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Tuesday, March 6, 2007
CALGARY, Alberta: Intermap Technologies Corporation (the “Company”) (TSX: IMP, AIM: IMAP), today reported financial results for the year ended December 31, 2006. A conference call will be held today to discuss the results.
Financial Review
All amounts in this news release are in U.S. dollars unless otherwise noted.
For 2006, Intermap reported a 46% increase in total revenue to $21.8 million, as compared to total revenue of $15.0 million in 2005. The Multi-Client Data Library (MCDL) revenue component of total revenue grew 51% in 2006 to $6.7 million, from $4.4 million in 2005. Following the completion of NEXTMapà’ California in July of 2005, an increasing amount of MCDL revenue is being derived from NEXTMapà’ USA license sales. In 2006, approximately 76% of the MCDL revenue was associated with the Company's NEXTMapà’ USA program, primarily in the areas of California, Texas, and Arizona.
The contract services revenue component of total revenue in 2006 increased to $15.1 million, compared to $10.6 million for 2005, reflecting an increase in fee-for-service work in Southeast Asia and South America.
Cost of services expense for the year ended December 31, 2006 increased to $7.9 million, compared to $5.0 million in 2005, due to increased contract services work and preparation costs associated with future mapping activities.
Sales, general and administrative expenses for the year ended December 31, 2006 were $19.0 million, compared to $10.7 million for 2005. The increase was related to the overall expansion of the Company's operations to support its NEXTMapà’ USA and NEXTMapà’ Europe programs.
Amortization expense of the MCDL in 2006 increased to $3.1 million, from $1.6 million in 2005, as a result of the increase in amortization on the NEXTMapà’ USA dataset. Amortization of the NEXTMapà’ USA dataset totaled $2.4 million in 2006, versus $0.7 million in 2005.
Intermap reported a net loss of $11.0 million, or ($0.30) per share, compared to a net loss of $6.5 million, or ($0.32) per share in 2005.
Total revenue for Intermap's fourth quarter ended December 31, 2006 was $6.7 million, up 58% from revenue of $4.3 million reported in the fourth quarter of 2005. The increase was primarily a result of the completion of two large contracts in Southeast Asia totaling $3.5 million. A total of $5.5 million of contract services work was performed during the fourth quarter of 2006, compared to $2.9 million for the same period in 2005. Revenue from the Company's NEXTMapà’ programs totaled $1.2 million for the fourth quarter of 2006, compared to$1.4 million in 2005. MCDL revenue during the fourth quarter of 2006 was primarily associated with preliminary sales of recently available NEXTMapà’ USA data.
Cost of services totaled $2.6 million for the fourth quarter of 2006, compared with $1.6 million in the fourth quarter of 2005, reflecting an increase in the costs associated with increased revenue generation and the investment in personnel and equipment to accommodate increased NEXTMapà’ data collection and processing.
Intermap reported a net loss for the fourth quarter of $3.8 million, or ($0.10) per share, as compared to a net loss of $1.2 million, or ($0.04) per share for the same period in 2005.
Cash and cash equivalents at December 31, 2006 were $48.2 million, as compared with $63.5 million at December 31, 2005. The Company's working capital was $51.0 million, compared with $64.7 million at December 31, 2005.
“During the fourth quarter we completed the collection of the entire country of Germany, making it the fourth full country in our European NEXTMap® library. We also added into production another aircraft equipped with our proprietary industry-leading IFSAR airborne data collection system. The new aircraft is capable of collecting approximately 1,500,000 sq. km. (580,000 sq. mi.) of highly-accurate digital elevation data per year,” commented Brian Bullock, president and CEO of Intermap Technologies. “In addition, we secured two substantial contract services projects valued at $5.5 million.”
MultiMedia Computer s.r.o. Acquisition
On March 1, 2007, Intermap acquired the shares and ongoing operations of MultiMedia Computer s.r.o. (MMC). The acquisition enables Intermap to enhance its product offerings from strictly data sales to solution-based sales for specific markets.
“The acquisition of MMC allows us to deliver complete geospatial solutions to our customers and partners within a variety of diverse markets. For example, MMC's technological expertise will help propel Intermap into the emerging recreational PND and advanced driver assistance systems arenas. Additionally, MMC will support our continued efforts to bundle progressive solutions for existing enterprise and government markets,” commented Mr. Bullock.
Web-based 3D Visualization
The enormous growth of Web-based mapping applications is driving an increasing demand for higher quality data that can both improve the user experience and enable new higher value applications. Ultimately, the quality of the data is what will separate providers in this space.
In February 2007, Intermap announced an agreement to provide Microsoft Corp. with its NEXTMapà’ Britain digital elevation data for use within Microsoft's Virtual Earth platform. The agreement enables Microsoft to create and deliver a Live Search Maps product powered by the most current and accurate digital terrain model of Great Britain.
NEXTMapà’ Europe Progress
In 2006, Intermap announced its intention to accelerate its NEXTMapà’ Europe project with the collection of the entire dataset expected to be completed by the end of 2007. Driven by demand within the European automotive, government, and insurance sectors, the final processing and editing of the project is expected to be complete and available for sale shortly thereafter in 2008.
NEXTMapà’ Europe calls for the mapping of 17 European countries, including Austria, Belgium, Czech Republic, Denmark, England, France, Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern Ireland, Portugal, and Spain. England, Scotland, and Wales have already been completed and the data collection of Germany was completed in 2006. Priority of data collection in Europe will be given to areas with the strongest customer demands. Once completed, these datasets will be the most accurate 3D digital maps of Europe in existence.
