Intermap Technologies Reports 2015 Third Quarter Financial Results
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Intermap Technologies Reports 2015 Third Quarter Financial Results

(PRNewswire) — (TSX: IMP) – Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the third quarter ended September 30, 2015. A conference call will be held tomorrow, November 13th, 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.

"Our focus during the third quarter was to complete the definitive contract terms associated with the spatial data infrastructure (SDI) project announced on June 22, 2015 where we communicated 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. "In our September 29, 2015 press release we disclosed that the estimated closing time for a definitive agreement on this SDI had moved into the fourth quarter as a result of a request from the end client to change the scope of the project. Since that time, we have made material progress on all of the additional contract terms of the definitive agreements and remain on schedule to complete a definitive contract during this quarter. This award represents the largest SDI award in the Company's history and we believe it 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.

Intermap reported third quarter revenue of $3.8 million is compared to $2.7 million for the third quarter of 2014. Third quarter revenue included (i) $3.0 million in mapping services, (ii) $0.2 million in professional services, (iii) $0.3 million in data licensing, and (iv) $0.3 million in 3DBI software licensing. For the same period in 2014, consolidated revenue totaled $2.7 million and included (i) $2.0 million in mapping services, (ii) $0.1 million in professional services, (iii) $0.4 million in data licensing, and (iv) $0.2 million in 3DBI software licensing. Contract backlog at the end of the quarter totaled $0.9 million.  During the third quarter of this year, 80% of the revenue was recognized from mapping services work, primarily in North America. During the third quarter of the prior year, 73% of the revenue was also recognized from mapping services work in North America, but from smaller contracted amounts. Combined revenue from professional services, data licenses and 3DBI software increased 4% as compared to the third quarter of 2014.

Mr. Oseth added, "During the third quarter, we saw an overall improvement in our base business with increases in all of our revenue components. Additionally, the interest in our InsitePro risk based software continues to grow due to our ability to customize the application for our customer's individual needs. We expect that the software development efforts on all of our software products will be fast paced during the coming year to address the needs of both our SDI customers and the enterprise market."  

For the third quarter of 2015, personnel expense was $2.7 million, compared to $2.8 million in the same period last year. Purchased services and materials expense was $1.2 million, compared to $1.4 million during the same period last year.

Third quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $0.5 million, an improvement from an adjusted EBITDA loss of $2.1 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. Including these items, the Company reported a third quarter operating loss of $1.0 million and a net loss of $2.8 million, or ($0.03) per share. This is compared to an operating loss of $2.5 million and a net loss of $2.5 million, or ($0.03) per share, for the third quarter of 2014.

The cash position of the Company at September 30, 2015 (cash, restricted cash, and cash equivalents) was $1.4 million, compared to $0.5 million at December 31, 2014. Amounts receivable and unbilled revenue at September 30, 2015 was $1.9 million, compared to $1.5 million at December 31, 2014. Working capital was negative $15.0 million at September 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.

Third Quarter Business Highlights

As of November 12, 2015, there were 100,237,372 common shares outstanding.

As of November 12, 2015, potential dilutive securities include (i) 7,176,150 outstanding share options in the Company's share option plan with a weighted average exercise price of C$0.46, and (ii) 24,713,130 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, November 13, 2015, at 11:00 am ET (9:00 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 73094836. A recording of the conference call will be available through March 1, 2016. Please dial +1-416-849-0833 and provide pass code 73094836 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 the creation of National Spatial Data Infrastructures (NSDIs) with its secure, cloud-based Orion Platform. Through its powerful suite of 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.

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)




September 30,

December 31,




2015

2014






Assets








Current assets:




Cash and cash equivalents

$

876

$

537


Restricted cash

496

-


Amounts receivable

1,790

1,453


Unbilled revenue

71

63


Prepaid expenses

428

412


Work in process

3

-




3,664

2,465






Property and equipment

2,135

2,833

Intangible assets

-

13




$

5,799

$

5,311






Liabilities and Shareholders' Equity








Current liabilities:




Accounts payable and accrued liabilities

$

6,003

$

3,785


Current portion of convertible and other notes payable

7,345

5,313


Current portion of project financing

1,088

1,168


Current portion of deferred lease inducements

131

137


Unearned revenue and deposits

364

451


Warrant liability

3,613

226


Income taxes payable

6

2


Obligations under finance leases

105

131




18,655

11,213






Long-term convertible and other notes payable

7,300

-

Long-term project financing

192

122

Deferred lease inducements

177

311

Obligations under finance leases

24

96

Other long-term liabilities

533

6




26,881

11,748






Shareholders' equity:




