DENVER – July 24, 2018 (TSX: IMP) (ITMSF:BB) – Intermap Technologies Corporation (“Intermap” or the “Company”) reported financial results for the second quarter ended June 30, 2018.
For the second quarter of 2018, Intermap reported revenue of $4.5 million as it commenced work on the previously announced $6.2 million U.S. Government task order for the creation of digital elevation and bare earth terrain models. During the second quarter the Company also commenced production of its recently announced NEXTMap One™ terrain dataset, which it delivered to organizations in over 20 countries around the globe. NEXTMap One is produced using Intermap’s patented Intelligent Resolution Improvement System (IRIS™) and represents a technological advancement in global elevation data production, combining the best features from multiple sensors. The Company was also issued a patent for its high resolution global flood model, called FloodScopeTM.
All amounts in this news release are in United States dollars, unless otherwise noted.
For the second quarter of 2018, Intermap reported revenue of $4.5 million and operating income of $309 thousand, compared to revenue of $4.5 million and operating loss of $198 thousand for the second quarter of 2017, a $500 thousand improvement in operating performance.
Software and solutions revenue, which includes the Company’s commercial InsitePro insurance software, increased 114% to $650 thousand for the quarter, compared to the same period last year.
Second quarter and year-to-date adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was positive $0.9 million and $1.3 million, respectively, compared to $0.3 million and a loss of $0.5 million, respectively, for the same periods last year, representing $0.6 million and $1.8 million improvements, respectively. 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 three-month and six-month periods ended June 30, 2018 as compared to 2017.
The Company finished the second quarter with $5.7 million of cash, accounts receivable and unbilled revenue, compared to $4.9 million at Q2 2017, and $6.9 million at December 31, 2017. Working capital improved to $0.8 million at the end of the second quarter, compared to a deficit of $0.3 million at year-end. Accounts payable and accrued liabilities improved 33%, down to $2.7 million from $4.0 million at year-end.
“The Company continues to strengthen its balance sheet organically and these results reflect stronger operating performance, a more sustainable revenue mix, greater profitability, and better return on capital employed”, commented Patrick Blott, Chairman & CEO of Intermap. “Sales of our InsitePro insurance software have more than doubled, while total commercial business has grown 41% year-over-year, now comprising 40% of total revenue for the first half of 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.