NEXTMap USA 71% collected
NEXTMap revenue growth of 168% over prior year
Calgary, Alberta: Intermap Technologies Corp. (“Intermap” or the “Company”), today reported financial results for the second quarter ended June 30, 2008. A conference call will be held tomorrow, Tuesday, August 12, at 8:00 am eastern time to discuss the results.
Financial Review
All amounts in this news release are in U.S. dollars unless otherwise noted.
For the second quarter of 2008, Intermap™ reported total revenues of $6.9 million compared to $7.1 million in the second quarter of 2007. Intermap's contract services revenue component contributed $2.5 million and multi-client data licenses (MCDL) revenue from NEXTMap® datasets contributed $4.4 million.
“We are beginning to see real revenue growth from our NEXTMap datasets,” said Brian Bullock, president & CEO of Intermap. “For the first half of 2008, MCDL revenue from our NEXTMap datasets has grown to $6.2 million. This represents an increase of 168% from $2.3 million in the first half of 2007. Current contracts under negotiation indicate this trend will continue, validating the overall NEXTMap business premise — map once and sell multiple times, to multiple markets. Data from the three-dimensional maps we are creating for the U.S. and Europe is being implemented in a variety of valuable applications.”
During the second quarter, approximately 86% of MCDL revenue was associated with the Company's NEXTMap USA program, 7% with NEXTMap Britain, 6% with the Company's Indonesian dataset, and 1% with NEXTMap Europe. NEXTMap USA revenues in the quarter were derived primarily from a sale of NEXTMap USA data totaling $3.4 million. Cumulative MCDL sales since the inception of the NEXTMap business model have reached $40 million as of June 30, 2008. This compares to a total cumulative investment in the NEXTMap program of approximately $85 million.
Sales, general and administrative (SG&A) expenses for the second quarter were $7.8 million compared to $6.0 million for the same period in 2007. The majority of these increases were attributable to the costs of personnel in the areas of business development (including automotive initiatives), recreational map enabled GPS/PND applications, insurance risk assessment, and sales and marketing in support of our MCDL data licensing.
Amortization expense of the MCDL database increased to $2.3 million from $1.0 million in Q2 of 2007 primarily due to an increase in the size of the underlying NEXTMap datasets and from increased revenue associated with these datasets.
After interest income, interest expense and a foreign exchange gain with a combined total of $0.3 million, Intermap reported a net loss of $6.2 million or ($0.13) per share in the second quarter, compared to a net loss of $4.3 million or ($0.12) per share for the same period in 2007.
Cash and cash equivalents at June 30, 2008 were $41.1 million, compared to $56.8 million at December 31, 2007. The Company's working capital was $44.0 million at June 30, 2008, compared to $65.0 million at December 31, 2007.
GPS / Personal Navigation Devices (PND)
In July, Intermap jointly announced with Magellan® the first commercial availability of Intermap's AccuTerra™ maps for their Triton® and eXplorist® handheld GPS devices, providing outdoor enthusiasts with advanced topographic maps and off-road points-of-interest. Recognized as an industry innovator, Magellan is one of the world's best known GPS brands. Intermap's AccuTerra maps complement Magellan's product lines with the nation's best recreational map content for GPS devices. Magellan's recreational customers now have access to digital terrain data, off-road and recreation-related roads, trails, and points-of-interest such as campgrounds, service facilities, and landmarks. Additionally, customers can benefit from a land-management data layer that displays the location of public lands (national forest, wilderness areas, state parks, etc.) and private property for most recreation areas in the United States. Customers can now download maps for the contiguous 48 states and Hawaii from the Magellan website for immediate use.
AccuTerra maps are available via download at http://www.magellangps.com. Magellan devices supporting the AccuTerra products are the Triton 400, 500, 1500, and 2000 units, and the eXplorist 400, 500, 600, and XL units.
Intermap is supplying its AccuTerra recreational map content under license to manufacturers of GPS/PND hardware devices. In addition to Magellan, Intermap has also announced a similar relationship with Bushnell Outdoor Products. Bushnell users will also be able to access Intermap's AccuTerra recreational map data for the contiguous 48 states and Hawaii. Future versions of the Company's AccuTerra maps will include expanded map content including 3D capability which will allow users to visualize trails and other features in all three dimensions on their GPS devices.
Insurance Risk Management
Intermap is developing flood risk models in European countries following the success of flood modeling applications pioneered by a partner insurance company in Great Britain. The Company has also partnered with SwissRe for use of their flood modeling algorithms and for quality assurance support throughout Western Europe. Recently, Intermap signed its first country wide agreement for flood risk modeling in Europe. Work on the program is underway and the specific country and insurance partner will be announced upon completion of the model, which is expected in the fourth quarter of 2008.
Insurance companies can use NEXTMap's superior insurance risk information to better define possible risks. The result can be more effective portfolio management and a net reduction of costs through a reduced need for reinsurance coverage and lower payouts after insurable events occur. Intermap is also in discussions with U.S. insurers for commercial insurance applications.
