Intermap Technologies Reports 2013 First Quarter Financial Results

Year-over-year consolidated revenue increases 21% to $5.1M
Year-over-year operating costs decrease by 27%
Adjusted EBITDA near breakeven at ($0.1M)
$12.3 million of backlog for delivery in 2013

DENVER, May 13, 2013 /PRNewswire/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the first quarter ended March 31, 2013. A conference call will be held today, May 13th, 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.

Intermap reported total revenue of $5.1 million for the first quarter of 2013, a 21% increase from $4.2 million recorded in the same period of 2012. Net loss for the first quarter of 2013 was $2.0 million, or ($0.03) per share, compared to a net loss of $5.1 million, or ($0.06) per share, for the first quarter of 2012. First quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $0.1 million, a significant improvement from an adjusted EBITDA loss of $2.9 million for the same period in 2012. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.

"We showed a significant improvement in our year-over-year first quarter results, even though historically this quarter is a low revenue quarter for Intermap," said Todd Oseth, President & CEO of Intermap. "Our restructuring efforts over the past two years have resulted in significantly lower operating costs, creating a lower threshold for Intermap to achieve positive adjusted EBITDA."

Mr. Oseth added, "By providing solutions to our customers' that require unique geospatial knowledge, we create increased opportunities as seen in our recent contract wins. Our 3D business intelligence (3DBI) applications, coupled with our multi-sensor approach (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, gives us a distinct advantage in the marketplace. Our "Pro" series of software applications continue to expand in functionality and ease of use. The number of customers using these fee based applications continues to grow and we are expecting improved and more consistent financial results in the future."

Financial Review

Contract services revenue in the first quarter increased 20% to $4.0 million, from $3.3 million last year. Data licensing revenue increased 23% to $1.1 million, from $0.9 million last year. As of March 31, 2013, the Company's contract backlog of $12.3 million consisted of $11.4 million in contract services, and $0.9 million in data licensing revenue.

For the first quarter 2013, personnel expense was $3.3 million, a 4% decrease from $3.5 million last year. The decrease was primarily due to attrition, partially offset by an increase in commission expense consistent with increased revenue recognized on a year-over-year basis.

For the first quarter 2013, purchased services and materials expense was $1.0 million, a 65% decrease from $3.0 million last year. The decrease in this category of expense is primarily related to a decrease in job and subcontractor expenses associated with the Company's airborne radar data collection activities that were performed during the respective periods. The stage of progress on each radar data collection contract and the individual requirements and logistics associated with radar collection efforts can create expense variations between reporting periods. 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).

The cash position of the Company at March 31, 2013 (cash and cash equivalents) was $2.7 million, compared to $2.1 million at December 31, 2012. Amounts receivable and unbilled revenue at March 31, 2013 was $7.0 million, compared to $8.4 million at December 31, 2012. Working capital declined to $0.9 million at March 31, 2013, compared to $1.9 million at December 31, 2012 (see "Intermap Reader Advisory" below).

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

First Quarter Business Highlights

  • At the beginning of the first quarter Intermap announced a $14.5 million mapping services contract to provide digital 3D elevation models and imagery for areas in Southeast Asia using Intermap's proprietary airborne radar technology. These geospatial solutions will become the foundation data layer for an updated national spatial data infrastructure (SDI). The new dataset will be used for improved disaster planning, resource management, national security interests, infrastructure planning, and the provisioning of new 3D geospatial information applications, such as Intermap's RiskPro™ and WaterPro™ products. The airborne data acquisition portion of the project commenced during the first quarter of 2013 and the entire project is expected to be complete prior to year-end 2013.
  • Also in the first quarter, Intermap announced a $488 thousand contract from a partner focused on South America data acquisition. The contract will be substantially fulfilled during the current year, with a small portion of deliverables expected to occur in the subsequent two year period.
  • Intermap announced a $410 thousand NEXTMap® RiskPro licensing sale in Southeast Asia. The contract is an initial phase of a RiskPro 3DBI solutions sale that includes the delivery of NEXTMap data, Intermap's RiskPro risk management software application, and the related web services. The customer intends to use the data for natural disaster planning, natural resource management, national security interests, infrastructure planning, and 3D location based information planning. The data was immediately delivered from the Company's NEXTMap data library. Contract(s) for subsequent phase(s) that further utilize the Company's 3DBI solutions are expected prior to year-end.
  • The Company announced a $750 thousand task order from Dewberry Consultants LLC for the fourth phase expansion of its previously announced airborne radar mapping services project in Alaska. Using its proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology, Intermap is collecting orthorectified radar imagery and high resolution elevation data for an area of Alaska never mapped to this accuracy. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications. Additional contract funding for this project may occur at future dates.

As of May 13, 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, May 13, 2013, at 4:30 pm ET (2:30pm MT). 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 May 23, 2013. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 58666743 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 location based 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.

