DENVER, March 23, 2017 /PRNewswire/ - (TSX: IMP)
(ITMSF:BB) – Intermap Technologies Corporation ("Intermap"
or the "Company") today reported financial results for the fourth
quarter and year ended December 31,
2016.
All amounts in this news release are in United States dollars, unless otherwise
noted.
During the second half of 2016, the Company undertook a number
of measures to stabilize its operations, restructure its financial
obligations, and return to profitable growth.
The Company announced changes to the Board of Directors, which
resulted in a new composition of the full Board. Additionally, the
Company announced changes in senior management and organizational
restructuring necessary to align the Company's resources with the
on-going revenue opportunities.
In December 2016, the Company
announced the restructuring of its outstanding debt agreements with
Vertex One Asset Management Inc. The restructuring included a
Bridge Loan for $6.0 million, to be
repaid with the proceeds of a Rights Offering during the first
quarter of 2017, the extension of the maturity date of all current
promissory notes to September 1, 2020
and the elimination of interest, the cash sweep and the royalty
payment obligations.
"These organizational changes and refinancing steps provided the
liquidity to execute the Company's business plan, and return to its
core strategic focus towards data acquisition, value added data
processing, and related application solutions and services,"
commented Patrick Blott, Chairman
and CEO of Intermap. In addition, the Company continued to invest
in its core risk management business, where it has seen
increased demand for risk management software and services related
to flood underwriting. The Company is seeking to become a large
participant in underwriting private flood risk, which is a growing
market segment where many large surplus and admitted carriers have
recognized the Company's unique products and have recently become
customers."
Moving into 2017, the Company announced major steps forward in
its new strategic direction. It announced a comprehensive upgrade
of its radar system, making it the most advanced commercial
multi-frequency data acquisition platform available. It announced a
task order to deploy its new system in Southeast Asia in 2017. And it added employees
to its processing operation to absorb increased demand for services
associated with these initiatives.
On February 24, 2017, the Company
announced its plans to proceed with the previously announced Rights
Offering. The Rights Offering Notice was mailed on March 2, 2017 to all shareholders of record as of
March 1, 2017. Pursuant to the Rights
Offering, one right was issued for each common share of the Company
held and each right entitles the holder to subscribe for one common
share of the Company upon the payment of the subscription price of
C$0.06 or US$0.05 per common share. An aggregate of
101,344,582 rights were issued pursuant to the Rights Offering and,
if fully subscribed and the subscription price is paid in US
dollars, would result in gross proceeds of approximately
US$5.0 million. The rights expire at
4:00 p.m. (Calgary time) on March
27, 2017. All proceeds received in connection with the
Rights Offering will be used to repay the Bridge Loan referenced
above and no proceeds will be retained by the Company. Details of
the Rights Offering are available on the Company's profile at
www.sedar.com.
Financial Review
For the fourth quarter 2016, Intermap reported total revenue of
$1.5 million, compared to
$3.2 million last year. Acquisition
services revenue in the fourth quarter was $0.9 million, compared to $0.4 million last year. Value added data revenue
was $0.4 million, compared to
$2.4 million last year. The decrease
from prior year relates to two large sales during 2015, without a
similar size transaction in 2016. Software and solutions revenue
was $0.2 million, compared to
$0.4 million last year. The decrease
from prior year relates to the timing of sales being more evenly
spread in 2016. As of December 31,
2016, there remained $1.2
million in backlog contracts to be recognized in future
periods.
For the fourth quarter 2016 and 2015, personnel expense was
$1.7 million and $2.3 million, respectively. The decrease is
primarily due to decreases in headcount on a year-over-year basis,
following the restructuring actions taken at the end of the third
quarter and beginning of the fourth quarter of 2016.
For the fourth quarter 2016, purchased services and materials
expense was $0.1 million, consistent
with the same period last year. Purchased services and materials
includes (i) aircraft related costs (ii) professional and
consulting costs (iii) third-party support services related to the
collection, processing and editing of the Company's airborne data
collection activities, and (iv) software expenses (including
maintenance and support).
Fourth quarter adjusted EBITDA, a non-GAAP and IFRS financial
measure, was negative $1.1 million,
compared with $0.2 million last year.
Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation and amortization and excludes share-based compensation
expense, fair value adjustments to derivative instruments, gain or
loss on the disposal of equipment, and gain or loss on foreign
currency translation. Adjusted EBITDA is not a recognized
performance measure under IFRS. The most directly comparable
measure to adjusted EBITDA calculated in accordance with IFRS is
net income (loss). See below for a reconciliation of the Company's
net loss to adjusted EBITDA for the fourth quarter of 2016 as
compared to 2015 and for the year ended December 31, 2016 compared to December 31, 2015.
For the year ended December 31,
2016, Intermap reported total revenue of $7.0 million, compared to $8.6 million recorded in 2015. Acquisition
services revenue for the year was $3.5
million compared to $3.8
million last year. Value added data revenue was $2.2 million compared to $3.8 million last year. The decrease from prior
year relates to two large sales during the fourth quarter of 2015,
without a similar size transaction in 2016. Software and solutions
revenue was $1.3 million compared to
$1.0 million last year.
For the year ended December 31,
2016, personnel expense was $9.4
million compared to $11.0
million last year. The year-over-year decrease in personnel
expense is primarily due to the restructuring actions taken during
the end of the third quarter and beginning of the fourth quarter of
2016.
For the year ended December 31,
2016, purchased services and materials expense was
$3.3 million compared to $3.6 million last year. The year-over-year
decrease in purchased services and materials was due primarily to
decreases in subcontractor expenses associated with software
development in 2015.
Adjusted EBITDA for the year was negative $7.5 million compared with negative $7.6 million for 2015. For the year 2016, net
loss was $17.8 million, or
($0.18) per share, compared with a
net loss of $18.1 million, or
($0.19) per share, last year.
The cash position of the Company at December 31, 2016 (cash, cash equivalents and
restricted cash) was $6.5 million,
compared to $0.8 million at
December 31, 2015. This increase in
cash at year end 2016 was primarily the result of receiving an
advance of $6.0 million pursuant to
the Bridge Loan. Amounts receivable and unbilled revenue at
December 31, 2016 was $0.6 million, compared to $2.3 million at December
31, 2015. The decrease is due to differences in the timing
of fourth quarter sales and collections. Working capital improved
to negative $3.8 million at
December 31, 2016, compared to
negative $16.6 million at
December 31, 2015. The primary reason
for the improvement in the working capital deficit was the change
in the maturity date of all the then current promissory notes which
resulted in the movement of such notes payable from current to
long-term indebtedness, the elimination of accrued interest and
royalty payment obligations and the receipt of the proceeds from
the Bridge Loan. Adjusted working capital excluding non-cash
liabilities, such as warrant and long-term incentive plan
obligations to be settled in equity and an estimate of the portion
of the $6.0 million Bridge Loan to be
converted to long-term following the conclusion of the Rights
Offering, was negative $1.2 million
at December 31, 2016 and negative
$13.4 million at December 31, 2015.
Important factors, including those discussed in the Company's
regulatory filings (www.sedar.com) could cause actual results to
differ from the Company's expectations and those differences may be
material. The Company's consolidated financial statements and
management's discussion and analysis will be filed on SEDAR at:
www.sedar.com on March 31, 2017.
About Intermap Technologies
Headquartered in Denver,
Colorado, Intermap (www.intermap.com) is an industry leader
in geospatial intelligence solutions. It is the only company
capable of fusing volumes of accurate bare earth and other
geospatial data into a single source to provide location- based
solutions for customers in diverse markets around the world. For
more information please visit www.intermap.com.
Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under
IFRS and does not have a standardized meaning prescribed by IFRS.
The term EBITDA consists of net income (loss) and excludes
interest, taxes, depreciation, and amortization. Adjusted EBITDA is
included as a supplemental disclosure because management believes
that such measurement provides a better assessment of the Company's
operations on a continuing basis by eliminating certain non-cash
charges and charges that are nonrecurring. The most directly
comparable measure to adjusted EBITDA calculated in accordance with
IFRS is net income (loss).
