Many of the Company's government and commercial customers experienced business interruption and delays as they transitioned to remote-work environments mandated in response to Covid-19. The Company continues to work closely with its customers and has not missed or delayed any contracted delivery milestones.
Subsequent Events
Subsequent to the quarter, the Company entered into three new software subscriptions. The first is with a global telecommunications operator for its 5G tower link planning network. The second is with a global beyond-line-of-sight commercial drone operator for its flight corridor route planning network. A third subscription is with a new "admitted-lines" insurance carrier, the Company's second admitted carrier client announced this year, for its European perils underwriting platform.
In addition, the Company was notified about the final acceptance from United States Geological Survey (USGS) for the completion of the Alaska Statewide Mapping Initiative (3DEP), whereby Intermap was a subcontractor on the Dewberry team to collect 1,188,527 square kilometers of high-resolution, 3D elevation data covering 77% of the state, using Intermap's proprietary IFSAR sensors, and delivered ORI, DTM, and DSM models at 0.55m RMSE vertical accuracy (significantly better than the 1.83m RMSE contract specification), delivered under budget and months ahead of schedule. USGS will make the data products publicly available and are immediately accessible to more than 20 state and federal agencies. This successful program establishes a new model for effective public-private partnership (P3) and federal-state cooperation, with cooperative pooled funding. More information on Intermap's government work can be found here.
Preliminary results and AGM update
For the quarter ending June 30, 2020, the Company expects revenue to be $1.1 million, compared with $1.2 million for the first quarter of 2020. Revenue for the six months ending June 30, 2020 is expected to be $2.7 million, compared with $2.8 million last year. Net income will see a significant improvement due to the expected gain on the modification of $32.1 million of debt from the previously announced Amended Settlement Agreement.
During the second quarter of 2020, the Company undertook a significant reduction in its facilities costs in the United States and Canada, reducing the annual cash cost by nearly 50% for its two primary business locations.
The Company's cash balance at June 30, 2020, is projected to be approximately $1.1 million, compared with $300 thousand at the end of the first quarter and $860 thousand for the same period last year. The following table summarizes select projected financial information:
|
| Three months ended | Six months ended | ||||||
|
| June 30, | June 30, | ||||||
U.S. $ millions | 2020 | 2019 | 2020 | 2019 | ||||
|
|
|
|
|
| ||||
Revenue: |
|
|
|
| ||||
Acquisition services | $ | 0.3 | $ | 1.1 | $ | 1.1 | $ | 1.2 |
Value-added data | 0.2 | 0.3 | 0.4 | 0.5 | ||||
Software and solutions | 0.6 | 0.5 | 1.2 | 1.1 | ||||
Total revenue | $ | 1.1 | $ | 1.9 | $ | 2.7 | $ | 2.8 |
Operating income (loss) | $ | (1.4) | $ | (1.5) | $ | (2.4) | $ | (3.7) |
Financing costs | $ | (0.5) | $ | (0.7) | $ | (1.3) | $ | (1.4) |
| Net income (loss) | $ | 31.0 | $ | (2.2) | $ | 29.2 | $ | (5.2) |
| Adjusted EBITDA | $ | (0.9) | $ | (0.8) | $ | (1.5) | $ | (2.6) |
|
|
|
|
|
| ||||
|
| June 30, | June 30, |
|
| ||||
| Assets: | 2020 | 2019 |
|
| ||||
| Cash, amounts receivable, unbilled revenue | $ | 2.3 | $ | 2.6 |
|
| ||
| Total assets | $ | 7.5 | $ | 8.2 |
|
| ||
| Liabilities: |
|
|
|
| ||||
| Long-term liabilities | $ | - | $ | 30.7 |
|
| ||
| Total liabilities | $ | 7.0 | $ | 37.7 |
|
| ||
