CALGARY, Alberta—(BUSINESS WIRE)—May 14, 2007— Intermap Technologies Corporation (the "Company") (TSX: IMP) (AIM:IMAP), today reported financial results for the first quarter ended March 31, 2007. A conference call will be held today at 11:00 am EDT to discuss the results.
All amounts in this news release are in U.S. dollars unless
For the first quarter, Intermap reported an increase in total
revenue to $6.2 million, as compared to total revenue of $2.1 million
for the same period in 2006. The increase was the result of revenue
recognized on a number of contract services projects. The contract
services revenue component of total revenue in the first quarter
increased to $5.2 million, compared to $1.0 million for the first
quarter of 2006, reflecting an increase in fee-for-service work in
The Multi-Client Data License revenue component of total revenue
for the quarter was constant year-over-year at $1.1 million.
Approximately 76% of the MCDL revenue was associated with the
Company's NEXTMap USA program, primarily in the areas of California,
Texas and Arizona.
Cost of services expense for the first quarter ended March 31,
2007 increased to $1.3 million, compared to $0.8 million for the same
period in 2006, reflecting an increase in the costs associated with
increased contract services work and preparation costs associated with
future mapping activities.
Sales, general and administrative expenses for the first quarter
were $5.3 million, compared to $3.3 million for the same period in
2006. The increase was related to the overall expansion of the
Company's sales, marketing and business development to support its
NEXTMap USA and NEXTMap Europe programs.
Amortization expense of the multi-client data library in the first
quarter increased to $0.9 million, from $0.6 million for the same
period in 2006, as a result of the increase in amortization on the
NEXTMap USA dataset. Amortization of the NEXTMap USA dataset totaled
$3.1 million for the twelve month period ended December 31, 2006. When
factoring out the significant depreciation and amortization incurred
during the period, the Company reported negative EBITDA of $1.3
million for the first quarter of 2007.
For the first quarter of 2007, Intermap reported a net loss of
$2.8 million, or ($0.08) per share, compared to a net loss of $2.7
million, or ($0.08) per share for the same period in 2006.
Cash and cash equivalents at March 31, 2007 were $39.7 million, as
compared with $48.2 million at December 31, 2006. The Company's
working capital was $44.0 million, compared with $51.0 million at
December 31, 2006.
"During the first quarter we collected an additional 456,000
square kilometers of data for our NEXTMap USA project, bringing the
total collected to date to 2.5 million square kilometers," stated
Brian Bullock, president and CEO of Intermap. "We also increased our
processing resources for the enormous amount of NEXTMap data being
collected. In addition, during the first quarter we announced a record
number of new contract services awards amounting to approximately
$11.0 million. One of our aircraft data collection systems was
utilized for contract services work during Q1 and will again in Q2,
providing additional cash flow as the projects are completed. This
assists in funding our NEXTMap initiatives. The other three aircraft
will collect a record amount of NEXTMap data in 2007."
MultiMedia Computer s.r.o. Acquisition
On March 1, 2007, Intermap acquired the shares and ongoing
operations of MultiMedia Computer s.r.o. (MMC). The acquisition
enables Intermap to enhance its product offerings from strictly data
sales to solution-based sales for specific markets.
"The acquisition of MMC allows us to deliver complete geospatial
solutions to our customers and partners within a variety of diverse
markets. For example, MMC's technological expertise will help propel
Intermap into not only the flood insurance market, but also into the
emerging recreational PND and advanced driver assistance systems
arenas. Additionally, MMC will support our continued efforts to bundle
progressive solutions for existing enterprise and government markets,"
commented Mr. Bullock.
Web-based 3D Visualization
The enormous growth of Web-based mapping applications is driving
an increasing demand for higher quality data that can both improve the
user experience and enable new higher value applications. Ultimately,
the quality of the data is what will separate providers in this space.
