Intermap Technologies Reports 2013 Third Quarter Financial Results

Nov 11, 2013, 16:00 ET from Intermap Technologies Corporation

DENVER, Nov. 11, 2013 /PRNewswire/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company"), a leading provider of geospatial software and solutions created from its uniform, high-resolution 3D digital models of the earth's surface and third party information, today reported financial results for the third quarter ended September 30, 2013. A conference call will be held today, November 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.

Intermap reported total revenue of $6.4 million for the third quarter of 2013, compared to $8.0 million recorded in the same period of 2012. Net loss for the second quarter of 2013 was $0.5 million, or ($0.01) per share, compared to net income of $0.4 million, or $0.01 per share, for the third quarter of 2012. Third quarter adjusted EBITDA, a non IFRS financial measure, was $0.6 million, compared to adjusted EBITDA of $2.5 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're pleased to report our sixth quarter of positive or breakeven adjusted EBITDA as our expense management has lowered our breakeven levels," said Todd Oseth, President & CEO of Intermap. "On a year-to-date basis, our financial performance shows revenue growth, lower operating expenses, improved bottom line performance, and improved adjusted EBITDA margin over last year at this time. The improved operating results for the first three quarters of the year are coupled with a stronger balance sheet where working capital has more than tripled from $1.9 million at year-end to $6.1 million."

Financial Review

Contract services revenue in the second quarter increased to $5.4 million from $4.1 million in the year ago quarter, and data licensing revenue decreased to $0.9 million from $3.9 million in the year ago quarter. As of September 30, 2013, the Company's contract backlog of $3.9 million consisted of $3.3 million in contract services and $0.6 million in data licensing revenue.

During the third quarter of 2013, contract services revenue was recognized primarily from two contracts, one in Southeast Asia and one in North America in the amounts of $2.4 million and $3.0 million, respectively. For the same period in 2012, contract services revenue was recognized primarily from a single contract in North America in the amount of $3.9 million. The comparable decrease in data licensing revenue during the third quarter of 2013 was primarily the result of one significant sale from the Company's NEXTMap® dataset, which generated $2.9 million in revenue during the third quarter of 2012, while there were no significant data licensing contracts that generated similar amounts of revenue during the third quarter of 2013.

For the third quarter 2013, personnel expense was $3.0 million, a 2% decrease from $3.1 million for same period last year. The decrease was primarily due to a change in the mix of wage earners and a decrease in non-cash compensation.

For the third quarter 2013, purchased services and materials expense was $1.9 million, a 5% increase from $1.8 million for the same period last year. The increase in this category of expense is primarily related to an increase in job and subcontractor expenses associated with the Company's airborne radar data collection activities during the period. 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 including jet fuel and aircraft maintenance; (ii) professional and consulting costs; (iii) third-party support services related to the acquisition, 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 September 30, 2013 (cash and cash equivalents) was $3.2 million, compared to $2.1 million at December 31, 2012. Amounts receivable and unbilled revenue at September 30, 2013 was $7.5 million, compared to $8.4 million at December 31, 2012. Working capital increased to $6.1 million at September 30, 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:

