Intermap Technologies Reports 2012 Second Quarter Financial Results

Year-over year revenue increases 80% to $8.0M
Net income of $0.8M
Adjusted EBITDA of $2.7M
Year-over-year operating costs decrease 32%

DENVER, Aug. 8, 2012 /CNW/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company"), a leading provider of location based information solutions created from its uniform, high-resolution 3D digital models and orthorectified imagery of the Earth's surface, today reported financial results for the second quarter ended June 30, 2012. A conference call will be held today, August 7^th, 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 $8.0 million for the second quarter of 2012, an 80% increase compared to $4.4 million in the second quarter of 2011. Net income for the second quarter of 2012 was $0.8 million or $0.01 per share, compared with a net loss of $3.4 million, or ($0.05) per share, for the second quarter of 2011. Second quarter adjusted EBITDA, a non IFRS financial measure, was $2.7 million, compared with a loss of $2.7 million for the same period last year. 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 announce a positive second quarter with significant improvement in both our top-line and bottom-line financial performance. As we communicated in our Q1 earnings call, we expected notable financial improvements in our Q2 results and we delivered on those expectations," said Todd Oseth, Intermap's president and chief executive officer. "Our NEXTMap^® licensing revenue in Q2 increased materially on both a year-over-year basis and on a quarter-over-quarter basis as we delivered on a large portion of the backlog that we entered the year with. Our contract services revenue decreased during the quarter as we moved into the final processing phase of a major contract in Southeast Asia. Subsequently, we began the airborne operations phase of our Alaska project during the the last week of June, and we announced a $3.6 million expansion of that project last week. We entered the third quarter with $6.7 million of backlog, most of which is expected to be recognized as revenue prior to the end of this year."

Mr. Oseth added, "Intermap's sales pipeline remains strong and we expect to close new opportunities over the next two quarters. Our new business is driven by a 3D business intelligence solutions approach that addresses our customers' specific geospatial needs in both the contract services and NEXTMap licensing portions of the business. The Company's recently announced NEXTMap World-30 product, with its new price points, is an example of a new solution that addresses a larger customer base. Additionally, during the quarter, we continued with our solutions focus by enhancing the functionality of our AdPro, LinkPro, RiskPro and web-delivery applications. We continue to develop new commercial applications that will expand addressable customers and revenue sources for the future."

Financial Review

Contract services revenue in the second quarter decreased to $1.6 million from $2.5 million last year, and data licensing revenue increased to $6.4 million from $2.0 million last year. As of June 30, 2012, the contract backlog of $6.7 million consisted of $2.4 million in contract services revenue and $4.3 million in data licensing revenue.

For the second quarter 2012, personnel expense was $3.5 million, a 20% decrease from $4.3 million last year. The decrease was primarily due to workforce reductions associated with the Company's restructuring activities during 2011.

For the second quarter 2012, purchased services and materials expense was $1.2 million, a 51% decrease from $2.5 million last year. The decrease from 2011 is primarily related to decreased job and subcontractor expenses associated with a large mapping services contract in Southeast Asia upon the completion of the airborne collection phase of that contract. Purchased services and materials includes (i) aircraft related costs (ii) professional and consulting costs (iii) third-party support services related to the collection, 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 June 30, 2012 (cash and cash equivalents) was $2.8 million, compared to $0.5 million on March 31, 2012. The Company closed on a one-year convertible debt financing of $2.5 million on June 27, 2012.  The proceeds from the financing will be used to repay a currently outstanding senior secured loan and for working capital required to fund mapping services contracts during the term of the loan. Amounts receivable and unbilled revenue at June 30, 2012 was $4.1 million, compared to $2.7 million at March 31, 2012. Working capital improved to ($2.0) million at June 30, 2012, compared to ($4.4) million at March 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.

Second Quarter Business Highlights

The Company announced the launch of its NEXTMap World-30 dataset, the first and only commercial 3D terrain product to provide seamless, void free coverage, with a 3-meter ground sampling distance, across the entire 150 million square kilometers of the earth's surface. Satellite images provide 2D datasets, which are not always sufficient for business planning purposes or government feasibility studies. Intermap's NEXTMap World-30 product offers the most comprehensive digital surface models for the entire world. This dataset can benefit planners in multiple industries including telecommunications, energy, agriculture, risk planning, water management, topographic mapping, military and a host of government services.

