Intermap Technologies Reports 2017 Financial Results and New Task Order

DENVER, Feb. 22, 2018 /CNW/ - (TSX: IMP) (ITMSF:BB) – Intermap Technologies Corporation ("Intermap" or the "Company") reported a 174% increase in 2017 revenue and a $11.6 million improvement in cash from operations, compared to 2016. In addition, it reported positive net income for the fourth quarter.

The Company also announced today the receipt of a new $2.0 million government task order for the creation of digital elevation and bare earth terrain models. The Company is increasingly providing its multi-sensor solutions and data management tools through web services, software and analytics. Including this announcement, the Company has announced $3.7 million of government task orders since year end 2017, which are to be completed in 2018.

"These results reflect across-the-board growth in geospatial content, software and solutions, delivered where, when, and how they are needed. Intermap serves better analytics and answers to both our government and commercial customers all over the globe," commented Patrick Blott, Chairman & CEO of Intermap. "We will continue investing strategically in our people, technology, proprietary data, and client relationships, to deliver cutting-edge geospatial solutions that are responsive and financial returns that are competitive."

All amounts in this news release are in United States dollars, unless otherwise noted.

Consolidated revenue for the year ended December 31, 2017 totaled $19.3 million, compared to $7.0 million recorded in 2016. Approximately 65% of consolidated revenue was generated outside the United States, compared to 30% for the same period in 2016.

Total revenue for the fourth quarter increased 297% to $5.9 million, compared to $1.4 million for the fourth quarter of 2016.

Operating cash flow for the year was $3.5 million, compared to an $8.1 million loss in 2016. Operating cash flow for the quarter was $0.9 million, compared to a $1.3 million loss for the same period in 2016.

Adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was positive $3.5 million for the year, compared with negative $7.2 million for 2016, a $10.7 million improvement. Fourth quarter adjusted EBITDA was positive $1.9 million, compared to negative $0.8 million for fourth quarter of 2016.

For the fourth quarter of 2017, Intermap reported net income of $0.5 million, compared to a net loss of $0.2 million for the same period in 2016.

The Company finished the year with $6.4 million of cash and positive working capital of $0.3 million, compared to cash of $6.5 million and a working capital deficit of $3.8 million for 2016.

In addition to generating cash throughout the year, the Company invested $3.9 million in new sensors, software, and other proprietary technologies, compared to $0.3 million of investment during 2016. Total assets increased to $11.8 million, up from $9.0 million at the end of 2016. The Company's total assets exclude its proprietary, high resolution, NEXTMap^® data library, as well as internally developed software applications, patented algorithms along with innovative approaches in artificial intelligence and machine learning-driven processing engines, risk models, and prototype sensors. Cumulative net operating loss carryforwards at the end of 2017 totaled $223 million.

Additional highlights of significant milestones achieved in 2017 include:

• The Company added an average of two insurance solutions customers each month to its software platform, and experienced a 100% renewal rate on customers eligible for renewal during the year, growing commercial subscription revenue by more than 210%
• Following extensive damage from wildfires in California, the Company received its first commercial software subscription for wildfire risk analytics
• On the government side, following an upgrade of its sensor platform, the Company completed a major data infrastructure project in Southeast Asia, and transitioned that regions business towards data solutions and enterprise data management. The Company also received its first task order to collect and process P-band radar and light detection and ranging (LiDAR) data to support foundation geo intelligence
• The Company received a patent and third party validation for its fourth, proprietary and global, digital elevation model, generated with a 1-meter posting (LE 90 accuracy), capable of producing high resolution digital terrain and elevation information (first surface and bare earth) for any area of interest on the planet. This fourth generation model compliments the Company's existing proprietary, global, digital elevation models, posted at 5-meter, 10-meter, and 30-meter resolutions
• Extending its performance culture, the Company invested in senior level sales and business development talent to support its continued growth, and elevated several high performing internal business development professionals, while achieving a 9% reduction in over-all employee costs, and a 30% reduction in facilities expense
• The Company also commenced a complete upgrade of its internal processing, data management, optimization and software architecture, incorporating graphic processing units; auto-classification, automated feature extraction and data authoring; artificial intelligence and machine learning algorithms; and a patented intelligent resolution improvement process.

