2011 revenue increases 73%
$16.2 million of backlog for
delivery in 2012
Commercial applications account for 86% of
total revenue
DENVER — (BUSINESS WIRE) — March 12, 2012 — (TSX: IMP) – Intermap Technologies Corporation (“Intermap” or the “Company”) today reported financial results for the fourth quarter and year ended December 31, 2011. A conference call will be held today, March 12th, 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.
“In 2011, Intermap’s strategy of refocusing the company through significant reductions in infrastructure costs and a new approach to how we develop, price, market and sell our products and services, has begun to pay off. We returned to year-over-year growth and we believe Intermap is positioned for positive earnings in the future.” said Todd Oseth, President & CEO of Intermap. “We were able to deliver a 73% increase in total revenue and we achieved this with less than half of the personnel we began the year with. We also saw a significant improvement in our adjusted EBITDA on a year-over-year basis and we expect to see continued improvements in this metric as we progress through 2012. Several contracts received in 2011 produced revenue backlog of $16.2 million going into the new year, all of which is expected to be recognized during 2012. Our sales pipeline has grown for this coming year driven by commercial applications including telecom, energy, advertising, and hazard risk management, as well as new mapping services contracts both domestically and internationally.”
Mr. Oseth added, “Intermap’s goal is to become a worldwide leader of commercial location-based information solutions for enterprises worldwide. The Company’s products that support this goal include 3D business application solutions, mapping services, and NEXTMap® data licensing. We’ve taken a unique approach to our products by first recognizing what our customer’s needs are, and then creating solutions around those needs rather than simply delivering raw data. A key element of this approach is the aggregation of third party data and information into our NEXTMap database.
Intermap is expanding its support for commercial markets through new product development, improved marketing programs and expanded pricing plans. New product offerings for the Company’s 3D business information products are being designed to provide a growing menu of customer options through the integration of third party data. Improved marketing plans include new channel partner strategies, a "cloud-based" and software-as-a-service (SaaS) web services model, and improved recognition of the Company’s branding and capabilities.
Financial Review
For the fourth quarter 2011, Intermap reported total revenue of $4.8 million, a 33% increase from $3.6 million last year. Contract services revenue in the fourth quarter increased to $2.3 million from $0.8 million last year. Data licensing revenue decreased to $2.5 million from $2.8 million last year. As of December 31, 2011, there remained $16.2 million in backlog contracts ($6.9 million in contract services and $9.3 million in data licensing contracts) to be recognized in future periods. Fourth quarter net loss was $4.5 million, or ($0.06) per share, compared with a net loss of $27.0 million, or ($0.48) per share last year.
Fourth quarter adjusted EBITDA, a non-GAAP and IFRS financial measure, was a loss of $2.0 million, compared with a loss of $5.2 million 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.
For the fourth quarter 2011, personnel expense was $3.7 million, a 20% decrease from $4.6 million last year. The decrease was primarily due to workforce reductions associated with the Company’s restructuring activities during the year.
For the fourth quarter 2011, purchased services and materials expense was $2.5 million, a 26% decrease from $3.4 million last year. The decrease was primarily due to a combination of the expensing of $1.9 million of work-in-process during 2010 (with no similar expense in 2011), partially offset by increased job and subcontractor expenses associated with a large contract services project in Southeast Asia during 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).
For the year ended December 31, 2011, Intermap reported total revenue of $24.1 million, a 73% increase from $13.9 million last year. Contract services revenue for the year increased to $10.8 million from $4.3 million last year. Data licensing revenue increased to $13.3 million from $9.7 million last year. For the year 2011, net loss was $13.6 million, or ($0.19) per share, compared with a net loss of $97.8 million, or ($1.73) per share last year.
Adjusted EBITDA for the year was a loss of $4.5 million, compared with a loss of $19.7 million last year.
For the year ended December 31, 2011, personnel expense was $17.0 million, a 19% decrease from $21.1 million last year. The year-over-year decrease is primarily due to workforce reductions associated with the Company’s restructuring activities. The amount shown for 2011 includes $1.3 million of severance and termination expense compared to $1.4 million last year. On an annualized basis, the net reduction in total personnel expense (after severance and termination related costs) of the workforce reductions made during 2011 is approximately $6.8 million.