The Company announced a strategic partnership with Blue Marble Geographics to integrate Intermap's NEXTMap dataset with Blue Marble's Global Mapper software. This integration can provide thousands of GIS analysts' access to Intermap's NEXTMap WebStore 2.0 for rich, high-precision elevation data and expanded coverage datasets.

Intermap announced a $369,000 contract to provide digital elevation data from its NEXTMap database. The data was purchased by an international agency that overseas the country's natural resources and the environment. The agency's primary use for the data will be for geospatial related applications including water resource management, and more specifically flood risk assessment.

Intermap was awarded a $517,000 task order from Dewbery & Davis for the second phase expansion of its previously announced airborne radar mapping services project in Alaska. The elevation data and imagery collected by Intermap will be used in economic development, infrastructure development and homeland security applications.

The Company announced that it received a $260,000 contract to provide digital elevation information from its NEXTMap database in North America. The NEXTMap data was purchased by a wireless software solution provider in order to accelerate the radio access network planning and optimization of a leading wireless network operator.

The Company announced that its previously reported strategic partnership with Mentum, a leading wireless access and backhaul network planning and optimation company, has secured five telecommunications companies as customers of the partnership. Mentum's CityScapes HD product is the culmination of Mentum's and Intermap's combined research and development efforts. This product is used by wireless network operators who plan, build and run networks in sprawling metropolitian areas where both man-made structures and vegetation play an important role in defining propagation charactersistics.

As of August 7, 2012, there were 79,414,013 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, August 7, 2012, at 4:30 pm ET (2:30pm MT). To participate in the call, please dial

[phone] or 1-888-231-8191 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 17, 2012. Please dial [phone] or 1-855-859-2056 and provide the pass code 14283761 to listen to the rebroadcast. The call will also be available for replay on Intermap's website at http://www.intermap.com/investors.aspx.

About Intermap Technologies

Headquartered in Denver, Colorado, Intermap (www.intermap.com) is a leading provider of Location-Based Information (LBI), setting the industry standard for creating high-resolution 3D digital models of the earth's surface. The Company has remapped entire countries, to build NEXTMap national databases consisting of affordably priced elevation data and geometric images with extremely high levels of accuracy. Turnkey solutions can be purchased from the Company's NEXTMap Online Store, a hosted web services platform offering a variety of subscription levels by geography, data-layer, and individual or enterprise wide licenses. Intermap's cloud-based hosted model offers customers the most convenient and affordable method to satisfy a customer's needs with both Platform as a Service (PaaS) and Software as a Service (SaaS) options.

Adjusted EBITDA 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, 2011 and 2010, 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,
			2012	2011
Assets
Current assets:
	Cash and cash equivalents		$ 2,836	$ 597
	Amounts receivable		4,112	5,512
	Unbilled revenue		994	865
	Work in process		14	26
	Prepaid expenses		604	616
			8,560	7,616
Property and equipment			4,199	5,273
Data library			16,134	18,439
Intangible assets			295	290
Deferred tax assets			-	5
			$ 29,188	$ 31,623
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities		$ 5,985	$ 5,097
	Current portion of provisions		700	888
	Current portion of note payable		488	69
	Current portion of deferred lease inducements		176	97
	Convertible note		2,275	-
	Unearned revenue		256	1,544
	Income taxes payable		10	43
	Current portion of obligations under finance lease		343	323
	Current portion of long-term debt		373	548
			10,606	8,609
Long-term note payable			1,238	1,629
Deferred lease inducements			391	363
Long-term provisions			97	223
Obligations under finance lease			86	262
Long-term debt			-	95
Deferred tax liabilities			-	13
			12,418	11,194
Shareholders' equity:
	Share capital		194,148	193,992
	Accumulated other comprehensive income		9	46
	Contributed surplus		10,163	9,663
	Deficit		(187,550)	(183,272)
			16,770	20,429
			$ 29,188	$ 31,623

 

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Comprehensive Income
(In thousands of United States dollars, except per share information)

