NEXTMap USA fully funded; California, Florida, Hawaii, Mississippi completed; Detroit and Germany mapped for automotive market; ITS partnerships signed; NEXTMap sales contribute 30% of revenues
Calgary, Alberta - March 23, 2006. Intermap Technologies Corporation (the "Company") (TSX:IMP), today reported fourth quarter and year-end results for the period ended December 31, 2005.
A slide presentation accompanies Intermap's conference call today at 11:00 am., EDT (9:00am MDT). Please download the presentation "Quarterly Call_Mar23_06" to your computer now, ahead of the call. It is available at ftp1.intermaptechnologies.com (copy and paste into your browser).
Username: Client03
Password: q76qb6p0 (Password is case sensitive)
For security reasons this FTP site will be active until 4/7/2006.
To participate in the call, please dial 416-695-7848 or 1-800-565-0813 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through March 30. Please dial 416-695-5275 or 1-888-509-0081 and provide the verbal password, "617230" to listen to the rebroadcast. An audio webcast of the teleconference will also be available on Intermap's website.
Intermap's NEXTMap business model is based on building 3D digital maps of whole countries, generating comprehensive, current, accurate and affordable digital elevation and image datasets which are then licensed to multiple customers for varied applications. Currently, Intermap's NEXTMap coverage includes Great Britain, Indonesia, Jamaica, Puerto Rico, Solomon Islands and Vanuatu with the United States program well underway. Further expansion plans for 2006 include the mapping of Germany and significant portions of the population centers of the U.S. as well as additional areas in Southeast Asia.
Brian Bullock, president & CEO of Intermap stated, "The year 2005 was our most progressive year for our NEXTMap programs from every perspective. Substantial progress was made in both NEXTMap licensing contracts and joint development arrangements. As of the end of the year we had completed 16% of NEXTMap USA and we expect to complete the entire project in 2008. The NEXTMap USA dataset will be the most accurate national maps in existence and a tremendously valuable asset."
Fourth Quarter and Year-End Financial Results
In November 2005, the Company closed a significant financing which changed the primary economic environment in which the entity operates. As a result, the Company changed its measurement currency effective October 1, 2005, from Canadian dollars to U.S. dollars.
All amounts in this news release are in U.S. dollars unless otherwise noted.
Revenues increased 126% for the fourth quarter ended December 31, 2005, to $4.3 million as compared to revenues of $1.9 million in the fourth quarter of 2004. Total contract services revenue increased to $2.9 million from $0.9 million and license revenues from sales of the Company's NEXTMap database were $1.4 million compared to $1.0 million for the fourth quarters of 2005 and 2004, respectively. In 2005, Intermap sold data from its NEXTMap archive of several different countries, including England, Wales, Scotland, the U.S. and Indonesia. Intermap reported a decreased net loss for the quarter of $1.2 million, or ($0.04) per share, as compared to a net loss of $3.2 million, or ($0.21) per share, in the fourth quarter of 2004.
For 2005, Intermap reported revenues of $15.0 million as compared to $17.0 in 2004. Both contract services revenue and license revenues decreased slightly from 2004, however management expects both revenue sources to increase in 2006 as additional NEXTMap USA data becomes available and contract services revenue opportunities increase. Intermap reported a net loss for 2005 of $6.5 million, or ($0.32) per share, as compared to a net loss of $4.4 million, or ($0.30) per share, in 2004.
Cash and cash equivalents at December 31, 2005, were $63.5 million, compared with $3.6 million at December 31, 2004. At December 31, 2005, the Company's working capital was $64.7 million, compared with $5.0 million at December 31, 2004.
On November 3, 2005, the Company completed a C$80 million ($68 million) financing. In addition, on March 20, 2006, Intermap announced the receipt of a further C$12.5 million ($10.8 million) from the exercise of warrants related to a 2004 private placement. This capital enables Intermap to accelerate completion of the NEXTMap USA program from five years to three years and to commence its NEXTMap Europe initiative. Data collection has commenced in Germany to address immediate interest in 3D road data for automotive applications by German automobile companies.
