Intermap Technologies Reports 2016 First Quarter Financial Results

DENVER, May 12, 2016 /CNW/ - (TSX: IMP) – Intermap Technologies Corporation ("Intermap" or the "Company") today reported financial results for the first quarter ended March 31, 2016. A conference call will be held tomorrow, May 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.

Intermap reported total revenue of $1.4 million for the first quarter of 2016, compared to $1.0 million recorded in the first quarter of 2015. Operating loss for the first quarter of 2016 and 2015 was $2.7 million and $4.0 million, respectively. First quarter adjusted EBITDA for 2016 and 2015, a non IFRS financial measure, was a loss of $2.3 million and a loss of $3.6 million, respectively. Adjusted EBITDA excludes share-based compensation, change in value of derivative instruments, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.

"During the first quarter we closed a $175 million Spatial Data Infrastructure ("SDI") contract with the expected commencement of the project to occur during the second quarter of 2016 once project financing is completed by the client. Our focus for the quarter was to support the project requirements of the client and preparation work in advance of the project commencement. This preparation included ongoing enhancements to our Orion software platform and logistical requirements associated with data acquisition efforts on the project. Notable progress was achieved on all fronts," said Todd Oseth, President & CEO of Intermap. "Also during the quarter, we progressed on other SDI programs that have been in the works for some time. The sales cycle of these SDI's is measured in years due to the complexity of the project scopes, approval requirements associated with multiple ministries (the users of the information), and budgeting cycles. We remain optimistic about our future SDI opportunities as we press forward to become the premier provider of SDI's in the industry."

Financial Review

Consolidated revenue for the first quarter of 2016 totaled $1.4 million and included (i) $0.2 million in mapping services, (ii) $0.1 million in professional services, (iii) $0.7 million in data licensing, and (iv) $0.4 million in software licensing. For the same period in 2015, consolidated revenue totaled $1.0 million and included (i) $0.3 million in mapping services, (ii) $0.4 million in data licensing, and (iii) $0.3 million in software licensing.  Amounts receivable and unbilled revenue at March 31, 2016 was $1.4 million, compared to $2.3 million at December 31, 2015.

For the first quarter of 2016, personnel expense was $2.8 million, compared to $3.0 million last year. The decrease was primarily due to reduced personnel in all of the Company's offices.

For the first quarter of 2016, purchased services and materials expense was $0.8 million, compared to $1.1 million recognized during the same period last year. The decrease in this category of expense is primarily due to decreases in data royalties, legal and subcontractor expenses. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to the collection, processing and editing of the Company's data collection activities, and (iv) software expenses (including maintenance and support).

The restricted cash position of the Company at March 31, 2016 was $0.1 million, compared to $0.8 million at December 31, 2015. Working capital was negative $25.7 million (includes $16.6 million in current portion of notes payable) at March 31, 2016, compared to negative $16.6 million (includes $9.1 million in current portion of notes payable) at December 31, 2015 (see "Intermap Reader Advisory" below). Subsequent to the close of the first quarter, the Company arranged for $5.0 million in new debt financing with its senior lender.

Detailed financial results and management's discussion and analysis can be found on SEDAR at: www.sedar.com.

First Quarter Business Highlights

• On February 5, 2016, the Company announced that it had entered into definitive agreements (collectively, the "Contract"), pertaining to the previously announced letter of award (see June 22, 2015 press release) for the creation, operation and maintenance of a national spatial data infrastructure ("SDI") program (the "Project").
  
  Under the terms of the Contract, the statement of work for the Project's initial three-year implementation phase is valued at US$143 million, earned on a monthly milestone payment basis, with a US$12.0 million down payment due upon financial close. The Company will also provide an operation and maintenance module valued at US$32.0 million for an additional nine-year period. In addition to the Contract, the Company expects to be retained to perform consulting services relating to the customization of dedicated applications for the sovereign client, the requirements for which, by the very nature of the product, will develop over the course of the Project, and be separately priced. The Contract is subject to the finalization of the Project's financing facility by the contracting party, with product and service delivery expected to commence during the second quarter of 2016.
  