				For the three months  ended June 30,				For the six months  ended June 30,
			2012		2011		2012		2011
Revenue:
	Contract services		$ 1,557		$ 2,475		$ 4,910		$ 5,420
	Data licenses		6,432		1,964		7,304		5,847
			7,989		4,439		12,214		11,267
Expenses:
	Operating costs		5,535		8,086		12,866		17,493
	Depreciation of property and equipment		465		883		1,067		1,839
	Amortization of data library		1,153		1,153		2,305		2,305
	Amortization of intangible assets		29		123		108		227
			7,182		10,245		16,346		21,864
Operating income (loss)			807		(5,806)		(4,132)		(10,597)
Gain on disposal of equipment			6		2,513		26		2,513
Financing costs, net			(44)		(34)		(93)		(61)
Gain (loss) on foreign currency translation			66		(69)		(51)		(152)
Income (loss) before income taxes			835		(3,396)		(4,250)		(8,297)
Income tax (expense) recovery:
	Current		2		(46)		(36)		(80)
	Deferred		(5)		20		8		40
			(3)		(26)		(28)		(40)
Net income (loss) for the period			$ 832		$ (3,422)		$ (4,278)		$ (8,337)
Other comprehensive (income) loss:
	Foreign currency translation differences		(68)		9		(37)		9
Total comprehensive income (loss) for the period			$ 764		$ (3,413)		$ (4,315)		$ (8,328)
Net income (loss) per share:
Basic and diluted			$ 0.01		$ (0.05)		$ (0.05)		$ (0.12)
Weighted average number of Class A
	common shares - basic and diluted		78,557,448		72,382,197		78,568,250		66,964,706

 

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, 2010	$  187,253	$ 8,700	$ 128	$  (169,676)	$ 26,405
Comprehensive loss for the period	-	-	9	(8,337)	(8,328)
Share-based compensation	410	355	-	-	765
Issuance of shares	6,791	-	-	-	6,791
Issuance costs	(384)	-	-	-	(384)
Compensation options issued to agent	(265)	265	-	-	-
Balance at June 30, 2011	193,805	9,320	137	(178,013)	25,249
Comprehensive loss for the period	-	-	(91)	(5,259)	(5,350)
Share-based compensation	187	343	-	-	530
Balance at December 31, 2011	193,992	9,663	46	(183,272)	20,429
Comprehensive loss for the period	-	-	(37)	(4,278)	(4,315)
Share-based compensation	138	368	-	-	506
Issuance of convertible note	19	136	-	-	155
Issuance costs of convertible note	(1)	(4)	-	-	(5)
Balance at June 30, 2012	$  194,148	$ 10,163	$ 9	$  (187,550)	$ 16,770

 

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

For the Six Months Ended June 30,			2012		2011
Cash flows (used in) provided by:
Operating activities:
	Net loss for the period		$ (4,278)		$ (8,337)
	Adjusted for the following non-cash items:
		Depreciation of property and equipment	1,067		1,839
		Amortization of data library	2,305		2,305
		Amortization of intangible assets	108		227
		Share-based compensation expense	490		857
		Gain on disposal of equipment	(26)		(2,513)
		Amortization of deferred lease inducements	133		89
		Deferred taxes	(8)		(40)
		Financing costs	93		61
		Current income tax expense	36		80
		Interest paid	(65)		(41)
		Income tax paid	(96)		(66)
	Change in non-cash operating working capital		557		(1,173)
			316		(6,712)
Investing activities:
	Purchase of property and equipment		-		(169)
	Investment in intangible assets		(113)		-
	Proceeds from sale of equipment		33		1
			(80)		(168)
Financing activities:
	Proceeds from convertible note		2,500		-
	Financing costs of convertible note		(70)		-
	Issuance costs of convertible note		(5)		-
	Proceeds from issuance of common shares		-		6,791
	Securities issuance costs		-		(384)
	Repayment of obligations under finance lease		(156)		(82)
	Repayment of long-term debt		(273)		(265)
			1,996		6,060
Effect of foreign exchange on cash			7		40
Decrease in cash and cash equivalents			2,239		(780)
Cash and cash equivalents, beginning of period			597		4,356
Cash and cash equivalents, end of period			$ 2,836		$ 3,576

 

 

 

SOURCE: Intermap Technologies Corporation

For further information:

Intermap Technologies
Rich Mohr, Senior Vice President & Chief Financial Officer
[e-mail]
[phone]

Canada - Financial 
Cory Pala, Investor Relations
e.vestor Communications Inc.
[e-mail]
[phone]

United States - Financial 
Budd Zuckerman, Investor Relations
Genesis Select Corporation
[e-mail]
[phone]