Calgary, Alberta - November 14, 2005. Intermap Technologies Corporation (the "Company") (TSX:IMP), today reported third quarter results for the three and nine month periods ended September 30, 2005. (The Company has historically prepared its consolidated financial statements in Canadian dollars. As a result of the continued expansion of the Company's US operations, a significant and growing US customer base, and because the majority of its global revenue and assets are denominated in US dollars, the Company elected to adopt the US dollar as its reporting currency effective January 1, 2005. The financial information for all periods has been translated into the new reporting currency. All amounts in this news release are in US dollars unless otherwise noted.)
Brian Bullock, President & CEO of Intermap stated, "Intermap has entered a new phase in its growth plan following several significant developments since our last quarterly report. Most notably, we are accelerating our monumental NEXTMap USA project from a 5-year build plan to a 3-year build plan as the project is now fully funded following the closing of an C$80 million ($68 million) financing. In addition, three early customer commitments have been received for national purchases of the NEXTMap USA data totaling $28 million. Our vision to remap the entire United States and Europe in three dimensions at sub-meter accuracy is quickly becoming a reality. The NEXTMap products will be the most accurate national maps in existence. Ownership of this dataset is viewed as a tremendously valuable asset."
Intermap's NEXTMap business model is based on building geospatial databases of complete national digital elevation and terrain maps, then licensing the data to multiple customers for varied applications.
Third Quarter Financial Results
Revenues increased for the quarter ended September 30, 2005, to $5.1 million as compared to revenues of $4.8 million in the third quarter of 2004. Total contract services revenue increased to $4.0 million from $2.5 million and license revenues from sales of the Company's NEXTMap database were $1.2 million compared to $2.3 million for the third quarters of 2005 and 2004, respectively. Intermap reported a net loss for the quarter of $939,000, or ($0.05) per share, as compared to a net loss of $671,000, or ($0.04) per share, in the third quarter of 2004.
Cash and cash equivalents at September 30, 2005, were $1.3 million, compared with $3.6 million at December 31, 2004. At September 30, 2005, the Company's working capital was $3.3 million, compared with $5.0 million at December 31, 2004.
NEXTMap USA Fully Funded
On November 3, 2005, the Company completed a C$80 million ($68 million) financing. In addition, the financing provides for an over-allotment option of approximately C$12 million ($10 million) that must be exercised within thirty days from the date of closing. The funds raised in this financing will enable Intermap to accelerate completion of the NEXTMap USA program to three years and to commence its NEXTMap Europe initiative. Data collection will begin in Germany in 2006 to address immediate interest in three dimensional road data for automotive applications by German car companies. NEXTMap data provides many benefits to customers for numerous applications.
"This funding was important to our NEXTMap program and we thank our investors for sharing our vision," said Mr. Bullock. "We had investor participation in Canada, the US and Europe. Investor interest is being driven by the recognition of momentum within the Intelligent Transportation Systems (ITS) markets for active safety in automobiles, and also by the increasing applications and demand for online mapping information as demonstrated by the success of Google Earth and Microsoft's upcoming MSN Virtual Earth product. Location based services is predicted to be the next major information utility and accurate mapping data is at the core of success with new applications and services."
California, Florida Maps Completed; Other USA Blocks Collected
Progress on NEXTMap USA continued in the third quarter as the Company completed acquisition and processing of more than 216,000 square kilometers of NEXTMap USA data. The acquisition and processing of data in the states of California, Florida and Mississippi is now substantially complete with large portions of data currently available for sale in each of these areas. All of the state of Hawaii was also recently collected, along with areas in Texas and Oklahoma.
Intermap now owns blocks of data in the following states: Alabama, Arizona, California, Florida, Louisiana, Hawaii, Michigan, Mississippi, Oklahoma, Texas and West Virginia.
Significant investment has been made into building the Company's NEXTMap USA database. At over 400,000 square kilometers, California is the largest single region acquired thus far under the NEXTMap program. For the NEXTMap USA project since its inception, approximately 1,260,000 square kilometers of data have been acquired or approximately 16% of the project. At the end of the third quarter, the Company had invested more than $18 million into its NEXTMap USA project.