During 2006, approximately 487,000 square kilometers of data was collected in Europe including all of Germany which is the fourth country mapped in its entirety under the Company's NEXTMapà’ Europe program. “As individual countries are completed during 2007 in Europe, we expect additional revenue opportunities will develop that will increase the overall financial performance of the Company,” stated Mr. Bullock.
NEXTMapà’ USA Progress
During 2005 and 2006, we made significant progress towards the completion of Intermap's largest project, NEXTMapà’ USA. The project includes terrain elevation and imagery data accurate to one-meter or better, covering nearly eight million square kilometers of the United States.
By the end of 2006, Intermap had collected data for the entire states of California, Florida, Mississippi, and Hawaii. Also completed were portions of Alabama, Arizona, Louisiana, Michigan, Nevada, New Mexico, Oklahoma, Oregon, Texas, West Virginia, and Wyoming. Since the inception of the project, approximately 2.1 million (777,000 in 2006) square kilometers of data has been collected. The Company expects to have the collection portion of the NEXTMapà’ USA project completed by the end of 2008. The net book value of the NEXTMapà’ USA data as of December 31, 2006 was $28.1 million.
“Our NEXTMapà’ USA project will continue to ramp-up during 2007 with full capacity expected to be in place during the second quarter,” said Mr. Bullock. “We expect to complete the collection of the project by the end of 2008 with 100% of the fully processed and edited data completed and ready for sale during 2009. As part of this ramp-up, an additional Learjet aircraft was purchased during 2006 and a second King Air aircraft was leased. The second King Air is now at work on NEXTMapà’ USA and the second Learjet is currently being calibrated and certified after being modified to incorporate Intermap's proprietary IFSAR radar system.”
Currently, Intermap has data available off-the-shelf for 512 counties in the U.S. The Company expects a continued increase in license revenues in 2007 as marketing activities generate interest from new NEXTMapà’ USA customers. Through December 31, 2006, total cumulative license revenue for NEXTMapà’USA data was approximately $7.4 million.
Intelligent Transportation Systems (ITS)
Intermap is creating 3D road vector data products to improve ITS applications that will drive active safety devices, improve fuel performance, and enhance in-car navigation. Market interest for ITS applications using Intermap's 3D map data and geometries have been increasing as active safety, advanced car navigation and related applications are developing a larger worldwide focus.
In 2006, Intermap announced agreements with TeleAtlas, Harman Becker, and Siemens VDO to support emerging ITS applications with Intermap's 3D road vector data. These applications will deliver 3D maps and active safety within vehicles to reduce accidents and traffic fatalities. NEXTMapà’ databases will enable automotive electronics to predict what lies ahead and alert drivers of impending hazards. Advance predictions of road geometries will also be an invaluable component of visualization devices, vehicle fuel performance enhancement systems, and advanced driver assistance systems. Intermap is in discussions with other automotive suppliers and manufacturers in Europe and North America.
Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.
Conference Call Details
On today's call, management will also unveil the Company's three primary market initiatives highlighting those core markets which Intermap intends to retain as it moves from strictly a database focus, to the development of applications and end-user solutions incorporating NEXTMapà’ 3D elevation data. Today's announcement of the strategic acquisition of MMC is a core component of this strategy and will be discussed in detail during the call. Intermap is developing and co-developing solutions for several of these large market opportunities. These markets encompass Internet visualization, automotive safety, personal navigation devices (PNDs), and flood insurance map modeling. The call will provide an update on progress with Intermap's target markets and the partners and customers that are sharing Intermap's vision.
A slide presentation accompanies Intermap's conference call on Tuesday, March 6, 2007 at 4:30 p.m. EST(2:30 p.m. MST, 7:30 p.m. GMT). Please download the presentation “IMP_Q4_Quarterly_Call_Mar_07” to your computer in advance of the call from ftp1.intermaptechnologies.com (copy and paste the file into your browser).
Username: client24
Password: w3e4r5t6 (Password is case sensitive)
For security reasons this FTP site will be active until March 14, 2007.
To participate in the call, please dial 416-644-3418 or 1-866-250-4892 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through March 13, 2007. Please dial 416-640-1917 or 1-877-289-8525 and provide the password 21208201# to listen to the rebroadcast. An audio webcast of the teleconference will also be available on Intermap's website.
About Intermap Technologies
Intermap enables customers to facilitate better decision-making and create applications for numerous commercial, governmental, military, and consumer products through the purchase of high quality and affordable elevation datasets. The Company is proactively remapping entire countries and building unprecedented national databases, called NEXTMapà’ , consisting of highly accurate digital topographic maps that include elevation data.
Demand for NEXTMapà’ 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/wireless network planning, aviation, simulation, and 3D visualization. Internet applications include virtual tours, topographic maps and computer games. Datasets are also used to add interactive intelligence to airborne and satellite imagery.
Headquartered in Denver, Colorado, Intermap employs more than 400 people worldwide, with additional offices in Calgary, Detroit, Jakarta, London, Munich, Ottawa, and Prague. For more information, visitwww.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.
For more information, please contact:
Intermap Technologies
Richard Mohr, Senior Vice President & Chief Financial Officer
rmohr@.intermap.com
(303) 708-0955
Canada — Financial
Corbet Pala, Investor Relations
E-vestor Communications Inc.
cpala@evestor.com
(416) 657-2400
United States — Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
bzuckerman@genesisselect.com
(303) 415-0200
United Kingdom — AIM, Nominated Advisor
Canaccord Adams Limited
Neil Johnson
Clayton Bush
+(44) (0) 20 7518 2777
Intermap Technologies corporation
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Intermap Technologies corporation
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