The Company's Annual General and Special Meeting of Shareholders is scheduled for March 15, 2018 in Calgary, Alberta. The materials are available on SEDAR at: www.sedar.com. In advance of the meeting, the Company has entered into a voting agreement with Vertex One Asset Management ("Vertex"), in which Vertex intends to support the matters to be put before shareholders at the meeting. 

The Company's consolidated financial statements and management's discussion and analysis will be filed on SEDAR at: www.sedar.com. 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.

Non-IFRS Measures

Adjusted EBITDA is not a recognized performance measure under IFRS 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).

		Three months ended					Twelve months ended
(UNAUDITED)		December 31,					December 31,
U.S. $ millions		2017			2016		2017			2016
Net income (loss)		$	0.5		$	(0.2)	$	(1.2)		$	(15.3)
	Financing costs	0.6			1.1		2.5			10.1
	Income tax recovery	0.1			(2.4)		(0.1)			(2.4)
	Depreciation of property and equipment	0.3			0.2		0.9			0.8
	EBITDA	$	1.5		$	(1.3)	$	2.1		$	(6.8)
	Non-recurring payments	0.3			0.2		0.8			0.2
	Change in value of derivative instruments	-			(0.5)		(0.1)			(1.9)
	Restructing costs	0.1			0.7		0.2			0.9
	Share-based compensation	0.1			0.1		0.3			0.3
	(Gain) loss on foreign currency translation	(0.1)			-		0.2			0.1
	Adjusted EBITDA	$	1.9		$	(0.8)	$	3.5		$	(7.2)

About Intermap Technologies

Headquartered in Denver, Colorado, Intermap (www.intermap.com) is an industry leader in geospatial intelligence solutions. These geospatial solutions are used in a wide range of applications including, but not limited to, location-based information, risk assessment, geographic information systems, engineering, utilities, global positioning systems, oil and gas, renewable energy, hydrology, environmental planning, land management, wireless communications, transportation, advertising, and 3D visualization.  Intermap generates revenue from three primary business activities, comprised of i) data acquisition and collection, using proprietary, multi-frequency,  radar sensor technologies, ii) value-added data products and services, which leverage the Company's proprietary NEXTMap® database, together with proprietary software and fusion technologies, and iii) commercial applications and solutions, including a webstore and software sales targeting selected industry verticals that rely on accurate high resolution elevation data. The Company is a world leader in geospatial data management and processing, including fusion, analytics, and orthorectification, and has decades of experience aggregating data derived from a number of different sensor technologies and data sources. For more information please visit www.intermap.com.

Intermap Reader Advisory

Certain information provided in this news release constitutes forward-looking statements, including the Company's profitability and revenue generating activities. 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. 

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
UNAUDITED

(In thousands of United States dollars)

			December 31,		December 31,
			2017		2016
Assets
Current assets:
	Cash		$	6,363	$	6,527
	Amounts receivable		521		600
	Unbilled revenue		65		30
	Prepaid expenses		359		409
			7,308		7,566
Property and equipment			4,460		1,457
			$	11,768	$	9,023
Liabilities and Shareholders' Deficiency
Current liabilities:
	Accounts payable and accrued liabilities		$	4,011	$	3,555
	Current portion of notes payable		-		5,864
	Current portion of project financing		1,303		1,214
	Current portion of deferred lease inducements		30		24
	Unearned revenue		1,604		469
	Warrant liability		-		137
	Income taxes payable		2		3
	Obligations under finance leases		10		49
	Current portion of other long-term liabilities		-		100
			6,960		11,415
Long-term notes payable			26,496		21,837
Long-term project financing			191		168
Deferred lease inducements			120		133
Obligations under finance leases			14		24
			33,781		33,577
Shareholders' deficiency:
	Share capital		199,634		196,686
	Accumulated other comprehensive income		(143)		(146)
	Contributed surplus		25,242		26,955
	Deficit		(246,746)		(248,049)
			(22,013)		(24,554)
			$	11,768	$	9,023

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Profit and Loss and Other Comprehensive Income
UNAUDITED

(In thousands of United States dollars, except per share information)

