Intermap Technologies Reports 2015 Second Quarter Financial Results
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Intermap Technologies Reports 2015 Second Quarter Financial Results

(PRNewswire) — (TSX: IMP) – Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the second quarter ended June 30, 2015. A conference call will be held tomorrow, August 14th, at 11:00 a.m. Eastern Time to discuss the results.

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

Intermap reported total revenue of $0.7 million for the second quarter of 2015, a 25% decrease from the first quarter of the year. Second quarter revenue of $0.7 million is compared to $2.4 million in the same period of 2014. During the second quarter of last year, a $1.0 million NEXTMap® data sale was recognized on a single contract from a U.S. government entity. No similar sized contract was closed during the first six months of the current year, making up the majority of the variance between the current year and prior year periods. Additionally, NEXTMap data sales were lower in the U.S., Europe and Southeast Asia during the current year. Net operating loss for the second quarter of 2015 was $4.4 million, compared to a net operating loss of $3.2 million for the second quarter of 2014. Second quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $3.7 million, an increase from an adjusted EBITDA loss of $2.8 million for the same period in 2014. Adjusted EBITDA excludes share-based compensation, change in value of derivative instruments, gain or loss on the disposal of equipment, impairment losses or reversals, and gain or loss on foreign currency translation.

"Our focus during the quarter was the closing of a spatial data infrastructure (SDI) project. We reported success with this on June 22, 2015 when we announced that Intermap had received a letter of award for an Orion Platform® implementation program valued at greater than $125 million" said Todd Oseth, President & CEO of Intermap. "This award represents the largest SDI award in the Company's history. We're currently working to define the final scope of the project and finalize the definitive agreement giving effect to the terms and conditions of the tender. We remain optimistic that this final step can be completed by the end of the third quarter at which time we will issue a press release with the pertinent details. We believe this award will be a catalyst to close other large Orion Platform government implementations as well as promote Intermap's location based Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) product offerings for the enterprise sector."

Mr. Oseth added, "during the second quarter we saw continued expansion of our InsitePro user base in both the US and South America. Our risk based customers are excited about InsitePro's capabilities and the fact that we can customize the application for their individual needs. In addition to the positive developments with our software business, we also saw a repeat customer contract with us for further data acquisition in North America. The contract was for more than $2 million. The majority of that contract is now complete and the results continue to surpass our published specifications. We are creating a truly amazing dataset for this customer."  

Financial Review

Consolidated revenue for the second quarter of 2015 totaled $0.7 million and included (i) $0.1 million in mapping services, (ii) $0.1 million in professional services, (iii) $0.3 million in data licensing, and (iv) $0.2 million in 3DBI software licensing. For the same period in 2014, consolidated revenue totaled $2.4 million and included (i) $0.1 million in mapping services, (ii) $0.2 million in professional services, (iii) $1.8 million in data licensing, and (iv) $0.3 million in 3DBI software licensing. Contract backlog at the end of the quarter totaled $2.5 million

For the second quarter of 2015, personnel expense was $3.0 million, compared to $3.1 million in the same period last year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.

For the second quarter of 2015, purchased services and materials expense was $1.2 million, compared to $1.5 million during the same period last year. The decrease in this category of expense is primarily due to a decrease in job and contractor expenses associated with the Company's software development activities. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to airborne data collection efforts, processing and editing of the Company's data collection efforts, and (iv) software expenses (including maintenance and support).

The cash position of the Company at June 30, 2015 (cash, restricted cash, and cash equivalents) was $0.6 million, compared to $0.5 million at December 31, 2014. Amounts receivable and unbilled revenue at June 30, 2015 was $0.9 million, compared to $1.5 million at December 31, 2014. Working capital was negative $20.4 million at June 30, 2015, compared to negative $8.7 million at December 31, 2014 (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

 

As of August 13, 2015, there were 99,163,102 common shares outstanding.

