Intermap Technologies Reports 2013 Third Quarter Financial Results
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Intermap Technologies Reports 2013 Third Quarter Financial Results

DENVER, Nov. 11, 2013 — (PRNewswire) — (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company"), a leading provider of geospatial software and solutions created from its uniform, high-resolution 3D digital models of the earth's surface and third party information, today reported financial results for the third quarter ended September 30, 2013. A conference call will be held today, November 11th, at 4:30 p.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 $6.4 million for the third quarter of 2013, compared to $8.0 million recorded in the same period of 2012. Net loss for the second quarter of 2013 was $0.5 million, or ($0.01) per share, compared to net income of $0.4 million, or $0.01 per share, for the third quarter of 2012. Third quarter adjusted EBITDA, a non IFRS financial measure, was $0.6 million, compared to adjusted EBITDA of $2.5 million for the same period in 2012. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.

"We're pleased to report our sixth quarter of positive or breakeven adjusted EBITDA as our expense management has lowered our breakeven levels," said Todd Oseth, President & CEO of Intermap. "On a year-to-date basis, our financial performance shows revenue growth, lower operating expenses, improved bottom line performance, and improved adjusted EBITDA margin over last year at this time. The improved operating results for the first three quarters of the year are coupled with a stronger balance sheet where working capital has more than tripled from $1.9 million at year-end to $6.1 million."

Financial Review

Contract services revenue in the second quarter increased to $5.4 million from $4.1 million in the year ago quarter, and data licensing revenue decreased to $0.9 million from $3.9 million in the year ago quarter. As of September 30, 2013, the Company's contract backlog of $3.9 million consisted of $3.3 million in contract services and $0.6 million in data licensing revenue.

During the third quarter of 2013, contract services revenue was recognized primarily from two contracts, one in Southeast Asia and one in North America in the amounts of $2.4 million and $3.0 million, respectively. For the same period in 2012, contract services revenue was recognized primarily from a single contract in North America in the amount of $3.9 million. The comparable decrease in data licensing revenue during the third quarter of 2013 was primarily the result of one significant sale from the Company's NEXTMap® dataset, which generated $2.9 million in revenue during the third quarter of 2012, while there were no significant data licensing contracts that generated similar amounts of revenue during the third quarter of 2013.

For the third quarter 2013, personnel expense was $3.0 million, a 2% decrease from $3.1 million for same period last year. The decrease was primarily due to a change in the mix of wage earners and a decrease in non-cash compensation.

For the third quarter 2013, purchased services and materials expense was $1.9 million, a 5% increase from $1.8 million for the same period last year. The increase in this category of expense is primarily related to an increase in job and subcontractor expenses associated with the Company's airborne radar data collection activities during the period. The stage of progress on each radar data collection contract and the individual requirements and logistics associated with radar collection efforts can create expense variations between reporting periods. Purchased services and materials includes (i) aircraft related costs including jet fuel and aircraft maintenance; (ii) professional and consulting costs; (iii) third-party support services related to the acquisition, processing and editing of the Company's airborne data collection activities; and (iv) software expenses (including maintenance and support).

The cash position of the Company at September 30, 2013 (cash and cash equivalents) was $3.2 million, compared to $2.1 million at December 31, 2012. Amounts receivable and unbilled revenue at September 30, 2013 was $7.5 million, compared to $8.4 million at December 31, 2012. Working capital increased to $6.1 million at September 30, 2013, compared to $1.9 million at December 31, 2012 (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 September 30, 2013, there were 92,139,499 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, November 11, 2013, at 4:30 pm ET (2:30pm 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 90709554. A recording of the conference call will be available through November 30, 2013. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 90709554 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 with its secure, cloud based Orion Platform™. Through its powerful suite of 3DBI 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, 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)

      September 30,     December 31,
      2013     2012
             
Assets        
             
Current assets:        
  Cash and cash equivalents $ 3,237   $ 2,055
  Amounts receivable   5,140     5,735
  Unbilled revenue   2,324     2,709
  Work in process   2     10
  Prepaid expenses   396     625
        11,099     11,134
               
Property and equipment   3,086     3,703
Data library   10,372     13,829
Intangible assets   146     235
Long-term lease receivable   93     -
      $ 24,796   $ 28,901
               
Liabilities and Shareholders' Equity          
               
Current liabilities:          
  Accounts payable and accrued liabilities $ 3,513   $ 4,747
  Convertible note   -     2,357
  Current portion of notes payable   1,044     892
  Current portion of deferred lease inducements   188     97
  Unearned revenue and deposits   207     145
  Income taxes payable   23     10
  Obligations under finance leases   -     262
  Provisions   -     720
        4,975     9,230
               
Long-term notes payable   151     923
Deferred lease inducements   250     390
        5,376     10,543
               
Shareholders' equity:          
  Share capital   197,376     194,144
  Accumulated other comprehensive income   59     58
  Contributed surplus   10,482     10,354
  Deficit   (188,497)     (186,198)
        19,420     18,358
               
      $ 24,796   $ 28,901



INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Profit or 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,
      2013   2012   2013   2012
                           
