Intermap Reports 2005 First Quarter Financial Results

News Releases

15 Jul, 2005 CALGARY, ALBERTA--(CCNMatthews - May 16, 2005) - Intermap Technologies Corporation (TSX:IMP) (the "Company"), today reported first quarter financial results for the period ended March 31, 2005. The Company has historically prepared its consolidated financial statements in Canadian dollars. As a result of the continued expansion of the Company's U.S. operations, a significant and growing U.S. customer base, and because the majority of its global revenue and assets are denominated in U.S. dollars, the Company has elected to adopt the U.S. dollar as its reporting currency effective January 1, 2005. The financial information for all periods have been translated into the new reporting currency. All amounts in this news release are in U.S. dollars unless otherwise noted. Total revenues for the quarter ended March 31, 2005, were $1.8 million as compared to revenues of $4.7 million in the first quarter of 2004. Revenues in the quarter were lower than expected as a result of contracting delays on two significant projects. Recognizable revenue from contract services was $0.8 million, compared to $3.6 million year-over-year. License revenues from sales of the Company's NEXTMap database during the quarter were $1.0 million, compared to $1.2 million for the first quarter of 2004. Intermap reported a net loss for the quarter of $2.5 million, or ($0.15) per share, as compared to a net loss of $0.6 million, or ($0.05) per share in Q1 of 2004. "As we stated in our last conference call, we expected our first quarter revenues would signal a low point as we saw new potential contracts in the final stages of approvals," commented Brian Bullock, President and CEO of Intermap. "Based on a new wave of anticipated contract orders, we expect an improvement in contract services revenue in 2005." During the quarter, the Company completed significant projects for two ongoing customers. Revenues associated with the projects are approximately $4 million and are expected to be recognized in 2005. Cash and cash equivalents at March 31, 2005, were $8.7 million, as compared with $3.6 million at December 31, 2004. During the first quarter, Intermap completed a private placement, raising $7.5 million. Intermap issued 2,005,656 units at $3.76 per unit. Each Unit consists of one common share of the Corporation and one common share purchase warrant. Each warrant entitles its holder to purchase one common share for C$5.30 for a period of three years. At March 31, 2005, the Company's working capital was $8.6 million compared with $5.0 million at December 31, 2004. NEXTMap USA progress continued in the first quarter. In spite of difficult weather in California, data collection to date is now more than 82% complete for the state. Intermap has now also completed data collection for the entire state of Florida. Data from both states will be on sale this summer as originally forecasted. As of the end of the first quarter, the Company had invested more than $11.7 million into NEXTMap USA, collecting data covering more than 720,000 square kilometers of the continental United States. Intermap embarked on NEXTMap USA in 2004 to generate a 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. The cost of production for NEXTMap USA has currently reduced by more than 50% when compared with the costs of previously completed NEXTMap Britain. The Company expects continued reductions throughout 2005. Intermap's NEXTMap business model is based on building archived databases of complete national digital elevation and terrain maps, then licensing the data to multiple customers for varied applications. NEXTMap revenues partially offset occasional declines in contract services revenue, and are expected to eventually make up the majority of Intermap's revenues. Funding the build out of the NEXTMap database is partially provided by the Company's contract services work. 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 from its past traditional contract services model. "Our progress on funding NEXTMap USA has been excellent. Enthusiasm among our U.S. customers continues to grow. We previously secured a customer that has contracted to purchase the entire coastline of the U.S. for $5.5 million. In addition, we have recently received interest from three other large customers to purchase the entire NEXTMap USA database over a period of four years. Successfully closing these large contracts will fund more than a third of the cost of NEXTMap USA," commented Mr. Bullock. The automotive sector took notice of the NEXTMap database potential in the first quarter as Intermap generated interest at the Society of Automobile Engineers (SAE) 2005 World Congress conference in April. Three dimensional road data supports several areas in the emerging market for Intelligent Transportation Systems (ITS) and active safety in the automotive sector. The industry is showing indications of increasing interest and anticipates future technology funding within this space. "There is no question that active safety is the new buzz in the industry and that 3D roads will have a prominent role to play in this enormous market," said Mr. Bullock. "We know that we can meet or exceed the ITS industry's accuracy requirements and look forward to promoting our products in this new market." Intermap also continues R&D work to maintain a leading edge over its technology peers. During the second quarter, the Company received recognition from the Canadian Government's National Research Council -- Industrial Research Assistance Program (NRC-IRAP), with a contribution of C$454,000 for further research and development of the company's X and P-band radar technology, which is used for digitally mapping three-dimensional images of the earth's surface. Brian Bullock explains: "In heavily treed areas, where the ground is obscured by dense vegetation, we need to see through the trees to get a bare-earth view. P-band IFSAR, because of its long wavelength, provides the capability of a direct measurement method of resolving heavy vegetation at the data collection point for NEXTMap applications." The Company concluded its annual general meeting on May 11, 2005. At the meeting, Brian L. Bullock, Richard D. Tingle, Edward S. Evans III, Dr. Craig Marks, Donald R. Gardner, Larry G. Garberding and Jerald S. Howe, Jr., the Company's nominees, were elected to the Board of Directors. KPMG LLP was re-appointed auditor of the Company, and the shareholders approved the share compensation plan for outside directors that was detailed in the Information Circular. Conference Call A conference