Intermap Technologies Reports 2014 Second Quarter Financial Results
DENVER, Aug. 11, 2014 /PRNewswire/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the second quarter ended June 30, 2014. A conference call will be held tomorrow, August 12th, at 10:00 a.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 $2.4 million for the second quarter of 2014, a 12% increase from the first quarter of the year. Second quarter revenue of $2.4 million is compared to $8.9 million in the same period of 2013. During the second quarter of last year, $7.6 million of mapping services revenue was recognized on a new $15.0 million contract that was announced earlier in the year. No similar sized contract was closed during the first six months of the current year, making up the majority of the variance between the current year and the prior year periods. Net loss for the second quarter of 2014 was $3.5 million, or ($0.04) per share, compared to a net profit of $170 thousand, or ($0.00) per share, for the second quarter of 2013. Second quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $2.8 million, a decrease from an adjusted EBITDA profit of $2.2 million for the same period in 2013. Adjusted EBITDA excludes share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
"Our continued focus during the quarter was the further development of our 3DBI® (3D business intelligence) software applications," said Todd Oseth, President & CEO of Intermap. "We're pleased to report that during the quarter we successfully introduced two new 3DBI software applications; InsitePro™ and GeoPro Server™. InsitePro is a Software-as-a Service ("SaaS") product built to analyze location specific risk caused by natural catastrophes. It is a powerful tool that gives users the ability to evaluate risk for locations one-by-one or thousands at a time via innovative risk models and analytics. GeoPro Server is the centerpiece of our Orion Platform®. It functions as a geospatial-data agnostic server deriving actionable answers from "big data". The application allows users (novice, or geospatial expert) to turn disparate geospatial data into simple to use information."
Mr. Oseth added, "Shortly after the introduction of InsitePro, we announced that a Top 10 Global Reinsurer had entered into an agreement with Intermap to license the application for use in a Latin American country. We see this as a significant endorsement for the application and we are optimistic that additional licenses will follow not only from this customer, but from other potential customers around the world."
"In addition to our progress on 3DBI software applications, we continue to progress towards the closing of a major international Orion Platform spatial data infrastructure contract," added Mr. Oseth. "The availability of our recently announced 3DBI software applications plays a pivotal role in winning Orion Platform projects. These projects are primarily government sourced and are inherently very complicated. They typically carry long sales cycles due to (i) the dollar magnitude of the contract, (ii) the individual country's political landscape, (iii) the timing of budgets, (iv) the multi-agency and multi-level government approval process, (v) the complexity of the project, and (vi) the funding mechanisms required for the project (i.e. banking syndicates). We remain optimistic that we will be able to announce the signing of one or more of these contracts before the end of the year, but due to the factors mentioned above, the actual timing is very difficult to predict."
Consolidated revenue for the second quarter of 2014 totaled $2.4 million and included (i) $0.1 million in mapping services, (ii) $0.2 million in professional services, (iii) $1.8 million in data licensing, and (iv) $0.3 million in 3DBI software licensing. For the same period in 2013, consolidated revenue totaled $8.9 million and included (i) $7.6 million in mapping services, (ii) $0.2 million in professional services, (iii) $0.7 million in data licensing, and (iv) $0.4 million in 3DBI software licensing. Contract backlog at the end of the quarter totaled $0.4 million.
For the second quarter of 2014, personnel expense was $3.1 million, compared to $3.2 million in the previous year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.
For the second quarter of 2014, purchased services and materials expense was $1.5 million, compared to $2.7 million during the same period last year. The decrease in this category of expense is primarily due to project specific costs associated with airborne data collection efforts in the previous year with no similar work under contract in the current year. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to airborne data collection efforts, processing and editing of the Company's data collection efforts, and (iv) software expenses (including maintenance and support).
The cash position of the Company at June 30, 2014 (cash and cash equivalents) was $3.9 million, compared to $2.4 million at December 31, 2013. Amounts receivable and unbilled revenue at June 30, 2014 was $3.1 million, compared to $6.6 million at December 31, 2013. Working capital was negative $2.6 million at June 30, 2014, compared to positive $3.9 million at December 31, 2013 (see "Intermap Reader Advisory" below).
