management's discussion and analysis can be found on SEDAR at: www.sedar.com.

Conference Call

Intermap will host a conference call today, March 11, 2013, at 4:30 pm EST (2:30pm MST).

To participate in the call, please dial +1-647-427-7450 or 1-888-231-8191 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through March 18, 2013. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 10795651 to listen to the rebroadcast. The call will also be available on Intermap's website at http://www.intermap.com/investors.aspx for replay.

About Intermap Technologies

Headquartered in Denver, Colorado - Intermap (www.intermap.com) is an industry leader in geospatial solutions on demand. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of GIS data into a single source, Intermap is able to provide geospatial solutions for customers in diverse markets around the world that solve today's complex geospatial challenges.

Adjusted EBITDA is not a recognized performance measure under GAAP and does not have a standardized meaning prescribed by IFRS. The term EBITDA consists of net income (loss) and excludes interest, taxes, depreciation, and amortization. Adjusted EBITDA is included as a supplemental disclosure because management believes that such measurement provides a better assessment of the Company's operations on a continuing basis by eliminating certain non-cash charges and charges that are nonrecurring. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss).

Intermap Reader Advisory

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

Reference is made to the Company's audited Consolidated Financial Statements for the years ended December 31, 2012 and 2011, together with the accompanying notes, which includes a going concern disclosure and such disclosure remains applicable as of the date of the financial statements included herein.

             

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
(In thousands of United States dollars)

      December 31, December 31,
      2012 2011
           
Assets      
           
Current assets:      
  Cash and cash equivalents  $ 2,055  $ 597
  Amounts receivable   5,735   5,512
  Unbilled revenue   2,709   865
  Work in process   10   26
  Prepaid expenses   625   616
        11,134   7,616
             
Property and equipment    3,703   5,273
Data library    13,829   18,439
Intangible assets    235   290
Deferred tax assets    -   5
       $ 28,901  $ 31,623
             
Liabilities and Shareholders' Equity        
             
Current liabilities:        
  Accounts payable and accrued liabilities   $ 4,747  $ 5,097
  Convertible note    2,357   -
  Current portion of provisions   720   888
  Current portion of notes payable   892   69
  Current portion of deferred lease inducements   97   97
  Unearned revenue   145   1,544
  Income taxes payable   10   43
  Current portion of obligations under finance leases   262   323
  Current portion of long-term debt   -   548
        9,230   8,609
             
Long-term notes payable   923   1,629
Deferred lease inducements   390   363
Long-term provisions   -   223
Obligations under finance leases   -   262
Long-term debt    -   95
Deferred tax liabilities    -   13
        10,543   11,194
             
Shareholders' equity:        
  Share capital   194,144   193,992
  Accumulated other comprehensive income    58   46
  Contributed surplus   10,354   9,663
  Deficit   (186,198)   (183,272)
        18,358   20,429
             
       $ 28,901  $  31,623
             

 

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Comprehensive Income
(In thousands of United States dollars, except per share information)

For the year ended December 31,   2012     2011
               
Revenue:          
  Contract services  $ 11,902    $ 10,813
  Data licenses   15,851     13,254
        27,753     24,067
Expenses:          
  Operating costs    23,393     31,376
  Depreciation of property and equipment   1,851     3,377
  Amortization of data library   4,610     4,610
  Amortization of intangible assets   168     495
        30,022     39,858
               
Operating loss   (2,269)     (15,791)
               
Gain on disposal of equipment   34     2,514
Financing costs   (524)     (160)
Financing income   1     3
Loss on foreign currency translation   (233)     (72)
               
Loss before income taxes   (2,991)     (13,506)
               
Income tax (expense) recovery:          
  Current   20     (170)
  Deferred   45     80
        65     (90)
               
Net loss for the period  $ (2,926)    $ (13,596)
               
Other comprehensive loss:          
  Foreign currency translation differences   12     (82)
               
Total comprehensive loss for the period  $ (2,914)    $ (13,678)
               
Basic and diluted loss per share  $ (0.04)    $ (0.19)
               
Weighted average number of Class A           
  common shares - basic and diluted   78,700,809     72,563,227

 

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Changes in Equity
(In thousands of United States dollars)

    Contributed
Surplus
Cumulative
Translation
Adjustments
   
  Share
Capital
Deficit Total
             
Balance at January 1, 2011  $   187,253  $ 8,700  $ 128  $   (169,676)  $ 26,405
                     
Comprehensive loss for the period   -   -   (82)   (13,596)   (13,678)
Share-based compensation   597   698   -   -   1,295
Issuance of shares   6,791    -   -   -   6,791
Issuance costs   (384)   -   -   -   (384)
Compensation options issued to agent   (265)   265   -   -   -
                     
Balance at December 31, 2011   193,992   9,663   46   (183,272)   20,429
                     
Comprehensive loss for the period   -   -   12   (2,926)   (2,914)
Share-based compensation   138   592   -   -   730
Warrant component of convertible note   19   -   -   -   19
Conversion option of convertible note   -   136   -   -   136
Issuance costs   (1)   (4)   -   -   (5)
Deferred tax effect of convertible note   (4)   (33)   -   -   (37)
                     
Balance at December 31, 2012  $   194,144  $ 10,354  $ 58  $   (186,198)  $ 18,358
           

 

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
(In thousands of United States dollars)

        For the years ended  
        December 31,   
      2012   2011
           
Cash flows provided by (used in):      
           
Operating activities:      
  Net loss for the period  $ (2,926)  $   (13,596)
  Adjusted for the following non-cash items:        
    Depreciation of property and equipment   1,851   3,377
    Amortization of data library   4,610   4,610
    Amortization of intangible assets   168   495
    Share-based compensation expense   673   1,011
    Gain on disposal of equipment   (34)   (2,514)
    Amortization of deferred lease inducements   74   55
    Deferred taxes   (46)   (80)
    Net financing costs   523     160
    Current income tax expense   (19)   170
    Interest paid   (131)   (99)
    Income tax paid   (107)   (105)
  Change in non-cash operating working capital   (4,370)   (2,545)
        266   (9,061)
             
Investing activities:        
  Purchase of property and equipment   (288)   (102)
  Investment in intangible assets   (113)   (242)
  Proceeds from sale of equipment   41   1
        (360)   (343)
             
Financing activities:        
  Proceeds from issuance of convertible note   2,500   -
  Proceeds from issuance of common shares   -   6,791
  Financing costs of convertible note   (70)   -
  Issuance costs of convertible note   (5)   -
  Securities issuance costs   -   (384)
  Proceeds from reimbursable project funding   151   -
  Repayment of obligations under finance lease   (323)   (239)
  Repayment of long-term debt   (643)   (531)
  Repayment of notes payable   (69)   -
        1,541   5,637
             
Effect of foreign exchange on cash   11   8
             
Increase/(decrease) in cash and cash equivalents   1,458   (3,759)
             
Cash and cash equivalents, beginning of period   597   4,356
             
Cash and cash equivalents, end of period  $ 2,055   $ 597

 

 

 

 

SOURCE Intermap Technologies Corporation



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