Intermap Technologies Reports 2014 Third Quarter Financial Results

DENVER, Nov. 10, 2014 /CNW/ - (TSX: IMP) – Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the third quarter ended September 30, 2014. A conference call will be held today, November 10^th, 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.

Intermap reported total revenue of $2.7 million for the third quarter of 2014, a 15% increase from the second quarter of the year. Third quarter revenue of $2.7 million is compared to $6.4 million in the same period of 2013. During the third quarter of last year, $5.4 million of mapping services revenue was recognized on a $15.0 million contract that was announced earlier in the year. No similar sized project was contracted for during the first nine months of the current year, making up the majority of the variance between the current year and the prior year periods. Net loss for the third quarter of 2014 was $2.8 million, or ($0.03) per share, compared to a net loss of $0.5 million, or ($0.01) per share, for the third quarter of 2013. Third quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $2.1 million, a decrease from an adjusted EBITDA profit of $0.6 million for the same period in 2013. Adjusted EBITDA excludes share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.

"This third quarter was productive for us with the announcement of a $1.8 million mapping services contract and further progress with our 3DBI^® (3D business intelligence) software applications," said Todd Oseth, President & CEO of Intermap. "In early October we reported v2.2 of our InsitePro^® product. This latest release of InsitePro incorporates a new underwriting module that provides property insurance underwriters with a powerful means to evaluate individual locations for flood risk and other perils anywhere in the world."   

During the third quarter Intermap announced that Swiss Re, a top ten global leader in the reinsurance market, had licensed its InsitePro product for use in Brazil.

"Swiss Re has available to them many different products to manage their underwriting business and we're pleased that they ultimately chose Intermap's InsitePro product to help solve their insurance underwriting challenges," said Mr. Oseth. "We view our contract with Swiss Re as a key endorsement for our InsitePro product."

InsitePro software helps Swiss Re to analyze and visualize location-specific risk to help bring superior flood and underwriting knowledge to the Brazilian market allowing them to evaluate locations one-by-one or thousands at a time via our innovative risk models and analytics.

"In addition to our progress on 3DBI software applications, we continue to progress towards the closing of a major international Orion Platform spatial data infrastructure contract," said Mr. Oseth.

Orion projects are primarily government sourced and inherently complicated. They typically carry long sales cycles due to (i) the dollar magnitude of the contract, (ii) the individual country's political landscape, (iii) the timing of budgets, (iv) the multi-agency and multi-level government approval process, (v) the complexity of the project, and (vi) the funding mechanisms required for the project (i.e. banking syndicates).

"We remain optimistic that we will be able to announce the signing of one of these contracts before the end of the year, but due to the factors mentioned above, the actual timing remains very difficult to predict," added Mr. Oseth.

Financial Review

Consolidated revenue for the third quarter of 2014 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. For the same period in 2013, consolidated revenue totaled $6.4 million and included (i) $5.4 million in mapping services, (ii) $0.1 million in professional services, (iii) $0.6 million in data licensing, and (iv) $0.3 million in 3DBI software licensing. Contract backlog at the end of the quarter totaled $0.3 million. 

For the third quarter of 2014, personnel expense was $2.8 million, compared to $3.0 million in the previous year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.

For the third quarter of 2014, purchased services and materials expense was $1.4 million, compared to $1.9 million during the same period last year. The decrease in this category of expense is primarily due to project specific costs associated with airborne data collection efforts in the previous year with no similar work under contract in the reporting period. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to airborne data collection efforts, processing and editing of the Company's data collection efforts, and (iv) software expenses (including maintenance and support).

