DENVER, Feb. 22, 2018 /PRNewswire/ - (TSX: IMP)
(ITMSF:BB) – Intermap Technologies Corporation ("Intermap"
or the "Company") reported a 174% increase in 2017 revenue and a
$11.6 million improvement in cash
from operations, compared to 2016. In addition, it reported
positive net income for the fourth quarter.
The Company also announced today the receipt of a new
$2.0 million government task order
for the creation of digital elevation and bare earth terrain
models. The Company is increasingly providing its multi-sensor
solutions and data management tools through web services, software
and analytics. Including this announcement, the Company has
announced $3.7 million of government
task orders since year end 2017, which are to be completed in
2018.
"These results reflect across-the-board growth in geospatial
content, software and solutions, delivered where, when, and how
they are needed. Intermap serves better analytics and answers to
both our government and commercial customers all over the globe,"
commented Patrick Blott, Chairman
& CEO of Intermap. "We will continue investing strategically in
our people, technology, proprietary data, and client relationships,
to deliver cutting-edge geospatial solutions that are responsive
and financial returns that are competitive."
All amounts in this news release are in United States dollars, unless otherwise
noted.
Consolidated revenue for the year ended December 31, 2017 totaled $19.3 million, compared to $7.0 million recorded in 2016. Approximately 65%
of consolidated revenue was generated outside the United States, compared to 30% for the
same period in 2016.
Total revenue for the fourth quarter increased 297% to
$5.9 million, compared to
$1.4 million for the fourth quarter
of 2016.
Operating cash flow for the year was $3.5
million, compared to an $8.1
million loss in 2016. Operating cash flow for the quarter
was $0.9 million, compared to a
$1.3 million loss for the same period
in 2016.
Adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was
positive $3.5 million for the year,
compared with negative $7.2 million
for 2016, a $10.7 million
improvement. Fourth quarter adjusted EBITDA was positive
$1.9 million, compared to negative
$0.8 million for fourth quarter of
2016.
For the fourth quarter of 2017, Intermap reported net income of
$0.5 million, compared to a net loss
of $0.2 million for the same period
in 2016.
The Company finished the year with $6.4
million of cash and positive working capital of $0.3 million, compared to cash of $6.5 million and a working capital deficit of
$3.8 million for 2016.
In addition to generating cash throughout the year, the Company
invested $3.9 million in new sensors,
software, and other proprietary technologies, compared to
$0.3 million of investment during
2016. Total assets increased to $11.8
million, up from $9.0 million
at the end of 2016. The Company's total assets exclude its
proprietary, high resolution, NEXTMap® data library, as
well as internally developed software applications, patented
algorithms along with innovative approaches in artificial
intelligence and machine learning-driven processing engines, risk
models, and prototype sensors. Cumulative net operating loss
carryforwards at the end of 2017 totaled $223 million.
Additional highlights of significant milestones achieved in 2017
include:
- The Company added an average of two insurance solutions
customers each month to its software platform, and experienced a
100% renewal rate on customers eligible for renewal during the
year, growing commercial subscription revenue by more than
210%
- Following extensive damage from wildfires in California, the Company received its first
commercial software subscription for wildfire risk analytics
- On the government side, following an upgrade of its sensor
platform, the Company completed a major data infrastructure project
in Southeast Asia, and
transitioned that regions business towards data solutions and
enterprise data management. The Company also received its first
task order to collect and process P-band radar and light detection
and ranging (LiDAR) data to support foundation geo
intelligence
- The Company received a patent and third party validation for
its fourth, proprietary and global, digital elevation model,
generated with a 1-meter posting (LE 90 accuracy), capable of
producing high resolution digital terrain and elevation information
(first surface and bare earth) for any area of interest on the
planet. This fourth generation model compliments the Company's
existing proprietary, global, digital elevation models, posted at
5-meter, 10-meter, and 30-meter resolutions
- Extending its performance culture, the Company invested in
senior level sales and business development talent to support its
continued growth, and elevated several high performing internal
business development professionals, while achieving a 9% reduction
in over-all employee costs, and a 30% reduction in facilities
expense
- The Company also commenced a complete upgrade of its internal
processing, data management, optimization and software
architecture, incorporating graphic processing units;
auto-classification, automated feature extraction and data
authoring; artificial intelligence and machine learning algorithms;
and a patented intelligent resolution improvement process.
