NEXTMap data licensing gains momentum
Intermap Technologies Corporation (TSX:IMP), today reported fourth quarter and year-end results for the periods ended December 31, 2004.
Total revenues for the year ended December 31, 2004, were $21.7 million as compared to revenues of $40.6 million in 2003. Comparative sales results for 2004 demonstrated both the volatility of Intermap's traditional contract services business, and the value of revenue consistency from the Company's new NEXTMap licensing business model. For the year, Intermap experienced an increase in licensing revenues from sales of its NEXTMap database to $7 million, an increase of over 300% as compared to 2003. Intermap's new business model (NEXTMap) is based on building archived databases of complete national digital elevation and terrain maps, then licensing the data to multiple customers for varied applications. The growth of NEXTMap revenues partially offsets the decline in contract services revenue for the year, and contributed 32% of total revenues. Intermap reported a net loss for the year of $5.5 million, or ($0.38) per share, as compared to net income of $3.3 million, or $0.31 per share in 2003.
Cash and cash equivalents at December 31, 2004, were $4.3 million, as compared with $1.5 million at December 31, 2003. For the year, the Company invested approximately $9 million into building the NEXTMap multi-client data library, primarily in the United States. At December 31, 2004, the Company's working capital was $6.0 million compared with $5.1 million at December 31, 2003.
For the fourth quarter ended December 31, 2004, Intermap reported total revenues of $2.1 million and a net loss of $4.0 million, or ($0.25) per share, as compared to revenues of $8.2 million and net income of $41,000, or $0.00 per share, for the same period in 2003. Revenues in the fourth quarter were lower than expected as revenue opportunities totaling approximately $3.0 million for the quarter were delayed until 2005.
"While contract services work was lower last year, we are once again looking at several large scale projects for 2005 as a result of recent global events including the tsunami in South East Asia, and the ongoing war on terror," said Brian Bullock, President & CEO of Intermap. "Funds that have been allocated for projects that Intermap is competing for in 2005 are twice what we saw in 2004. As a result, we are looking for noteworthy growth in contract services revenue over last year."
Contract services work helps fund the build out of the NEXTMap database. As Intermap continues the transition of its business model, deriving an increasing portion of its revenues through NEXTMap data license sales, the Company expects more consistent and predictable revenues than the Company's traditional contract services model.
NEXTMap license revenue increased substantially in 2004. Management views 2004 as the pivotal year in the transition of the Company's business model. Throughout 2004, Intermap made a large commitment to the build out of NEXTMap USA. The initiative became a priority following the success of NEXTMap Britain in 2003, which has produced revenues of $15 million to date. The Company has now invested more than $10 million into NEXTMap USA, collecting data covering more than 562,000 square kilometers of the continental United States as of December 31, 2004 - the equivalent of two NEXTMap Britain databases. The Company intends to have California, Florida and Mississippi completed this year for licensing to customers.
The majority of the multi-client data license sales in 2004 were derived from the NEXTMap Britain initiative, which was completed in 2003. Intermap embarked on NEXTMap USA in late 2003, which will generate national U.S. terrain elevation and imagery database accurate to one meter or better. Intermap continues to work with commercial and government customers to co-sponsor the development of the NEXTMap USA database.
In September 2004, Intermap received a subscription contract from the National Oceanic and Atmospheric Administration (NOAA) for Intermap's NEXTMap USA coastal data. Under the contract, Intermap will provide NOAA with NEXTMap USA imagery and elevation map data for regions in Florida, Alabama, Louisiana and Mississippi. This is the first phase of a planned multi-year program that is anticipated to include the purchase of NEXTMap data for the entire coastline of the continental United States, valued at U.S. $5.5 million dollars. The Company reports that two other national contracts are currently under negotiation.
A substantial amount of working capital was invested in increasing the production throughput to support the data volumes required for NEXTMap USA. As a result, Intermap's processing capacity in 2005 is approximately twice that of 2003. In addition to increasing capacity, Intermap has reduced the cost of production for NEXTMap USA by approximately 50% compared with the costs in NEXTMap Britain. The Company expects additional reductions in 2005.