Revenue:                      
  Contract services  $ 5,429    $ 4,100    $ 17,202    $ 9,010
  Data licenses   926     3,865     3,123     11,169
        6,355     7,965     20,325     20,179
Expenses:                      
  Operating costs   5,178     5,573     17,361     18,439
  Depreciation of property and equipment   356     404     1,080     1,471
  Amortization of data library   1,152     1,152     3,457     3,457
  Amortization of intangible assets   30     30     89     138
        6,716     7,159     21,987     23,505
                           
Operating (loss) income   (361)     806     (1,662)     (3,326)
                           
Gain on disposal of equipment   138     -     342     26
Financing costs, net   (37)     (220)     (487)     (313)
Loss on foreign currency translation   (198)     (149)     (434)     (200)
(Loss) income before income taxes   (458)     437     (2,241)     (3,813)
                           
Income tax (expense) recovery:                      
  Current   (11)     (14)     (58)     (50)
  Deferred   -     -     -     8
        (11)     (14)     (58)     (42)
                           
Net (loss) income for the period  $ (469)    $ 423    $ (2,299)    $ (3,855)
                           
Other comprehensive income (loss):                      
  Foreign currency translation differences   35     21     1     (16)
                           
Total comprehensive (loss) income for the period  $ (434)    $ 444    $ (2,298)    $ (3,871)
                           
Basic and diluted (loss) income per share  $ (0.01)    $ 0.01    $ (0.03)    $ (0.05)
                           
Weighted average number of Class A                       
  common shares - basic and diluted    88,426,588     78,887,915     82,191,436     78,637,986



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 January 1, 2012  $ 193,992  $ 9,663  $ 46  $ (183,272)  $ 20,429
                   
Comprehensive loss for the period   - -   (16)   (3,855)   (3,871)
Share-based compensation   138 491   -   -   629
Warrant component of convertible note   19 -   -   -   19
Conversion option of convertible note   - 136   -   -   136
Issuance costs   (1) (4)   -   -   (5)
                   
Balance at September 30, 2012  $ 194,148  $ 10,286  $ 30  $ (187,127)  $ 17,337
                   
Comprehensive profit for the period   - -   28   929   957
Share-based compensation   - 101   -   -   101
Deferred tax effect of convertible note   (4) (33)   -   -   (37)
                   
Balance at December 31, 2012  $ 194,144  $ 10,354  $ 58  $ (186,198)  $ 18,358
                   
Comprehensive profit (loss) for the period   - -   1   (2,299)   (2,298)
Share-based compensation   81 260   -   -   341
Convertible note conversion   3,025 -   -   -   3,025
Conversion option of convertible note   136 (136)   -   -   -
Issuance costs   (10) 4   -   -   (6)
                   
Balance at September 30, 2013  $ 197,376  $ 10,482  $ 59  $ (188,497)  $ 19,420

 

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

For the Nine Months Ended September 30, 2013   2012
           
Cash flows provided by:      
           
Operating activities:      
  Net loss for the period  $ (2,299)    $ (3,855)
  Adjusted for the following non-cash items:          
    Depreciation of property and equipment   1,080     1,471
    Amortization of data library   3,457     3,457
    Amortization of intangible assets   89     138
    Share-based compensation expense   341     613
    Gain on disposal of equipment   (342)     (26)
    Amortization of deferred lease inducements   (49)     104
    Extinguishment of facility closure provision   (720)     -
    Deferred taxes   -     (8)
    Net financing costs   487     313
    Current income tax expense   58     50
    Interest paid   (61)     (99)
    Income tax paid   (39)     (109)
  Changes in working capital, net of investing activities:          
    Amounts receivable, net   622     3,955
    Work in process and other assets   731     (86)
    Accounts payable   (436)     (13)
    Accrued liabilities   (556)     (987)
    Unearned revenue and deposits   62     (1,239)
    Loss on foreign currency translation   9     (229)
        2,434     3,450
               
Investing activities:          
  Purchase of property and equipment   (463)     -
  Investment in intangible assets   -     (113)
  Proceeds from sale of equipment   112     33
        (351)     (80)
               
Financing activities:          
  Proceeds from issuance of convertible note   -     2,500
  Financing costs of convertible note   -     (70)
  Issuance costs of convertible note and shares issued upon conversion   (6)     (5)
  Proceeds from reimbursable project funding   -     151
  Repayment of obligations under finance lease   (262)     (238)
  Repayment of long-term debt and notes payable   (618)     (644)
        (886)     1,694
               
Effect of foreign exchange on cash   (15)     7
               
Increase in cash and cash equivalents   1,182     5,071
               
Cash and cash equivalents, beginning of period   2,055     597
               
Cash and cash equivalents, end of period  $ 3,237    $ 5,668

 

 

 

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<br/> <br/> <b>Canada - Financial </b><br/> Cory Pala, Investor Relations<br/> e.vestor Communications Inc.<br/> <a href="mailto: Email Contact +1 (416) 657-2400<br/> <br/> <b>United States - Financial </b><br/> Budd Zuckerman, Investor Relations<br/> Genesis Select Corporation<br/> <a href="mailto: Email Contact +1 (303) 415-0200 </p>