The Company's Annual General and Special Meeting of Shareholders
is scheduled for March 15, 2018 in
Calgary, Alberta. The materials
are available on SEDAR at: www.sedar.com. In advance of the
meeting, the Company has entered into a voting agreement with
Vertex One Asset Management ("Vertex"), in which Vertex intends to
support the matters to be put before shareholders at the
meeting.
The Company's consolidated financial statements and management's
discussion and analysis will be filed on SEDAR at: www.sedar.com.
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.
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
|
Twelve months
ended
|
(UNAUDITED)
|
December
31,
|
December
31,
|
U.S. $
millions
|
2017
|
|
2016
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
0.5
|
|
$
|
(0.2)
|
$
|
(1.2)
|
|
$
|
(15.3)
|
|
Financing
costs
|
0.6
|
|
1.1
|
2.5
|
|
10.1
|
|
Income tax
recovery
|
0.1
|
|
(2.4)
|
(0.1)
|
|
(2.4)
|
|
Depreciation of
property and equipment
|
0.3
|
|
0.2
|
0.9
|
|
0.8
|
|
EBITDA
|
$
|
1.5
|
|
$
|
(1.3)
|
$
|
2.1
|
|
$
|
(6.8)
|
|
Non-recurring
payments
|
0.3
|
|
0.2
|
0.8
|
|
0.2
|
|
Change in value of
derivative instruments
|
-
|
|
(0.5)
|
(0.1)
|
|
(1.9)
|
|
Restructing
costs
|
0.1
|
|
0.7
|
0.2
|
|
0.9
|
|
Share-based
compensation
|
0.1
|
|
0.1
|
0.3
|
|
0.3
|
|
(Gain) loss on
foreign currency translation
|
(0.1)
|
|
-
|
0.2
|
|
0.1
|
|
Adjusted
EBITDA
|
$
|
1.9
|
|
$
|
(0.8)
|
$
|
3.5
|
|
$
|
(7.2)
|
About Intermap Technologies
Headquartered in Denver,
Colorado, Intermap (www.intermap.com) is an industry leader
in geospatial intelligence solutions. These geospatial solutions
are used in a wide range of applications including, but not limited
to, location-based information, risk assessment, geographic
information systems, engineering, utilities, global positioning
systems, oil and gas, renewable energy, hydrology, environmental
planning, land management, wireless communications, transportation,
advertising, and 3D visualization. Intermap generates revenue
from three primary business activities, comprised of i) data
acquisition and collection, using proprietary, multi-frequency,
radar sensor technologies, ii) value-added data products and
services, which leverage the Company's proprietary NEXTMap®
database, together with proprietary software and fusion
technologies, and iii) commercial applications and solutions,
including a webstore and software sales targeting selected industry
verticals that rely on accurate high resolution elevation data. The
Company is a world leader in geospatial data management and
processing, including fusion, analytics, and orthorectification,
and has decades of experience aggregating data derived from a
number of different sensor technologies and data sources. For more
information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements, including the Company's profitability
and revenue generating activities. 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 Company 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 Company