As of August 13, 2015, potential dilutive securities include (i) 7,367,400 outstanding share options in the Company's share option plan with a weighted average exercise price of C$0.46, and (ii) 25,671,150 warrants outstanding with a weighted average exercise price of C$0.08. Each option and warrant entitles the holder to purchase one Class A common share.

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 tomorrow, August 14, 2015, at 11:00 am ET (9:00 am MT). To participate in the call, please dial +1-647-427-7450 approximately 10 minutes prior to the conference call and provide conference ID 96757161. A recording of the conference call will be available through October 31, 2015. Please dial +1-416-849-0833 and provide pass code 96757161 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. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of GIS data into a single source, Intermap is able to provide location based solutions for customers in diverse markets around the world that solve today's complex geospatial challenges.

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, other securities filings, and more specifically in the Company's press release dated June 22, 2015 regarding the letter of award for an Orion Platform implementation. 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.

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Balance Sheets
(In thousands of United States dollars)

     

June 30,

December 31,

     

2015

2014

         

Assets

   
         

Current assets:

   
 

Cash and cash equivalents

$

489

$

537

 

Restricted cash

69

-

 

Amounts receivable

825

1,453

 

Unbilled revenue

73

63

 

Prepaid expenses

456

412

 

Work in process

7

-

     

1,919

2,465

         

Property and equipment

2,381

2,833

Intangible assets

-

13

     

$

4,300

$

5,311

         

Liabilities and Shareholders' Equity

   
         

Current liabilities:

   
 

Accounts payable and accrued liabilities

$

5,043

$

3,785

 

Current portion of convertible and other notes payable

11,381

5,313

 

Current portion of project financing

1,215

1,168

 

Current portion of deferred lease inducements

141

137

 

Unearned revenue and deposits

748

451

 

Warrant liability

3,621

226

 

Income taxes payable

8

2

 

Obligations under finance leases

137

131

     

22,294

11,213

         

Long-term project financing

205

122

Deferred lease inducements

217

311

Obligations under finance leases

26

96

Other long-term liabilities

352

6

     

23,094

11,748

         

Shareholders' equity:

   
 

Share capital

195,799

194,377

 

Accumulated other comprehensive income 

(89)

(57)

 

Contributed surplus

11,543

11,395

 

Deficit

(226,047)

(212,152)

     

(18,794)

(6,437)

         
     

$

4,300

$

5,311

 

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Profit and 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,

             

(as restated)

     

2015

 

2014

 

2015

 

2014

                   

Revenue

$

719

 

$

2,353

 

$

1,675

 

$

4,457

                   

Expenses:

             
 

Operating costs

4,839

 

5,274

 

9,497

 

11,041

 

Depreciation of property and equipment

244

 

295

 

486

 

587

 

Amortization of intangible assets

-

 

30

 

13

 

59

     

5,083

 

5,599

 

9,996

 

11,687

                   

Operating loss

(4,364)

 

(3,246)

 

(8,321)

 

(7,230)

                   

Gain on disposal of equipment

-

 

51

 

47

 

413

Change in fair value of derivative instruments

(3,672)

 

176

 

(3,643)

 

1,405

Financing costs

(866)

 

(321)

 

(1,986)

 

(510)

Financing income

-

 

1

 

4

 

8

Gain (loss) on foreign currency translation

(114)

 

(43)

 

24

 

(121)

Loss before income taxes

(9,016)

 

(3,382)

 

(13,875)

 

(6,035)

                   

Income tax (expense) recovery:

             
 

Current  

-

 

-

 

(20)

 

-

 

Deferred

-

 

-

 

-

 

318

     

-

 

-

 

(20)

 

318

                   

Net loss for the period

$

(9,016)

 

$

(3,382)

 

$

(13,895)

 

$

(5,717)

                   

Other comprehensive loss:

             
                   

Items that are or may be reclassified subsequently to profit or loss:

             
             
 

Foreign currency translation differences

25

 

2

 

(32)

