All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $6.4 million for the third quarter of 2013, compared to $8.0 million recorded in the same period of 2012. Net loss for the second quarter of 2013 was $0.5 million, or ($0.01) per share, compared to net income of $0.4 million, or $0.01 per share, for the third quarter of 2012. Third quarter adjusted EBITDA, a non IFRS financial measure, was $0.6 million, compared to adjusted EBITDA of $2.5 million for the same period in 2012. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
"We're pleased to report our sixth quarter of positive or breakeven adjusted EBITDA as our expense management has lowered our breakeven levels," said Todd Oseth, President & CEO of Intermap. "On a year-to-date basis, our financial performance shows revenue growth, lower operating expenses, improved bottom line performance, and improved adjusted EBITDA margin over last year at this time. The improved operating results for the first three quarters of the year are coupled with a stronger balance sheet where working capital has more than tripled from $1.9 million at year-end to $6.1 million."
Contract services revenue in the second quarter increased to $5.4 million from $4.1 million in the year ago quarter, and data licensing revenue decreased to $0.9 million from $3.9 million in the year ago quarter. As of September 30, 2013, the Company's contract backlog of $3.9 million consisted of $3.3 million in contract services and $0.6 million in data licensing revenue.
During the third quarter of 2013, contract services revenue was recognized primarily from two contracts, one in Southeast Asia and one in North America in the amounts of $2.4 million and $3.0 million, respectively. For the same period in 2012, contract services revenue was recognized primarily from a single contract in North America in the amount of $3.9 million. The comparable decrease in data licensing revenue during the third quarter of 2013 was primarily the result of one significant sale from the Company's NEXTMap® dataset, which generated $2.9 million in revenue during the third quarter of 2012, while there were no significant data licensing contracts that generated similar amounts of revenue during the third quarter of 2013.
For the third quarter 2013, personnel expense was $3.0 million, a 2% decrease from $3.1 million for same period last year. The decrease was primarily due to a change in the mix of wage earners and a decrease in non-cash compensation.
For the third quarter 2013, purchased services and materials expense was $1.9 million, a 5% increase from $1.8 million for the same period last year. The increase in this category of expense is primarily related to an increase in job and subcontractor expenses associated with the Company's airborne radar data collection activities during the period. The stage of progress on each radar data collection contract and the individual requirements and logistics associated with radar collection efforts can create expense variations between reporting periods. Purchased services and materials includes (i) aircraft related costs including jet fuel and aircraft maintenance; (ii) professional and consulting costs; (iii) third-party support services related to the acquisition, processing and editing of the Company's airborne data collection activities; and (iv) software expenses (including maintenance and support).
The cash position of the Company at September 30, 2013 (cash and cash equivalents) was $3.2 million, compared to $2.1 million at December 31, 2012. Amounts receivable and unbilled revenue at September 30, 2013 was $7.5 million, compared to $8.4 million at December 31, 2012. Working capital increased to $6.1 million at September 30, 2013, compared to $1.9 million at December 31, 2012 (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
- The Company announced a $3.5 million contract for an airborne radar mapping services solution contract. Under the terms of the contract, Intermap will use its IFSAR radar technology to collect orthorectified radar imagery and high resolution elevation data to enhance the customer's existing geospatial map database. The new dataset will be used for improved disaster planning, resource management, security interests, and infrastructure planning. The project commenced in July and the final deliveries of the dataset are expected to be substantially complete by the end of the first quarter 2014.
- Intermap announced a $1.0 million contract from a repeat customer for Phase II of a geospatial professional services project initiated in 2011. This follow-on contract illustrates Intermap's sensor agnostic approach, whereby LiDAR and digital aerial photo will be the sensors used to acquire new data under the terms of the contract. Phase I of the project utilized Intermap's proprietary IFSAR radar based NEXTMap data for the initial project planning to create a base model. The final fused database will be used for infrastructure design and management for a major utility corridor in the western United States. Work on the project commenced in September and the final deliverables are expected to be complete during the second quarter of 2014.
- Intermap introduced AdPro v3.0 for Media Buyers, the first Software-as-a-Service (SaaS) application specifically designed for creative agencies and media buyers to evaluate the advertising potential of any Out-of Home (OOH) advertising location. Valuable information can be rapidly extracted from fused layers of data in Intermap's database enabling an agency to understand and measure the drivers of a successful location-based advertising campaign including area demographics, proximity to points of interest, traffic analysis, exposure time, and viewing approach. This information is then applied to the placement and value of static billboards, digital billboards, posters, city walls, bus shelters, urban furniture, shopping malls, retail locations, sports arenas, concert venues, and street corners.
- The Company announced the availability of NEXTMap® World 30 v2.0, the world's most accurate complete global terrain product. This latest version of the NEXTMap World 30 product is up to three times more accurate than competing global Digital Elevation Models (DEM) such as NASA's Shuttle Radar Topographic Mission (SRTM) data and Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) Global Digital Elevation Model (GDEM). It integrates seamlessly with Intermap's recently announced Orion Platform™ and provides a foundation data layer for the Company's web-based 3D Business Intelligence (3DBI ® ) applications. NEXTMap World 30 v2.0 has removed errors native to the ASETER GDEM v2 data in over 3,000 one-degree tiles north of 60 degrees latitude. Additionally, the overall vertical accuracy of v2.0 has been improved by over 1- centimetre to a Root Mean Square Error (RMSE) of just 7 meters globally.