For the third quarter of 2018, Intermap reported revenue of $3.7 million as it continued work on the previously announced $6.2 million U.S. Government task order for the creation of digital elevation and bare earth terrain models. The Company has also been awarded a U.S Government task order to help them assess the suitability of multiple current and near-future satellite technologies for creating high resolution elevation products.
Financial Review
All amounts in this news release are in United States dollars, unless otherwise noted.
For the third quarter of 2018, Intermap reported revenue of $3.7 million and operating loss of $474 thousand, compared to revenue of $6.3 million and operating income of $1.8 million for the third quarter of 2017. Acquisition services revenue during the third quarter of 2018 decreased $2.6 million from the same period in 2017 due to delays in contracting follow-on work following elections in southeast Asia.
Software and solutions revenue, which includes the Company's commercial InsitePro insurance software, increased 28% to $521 thousand for the quarter, compared to the same period last year. The solution continues to experience a 100% renewal rate on all eligible renewals.
Third quarter and year-to-date adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was positive $0.4 million and $1.7 million, respectively, compared to positive $2.1 million and $1.6 million, respectively, for the same periods last year. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and excludes non-recurring and non-cash payments. Adjusted EBITDA is not a recognized performance measure under IFRS. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net loss. See Non-IFRS Measures below for a reconciliation of the Company's net loss to adjusted EBITDA for the three-month and nine-month periods ended September 30, 2018 as compared to 2017. The decrease in adjusted EBITDA for both periods is consistent with the decrease in acquisition services project work.
The Company finished the third quarter with $4.0 million of cash, amounts receivable and unbilled revenue, compared to $7.5 million at Q3 2017, and $6.9 million at December 31, 2017. Working capital improved to $0.4 million at the end of the third quarter, compared to $0.3 million at year-end. Accounts payable and accrued liabilities improved 48%, down to $2.1 million from $4.0 million at year-end. The reductions relate primarily to final payments on the radar system upgrade that was installed in 2017.
The Company's consolidated financial statements and management's discussion and analysis will be filed on SEDAR at: www.sedar.com. 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.
Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under IFRS 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 loss.
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| Three months ended | Nine months ended | |||||||
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U.S. $ millions | 2018 | 2017 | 2018 | 2017 | |||||
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Net (loss) income | $ | (1.2) | $ | 1.1 | $ | (2.2) | $ | (1.7) | |
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| Financing costs | 0.6 | 0.6 | 1.9 | 1.9 | ||||
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| Income tax recovery | - | - | - | (0.2) | ||||
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| Depreciation of property and equipment | 0.4 | 0.3 | 1.0 | 0.6 | ||||
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| EBITDA | $ | (0.2) | $ | 2.0 | $ | 0.7 | $ | 0.6 |
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| Share-based compensation | - | - | 0.4 | 0.2 | ||||
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| Restructuring costs | 0.5 | - | 0.5 | 0.1 | ||||
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| Loss on foreign currency translation | 0.1 | 0.1 | 0.1 | 0.3 | ||||
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| Non-recurring payments | - | - | - | 0.5 | ||||
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| Change in value of derivative instruments | - | - | - | (0.1) | ||||
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| Adjusted EBITDA | $ | 0.4 | $ | 2.1 | $ | 1.7 | $ | 1.6 |
About Intermap Technologies
Headquartered in Denver, Colorado, Intermap ( www.intermap.com) is an industry leader in geospatial intelligence solutions. These geospatial solutions are used in a wide range of applications including, but not limited to, location-based information, risk assessment, geographic information systems, engineering, utilities, global positioning systems, oil and gas, renewable energy, hydrology, environmental planning, land management, wireless communications, transportation, advertising, and 3D visualization. Intermap generates revenue from three primary business activities, comprised of i) data acquisition and collection, using proprietary, multi-frequency, radar sensor technologies, ii) value-added data products and services, which leverage the Company's proprietary NEXTMap® database and platform, together with proprietary software and fusion technologies, and iii) commercial applications and solutions, including a webstore and software sales targeting selected industry verticals that rely on accurate high resolution elevation data. The Company is a world leader in data fusion, analytics, and orthorectification, and has decades of experience aggregating data derived from a number of different sensor technologies and data sources, providing useful answers to geospatial problems. For more information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release, including statements in relation to the Company's profitability and revenue generating activities, constitute forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "will be" 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.
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SOURCE Intermap Technologies Corporation
| Contact: |
| Company Name: Intermap Technologies Corporation
Intermap Technologies, Jennifer Bakken, Executive Vice President and CFO Email Contact +1 (303) 708-0955 Financial data for Intermap Technologies Corporation |
