Q3 Adjusted EBITDA Positive $1.5 Million
DENVER -- Intermap Technologies Corporation (TSX: IMP) (“Intermap” or the “Company”) today reported financial results for the third quarter ended September 30, 2011. A conference call will be held today at 4:30 p.m. Eastern Time to discuss the results.
The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (IFRS) for interim financial reporting and is expressed in United States dollars, unless otherwise noted. The amounts in this earnings release, including the interim financial statements for the three and nine months ended September 30, 2010, have been restated to reflect the adoption of IFRS, with effect from January 1, 2010.
Revenue for the third quarter of 2011 was $8.1 million, a 419% increase from $1.6 million recorded in the same period of 2010. $3.2 million was attributable to the Company’s contract services business and $4.9 million was attributable to the licensing of the Company’s NEXTMap® database, which now includes data from LiDAR, satellite imagery, and 3D city models. As of September 30, 2011, there remained $16.8 million in revenue from existing contracts ($6.3 million in contract services and $10.5 million in data licenses contracts) to be recognized beginning in the fourth quarter of 2011, but primarily during the first three quarters of 2012. Subsequent to the close of the third quarter, Intermap announced the receipt of additional contracts for NEXTMap data and related services totaling more than $2.0 million. Revenue will be recognized on these contracts beginning in the fourth quarter of this year and subsequent deliveries are scheduled to occur throughout 2012.
“We’ve now achieved more revenue in 2011 than the Company did in all of 2010, and we will enter 2012 with a significant amount of revenue from existing contracts yet to be recognized in future periods,” stated Todd Oseth, Intermap’s president and CEO. “A new Intermap is beginning to emerge and we believe we are turning the business around by driving three primary revenue streams for the Company: NEXTMap data licensing, 3D business intelligence applications (3D-BI) and mapping services. Our proposal flow continues to grow in these three areas and we believe a meaningful amount of new sales will be the result in future periods.”
During the third quarter, Intermap also launched its Web-based subscription service for NEXTMap 3D terrain products, accessible through Web browsers and popular desktop geographic information systems (GIS) software applications. Delivered via cloud-computing, Web Services offers a suite of hosted tools that simplifies the ability for users to quickly and easily perform terrain analysis based on an area of interest such as a county or an entire state.
Additionally, the Company is developing new low cost, market specific applications that will integrate the NEXTMap database with third party geospatial information including LiDAR, satellite imagery, aerial photography and census data. This will allow the Company to expand existing markets and enter new markets including insurance risk assessment, mobile data services and advertising.
“Earlier this year we modified our marketing approach, our product offerings, and our pricing structure to make the purchase of our NEXTMap information more affordable to a wider array of potential users,” said Mr. Oseth. “We now have a simplified suite of products that our customers can easily understand and our partners can easily sell. These simplified products, coupled with our new market specific applications, create valuable location based information (LBI) that supports our 3D-BI geospatial focus. The success of these changes is beginning to take hold and is a contributing reason for the four-fold increase in our third quarter revenues over last year.”
Total operating costs in the third quarter were $6.9 million, a 20% decrease compared to $8.6 million for the third quarter of 2010. The Company has made significant workforce reductions in 2011 to help reduce its overall operating costs. Consolidated active employee headcount was 261 at September 30, 2011 (including 148 in the Company’s low-cost edit facility in Jakarta, Indonesia). This is a 54% decrease from 568 people at September 30, 2010, which included 378 in the Company’s Jakarta facility. The net impact on total expenses (after severance and termination related costs) of the workforce reductions made during the nine-month period ending September 30, 2011, is approximately $6.8 million on an annualized basis.
Adjusted EBITDA for the third quarter of 2011, a term not defined under IFRS, was positive $1.5 million, an improvement over the third quarter of 2010, which was negative $5.8 million. This quarter is the first quarter of positive adjusted EBITDA for the Company since the third quarter of 2009. The Company reported a third quarter 2011 net loss of $0.8 million, or $(0.01) per share, compared to a net loss of $51.1 million, or ($0.85) per share for the third quarter of 2010, which included an asset impairment charge of $39.1 million.
For the nine months ended September 30, 2011, Intermap reported an 88% increase in revenues to $19.4 million, from $10.3 million for the same period in 2010. Contract services revenue for this period was $8.6 million, a 148% increase from $3.5 million in the same period in 2010, and NEXTMap licensing revenue was $10.7 million, an increase of 57% from $6.8 million for the same period in 2010.
Adjusted EBITDA for the nine month period ended September 30, 2011 was negative $2.4 million, compared to negative $14.5 million for the same period in 2010. For the first nine months of 2011, Intermap reported a net loss of $9.1 million, or ($0.13) per share, compared to a net loss of $70.8 million, or ($1.29) per share for the same period in 2010. The nine month period ended September 30, 2011 includes an asset impairment charge of $39.1 million.
At September 30, 2011, Intermap held cash and cash equivalents of $2.2 million and positive working capital of $0.2 million. This marks a recovery to positive working capital which was last reported at the end of the third quarter of 2010.
The Company believes it has reasonable near-term visibility to meaningful sales opportunities during the remainder of 2011 and into 2012 for mobile data services in North America and Europe, additional mapping services contracts domestically and internationally, risk management applications in Europe, as well as opportunities in several other market segments. The Company will support these opportunities through new product development, improved marketing programs and expanded pricing plans. New location based services product offerings will provide a growing catalog of data layer options, including the integration of third-party data such as LiDAR, satellite imagery, aerial imaging, 3D city models and census information. Additionally, management has refocused the Company’s marketing and sales disciplines and believes that the value of the Company’s data lies in application solutions for specific vertical markets, and not solely in the data as a standalone product. Please visit the Company’s website at www.intermap.com for additional information about the Company.
As of September 30, 2011, there were 78,959,883 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 Today
A conference call to review the results will take place today at 4:30 p.m. ET (2:30 p.m. MT). To participate in the call, please dial +1-416-695-6616 or 1-800-355-4959 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through November 15, 2011. Please dial +1-905-694-9451 or 1-800-408-3053 and provide the pass code 2662541 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 a leading provider of Location-Based Information (LBI), setting the industry standard for creating high-resolution 3D digital models of the earth’s surface. The Company has remapped entire countries, to build NEXTMap® national databases consisting of affordably priced elevation data and geometric images of unparalleled accuracy. Turnkey solutions can be purchased from the Company’s NEXTMap Online Store, a hosted web services platform offering a variety of subscription levels by geography, data-layer, individual or enterprise wide license. Intermap’s cloud-based hosted model offers customers the most convenient and affordable method to satisfy a customer’s needs with both a Platform as a service (PaaS) and Software as a service (SaaS) options. For more information about Intermap’s web services please visit http://www.intermap.com/en-us/purchase.aspx.
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 also excludes restructuring costs, stock-based compensation, and gain or loss on foreign currency translation. 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 year ended December 31, 2010, together with the accompanying notes, which includes a going concern disclosure (Note 1) and such disclosure remains applicable as of the date of the financial statements included herein.
Contacts
Intermap Technologies
Rich Mohr, +1-303-708-0955
Senior Vice President and Chief Financial Officer
rmohr@intermap.com
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Cory Pala, +1-416-657-2400
Investor Relations
cpala@evestor.com
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Budd Zuckerman, +1-303-415-0200
Investor Relations
bzuckerman@genesisselect.com