(PRNewswire) —  (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2014. A conference call will be held today, March 30^th, at 5:30 p.m. Eastern Time to discuss the results.

All amounts in this news release are in United States dollars unless otherwise noted.

In 2014, Intermap's focus was on the continued development of its Orion Platform^®, coupled with operational preparation to support anticipated Spatial Data Infrastructure ("SDI") contract(s). The Company's Orion Platform and its SDI capabilities were designed to derive answers for customers and provide recurring revenue streams for the Company.

"The year 2014 was a year of investment in Intermap's future. We continued to make major advancements in our platform software capabilities, our NEXTMap database, and in our professional services competencies," said Todd Oseth, President & CEO of Intermap. "This investment positions the Company well for the coming year to deliver on the Orion Platform promise we made to our customers. We are currently pursuing large SDI projects which have initial delivery periods of at least two years, and are designed to generate recurring revenue streams for years to follow. We believe the Company's internal investment during 2014 was necessary to position the Company for success in these areas."

Mr. Oseth continued, "In 2014, Intermap introduced its InsitePro^™ software application, which is focused on the property insurance market. During the course of the year, the InsitePro product team talked to over 40 primary insurers, resulting in significant insight into the needs of property insurers and the competitive landscape. The combination of Intermap's high-quality terrain data and European insurance experience, provides a compelling basis to drive the further development of InsitePro. No competitor has access to comparable data assets and flood insurance underwriters recognize this value." Mr. Oseth added, "The ongoing development of Intermap's Orion Platform presents a way for InsitePro to become a complete underwriting solution for large insurance carriers, including some of the world's largest multi-nationals. InsitePro's first customer was Swiss Re, delivering flood underwriting software for use in Brazil. As InsitePro enters 2015, we remain confident in the business potential as we continue to add new functionality and integrate new datasets into the software."

Orion Platform:  The Orion Platform was developed to provide an integrated platform, delivering customized and scalable geospatial solutions, powered from five layers of products and services as follows:

1. 3DBI:  Software applications designed to help professionals make better location-based decisions without the need for expensive and complicated GIS software.
2. Infrastructure:  Network-based software delivered in both platform as a service ("PaaS") and traditional licenses.
3. Foundation Data Layer:  Seamless, off-the-shelf, high resolution elevation and image data.
4. Fusion Services:  Integration of geospatial and location-based content into one homogeneous, consistent database using the Company's proprietary fusion processes and tools.
5. Geospatial Services:  Helps a customer define their overall geospatial enterprise problem. The services also include custom data collections using a variety of sensor types (i.e. radar, LiDAR, satellite, aerial photography, etc.).

SDI:  An SDI is the combination of several components, all working together, to allow people across governments, organizations, and the general public to analyze and share spatial data and solutions. The key components of an SDI include technology, policies, people, processes, and resources – collectively working together in acquiring, processing and delivering location-based intelligence answers. When designed and implemented well, an SDI can facilitate economic development, infrastructure growth, security, and safety to a nation. Further to this, an SDI can drive the creation of a comprehensive national base map and an integrated geospatial data operating environment.

The Company believes that an SDI can be essential to the successful completion of major infrastructure projects and economic growth in developing nations, and can enable projects such as fiber optic telecommunications lines; expansion of hydroelectric power and build out of the power grid; planning and building of new roads and railroads; expansion of mining and hydrocarbon exploration; national security; tax revenue growth; and protection of the environment.

An SDI project can support governments with the creation of a comprehensive, three dimensional (3D) digital infrastructure that can be used to model and plan for a number of infrastructure, economic, and catastrophic circumstances. An SDI can enable multiple government and commercial uses, and can provide actionable economic related decisions in the areas of natural resources exploration (agriculture, forestry, hydroelectricity, mining, oil and gas), environment, education, transportation, communications, health, and security.

An SDI can also provide the analysis and dissemination of information for government agencies to proactively respond to identified needs of major development projects. A strong SDI originates with a foundation of accurate digital geospatial layers, real-time analytics, and location-based answers.

Financial Review

"For the year 2014, Intermap was between major governmental contracts, which is the primary reason for the decreased operational performance during the year. However, our identified sales opportunities continue to grow, driven primarily by the risk management needs of our customers, as well as several SDI opportunities internationally," said Mr. Oseth. "It is important to remember that our SDI business carries with it significant revenue and operational variations on a quarter-to-quarter, and annual basis, as we saw during 2014. We are working to close new Orion Platform based SDI contracts in the coming months from our growing list of identified opportunities, which are expected to improve the future financial results of the Company. Unfortunately, some of our larger opportunities have been delayed for varying reasons including lengthened approval cycles and for political reasons within the regions of interest where the opportunities exist."   