For the years ended December 31,			2017		2016
Revenue			$	19,304	$	7,049
Expenses:
	Operating costs		16,828		14,781
	Restructuring costs		244		941
	Depreciation of property and equipment		924		837
			17,996		16,559
Operating income (loss)			1,308		(9,510)
Gain on disposal of equipment			3		-
Change in fair value of derivative instruments			137		1,948
Financing costs			(2,538)		(10,069)
Financing income			-		7
Loss on foreign currency translation			(214)		(105)
Loss before income taxes			(1,304)		(17,729)
Income tax expense:
	Current		(51)		(14)
	Deferred		200		2,458
			149		2,444
Net loss for the period			$	(1,155)	$	(15,285)
Other comprehensive loss:
Items that are or may be reclassified subsequently to profit or loss:
	Foreign currency translation differences		3		(44)
Comprehensive loss for the period			$	(1,152)	$	(15,329)
Basic and diluted loss per share			$	(0.08)	$	(1.33)
Weighted average number of Class A common
	shares - basic & diluted		15,182,474		11,517,236

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Changes in Shareholders' Deficiency
UNAUDITED

(In thousands of United States dollars)

	Share Capital		Contributed Surplus		Accumulated Other Comprehensive Income		Deficit		Total
Balance at December 31, 2015	$	196,409	$	11,578	$	(102)	$	(230,306)	$	(22,421)
Comprehensive loss for the period	-		-		(44)		(15,285)		(15,329)
Gain on modification of debt	-		15,063		-		-		15,063
Deferred tax effect of notes payable	-		(2,458)		-		-		(2,458)
Share-based compensation	174		359		-		-		533
Exercise of options	103		(45)		-		-		58
Balance at December 31, 2016	$	196,686	$	24,497	$	(146)	$	(245,591)	$	(24,554)
Comprehensive income (loss) for the period	-		-		3		(1,155)		(1,152)
Rights offering	2,890		-		-		-		2,890
Issuance costs	(164)		-		-		-		(164)
Gain on modification of debt	-		746		-		-		746
Deferred tax effect of notes payable	-		(200)		-		-		(200)
LTIP issuance	162		(115)		-		-		47
Share-based compensation	60		314		-		-		374
Balance at December 31, 2017	$	199,634	$	25,242	$	(143)	$	(246,746)	$	(22,013)

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
UNAUDITED

(In thousands of United States dollars)

For the years ended December 31,			2017			2016
Operating activities:
	Net loss for the period		$	(1,155)		$	(15,285)
	Adjusted for the following non-cash items:
		Depreciation of property and equipment	924			837
		Share-based compensation expense	281			289
		(Gain) loss on disposal of equipment	(3)			-
		Amortization of deferred lease inducements	26			(113)
		Deferred taxes	(200)			(2,458)
		Change in fair value of derivative instruments	(137)			(1,948)
		Financing costs	2,538			10,069
		Current income tax expense	51			14
		Interest paid	(7)			(18)
		Income tax paid	(52)			(16)
	Changes in working capital:
		Amounts receivable	89			1,679
		Other assets	15			(133)
		Accounts payable and accrued liabilities	99			(917)
		Unearned revenue	1,135			2
		Gain on foreign currency translation	(107)			(65)
Cash flows provided by (used in) operating activities			3,497			(8,063)
Investing activities:
	Purchase of property and equipment		(3,471)			(305)
	Proceeds from sale of equipment		3			1
Cash flows used in investing activities			(3,468)			(304)
Financing activities:
	Proceeds from issuance of common shares		2,890			-
	Proceeds from notes payable		-			15,000
	Repayment of notes payable		(2,890)			(617)
	Share issuance costs		(164)			(168)
	Movement from restricted cash		-			801
	Repayment of obligations under finance lease		(56)			(120)
Cash flows (used in) provided by financing activities			(220)			14,896
Effect of foreign exchange on cash			27			(2)
Increase (decrease) in cash			(164)			6,527
Cash, beginning of period			6,527			-
Cash, end of period			$	6,363		$	6,527

SOURCE Intermap Technologies Corporation

Intermap Technologies: Jennifer Bakken, Executive Vice President and CFO, [email protected], [phone]