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AccuTerra app for Apple`s 3.1 iPhone OS Enables "in-app" Purchasing
Management Team Strengthened with the Addition of New Sales Executive
DENVER--(Business Wire)--
Intermap Technologies Corporation ("Intermap" or the "Company") today reported
financial results for the third quarter ended September 30, 2009. A conference
call will be held today, November 9, at 4:30 p.m. Eastern Time to discuss the
results.
All amounts in this news release are in United States dollars unless otherwise
noted.
With NEXTMap Europe now available in its entirety, Intermap is focusing on the
final processing phase of its NEXTMap USA dataset, which is scheduled to be
commercially available in its entirety by mid-year 2010. Intermap believes its
NEXTMap Europe dataset represents the most uniform, accurate and complete 3D
maps of Western Europe in existence.
As part of its transformation to a sales- and market-driven organization,
Intermap announced the appointment of David Cunningham, who has joined the
Company as vice president of integrated sales. Mr. Cunningham will lead the
Company`s various business units in the development and implementation of
strategic sales methodologies to drive revenue across the entire Company
including North America, Europe, and Asia.
"David is ideally suited to take the organization to the next level necessary to
maximize the value of our NEXTMap asset," stated Brian Bullock, Intermap`s
president and CEO. "His proven track record with leading international
technology-based enterprise organizations will help lead us in our critical
transition to an integrated sales- and market-driven company."
FINANCIAL REVIEW
"Notwithstanding current challenging economic conditions, Intermap remains
committed to delivering strong and consistent revenue growth," commented Brian
Bullock, Intermap`s president and CEO. "Although revenue was up
quarter-over-quarter, our financial results fell short of our expectations.
Contributing to the shortfall were two large contracts scheduled to close in the
second half of 2009 that have yet to be finalized. Additionally, another
transaction closed in October at a lower value than previously anticipated. Some
customers have communicated to us that tightened budgets, coupled with a weak
economic backdrop, have impacted their ability to readily issue new contracts.
However, we remain optimistic that significant identified opportunities will
close in 2010 and lead to improved financial performance during the coming year.
Nevertheless, we continue to remind shareholders that quarterly revenues are and
will continue to be lumpy until our scalable markets become the dominant source
of revenue. For example, our analysis of underlying MCDL revenue trends,
adjusted for one large sale that occurred in Q2 of 2008, shows that the
underlying trend is an upward trend. As NEXTMap USA nears completion, we believe
that a few large buyers are budgeting to purchase nationwide licenses, which
could add significantly to our MCDL revenue in 2010 and beyond."
For the third quarter of 2009, Intermap reported total revenue of $10.4 million,
a decrease from the $12.8 million reported for the same period in 2008. At
quarter-end, there remained $6.6 million in revenue to be recognized on existing
contracts in future periods.
Multi-client data library ("MCDL") license revenue increased 16% to $3.0 million
during the third quarter of 2009, compared to $2.5 million for the same period
in 2008. For the third quarter of 2009, approximately 24% of the MCDL license
revenue was associated with the NEXTMap USA program, 16% was associated with the
NEXTMap Europe program and 60% was associated with the Company`s Asia dataset.
Contract services revenue in the third quarter of 2009 was $7.4 million,
compared to $10.3 million for the same period in 2008. The decrease was
primarily the result of a reduction in mapping projects in Asia where the
Company had $10.0 million in revenue during the third quarter of 2008 compared
to $6.6 million during the same period in 2009.
Operations expense in the third quarter totaled $2.8 million, as compared to
$1.9 million for the same period in 2008. The increase is primarily the result
of a reduction of capitalized costs due to the completion of NEXTMap Europe and
the completion of airborne collection of the Company`s NEXTMap USA program.
Additionally, during the third quarter of 2009, expenses were incurred in
relation to contract services revenue recognized during the period.
Sales, general and administrative ("SG&A") expense in the third quarter was $6.9
million, as compared to $6.8 million for the same period in 2008. SG&A includes
costs associated with administration, database infrastructure, facilities,
business development (including automotive, consumer electronics and insurance
risk management), sales, and marketing.
Amortization expense of the MCDL database in the third quarter increased to $2.6
million from $1.3 million for the same period in 2008. The increase was
primarily due to an increase in the size of the underlying NEXTMap datasets.
Adjusted EBITDA, a non-GAAP measure, for the quarter ended September 30, 2009
was $0.5 million, as compared to $3.7 million for the same period in 2008. The
term EBITDA consists of net income (loss) and excludes interest, taxes,
depreciation, and amortization. Adjusted EBITDA also excludes gain or loss on
foreign currency translation, gain or loss related to the disposal of assets,
and stock based compensation expense.
For the third quarter of 2009, Intermap reported a net loss of $4.3 million, or
($0.08) per share, compared to net income of $0.2 million, or $0.00 per share
for the same period in 2008.
