DENVER, May 15, 2015 — (PRNewswire) — (TSX: IMP) – 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
- Intermap announced the release of a new version of its InsitePro, SaaS product that delivers location-based risk assessments to the property insurance industry. The centerpiece of this announcement is the powerful risk scoring functionality. Risk scoring provides a more complete view of location-based risk than a simple flood or earthquake zone can, allowing InsitePro to automate complex risk assessment for underwriters. Typical uses of the risk score function include:
- Selection: deciding which properties to underwrite based on quantified risk.
- Pricing: matching premium to a better understanding of risk.
- Flood model validation: using terrain features to confirm the accuracy of flood zones.
- Multi-peril analysis: developing a combined view of risk for a location.
- InsitePro's risk scoring allows users to combine flood and other perils, along with Intermap's proprietary terrain data and the users own information — such as claims history and accumulation — to deliver location-specific scores that are based on the best information available. Insurers underwriting flood can combine multiple flood models with heights above river levels and their own loss histories to create a single score based on the most relevant and complete information available to them. Those responsible for risk accumulation and reinsurance can create scores based on custom accumulation zones and policy information to understand exposure. Combining location risk with exposure creates powerful customized aggressiveness measurement that can drive pricing. Properties exposed to multiple perils, such as flood, earthquake, or wildfire, can be scored to aggregate the different perils into a single risk score.
- Intermap announced that on January 14, 2015, it completed a private placement debt financing for aggregate proceeds of US$500,000 (the "Debt Financing"). The Debt Financing matures on January 14, 2016. Simple interest is payable at maturity at an annual rate of 18.0%. In addition, the Company undertook to issue up to 6,000,000 warrants to purchase common shares of the Company of which 1,469,834 warrants were issued and the issuance of remaining balance of 4,530,166 warrants was subject to shareholder approval. The Debt Financing is subject to a prepayment right by the Company at 118% of the principal amount at any time from the date of closing, subject to a 60 day notice period. The proceeds of the Debt Financing will be used by the Company for general operating purposes. Intermap also announced that further to its press release dated December 31, 2014, it has re-priced the exercise price of 4,597,443 previously-issued warrants to C$0.08 per warrant.
- Intermap announced a non-brokered US$7.3 million debt financing (the "Debt Financing") with Vertex One Asset Management ("Vertex") of Vancouver, BC. The promissory notes granted under the Debt Financing matures 12 months from the date of issuance. Simple interest is payable at maturity at an annual rate of 25.0%. As additional consideration for the Debt Financing, the Company entered into a royalty agreement with Vertex, pursuant to which the company agreed to pay Vertex a 17.5% royalty on its net revenues. Under the terms of the financing, Vertex assumed the obligations of an outstanding $5.0 million note (plus accrued interest of $800,000 ), which was issued on February 6, 2014 , and became due on February 6, 2015 . Vertex subsequently retired the February 2014 note obligation, and the 12,367,054 conversion shares associated with the note were cancelled. The Debt Financing is subject to a prepayment right by the Company at 125% of the principal amount at any time, subject to a 30 day notice period. Intermap intends to use the net proceeds of the Debt Financing for general corporate purposes.
- On April 3, 2015 , Intermap announced that it had completed a non-brokered US$1.5 million debt financing (the "Debt Financing") with Vertex One Asset Management ("Vertex") of Vancouver, BC . The promissory note granted under the Debt Financing matures 12 months from the date of issuance. Simple interest is payable at maturity at an annual rate of 20.0%. In addition, warrants were issued to the holder of the debt entitling the holder to purchase up to 9,178,266 Common Shares at a price of C$0.09 per share ( US$0.07 per share). Under the terms of the financing, Vertex will retire an outstanding $0.5 million note, which was issued on December 26, 2014 , and became due on March 31, 2015 . Additionally, with the retirement of the note, 8,333,333 conversion shares associated with the note were cancelled. The Debt Financing is subject to a prepayment right by the Company at 120% of the principal amount at any time, subject to a 30 day notice period. The Company intends to use the net proceeds of the Debt Financing for general corporate purposes.