Condensed Consolidated Interim Balance Sheets
(In thousands of United States dollars)

        March 31,   December 31,
        2013   2012
             
Assets        
             
Current assets:        
  Cash and cash equivalents $   2,718 $   2,055
  Amounts receivable   4,645   5,735
  Unbilled revenue   2,393   2,709
  Work in process   5   10
  Prepaid expenses   792   625
        10,553   11,134
             
Property and equipment    3,592   3,703
Data library   12,677   13,829
Intangible assets   206   235
      $   27,028 $   28,901
             
Liabilities and Shareholders' Equity        
             
Current liabilities:        
  Accounts payable and accrued liabilities  $   4,919 $   4,747
  Convertible note    2,420   2,357
  Current portion of provisions    720   720
  Current portion of notes payable    933   892
  Current portion of deferred lease inducements   99   97
  Unearned revenue and deposits   314   145
  Income taxes payable   37   10
  Current portion of obligations under finance leases    174   262
        9,616   9,230
             
Long-term notes payable    671   923
Deferred lease inducements   343   390
        10,630   10,543
             
Shareholders' equity:        
  Share capital    194,144   194,144
  Accumulated other comprehensive income    21   58
  Contributed surplus    10,431   10,354
  Deficit   (188,198)   (186,198)
        16,398   18,358
             
      $   27,028 $   28,901

 

Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income
(In thousands of United States dollars, except per share information)

For the three months ended March 31,   2013   2012  
               
Revenue:          
  Contract services $ 4,018 $   3,353  
  Data licenses   1,075   872  
        5,093   4,225  
Expenses:          
  Operating costs    5,321   7,331  
  Depreciation of property and equipment   359   602  
  Amortization of data library   1,152   1,152  
  Amortization of intangible assets   29   79  
        6,861   9,164  
               
Operating loss   (1,768)   (4,939)  
               
Gain on disposal of equipment   4   20  
Financing costs, net   (222)   (49)  
Gain (loss) on foreign currency translation   33   (117)  
Loss before income taxes   (1,953)   (5,085)  
               
Income tax (expense) recovery:          
  Current   (47)   (38)  
  Deferred   -   13  
        (47)   (25)  
               
Net loss for the period $ (2,000) $   (5,110)  
               
Other comprehensive loss:          
  Foreign currency translation differences   (37)   31  
               
Total comprehensive loss for the period $ (2,037) $   (5,079)  
               
Basic and diluted loss per share $ (0.03) $   (0.06)  
               
Weighted average number of Class A           
  common shares - basic and diluted   78,887,915   78,521,794  

 

Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of United States dollars)

 
 
 
Share
Capital
   Contributed
Surplus
  Cumulative
Translation
Adjustments
   
Deficit     Total  
                               
Balance at January 1, 2012 $   193,992   $ 9,663   $ 46   $   (183,272)   $ 20,429  
                               
Comprehensive loss for the period   -     -     31     (5,110)     (5,079)  
Share-based compensation   57     243     -     -     300  
                               
Balance at March 31, 2012 $   194,049   $ 9,906   $ 77   $   (188,382)   $ 15,650  
                               
Comprehensive profit for the period   -     -     (19)     2,184     2,165  
Share-based compensation   81     349     -     -     430  
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  
                               
Comprehensive loss for the period   -     -     (37)     (2,000)     (2,037)  
Share-based compensation   -     77     -     -     77  
                               
Balance at March 31, 2013 $   194,144   $ 10,431   $ 21   $   (188,198)   $ 16,398  

 

Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)

For the Three Months Ended March 31,   2013     2012
               
Cash flows provided by:          
               
Operating activities:          
  Net loss for the period $ (2,000)   $ (5,110)
  Adjusted for the following non-cash items:          
    Depreciation of property and equipment   359     602
    Amortization of data library   1,152     1,152
    Amortization of intangible assets   29     79
    Share-based compensation expense   77     275
    Gain on disposal of equipment   (4)     (20)
    Amortization of deferred lease inducements   (29)     77
    Deferred taxes   -     (13)
    Net financing costs   222     49
    Current income tax expense   47     38
    Interest paid   (27)     (28)
    Income tax paid   (13)     (15)
  Changes in working capital, net of investing activities:          
    Amounts receivable, net   1,090     2,785
    Work in process and other assets   154     32
    Accounts payable   181     1,155
    Accrued liabilities   (148)     226
    Unearned revenue and deposits   169     (1,131)
    Loss on foreign currency translation   (37)     (2)
        1,222     151
               
Investing activities:          
  Purchase of property and equipment   (248)     -
  Investment in intangible assets   -     (83)
  Proceeds from sale of equipment   4     27
        (244)     (56)
               
Financing activities:          
  Repayment of obligations under finance lease   (88)     (77)
  Repayment of long-term debt   -     (137)
  Repayment of notes payable   (208)     -
        (296)     (214)
               
Effect of foreign exchange on cash   (19)     7
               
Increase/(decrease) in cash and cash equivalents   663     (112)
               
Cash and cash equivalents, beginning of period   2,055     597
               
Cash and cash equivalents, end of period $ 2,718   $ 485
               

 

 

SOURCE Intermap Technologies Corporation



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