To most efficiently acquire data during the upcoming winter season, the Company's aircraft will concentrate on acquiring data primarily on over-seas contract services work, with only a limited amount of data collection taking place on the NEXTMap USA project during this period of time. However, additional NEXTMap USA data will continue to become available during this period as data finishing on previously acquired data is completed and added to the database available for sale.
NEXTMap USA Data Sales Increase to NOAA
Intermap is licensing its terrain data and radar imagery of the Hawaiian Islands to the National Oceanic & Atmospheric Administration (NOAA). The data will also be licensed to all state and local agencies within the state of Hawaii. Over the last year, Intermap has sold coastal data of the continental United States to NOAA providing NEXTMap USA imagery and elevation map data for regions in Florida, Alabama, Louisiana and Mississippi. The sales have been part of a planned multi-year purchase program that is anticipated will result in the sale of NEXTMap coastal data for the entire continental United States.
Intelligent Transportation Systems Demanding 3D Road Data
Interest in three dimensional road data for automobile navigation and active safety applications is increasing. Intermap executives have met with more than thirty companies within this market space in 2005. Based on interest from car manufacturers in the US and Germany, Intermap has now collected data in both Michigan and Germany. Blocks of data in California, Michigan and Mississippi were recently tested for road centerline accuracy to address requirements demanded by the automotive industry applications. The results surpassed the requirements in all areas.
Brian Bullock explained the interest in accurate road data for active safety applications: "Today's automobiles are very safe. Car manufacturers have done about all they can with technology to prevent injury in the event of an automobile accident. Airbags, crumple zones, stability control and ABS brakes, for example, are standard on most cars today. These are all examples of passive safety technology for a vehicle that is involved in an accident. The next step automobile manufactures are taking is active safety applications to prevent accidents from happening in the first place. A vehicle computer's accurate knowledge of the road ahead and its slope is critical for many active safety applications. Many concept cars already have the technology for active safety installed. What's missing for increased effectiveness is the necessary roadmap data. We are creating that data."
Strategic Partnerships - Harman/Becker Automotive Systems GmbH
As a result of significant interest from the automotive sector in the NEXTMap database, Intermap recently signed a development agreement with Harman/Becker for three dimensional road navigation and active safety applications. Combining Harman/Becker's innovative automotive systems knowledge with Intermap's highly accurate geospatial databases will provide the resources to develop advanced three dimensional car navigation applications and to meet market demand for more intuitive navigation systems and advanced vehicle safety systems. "The sense of urgency that we witnessed at Harman Becker and other companies, led us to put Germany on our manifest for 2006," said Brian Bullock. "Enhancements to navigation systems could use this data as early as 2007 in certain markets."
Telecom Industry Leveraging NEXTMap Data
NEXTMap Britain data is now being utilized in the UK by telecommunications companies to assist in network planning. Five mobile communications companies have licensed NEXTMap data for various areas of the UK. Engineering applications include creating and analyzing virtual maps, which determine optimal cellular tower location for the most effective spectrum transmissions over a particular area with a single tower. This improves network performance and reduces the number of towers required. It has demonstrated dramatic savings for telecom companies. The successful UK experience is expected to result in similar adoption by American cellular operators as NEXTMap USA data becomes available.
NEXTMap Britain Data Supports Commercial Flood Mapping in UK
As previously announced, Intermap signed a royalty agreement with Norwich Union to use NEXTMap Britain data linked to the commercialization of the UK insurer's flood map of Britain. This agreement is a significant step in making the innovative flood map available both to the public and other commercial interests. "The ongoing relationship with Intermap secured by this agreement is important as we move towards the commercialization of this valuable and innovative data asset," stated Brian Richards, director of Norwich Union's data services.
