All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $2.1 million for the first quarter of 2014, compared to $5.1 million recorded in the same period of 2013. Net loss for the first quarter of 2014 was $3.8 million, or ($0.04) per share, compared to a net loss of $2.0 million, or ($0.03) per share, for the first quarter of 2013. First quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $3.6 million, an increase from an adjusted EBITDA loss of $0.1 million for the same period in 2013. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
"Our focus for the quarter was the further development of our 3DBI® software applications. Major progress was achieved with all three of our applications - AdPro®, InsitePro™ and GeoPro™. These products address a combined worldwide market more than $1 billion annually, and each of these applications have unique geospatial advantages," said Todd Oseth, President & CEO of Intermap. "Our AdPro application now includes key analytics from the Traffic Audit Bureau (TAB) for Media Management, the industry backed entity that creates key metrics for the outdoor advertising market. Our InsitePro product represents the further transformation of our insurance risk assessment application and now includes a new user interface, the ability to analyze thousands of locations at once, and the integration of a new world-wide flood model."
Mr. Oseth added, "In addition to the progress with our 3DBI software applications, we continue to have success expanding our professional services offerings with new contracts that allow us to create value added products for our customers through the use of third party sensors and our class leading aggregation and data processing capabilities. We also report progress towards the closing of an Orion Platform™ spatial data infrastructure contract. These contracts are complicated and typically carry long sales cycles due to the magnitude of the contracts, politics, budget timing and funding mechanisms. We are optimistic that we will be able to announce the signing of one or more of these contracts this year."
Financial Review
Consolidated revenue for the first quarter of 2014 totaled $2.1 million and included (i) $0.9 million in mapping services, (ii) $0.4 million in professional services, (iii) $0.6 million in data licensing, and (iv) $0.2 million in 3DBI software licensing. For the same period in 2013, consolidated revenue totaled $5.1 million and included (i) $4.0 million in mapping services, (ii) nil in professional services, (iii) $1.0 million in data licensing, and (iv) $0.1 million in 3DBI software licensing. During the first quarter of last year, $4.0 million of mapping services revenue was recognized on a new $15.0 million contract that was closed during that quarter. No similar sized contract was closed during the first quarter of the current year. Contract backlog at the end of the quarter totaled $0.4 million.
For the first quarter of 2014, personnel expense was $3.2 million, compares to $3.3 million last year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.
For the first quarter of 2014, purchased services and materials expense was $1.6 million, compared to $1.0 million recognized during the same period last year. The increase in this category of expense is primarily due to increased subcontractor costs associated with the Company's software development activities, and secondarily from the use of contractors used for third-party data collection services associated with the Company's professional services business. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to the collection, processing and editing of the Company's data collection activities, and (iv) software expenses (including maintenance and support).
The cash position of the Company at March 31, 2014 (cash and cash equivalents) was $5.7 million, compared to $2.4 million at December 31, 2013. Amounts receivable and unbilled revenue at March 31, 2014 was $4.4 million, compared to $6.6 million at December 31, 2013. Working capital was $0.5 million at March 31, 2014, compared to $3.9 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.
First Quarter Business Highlights
-
Intermap announced that its NEXTMap® World 30™ product surpassed sales of $1.2 million during 2013, more
than 15 times the prior year's sales. World 30 is the world's first and
only seamless digital map of the entire earth with a global accuracy of
7-meters. The latest version of the World 30 product is up to three
times more accurate than competing global Digital Elevation Models
(DEMs) such as NASA's Shuttle Radar Topography Mission (SRTM) data, and
Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER)
Global Digital Elevation Model (GDEM). The World 30 dataset integrates
seamlessly with Intermap's Orion Platform and provides a foundation
data layer for the Company's web-based 3DBI applications including
flood planning, advertising, telecommunications, and risk management.
World 30 enables the immediate delivery of the Company's 3DBI
applications anywhere in the world.
-
Intermap announced that it completed a private placement convertible
debt financing for aggregate proceeds of US $5.0 million. The debt
financing matures 12 months from the date of issuance and the principal
amount is convertible into 12,367,054 common shares of the Company at
each of the Holder's option. Simple interest is payable at maturity at
a rate of 16.0%. If the principal amount is converted into common
shares, any interest payable on such principal amount shall be
forgiven. In addition, an aggregate of 3,091,572 warrants were issued
to a holder of the convertible debt entitling such holder to purchase
up to 3,091,572 common shares at a price of C$0.56 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 116% of the principal amount at any time following six months from the date of closing, subject to a 60 day notice period and each of the holder's right to exercise its conversion rights during any such notice period.