Conference Call
A conference call to review the results will take place the same day 5:00pm., ET (3:00 p.m. MT). Brian Bullock, President and CEO and Richard Mohr, CFO will speak on behalf of the Company. A question-and-answer period will follow a review of the financial results and update on the Company's strategies and progress on its NEXTMap business model. Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.
To participate in the call, please dial 416-695-9701 or 1-888-333-4519 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through March 26. Please dial 416-695-5275 or 1-866-518-1010 to listen to the rebroadcast. After this date, the recorded call will be available atwww.intermap.com.
About Intermap
Intermap is digitally remapping entire countries, building unprecedented national databases, called NEXTMap, of highly accurate digital topographic maps (including elevation). Customers purchase Intermap's high-quality, low-cost data to facilitate better decision-making for numerous commercial, government, military, and consumer applications.
Demand for NEXTMap data is growing as new commercial applications are emerging, including geographical information systems (GIS), engineering planning, transportation, automotive, navigation, flood, irrigation, environmental management and planning, telecommunications network planning, aviation, simulation and 3D visualization. Internet applications include virtual tours, topographic maps and computer games. The products are also used to add interactive intelligence to airborne and satellite images.
Headquartered in Denver, Colorado, Intermap employs more than 250 people worldwide, with offices in Calgary, Ottawa, Munich and Jakarta. Intermap is publicly traded on the TSX under the symbol IMP. For more information, visit www.intermap.com.
The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Intermap's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Intermap's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, 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, including the amount of proceed, that Intermap will derive therefrom.
Intermap Technologies Corporation Consolidated Statements of Operations and Deficit (In Thousands of Canadian dollars) Three Three months months Year Year ended ended ended ended Dec 31, Dec 31, Dec 31, Dec 31, 2004 2003 2004 2003 ------------------------------------------------------------------------ Revenue: Contract services $ 795 $ 8,079 $ 14,777 $ 38,938 Multi-client data licenses 1,321 116 6,944 1,618 ------------------------------------------------------------------------ 2,116 8,195 21,721 40,556 Operating costs: Cost of services 1,616 2,979 9,163 17,052 Research and development 331 380 1,380 1,388 Sales, general and administration 3,098 3,263 12,777 13,365 Depreciation of property and equipment 748 879 2,817 3,349 Amortization of multi-client data library 332 536 1,094 1,547 Gain on sale of property and equipment -- -- -- (13) ------------------------------------------------------------------------ 6,125 8,037 27,231 36,688 ------------------------------------------------------------------------ Earnings (loss) before interest, income taxes, and non-controlling interest (4,009) 158 (5,510) 3,868 Income taxes Current (recovery) (54) 11 (16) 68 Future -- -- 4 -- ------------------------------------------------------------------------ (54) 11 (12) 68 Net earnings (loss) before interest and non-controlling interest (3,955) 147 (5,498) 3,800 Interest expense 30 106 198 548 Interest income (14) -- (154) -- ------------------------------------------------------------------------ Net earnings (loss) before non-controlling interest (3,971) 41 (5,542) 3,252 Non-controlling interest 11 -- 11 -- ------------------------------------------------------------------------ Net earnings (loss) (3,960) 41 (5,531) 3,252 Deficit, beginning of period: As previously reported (13,102) (10,841) (10,800) (14,052) Adjustment to reflect the change in accounting for stock-based compensation -- -- (731) -- ------------------------------------------------------------------------ As restated (13,102) (10,841) (11,531) (14,052) ------------------------------------------------------------------------ Deficit, end of period $(17,062)$(10,800)$(17,062)$(10,800) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Earnings (loss) per share: Basic $ (0.25)$ 0.00 $ (0.38)$ 0.31 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Fully