For the fourth quarter 2014, Intermap reported total revenue of $1.1 million, compared to $4.1 million last year. Mapping services revenue in the fourth quarter was NIL, compared to $1.0 million last year. Data licensing revenue was $0.5 million, compared to $1.7 million last year. Software revenue was slightly lower at $0.5 million, compared to $0.6 million last year. And finally, professional services revenue was $0.1 million, compared to $0.8 million last year. As of December 31, 2014 there remained $0.5 million in backlog contracts to be recognized in future periods.

For the fourth quarter 2014 and 2013, personnel expense was $3.0 million and $2.9 million, respectively. Headcount decreased slightly on a year-over-year basis, but the associated costs were offset by a change in the mix of personnel.

For the fourth quarter 2014, purchased services and materials expense was $1.0 million, a 54% decrease from $2.1 million last year. The decrease was primarily due to decreases in mapping services work during the period. 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 fourth quarter 2014, travel expense was $0.2 million, flat with last year, and facilities and other expenses was $0.5 million, equivalent to last year.

Fourth quarter adjusted EBITDA, a non-GAAP and IFRS financial measure, was ($3.5) million, compared with ($1.5) million last year. Adjusted EBITDA excludes share-based compensation expense, gain or loss on the disposal of equipment, asset impairment charges, and gain or loss on foreign currency translation. 

During the year, the Company corrected the accounting for certain financial instruments that were denominated in a foreign currency or included foreign currency embedded derivatives – these include all non-broker warrants. The Company's functional currency is the United States dollar and the Company has issued non-broker warrants and debt with a conversion option denominated in a currency other than its functional currency, which is the primary driver behind the correction. Previously, the Company accounted for the warrants as a component of equity; however, in accordance with IAS 39, Financial Instruments: Recognition and Measurement, warrants denominated in a foreign currency and foreign currency embedded derivatives are required to be classified as liabilities under IFRS and marked to fair value through profit and loss each reporting period. There is no impact on total assets, revenue, costs of sales, operating loss, or total cash flows from operating activities, as a result of this restatement.

For the year ended December 31, 2014, Intermap reported total revenue of $8.3 million, compared to $24.4 million recorded in 2013. Mapping services revenue for the year was $2.9 million compared to $18.0 million last year, making up the majority of the year-over-year revenue difference. Data licensing revenue was $3.3 million compared to $3.9 million last year. 3DBI software applications revenue was $1.2 million compared to $1.5 million last year. Professional services revenue was $0.9 million compared to $1.0 million last year.

For the year ended December 31, 2014, personnel expense was $12.1 million compared to $12.4 million last year. The year-over-year decrease is primarily due to a change in the mix of personnel and a slight decrease in headcount on a year-over-year basis.

For the year ended December 31, 2014, purchased services and materials expense was $5.5 million compared to $7.8 million last year. The year-over-year decrease in purchased services and materials was due primarily to a decreases in subcontractor expenses associated with the airborne radar collection portion of the Company's mapping services business.

Adjusted EBITDA for the year was ($12.0) million compared with $1.2 million for 2013. For the year 2014, net loss was $12.8 million, or ($0.14) per share, compared with a net loss of $13.5 million (includes a $9.2 million asset impairment charge), or ($0.16) per share, last year.

The cash position of the Company at December 31, 2014 (cash and cash equivalents) was $0.5 million, compared to $2.4 million at December 31, 2013. Amounts receivable and unbilled revenue at December 31, 2014 was $1.5 million, compared to $6.6 million at December 31, 2013. Working capital decreased to ($8.7) million at December 31, 2014, compared to $2.6 million at December 31, 2013 (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

In October 2014, Intermap announced the release of InsitePro v2.2. This version included a new Underwriting Module that provides property insurance underwriters with a means to evaluate individual locations for flood risk and other perils, globally.

