DENVER--(BUSINESS WIRE)--Intermap Technologies Corporation (“Intermap” or the “Company”) (TSX: IMP) today reported financial results for the second quarter ended June 30, 2011. A conference call will be held today at 4:30 p.m. Eastern Time to discuss the results.
The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (IFRS) for interim financial reporting and is expressed in United States dollars, unless otherwise noted. The amounts in this earnings release, including the interim financial statements for the three and six months ended June 30, 2010, have been restated to reflect the adoption of IFRS, with effect from January 1, 2010.
Revenue for the second quarter of 2011 was $4.4 million, a 16% decrease from the $5.3 million recorded in the same period in 2010. Of the revenue recognized in the second quarter, $2.4 million was attributable to the Company’s contract services business and $2.0 million was attributable to the licensing of the Company’s NEXTMap database.
“During the quarter, Intermap recognized approximately $1.0 million of revenue from the delivery of Digital Terrain Models (DTMs) along French rivers to an existing customer,” said Todd Oseth president and CEO of Intermap. “Our digital terrain information will be used by this customer to derive and generate flood maps in conjunction with the European Flood Directive. We believe additional opportunities exist in other regions in France as they continue to prepare their flood mapping plans.”
Contract service revenue in the amount of $2.1 million was recognized on a previously announced $12.4 million mapping services project in Southeast Asia (December 2010). Intermap has now recognized $4.8 million of revenue on this contract during the first half of 2011, with the bulk of the remaining contract revenue expected to be recognized during the second half of this year.
Subsequent to the close of the second quarter in 2011, Intermap announced the receipt of several new contracts for NEXTMap® data and related services totaling more than $3.0 million. Revenue will be recognized on these contracts beginning with immediate deliveries and subsequent deliveries are scheduled to occur over the next two to three months.
“Our efforts to expand our 3D product offerings while providing our customers with unparalleled flexibility when using our data has resulted in some of these recently received contracts,” said Todd Oseth. “Our team is constantly working on expanding the value of our product offerings to drive future revenue opportunities associated with location based information. We are anticipating improved revenue generation from these expanded product offerings during the second half of this year.”
Total operating costs in the second quarter were $8.1 million, a 12% decrease compared to $9.2 million for the same period in 2010. The Company made significant workforce reductions during 2010 and again in 2011, including additional reductions in the second quarter of 2011. The second quarter operating costs of $8.1 million include $0.5 million of restructuring related costs. Consolidated active employee headcount was 279 at June 30, 2011 (including 160 in the Company’s low-cost edit facility in Jakarta, Indonesia). This is a 53% decrease from 596 people at June 30, 2010 (including 356 in Jakarta, Indonesia). On an annualized basis, the net impact on total expenses (after severance and termination related costs) of the workforce reductions made during the six month period ending June 30, 2011 is approximately $6.8 million.
Adjusted EBITDA for the second quarter of 2011, a term not defined under IFRS, was negative $2.7 million, an improvement over the same period in 2010, which was negative $3.3 million. The Company reported a second quarter 2011 net loss of $3.4 million, or $(0.05) per share, compared with a net loss of $9.2 million, or ($0.18) per share for the same period in 2010.
For the six months ended June 30, 2011, Intermap reported a 29% increase in revenues to $11.3 million, from $8.7 million for the same period in 2010. Contract services revenue for this period was $5.4 million compared to $2.7 million, and NEXTMap licensing revenue was $5.9 million, staying relatively flat compared to the same period in 2010, which totaled $6.0 million. Adjusted EBITDA for the quarter ended June 30, 2011 was negative $3.8 million, compared to negative $8.7 million for the same period in 2010. For the first six months of 2011, Intermap reported a net loss of $8.3 million, or ($0.12) per share, compared to a net loss of $19.7 million, or ($0.38) per share for the same period in 2010.
At June 30, 2011, Intermap held cash and cash equivalents of $3.6 million and negative working capital of $0.8 million. During the second quarter, Intermap completed a private placement financing for gross proceeds of $6.8 million.
To address the recent global economic difficulties and to expand the size of the Company’s market opportunities, the Company has modified its pricing strategy and product offerings to include low cost subscriptions making the purchase of data more affordable to a wider array of potential users. This culminated in the recent launch of a new web-based subscription service for NEXTMap 3D terrain products and related location based information accessible via cloud-computing. With the new NEXTMap Web Store, customers can purchase a monthly subscription to access data and information in their area of interest. Customers now have the ability to select one of four subscription plans that best meets their needs.
