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Press release from CNW Group

Intermap Technologies Reports 2012 Third Quarter Financial Results

Wednesday, November 07, 2012

Intermap Technologies Reports 2012 Third Quarter Financial Results16:00 EST Wednesday, November 07, 2012Consolidated revenue of $8.0MNet income of $0.4MAdjusted EBITDA of $2.5MYear-over-year operating costs decrease 19% DENVER, Nov. 7, 2012 /CNW/ - (TSX: IMP) - Intermap Technologies Corporation ("Intermap" or the "Company"), a leading provider of location based information (LBI) solutions created from its uniform, high-resolution 3D digital models of the Earth's surface, today reported financial results for the third quarter ended September 30, 2012. A conference call will be held today, November 7th, 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 third quarter of 2012, equivalent to the amount recorded in the third quarter of 2011. Net income for the third quarter of 2012 was $0.4 million or $0.01 per share, compared with a net loss of $0.8 million, or ($0.01) per share, for the third quarter of 2011. Third quarter adjusted EBITDA, a non IFRS financial measure, was $2.5 million, a 61% improvement compared with $1.5 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 another positive adjusted EBITDA quarter for Intermap," said Todd Oseth, Intermap's president and chief executive officer. "Our NEXTMap® licensing and contract services revenues in Q3 were split almost equally as we continued to deliver on our NEXTMap licensing and contract services backlog. Our contract services revenue increased significantly during the quarter as we completed the airborne collection phase of our $6.1 million contract in Alaska. We're currently in the processing and editing phase of this project, and we are expecting to be near completion by year-end. We entered the fourth quarter with $3.7 million of backlog, and we're optimistic that we will be able to increase this backlog as we move forward into 2013."Mr. Oseth added, "Our sales pipeline remains strong and we expect to close additional contracts over the remainder of the fourth quarter and into the new year. Our new business continues to be driven by our commercial 3D business intelligence solutions approach that addresses our customers' specific geospatial needs in both the contract services and NEXTMap licensing portions of our business. During the quarter, we continued with our solutions focus by enhancing the functionality of our "Pro" series of 3D business intelligence products. We have also increased the associated marketing that is necessary to drive future recurring revenue from these products. We continue to develop new commercial applications that will expand addressable customers and revenue sources in the future."Financial ReviewContract services revenue in the third quarter increased to $4.1 million from $3.2 million last year and data licensing revenue decreased to $3.9 million from $4.9 million last year. As of September 30, 2012, the contract backlog of $3.7 million consisted of $2.6 million in contract services revenue and $1.1 million in data licensing revenue.For the third quarter 2012, personnel expense was $3.1 million, an 11% decrease from the prior year amount of $3.5 million. On a year-to-date basis, personnel expense was $10.0 million, a 24% decrease from the prior year amount of $13.3 million.For the third quarter 2012, purchased services and materials expense was $1.8 million, a 26% decrease from the prior year amount of $2.5 million. The decrease from 2011 is primarily related to a decrease in job and subcontractor expenses associated with contract services work that was performed during the respective periods. 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 September 30, 2012 (cash and cash equivalents) was $5.7 million, compared to $2.8 million at June 30, 2012. Amounts receivable and unbilled revenue at September 30, 2012 was $2.6 million, compared to $5.1 million at June 30, 2012. Working capital improved to ($0.1) million at September 30, 2012, compared to ($2.0) million at June 30, 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 HighlightsIntermap was awarded a $3.6 million task order from Dewbery & Davis for the third 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 $368,000 contract for the creation of a new elevation data set for the Malaysian Government. The imagery and elevation data are being used for mapping and infrastructure development in Malaysia. This new elevation data set is derived from Intermap's industry leading and proprietary data fusion process. The fused data combines the temporal immediacy of a new satellite collection with the precise accuracy of Intermap's NEXTMap Malaysia data archive. Intermap's data fusion process integrates stereo pairs of radar satellite imagery with existing NEXTMap data via the Company's ISO-certified editing processes.As of November 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, November 7, 2012, 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. A recording of the conference call will be available through November 16, 2012. Please dial +1-416-849-0833 or 1-855-859-2056 and provide pass code 38684098 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 TechnologiesHeadquartered in Denver, Colorado, Intermap (www.intermap.com) is a leading provider of Location-Based Information (LBI) solutions, 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 geographies, data-layers, 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 CorporationCondensed Consolidated Interim Balance Sheets(In thousands of United States dollars)      September 30, December 31,      2012 2011         Assets             Current assets:     Cash and cash