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.
-
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.
-
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.
As of June 30, 2013, there were 87,139,499 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, August 12, 2013, at 4:30 pm ET (2:30pm MT). To participate in the call, please dial +1-416-764-8609 or 1-888-390-0605 approximately 10 minutes prior to the conference call and provide conference ID 65329895. A recording of the conference call will be available through August 30, 2013. Please dial +1-416-764-8677 or 1-888-390-0541 and provide pass code 329895 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 an industry leader in geospatial solutions on demand with its secure, cloud based Orion Platform™. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of geospatial data into a single source, the Orion Platform is able to provide location- based solutions for customers in diverse markets around the world. For more information please visit www.intermap.com.
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, 2012, 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.
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Balance Sheets
(In thousands of United States dollars)
| June 30, | December 31, | |||
| 2013 | 2012 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 2,660 | $ 2,055 | ||
| Amounts receivable | 7,089 | 5,735 | ||
| Unbilled revenue | 1,799 | 2,709 | ||
| Work in process | 3 | 10 | ||
| Prepaid expenses | 609 | 625 | ||
| 12,160 | 11,134 | |||
| Property and equipment | 3,238 | 3,703 | ||
| Data library | 11,524 | 13,829 | ||
| Intangible assets | 176 | 235 | ||
| Long-term lease receivable | 48 | - | ||
| $ 27,146 | $ 28,901 | |||
| Liabilities and Shareholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued liabilities | $ 4,908 | $ 4,747 | ||
| Convertible note | 999 | 2,357 | ||
| Current portion of notes payable | 964 | 892 | ||
| Current portion of deferred lease inducements | 98 | 97 | ||
| Unearned revenue and deposits | 59 | 145 | ||
| Income taxes payable | 33 | 10 | ||
| Obligations under finance leases | 86 | 262 | ||
| Provisions | 720 | 720 | ||
| 7,867 | 9,230 | |||
| Long-term notes payable | 424 | 923 | ||
| Deferred lease inducements | 295 | 390 | ||
| 8,586 | 10,543 | |||
| Shareholders' equity: | ||||
| Share capital | 196,121 | 194,144 | ||
| Accumulated other comprehensive income | 24 | 58 | ||
| Contributed surplus | 10,443 | 10,354 | ||
| Deficit | (188,028) | (186,198) | ||
| 18,560 | 18,358 | |||
| $ 27,146 | $ 28,901 | |||
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Profit or Loss and Other
Comprehensive Income
(In thousands of United States dollars, except per share information)
| For the three months | For the six months | ||||||||
| ended June 30, | ended June 30, | ||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||
| Revenue: | |||||||||
| Contract services | $ 7,755 | $ 1,557 | $ 11,773 | $ 4,910 | |||||
| Data licenses | 1,122 | 6,432 | 2,197 | 7,304 | |||||
| 8,877 | 7,989 | 13,970 | 12,214 | ||||||
| Expenses: | |||||||||
| Operating costs | 6,862 | 5,535 | 12,183 | 12,866 | |||||
| Depreciation of property and equipment | 365 | 465 | 724 | 1,067 | |||||
| Amortization of data library | 1,153 | 1,153 | 2,305 | 2,305 | |||||
| Amortization of intangible assets | 30 | 29 | 59 | 108 | |||||
| 8,410 | 7,182 | 15,271 | 16,346 | ||||||
| Operating income (loss) | 467 | 807 | (1,301) | (4,132) | |||||
| Gain on disposal of equipment | 200 | 6 | 204 | 26 | |||||
| Financing costs, net | (228) | (44) | (450) | (93) | |||||
| Gain (loss) on foreign currency translation | (269) | 66 | (236) | (51) | |||||
| Income (loss) before income taxes | 170 | 835 | (1,783) | (4,250) | |||||
| Income tax (expense) recovery: | |||||||||
| Current | - | 2 | (47) | (36) | |||||
| Deferred | - | (5) | - | 8 | |||||
| - | (3) | (47) | (28) | ||||||
| Net income (loss) for the period | $ 170 | $ 832 | $ (1,830) | $ (4,278) | |||||
| Other comprehensive income (loss): | |||||||||
| Foreign currency translation differences | 3 | (68) | (34) | (37) | |||||
| Total comprehensive income (loss) for the period | $ 173 | $ 764 | $ (1,864) | $ (4,315) | |||||
| Basic income (loss) per share | $ 0.00 | $ 0.01 | $ (0.02) | $ (0.05) | |||||