The need for more accurate flood risk assessment became evident in October 2000, when floods that took place in the UK cost the insurance industry one billion pounds sterling. In England and Wales, around five million people in two million properties live in areas of flood risk. In 2002, Norwich Union partnered with Intermap to capture elevation data of the whole of England, Wales and southern Scotland. This data will be the foundation for Norwich Union's flood hazard mapping efforts moving forward. Providing more accurate and realistic insurance quotes not only lessens the risk on the insurance company itself, but also provides customers with fairer quotes.
NEXTMap USA Data Supporting Hurricane Katrina Rebuilding Efforts
Intermap's experience at providing effective flood mapping data in Britain is being utilized in the USA following the devastation of Hurricane Katrina. Intermap has provided the Federal Emergency Management Agency (FEMA), the United States Geological Survey (USGS) and NOAA with terrain elevation and imagery data of the Gulf Coast region for the Katrina rebuilding effort. The data was made available to state, local and federal officials at no charge through 2005. In addition to the pre-hurricane data, Intermap completed the collection of post-hurricane data over the hardest hit regions of the Gulf Coast.
Conference Call
A conference call to review the results will take place today, November 14, at 11:00 a.m., ET (9:00 am 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 416-695-6623 or 1-888-280-8771 approximately 10 minutes prior to the conference call. A live audio webcast of the teleconference will also be available on Intermap's website (www.intermap.com).
A recording of the conference call will be available through November 21. Please dial 416-695-5275 or 1-888-509-0081 to listen to the rebroadcast. A live audio webcast of the teleconference will also be available on Intermap's website.
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 modeling, 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.
Corbet Pala
E.vestor Communications Inc.
Investor Relations - CANADA
(416) 657-2400
Email: cpala@evestor.com
Richard Mohr
Intermap Technologies
Chief Financial Officer
(303) 708-0955, Ext. 214
Email: rmohr@.intermap.com
Budd Zuckerman
Genesis Select Corporation
Investor Relations - UNITED STATES
(303) 415-0200
Email: bzuckerman@genesisselect.com
INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Operations and Deficit (In thousands of United States dollars, except per share information)
------------------------------------------------------------------------ ------------------------------------------------------------------------ 3 months 3 months 9 months 9 months ended ended ended ended September September September September 30, 2005 30, 2004 30, 2005 30, 2004 ------------------------------------------------------------------------ (unaudited) (unaudited) (unaudited) (unaudited)
Revenue: Contract services $ 3,952 $ 2,480 $ 7,630 $ 10,488 Multi-client data licenses 1,171 2,282 3,057 4,262 ------------------------------------------------------------------------ 5,123 4,762 10,687 14,750 Operating costs: Cost of services 1,297 1,813 3,425 5,683 Research and development 569 280 1,383 790 Sales, general and administration 2,764 2,573 7,556 7,293 Depreciation of property and equipment 890 558 2,525 1,559 Amortization of multi- client data library 508 204 1,104 574 Gain on disposal of property and equipment (8) - (8) - ------------------------------------------------------------------------ 6,020 5,428 15,985 15,899
Loss before interest and income taxes (897) (666) (5,298) (1,149)
Interest expense (48) (32) (135) (127) Interest income 6 27 45 105
------------------------------------------------------------------------ Loss before income taxes (939) (671) (5,388) (1,171)
Income taxes - current - - - 29 ------------------------------------------------------------------------ Net loss (939) (671) (5,388) (1,200)
Deficit, beginning of period: As previously reported (16,538) (8,173) (12,089) (7,152) Adjustment to reflect the change in accounting for stock- based compensation - - - (492) ------------------------------------------------------------------------ As restated (16,538) (8,173) (12,089) (7,644)
------------------------------------------------------------------------ Deficit, end of period $(17,477) $ (8,844) $(17,477) $ (8,844) ------------------------------------------------------------------------ ------------------------------------------------------------------------
Loss per share Basic and fully diluted loss per share $ (0.05) $ (0.04) $ (0.31) $ (0.08) ------------------------------------------------------------------------ ------------------------------------------------------------------------