"This capital is important to our NEXTMap program and we thank our investors for sharing our vision," said Mr. Bullock. "We had investor participation in Canada, the U.S. and Europe. Investor interest is being driven by the recognition of the opportunities for use of 3D map data in automobile markets. and also by the increasing applications and demand for online mapping information. Location-based services are predicted to be the next major information utility, and attractive 3D visuals will be a key factor in the success with these new applications and services."
NEXTMap USA Accelerated, Costs Reduced
In addition to the whole state databases of California, Florida, Hawaii and Mississippi which are now complete, the NEXTMap USA database also includes blocks of data for Alabama, Arizona, Louisiana, Michigan, New Mexico, Oklahoma, Texas and West Virginia. In 2006, Intermap plans to map areas in Texas, New Mexico, a large portion of the highly populated area of the northeast U.S. and other key areas driven by customer demands. By the end of the year, more than 25% of the U.S. is expected to be available for sale.
At the end of 2005, Intermap had invested more than $21 million into its NEXTMap USA program. Also in 2005, Intermap was able to reduce the cost of acquisition significantly, while increasing the rate of acquisition and the accuracy of the data. The average cost for NEXTMap USA in 2005 was $14 per square kilometer as compared to $35 per square kilometer achieved with NEXTMap Britain--a 60% reduction.
NEXTMap California Completed
At over 423,000 square kilometers, California is the largest single region acquired thus far under the NEXTMap program. This is the most accurate 3D color map of California in existence and includes terrain models and orthorectified color imagery. Immediate license sales have been made to California utilities, local governments and commercial entities bringing the total NEXTMap California sales to date to $1.3 million. California was an important state for Intermap to complete, given its large economy and diverse landscape.
NEXTMap USA National Purchase Commitments
Over the course of 2005, Intermap entered into contracts to buy initial areas within the NEXTMap USA project with the National Oceanic and Atmospheric Administration (NOAA), the National Geospatial-Intelligence Agency (NGA) and the U. S. Department of Agriculture (USDA). These national buyers plan to purchase approximately $28 million of data collectively, subject to the availability of funding in their annual budgets.
NEXTMap Germany Launched - Partnerships Signed
Data collection of NEXTMap Europe has now begun with Germany, which will be completed in 2006. Intermap is partnering with GeoContent GmbH, the only company with a countrywide digital aerial image of Germany, to develop the most accurate and highest quality nationwide 3D imagery dataset ever produced for Germany. The existing GeoContent imagery will be geo-referenced and "draped" over Intermap's digital terrain model.
The first blocks collected in Germany address immediate interest in 3D road data for automotive applications by German car companies. Intermap has signed two different joint development agreements within the German automotive industry. The agreements combine the automotive engineering and development expertise of leading German automotive companies with Intermap's highly accurate geospatial databases. The agreements first concentrate on developing advanced 3D road data applications for both visualization and performance improvements.
Market Momentum - Intelligent Transportations Systems (ITS)
Interest in 3D road data for automobile navigation and active safety applications is increasing. Intermap executives met with more than forty companies within this market space in 2005. Based on interest from vehicle manufacturers in the U.S. and Germany, Intermap has now collected data in both Michigan and Germany. Blocks of data in California, Michigan and Mississippi were tested for road centerline accuracy to address requirements demanded by the automotive industry applications. The results met or surpassed the requirements in all areas.
Intermap's NEXTMap 3D road vector data can improve ITS applications such as vehicle engine control, which can save on vehicle operating costs including fuel and insurance. Improvements in fuel economy through adaptive cruise control, translate directly to reduced costs of operation, as well as reduced greenhouse gas emissions.
Intermap ITS Team Strengthened
To strengthen its ability to serve the ITS markets, Intermap hired a director of ITS business development, Mary Michno, who has held management positions at automobile manufacturers, including Ford and General Motors, and automotive industry suppliers, including NAVTEQ, Eaton, Denso and Knight Industries.