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 Company 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,
|
|
|
|
2017
|
2016
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
|
6,363
|
$
|
6,527
|
|
Amounts
receivable
|
|
521
|
600
|
|
Unbilled
revenue
|
|
65
|
30
|
|
Prepaid
expenses
|
|
359
|
409
|
|
|
|
7,308
|
7,566
|
|
|
|
|
|
Property and
equipment
|
|
4,460
|
1,457
|
|
|
|
$
|
11,768
|
$
|
9,023
|
|
|
|
|
|
Liabilities and
Shareholders' Deficiency
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
4,011
|
$
|
3,555
|
|
Current portion of
notes payable
|
|
-
|
5,864
|
|
Current portion of
project financing
|
|
1,303
|
1,214
|
|
Current portion of
deferred lease inducements
|
|
30
|
24
|
|
Unearned
revenue
|
|
1,604
|
469
|
|
Warrant
liability
|
|
-
|
137
|
|
Income taxes
payable
|
|
2
|
3
|
|
Obligations under
finance leases
|
|
10
|
49
|
|
Current portion of
other long-term liabilities
|
|
-
|
100
|
|
|
|
6,960
|
11,415
|
|
|
|
|
|
Long-term notes
payable
|
|
26,496
|
21,837
|
Long-term project
financing
|
|
191
|
168
|
Deferred lease
inducements
|
|
120
|
133
|
Obligations under
finance leases
|
|
14
|
24
|
|
|
|
33,781
|
33,577
|
|
|
|
|
|
Shareholders'
deficiency:
|
|
|
|
|
Share
capital
|
|
199,634
|
196,686
|
|
Accumulated other
comprehensive income
|
|
(143)
|
(146)
|
|
Contributed
surplus
|
|
25,242
|
26,955
|
|
Deficit
|
|
(246,746)
|
(248,049)
|
|
|
|
(22,013)
|
(24,554)
|
|
|
|
|
|
|
|
|
$
|
11,768
|
$
|
9,023
|
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,
|
|
2017
|
2016
|
Revenue
|
|
$
|
19,304
|
$
|
7,049
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Operating
costs
|
|
16,828
|
14,781
|
|
Restructuring
costs
|
|
244
|
941
|
|
Depreciation of
property and equipment
|
|
924
|
837
|
|
|
|
17,996
|
16,559
|
Operating income
(loss)
|
|
1,308
|
(9,510)
|
|
|
|
|
|
Gain on disposal of
equipment
|
|
3
|
-
|
Change in fair value
of derivative instruments
|
|
137
|
1,948
|
Financing
costs
|
|
(2,538)
|
(10,069)
|
Financing
income
|
|
-
|
7
|
Loss on foreign
currency translation
|
|
(214)
|
(105)
|
Loss before income
taxes
|
|
(1,304)
|
(17,729)
|
|
|
|
|
|
Income tax
expense:
|
|
|
|
|
Current
|
|
(51)
|
(14)
|
|
Deferred
|
|
200
|
2,458
|
|
|
|
149
|
2,444
|
Net loss for the
period
|
$
|
(1,155)
|
$
|
(15,285)
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Items that are or may
be reclassified subsequently to profit or loss:
|
|
|
|
Foreign currency
translation differences
|
|
3
|
(44)
|
Comprehensive loss
for the period
|
|
$
|
(1,152)
|
$
|
(15,329)
|
Basic and diluted
loss per share
|
|
$
|
(0.08)
|
$
|
(1.33)
|
|
|
|
|
|
Weighted average
number of Class A common
|
|
|
|
|
shares - basic &
diluted
|
|
15,182,474
|
11,517,236
|
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Changes in Shareholders'
Deficiency
UNAUDITED
(In thousands of United States
dollars)
|
Share
Capital
|
Contributed
Surplus
|
Accumulated
Other
Comprehensive
Income
|
Deficit
|
Total
|
|
|
|
|
|
|
Balance at December
31, 2015
|
$
|
196,409
|
$
|
11,578
|
$
|
(102)
|
$
|
(230,306)
|
$
|
(22,421)