Share capital

196,362

194,377


Accumulated other comprehensive income 

(87)

(57)


Contributed surplus

11,536

11,395


Deficit

(228,893)

(212,152)




(21,082)

(6,437)









$

5,799

$

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 nine months 




ended September 30,


ended September 30,






(as restated)




2015


2014


2015


2014











Revenue

$

3,750


$

2,710


$

5,425


$

7,167











Expenses:









Operating costs

4,498


4,938


13,995


15,979


Depreciation of property and equipment

248


290


734


877


Amortization of intangible assets

-


25


13


84




4,746


5,253


14,742


16,940











Operating loss

(996)


(2,543)


(9,317)


(9,773)











Gain on disposal of equipment

47


42


94


455

Change in fair value of derivative instruments

(432)


394


(4,075)


1,799

Financing costs

(1,605)


(478)


(3,591)


(988)

Financing income

4


7


8


15

Gain (loss) on foreign currency translation

66


70


90


(51)

Loss before income taxes

(2,916)


(2,508)


(16,791)


(8,543)











Income tax (expense) recovery:









Current  

(3)


-


(23)


-


Deferred

73


-


73


318




70


-


50


318











Net loss for the period

$

(2,846)


$

(2,508)


$

(16,741)


$

(8,225)











Other comprehensive loss:


















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







Foreign currency translation differences

2


(59)


(30)


(58)











Comprehensive loss for the period

$

(2,844)


$

(2,567)


$

(16,771)


$

(8,283)











Basic and diluted loss per share

$

(0.03)


$

(0.03)


$

(0.17)


$

(0.09)











Weighted average number of Class A common









shares - basic & diluted

99,608,527


91,782,665


99,254,035


91,664,876

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, 2013 (as restated)

$

194,337

$

10,671

$

37

$

(199,352)

$

5,693







Comprehensive income (loss) for the period

-

-

(58)

(8,225)

(8,283)

Share-based compensation

40

298

-

-

338

Deferred tax effect of convertible note

-

(318)

-

-

(318)

Conversion option of convertible note

-

599

-

-

599







Balance at September 30, 2014 (as restated)

$

194,377

$

11,250

$

(21)

$

(207,577)

$

(1,971)







Comprehensive loss for the period

-

-

(36)

(4,575)

(4,611)

Share-based compensation

-

110

-

-

110

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

-

-

(30)

(16,741)

(16,771)

Share-based compensation

30

230

-

-

260

Exercise of warrants

1,004

-

-

-

1,004

Exercise of options

35

-

-

-

35

Convertible note conversion

556

(16)

-

-

540

New warrant issuance

360

-

-

-

360

Deferred tax effect of convertible note

-

(73)

-

-

(73)







Balance at September 30, 2015

$

196,362

$

11,536

$

(87)

$

(228,893)

$

(21,082)

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






(as restated)

For the nine months ended September 30,

2015


2014







Cash flows provided by:










Operating activities:





Net loss for the period

$

(16,741)


$

(8,225)


Adjusted for the following non-cash items:






Depreciation of property and equipment

734


877



Amortization of intangible assets

13


84



Share-based compensation expense

786


346



Gain on disposal of equipment

(94)


(455)



Amortization of deferred lease inducements

(106)


(31)



Deferred taxes

(73)


(318)



Change in fair value of derivative instruments

4,075


(1,799)



Financing costs

3,591


988



Current income tax expense

23


-



Interest paid

(15)


(21)



Income tax paid

(19)


(6)


Changes in working capital:






Amounts receivable

(342)


3,214



Work in process and other assets

(27)


(40)



Accounts payable

650


(446)



Accrued liabilities

(5)


(300)



Unearned revenue and deposits

(87)


(20)



(Gain) loss on foreign currency translation

(75)


52




(7,712)


(6,100)







Investing activities:





Purchase of property and equipment

(36)


(561)


Proceeds from sale of equipment

-


357




(36)


(204)







Financing activities:





Proceeds from notes payable

14,800


5,000


Financing costs of notes payable

(99)


(93)


Proceeds from reimbursable project funding

93


88


Proceeds from exercise of warrants

156


-


Proceeds from exercise of options

35


-


Movement to restricted cash

(496)


-


Repayment of obligations under finance lease

(98)


(85)


Repayment of long-term debt and notes payable

(6,300)


(65)




8,091


4,845







Effect of foreign exchange on cash

(4)


-







Increase (decrease) in cash and cash equivalents

339


(1,459)







Cash and cash equivalents, beginning of period

537


2,420







Cash and cash equivalents, end of period

$

876


$

961

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