Q3 Revenue Increases 4X Year-Over-Year to $8.1Million
Q3 Adjusted EBITDA Positive $1.5 Million
DENVER — (BUSINESS WIRE) — November 8, 2011 — Intermap Technologies Corporation (TSX: IMP) (“Intermap” or the “Company”) today reported financial results for the third quarter ended September 30, 2011. A conference call will be held today at 4:30 p.m. Eastern Time to discuss the results.
The financial information presented herein has been prepared on the basis of International Financial Reporting Standards (IFRS) for interim financial reporting and is expressed in United States dollars, unless otherwise noted. The amounts in this earnings release, including the interim financial statements for the three and nine months ended September 30, 2010, have been restated to reflect the adoption of IFRS, with effect from January 1, 2010.
Revenue for the third quarter of 2011 was $8.1 million, a 419% increase from $1.6 million recorded in the same period of 2010. $3.2 million was attributable to the Company’s contract services business and $4.9 million was attributable to the licensing of the Company’s NEXTMap® database, which now includes data from LiDAR, satellite imagery, and 3D city models. As of September 30, 2011, there remained $16.8 million in revenue from existing contracts ($6.3 million in contract services and $10.5 million in data licenses contracts) to be recognized beginning in the fourth quarter of 2011, but primarily during the first three quarters of 2012. Subsequent to the close of the third quarter, Intermap announced the receipt of additional contracts for NEXTMap data and related services totaling more than $2.0 million. Revenue will be recognized on these contracts beginning in the fourth quarter of this year and subsequent deliveries are scheduled to occur throughout 2012.
“We’ve now achieved more revenue in 2011 than the Company did in all of 2010, and we will enter 2012 with a significant amount of revenue from existing contracts yet to be recognized in future periods,” stated Todd Oseth, Intermap’s president and CEO. “A new Intermap is beginning to emerge and we believe we are turning the business around by driving three primary revenue streams for the Company: NEXTMap data licensing, 3D business intelligence applications (3D-BI) and mapping services. Our proposal flow continues to grow in these three areas and we believe a meaningful amount of new sales will be the result in future periods.”
During the third quarter, Intermap also launched its Web-based subscription service for NEXTMap 3D terrain products, accessible through Web browsers and popular desktop geographic information systems (GIS) software applications. Delivered via cloud-computing, Web Services offers a suite of hosted tools that simplifies the ability for users to quickly and easily perform terrain analysis based on an area of interest such as a county or an entire state.
Additionally, the Company is developing new low cost, market specific applications that will integrate the NEXTMap database with third party geospatial information including LiDAR, satellite imagery, aerial photography and census data. This will allow the Company to expand existing markets and enter new markets including insurance risk assessment, mobile data services and advertising.
“Earlier this year we modified our marketing approach, our product offerings, and our pricing structure to make the purchase of our NEXTMap information more affordable to a wider array of potential users,” said Mr. Oseth. “We now have a simplified suite of products that our customers can easily understand and our partners can easily sell. These simplified products, coupled with our new market specific applications, create valuable location based information (LBI) that supports our 3D-BI geospatial focus. The success of these changes is beginning to take hold and is a contributing reason for the four-fold increase in our third quarter revenues over last year.”
Total operating costs in the third quarter were $6.9 million, a 20% decrease compared to $8.6 million for the third quarter of 2010. The Company has made significant workforce reductions in 2011 to help reduce its overall operating costs. Consolidated active employee headcount was 261 at September 30, 2011 (including 148 in the Company’s low-cost edit facility in Jakarta, Indonesia). This is a 54% decrease from 568 people at September 30, 2010, which included 378 in the Company’s Jakarta facility. The net impact on total expenses (after severance and termination related costs) of the workforce reductions made during the nine-month period ending September 30, 2011, is approximately $6.8 million on an annualized basis.
Adjusted EBITDA for the third quarter of 2011, a term not defined under IFRS, was positive $1.5 million, an improvement over the third quarter of 2010, which was negative $5.8 million. This quarter is the first quarter of positive adjusted EBITDA for the Company since the third quarter of 2009. The Company reported a third quarter 2011 net loss of $0.8 million, or $(0.01) per share, compared to a net loss of $51.1 million, or ($0.85) per share for the third quarter of 2010, which included an asset impairment charge of $39.1 million.
For the nine months ended September 30, 2011, Intermap reported an 88%
increase in revenues to $19.4 million, from $10.3 million for the same
period in 2010. Contract services revenue for this period was $8.6
million, a 148% increase from $3.5 million in the same period in 2010,
and NEXTMap licensing revenue was $10.7 million, an increase of 57% from
$6.8 million for the same period in 2010.