Intermap Web Services offers a suite of hosted tools that gives even those unfamiliar with geographic information systems (GIS) the ability to quickly and easily perform terrain analysis based on an area of interest such as a county or entire state. Subscribers to Intermap’s Web Services can access the Company’s 3D terrain information using their current Web browsers, through desktop software like ArcGIS, Global Mapper or SocetGXP, or via an application that leverages the Intermap Web Services software developers kit (SDK).
“We’ve now made buying 3D terrain data as easy as buying a book on Amazon,” said Mr. Oseth. “Our customers can access their terrain information instantly from anywhere, and this new cloud-based approach dramatically reduces the customer’s cost of storing, maintaining or disseminating their mapping data. Via the cloud, customers can analyze their data without ever taking physical delivery of it. The new NEXTMap Web Store puts the customer in control, while delivering them simplicity and dramatic cost savings.”
For more information about Intermap’s web services please visit http://www.intermap.com/en-us/purchase.aspx
In addition, Intermap recently made the NEXTMap dataset available to Esri® Premium World Elevation Service (WES) subscribers, selected as the first partner for new Esri WES. NEXTMap is a core component of WES, an aggregation of 3D terrain information available on a global basis. NEXTMap will allow users to perform view shed, line of sight, slope analysis and other common GIS analysis functions. Intermap’s NEXTMap dataset will also be available to users of Esri’s ArcGIS® software.
“Our focus for the future is in the creation of 3D business intelligence,” said Mr. Oseth. “Our customers are asking for solutions and information that solves their geospatial problems. As a result, we are creating additional layers of information in our NEXTMap database that is specific to individual vertical applications. This allows us to truly deliver location based information to the end user, instead of just data.”
The Company believes it has reasonable near-term visibility to meaningful sales opportunities during the remainder of 2011 for telecommunications applications in North America, additional mapping services contracts internationally, and risk management applications in Europe as well as opportunities in several other market segments. Intermap will support these opportunities through new product development, improved marketing programs, and expanded pricing plans. New product offerings will provide a growing catalog of data layer options, including the integration of third-party data. Additionally, Management has refocused the Company’s marketing and sales disciplines and believes that the value of the Company’s data lies in application solutions for specific vertical markets, and not solely in the data as a standalone product. Please visit our new web site at www.intermap.com for additional information about the Company.
As of June 30, 2011, there were 78,461,454 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 Today
A conference call to review the results will take place the same day at 4:30 pm ET (2:30 pm MT). To participate in the call, please dial +1-416-695-7848 or 1-800-952-6845 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through August 22, 2011. Please dial +1-905-694-9451 or 1-800-408-3053 and provide the password 3276541 to listen to the rebroadcast.
About Intermap Technologies
Headquartered in Denver, Colorado, Intermap (www.intermap.com) is a leading provider of Location-Based Information, 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 of unparalleled 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, individual or enterprise wide license. Intermap’s cloud-based hosted model offers customers the most convenient and affordable method to satisfy a customer’s needs with both a Platform as a service (PaaS) and Software as a service (SaaS) options. For more information about Intermap’s web services please visit http://www.intermap.com/en-us/purchase.aspx. A live audio webcast and replay of an August 11, 2011 Company presentation at the Canaccord Genuity Growth Conference can be accessed at http://wsw.com/webcast/canaccord4/imp.to/.
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 also excludes restructuring costs, stock-based compensation, and gain or loss on foreign currency translation. 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 year ended December 31, 2010, together with the accompanying notes, which includes a going concern disclosure (Note 1) and such disclosure remains applicable as of the date of the financial statements included herein.