The proceeds of the debt financing will be used by the Company to accelerate the development and market introduction of its InsitePro and GeoPro 3DBI software products for governments, enterprises and consumers.
As of May 14, 2014, there were 91,613,401 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 tomorrow, May 15, 2014, at 10:00 am ET (8:00 am MT). To participate in the call, please dial +1-647-427-7450 or 1-888-231-8191 approximately 10 minutes prior to the conference call and provide conference ID 41323197. A recording of the conference call will be available through July 31, 2014. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 41323197 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. 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 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, 2013 and 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)
| March 31, | December 31, | |||||||||||
| 2014 | 2013 | |||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 5,671 | $ | 2,420 | ||||||||
| Amounts receivable | 4,211 | 6,434 | ||||||||||
| Unbilled revenue | 161 | 151 | ||||||||||
| Work in process | 24 | 33 | ||||||||||
| Prepaid expenses | 643 | 407 | ||||||||||
| 10,710 | 9,445 | |||||||||||
| Property and equipment | 3,233 | 3,378 | ||||||||||
| Intangible assets | 87 | 116 | ||||||||||
| $ | 14,030 | $ | 12,939 | |||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued liabilities | $ | 4,015 | $ | 3,953 | ||||||||
| Convertible note | 4,632 | - | ||||||||||
| Current portion of notes payable | 1,117 | 1,188 | ||||||||||
| Current portion of deferred lease inducements | 182 | 188 | ||||||||||
| Unearned revenue and deposits | 155 | 110 | ||||||||||
| Income taxes payable | 9 | 12 | ||||||||||
| Obligations under finance leases | 118 | 115 | ||||||||||
| 10,228 | 5,566 | |||||||||||
| Deferred lease inducements | 161 | 202 | ||||||||||
| Obligations under finance leases | 161 | 192 | ||||||||||
| 10,550 | 5,960 | |||||||||||
| Shareholders' equity: | ||||||||||||
| Share capital | 197,424 | 197,376 | ||||||||||
| Accumulated other comprehensive income | 36 | 37 | ||||||||||
| Contributed surplus | 10,943 | 10,671 | ||||||||||
| Deficit | (204,923) | (201,105) | ||||||||||
| 3,480 | 6,979 | |||||||||||
| $ | 14,030 | $ | 12,939 | |||||||||
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 ended March 31, | 2014 | 2013 | ||||||||||
| Revenue | $ | 2,104 | $ | 5,093 | ||||||||
| Expenses: | ||||||||||||
| Operating costs | 5,767 | 5,321 | ||||||||||
| Depreciation of property and equipment | 292 | 359 | ||||||||||
| Amortization of data library | - | 1,152 | ||||||||||
| Amortization of intangible assets | 29 | 29 | ||||||||||
| 6,088 | 6,861 | |||||||||||
| Operating loss | (3,984) | (1,768) | ||||||||||
| Gain on disposal of equipment | 362 | 4 | ||||||||||
| Financing costs | (204) | (222) | ||||||||||
| Financing income | 7 | - | ||||||||||
| (Loss) gain on foreign currency translation | (78) | 33 | ||||||||||
| Loss before income taxes | (3,897) | (1,953) | ||||||||||
| Income tax (expense) recovery: | ||||||||||||
| Current | - | (47) | ||||||||||
| Deferred | 79 | - | ||||||||||
| 79 | (47) | |||||||||||
| Net loss for the period | $ | (3,818) | $ | (2,000) | ||||||||
| Other comprehensive loss: | ||||||||||||
| Foreign currency translation differences | (1) | (37) | ||||||||||
| Comprehensive loss for the period | $ | (3,819) | $ | (2,037) | ||||||||
| Basic and diluted loss per share | $ | (0.04) | $ | (0.03) | ||||||||
| Weighted average number of Class A | ||||||||||||
| common shares - basic and diluted | 91,613,401 | 78,887,915 | ||||||||||
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of United States dollars)
|
Contributed
Surplus |
Cumulative
Translation Adjustments |
||||||||||||||||
|
Share
Capital |