Third Quarter Business Highlights

  • The Company announced a $3.5 million contract for an airborne radar mapping services solution contract. Under the terms of the contract, Intermap will use its IFSAR radar technology to collect orthorectified radar imagery and high resolution elevation data to enhance the customer's existing geospatial map database. The new dataset will be used for improved disaster planning, resource management, security interests, and infrastructure planning. The project commenced in July and the final deliveries of the dataset are expected to be substantially complete by the end of the first quarter 2014.
  • Intermap announced a $1.0 million contract from a repeat customer for Phase II of a geospatial professional services project initiated in 2011. This follow-on contract illustrates Intermap's sensor agnostic approach, whereby LiDAR and digital aerial photo will be the sensors used to acquire new data under the terms of the contract. Phase I of the project utilized Intermap's proprietary IFSAR radar based NEXTMap data for the initial project planning to create a base model. The final fused database will be used for infrastructure design and management for a major utility corridor in the western United States. Work on the project commenced in September and the final deliverables are expected to be complete during the second quarter of 2014.
  • Intermap introduced AdPro v3.0 for Media Buyers, the first Software-as-a-Service (SaaS) application specifically designed for creative agencies and media buyers to evaluate the advertising potential of any Out-of Home (OOH) advertising location. Valuable information can be rapidly extracted from fused layers of data in Intermap's database enabling an agency to understand and measure the drivers of a successful location-based advertising campaign including area demographics, proximity to points of interest, traffic analysis, exposure time, and viewing approach. This information is then applied to the placement and value of static billboards, digital billboards, posters, city walls, bus shelters, urban furniture, shopping malls, retail locations, sports arenas, concert venues, and street corners.
  • The Company announced the availability of NEXTMap® World 30 v2.0, the world's most accurate complete global terrain product. This latest version of the NEXTMap World 30 product is up to three times more accurate than competing global Digital Elevation Models (DEM) such as NASA's Shuttle Radar Topographic Mission (SRTM) data and Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) Global Digital Elevation Model (GDEM). It integrates seamlessly with Intermap's recently announced Orion Platform™ and provides a foundation data layer for the Company's web-based 3D Business Intelligence (3DBI®) applications. NEXTMap World 30 v2.0 has removed errors native to the ASETER GDEM v2 data in over 3,000 one-degree tiles north of 60 degrees latitude. Additionally, the overall vertical accuracy of v2.0 has been improved by over 1- centimetre to a Root Mean Square Error (RMSE) of just 7 meters globally.

As of September 30, 2013, there were 92,139,499 common shares outstanding.

Important factors, including those discussed in the Company's regulatory filings ( 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:

Conference Call

Intermap will host a conference call today, November 11, 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 and provide conference ID 90709554. A recording of the conference call will be available through November 30, 2013. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 90709554 to listen to the rebroadcast. The call will also be available on Intermap's website at for replay.

About Intermap Technologies

Headquartered in Denver, Colorado - Intermap ( is an industry leader in geospatial solutions on demand with its secure, cloud based Orion Platform™. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of geospatial data into a single source, the Orion Platform is able to provide location- based solutions for customers in diverse markets around the world. For more information please visit

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, 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)

      September 30,     December 31,
      2013     2012
Current assets:        
  Cash and cash equivalents $ 3,237   $ 2,055
  Amounts receivable   5,140     5,735
  Unbilled revenue   2,324     2,709
  Work in process   2     10
  Prepaid expenses   396     625
        11,099     11,134
Property and equipment   3,086     3,703
Data library   10,372     13,829
Intangible assets   146     235
Long-term lease receivable   93     -
      $ 24,796   $ 28,901
Liabilities and Shareholders' Equity          
Current liabilities:          
  Accounts payable and accrued liabilities $ 3,513   $ 4,747
  Convertible note   -     2,357
  Current portion of notes payable   1,044     892
  Current portion of deferred lease inducements   188     97
  Unearned revenue and deposits   207     145
  Income taxes payable   23     10
  Obligations under finance leases   -     262
  Provisions   -     720
        4,975     9,230
Long-term notes payable   151     923
Deferred lease inducements   250     390
        5,376     10,543
Shareholders' equity:          
  Share capital   197,376     194,144
  Accumulated other comprehensive income   59     58
  Contributed surplus   10,482     10,354
  Deficit   (188,497)     (186,198)
        19,420     18,358
      $ 24,796   $ 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     For the nine months
        ended September 30,   ended September 30,
      2013   2012   2013   2012
  Contract services  $ 5,429    $ 4,100    $ 17,202    $ 9,010
  Data licenses   926     3,865     3,123     11,169
        6,355     7,965     20,325     20,179
  Operating costs   5,178     5,573     17,361     18,439
  Depreciation of property and equipment   356     404     1,080     1,471
  Amortization of data library   1,152     1,152     3,457     3,457
  Amortization of intangible assets   30     30     89     138
        6,716     7,159     21,987     23,505
Operating (loss) income   (361)     806     (1,662)     (3,326)
Gain on disposal of equipment   138     -     342     26
Financing costs, net   (37)     (220)     (487)     (313)
Loss on foreign currency translation   (198)     (149)     (434)     (200)
(Loss) income before income taxes   (458)     437     (2,241)     (3,813)
Income tax (expense) recovery:                      
  Current   (11)     (14)     (58)     (50)
  Deferred   -     -     -     8
        (11)     (14)     (58)     (42)
Net (loss) income for the period  $ (469)    $ 423    $ (2,299)    $ (3,855)
Other comprehensive income (loss):                      
  Foreign currency translation differences   35     21     1     (16)
Total comprehensive (loss) income for the period  $ (434)    $ 444    $ (2,298)    $ (3,871)
Basic and diluted (loss) income per share  $ (0.01)    $ 0.01    $ (0.03)    $ (0.05)
Weighted average number of Class A                       
  common shares - basic and diluted    88,426,588     78,887,915     82,191,436     78,637,986