INTERMAP TECHNOLOGIES CORPORATION Consolidated Balance Sheets (In thousands of United States dollars)
------------------------------------------------------------------------ ------------------------------------------------------------------------
September 30, December 31, 2005 2004 ------------------------------------------------------------------------ Assets (unaudited)
Current assets: Cash and cash equivalents $ 1,300 $ 3,581 Amounts receivable 4,364 3,686 Unbilled revenue 998 900 Prepaid expenses 435 405 ------------------------------------------------------------------------ 7,097 8,572
Property and equipment 14,293 15,867
Multi-client data library 20,958 11,499
Future income taxes 18 18
Long-term investments 330 403 ------------------------------------------------------------------------ $ 42,696 $ 36,359 ------------------------------------------------------------------------ ------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities: Accounts payable and accrued liabilities $ 2,791 $ 2,880 Deferred lease inducements 137 126 Deferred revenue 159 52 Current portion of obligations under capital lease 213 308 Current portion of long-term debt 531 200 ------------------------------------------------------------------------ 3,831 3,566
Deferred lease inducements 228 332
Obligations under capital lease 188 346
Long-term debt 1,905 367
Non-controlling interest 14 14 ------------------------------------------------------------------------ 6,166 4,625
Shareholders' equity: Share capital 46,282 37,672 Contributed surplus 1,530 1,085 Deficit (17,477) (12,089) Cumulative translation adjustment 6,195 5,066 ------------------------------------------------------------------------ 36,530 31,734 Subsequent event
------------------------------------------------------------------------ $ 42,696 $ 36,359 ------------------------------------------------------------------------ ------------------------------------------------------------------------
INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Cash Flows (In thousands of United States dollars)
------------------------------------------------------------------------ ------------------------------------------------------------------------ 3 months 3 months 9 months 9 months ended ended ended ended September September September September 30, 2005 30, 2004 30, 2005 30, 2004 ------------------------------------------------------------------------ (unaudited) (unaudited) (unaudited) (unaudited)
Cash and cash equivalents provided by (used in):
Operations: Net loss $ (939) $ (671) $ (5,388) $ (1,200) Items not involving cash: Depreciation of property and equipment 890 558 2,525 1,559 Amortization of multi- client data library 508 204 1,104 574 Amortization of deferred financing charges - 7 - 8 Gain on disposal of property and equipment (8) - (8) - Compensation expense 147 123 414 313 Deferred lease inducements (34) - (100) - Non-controlling interest - 21 - 21 Future income tax - 5 - 5 Change in non-cash operating working capital (687) 920 (646) (416) ------------------------------------------------------------------------ (123) 1,167 (2,099) 864 ------------------------------------------------------------------------
Financing: Proceeds from issuance of common shares - 38 8,671 16,720 Security issuance costs - - (174) (1,086) Repayment of long-term debt (96) (50) (246) (1,373) Proceeds of long-term debt 1,715 - 2,115 - Repayment of obligations under capital lease (58) (91) (258) (245) Repayments of bank loan - - - (894) ------------------------------------------------------------------------ 1,561 (103) 10,108 13,122 ------------------------------------------------------------------------
Investments: Purchase of property and equipment (26) (2,034) (1,589) (4,890) Investment in multi-client data library (2,852) (1,620) (8,626) (4,067) Proceeds on disposal of long-term investment - - 81 91 Proceeds on disposal of property and equipment 16 - 16 - ------------------------------------------------------------------------ (2,862) (3,654) (10,118) (8,866) ------------------------------------------------------------------------
Effect of foreign exchange rate on cash 118
------------------------------------------------------------------------ Increase (decrease) in cash and cash equivalents (1,306) (1,950) (2,281) 5,443
Cash and cash equivalents, beginning of period 2,606 8,590 3,581 1,197
------------------------------------------------------------------------ Cash and cash equivalents, end of period $ 1,300 $ 6,640 $ 1,300 $ 6,640 ------------------------------------------------------------------------ ------------------------------------------------------------------------
Supplemental cash flow information: Interest paid $ 48 $ 24 $ 135 $ 131 ------------------------------------------------------------------------ ------------------------------------------------------------------------