Year-over year revenue increases 80% to $8.0M
Net income of $0.8M
Adjusted EBITDA of $2.7M
Year-over-year operating costs decrease 32%
DENVER – August 7, 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 second quarter ended June 30, 2012. A conference call will be held today, August 7th, 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 $8.0 million for the second quarter of 2012, an 80% increase compared to $4.4 million in the second quarter of 2011. Net income for the second quarter of 2012 was $0.8 million or $0.01 per share, compared with a net loss of $3.4 million, or ($0.05) per share, for the second quarter of 2011. Second quarter adjusted EBITDA, a non IFRS financial measure, was $2.7 million, compared with a loss of $2.7 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.
“We’re pleased to announce a positive second quarter with significant improvement in both our top-line and bottom-line financial performance. As we communicated in our Q1 earnings call, we expected notable financial improvements in our Q2 results and we delivered on those expectations,” said Todd Oseth, Intermap’s president and chief executive officer. “Our NEXTMap® licensing revenue in Q2 increased materially on both a year-over-year basis and on a quarter-over-quarter basis as we delivered on a large portion of the backlog that we entered the year with. Our contract services revenue decreased during the quarter as we moved into the final processing phase of a major contract in Southeast Asia. Subsequently, we began the airborne operations phase of our Alaska project during the the last week of June, and we announced a $3.6 million expansion of that project last week. We entered the third quarter with $6.7 million of backlog, most of which is expected to be recognized as revenue prior to the end of this year.”
Mr. Oseth added, “Intermap’s sales pipeline remains strong and we expect to close new opportunities over the next two quarters. Our new business is driven by a 3D business intelligence solutions approach that addresses our customers’ specific geospatial needs in both the contract services and NEXTMap licensing portions of the business. The Company’s recently announced NEXTMap World-30 product, with its new price points, is an example of a new solution that addresses a larger customer base. Additionally, during the quarter, we continued with our solutions focus by enhancing the functionality of our AdPro, LinkPro, RiskPro and web-delivery applications. We continue to develop new commercial applications that will expand addressable customers and revenue sources for the future.”
Financial Review
Contract services revenue in the second quarter decreased to $1.6 million from $2.5 million last year, and data licensing revenue increased to $6.4 million from $2.0 million last year. As of June 30, 2012, the contract backlog of $6.7 million consisted of $2.4 million in contract services revenue and $4.3 million in data licensing revenue.
For the second quarter 2012, personnel expense was $3.5 million, a 20% decrease from $4.3 million last year. The decrease was primarily due to workforce reductions associated with the Company’s restructuring activities during 2011.
For the second quarter 2012, purchased services and materials expense was $1.2 million, a 51% decrease from $2.5 million last year. The decrease from 2011 is primarily related to decreased job and subcontractor expenses associated with a large mapping services contract in Southeast Asia upon the completion of the airborne collection phase of that contract. 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 June 30, 2012 (cash and cash equivalents) was $2.8 million, compared to $0.5 million on March 31, 2012. The Company closed on a one-year convertible debt financing of $2.5 million on June 27, 2012. The proceeds from the financing will be used to repay a currently outstanding senior secured loan and for working capital required to fund mapping services contracts during the term of the loan. Amounts receivable and unbilled revenue at June 30, 2012 was $4.1 million, compared to $2.7 million at March 31, 2012. Working capital improved to ($2.0) million at June 30, 2012, compared to ($4.4) million at March 31, 2012 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
Second Quarter Business Highlights
The Company announced the launch of its NEXTMap World-30 dataset, the first and only commercial 3D terrain product to provide seamless, void free coverage, with a 3-meter ground sampling distance, across the entire 150 million square kilometers of the earth’s surface. Satellite images provide 2D datasets, which are not always sufficient for business planning purposes or government feasibility studies. Intermap’s NEXTMap World-30 product offers the most comprehensive digital surface models for the entire world. This dataset can benefit planners in multiple industries including telecommunications, energy, agriculture, risk planning, water management, topographic mapping, military and a host of government services.