  The twelve-year SDI program will be administered within a public-private-partnership ("PPP") framework, under the build-operate-transfer ("BOT") model, with the Company serving as the prime contractor, on a turnkey basis. The letter of award was the result of a competitive tender process during which the Company demonstrated the enabling versatility of its proprietary Orion Platform^®, the industry's first software-driven, big-data, geospatial analytics platform, capable of delivering customized solutions, at scale, to governments and commercial enterprises across multiple verticals from one unified control point. The Orion Platform is based on the Company's proprietary software, data, airborne radar collection and data fusion technologies.
  
  The sovereign client intends to use the Orion Platform for the planning, development and management of national interests, including land administration and registration (residential, commercial, industrial, and agricultural), telecommunication, transportation and power networks, natural resources exploration and production, environmental protection, defense and homeland security. The SDI program includes nationwide data acquisition, utilizing the Company's proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology, alongside satellite imagery and selective Light Detection and Ranging (LiDAR) coverage.
  
  
• On February 5, 2016, the Company announced that it had entered into amending agreements with its senior lenders, pursuant to which the maturity dates of certain promissory notes were extended for a period of ninety days. Under the terms of the agreements, the maturity dates of the following notes were amended as follows:

		Principal Amounts		Amended Maturity		Original Maturity
Note 1		US$3.0 million		Apr 9, 2016		Jan 9, 2016
Note 2		US$0.5 million		Apr 14, 2016		Jan 14, 2016

The principal amounts due under the notes, including the interest rate applied thereon, remained unchanged.

• On March 3, 2016, the Company announced that it had entered into an agreement with its senior lender, pursuant to which two of its outstanding promissory notes, which became due in February 2016, were restructured and consolidated into a new promissory note that bears interest at 15% per annum, with a maturity date of August 24, 2016. The material terms of the debt restructuring are as follows:
  • Promissory note dated February 23, 2015 ("First Note"), in the principal amount of $1,500,000, bearing interest at 25% per annum ($375,000 in accrued interest), was cancelled.
  • Promissory note dated February 24, 2015 ("Second Note"), in the principal amount of $5,800,000, bearing interest at 25% per annum, ($1,450,000 in accrued interest), was cancelled.
  • The principal amounts and accrued interest due under the First Note and the Second Note were restructured and consolidated into a new note dated March 2, 2016 (the "Restructured Note"), effective as of February 24, 2016, in the principal amount of $9,125,000, bearing interest at 15% per annum, with a maturity date of August 24, 2016.
  • The Restructured Note is secured by way of a first priority lien on all of the assets of the Company.

As of May 12, 2016, there were 100,352,002 common shares outstanding.

As of May 12, 2016, potential dilutive securities include (i) 6,709,220 outstanding share options in the Company's share option plan with a weighted average exercise price of C$0.41, 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, May 13, 2016, at 11:00 a.m. ET (9:00 a.m. MT). To participate in the call, please dial [phone] approximately 10 minutes prior to the conference call and provide conference ID 7864394. A recording of the conference call will be available through May 20, 2016. Please dial [phone] and provide pass code 7864394 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 with its secure cloud based Orion Platform^™. Through its powerful suite of software applications and proprietary development of contiguous databases that fuse volumes of GIS data into a single source, the Orion Platform is able to provide location based solutions for customers in diverse markets around the world. For more information please visit www.intermap.com.

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 year ended December 31, 2015, 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)
						March 31,	December 31,
						2016		2015
Assets
Current assets:
	Restricted cash					$91		$801
	Amounts receivable					1,319		2,283
	Unbilled revenue					88		11
	Prepaid expenses					243		295
						1,741		3,390
Property and equipment						1,757		1,922
					$	3,498	$	5,312
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities				$	6,942	$	6,872
	Current portion of notes payable					16,567		9,087
	Current portion of project financing					1,143		1,121
	Current portion of deferred lease inducements					74		101
	Unearned revenue					391		467
	Warrant liability					1,957		2,085
	Income taxes payable					3		5
	Obligations under finance leases					42		75
	Current portion of other long-term liabilities					367		158
						27,486		19,971
Long-term notes payable						7,300		7,300
Long-term project financing						174		174
Deferred lease inducements						165		162
Obligations under finance leases						31		34
Other long-term liabilities						-		92
						35,156		27,733
Shareholders' deficiency:
	Share capital					196,409		196,409
	Accumulated other comprehensive income					(81)		(102)
	Contributed surplus					11,635		11,578
	Deficit					(239,621)		(230,306)
						(31,658)		(22,421)
					$	3,498	$	5,312

