All amounts in this news release are in United States dollars unless otherwise noted.
Intermap has achieved two of its most important milestones to date with the entire NEXTMap Europe dataset now commercially available, and the airborne collection portion of its NEXTMap USA program now complete. The NEXTMap USA dataset is in the final processing phase and scheduled to be commercially available in its entirety in early 2010.
“It was very gratifying to enter the final processing stage for both of our NEXTMap programs in the first quarter,” said Brian Bullock, president and CEO of Intermap Technologies. “The collection phase of the NEXTMap initiatives was a Herculean effort, demanding focus and diligence from our team, and patience and faith from our investors. For a small company to have completed such an enormous undertaking is extraordinary. In less than nine months, customers will have access to the most uniform, accurate, and complete 3D maps of Western Europe and the United States in existence.”
NEXTMap USA data collection was completed on March 16, 2009, encompassing approximately 8.0 million square kilometers of data (3.1 million square miles) of the contiguous United States and Hawaii. NEXTMap USA will ultimately generate an elevation dataset at unprecedented accuracy and detail that includes 3D digital terrain models, digital surface models, contours, 3D road centerline geometries, and other high-resolution geospatial products as part of the Company’s proactive mapping program.
NEXTMap Europe was completed on April 30, 2009 and is now commercially available. The NEXTMap Europe data library contains approximately 2.4 million square kilometers (927,000 square miles) of digital terrain maps, including complete nationwide datasets for Austria, Belgium, Czech Republic, Denmark, France, Germany, Great Britain, Ireland, Italy, the Netherlands, Portugal, Spain, and Switzerland.
For the first quarter of 2009, Intermap reported total revenue of $5.5 million, as compared to $7.7 million for the first quarter of 2008. At quarter-end, there remained $15.5 million in revenue to be recognized on existing contracts as they are completed in future periods.
Multi-client data library (“MCDL”) license revenue was $1.2 million, compared to $1.8 million for the same period in 2008. For the first quarter in 2009, approximately 68% of the MCDL license revenue was associated with the NEXTMap USA program, 30% was associated with the NEXTMap Europe program, and 2% was associated with the Company’s Asia dataset.
First quarter contract services revenue was $4.3 million, as compared to $5.9 million for the same period in 2008. The outlook for contract services revenue for the remainder of 2009 is positive as Intermap’s Federal Services Inc. subsidiary received an $11.3 million contract during the first quarter. Collection of data on this contract is expected to begin during the second quarter of this year with delivery of the final map products to the client expected to occur during the second half of 2009.
Operations expense for the quarter ended March 31, 2009 totaled $1.7 million compared to $2.1 million for the same period in 2008. The decrease was primarily the result of the deferral of airborne collection costs associated with un-contracted data collection efforts during the first quarter that are expected to generate revenue in future periods.
Total cash expenditures are expected to decrease through 2009 as the airborne data collection portion of NEXTMap USA was recently completed, which should significantly reduce cash requirements for the remainder of 2009. Cash outflows relating to NEXTMap in 2009 are expected to decrease by over $10 million as a result. Investment in final processing of the datasets continues, with all of the NEXTMap Europe dataset now commercially available and NEXTMap USA expected to be commercially available early in 2010.
Sales, general and administrative (“SG&A”) expense in the first quarter was $6.2 million, compared to $6.3 million for the same period in 2008. SG&A includes costs of personnel in administration, business development (including automotive, consumer electronics, and insurance risk management), sales, and marketing.
Adjusted EBITDA, a non-GAAP measure, for the quarter ended March 31,
2009 was a loss of $2.9 million, as compared to a loss of $1.0 million
for the same period in 2008. The difference in adjusted EBITDA is
primarily attributable to the decrease in revenue of $2.2 million in the
first quarter in 2009, compared to the same period in 2008. The term
EBITDA consists of net income (loss) plus interest, taxes, depreciation,
and amortization. Adjusted EBITDA excludes gain (loss) on foreign
currency translation, charges related to the disposal of assets, and
stock based compensation expense. Adjusted EBITDA is included as a
supplemental disclosure because management believes that such
measurement provides useful information regarding the Company’s
financial performance and will increase in importance as investors focus
on cash flow from operations in future periods.