For the year ended December 31, 2011, purchased services and materials expense was $10.2 million, relatively flat with $10.0 million last year. Increased job and subcontractor expenses associated with a large contract services project in Southeast Asia were partially offset by decreased operating costs associated with expense reductions during the year. The increased job and subcontractor expenses in 2011 were commensurate with the increase in contract services revenue during the year.
The cash position of the Company at December 31, 2011 (cash and cash equivalents) was $0.6 million, compared to $4.4 million at December 31, 2010. Amounts receivable and unbilled revenue at December 31, 2011 was $6.4 million, compared to $5.2 million at December 31, 2010. Working capital improved to ($1.0) million at December 31, 2011, compared to ($3.5) million at December 31, 2010 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
Fourth Quarter Business Highlights
The Company announced a $950,000 NEXTMap enterprise sale to a leading global telecommunications company for its NEXTMap LinkPro™ 3D business intelligence application. This leading telecommunications company will help their customers modernize their networks by using Intermap’s accurate NEXTMap clutter height data for the planning and development of 4G long-term evolution (LTE) wireless networks across the U.S.
The Company announced a $1.1 million contract for digital mapping services and licensing of its NEXTMap database for selected areas in the U.S. The data will be used by the customer in support of energy transmission corridor planning across a multi-state area. Delivery on the project began in the fourth quarter and is expected to be completed by mid-year 2012.
Intermap was named the winner of the Asian Geospatial Excellence Award – Environment Management for “Mapping the Basin: the Murray-Darling Basin Information Infrastructure Project”. The award was presented during the 10th Annual Asian Conference and Exhibition on Geospatial Information, Technology and Applications on October 17 in Jakarta, Indonesia. The Asian Geospatial Excellence Awards recognize companies for exemplary usage of geospatial tools in various fields implemented in Asia. Such fields include governance, infrastructure, public safety, utilities, design and engineering, environment, agriculture, mining and exploration, transportation management, business intelligence, insurance, and disaster management.
The Company announced that the state of South Dakota is utilizing its NEXTMap data for several critical statewide geospatial applications. This follows South Dakota’s licensing of Intermap’s NEXTMap South Dakota database during the third quarter of 2011. The data is being used by a number of South Dakota state government entities for a variety of geospatial related applications including flood mapping, emergency response, environmental risk analysis and infrastructure planning.
The Company announced an agreement with AIR Worldwide, a well known provider of catastrophe risk modeling software and consulting services, to provide high-resolution elevation data to be used in the development of new catastrophe models for select European countries.
The Company announced a collaboration with Mentum, a leading wireless access and backhaul network planning and optimization company, for the delivery of a new generation of height-attributed land-use geodata that addresses the propagation modeling needs of the wireless industry.
Subsequent to year-end, on January 3, 2012, the Company announced it had received enterprise contracts totaling US$850,000 from two leading global telecommunications companies. These global carriers have 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.
Subsequent to year-end, on January 10, 2012, the Company announced the award of a $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 will be used in economic development, infrastructure development and homeland security applications.
As of March 12, 2011, there were 79,003,328 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, March 12, 2012, at 4:30 p.m. EDT (2:30 p.m. MDT). To participate in the call, please dial +1-416-340-8530 or 1-877-240-9772 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through March 19, 2012. Please dial +1-905-694-9451 or 1-800-408-3053 and provide the pass code 7026665 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 is not a recognized performance measure under GAAP 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 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.
