Intermap Technologies Reports 2015 Third Quarter Financial Results

DENVER, Nov. 12, 2015 /CNW/ - (TSX: IMP) – Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the third quarter ended September 30, 2015. A conference call will be held tomorrow, November 13^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.

"Our focus during the third quarter was to complete the definitive contract terms associated with the spatial data infrastructure (SDI) project announced on June 22, 2015 where we communicated that Intermap had received a letter of award for an Orion Platform^® implementation program valued at greater than $125 million," said Todd Oseth, President & CEO of Intermap. "In our September 29, 2015 press release we disclosed that the estimated closing time for a definitive agreement on this SDI had moved into the fourth quarter as a result of a request from the end client to change the scope of the project. Since that time, we have made material progress on all of the additional contract terms of the definitive agreements and remain on schedule to complete a definitive contract during this quarter. This award represents the largest SDI award in the Company's history and we believe it will be a catalyst to close other large Orion Platform government implementations as well as promote Intermap's location based Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) product offerings for the enterprise sector.

Intermap reported third quarter revenue of $3.8 million is compared to $2.7 million for the third quarter of 2014. Third quarter revenue included (i) $3.0 million in mapping services, (ii) $0.2 million in professional services, (iii) $0.3 million in data licensing, and (iv) $0.3 million in 3DBI software licensing. For the same period in 2014, consolidated revenue 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. Contract backlog at the end of the quarter totaled $0.9 million.  During the third quarter of this year, 80% of the revenue was recognized from mapping services work, primarily in North America. During the third quarter of the prior year, 73% of the revenue was also recognized from mapping services work in North America, but from smaller contracted amounts. Combined revenue from professional services, data licenses and 3DBI software increased 4% as compared to the third quarter of 2014.

Mr. Oseth added, "During the third quarter, we saw an overall improvement in our base business with increases in all of our revenue components. Additionally, the interest in our InsitePro risk based software continues to grow due to our ability to customize the application for our customer's individual needs. We expect that the software development efforts on all of our software products will be fast paced during the coming year to address the needs of both our SDI customers and the enterprise market."  

For the third quarter of 2015, personnel expense was $2.7 million, compared to $2.8 million in the same period last year. Purchased services and materials expense was $1.2 million, compared to $1.4 million during the same period last year.

Third quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $0.5 million, an improvement from an adjusted EBITDA loss of $2.1 million for the same period in 2014. Adjusted EBITDA excludes share-based compensation, change in value of derivative instruments, gain or loss on the disposal of equipment, impairment losses or reversals, and gain or loss on foreign currency translation. Including these items, the Company reported a third quarter operating loss of $1.0 million and a net loss of $2.8 million, or ($0.03) per share. This is compared to an operating loss of $2.5 million and a net loss of $2.5 million, or ($0.03) per share, for the third quarter of 2014.

The cash position of the Company at September 30, 2015 (cash, restricted cash, and cash equivalents) was $1.4 million, compared to $0.5 million at December 31, 2014. Amounts receivable and unbilled revenue at September 30, 2015 was $1.9 million, compared to $1.5 million at December 31, 2014. Working capital was negative $15.0 million at September 30, 2015, compared to negative $8.7 million at December 31, 2014 (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

• On July 22, 2015, Intermap announced an agreement with a leading Global Reinsurer to license InsitePro^™ software in: Argentina, Peru, Colombia, and Chile. The adoption of flood insurance throughout South America is increasing and InsitePro serves the growing demand from insurance carriers. InsitePro will be delivered to underwriters so that they have the necessary software to evaluate locations, one-by-one or thousands at a time, using innovative and reliable risk models and analytics. Underwriting flood coverage is a location-based decision that depends on accurate integration of geospatial answers and flood risk information. Intermap is delivering InsitePro to this Global Reinsurer to help them transfer their underwriting capabilities to their clients in the Latin American market. InsitePro leverages Intermap's best-in-class NEXTMap^® and NEXTMap World 30^™ elevation datasets, together with powerful analytics, to produce a robust SaaS-based risk analysis tool. Configurable risk scoring allows users to go beyond flood models to better understand flood risk by combining heights above flood elevation, flow routes from rivers to buildings, and the latest flood models in a way that solves specific business problems. InsitePro can also display a customer's own proprietary risk data or any available government data.
  