Detailed financial results and management's discussion and analysis can be found on SEDAR at: www.sedar.com.
Second Quarter Business Highlights (Previously Announced)
Intermap announced the launch of InsitePro™, a SaaS based product built
on its history of providing risk solutions worldwide. The application
was purpose-built to visualize and analyze location-specific risk
caused by natural catastrophes. It provides property and casualty
carriers, insurance brokers, enterprise risk managers, and government
agencies with a powerful tool to evaluate locations one-by-one, or
thousands at a time via innovative risk models and analytics. InsitePro
is the only risk management application that accesses Intermap's
WorldFlood™ model, which forecasts uniform flood coverage anywhere in
Intermap announced an agreement to license its InsitePro software
application to a Top 10 Global Reinsurer for use in a specific Latin
American country. InsitePro leverages Intermap's best-in-class NEXTMap® and NEXTMap World 30™ elevation data. Point-specific ground elevation
allows users to go beyond flood models to better understand the risk of
flood by determining heights above flood elevation, flow routes from
rivers to buildings, and safer locations for new infrastructure and
buildings. InsitePro can also display a customer's proprietary risk
data or any available government data.
Intermap announced the commercial availability of GeoPro Server, a
server purpose-built for turning big data into smart decisions. GeoPro
Server allows users (novice and geospatial expert) to turn disparate
geospatial data into simple to use information. The application can
provide enterprises and governments with easy access to all of their
geospatial and non-geospatial data via a web service or web portal
without regard to the data's source or original file format. GeoPro
Server offers a multi-touch display that allows users to control
terabytes of data from a tablet or laptop.
Intermap was awarded a commercial third-party database license to use
the Traffic Audit Bureau ("TAB") ratings in its AdPro® software. After successfully passing TAB's rigorous technical standards
and audit committee, AdPro now provides access to the TAB Ratings
Database. By leveraging standardized TAB ratings directly within AdPro,
users can measure return on investment for their out-of-home campaigns
utilizing a trusted ratings system similar to those used in TV and
The Company announced a $1.0 million contract to provide digital
elevation data and orthorectified radar imagery from its NEXTMap® database. The data will be used by the customer for geospatial related
applications and the delivery of the data occurred during the second
Intermap introduced its new Vice President of Sales, Jon Freeman. Mr.
Freeman is a technology and sales veteran bringing twenty years of
consistent sales production and executive management experience to the
position along with a successful record for business development in a
variety of software/high-tech industries. Mr. Freeman most recently
served as Vice President Sales for Solarwinds/Confio Software Inc., a
leading provider of software solutions delivering database, server,
storage, and networking tools.
- Intermap announced the appointment of David Sikes to its Board of Directors effective April 9, 2014. Mr. Sikes is a Principal for Exeter Consulting, specializing in consulting for technology start-up companies. He has held technical and executive roles in technology based companies throughout his entire career. He has also held key board positions with several technology companies including most recently ten years with an internet/Software-based/B-to-B marketing company in the automotive industry.
As of August 11, 2014, there were 91,782,665 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.