| Diluted income (loss) per share | $ 0.00 | $ 0.01 | $ (0.02) | $ (0.05) | |||||
| Weighted average number of Class A | |||||||||
| common shares - basic | 79,174,911 | 78,557,448 | 79,032,206 | 78,568,250 | |||||
| common shares - diluted | 79,646,130 | 78,557,448 | 79,032,206 | 78,568,250 | |||||
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of United States dollars)
|
|
|
|
Share
Capital |
|
|
Contributed
Surplus |
Cumulative
Translation Adjustments |
Deficit | Total |
| Balance at January 1, 2012 | $ | 193,992 | $ | 9,663 | $ 46 | $ (183,272) | $ 20,429 | ||
| Comprehensive loss for the period | - | - | (37) | (4,278) | (4,315) | ||||
| Share-based compensation | 138 | 368 | - | - | 506 | ||||
| Warrant component of convertible note | 19 | - | - | - | 19 | ||||
| Conversion option of convertible note | - | 136 | - | - | 136 | ||||
| Issuance costs | (1) | (4) | - | - | (5) | ||||
| Balance at June 30, 2012 | $ | 194,148 | $ | 10,163 | $ 9 | $ (187,550) | $ 16,770 | ||
| Comprehensive profit for the period | - | - | 49 | 1,352 | 1,401 | ||||
| Share-based compensation | - | 224 | - | - | 224 | ||||
| Deferred tax effect of convertible note | (4) | (33) | - | - | (37) | ||||
| Balance at December 31, 2012 | $ | 194,144 | $ | 10,354 | $ 58 | $ (186,198) | $ 18,358 | ||
| Comprehensive loss for the period | - | - | (34) | (1,830) | (1,864) | ||||
| Share-based compensation | 81 | 168 | - | - | 249 | ||||
| Convertible note conversion | 1,817 | - | - | - | 1,817 | ||||
| Conversion option of convertible note | 79 | (79) | - | - | - | ||||
| Balance at June 30, 2013 | $ | 196,121 | $ | 10,443 | $ 24 | $ (188,028) | $ 18,560 | ||
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)
| For the Six Months Ended June 30, | 2013 | 2012 | |||
| Cash flows provided by: | |||||
| Operating activities: | |||||
| Net loss for the period | $ (1,830) | $ (4,278) | |||
| Adjusted for the following non-cash items: | |||||
| Depreciation of property and equipment | 724 | 1,067 | |||
| Amortization of data library | 2,305 | 2,305 | |||
| Amortization of intangible assets | 59 | 108 | |||
| Share-based compensation expense | 249 | 490 | |||
| Gain on disposal of equipment | (204) | (26) | |||
| Amortization of deferred lease inducements | (94) | 133 | |||
| Deferred taxes | - | (8) | |||
| Net financing costs | 450 | 93 | |||
| Current income tax expense | 47 | 36 | |||
| Interest paid | (49) | (65) | |||
| Income tax paid | (29) | (96) | |||
| Changes in working capital, net of investing activities: | |||||
| Amounts receivable, net | (1,310) | 1,400 | |||
| Work in process and other assets | 933 | (105) | |||
| Accounts payable | 345 | 526 | |||
| Accrued liabilities | (122) | 116 | |||
| Unearned revenue and deposits | (86) | (1,289) | |||
| Loss on foreign currency translation | (25) | (91) | |||
| 1,363 | 316 | ||||
| Investing activities: | |||||
| Purchase of property and equipment | (259) | - | |||
| Investment in intangible assets | - | (113) | |||
| Proceeds from sale of equipment | 112 | 33 | |||
| (147) | (80) | ||||
| Financing activities: | |||||
| Proceeds from issuance of convertible note | - | 2,500 | |||
| Financing costs of convertible note | - | (70) | |||
| Issuance costs of convertible note | - | (5) | |||
| Repayment of obligations under finance lease | (176) | (156) | |||
| Repayment of long-term debt | (419) | (273) | |||
| (595) | 1,996 | ||||
| Effect of foreign exchange on cash | (16) | 7 | |||
| Increase in cash and cash equivalents | 605 | 2,239 | |||
| Cash and cash equivalents, beginning of period | 2,055 | 597 | |||
| Cash and cash equivalents, end of period | $ 2,660 | $ 2,836 | |||
SOURCE Intermap Technologies Corporation
| Contact: |
| Intermap Technologies Corporation
<p> <b>Intermap Technologies</b><br/> Rich Mohr, Senior Vice President & Chief Financial Officer<br/> <a href="mailto: Email Contact +1 (303) 708-0955 </p> <p> <b>Canada - Financial </b><br/> Cory Pala, Investor Relations<br/> e.vestor Communications Inc.<br/> <a href="mailto: Email Contact +1 (416) 657-2400 </p> <p> <b>United States - Financial </b><br/> Budd Zuckerman, Investor Relations<br/> Genesis Select Corporation<br/> <a href="mailto: Email Contact +1 (303) 415-0200 </p> |