  
• On September 16, 2015, Intermap announced that it had received a US$1.1 million expansion to a US$2.1 million airborne radar mapping services solution contract previously announced on June 5, 2015, increasing the total value of the contract to $3.2 million. Intermap is using its proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology 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. The final deliveries of the dataset were substantially complete by the end of the third quarter 2015.
  
  
• On September 24, 2015, Intermap announced that it had entered into an agreement with Atkins, one of the world's most respected design, engineering, and project management consultancies, to include their natural catastrophe risk and hazard data archives, including North American earthquake data, in its InsitePro software product. With the Atkins agreement, Intermap will be offering risk scores for all natural perils, including earthquake, hail, tornado, and wind (straight-line and hurricane). InsitePro can now replicate the innovation brought to flood risk assessment across these other perils, delivering custom analytics to underwriters that are based on dependable data and their own view of risk. Using InsitePro, carriers can automate the risk pricing activities that they are comfortable with and identify risks that need further analysis by an underwriter. It offers fast answers for most properties and allows the carrier to add value where appropriate. Including all perils will enable a carrier to write complete property coverage for homes and businesses to differentiate themselves from carriers that only offer standard coverage.

As of November 12, 2015, there were 100,237,372 common shares outstanding.

As of November 12, 2015, potential dilutive securities include (i) 7,176,150 outstanding share options in the Company's share option plan with a weighted average exercise price of C$0.46, and (ii) 24,713,130 warrants outstanding with a weighted average exercise price of C$0.08. Each option and warrant entitles the holder to purchase one Class A common share.

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 tomorrow, November 13, 2015, at 11:00 am ET (9:00 am MT). 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 73094836. A recording of the conference call will be available through March 1, 2016. Please dial [phone] and provide pass code 73094836 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 the creation of National Spatial Data Infrastructures (NSDIs) with its secure, cloud-based Orion Platform^™. Through its powerful suite of 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.

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, other securities filings, and more specifically in the Company's press release dated June 22, 2015 regarding the letter of award for an Orion Platform implementation. 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, 2014 and 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)

			September 30,		December 31,
			2015		2014
Assets
Current assets:
	Cash and cash equivalents		$	876	$	537
	Restricted cash		496		-
	Amounts receivable		1,790		1,453
	Unbilled revenue		71		63
	Prepaid expenses		428		412
	Work in process		3		-
			3,664		2,465
Property and equipment			2,135		2,833
Intangible assets			-		13
			$	5,799	$	5,311
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities		$	6,003	$	3,785
	Current portion of convertible and other notes payable		7,345		5,313
	Current portion of project financing		1,088		1,168
	Current portion of deferred lease inducements		131		137
	Unearned revenue and deposits		364		451
	Warrant liability		3,613		226
	Income taxes payable		6		2
	Obligations under finance leases		105		131
			18,655		11,213
Long-term convertible and other notes payable			7,300		-
Long-term project financing			192		122
Deferred lease inducements			177		311
Obligations under finance leases			24		96
Other long-term liabilities			533		6
			26,881		11,748
Shareholders' equity:
	Share capital		196,362		194,377
	Accumulated other comprehensive income		(87)		(57)
	Contributed surplus		11,536		11,395
	Deficit		(228,893)		(212,152)
			(21,082)		(6,437)
			$	5,799	$	5,311

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)