Deficit | Total | |||||||||||||||
| Balance at December 31, 2012 | $ | 194,144 | $ | 10,354 | $ | 58 | $ | (186,198) | $ | 18,358 | |||||||
| Comprehensive loss for the period | - | - | (37) | (2,000) | (2,037) | ||||||||||||
| Share-based compensation | - | 77 | - | - | 77 | ||||||||||||
| Balance at March 31, 2013 | $ | 194,144 | $ | 10,431 | $ | 21 | $ | (188,198) | $ | 16,398 | |||||||
| Comprehensive profit (loss) for the period | - | - | 16 | (12,907) | (12,891) | ||||||||||||
| Share-based compensation | 81 | 372 | - | - | 453 | ||||||||||||
| Convertible note conversion | 3,025 | - | - | - | 3,025 | ||||||||||||
| Conversion option of convertible note | 136 | (136) | - | - | - | ||||||||||||
| Issuance costs | (10) | 4 | - | - | (6) | ||||||||||||
| Balance at December 31, 2013 | $ | 197,376 | $ | 10,671 | $ | 37 | $ | (201,105) | $ | 6,979 | |||||||
| Comprehensive loss for the period | - | - | (1) | (3,818) | (3,819) | ||||||||||||
| Share-based compensation | - | 82 | - | - | 82 | ||||||||||||
| Warrant component of convertible note | 64 | - | - | - | 64 | ||||||||||||
| Conversion option of convertible note | - | 259 | - | - | 259 | ||||||||||||
| Issuance costs | (1) | (5) | - | - | (6) | ||||||||||||
| Deferred tax effect of convertible note | (15) | (64) | - | - | (79) | ||||||||||||
| Balance at March 31, 2014 | $ | 197,424 | $ | 10,943 | $ | 36 | $ | (204,923) | $ | 3,480 | |||||||
INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)
| For the Three Months Ended March 31, | 2014 | 2013 | |||||||||||||
| Cash flows provided by: | |||||||||||||||
| Operating activities: | |||||||||||||||
| Net loss for the period | $ | (3,818) | $ | (2,000) | |||||||||||
| Adjusted for the following non-cash items: | |||||||||||||||
| Depreciation of property and equipment | 292 | 359 | |||||||||||||
| Amortization of data library | - | 1,152 | |||||||||||||
| Amortization of intangible assets | 29 | 29 | |||||||||||||
| Share-based compensation expense | 82 | 77 | |||||||||||||
| Gain on disposal of equipment | (362) | (4) | |||||||||||||
| Amortization of deferred lease inducements | (47) | (29) | |||||||||||||
| Deferred taxes | (79) | - | |||||||||||||
| Financing costs | 204 | 222 | |||||||||||||
| Current income tax expense | - | 47 | |||||||||||||
| Interest paid | (7) | (27) | |||||||||||||
| Income tax paid | (10) | (13) | |||||||||||||
| Changes in working capital: | |||||||||||||||
| Amounts receivable | 2,409 | 1,090 | |||||||||||||
| Work in process and other assets | (239) | 154 | |||||||||||||
| Accounts payable | (51) | 181 | |||||||||||||
| Accrued liabilities | (20) | (148) | |||||||||||||
| Unearned revenue and deposits | 45 | 169 | |||||||||||||
| Gain on foreign currency translation | (3) | (37) | |||||||||||||
| (1,575) | 1,222 | ||||||||||||||
| Investing activities: | |||||||||||||||
| Purchase of property and equipment | (147) | (248) | |||||||||||||
| Proceeds from sale of equipment | 132 | 4 | |||||||||||||
| (15) | (244) | ||||||||||||||
| Financing activities: | |||||||||||||||
| Proceeds from issuance of convertible note | 5,000 | - | |||||||||||||
| Financing costs of convertible note | (93) | - | |||||||||||||
| Repayment of obligations under finance lease | (28) | (88) | |||||||||||||
| Repayment of long-term debt and notes payable | (38) | (208) | |||||||||||||
| 4,841 | (296) | ||||||||||||||
| Effect of foreign exchange on cash | - | (19) | |||||||||||||
| Increase in cash and cash equivalents | 3,251 | 663 | |||||||||||||
| Cash and cash equivalents, beginning of period | 2,420 | 2,055 | |||||||||||||
| Cash and cash equivalents, end of period | $ | 5,671 | $ | 2,718 | |||||||||||
SOURCE Intermap Technologies Corporation
| Contact: |
| Intermap Technologies Corporation
<p> <br/> <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> |