Intermap also established a six member automotive executive advisory board to guide and assist Intermap in its efforts to support new markets and customers in the ITS industry. Collectively the membership of Intermap's ITS advisory board has many years of diverse executive-level experience in the automotive industry. This advisory board will provide Intermap with valuable expertise and knowledge as it expands its product and service offerings to new markets within this industry.
LOI with Tele Atlas
Intermap recently signed a Letter of Intent (LOI) with Tele Atlas for the co-development of highly accurate 2D and 3D digital road maps for the vehicle navigation market. This is an important step in addressing the growing demand for emerging ITS applications. Tele Atlas 2D digital map data is already behind some of the world's leading portable, online and vehicle navigation devices and applications.
Because the NEXTMap database contains the most accurate national maps in existence, it can be utilized to evolve today's 2D data to accurate 3D information that will provide the automotive industry with more accurate, visually aesthetic and effective automotive applications.
NEXTMap Italy Block Collected for Olympics
The applications for NEXTMap data are limited only by the imagination. During the year, Intermap was commissioned to map parts of Italy, including the Olympic sites in Turin. As part of an eventual NEXTMap Italy dataset, the Turin terrain maps were used by various media during the 2006 Olympic Winter Games, providing stunning, highly accurate 3D color maps of the region.
NEXTMap Britain Data Supports Telecom and Flood Insurance in U.K.
NEXTMap Britain sales to date total over $12.0 million. Sales to governments continued in 2005 with the signing of the Company's first recurring revenue contract. Telecom companies opted to purchase lower resolution products from Intermap for a discounted price lowered revenue per sale.
During 2005 Intermap signed a royalty agreement with Norwich Union to use NEXTMap Britain data linked to the commercialization of the U.K. insurer's flood map of Britain. 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.
Contract Services Business Increasing
Intermap continues to execute projects outside the US and Europe on a fee for service basis. Margins on these projects help support NEXTMap builds and reduce the draw on Intermap's cash holdings.
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.
About Intermap
Intermap is digitally remapping entire countries, building unprecedented national databases, called NEXTMap. NEXTMap consists of highly accurate digital elevation data, accurate color images and other derived products. Customers purchase Intermap's high-quality, low-cost data to facilitate better decision-making for numerous commercial, governmental, military and consumer applications.
Demand for NEXTMap data is growing as new commercial applications are emerging such as intelligent transportation systems, flood risk management, disaster mitigation, 3D visualization and Internet mapping. These new markets supplement growth in mainstream markets like geographical information systems (GIS), engineering planning, transportation, irrigation, environmental management, and telecommunications network planning. Internet applications in the future will include virtual tours, education, location based services and computer games. The products are also used to add 3D to and improve the accuracy of 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.
INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Operations and Deficit (In thousands of United States dollars, except per share information) --------------------------------------------------------------------- --------------------------------------------------------------------- Year ended Year ended December 31, 2005 December 31, 2004 ---------------------------------------------------------------------
Revenue: Contract services $ 10,575 $ 11,658 Multi-client data licenses 4,433 5,343 --------------------------------------------------------------------- 15,008 17,001
Operating costs: Cost of services 5,026 7,007 Research and development 1,848 1,061 Sales, general and administration 10,673 9,827 Depreciation of property and equipment 3,530 2,174 Amortization of multi-client data library 1,600 846 --------------------------------------------------------------------- 22,677 20,915
--------------------------------------------------------------------- Loss before other expense (income) and income taxes (7,669) (3,914)
Other expense (income): Interest expense 184 151 Interest income (360) (116) Loss (gain) on foreign currency translation (974) 518 Non-controlling interest - (9) --------------------------------------------------------------------- (1,150) 544
--------------------------------------------------------------------- Net loss before income taxes (6,519) (4,458)
Income taxes: Current (recovery) 35 (15) Future (recovery) (5) 2 --------------------------------------------------------------------- 30 (13)
--------------------------------------------------------------------- Net loss (6,549) (4,445)
Deficit, beginning of year: 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 year $(18,638) $(12,089) --------------------------------------------------------------------- ---------------------------------------------------------------------
Loss per share: Basic and diluted $ (0.32) $ (0.30) --------------------------------------------------------------------- ---------------------------------------------------------------------
INTERMAP TECHNOLOGIES CORPORATION Consolidated Balance Sheets (In thousands of United States dollars) --------------------------------------------------------------------- --------------------------------------------------------------------- December 31, December 31, 2005 2004
Assets
Current assets: Cash and cash equivalents $ 63,492 $ 3,581 Amounts receivable 2,259 3,686 Unbilled revenue 2,270 900 Prepaid expenses 443 405 --------------------------------------------------------------------- 68,464 8,572
Property and equipment 13,340 15,867
Multi-client data library 23,015 11,499
Future income taxes 23 18
Long-term investments 281 403 --------------------------------------------------------------------- $ 105,123 $ 36,359 --------------------------------------------------------------------- ---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities: Accounts payable and accrued liabilities $ 2,641 $ 2,880 Deferred lease inducements 128 126 Deferred revenue 153 52 Income taxes payable 35 - Current portion of obligations under capital leases 212 308 Current portion of long-term debt 552 200 --------------------------------------------------------------------- 3,721 3,566
Deferred lease inducements 212 332
Obligations under capital leases 134 346
Long-term debt 1,760 367
Non-controlling interest 14 14 --------------------------------------------------------------------- 5,841 4,625
Shareholders' equity: Share capital 109,264 37,672 Contributed surplus 2,462 1,085 Deficit (18,638) (12,089) Cumulative translation adjustment 6,194 5,066 --------------------------------------------------------------------- 99,282 31,734
--------------------------------------------------------------------- $ 105,123 $ 36,359 --------------------------------------------------------------------- ---------------------------------------------------------------------
INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Cash Flows (In thousands of United States dollars) --------------------------------------------------------------------- --------------------------------------------------------------------- Year ended Year ended December 31, 2005 December 31, 2004 ---------------------------------------------------------------------
Cash and cash equivalents provided by (used in):
Operations: Net loss $ (6,549) $ (4,445) Items not involving cash: Depreciation of property and equipment 3,530 2,174 Amortization of multi-client data library 1,600 846 Stock compensation expense 661 501 Gain on sale of property and equipment (8) - Amortization of deferred lease inducements (126) - Future income taxes (5) 3 Non-controlling interest - 9 Amortization of deferred financing charges - 8 Change in non-cash operating working capital (44) 2,686 --------------------------------------------------------------------- (941) 1,782
Financing: Issuance of common shares 76,531 16,765 Securities issuance costs (4,256) (1,086) Deferred lease inducements - 458 Proceeds of long-term debt 2,115 - Repayment of long-term debt (370) (1,423) Repayments of bank loan - (894) Repayment of obligations under capital leases (313) (356) --------------------------------------------------------------------- 73,707 13,464
Investments: Purchase of property and equipment (1,902) (6,283) Investment in multi-client data library (10,918) (7,001) Proceeds on sale of property and equipment 16 - Proceeds on disposal of long-term investments 122 91 --------------------------------------------------------------------- (12,682) (13,193)
--------------------------------------------------------------------- Effect of foreign exchange on cash (173) 331
--------------------------------------------------------------------- Increase in cash and cash equivalents 59,911 2,384
Cash and cash equivalents, beginning of year 3,581 1,197
--------------------------------------------------------------------- Cash and cash equivalents, end of year $ 63,492 $ 3,581 --------------------------------------------------------------------- ---------------------------------------------------------------------
Supplemental cash flow information: Interest paid $ 180 $ 158 --------------------------------------------------------------------- ---------------------------------------------------------------------