			For the three months						For the nine months
			ended September 30,						ended September 30,
									(as restated)
			2015			2014			2015			2014
Revenue			$	3,750		$	2,710		$	5,425		$	7,167
Expenses:
	Operating costs		4,498			4,938			13,995			15,979
	Depreciation of property and equipment		248			290			734			877
	Amortization of intangible assets		-			25			13			84
			4,746			5,253			14,742			16,940
Operating loss			(996)			(2,543)			(9,317)			(9,773)
Gain on disposal of equipment			47			42			94			455
Change in fair value of derivative instruments			(432)			394			(4,075)			1,799
Financing costs			(1,605)			(478)			(3,591)			(988)
Financing income			4			7			8			15
Gain (loss) on foreign currency translation			66			70			90			(51)
Loss before income taxes			(2,916)			(2,508)			(16,791)			(8,543)
Income tax (expense) recovery:
	Current		(3)			-			(23)			-
	Deferred		73			-			73			318
			70			-			50			318
Net loss for the period			$	(2,846)		$	(2,508)		$	(16,741)		$	(8,225)
Other comprehensive loss:
Items that are or may be reclassified subsequently to profit or loss:
	Foreign currency translation differences		2			(59)			(30)			(58)
Comprehensive loss for the period			$	(2,844)		$	(2,567)		$	(16,771)		$	(8,283)
Basic and diluted loss per share			$	(0.03)		$	(0.03)		$	(0.17)		$	(0.09)
Weighted average number of Class A common
	shares - basic & diluted		99,608,527			91,782,665			99,254,035			91,664,876

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 December 31, 2013 (as restated)	$	194,337	$	10,671	$	37	$	(199,352)	$	5,693
Comprehensive income (loss) for the period	-		-		(58)		(8,225)		(8,283)
Share-based compensation	40		298		-		-		338
Deferred tax effect of convertible note	-		(318)		-		-		(318)
Conversion option of convertible note	-		599		-		-		599
Balance at September 30, 2014 (as restated)	$	194,377	$	11,250	$	(21)	$	(207,577)	$	(1,971)
Comprehensive loss for the period	-		-		(36)		(4,575)		(4,611)
Share-based compensation	-		110		-		-		110
Conversion option of convertible note	-		105		-		-		105
Issuance costs	-		(5)		-		-		(5)
Deferred tax effect of convertible note	-		(65)		-		-		(65)
Balance at December 31, 2014	$	194,377	$	11,395	$	(57)	$	(212,152)	$	(6,437)
Comprehensive loss for the period	-		-		(30)		(16,741)		(16,771)
Share-based compensation	30		230		-		-		260
Exercise of warrants	1,004		-		-		-		1,004
Exercise of options	35		-		-		-		35
Convertible note conversion	556		(16)		-		-		540
New warrant issuance	360		-		-		-		360
Deferred tax effect of convertible note	-		(73)		-		-		(73)
Balance at September 30, 2015	$	196,362	$	11,536	$	(87)	$	(228,893)	$	(21,082)

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

						(as restated)
For the nine months ended September 30,			2015			2014
Cash flows provided by:
Operating activities:
	Net loss for the period		$	(16,741)		$	(8,225)
	Adjusted for the following non-cash items:
		Depreciation of property and equipment	734			877
		Amortization of intangible assets	13			84
		Share-based compensation expense	786			346
		Gain on disposal of equipment	(94)			(455)
		Amortization of deferred lease inducements	(106)			(31)
		Deferred taxes	(73)			(318)
		Change in fair value of derivative instruments	4,075			(1,799)
		Financing costs	3,591			988
		Current income tax expense	23			-
		Interest paid	(15)			(21)
		Income tax paid	(19)			(6)
	Changes in working capital:
		Amounts receivable	(342)			3,214
		Work in process and other assets	(27)			(40)
		Accounts payable	650			(446)
		Accrued liabilities	(5)			(300)
		Unearned revenue and deposits	(87)			(20)
		(Gain) loss on foreign currency translation	(75)			52
			(7,712)			(6,100)
Investing activities:
	Purchase of property and equipment		(36)			(561)
	Proceeds from sale of equipment		-			357
			(36)			(204)
Financing activities:
	Proceeds from notes payable		14,800			5,000
	Financing costs of notes payable		(99)			(93)
	Proceeds from reimbursable project funding		93			88
	Proceeds from exercise of warrants		156			-
	Proceeds from exercise of options		35			-
	Movement to restricted cash		(496)			-
	Repayment of obligations under finance lease		(98)			(85)
	Repayment of long-term debt and notes payable		(6,300)			(65)
			8,091			4,845
Effect of foreign exchange on cash			(4)			-
Increase (decrease) in cash and cash equivalents			339			(1,459)
Cash and cash equivalents, beginning of period			537			2,420
Cash and cash equivalents, end of period			$	876		$	961

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]