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
-
|
-
|
(44)
|
(15,285)
|
(15,329)
|
Gain on modification
of debt
|
-
|
15,063
|
-
|
-
|
15,063
|
Deferred tax effect
of notes payable
|
-
|
(2,458)
|
-
|
-
|
(2,458)
|
Share-based
compensation
|
174
|
359
|
-
|
-
|
533
|
Exercise of
options
|
103
|
(45)
|
-
|
-
|
58
|
|
|
|
|
|
|
Balance at December
31, 2016
|
$
|
196,686
|
$
|
24,497
|
$
|
(146)
|
$
|
(245,591)
|
$
|
(24,554)
|
|
|
|
|
|
|
Comprehensive income
(loss) for the period
|
-
|
-
|
3
|
(1,155)
|
(1,152)
|
Rights
offering
|
2,890
|
-
|
-
|
-
|
2,890
|
Issuance
costs
|
(164)
|
-
|
-
|
-
|
(164)
|
Gain on modification
of debt
|
-
|
746
|
-
|
-
|
746
|
Deferred tax effect
of notes payable
|
-
|
(200)
|
-
|
-
|
(200)
|
LTIP
issuance
|
162
|
(115)
|
-
|
-
|
47
|
Share-based
compensation
|
60
|
314
|
-
|
-
|
374
|
|
|
|
|
|
|
Balance at December
31, 2017
|
$
|
199,634
|
$
|
25,242
|
$
|
(143)
|
$
|
(246,746)
|
$
|
(22,013)
|
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
UNAUDITED
(In thousands of United States
dollars)
For the years ended
December 31,
|
2017
|
|
2016
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
Net loss for the
period
|
$
|
(1,155)
|
|
$
|
(15,285)
|
|
Adjusted for the
following non-cash items:
|
|
|
|
|
|
Depreciation of
property and equipment
|
924
|
|
837
|
|
|
Share-based
compensation expense
|
281
|
|
289
|
|
|
(Gain) loss on
disposal of equipment
|
(3)
|
|
-
|
|
|
Amortization of
deferred lease inducements
|
26
|
|
(113)
|
|
|
Deferred
taxes
|
(200)
|
|
(2,458)
|
|
|
Change in fair value
of derivative instruments
|
(137)
|
|
(1,948)
|
|
|
Financing
costs
|
2,538
|
|
10,069
|
|
|
Current income tax
expense
|
51
|
|
14
|
|
|
Interest
paid
|
(7)
|
|
(18)
|
|
|
Income tax
paid
|
(52)
|
|
(16)
|
|
Changes in working
capital:
|
|
|
|
|
|
Amounts
receivable
|
89
|
|
1,679
|
|
|
Other
assets
|
15
|
|
(133)
|
|
|
Accounts payable and
accrued liabilities
|
99
|
|
(917)
|
|
|
Unearned
revenue
|
1,135
|
|
2
|
|
|
Gain on foreign
currency translation
|
(107)
|
|
(65)
|
Cash flows provided
by (used in) operating activities
|
3,497
|
|
(8,063)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchase of property
and equipment
|
(3,471)
|
|
(305)
|
|
Proceeds from sale of
equipment
|
3
|
|
1
|
Cash flows used in
investing activities
|
(3,468)
|
|
(304)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from
issuance of common shares
|
2,890
|
|
-
|
|
Proceeds from notes
payable
|
-
|
|
15,000
|
|
Repayment of notes
payable
|
(2,890)
|
|
(617)
|
|
Share issuance
costs
|
(164)
|
|
(168)
|
|
Movement from
restricted cash
|
-
|
|
801
|
|
Repayment of
obligations under finance lease
|
(56)
|
|
(120)
|
Cash flows (used in)
provided by financing activities
|
(220)
|
|
14,896
|
|
|
|
|
|
|
Effect of foreign
exchange on cash
|
27
|
|
(2)
|
|
|
|
|
|
|
Increase (decrease)
in cash
|
(164)
|
|
6,527
|
|
|
|
|
|
|
Cash, beginning of
period
|
6,527
|
|
-
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
6,363
|
|
$
|
6,527
|
|
|
|
|
|
|
SOURCE Intermap Technologies Corporation