diluted $ (0.25)$ 0.00 $ (0.38)$ 0.30 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Intermap Technologies corporation Consolidated Balance Sheets (In thousands of Canadian dollars) ------------------------------------------------------------------------ ------------------------------------------------------------------------ December 31, December 31, 2004 2003 ------------------------------------------------------------------------ Assets Current assets: Cash and cash equivalents $ 4,304 $ 1,547 Amounts receivable 4,430 4,268 Unbilled revenue 1,082 5,402 Prepaid expenses 486 270 ------------------------------------------------------------------------ 10,302 11,487 Property and equipment 19,072 14,037 Multi-client data library 13,822 4,828 Future income taxes 22 26 Long-term investments 484 520 Deferred financing charges - 10 ------------------------------------------------------------------------ $ 43,702 $ 30,908 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Liabilities and Shareholders' Equity Current liabilities: Bank loan $ - $ 1,156 Accounts payable and accrued liabilities 3,462 4,208 Deferred lease inducements 151 - Deferred revenue 63 131 Current portion of obligations under capital lease 371 375 Current portion of long-term debt 240 545 ------------------------------------------------------------------------ 4,287 6,415 Deferred lease inducements 399 - Obligations under capital lease 415 132 Long-term debt 441 2,027 Non-controlling interest 16 - Shareholders' equity: Share capital 53,712 33,010 Contributed surplus 1,494 124 Deficit (17,062) (10,800) ------------------------------------------------------------------------ 38,144 22,334 Commitments and guarantees ------------------------------------------------------------------------ $ 43,702 $ 30,908 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Intermap Technologies Corporation Consolidated Statements of Cash Flows (In Thousands of Canadian dollars) Three Three months months Year Year ended ended ended ended Dec 31, Dec 31, Dec 31, Dec 31, 2004 2003 2004 2003 ------------------------------------------------------------------------ Cash and cash equivalents provided by (used in): Operations: Net earnings (loss) $(3,960) $ 41 $ (5,531) $ 3,252 Items not involving cash: Depreciation of property and equipment 748 879 2,817 3,349 Amortization of multi-client data library 332 536 1,094 1,547 Amortization of deferred financing charges -- 9 10 17 Compensation expense 224 50 640 212 Gain on sale of property and equipment -- -- -- (13) Future income taxes (2) 7 4 7 Non-controlling interest (11) -- 11 -- Change in non-cash operating working capital 3,517 3,054 3,132 1,297 ------------------------------------------------------------------------ 848 4,576 2,177 9,668 Financing: Issuance of common shares 54 6 22,041 11 Security issuance costs -- -- (1,423) -- Deferred leasehold inducements 550 -- 550 -- Repayment of long-term debt , net (97) (253) (1,891) (1,490) Repayments of bank loan -- (11) (1,156) (1,494) Repayment of obligations under capital lease (149) (102) (498) (433) ------------------------------------------------------------------------ 358 (360) 17,623 (3,406) Investments: Purchase of property and equipment (1,700) (2,149) (8,186) (5,223) Investment in multi-client data library (3,579) (1,629) (8,977) (2,588) Proceeds on disposal of property and equipment -- -- -- 13 Proceeds on disposal of long-term investments -- 60 120 120 ------------------------------------------------------------------------ (5,279) (3,718) (17,043) (7,678) ------------------------------------------------------------------------ Increase (decrease) in cash and cash equivalents (4,073) 498 2,757 (1,416) Cash and cash equivalents, beginning of period 8,377 1,049 1,547 2,963 ------------------------------------------------------------------------ Cash and cash equivalents, end of period $ 4,304 $ 1,547 $ 4,304 $ 1,547 ------------------------------------------------------------------------ ------------------------------------------------------------------------ FOR FURTHER INFORMATION PLEASE CONTACT: E.vestor Communications Inc. Corbet Pala Investor Relations (416) 657-2400 Email: cpala@evestor.com or Intermap Technologies Richard Mohr Chief Financial Officer (303) 708-0955, Ext. 214 Email:rmohr@.intermap.com or Genesis Select Corporation (UNITED STATES) Budd Zuckerman Investor Relations (303) 415-0200 Email: bzuckerman@genesisselect.com