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INTERMAP TECHNOLOGIES CORPORATION Condensed Consolidated Interim Balance Sheets (In thousands of United States dollars) (Unaudited) |
|||||||||||
| June 30, | December 31, | ||||||||||
| 2011 | 2010 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 3,576 | $ | 4,356 | |||||||
| Amounts receivable | 4,140 | 4,156 | |||||||||
| Unbilled revenue | 669 | 1,016 | |||||||||
| Work in process | 35 | 59 | |||||||||
| Prepaid expenses | 1,073 | 1,039 | |||||||||
|
Non-current assets held for sale |
- | 1,488 | |||||||||
| 9,493 | 12,114 | ||||||||||
|
Property and equipment |
6,238 | 7,908 | |||||||||
|
Multi-client data library |
20,744 | 23,049 | |||||||||
| Intangible assets | 344 | 551 | |||||||||
| Deferred tax assets | 5 | 5 | |||||||||
| $ | 36,824 | $ | 43,627 | ||||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
|
Accounts payable and accrued liabilities |
$ | 5,696 | $ | 4,780 | |||||||
|
Current portion of provisions |
1,219 | 1,109 | |||||||||
| Current portion of deferred lease inducements | 102 | 123 | |||||||||
| Unearned revenue | 2,573 | 4,873 | |||||||||
|
Deposit for sale of assets |
- | 4,000 | |||||||||
| Income taxes payable | 61 | 50 | |||||||||
| Current portion of obligations under finance lease | 83 | 151 | |||||||||
|
Current portion of long-term debt |
561 | 527 | |||||||||
| 10,295 | 15,613 | ||||||||||
| Deferred lease inducements | 394 | 286 | |||||||||
|
Long-term provisions |
414 | 531 | |||||||||
| Obligations under finance lease | 26 | 41 | |||||||||
|
Long-term debt |
393 | 658 | |||||||||
| Deferred tax liabilities | 53 | 93 | |||||||||
| 11,575 | 17,222 | ||||||||||
| Shareholders' equity: | |||||||||||
|
Share capital |
193,805 | 187,253 | |||||||||
| Accumulated other comprehensive income | 137 | 128 | |||||||||
|
Contributed surplus |
9,320 | 8,700 | |||||||||
| Deficit | (178,013 | ) | (169,676 | ) | |||||||
| 25,249 | 26,405 | ||||||||||
| $ | 36,824 | $ | 43,627 | ||||||||
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INTERMAP TECHNOLOGIES CORPORATION Condensed Consolidated Interim Statements of Comprehensive Income (In thousands of United States dollars, except per share information) (Unaudited) |
|||||||||||||||||||||||
| For the three months | For the six months | ||||||||||||||||||||||
| ended June 30, | ended June 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Contract services | $ | 2,475 | $ | 1,550 | $ | 5,420 | $ | 2,760 | |||||||||||||||
| Multi-client data licenses | 1,964 | 3,720 | 5,847 | 5,987 | |||||||||||||||||||
| 4,439 | 5,270 | 11,267 | 8,747 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
|
Operating costs |
8,086 | 9,157 | 17,493 | 18,421 | |||||||||||||||||||
| Depreciation of property and equipment | 883 | 1,191 | 1,839 | 2,386 | |||||||||||||||||||
| Amortization of multi-client data library | 1,153 | 3,684 | 2,305 | 6,838 | |||||||||||||||||||
| Amortization of intangible assets | 123 | 126 | 227 | 230 | |||||||||||||||||||
| 10,245 | 14,158 | 21,864 | 27,875 | ||||||||||||||||||||
| Operating loss | (5,806 | ) | (8,888 | ) | (10,597 | ) | (19,128 | ) | |||||||||||||||
| Gain (loss) on disposal of equipment | 2,513 | (78 | ) | 2,513 | (72 | ) | |||||||||||||||||
| Financing costs | (34 | ) | (40 | ) | (61 | ) | (84 | ) | |||||||||||||||
| Loss on foreign currency translation | (69 | ) | (184 | ) | (152 | ) | (391 | ) | |||||||||||||||
| Loss before income taxes | (3,396 | ) | (9,190 | ) | (8,297 | ) | (19,675 | ) | |||||||||||||||
| Income tax (expense) recovery: | |||||||||||||||||||||||
| Current | (46 | ) | 6 | (80 | ) | (29 | ) | ||||||||||||||||
| Deferred | 20 | (52 | ) | 40 | (9 | ) | |||||||||||||||||
| (26 | ) | (46 | ) | (40 | ) | (38 | ) | ||||||||||||||||
| Net loss for the period | $ | (3,422 | ) | $ | (9,236 | ) | $ | (8,337 | ) | $ | (19,713 | ) | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency translation differences | 9 | (5 | ) | 9 | (26 | ) | |||||||||||||||||