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INTERMAP TECHNOLOGIES CORPORATION
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||||||||||||||
| December 31, | December 31, | January 1, | ||||||||||||
| 2011 | 2010 | 2010 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 597 | $ | 4,356 | $ | 10,355 | ||||||||
| Amounts receivable | 5,512 | 4,156 | 12,270 | |||||||||||
| Unbilled revenue | 865 | 1,016 | 343 | |||||||||||
| Work in process | 26 | 59 | 2,057 | |||||||||||
| Prepaid expenses | 616 | 1,039 | 1,481 | |||||||||||
| Non-current assets held for sale | - | 1,488 | - | |||||||||||
| 7,616 | 12,114 | 26,506 | ||||||||||||
| Property and equipment | 5,273 | 7,908 | 13,302 | |||||||||||
| Data library | 18,439 | 23,049 | 87,520 | |||||||||||
| Intangible assets | 290 | 551 | 1,056 | |||||||||||
| Deferred tax assets | 5 | 5 | 136 | |||||||||||
| $ | 31,623 | $ | 43,627 | $ | 128,520 | |||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable and accrued liabilities | $ | 5,097 | $ | 3,141 | $ | 5,916 | ||||||||
| Current portion of provisions | 888 | 1,109 | 398 | |||||||||||
| Current portion of note payable | 69 | 1,639 | - | |||||||||||
| Current portion of deferred lease inducements | 97 | 123 | 171 | |||||||||||
| Unearned revenue | 1,544 | 4,873 | 674 | |||||||||||
| Deposit for sale of assets | - | 4,000 | - | |||||||||||
| Income taxes payable | 43 | 50 | 42 | |||||||||||
| Current portion of obligations under finance lease | 323 | 151 | 229 | |||||||||||
| Current portion of long-term debt | 548 | 527 | 1,383 | |||||||||||
| 8,609 | 15,613 | 8,813 | ||||||||||||
| Long-term note payable | 1,629 | - | - | |||||||||||
| Deferred lease inducements | 363 | 286 | 129 | |||||||||||
| Long-term provisions | 223 | 531 | 316 | |||||||||||
| Obligations under finance lease | 262 | 41 | 130 | |||||||||||
| Long-term debt | 95 | 658 | 1,121 | |||||||||||
| Deferred tax liabilities | 13 | 93 | 218 | |||||||||||
| 11,194 | 17,222 | 10,727 | ||||||||||||
| Shareholders' equity: | ||||||||||||||
| Share capital | 193,992 | 187,253 | 181,623 | |||||||||||
| Accumulated other comprehensive income | 46 | 128 | 147 | |||||||||||
| Contributed surplus | 9,663 | 8,700 | 7,858 | |||||||||||
| Deficit | (183,272 | ) | (169,676 | ) | (71,835 | ) | ||||||||
| 20,429 | 26,405 | 117,793 | ||||||||||||
| $ | 31,623 | $ | 43,627 | $ | 128,520 | |||||||||
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INTERMAP TECHNOLOGIES CORPORATION
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||||||||||
| For the year ended December 31, | 2011 | 2010 | ||||||||
| Revenue: | ||||||||||
| Contract services | $ | 10,813 | $ | 4,280 | ||||||
| Data licenses | 13,254 | 9,652 | ||||||||
| 24,067 | 13,932 | |||||||||
| Expenses: | ||||||||||
| Operating costs | 31,376 | 36,381 | ||||||||
| Depreciation of property and equipment | 3,377 | 4,567 | ||||||||
| Amortization of data library | 4,610 | 14,346 | ||||||||
| Impairment of data library | - | 55,362 | ||||||||
| Amortization of intangible assets | 495 | 471 | ||||||||
| 39,858 | 111,127 | |||||||||
| Operating loss | (15,791 | ) | (97,195 | ) | ||||||
| Gain (loss) on disposal of equipment | 2,514 | (72 | ) | |||||||
| Financing costs | (160 | ) | (142 | ) | ||||||
| Financing income | 3 | |||||||||
| Loss on foreign currency translation | (72 | ) | (369 | ) | ||||||
| Loss before income taxes | (13,506 | ) | (97,778 | ) | ||||||
| Income tax (expense) recovery: | ||||||||||
| Current | (170 | ) | (57 | ) | ||||||
| Deferred | 80 | (6 | ) | |||||||
| (90 | ) | (63 | ) | |||||||
| Net loss for the period | $ | (13,596 | ) | $ | (97,841 | ) | ||||
| Other comprehensive loss: | ||||||||||
| Foreign currency translation differences | (82 | ) | (19 | ) | ||||||
| Total comprehensive loss for the period | $ | (13,678 | ) | $ | (97,860 | ) | ||||
| Basic and diluted loss per share | $ | (0.19 | ) | $ | (1.73 | ) | ||||