In November 2014, Intermap announced the availability of InsitePro for Pipelines — a customized version of InsitePro, the Company's natural catastrophe risk management software. InsitePro for Pipelines was created specifically for hazardous liquid pipeline operators throughout North America, enabling risk-based decision-making and improved environmental and regulatory compliance by providing immediate, up-to-date, simple access to geo-hazards and high consequence areas ("HCAs"). HCAs are defined by the Pipeline and Hazardous Materials Safety Administration (PHMSA) as an industry standard for ensuring pipeline operators have accurate information on areas that require special management practices. These include population, commercially navigable waterways, ecologically sensitive areas and locations that house public drinking water reserves. The Company believes InsitePro for Pipelines is a solution that can support numerous strategic business decisions that incorporate risk such as network expansion or contraction, integrity management assessment and maintenance, or volume decisions. In addition, InsitePro for Pipelines includes Intermap's flood and wildfire risk information, which can be a tool for companies operating hazardous liquid pipelines.

Intermap announced that on December 12, 2014, it had completed a private placement convertible debt financing for aggregate proceeds of US$500,000 (the "Debt Financing"). The Debt Financing matures six months from the date of issuance and the principal amount is convertible into common shares of the Company (the "Common Shares") at the holder's option into 5,741,187 Common Shares (25% premium to market based on closing price on December 11, 2014). Simple interest is payable at maturity at an annual rate of 16.0%. If the principal amount is converted into Common Shares, any interest payable on such principal amount shall be forgiven and the Company shall cease to owe, and the holder shall cease to have any right to payment of, any interest amount. In addition, an aggregate of 1,137,202 warrants were issued to the holder of the convertible debt, entitling the holder to purchase up to 1,137,202 Common Shares at a price of C$0.10 per share (25% premium to market based on closing price on December 11, 2014). The warrants expire in three years and are subject to adjustment in certain events. The Debt Financing is subject to a prepayment right by the Company at 108% of the principal amount at any time from the date of closing, subject to a 60 day notice period and the holder's right to exercise his conversion rights during any such notice period. The proceeds of the Debt Financing will be used by the Company for general operating purposes.

Intermap announced that on December 26, 2014, it had completed a private placement convertible debt financing for aggregate proceeds of US$500,000 (the "Debt Financing"). The Debt Financing matures on March 31, 2015 and the principal amount is convertible into common shares of the Company (the "Common Shares") at the holder's option into 8,333,333 Common Shares. Simple interest is payable at maturity at an annual rate of 18.0%. If the principal amount is converted into Common Shares, any interest payable on such principal amount shall be forgiven and the Company shall cease to owe, and the holder shall cease to have any right to payment of, any interest amount. In addition, warrants were issued to the holder of the convertible debt, entitling the holder to purchase up to 1,666,667 Common Shares at a price of C$0.07 per share. The warrants expire in three years and are subject to adjustment in certain events. The Debt Financing is subject to a prepayment right by the Company at 105% of the principal amount at any time from the date of closing, subject to a 30 day notice period and the holder's right to exercise his conversion rights during any such notice period. The proceeds of the Debt Financing will be used by the Company for general operating purposes. In conjunction with this convertible debt financing, the Company has also applied to the TSX to amend the exercise price to C$0.08 per share for outstanding warrants to purchase 4,791,572 Common Shares of the Company held by a prior note holder (the "Holder") from the Company's June 2012 and February 2014 convertible debt financings. The Holder is arm's length to the Company. In addition to this re-pricing of the exercise price, the Company also intends to issue new warrants to the Holder to purchase 4,597,443 Common Shares of the Company with an exercise price of C$0.08 per share and an expiry date of February 6, 2017. The amendment to the warrant exercise price and the issuance of the new warrants are being given as consideration for the release by the Holder of a first priority lien in certain of the Company's secured assets and the sharing of security on the remainder of the Company's assets on a pro-rata basis with the new lender under the Company's Debt Financing discussed above. The amendments to the warrant exercise price and the issuance of the new warrants are subject to TSX approval.

As of March 30, 2015, there were 91,782,665 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 30, 2015, at 5:30 pm EST (3:30pm MST). 

To participate in the call, please dial +1-647-427-7450 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through April 30, 2015. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 6202086 to listen to the rebroadcast. The call will also be available on Intermap's website at http://www.intermap.com/investors 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 software 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, 2014 and 2013, 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.

 

 

 

 

SOURCE Intermap Technologies Corporation

Contact:

Intermap Technologies Corporation Intermap Technologies: Rich Mohr, Senior Vice President & Chief Financial Officer Email Contact +1 (303) 708-0955; Financial: Cory Pala, Investor Relations Email Contact +1 (416) 657-2400