|
|
Three months
ended
December
31,
|
Twelve months
ended
December
31,
|
(UNAUDITED)
|
U.S. $
millions
|
2016
|
|
2015
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(2.7)
|
|
$
|
(1.4)
|
$
|
(17.8)
|
|
$
|
(18.1)
|
|
Financing
costs
|
1.1
|
|
3.1
|
10.1
|
|
6.7
|
|
Depreciation of
property and equipment
|
0.2
|
|
0.3
|
0.8
|
|
1.0
|
|
EBITDA
|
$
|
(1.4)
|
|
$
|
2.0
|
$
|
(6.9)
|
|
$
|
(10.4)
|
|
Change in value of
derivative instruments
|
(0.5)
|
|
(1.5)
|
(1.9)
|
|
2.6
|
|
Restructing
costs
|
0.7
|
|
-
|
0.9
|
|
-
|
|
Income tax
recovery
|
-
|
|
-
|
-
|
|
(0.1)
|
|
Share-based
compensation
|
0.1
|
|
(0.2)
|
0.3
|
|
0.6
|
|
Gain on disposal of
equipment
|
-
|
|
-
|
-
|
|
(0.1)
|
|
Loss (gain) on
foreign currency translation
|
-
|
|
(0.1)
|
0.1
|
|
(0.2)
|
|
Adjusted
EBITDA
|
$
|
(1.1)
|
|
$
|
0.2
|
$
|
(7.5)
|
|
$
|
(7.6)
|
Adjusted working capital is not a recognized performance measure
under IFRS and does not have a standardized meaning prescribed by
IFRS. The term working capital consists of current assets less
current liabilities. Adjusted working capital is included as a
supplemental disclosure because management believes that such
measurement provides a better assessment of the Company's near-term
cash obligations, by excluding certain non-cash liabilities.
(UNAUDITED)
|
December
31,
|
December
31,
|
U.S. $
millions
|
2016
|
2015
|
|
|
|
Working
captial
|
$
|
(3.8)
|
$
|
(16.6)
|
|
|
|
Non-cash adjustments
to working capital:
|
|
|
|
Warrant
liability
|
0.1
|
2.1
|
|
LTIP
liability
|
0.1
|
-
|
|
Project
financing
|
1.2
|
1.1
|
|
Estimate of bridge
loan to convert to term loan
|
1.2
|
-
|
|
|
|
Adjusted working
capital
|
$
|
(1.2)
|
$
|
(13.4)
|
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements, including the intention of the
Corporation to complete the Rights Offering and the Company's plans
to align the Company's resources with the on-going revenue
opportunities and to seek to return to profitable growth. The words
"anticipate", "expect", "project", "estimate", "forecast" and
similar expressions are intended to identify such forward-looking
statements. Although Intermap believes that these statements are
based on information and assumptions which are current, reasonable
and complete, these statements are necessarily subject to a variety
of known and unknown risks and uncertainties. You can find a
discussion of such risks and uncertainties in our Annual
Information Form and other securities filings. While the
Corporation makes these forward-looking statements in good faith,
should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary significantly from those expected. Accordingly, no assurances
can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that the Corporation will derive
therefrom. All subsequent forward-looking statements, whether
written or oral, attributable to Intermap or persons acting on its
behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements contained in
this news release are made as at the date of this news release and
the Corporation does not undertake any obligation to update
publicly or to revise any of the forward-looking statements made
herein, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities
law.
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Balance
Sheets
UNAUDITED
(In thousands of United States
dollars)
|
|
|
December
31,
|
December
31,
|
|
|
|
2016
|
2015
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,527
|
$
|
-
|
|
Restricted
cash
|
|
-
|
801
|
|
Amounts
receivable
|
|
600
|
2,283
|
|
Unbilled
revenue
|
|
30
|
11
|
|
Prepaid
expenses
|
|
409
|
295
|
|
|
|
7,566
|
3,390
|
|
|
|
|
|
Property and
equipment
|
|
1,457
|
1,922
|
|
|
|
$
|
9,023
|
$
|
5,312
|
|
|
|
|
|
Liabilities and
Shareholders' Deficiency
