Contract services incremental revenue increases by 53%
Web-store incremental revenue increases by 16%
Personnel expense decreases by 37%
$12.6 million of backlog for delivery in 2012
DENVER – May 9, 2012 (TSX: IMP) – Intermap Technologies Corporation (“Intermap” or the “Company”), a leading provider of location based information solutions created from its uniform, high-resolution 3D digital models and orthorectified imagery of the Earth’s surface, today reported financial results for the first quarter ended March 31, 2012. A conference call will be held today, May 9th, at 4:30 p.m. Eastern Time to discuss the results.
All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $4.2 million for the first quarter of 2012, a 38% decrease compared to $6.8 million in the first quarter of 2011. Net loss for the first quarter of 2012 was $5.1 million or ($0.06) per share, compared with a net loss of $4.9 million, or ($0.08) per share, for the first quarter of 2011. First quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $2.9 million, compared with a loss of $1.1 million for the same period last year. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
“Total revenue in the first quarter was lower due to contract modifications that delayed certain expected data licensing shipments totaling more than $1.5 million,” said Todd Oseth, Intermap’s president and chief executive officer. “Those shipments have since been completed. Our contract services business remained strong with a 53% increase in incremental revenue over the fourth quarter of last year and a 14% increase on a year-over-year basis. We enter the second quarter of this year with $12.6 million of backlog, most of which will be recognized as revenue during the second and third quarters of this year. During the quarter, we continued our development efforts on creating commercial solutions around our customers’ needs, rather than simply delivering data. We introduced a new advertising application at the end of April that integrates our elevation data with a multitude of other location based information that we believe will deliver a comprehensive solution to the outdoor advertising market. Additionally, we continued to improve our LinkPro, RiskPro and web-delivery applications and have begun development on new commercial 3D business intelligence applications that are expected to produce increasing revenue in future periods.”
Contract services revenue in the first quarter increased to $3.4 million from $2.9 million last year and data licensing revenue decreased to $0.9 million from $3.9 million last year. As of March 31, 2012, there remained $12.6 million in backlog contracts ($3.4 million in contract services and $9.2 million in data licensing) to be recognized in future periods.
For the first quarter 2012, personnel expense was $3.5 million, a 37% decrease from $5.5 million last year. The decrease was primarily due to workforce reductions associated with the Company’s restructuring activities during 2011.
For the first quarter 2012, purchased services and materials expense was $3.0 million, a 7% increase from $2.8 million last year. The increase from 2011 is primarily related to increased job and subcontractor expenses associated with a large mapping services contract in Southeast Asia. The increased expenses associated with this contract were partially offset by major cost cutting measures initiated throughout 2011. Purchased services and materials includes (i) aircraft related costs (ii) professional and consulting costs (iii) third-party support services related to the collection, processing and editing of the Company’s airborne data collection activities, and (iv) software expenses (including maintenance and support).
The cash position of the Company at March 31, 2012 (cash and cash equivalents) was $0.5 million, compared to $0.6 million at December 31, 2011. Amounts receivable and unbilled revenue at March 31, 2012 was $3.5 million, compared to $6.4 million at December 31, 2011. Working capital decreased to ($4.4) million at March 31, 2012, compared to ($1.0) million at December 31, 2011 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
First Quarter Business Highlights
The Company announced enterprise contracts totaling US$850,000 from two leading global telecommunications companies. These global carriers licensed Intermap’s LinkPro™ 3D business intelligence application and the Company’s highly accurate NEXTMap terrain and surface models for the planning and development of their 4G Long Term Evolution (LTE) wireless networks in Europe.
The Company was awarded a USD $2.0 million task order from Dewberry & Davis to perform airborne radar mapping in Alaska. The work will be performed during the summer months of 2012 and is the second phase of a multi-year mapping program in Alaska. Intermap will use its proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology to collect orthorectified radar imagery and high resolution elevation data for an area of Alaska that has never been mapped to this level of accuracy. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications.
The Company announced the launch of its NEXTMap® Web Store 2.0. Web Store 2.0 offers an expanded suite of hosted tools and even gives those unfamiliar with geographic information systems (GIS) the ability to quickly and easily download terrain data based on an area of interest, or access their county and state via a subscription service.
As of May 9, 2012, there were 79,064,333 common shares outstanding.
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.
Intermap will host a conference call today, May 9, 2012, at 4:30 pm ET (2:30pm MT). To participate in the call, please dial +1-416-340-9432 or 1-877-340-9642 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through May 16, 2012. Please dial +1-905-694-9451 or 1-800-408-3053 and provide the pass code 8734922 to listen to the rebroadcast. The call will also be available on Intermap’s website at http://www.intermap.com/investors.aspx for replay.
About Intermap Technologies
Headquartered in Denver, Colorado - Intermap (www.intermap.com) is a leading provider of Location-Based Information (LBI), setting the industry standard for creating high-resolution 3D digital models of the earth’s surface. The Company has remapped entire countries, to build NEXTMap® national databases consisting of affordably priced elevation data and geometric images of unparalleled accuracy. Turnkey solutions can be purchased from the Company’s NEXTMap Online Store, a hosted web services platform offering a variety of subscription levels by geography, data-layer, individual or enterprise wide license. Intermap’s cloud-based hosted model offers customers the most convenient and affordable method to satisfy their needs with both Platform as a Service (PaaS) and Software as a Service (SaaS) options.
Adjusted EBITDA 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 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, 2011 and 2010, together with the accompanying notes, which includes a going concern disclosure and such disclosure remains applicable as of the date of the financial statements included herein.
For more information, please contact:
Rich Mohr, Senior Vice President & Chief Financial Officer
+1 (303) 708-0955
Canada – Financial
Cory Pala, Investor Relations
e.vestor Communications Inc.
+1 (416) 657-2400
United States – Financial
Budd Zuckerman, Investor Relations
Genesis Select Corporation
+1 (303) 415-0200