The Company announced a strategic partnership with Blue Marble Geographics to integrate Intermap’s NEXTMap dataset with Blue Marble’s Global Mapper software. This integration can provide thousands of GIS analysts’ access to Intermap’s NEXTMap WebStore 2.0 for rich, high-precision elevation data and expanded coverage datasets.
Intermap announced a $369,000 contract to provide digital elevation data from its NEXTMap database. The data was purchased by an international agency that overseas the country’s natural resources and the environment. The agency’s primary use for the data will be for geospatial related applications including water resource management, and more specifically flood risk assessment.
Intermap was awarded a $517,000 task order from Dewbery & Davis for the second phase expansion of its previously announced airborne radar mapping services project in Alaska. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications.
The Company announced that it received a $260,000 contract to provide digital elevation information from its NEXTMap database in North America. The NEXTMap data was purchased by a wireless software solution provider in order to accelerate the radio access network planning and optimization of a leading wireless network operator.
The Company announced that its previously reported strategic partnership with Mentum, a leading wireless access and backhaul network planning and optimation company, has secured five telecommunications companies as customers of the partnership. Mentum’s CityScapes HD product is the culmination of Mentum’s and Intermap’s combined research and development efforts. This product is used by wireless network operators who plan, build and run networks in sprawling metropolitian areas where both man-made structures and vegetation play an important role in defining propagation charactersistics.
As of August 7, 2012, there were 79,414,013 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.
Conference Call
Intermap will host a conference call today, August 7, 2012, at 4:30 pm ET (2:30pm MT). To participate in the call, please dial +1-647-427-7450 or 1-888-231-8191 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 17, 2012. Please dial +1-416-849-0833 or 1-855-859-2056 and provide the pass code 14283761 to listen to the rebroadcast. The call will also be available for replay on Intermap’s website at http://www.intermap.com/investors.aspx.
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 with extremely high levels of 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, and individual or enterprise wide licenses. Intermap's cloud-based hosted model offers customers the most convenient and affordable method to satisfy a customer's 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:
Intermap Technologies
Rich Mohr, Senior Vice President & 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) 415-0200
All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $8.0 million for the second quarter of 2012, an 80% increase compared to $4.4 million in the second quarter of 2011. Net income for the second quarter of 2012 was $0.8 million or $0.01 per share, compared with a net loss of $3.4 million, or ($0.05) per share, for the second quarter of 2011. Second quarter adjusted EBITDA, a non IFRS financial measure, was $2.7 million, compared with a loss of $2.7 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.
“We’re pleased to announce a positive second quarter with significant improvement in both our top-line and bottom-line financial performance. As we communicated in our Q1 earnings call, we expected notable financial improvements in our Q2 results and we delivered on those expectations,” said Todd Oseth, Intermap’s president and chief executive officer. “Our NEXTMap® licensing revenue in Q2 increased materially on both a year-over-year basis and on a quarter-over-quarter basis as we delivered on a large portion of the backlog that we entered the year with. Our contract services revenue decreased during the quarter as we moved into the final processing phase of a major contract in Southeast Asia. Subsequently, we began the airborne operations phase of our Alaska project during the the last week of June, and we announced a $3.6 million expansion of that project last week. We entered the third quarter with $6.7 million of backlog, most of which is expected to be recognized as revenue prior to the end of this year.”
Mr. Oseth added, “Intermap’s sales pipeline remains strong and we expect to close new opportunities over the next two quarters. Our new business is driven by a 3D business intelligence solutions approach that addresses our customers’ specific geospatial needs in both the contract services and NEXTMap licensing portions of the business. The Company’s recently announced NEXTMap World-30 product, with its new price points, is an example of a new solution that addresses a larger customer base. Additionally, during the quarter, we continued with our solutions focus by enhancing the functionality of our AdPro, LinkPro, RiskPro and web-delivery applications. We continue to develop new commercial applications that will expand addressable customers and revenue sources for the future.”
