DENVER, May 19, 2015 — Intermap Technologies Corporation (“Intermap” or the “Company”) today reported financial results for the first quarter ended March 31, 2015. A conference call will be held today, May 15th, at 5:00 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 $1.0 million for the first quarter of 2015, compared to $2.1 million recorded in the same period of 2014. Operating loss for the first quarter of 2015 and 2014 was $4.0 million in each period. First quarter adjusted EBITDA for 2015 and 2014, a non IFRS financial measure, was a loss of $3.6 million in each period. Adjusted EBITDA excludes restructuring costs, 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.
“Our focus for the quarter continued to be on further development of our 3DBI® software platform and the pursuit of an anticipated Spatial Data Infrastructure (“SDI”) contract,” said Todd Oseth, President & CEO of Intermap. “Notable progress was achieved on both fronts with a concentration on the analytics portion of our Orion Platform™. Our platform based approach to solving geospatial problems allows each of our customers to customize their geospatial related requirements in a rapid manner, eliminating the need for lengthy development times that would otherwise be required in non-platform based software applications. We believe this approach is key to attracting new customers that have never had available to them this type of flexibility, speed and power.”
Mr. Oseth added, “In addition to the progress on our 3DBI software platform, which is the key component driving our SDI opportunities, we furthered our progress towards closing SDI contracts during the quarter. As we’ve communicated previously, we have been pursuing numerous SDI opportunities throughout 2014 and this pursuit has continued into this year. We had planned on signing at least one SDI contract by the end of last year, which we did not, but they are progressing well at this time. Some of these opportunities have been in development for the past few years and are very complex in nature. Frequently, the governments we’re working with have multiple ministries and approval levels involved and we must work through all of them to ultimately receive final approval and close a contract. The complexities involved dictate the prolonged periods required to close any of these SDI contracts. Our communication remains the same; we believe we are nearing closure on certain of these opportunities.”
Consolidated revenue for the first quarter of 2014 totaled $1.0 million and included (i) $0.3 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 2014, consolidated revenue totaled $2.1 million and included (i) $0.9 million in mapping services, (ii) $0.4 in professional services, (iii) $0.6 million in data licensing, and (iv) $0.2 million in 3DBI software licensing. Amounts receivable and unbilled revenue at March 31, 2015 was $1.2 million, compared to $1.5 million at December 31, 2014.
For the first quarter of 2015, personnel expense was $3.0 million, compares to $3.2 million last year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.
For the first quarter of 2015, purchased services and materials expense was $1.1 million, compared to $1.6 million recognized during the same period last year. The decrease in this category of expense is primarily due to decreases in subcontractor expenses associated with the Company’s 3DBI software development, as subcontractors were converted to full-time employees during the year. 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 cash position of the Company at March 31, 2015 (cash and cash equivalents) was $Nil, compared to $0.5 million at December 31, 2014. Working capital was negative $6.1 million at March 31, 2015, compared to negative $8.7 million at December 31, 2014 (see “Intermap Reader Advisory” below). Subsequent to the close of the first quarter the Company arranged an aggregate of $4.0 million in debt financing.
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
First Quarter Business Highlights
As of May 15, 2015, there were 91,782,665 common shares outstanding.
As of May 15, 2015, potential dilutive securities include (i) 7,367,400 outstanding share options in the Company’s share option plan with a weighted average exercise price of C$0.46, and (ii) 27,371,150 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.
Intermap will host a conference call today, May 15, 2015, at 5:00 pm ET (3:00 pm MT). To participate in the call, please dial +1-647-427-7450+1-647-427-7450 approximately 10 minutes prior to the conference call and provide conference ID 39755918. A recording of the conference call will be available through July 31, 2015. Please dial +1-416-849-0833+1-416-849-0833 and provide pass code 39755918 to listen to the rebroadcast. The call will also be available on Intermap’s website at http://www.intermap.com/investors for replay.