 

1

                   

Comprehensive loss for the period

$

(8,991)

 

$

(3,380)

 

$

(13,927)

 

$

(5,716)

                   

Basic and diluted loss per share

$

(0.10)

 

$

(0.04)

 

$

(0.15)

 

$

(0.06)

                   

Weighted average number of Class A common

             
 

shares - basic & diluted

92,952,350

 

91,648,742

 

92,370,739

 

91,622,212

 

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 December 31, 2013 (as restated)

$

194,337

$

10,671

$

37

$

(199,352)

$

5,693

           

Comprehensive income (loss) for the period

-

-

1

(5,718)

(5,717)

Share-based compensation

40

193

-

-

233

Deferred tax effect of convertible note

-

(318)

-

-

(318)

Conversion option of convertible note

-

599

-

-

599

           

Balance at June 30, 2014 (as restated)

$

194,377

$

11,145

$

38

$

(205,070)

$

490

           

Comprehensive loss for the period

-

-

(95)

(7,082)

(7,177)

Share-based compensation

-

215

-

-

215

Conversion option of convertible note

-

105

-

-

105

Issuance costs

-

(5)

-

-

(5)

Deferred tax effect of convertible note

-

(65)

-

-

(65)

           

Balance at December 31, 2014

$

194,377

$

11,395

$

(57)

$

(212,152)

$

(6,437)

           

Comprehensive loss for the period

-

-

(32)

(13,895)

(13,927)

Share-based compensation

-

164

-

-

164

Exercise of warrants

506

-

-

-

506

Convertible note conversion

556

(16)

-

-

540

New warrant issuance

360

-

-

-

360

           

Balance at June 30, 2015

$

195,799

$

11,543

$

(89)

$

(226,047)

$

(18,794)

 

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)

         

(as restated)

For the six months ended June 30,

2015

 

2014

           

Cash flows provided by:

     
           

Operating activities:

     
 

Net loss for the period

$

(13,895)

 

$

(5,717)

 

Adjusted for the following non-cash items:

     
   

Depreciation of property and equipment

486

 

587

   

Amortization of intangible assets

13

 

59

   

Share-based compensation expense

539

 

233

   

Gain on disposal of equipment

(47)

 

(413)

   

Amortization of deferred lease inducements

(70)

 

(42)

   

Deferred taxes

-

 

(318)

   

Change in fair value of derivative instruments

3,643

 

(1,405)

   

Financing costs

1,986

 

510

   

Current income tax expense

20

 

-

   

Interest paid

(11)

 

(12)

   

Income tax paid

(14)

 

(5)

 

Changes in working capital:

     
   

Amounts receivable

733

 

3,764

   

Work in process and other assets

(61)

 

(49)

   

Accounts payable

301

 

(447)

   

Accrued liabilities

(178)

 

(9)

   

Unearned revenue and deposits

297

 

12

   

Gain on foreign currency translation

783

 

(1)

     

(5,475)

 

(3,253)

           

Investing activities:

     
 

Purchase of property and equipment

(34)

 

(437)

 

Proceeds from sale of equipment

-

 

353

     

(34)

 

(84)

           

Financing activities:

     
 

Proceeds from notes payable

11,800

 

5,000

 

Financing costs of notes payable

(94)

 

(93)

 

Proceeds from reimbursable project funding

93

 

44

 

Proceeds from exercise of warrants

97

 

-

 

Movement to restricted cash

(69)

 

-

 

Repayment of obligations under finance lease

(64)

 

(57)

 

Repayment of long-term debt and notes payable

(6,300)

 

(65)

     

5,463

 

4,829

           

Effect of foreign exchange on cash

(2)

 

8

           

Increase in cash and cash equivalents

(48)

 

1,500

           

Cash and cash equivalents, beginning of period

537

 

2,420

           

Cash and cash equivalents, end of period

$

489

 

$

3,920

 

SOURCE Intermap Technologies Corporation

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