Intermap will host a conference call tomorrow, August 12, 2014, at 10:00 am ET (8:00 am 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 and provide conference ID 76815260. A recording of the conference call will be available through October 31, 2014. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 76815260 to listen to the rebroadcast. The call will also be available on Intermap's website at http://www.intermap.com/en-us/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, 2013 and 2012, 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
Condensed Consolidated Interim Balance Sheets
(In thousands of United States dollars)
|June 30,||December 31,|
|Cash and cash equivalents||$||3,920||$||2,420|
|Work in process||16||33|
|Property and equipment||3,164||3,378|
|Liabilities and Shareholders' Equity|
|Accounts payable and accrued liabilities||$||3,864||$||3,953|
|Current portion of notes payable||1,112||1,188|
|Current portion of deferred lease inducements||133||188|
|Unearned revenue and deposits||122||110|
|Income taxes payable||7||12|
|Obligations under finance leases||118||115|
|Long-term notes payable||44||-|
|Deferred lease inducements||331||202|
|Obligations under finance leases||132||192|
|Accumulated other comprehensive income||38||37|
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Profit and Loss and Other Comprehensive Income
(In thousands of United States dollars, except per share information)
|For the three months||For the six months|
|ended June 30,||ended June 30,|
|Depreciation of property and equipment||295||365||587||724|
|Amortization of data library||-||1,153||-||2,305|
|Amortization of intangible assets||30||30||59||59|
|Operating (loss) income||(3,246)||467||(7,230)||(1,301)|
|Gain on disposal of equipment||51||200||413||204|
|Loss on foreign currency translation||(43)||(269)||(121)||(236)|
|(Loss) income before income taxes||(3,545)||170||(7,442)||(1,783)|
|Income tax (expense) recovery:|
|Net (loss) income for the period||$||(3,545)||$||170||$||(7,363)||$||(1,830)|
|Other comprehensive income (loss):|
|Foreign currency translation differences||2||3||1||(34)|
|Comprehensive (loss) income for the period||$||(3,543)||$||173||$||(7,362)||$||(1,864)|
|Basic (loss) income per share||$||(0.04)||$||0.00||$||(0.08)||$||(0.02)|
|Diluted (loss) income per share||$||(0.04)||$||0.00||$||(0.08)||$||(0.02)|
|Weighted average number of Class A|
|common shares - basic||91,648,742||79,174,911||91,622,212||79,032,206|
|common shares - diluted||91,648,742||79,646,130||91,622,212||79,032,206|
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of United States dollars)
|Balance at December 31, 2012||$||194,144||$||10,354||$||58||$||(186,198)||$||18,358|
|Comprehensive loss for the period||-||-||(34)||(1,830)||(1,864)|
|Convertible note conversion||1,817||-||-||-||1,817|
|Conversion option of convertible note||79||(79)||-||-||-|
|Balance at June 30, 2013||$||196,121||$||10,443||$||24||$||(188,028)||$||18,560|
|Comprehensive profit (loss) for the period||-||-||13||(13,077)||(13,064)|
|Convertible note conversion||1,208||-||-||-||1,208|
|Conversion option of convertible note||57||(57)||-||-||-|
|Balance at December 31, 2013||$||197,376||$||10,671||$||37||$||(201,105)||$||6,979|
|Comprehensive profit (loss) for the period||-||-||1||(7,363)||(7,362)|
|Warrant component of convertible note||64||-||-||-||64|
|Conversion option of convertible note||-||259||-||-||259|
|Deferred tax effect of convertible note||(15)||(64)||-||-||(79)|
|Balance at June 30, 2014||$||197,464||$||11,054||$||38||$||(208,468)||$||88|
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)
|For the Six Months Ended June 30,||2014||2013|
|Cash flows provided by:|
|Net loss for the period||$||(7,363)||$||(1,830)|
|Adjusted for the following non-cash items:|
|Depreciation of property and equipment||587||724|
|Amortization of data library||-||2,305|
|Amortization of intangible assets||59||59|
|Share-based compensation expense||233||249|
|Gain on disposal of equipment||(413)||(204)|
|Amortization of deferred lease inducements||(42)||(94)|
|Current income tax expense||-||47|
|Income tax paid||(5)||(29)|
|Changes in working capital:|
|Work in process and other assets||(49)||933|
|Unearned revenue and deposits||12||(86)|
|Gain on foreign currency translation||(1)||(25)|
|Purchase of property and equipment||(437)||(259)|
|Proceeds from sale of equipment||353||112|
|Proceeds from issuance of convertible note||5,000||-|
|Financing costs of convertible note||(93)||-|
|Proceeds from reimbursable project funding||44||-|
|Repayment of obligations under finance lease||(57)||(176)|
|Repayment of long-term debt and notes payable||(65)||(419)|
|Effect of foreign exchange on cash||8||(16)|
|Increase in cash and cash equivalents||1,500||605|
|Cash and cash equivalents, beginning of period||2,420||2,055|
|Cash and cash equivalents, end of period||$||3,920||$||2,660|
SOURCE Intermap Technologies Corporation