Intermap Technologies Reports 2016 First Quarter Financial Results

(PRNewswire) —  (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 13th, 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:

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

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