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

Deficit Total
Balance at January 1, 2012  $ 193,992  $ 9,663  $ 46  $ (183,272)  $ 20,429
Comprehensive loss for the period   - -   (16)   (3,855)   (3,871)
Share-based compensation   138 491   -   -   629
Warrant component of convertible note   19 -   -   -   19
Conversion option of convertible note   - 136   -   -   136
Issuance costs   (1) (4)   -   -   (5)
Balance at September 30, 2012  $ 194,148  $ 10,286  $ 30  $ (187,127)  $ 17,337
Comprehensive profit for the period   - -   28   929   957
Share-based compensation   - 101   -   -   101
Deferred tax effect of convertible note   (4) (33)   -   -   (37)
Balance at December 31, 2012  $ 194,144  $ 10,354  $ 58  $ (186,198)  $ 18,358
Comprehensive profit (loss) for the period   - -   1   (2,299)   (2,298)
Share-based compensation   81 260   -   -   341
Convertible note conversion   3,025 -   -   -   3,025
Conversion option of convertible note   136 (136)   -   -   -
Issuance costs   (10) 4   -   -   (6)
Balance at September 30, 2013  $ 197,376  $ 10,482  $ 59  $ (188,497)  $ 19,420


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

For the Nine Months Ended September 30, 2013   2012
Cash flows provided by:      
Operating activities:      
  Net loss for the period  $ (2,299)    $ (3,855)
  Adjusted for the following non-cash items:          
    Depreciation of property and equipment   1,080     1,471
    Amortization of data library   3,457     3,457
    Amortization of intangible assets   89     138
    Share-based compensation expense   341     613
    Gain on disposal of equipment   (342)     (26)
    Amortization of deferred lease inducements   (49)     104
    Extinguishment of facility closure provision   (720)     -
    Deferred taxes   -     (8)
    Net financing costs   487     313
    Current income tax expense   58     50
    Interest paid   (61)     (99)
    Income tax paid   (39)     (109)
  Changes in working capital, net of investing activities:          
    Amounts receivable, net   622     3,955
    Work in process and other assets   731     (86)
    Accounts payable   (436)     (13)
    Accrued liabilities   (556)     (987)
    Unearned revenue and deposits   62     (1,239)
    Loss on foreign currency translation   9     (229)
        2,434     3,450
Investing activities:          
  Purchase of property and equipment   (463)     -
  Investment in intangible assets   -     (113)
  Proceeds from sale of equipment   112     33
        (351)     (80)
Financing activities:          
  Proceeds from issuance of convertible note   -     2,500
  Financing costs of convertible note   -     (70)
  Issuance costs of convertible note and shares issued upon conversion   (6)     (5)
  Proceeds from reimbursable project funding   -     151
  Repayment of obligations under finance lease   (262)     (238)
  Repayment of long-term debt and notes payable   (618)     (644)
        (886)     1,694
Effect of foreign exchange on cash   (15)     7
Increase in cash and cash equivalents   1,182     5,071
Cash and cash equivalents, beginning of period   2,055     597
Cash and cash equivalents, end of period  $ 3,237    $ 5,668




SOURCE Intermap Technologies Corporation