| Total comprehensive loss for the period | $ | (3,413 | ) | $ | (9,241 | ) | $ | (8,328 | ) | $ | (19,739 | ) | |||||||||||
| Basic and diluted loss per share | $ | (0.05 | ) | $ | (0.18 | ) | $ | (0.12 | ) | $ | (0.38 | ) | |||||||||||
| Weighted average number of Class A | |||||||||||||||||||||||
|
common shares - basic and diluted |
72,382,197 | 52,433,166 | 66,964,706 | 52,432,604 | |||||||||||||||||||
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INTERMAP TECHNOLOGIES CORPORATION Condensed Consolidated Interim Statements of Changes in Equity (In thousands of United States dollars) (Unaudited) |
|||||||||||||||
|
Share |
Contributed |
Cumulative |
Deficit |
Total |
|||||||||||
| Balance at January 1, 2010 | $ 181,623 | $ 7,858 | $ 147 | $ (71,835) | $ 117,793 | ||||||||||
| Comprehensive loss for the period | - | - | (26) | (19,713) | (19,739) | ||||||||||
| Stock-based compensation | 100 | 466 | - | - | 566 | ||||||||||
| Balance at June 30, 2010 | 181,723 | 8,324 | 121 | (91,548) | 98,620 | ||||||||||
| Comprehensive loss for the period | - | - | 7 | (78,128) | (78,121) | ||||||||||
| Stock-based compensation | 98 | 376 | - | - | 474 | ||||||||||
| Issuance of shares | 6,157 | - | - | - | 6,157 | ||||||||||
| Issuance costs | (725) | - | - | - | (725) | ||||||||||
| Balance at December 31, 2010 | 187,253 | 8,700 | 128 | (169,676) | 26,405 | ||||||||||
| Comprehensive loss for the period | - | - | 9 | (8,337) | (8,328) | ||||||||||
| Stock-based compensation | 410 | 355 | - | - | 765 | ||||||||||
| Issuance of shares | 6,791 | - | - | - | 6,791 | ||||||||||
| Issuance costs | (384) | - | - | - | (384) | ||||||||||
| Compension options isued to agent | (265) | 265 | - | - | - | ||||||||||
| Balance at June 30, 2011 | $ 193,805 | $ 9,320 | $ 137 | $ (178,013) | $ 25,249 | ||||||||||
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INTERMAP TECHNOLOGIES CORPORATION Condensed Consolidated Interim Statements of Cash Flows (In thousands of United States dollars) (Unaudited) |
|||||||||||
| For the six months | |||||||||||
| ended June 30, | |||||||||||
| 2011 | 2010 | ||||||||||
| Cash flows (used in) provided by: | |||||||||||
| Operating activities: | |||||||||||
| Net loss for the period | $ | (8,337 | ) | $ | (19,713 | ) | |||||
| Adjusted for the following non-cash items: | |||||||||||
| Depreciation of property and equipment | 1,839 | 2,386 | |||||||||
| Amortization of multi-client data library | 2,305 | 6,838 | |||||||||
| Amortization of intangible assets | 227 | 230 | |||||||||
| Share-based compensation expense | 857 | 566 | |||||||||
| (Gain) loss on disposal of equipment | (2,513 | ) | 72 | ||||||||
| Amortization of deferred lease inducements | 89 | (165 | ) | ||||||||
| Deferred taxes | (40 | ) | 9 | ||||||||
| Financing costs | 61 | (84 | ) | ||||||||
| Current income tax expense | 80 | 29 | |||||||||
| Interest paid | (41 | ) | (84 | ) | |||||||
| Income tax paid | (66 | ) | (68 | ) | |||||||
| Change in non-cash operating working capital | (1,173 | ) | 7,454 | ||||||||
| (6,712 | ) | (2,530 | ) | ||||||||
| Investing activities: | |||||||||||
| Purchase of property and equipment | (169 | ) | (674 | ) | |||||||
| Investment in multi-client data library | - | (2,909 | ) | ||||||||
| Proceeds from sale of equipment | 1 | 19 | |||||||||
| (168 | ) | (3,564 | ) | ||||||||
| Financing activities: | |||||||||||
| Proceeds from issuance of common shares | 6,791 | - | |||||||||
| Securities issuance costs | (384 | ) | - | ||||||||
| Repayment of obligations under finance lease | (82 | ) | (137 | ) | |||||||
| Repayment of long-term debt | (265 | ) | (483 | ) | |||||||
| 6,060 | (620 | ) | |||||||||
| Effect of foreign exchange on cash | 40 | (327 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | (780 | ) | (7,041 | ) | |||||||
| Cash and cash equivalents, beginning of period | 4,356 | 10,355 | |||||||||
| Cash and cash equivalents, end of period | $ | 3,576 | $ | 3,314 | |||||||