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.