DENVER, CO – May 15, 2019 (TSX: IMP) (ITMSF:BB) – Intermap Technologies Corporation (“Intermap” or the “Company”) today reported the award of a $2.9m U.S. Government Task Order, which it expects to complete in 2019. It further reported financial results for the first quarter ended March 31, 2019.
Including this task order, by the close of this year, Intermap will have earned over $40m by collecting new geospatial data in support of the Alaska Statewide Digital Mapping Initiative. “This successful multi-year campaign to remap the nation’s last frontier with consistent excellent performance serves as a powerful public demonstration of Intermap’s cutting edge, multi-sensor collection capabilities”, commented Patrick Blott, Chairman & CEO. “We look forward to bundling our leadership in sensors with our additional capabilities in data management, geospatial software and analytics, to advance future government projects, particularly those dealing with austere environments and difficult terrain.”
Throughout its history, Intermap’s revenue has been generated through a significant amount of government contracting, characterized by long sales cycles, competitive bidding, large up-front mobilization and deployment costs, and uncertainty with respect to changing government requirements and administrations, both foreign and domestic. These project cycles require the Company to have sufficient working capital funding to bridge periods of contract pursuit, pipeline development, project performance, technology upgrades and cash collection. The Company is continuing the formal process to review its strategic alternatives. There can be no assurances regarding the outcome of this process, which may include new debt financing, a restructuring of existing claims, a sale of all, or some of the Company’s assets, or no further action.
All amounts in this news release are in United States dollars, unless otherwise noted.
For the first quarter of 2019, Intermap reported revenue of $840 thousand, cash flow from operations of positive $283 thousand, and an operating loss of $2.2m, compared to revenue of $3.4m and operating income of $21 thousand for the first quarter of 2018. Acquisition services revenue during the first quarter of 2019 decreased $1.9m from the same period in 2018 due to U.S. Government contract timing.
Software and solutions revenue increased 15% to $633 thousand for the quarter, compared to the same period last year. Commercial subscriptions have increased 24% on a quarter-over-quarter basis.
First quarter adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was negative $1.8m, compared to positive $0.4m for the same periods last year. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and excludes non-recurring and non-cash payments. Adjusted EBITDA is not a recognized performance measure under IFRS. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net loss. See Non-IFRS Measures below for a reconciliation of the Company’s net loss to adjusted EBITDA for the first quarter of 2019 as compared to the same period for 2018. The decrease in adjusted EBITDA is consistent with the decrease in acquisition services revenue.
The Company finished the first quarter with $1.1m of cash, compared to $1.3m at December 31, 2018.
The Company’s consolidated financial statements and management’s discussion and analysis will be filed on SEDAR at: www.sedar.com. 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.
Adjusted EBITDA is not a recognized performance measure under IFRS 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 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 loss.
About Intermap Technologies
Headquartered in Denver, Colorado, Intermap (www.intermap.com) is an industry leader in geospatial intelligence solutions. These geospatial solutions are used in a wide range of applications including, but not limited to, location-based information, risk assessment, geographic information systems, engineering, utilities, global positioning systems, oil and gas, renewable energy, hydrology, environmental planning, land management, wireless communications, transportation, advertising, and 3D visualization. Intermap generates revenue from three primary business activities, composed of i) data acquisition and collection, using proprietary, multi-frequency, radar sensor technologies, ii) value-added data products and services, which leverage the Company’s proprietary NEXTMap® database and platform, together with proprietary software and fusion technologies, and iii) commercial applications and solutions, including a webstore and software sales targeting selected industry verticals that rely on accurate high resolution elevation data. The Company is a world leader in data fusion, analytics, and orthorectification, and has decades of experience aggregating data derived from a number of different sensor technologies and data sources, providing useful answers to geospatial problems. For more information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release, including statements in relation to the Company’s profitability and revenue generating activities, constitute forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", “will be” 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.
For more information, please contact:
Executive Vice President and CFO
+1 (303) 708-0955