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
3,555
|
$
|
6,872
|
|
Current portion of
notes payable
|
|
5,864
|
9,087
|
|
Current portion of
project financing
|
|
1,214
|
1,121
|
|
Current portion of
deferred lease inducements
|
|
24
|
101
|
|
Unearned
revenue
|
|
469
|
467
|
|
Warrant
liability
|
|
137
|
2,085
|
|
Income taxes
payable
|
|
3
|
5
|
|
Obligations under
finance leases
|
|
49
|
75
|
|
Current portion of
other long-term liabilities
|
|
100
|
158
|
|
|
|
11,415
|
19,971
|
|
|
|
|
|
Long-term notes
payable
|
|
21,837
|
7,300
|
Long-term project
financing
|
|
168
|
174
|
Deferred lease
inducements
|
|
133
|
162
|
Obligations under
finance leases
|
|
24
|
34
|
Other long-term
liabilities
|
|
-
|
92
|
|
|
|
33,577
|
27,733
|
|
|
|
|
|
Shareholders'
deficiency:
|
|
|
|
|
Share
capital
|
|
196,686
|
196,409
|
|
Accumulated other
comprehensive income
|
|
(146)
|
(102)
|
|
Contributed
surplus
|
|
26,955
|
11,578
|
|
Deficit
|
|
(248,049)
|
(230,306)
|
|
Accumulated other
comprehensive income
|
|
|
|
|
|
|
(24,554)
|
(22,421)
|
|
|
|
|
|
|
|
|
$
|
9,023
|
$
|
5,312
|
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Profit and Loss and Other Comprehensive
Income
UNAUDITED
(In thousands of United States
dollars, except per share information)
For the years ended
December 31,
|
|
2016
|
2015
|
|
|
|
|
Revenue
|
|
$
|
7,049
|
$
|
8,642
|
|
|
|
|
Expenses:
|
|
|
|
|
Operating
costs
|
|
14,781
|
16,860
|
|
Depreciation of
property and equipment
|
|
837
|
974
|
|
Amortization of
intangible assets
|
|
-
|
13
|
|
|
|
15,618
|
17,847
|
|
|
|
|
|
Operating
loss
|
|
(8,569)
|
(9,205)
|
|
|
|
|
Restructuring
costs
|
|
(941)
|
-
|
Gain on disposal of
equipment
|
|
-
|
94
|
Change in fair value
of derivative instruments
|
|
1,948
|
(2,572)
|
Financing
costs
|
|
(10,069)
|
(6,661)
|
Financing
income
|
|
7
|
8
|
(Loss) gain on
foreign currency translation
|
|
(105)
|
136
|
Loss before income
taxes
|
|
(17,729)
|
(18,200)
|
|
|
|
|
Income tax
expense:
|
|
|
|
|
Current
|
|
(14)
|
(27)
|
|
Deferred
|
|
-
|
73
|
|
|
|
(14)
|
46
|
|
|
|
|
|
Net loss for the
period
|
|
$
|
(17,743)
|
$
|
(18,154)
|
|
|
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
Items that are or may
be reclassified subsequently to profit or loss:
|
|
|
|
Foreign currency
translation differences
|
|
(44)
|
(45)
|
|
|
|
|
Comprehensive loss
for the period
|
|
$
|
(17,787)
|
$
|
(18,199)
|
|
|
|
|
Basic and diluted
loss per share
|
|
$
|
(0.18)
|
$
|
(0.19)
|
|
|
|
|
Weighted average
number of Class A common
|
|
|
|
|
shares - basic &
diluted
|
|
100,878,954
|
96,102,755
|
INTERMAP TECHNOLOGIES CORPORATION
Consolidated
Statements of Changes in Shareholders' Deficiency
UNAUDITED
(In thousands of United States
dollars)
|
|
Contributed
Surplus
|
Cumulative
Translation
|
|
|
|
Share
Capital
|
Deficit
|
Total
|
Balance at December
31, 2014
|
$
|
194,377
|
$
|
11,395
|
$
|
(57)
|
$
|
(212,152)
|
$
|
(6,437)
|
Comprehensive loss
for the period
|
-
|
-
|
(45)
|
(18,154)
|
(18,199)
|
Share-based
compensation
|
30
|
294
|
-
|
-
|
324
|
Exercise of
warrants
|
1,004
|
-
|
-
|
-
|
1,004
|
Exercise of
options
|
57
|
(22)
|
-
|
-
|
35
|
Note
conversion
|
556
|
(16)
|
-
|
-
|
540
|
New warrant
issuance
|
385
|
-
|
-
|
-
|
385
|
Deferred tax effect
of convertible note
|
-
|
(73)
|
-
|
-
|
(73)
|
Balance at December
31, 2015
|
$
|
196,409
|
$
|
11,578
|
$
|
(102)
|
$
|
(230,306)
|
$
|
(22,421)
|
Comprehensive loss
for the period
|
-
|
-
|
(44)
|
(17,743)
|
(17,787)
|
Gain on modification
of debt
|
-
|
15,063
|
-
|
-
|
15,063
|
Share-based
compensation
|
174
|
359
|
-
|
-
|
533
|
Exercise of
options
|
103
|
(45)
|
-
|
-
|
58
|
Balance at December
31, 2016
|
$
|
196,686
|
$
|
26,955
|
$
|
(146)
|
$
|
(248,049)
|
$
|
(24,554)
|
SOURCE Intermap Technologies Corporation