All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $8.9 million for the second quarter of 2013, an 11% increase from $8.0 million recorded in the same period of 2012. Net income for the second quarter of 2013 was $0.2 million, or $0.002 per share, compared to net income of $0.8 million, or $0.01 per share for the second quarter of 2012. Second quarter adjusted EBITDA, a non IFRS financial measure, was $2.2 million, compared to adjusted EBITDA of $2.7 million for the same period in 2012. 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 report revenue growth on a quarter-over-quarter and year-over-year basis for the second quarter and year-to-date periods in 2013," said Todd Oseth, President & CEO of Intermap. "Our year-to-date financial performance not only shows improved revenue growth, but also includes lower operating expenses, higher bottom line performance, and improved adjusted EBITDA over last year at this time. With this performance, we are well positioned to achieve our goal for a third consecutive year of growth. The improved operating results for the first half of the year are coupled with a stronger balance sheet where working capital has more than doubled from $1.9 million at year-end to $4.3 million. Additionally, this quarter's financial performance contributes to the Company's average quarterly adjusted EBITDA of over $2.0 million for the past five quarters. It's clear that our efforts to refocus the business into a solutions-driven company are continuing to pay off."
Mr. Oseth added, "Our June announcement of the Orion Platform™ further supports Intermap's progression from a project-driven company, to a solutions-driven company. The Orion Platform is the world's first software-driven spatial data platform that facilitates the immediate delivery of 3D business intelligence applications anywhere in the world. It converts and presents all types of geospatial data into a common format for consistent and easy management. It also provides a common programming interface so software applications have a standard approach to access and manipulate geospatial data to quickly derive answers. An added benefit is that the platform can be installed anywhere in the world in 90 days or less."
More information on Intermap's Orion Platform can be found on Intermap's website at http://www.intermap.com/en-us/company/solutionsoverview.aspx.
Financial Review
Contract services revenue in the second quarter increased to $7.8 million from $1.6 in the year ago quarter, and data licensing revenue decreased to $1.1 million from $6.4 million in the year ago quarter. As of June 30, 2013, the Company's contract backlog of $5.3 million consisted of $4.4 million in contract services and $0.9 million in data licensing revenue.
During the second quarter of 2013, contract services revenue was recognized primarily from a single contract in Southeast Asia in the amount of $7.4 million. For the same period in 2012, contract services revenue was recognized primarily from two contracts, one in Southeast Asia and one in North America in the amounts of $0.9 million and $0.6 million, respectively. The decrease in data licensing revenue during the second quarter of 2013 was primarily the result of one significant sale from the Company's NEXTMap® dataset, which generated $5.2 million in revenue during the second quarter of 2012. There were no significant data licensing contracts that generated similar amounts of revenue during the second quarter of 2013.
For the second quarter 2013, personnel expense was $3.2 million, an 8% decrease from $3.5 million for same period last year. The decrease was primarily due to attrition and was partially offset by an increase in commission expense consistent with increased revenue recognized on a year-over-year basis.
For the second quarter 2013, purchased services and materials expense was $2.7 million, a 119% increase from $1.2 million for the same period last year. The increase in this category of expense is primarily related to an increase in job and subcontractor expenses associated with the Company's airborne radar data collection activities during the period. The stage of progress on each radar data collection contract and the individual requirements and logistics associated with radar collection efforts can create expense variations between reporting periods. Purchased services and materials includes (i) aircraft related costs including jet fuel and aircraft maintenance; (ii) professional and consulting costs; (iii) third-party support services related to the acquisition, 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, 2013 (cash and cash equivalents) was $2.7 million, compared to $2.1 million at December 31, 2012. Amounts receivable and unbilled revenue at June 30, 2013 was $8.9 million, compared to $8.4 million at December 31, 2012. Working capital increased to $4.3 million at June 30, 2013, compared to $1.9 million at December 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 a $905,000 task order for a project in North America. Using its proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology, the contract called for Intermap to collect orthorectified radar imagery and high resolution elevation data for an area never mapped to this accuracy. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications. Approximately 20% of the contract was recognized as revenue during the second quarter. Additional contract funding for this project may occur at future dates.
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Intermap announced the official launch of its Orion Platform™, the
industry's first Software-Driven Spatial Data Platform. The Orion
Platform is designed to allow governmental entities and enterprises
around the world to manage their entire spatial data infrastructure
program from one unified control point. Governments and enterprises are
increasingly using geospatial data to manage infrastructure, weather
related risks, agriculture, excavation, national security, and much
more. The Orion Platform has five integrated layers: (i) Geospatial
Services - auditing and custom data collection; (ii) Foundation Data -
seamless, off-the-shelf, high-resolution elevation data; (iii) Data
Fusion - robust integration of multiple datasets into one homogeneous
data specification; (iv) 3DBI - web-based applications for both GIS and
non-GIS professionals; and (v) Platform Delivery Services - array of
SaaS-based and LAN-based delivery methods.
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Intermap introduced AdPro v3.0 for Media Buyers, the first
Software-as-a-Service (SaaS) application specifically designed for
creative agencies and media buyers to evaluate the advertising
potential of any Out-of Home (OOH) advertising location. Valuable
information can be rapidly extracted from fused layers of data in
Intermap's database enabling an agency to understand and measure the
drivers of a successful location-based advertising campaign including
area demographics, proximity to points of interest, traffic analysis,
exposure time, and viewing approach. This information is then applied
to the placement and value of static billboards, digital billboards,
posters, city walls, bus shelters, urban furniture, shopping malls,
retail locations, sports arenas, concert venues, and street corners.
- Subsequent to the end of the second quarter, on August 6, 2013 , the Company announced a $3.5 million contract for an airborne radar mapping services solution contract. The Company will use its IFSAR radar technology to collect orthorectified radar imagery and high resolution elevation data to enhance the customer's existing geospatial map database. The new dataset will be used for improved disaster planning, resource management, security interests, and infrastructure planning. The project is scheduled to commence immediately and the final deliveries of the dataset are expected to be substantially complete by the end of the first quarter 2014.