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 ended March 31,		2016		2015
Revenue		$	1,438	$	956
Expenses:
	Operating costs		3,933		4,658
	Depreciation of property and equipment		214		242
	Amortization of intangible assets		-		13
			4,147		4,913
Operating loss			(2,709)		(3,957)
Gain on disposal of equipment			-		47
Change in fair value of derivative instruments			128		29
Financing costs			(6,624)		(1,120)
Financing income			5		4
(Loss) gain on foreign currency translation			(111)		138
Loss before income taxes			(9,311)		(4,859)
Income tax expense:
	Current		(4)		(20)
	Deferred		-		-
			(4)		(20)
Net loss for the period		$	(9,315)	$	(4,879)
Other comprehensive loss:
Items that are or may be reclassified subsequently to profit or loss:
	Foreign currency translation differences		21		(57)
Comprehensive loss for the period		$	(9,294)	$	(4,936)
Basic and diluted loss per share		$	(0.09)	$	(0.05)
Weighted average number of Class A common
	shares - basic & diluted	100,237,372		91,782,665

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Changes in Shareholders' Deficiency
(In thousands of United States dollars)
		Share Capital		Contributed Surplus		Cumulative Translation Adjustments		Deficit		Total
Balance at December 31, 2014		$	194,377	$	11,395	$	(57)	$	(212,152)	$	(6,437)
Comprehensive loss for the period			-		-		(57)		(4,879)		(4,936)
Share-based compensation			-		96		-		-		96
Balance at March 31, 2015		$	194,377	$	11,491	$	(114)	$	(217,031)	$	(11,277)
Comprehensive gain (loss) for the period			-		-		12		(13,275)		(13,263)
Share-based compensation			30		198		-		-		228
Exercise of warrants			1,004		-		-		-		1,004
Exercise of options			57		(22)		-		-		35
Note conversion			556		(16)		-		-		540
New warrant issuance			385		-		-		-		385
Deferred tax effect of convertible note			-		(73)		-		-		(73)
Balance at December 31, 2015		$	196,409	$	11,578	$	(102)	$	(230,306)	$	(22,421)
Comprehensive gain (loss) for the period			-		-		21		(9,315)		(9,294)
Share-based compensation			-		57		-		-		57
Balance at March 31, 2016		$	196,409	$	11,635	$	(81)	$	(239,621)	$	(31,658)

INTERMAP TECHNOLOGIES CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of United States dollars)
For the three months ended March 31,						2016			2015
Cash flows provided by:
Operating activities:
	Net loss for the period					$	(9,315)		$	(4,879)
	Adjusted for the following non-cash items:
		Depreciation of property and equipment					214			242
		Amortization of intangible assets					-			13
		Share-based compensation expense					173			110
		Gain on disposal of equipment					-			(47)
		Amortization of deferred lease inducements					(38)			(35)
		Change in fair value of derivative instruments					(128)			(29)
		Financing costs					6,624			1,120
		Current income tax expense					4			20
		Interest paid					(3)			(4)
		Income tax paid					(6)			(9)
	Changes in working capital:
		Amounts receivable					973			416
		Work in process and other assets					(25)			85
		Accounts payable and accrued liabilities					1,015			149
		Unearned revenue and deposits					(76)			(18)
		Loss (gain) on foreign currency translation					(35)			425
							(623)			(2,441)
Investing activities:
	Purchase of property and equipment						(49)			(34)
							(49)			(34)
Financing activities:
	Proceeds from notes payable						-			2,000
	Issuance costs of convertible notes and notes payable						-			(74)
	Proceeds from reimbursable project funding						-			46
	Decrease in restricted cash						710			-
	Repayment of obligations under finance lease						(39)			(32)
							671			1,940
Effect of foreign exchange on cash							1			(2)
Decrease in cash and cash equivalents							-			(537)
Cash and cash equivalents, beginning of period							-			537
Cash and cash equivalents, end of period						$	-		$	-

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]