The cash position of the Company at September 30, 2014 (cash and cash equivalents) was $1.0 million, compared to $2.4 million at December 31, 2013. Amounts receivable and unbilled revenue at September 30, 2014 was $3.4 million, compared to $6.6 million at December 31, 2013. Working capital was negative $5.1 million at September 30, 2014, compared to positive $3.9 million at December 31, 2013 (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 (Previously Announced)

• Intermap announced the award of a $1.8 million contract for an airborne radar mapping services solution. The Company's proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology will be used to collect orthorectified radar imagery and high resolution elevation data to enhance the customer's existing geospatial map database. This new dataset will be used for improved disaster planning, resource management, security interests, and infrastructure planning.
• Intermap announced the launch of AdPro v3.2 which provides media planners, buyers and owners with an easy way to turn big data into smarter advertising decisions. This latest version of AdPro gives users the ability to analyze market-level campaigns using Traffic Audit Bureau (TAB) ratings for reach, frequency and impressions to quickly pinpoint the perfect audience. AdPro v3.2 allows users to evaluate and select the best locations for their out-of-home advertising campaigns by offering integrated access to standardized TAB ratings. The TAB out-of-home ratings are standardized, quantitative and reliable – providing exhaustive demographic information across the entire United States. 
• Intermap announced the launch of GeoPro™ Bundle, a new software offering that includes a customer-selected set of Intermap's unmatched NEXTMap^® elevation data with a subscription to the Company's GeoPro SaaS application.
• Intermap announced further details about a previously announced agreement (June 10, 2014) to license the Company's InsitePro software to a top ten global reinsurer for use in Latin American. Swiss Re contracted with the Company to license its InsitePro risk software product to help them visualize and analyze location-specific risk. Under the terms of the agreement, Swiss Re is using the product to help bring its superior flood and underwriting knowledge to the Brazilian market in the form of a flood risk assessment tool. This tool provides underwriters with a powerful means to evaluate locations one-by-one or thousands at a time via innovative risk models and analytics.  
•  The Company announced the release of InsitePro v2.2. This latest version includes a new Underwriting Module that provides property insurance underwriters with a means to evaluate individual locations for flood risk and other perils anywhere in the world.

As of November 10, 2014, there were 91,782,665 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 at 11:00 am ET (9:00 am MT)

Intermap will host a conference call this morning, November 10, at 11:00 am ET. To participate in the call, please dial [phone] or 1-888-231-8191 approximately 10 minutes prior to the conference call and provide conference ID 27502293. A recording of the conference call will be available through January 31, 2015. Please dial [phone] or 1-855-859-2056 and provide pass code 27502293 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 geospatial solutions on demand. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of GIS data into a single source, Intermap is able to provide location based solutions for customers in diverse markets around the world that solve today's complex geospatial challenges.

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, 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)
(Unaudited)

			September 30,	December 31,
			2014	2013
Assets
Current assets:
	Cash and cash equivalents		$              961	$           2,420
	Amounts receivable		3,258	6,434
	Unbilled revenue		148	151
	Work in process		7	33
	Prepaid expenses		476	407
			4,850	9,445
Property and equipment			2,998	3,378
Intangible assets			32	116
			$           7,880	$          12,939
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities		$           3,669	$           3,953
	Convertible note		4,812	-
	Current portion of notes payable		1,145	1,188
	Current portion of deferred lease inducements		134	188
	Unearned revenue and deposits		90	110
	Income taxes payable		6	12
	Obligations under finance leases		123	115
			9,979	5,566
Long-term notes payable			85	-
Deferred lease inducements			340	202
Obligations under finance leases			99	192
Other long-term liabilities			8	-
			10,511	5,960
Shareholders' equity:
	Share capital		197,464	197,376
	Accumulated other comprehensive income		(21)	37
	Contributed surplus		11,159	10,671
	Deficit		(211,233)	(201,105)
			(2,631)	6,979
			$           7,880	$          12,939

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)
(Unaudited)