In February 2007, Intermap announced an agreement to provide
Microsoft Corp. with its NEXTMap Britain digital elevation data for
use within Microsoft's Virtual Earth platform. The agreement enables
Microsoft to create and deliver a Live Search Maps product powered by
the most current and accurate digital terrain model of Great Britain.
NEXTMap Europe Progress
In 2006, Intermap announced its intention to accelerate its
NEXTMap Europe project with the collection of the entire dataset
expected to be completed by the end of 2007. Driven by demand within
the European automotive, government, and insurance sectors, the final
processing and editing of the project is expected to be complete and
available for sale shortly thereafter in 2008.
NEXTMap Europe calls for the mapping of 17 European countries,
including Austria, Belgium, Czech Republic, Denmark, England, France,
Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern
Ireland, Portugal, Spain and Switzerland. England, Scotland, and Wales
have already been completed and the data collection of Germany was
completed in 2006. Priority of data collection in Europe will be given
to areas with the strongest customer demands. Once completed, these
datasets will be the most accurate 3D digital maps of Europe in
During 2006, approximately 487,000 square kilometers of data was
collected in Europe including all of Germany which is the fourth
country mapped in its entirety under the Company's NEXTMap Europe
program. NEXTMap Germany will be available for licensing in 2007. "As
individual countries are completed during 2007 in Europe, we expect
additional revenue opportunities will develop that will increase the
overall financial performance of the Company," stated Mr. Bullock. The
Company processed 138,000 square kilometers of NEXTMap Europe data in
the first quarter. No additional data was collected in Europe during
the first quarter of 2007.
NEXTMap USA Progress
Intermap continues to progress on its largest project, NEXTMap
USA. The project includes terrain elevation and imagery data accurate
to one-meter or better, covering nearly eight million square
kilometers of the United States.
Since the inception of the project, approximately 2.5 million
square kilometers of data has been collected. The Company expects to
have the collection portion of the NEXTMap USA project completed by
the end of 2008. The net book value of the NEXTMap USA data as of
March 31, 2007 was $30.8 million.
"We are continuing the ramp-up of our NEXTMap USA project with
full capacity expected to be in place during the second quarter," said
Mr. Bullock. "We expect to complete the collection of the project by
the end of 2008 with 100% of the fully processed and edited data
completed and ready for sale during 2009. As part of this ramp-up, an
additional Learjet aircraft was purchased during 2006 and a second
King Air aircraft was leased. Both are now at work on NEXTMap USA."
Currently, Intermap has data available off-the-shelf for 512
counties in the U.S. The Company expects a continued increase in
license revenues in 2007 as marketing activities generate interest
from new NEXTMap USA customers. Through March 31, 2007, total
cumulative license revenue for NEXTMap USA data was approximately $8.2
Detailed financial results for the quarter and management's
discussion and analysis can be found on SEDAR, at www.sedar.com.
Conference Call Details
A slide presentation accompanies Intermap's conference call on May
14 at 11:00 a.m. ET (9:00 a.m. MT, 4:00 p.m. GMT). Please download the
presentation "IMP_Q1_Quarterly_Call_May_07" to your computer in
advance of the call from ftp1.intermaptechnologies.com (copy and paste
the file into your browser).
Username: Client 18
Password: qreports1 (Password is case sensitive)
For security reasons this FTP site will be active until May 31,
To participate in the call, please dial 416-644-3417 or
1-800-732-9303 approximately 10 minutes prior to the conference call.
A recording of the conference call will be available through May 21,
2006. Please dial 416-640-1917 or 1-877-289-8525 and provide the
password 21232148# to listen to the rebroadcast. An audio webcast of
the teleconference will also be available on Intermap's website.
About Intermap Technologies
Intermap enables customers to facilitate better decision-making
and create applications for numerous commercial, governmental,
military, and consumer products through the purchase of high quality
and affordable 3D geometric datasets. The Company is proactively
remapping entire countries and building unprecedented national
databases, called NEXTMap, consisting of highly accurate digital
geometric maps that include elevation data.