| Weighted average number of Class A | ||||||||||
| common shares - basic and diluted | 72,563,227 | 56,502,778 | ||||||||
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INTERMAP TECHNOLOGIES CORPORATION
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|
Share
|
Contributed
|
Cumulative
|
Deficit | Total | |||||||||||||||
| Balance at January 1, 2010 | $ | 181,623 | $ | 7,858 | $ | 147 | $ | (71,835 | ) | $ | 117,793 | ||||||||
| Comprehensive loss for the period | - | - | (19 | ) | (97,841 | ) | (97,860 | ) | |||||||||||
| Share-based compensation | 198 | 732 | - | - | 930 | ||||||||||||||
| Issuance of shares | 6,157 | - | - | - | 6,157 | ||||||||||||||
| Issuance costs | (725 | ) | - | - | - | (725 | ) | ||||||||||||
| Compensation options issued to agent | - | 110 | - | - | 110 | ||||||||||||||
| Balance at December 31, 2010 | 187,253 | 8,700 | 128 | (169,676 | ) | 26,405 | |||||||||||||
| Comprehensive loss for the period | - | - | (82 | ) | (13,596 | ) | (13,678 | ) | |||||||||||
| Share-based compensation | 597 | 698 | - | - | 1,295 | ||||||||||||||
| Issuance of shares | 6,791 | - | - | - | 6,791 | ||||||||||||||
| Issuance costs | (384 | ) | - | - | - | (384 | ) | ||||||||||||
| Compensation options issued to agent | (265 | ) | 265 | - | - | - | |||||||||||||
| Balance at December 31, 2011 | $ | 193,992 | $ | 9,663 | $ | 46 | $ | (183,272 | ) | $ | 20,429 | ||||||||
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INTERMAP TECHNOLOGIES CORPORATION
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||||||||||
| For the years ended | ||||||||||
| December 31, | ||||||||||
| 2011 | 2010 | |||||||||
| Cash flows (used in) provided by: | ||||||||||
| Operating activities: | ||||||||||
| Net loss for the period | $ | (13,596 | ) | $ | (97,841 | ) | ||||
| Adjusted for the following non-cash items: | ||||||||||
| Depreciation of property and equipment | 3,377 | 4,567 | ||||||||
| Amortization of data library | 4,610 | 14,346 | ||||||||
| Impairment of data library | - | 55,362 | ||||||||
| Amortization of intangible assets | 495 | 471 | ||||||||
| Share-based compensation expense | 1,011 | 1,068 | ||||||||
| (Gain) loss on disposal of equipment | (2,514 | ) | 72 | |||||||
| Amortization of deferred lease inducements | 55 | (279 | ) | |||||||
| Deferred taxes | (80 | ) | 6 | |||||||
| Financing costs | 160 | 142 | ||||||||
| Current income tax expense | 170 | 57 | ||||||||
| Interest paid | (99 | ) | (140 | ) | ||||||
| Income tax paid | (105 | ) | (154 | ) | ||||||
| Change in non-cash operating working capital | (2,545 | ) | 14,162 | |||||||
| (9,061 | ) | (8,161 | ) | |||||||
| Investing activities: | ||||||||||
| Purchase of property and equipment | (102 | ) | (1,015 | ) | ||||||
| Investment in intangible assets | (242 | ) | - | |||||||
| Investment in data library | - | (4,605 | ) | |||||||
| Proceeds from sale of equipment | 1 | 4,019 | ||||||||
| (343 | ) | (1,601 | ) | |||||||
| Financing activities: | ||||||||||
| Proceeds from issuance of common shares | 6,791 | 6,157 | ||||||||
| Securities issuance costs | (384 | ) | (725 | ) | ||||||
| Repayment of obligations under finance lease | (239 | ) | (167 | ) | ||||||
| Repayment of long-term debt | (531 | ) | (1,390 | ) | ||||||
| 5,637 | 3,875 | |||||||||
| Effect of foreign exchange on cash | 8 | (112 | ) | |||||||
| Decrease in cash and cash equivalents | (3,759 | ) | (5,999 | ) | ||||||
| Cash and cash equivalents, beginning of period | 4,356 | 10,355 | ||||||||
| Cash and cash equivalents, end of period | $ | 597 | $ | 4,356 | ||||||
Contact:
Intermap Technologies
Rich Mohr, +1 303-708-0955
Senior
Vice President & Chief Financial Officer
Email Contact
or
Canada
– Financial
e.vestor Communications Inc.
Cory Pala, +1
416-657-2400
Investor Relations
Email Contact
or
United
States – Financial
Genesis Select Corporation
Budd
Zuckerman, +1 303-415-0200
Investor Relations
Email Contact