			For the three months ended September 30,				For the nine months ended September 30,
			2014		2013		2014		2013
Revenue			$         2,710		$         6,355		$         7,167		$       20,325
Expenses:
	Operating costs		4,938		5,178		15,979		17,361
	Depreciation of property and equipment		290		356		877		1,080
	Amortization of data library		-		1,152		-		3,457
	Amortization of intangible assets		25		30		84		89
			5,253		6,716		16,940		21,987
Operating loss			(2,543)		(361)		(9,773)		(1,662)
Gain on disposal of equipment			42		138		455		342
Financing costs			(341)		(37)		(853)		(487)
Financing income			7		-		15		-
Gain (loss) on foreign currency translation			70		(198)		(51)		(434)
Loss before income taxes			(2,765)		(458)		(10,207)		(2,241)
Income tax (expense) recovery:
	Current		-		(11)		-		(58)
	Deferred		-		-		79		-
			-		(11)		79		(58)
Net loss for the period			$        (2,765)		$           (469)		$      (10,128)		$        (2,299)
Other comprehensive (loss) income:
	Foreign currency translation differences		(59)		35		(58)		1
Comprehensive loss for the period			$        (2,824)		$           (434)		$      (10,186)		$        (2,298)
Basic and diluted loss per share			$          (0.03)		$          (0.01)		$          (0.11)		$          (0.03)
Weighted average number of Class A common
	shares - basic & diluted		91,782,665		88,426,588		91,664,876		82,191,436

Intermap Technologies corporation
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of United States dollars)
(Unaudited)

			Contributed Surplus		Cumulative Translation Adjustments
	Share Capital						Deficit		Total
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
Comprehensive loss for the period	-		-		(22)		(12,608)		(12,630)
Share-based compensation	-		189		-		-		189
Balance at December 31, 2013	$	197,376	$	10,671	$	37	$	(201,105)	$	6,979
Comprehensive loss for the period	-		-		(58)		(10,128)		(10,186)
Share-based compensation	40		298		-		-		338
Warrant component of convertible note	64		-		-		-		64
Conversion option of convertible note	-		259		-		-		259
Issuance costs	(1)		(5)		-		-		(6)
Deferred tax effect of convertible note	(15)		(64)		-		-		(79)
Balance at September 30, 2014	$	197,464	$	11,159	$	(21)	$	(211,233)	$	(2,631)

Intermap Technologies corporation
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)
(Unaudited)

For the Nine Months Ended September 30,				2014			2013
Cash flows provided by:
Operating activities:
		Net loss for the period		$	(10,128)		$	(2,299)
		Adjusted for the following non-cash items:
			Depreciation of property and equipment	877			1,080
			Amortization of data library	-			3,457
			Amortization of intangible assets	84			89
			Share-based compensation expense	346			341
			Gain on disposal of equipment	(455)			(342)
			Amortization of deferred lease inducements	(31)			(49)
			Extinguishment of facility closure provision	-			(720)
			Deferred taxes	(79)			-
			Financing costs	853			487
			Current income tax expense	-			58
			Interest paid	(21)			(61)
			Income tax paid	(6)			(39)
		Changes in working capital:
			Amounts receivable	3,214			732
			Work in process and other assets	(40)			622
			Accounts payable	(446)			(436)
			Accrued liabilities	(300)			(556)
			Unearned revenue and deposits	(20)			62
			Gain on foreign currency translation	52			8
				(6,100)			2,434
Investing activities:
		Purchase of property and equipment		(561)			(463)
		Proeecds from sale of equipment		357			112
				(204)			(351)
Financing activities:
		Proceeds from issuance of convertible note		5,000			-
		Financing costs of convertible note		(93)			(6)
		Proceeds from reimbursable project funding		88			-
		Repayment of obligations under finance lease		(85)			(262)
		Repayment of long-term debt and notes payable		(65)			(618)
				4,845			(886)
Effect of foreign exchange on cash				-			(15)
(Decrease) increase in cash and cash equivalents				(1,459)			1,182
Cash and cash equivalents, beginning of period				2,420			2,055
Cash and cash equivalents, end of period				$	961		$	3,237

SOURCE: Intermap Technologies Corporation

Intermap Technologies: Rich Mohr, Senior Vice President & Chief Financial Officer, [email protected], [phone]; Canada - Financial: Cory Pala, Investor Relations, e.vestor Communications Inc., [email protected], [phone]