Financial Review
Contract services revenue in the second quarter decreased to $1.6 million from $2.5 million last year, and data licensing revenue increased to $6.4 million from $2.0 million last year. As of June 30, 2012, the contract backlog of $6.7 million consisted of $2.4 million in contract services revenue and $4.3 million in data licensing revenue.
For the second quarter 2012, personnel expense was $3.5 million, a 20% decrease from $4.3 million last year. The decrease was primarily due to workforce reductions associated with the Company’s restructuring activities during 2011.
For the second quarter 2012, purchased services and materials expense was $1.2 million, a 51% decrease from $2.5 million last year. The decrease from 2011 is primarily related to decreased job and subcontractor expenses associated with a large mapping services contract in Southeast Asia upon the completion of the airborne collection phase of that contract. 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 June 30, 2012 (cash and cash equivalents) was $2.8 million, compared to $0.5 million on March 31, 2012. The Company closed on a one-year convertible debt financing of $2.5 million on June 27, 2012. The proceeds from the financing will be used to repay a currently outstanding senior secured loan and for working capital required to fund mapping services contracts during the term of the loan. Amounts receivable and unbilled revenue at June 30, 2012 was $4.1 million, compared to $2.7 million at March 31, 2012. Working capital improved to ($2.0) million at June 30, 2012, compared to ($4.4) million at March 31, 2012 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
Second Quarter Business Highlights
The Company announced the launch of its NEXTMap World-30 dataset, the first and only commercial 3D terrain product to provide seamless, void free coverage, with a 3-meter ground sampling distance, across the entire 150 million square kilometers of the earth’s surface. Satellite images provide 2D datasets, which are not always sufficient for business planning purposes or government feasibility studies. Intermap’s NEXTMap World-30 product offers the most comprehensive digital surface models for the entire world. This dataset can benefit planners in multiple industries including telecommunications, energy, agriculture, risk planning, water management, topographic mapping, military and a host of government services.
The Company announced a strategic partnership with Blue Marble Geographics to integrate Intermap’s NEXTMap dataset with Blue Marble’s Global Mapper software. This integration can provide thousands of GIS analysts’ access to Intermap’s NEXTMap WebStore 2.0 for rich, high-precision elevation data and expanded coverage datasets.
Intermap announced a $369,000 contract to provide digital elevation data from its NEXTMap database. The data was purchased by an international agency that overseas the country’s natural resources and the environment. The agency’s primary use for the data will be for geospatial related applications including water resource management, and more specifically flood risk assessment.
Intermap was awarded a $517,000 task order from Dewbery & Davis for the second phase expansion of its previously announced airborne radar mapping services project in Alaska. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications.
The Company announced that it received a $260,000 contract to provide digital elevation information from its NEXTMap database in North America. The NEXTMap data was purchased by a wireless software solution provider in order to accelerate the radio access network planning and optimization of a leading wireless network operator.
The Company announced that its previously reported strategic partnership with Mentum, a leading wireless access and backhaul network planning and optimation company, has secured five telecommunications companies as customers of the partnership. Mentum’s CityScapes HD product is the culmination of Mentum’s and Intermap’s combined research and development efforts. This product is used by wireless network operators who plan, build and run networks in sprawling metropolitian areas where both man-made structures and vegetation play an important role in defining propagation charactersistics.
As of August 7, 2012, there were 79,414,013 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.
Conference Call
Intermap will host a conference call today, August 7, 2012, at 4:30 pm ET (2:30pm MT). To participate in the call, please dial +1-647-427-7450 or 1-888-231-8191 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 17, 2012. Please dial +1-416-849-0833 or 1-855-859-2056 and provide the pass code 14283761 to listen to the rebroadcast. The call will also be available for replay on Intermap’s website at http://www.intermap.com/investors.aspx.
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 with extremely high levels of 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, and individual or enterprise wide licenses. Intermap's cloud-based hosted model offers customers the most convenient and affordable method to satisfy a customer's 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:
Intermap Technologies
Rich Mohr, Senior Vice President & 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) 415-0200