DENVER – November 14, 2018 (TSX: IMP) (ITMSF:BB) – Intermap Technologies Corporation (“Intermap” or the “Company”) reported financial results for the third quarter ended September 30, 2018.
For the third quarter of 2018, Intermap reported revenue of $3.7 million as it continued work on the previously announced $6.2 million U.S. Government task order for the creation of digital elevation and bare earth terrain models. The Company has also been awarded a U.S Government task order to help them assess the suitability of multiple current and near-future satellite technologies for creating high resolution elevation products.
All amounts in this news release are in United States dollars, unless otherwise noted.
For the third quarter of 2018, Intermap reported revenue of $3.7 million and operating loss of $474 thousand, compared to revenue of $6.3 million and operating income of $1.8 million for the third quarter of 2017. Acquisition services revenue during the third quarter of 2018 decreased $2.6 million from the same period in 2017 due to delays in contracting follow-on work following elections in southeast Asia.
Software and solutions revenue, which includes the Company’s commercial InsitePro insurance software, increased 28% to $521 thousand for the quarter, compared to the same period last year. The solution continues to experience a 100% renewal rate on all eligible renewals.
Third quarter and year-to-date adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was positive $0.4 million and $1.7 million, respectively, compared to positive $2.1 million and $1.6 million, respectively, 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 three-month and nine-month periods ended September 30, 2018 as compared to 2017. The decrease in adjusted EBITDA for both periods is consistent with the decrease in acquisition services project work.
The Company finished the third quarter with $4.0 million of cash, amounts receivable and unbilled revenue, compared to $7.5 million at Q3 2017, and $6.9 million at December 31, 2017. Working capital improved to $0.4 million at the end of the third quarter, compared to $0.3 million at year-end. Accounts payable and accrued liabilities improved 48%, down to $2.1 million from $4.0 million at year-end. The reductions relate primarily to final payments on the radar system upgrade that was installed in 2017.
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.