DENVER, Colorado – May 19, 2011 (TSX: IMP) – Intermap Technologies Corporation (“Intermap” or the “Company”) today reported financial results for the first quarter ended March 31, 2011. A conference call will be held today at 4:30 p.m. Eastern Time to discuss the results.
The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (IFRS) for interim financial statements and is expressed in United States dollars. The amounts in this earnings release including the interim financial statements for the three months ended March 31, 2010 have been restated to reflect the adoption of IFRS, with effect from January 1, 2010.
First quarter 2011 revenue was $6.8 million, a 96% increase over the $3.5 million for the same period last year. Of the revenue recognized in the first quarter, $2.9 million was attributable to the Company’s contract services business and $3.9 million was derived from the licensing of the multi-client data library (MCDL) from the Company’s NEXTMap database. These amounts represent year-over-year growth of 143% and 71%, respectively. During the quarter ended March 31, 2011, approximately 67% of the MCDL revenue was associated with the NEXTMap USA dataset, 22% was associated with the Company’s Asia dataset, and 11% was associated with the NEXTMap Europe dataset.
During the first quarter of 2011, the Company received $3.0 million in cash receipts towards a $12.4 million contract announced at the end of 2010. The bulk of the remainder of the contract receipts are expected in the second and third quarters of 2011, with smaller amounts to be received later in the year. During the fourth quarter of 2010, Intermap announced three significant contracts. As of March 31, 2011, there remained $11.6 million in revenue from existing contracts to be recognized in future periods ($10.1 million in contract services and $1.5 million in MCDL license contracts).
Total operating costs in the first quarter were $9.4 million, compared to $9.3 million for the same period last year. The Company made significant workforce reductions during 2010 and again in the first quarter of 2011. The first quarter operating costs of $9.4 million include $1.0 million of restructuring related costs. On an annualized basis, the combined restructuring costs have a net reduction impact on total expenses (after severance-related costs) of approximately $10.1.
First quarter 2011 adjusted EBITDA, a term not defined under IFRS, was negative $1.4 million, an improvement compared with the first quarter 2010 of negative $5.4 million. The Company reported a first quarter 2011 net loss of $4.9 million, or $(0.08) per share, compared with a net loss of $10.5 million, or ($0.20) per share, for the same period last year.
At March 31, 2011, Intermap held cash and cash equivalents of $1.1 million and working capital of negative $6.0 million. To strengthen its balance sheet, subsequent to the close of the first quarter, Intermap completed a private placement financing for gross proceeds of $6.8 million.
The negative working capital position of the Company at March 31, 2011 is primarily driven by deposits for sale of assets of $4.0 million and unearned revenue of $4.8 million. The deposits for sale of assets resulted from the receipt of payments for the purchase of an aircraft and radar system in the fourth quarter of 2010 for which the Company expects to deliver the assets to the purchaser in the second half of 2011. At March 31, 2011, $4.5 million of the unearned revenue balance relates to payments received from customers on contracts for which the Company expects to recognize revenue during the remainder of 2011. Management believes these two current obligations will not negatively impact the Company’s ability to meet financial or operational obligations during 2011 and the ultimate relief of the obligations, combined with anticipated improved operating results, is expected to result in the Company returning to a positive working capital position during 2011.
"After the significant losses posted in 2010, we knew that 2011 would be a stabilizing year for the Company leading to expected profitable growth in 2012. I’m pleased to report that our previously communicated plans to transition the Company to a partner and channel driven sales approach using web services, and to revitalize our mapping services business is gaining momentum. Our improved first quarter results are a positive barometer reflecting the stabilization of the Company that needs to occur while we continue to implement our new business plan" said Todd Oseth, president and CEO of Intermap.
The Company believes it has reasonable near-term visibility to meaningful sales opportunities during the remainder of 2011 for telecommunications applications in North America, additional mapping services contracts internationally, and risk management applications in Europe as well as opportunities in several other market segments. Intermap will support these opportunities through new product development, improved marketing programs, and expanded pricing plans. New product offerings will provide a growing catalog of data layer options, including the integration of third-party data. Additionally, Management has refocused the Company’s marketing and sales disciplines and believes that the value of the Company’s data lies in application solutions for specific vertical markets, and not solely in the data as a standalone product. Please visit our new web site at www.intermap.com for additional information about the Company.
Important factors, including those discussed in the Company's regulatory filings (www.sedar.com) could cause actual results to differ from the company's expectations and those differences may be material. Detailed financial results and management’s discussion and analysis can be found on SEDAR at:www.sedar.com.
Conference Call Today
Intermap will host a conference call today, at 4:30 pm ET (2:30 pm MT). To participate in the call, please dial +1-416-695-7848 or 1-800-952-6845 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through May 29, 2011. Please dial +1-905-694-9451 or 1-800-408-3053 and provide the password 3276541 to listen to the rebroadcast.
Intermap (TSX: IMP) is a worldwide leader in providing geospatial solutions that allow customers to make better terrain-based decisions. By providing the best-of-breed 3D terrain information, Intermap® enables commercial enterprises and government agencies to build a wide variety of innovative geospatial applications and efficiently perform analyses. Intermap is committed to helping geospatial professionals leverage the Company’s products and services so they can increase productivity and decrease costs. Industries such as energy, engineering, government, risk management, telecommunications, water resource management, and automotive can benefit from the Company’s high-quality 3D terrain products and advanced geospatial services.
Headquartered in Denver, Colorado, Intermap has offices in Calgary, Jakarta, Munich, Prague and Washington, D.C. For more information, visit www.Intermap.com.
Adjusted EBITDA is not a recognized performance measure under GAAP and does not have a standardized meaning prescribed by IFRS. The term EBITDA consists of net income (loss) and excludes interest, taxes, depreciation, and amortization. Adjusted EBITDA also excludes restructuring costs, stock-based compensation, and gain or loss on foreign currency translation. Adjusted EBITDA is included as a supplemental disclosure because management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges that are nonrecurring. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss).
Intermap Reader Advisory Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. 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 that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
Reference is made to the Company’s audited Consolidated Financial Statements for the years ended December 31, 2010 and 2009, together with the accompanying notes, which includes a going concern disclosure (Note 1) and such disclosure remains applicable as of the date of the financial statements included herein. Management has taken actions to address the Company’s going concern issues including the closing of an additional financing in April 2011 with gross proceeds to the Company of $6.8 million.
For more information, please contact:
Intermap Technologies
Rich Mohr, Senior Vice President and Chief Financial Officer
rmohr@intermap.com
+1 (303) 708-0955
Canada – Financial
Cory Pala, Investor Relations
e.vestor Communications Inc.
cpala@evestor.com
+1 (416) 657-2400
United States – Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
bzuckerman@genesisselect.com
+1 (303) 415-020