Active Powertrain Management
Over a very short time, the pressure for improved fuel economy has become enormous and a dramatic transition is occurring within the automotive sector. A significant amount of fuel expense in the heavy trucking industry is attributed to changes in road slope. The Company's 3D road vector data is enabling the design of systems to manage optimal vehicle speed, drive-train management, and engine performance. These active powertrain management systems are designed to improve fuel economy and reduce overall operating costs of the vehicle by providing knowledge of the road ahead including slope and distance.
Since 2007, Intermap has been working with Auburn University to investigate and evaluate ways to save fuel using our 3D road data. The project's initial results have led to a continuation of this collaborative study with not only Auburn University, but also with commercial partners in the trucking industry. Intermap has also commissioned a project at Clemson University to conduct a similar investigation for hybrid vehicle technology.
NEXTMap Europe
Intermap completed the collection of NEXTMap Europe in the second quarter, collecting approximately 2.2 million square kilometers of data across Europe encompassing 18 Western European countries.
Intermap has sold its first national dataset for NEXTMap Germany, which was the first European country to become commercially available. The sale was made to E-Plus Mobilfunk, Germany's third largest wireless network provider, to determine precise antennae heights, accurate predictions of field strength and coverage, and optimized antennae locations and characteristics utilizing Intermap's 3D digital mapping data. E-Plus licensed the Company's digital terrain models (DTMs) from the NEXTMap Europe data library which delivers uniform vertical accuracy of 1 meter across the entire region. E-Plus is able to provide a higher level of service for their customers through advanced network planning with this high-degree of accuracy.
Intermap will continue to make data available for the remaining European countries as it is processed. All of the NEXTMap Europe datasets are expected to be fully completed and commercially available by March 31, 2009. These datasets will be the most uniformly accurate 3D digital maps of Western Europe in existence. The next complete country datasets expected to be released during this year are France and Italy.
NEXTMap USA
NEXTMap USA is the Company's largest mapping program and includes terrain elevation and imagery data accurate to one-meter or better, covering nearly eight million square kilometers of the United States. The Company collected a total of 1.8 million square kilometers of NEXTMap data during the first half of 2008 of which 877,000 square kilometers was for NEXTMap USA. The total data collected since the inception of the NEXTMap USA program is 5.6 million square kilometers, or 71% of the contiguous 48 states and Hawaii. The Company expects to have the NEXTMap USA program completed by the end of the fourth quarter of 2009.
“We have been hitting all of our production goals and maintained cost targets on the NEXTMap USA program,” said Mr. Bullock. “In the second quarter, the seasonal efficiency gains that we realize with summer weather, combined with the collection of comparatively flat mid-west terrain, resulted in the lowest cost yet per square kilometer since the inception of the NEXTMap program. The impact of the recent increases in fuel costs to the Company's aircraft operations have been neutralized by continued productivity gains. Aircraft fuel represents only a small percentage of the total cost of the Company's NEXTMap programs.”
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR at: www.sedar.com.
A pdf copy of this release, along with financial details, is available by clicking here.
Conference Call August 12, 2008 at 8:00 a.m. ET (6:00 a.m. MT)
Intermap will host a conference call on August 12, 2008 at 8:00 a.m. ET (6:00 a.m. MT, 1:00 p.m. GMT). To participate in the call, please dial 416-695-5259 or 1-800-952-6845 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 19, 2008. Please dial 416-695-5800 or 1-800-408-3053 and provide the password 3268269 to listen to the rebroadcast.
About Intermap Technologies
Intermap (TSX: IMP.TO, AIM: IMAP.L) is a preeminent digital mapping company creating uniform high-resolution 3D digital models of the earth's surface. The Company is proactively remapping entire countries and building uniform national databases, called NEXTMap®, consisting of affordably priced elevation data and geometric images of unprecedented accuracy. Demand for NEXTMap data is growing as new commercial applications emerge within the GIS, engineering, automotive, personal navigation device, insurance risk assessment, oil and gas, hydrology, environmental planning, wireless communications, transportation, aviation and 3D visualization markets.
Headquartered in Denver, Colorado, Intermap employs more than 800 people worldwide, with additional offices in Calgary, Detroit, Jakarta, London, Munich, Ottawa, Prague, and Washington D.C. For more information, visit www.intermap.com.
NEXTMap® is a registered trademark of Intermap Technologies Corporation
For more information, please contact:
Intermap Technologies
Richard Mohr, Senior Vice President & Chief Financial Officer
(303) 708-0955
Canada — Financial
Corbet Pala, Investor Relations
E-vestor Communications Inc.
(416) 657-2400
United States — Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
(303) 415-0200
United Kingdom — AIM, Nominated Advisor
Canaccord Adams Limited
Andrew Chubb
+44 (0) 207 050 6500
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.