call to review the results will take place today, May 16, at 4:45pm, ET (2:45pm 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 To participate in the call, please dial 416-695-9702 or 1-888-333-4519 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through May 27. Please dial 416-695-5275 or 1-888-509-0081 to listen to the rebroadcast. After this date, the recorded call will be available at 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 280 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 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 United States dollars, except per share information) ------------------------------------------------------------------------ ------------------------------------------------------------------------ 3 months 3 months ended ended March 31, March 31, 2005 2004 ------------------------------------------------------------------------ (unaudited) (unaudited) Revenue: Contract services $ 837 $ 3,550 Multi-client data licenses 952 1,199 ------------------------------------------------------------------------ 1,789 4,749 Operating costs: Cost of services 615 2,018 Research and development 261 238 Sales, general and administration 2,233 2,295 Depreciation of property and equipment 795 549 Amortization of multi-client data library 351 163 ------------------------------------------------------------------------ 4,255 5,263 ------------------------------------------------------------------------ Loss before interest and income taxes (2,466) (514) Interest expense (52) (68) Interest income 11 17 ------------------------------------------------------------------------ Loss before income taxes (2,507) (565) Income taxes - current - 22 ------------------------------------------------------------------------ Net loss (2,507) (587) Deficit, beginning of period: As previously reported (12,089) (7,152) Adjustment to reflect the change in accounting for stock-based compensation - (492) ------------------------------------------------------------------------ As restated (12,089) (7,644) ------------------------------------------------------------------------ Deficit, end of period $ (14,596) $ (8,231) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Loss per share: Basic and diluted $ (0.15) $ (0.05) ------------------------------------------------------------------------ ------------------------------------------------------------------------ INTERMAP TECHNOLOGIES CORPORATION Consolidated Balance Sheets (In thousands of United States dollars) ------------------------------------------------------------------------ ------------------------------------------------------------------------ March 31, December 31, 2005 2004 ------------------------------------------------------------------------ Assets (unaudited) Current assets: Cash and cash equivalents $ 8,675 $ 3,581 Amounts receivable 1,451 3,686 Unbilled revenue 897 900 Work in process 550 - Prepaid expenses 418 405 ------------------------------------------------------------------------ 11,991 8,572 Property and equipment 15,433 15,867 Multi-client data library 14,372 11,499 Future income taxes 18 18 Long-term investments 359 403 ------------------------------------------------------------------------ $ 42,173 $ 36,359 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 2,647 $ 2,880 Deferred lease inducements 134 126 Deferred revenue 71 52 Current portion of obligations under capital lease 246 308 Current portion of long-term debt 325 200 ------------------------------------------------------------------------ 3,423 3,566 Deferred lease inducements 288 332 Obligations under capital lease 293 346 Long-term debt 572 367 Non-controlling interest 14 14 ------------------------------------------------------------------------ 4,590 4,625 Shareholders' equity: Share capital 46,090 37,672 Contributed surplus 1,285 1,085 Deficit (14,596) (12,089) Cumulative translation adjustment 4,804 5,066 ------------------------------------------------------------------------ 37,583 31,734 ------------------------------------------------------------------------ $ 42,173 $ 36,359 ------------------------------------------------------------------------ ------------------------------------------------------------------------ INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Cash Flows (In thousands of United States dollars) ------------------------------------------------------------------------ ------------------------------------------------------------------------ 3 months 3 months ended ended March 31, March 31, 2005 2004 ------------------------------------------------------------------------ (unuadited) (unaudited) Cash and cash equivalents provided by (used in): Operations: Net loss $ (2,507) $ (587) Items not involving cash: Depreciation of property and equipment 795 549 Amortization of multi-client data library 351 163 Amortization of deferred financing charges - 1 Compensation expense 132 70 Deferred lease inducements (33) - Change in non-cash operating working capital 1,460 1,440 ------------------------------------------------------------------------ 198 1,636 Financing: Proceeds from issuance of common shares 8,642 16,229 Security issuance costs (156) (1,084) Proceeds (repayment) of long-term debt, net 330 (103) Repayment of obligations under capital lease (117) (73) Repayments of bank loan - (894) ------------------------------------------------------------------------ 8,699 14,075 Investments: Purchase of property and equipment (859) (1,328) Investment in multi-client data library (2,866) (1,141) Proceeds on disposal of long-term investments 41 46 ------------------------------------------------------------------------ (3,684) (2,423) Effect of foreign exchange rate on cash (119) 41 ------------------------------------------------------------------------ Increase in cash and cash equivalents 5,094 13,330 Cash and cash equivalents, beginning of period 3,581 1,197 ------------------------------------------------------------------------ Cash and cash equivalents, end of period $ 8,675 $ 14,527 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Supplemental cash flow information: Interest paid $ 51 $ 68 ------------------------------------------------------------------------ ------------------------------------------------------------------------ FOR FURTHER INFORMATION PLEASE CONTACT: E.vestor Communications Inc. Corbet Pala Investor Relations (416) 657-2400 or Intermap Technologies Richard Mohr Chief Financial Officer (303) 708-0955, Ext. 214 Email: Website: or UNITED STATES Genesis Select Corporation Budd Zuckerman Investor Relations (303) 415-0200