equivalents $5,668  $597 Amounts receivable 1,556  5,512 Unbilled revenue 1,005  865 Work in process 9  26 Prepaid expenses 580  616      8,818  7,616         Property and equipment 3,795  5,273Data library  14,982  18,439Intangible assets 265  290Deferred tax assets -  5      $27,860  $31,623         Liabilities and Shareholders' Equity             Current liabilities:     Accounts payable and accrued liabilities  $4,524  $5,097 Current portion of provisions  723  888 Current portion of notes payable 748  69 Current portion of deferred lease inducements 95  97 Convertible note  2,310  - Unearned revenue 155  1,544 Income taxes payable 9  43 Current portion of obligations under finance lease  347  323 Current portion of long-term debt -  548      8,911  8,609         Long-term notes payable 1,136  1,629Deferred lease inducements 438  363Long-term provisions 38  223Obligations under finance lease -  262Long-term debt -  95Deferred tax liabilities -  13      10,523  11,194         Shareholders' equity:     Share capital  194,148  193,992 Accumulated other comprehensive income  30  46 Contributed surplus  10,286  9,663 Deficit (187,127) (183,272)      17,337  20,429                 $27,860  $31,623       Intermap Technologies CorporationCondensed Consolidated Interim Statements of 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,         2012201120122011             Revenue:         Contract services $4,100  $3,198 $9,010  $8,618 Data licenses 3,865  4,886 11,169  10,733      7,965  8,084 20,179  19,351Expenses:         Operating costs 5,573  6,880 18,439  24,373 Depreciation of property and equipment 404  797 1,471  2,636 Amortization of data library 1,152  1,152 3,457  3,457 Amortization of intangible assets 30  136 138  363      7,159  8,965 23,505  30,829             Operating income (loss) 806  (881) (3,326) (11,478)             Gain on disposal of equipment -  1 26  2,514Financing costs, net (220) (46) (313) (107)Gain (loss) on foreign currency translation (149) 192 (200) 40             Income (loss) before income taxes 437  (734) (3,813) (9,031)             Income tax (expense) recovery:         Current (14) (47) (50) (127) Deferred -  20 8  60      (14) (27) (42) (67)               Net income (loss) for the period $423  $(761) $(3,855) $(9,098)               Other comprehensive (income) loss:         Foreign currency translation differences 21  (55) (16) (46)             Total comprehensive income (loss) for the period $444  $(816) $(3,871) $(9,144)             Net income (loss) per share:        Basic and diluted $0.01 $(0.01)$(0.05) $(0.13)             Weighted average number of Class A          common shares - basic and diluted 78,887,915  78,692,914 78,637,986  70,616,344               Intermap Technologies CorporationCondensed Consolidated Interim Statements of Changes in Equity(In thousands of United States dollars)       Share Capital   ContributedSurplus   Cumulative  Translation Adjustments     Deficit     Total           Balance at December 31, 2010 $187,253 $8,700 $128 $(169,676) $26,405           Comprehensive loss for the period - - (46) (9,098) (9,144)Share-based compensation 591 588 - - 1,179Issuance of shares 6,791 - - - 6,791Issuance costs (384) - - - (384)Compensation options issued to agent (265) 265 - - -           Balance at September 30, 2011 193,986 9,553 82 (178,774) 24,847           Comprehensive loss for the period - - (36) (4,498) (4,534)Share-based compensation 6 110 - - 116           Balance at December 31, 2011 193,992 9,663 46 (183,272) 20,429           Comprehensive loss for the period - - (16) (3,855) (3,871)Share-based compensation 138 491 - - 629Issuance of convertible note 19 136 - - 155Issuance costs of convertible note (1) (4) - - (5)           Balance at September 30, 2012 $ 194,148 $10,286 $30 $ (187,127) $17,337  Intermap Technologies Corporation Condensed Consolidated Interim Statements of Cash Flows(In thousands of United States dollars)For the Nine Months Ended September 30, 2012  2011      Cash flows (used in) provided by:           Operating activities:      Net loss for the period $(3,855)  $(9,098) Adjusted for the following non-cash items:       Depreciation of property and equipment 1,471  2,636  Amortization of data library 3,457  3,457  Amortization of intangible assets 138  363  Share-based compensation expense 613  1,179  Gain on disposal of equipment (26)  (2,514)  Amortization of deferred lease inducements 104  81  Deferred taxes (8)  (60)  Financing costs 313  107  Current income tax expense 50  127  Interest paid (99)  (66)  Income tax paid (109)  (86) Change in non-cash operating working capital 1,401  (3,889)     3,450  (7,763)         Investing activities:      Purchase of property and equipment -   (102) Investment in intangible assets (113)  (167) Proceeds from sale of equipment 33  1      (80)  (268)          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) Proceeds from reimbursable project funding 151  - Repayment of obligations under finance lease (238)  (164) Repayment of long-term debt (644)  (398)  1,694  5,845      Effect of foreign exchange on cash 7  18      Increase/(decrease) in cash and cash equivalents 5,071  (2,168)      Cash and cash equivalents, beginning of period 597  4,356      Cash and cash equivalents, end of period $5,668  $2,188            SOURCE: Intermap Technologies CorporationFor further information: Intermap Technologies Rich Mohr, Senior Vice President & Chief Financial Officer rmohr@intermap.com +1 (303) 708-0955 Canada - Financial  Cory Pala, Investor Relations e.vestor Communications Inc. cpala@evestor.com +1 (416) 657-2400 United States - Financial  Budd Zuckerman, Investor Relations Genesis Select Corporation bzuckerman@genesisselect.com +1 (303) 415-0200