On a year-to-date basis, consolidated revenue decreased by $5.3 million from
$27.4 million during the nine months ended September 30, 2008 to $22.1 million
during the same period in 2009. Contract services revenue on a year-to-date
basis was $15.3 million compared to $18.6 million for the same period in 2008.
MCDL revenue for the nine months ended September 30, 2009 was $6.8 million, a
decrease from the $8.7 million reported during the same period in 2008.
Approximately 27% of the MCDL license revenue year-to-date was associated with
the NEXTMap USA program, 31% was associated with the NEXTMap Europe program and
42% was associated with the Asia dataset.
Operations expense totaled $6.2 million during the first nine months in 2009
compared to $6.0 million for the same period in 2008. SG&A expense totaled $19.6
million during the first nine months in 2009 compared to $19.8 million for the
same period in 2008. Adjusted EBITDA was a loss of $4.8 million during the first
nine months in 2009 compared to positive earnings of $0.4 million for the same
period in 2008. The net loss for the first nine months of 2009 was $18.1
million, or ($0.35) per share, as compared to a net loss of $10.2 million, or
($0.22) per share in the same period of 2008.
Cash expenditures have continued to decrease through 2009 as the airborne data
collection portion of NEXTMap USA was completed in the early part of the year.
Cash outflows relating to NEXTMap are expected to be lower by more than $15
million for all of 2009 when compared to 2008. Investment in the final
processing of the NEXTMap USA dataset continues with an expected commercial
availability in its entirety by mid-year 2010.
Net cash used in investing activities is down significantly as predicted,
totaling $3.0 million (year-to-date $10.8 million) during the third quarter of
2009, compared to $9.4 million (year-to-date $27.6 million) during the same
period in 2008. Cash used during the third quarter of 2009 in investing
activities was primarily for investment in the MCDL of $2.7 million ($7.7
million in 2008).
The cash position of the Company at September 30, 2009 (cash and cash
equivalents) was $16.5 million compared to $27.3 million at December 31, 2008.
Working capital decreased to $22.6 million as of September 30, 2009 from $30.0
million as of December 31, 2008.
As of November 6, 2009, there were 52,432,037 common shares outstanding.
Detailed financial results for the quarter and management`s discussion and
analysis can be found on SEDAR at: www.sedar.com.
OPERATING HIGHLIGHTS
Apple iPhone and AccuTerra by Intermap
In the second quarter, Intermap launched its AccuTerra GPS map product on the
Apple iPhone. The new application was named winner of the Apple Design Award in
the Best iPhone OS 3.0 Beta App category.
The iPhone and AccuTerra map content allows hikers and other outdoor
recreational users to view their topographic surroundings with a high degree of
detail, while accurately tracking their progress. The AccuTerra maps reside on
the iPhone so people can use them even where there is no cellular coverage.
Adventures can be tracked, saved and shared immediately via email. The
application is also integrated with Google Earth and Google Maps to enable
shared user experiences and the ability to build online communities. In
addition, AccuTerra`s unique ′Walking Tour′ function lets the user`s replay the
entire adventure right from their iPhone.
Within the first three weeks, Intermap sold and downloaded over a terabyte of
content to iPhone users from over 270 map bundles available on the Apple App
Store. Downloads quickly climbed from hundreds to thousands and by the end of
the third quarter total downloads have reached tens of thousands.
Intermap`s iPhone application includes a sophisticated and flexible "In-App"
purchasing capability. By fully leveraging Apple`s iPhone OS v3.1, the iPhone
user can purchase content within the AccuTerra application. As of September 30,
2009, there have been approximately 25,000 paid licenses specific to dedicated
GPS and iPhone devices.
Intermap has an aggressive plan to pursue the rapidly growing Smartphone market
with its AccuTerra GPS outdoor recreational maps. In the United States, Intermap
has OEM agreements to supply its AccuTerra GPS recreational maps to Magellan,
Bushnell Outdoor Products, Pronounced Technologies, and Navico/Lowrance. NEXTMap
data can be used to power mobile recreation applications with nationwide mapping
coverage available in the U.S. and Western Europe.
The AccuTerra applications are available from Apple`s iTunes App Store at
www.itunes.com/appstore. More information on AccuTerra for the iPhone can be
found at: mobile.AccuTerra.com.
Automotive Market - Safety, Navigation and Fuel Efficiency
Intermap is creating highly accurate 3D road vectors from the NEXTMap database
to enable the enhancement of and help improve fuel efficiency and vehicle safety
in the transportation industry. From its Detroit and Munich offices, Intermap is
supporting advanced automotive technologies in the industry.
Intermap recently completed its first agreement to supply 3D map content to the
automotive market, supplying 3D terrain data to a leading automotive supplier to
support terrain visualization.
Intermap actively collaborates with leading automobile manufacturers regarding
the creation and development of what it believes is "cutting edge" ADAS and
Energy Management centric automotive technology such as predictive adaptive
front lighting and enhanced adaptive cruise control systems. Intermap recently
completed 3D road vectors for all classes of roads in Germany.
Visualization
Intermap licensed shaded terrain products which leverage the nationwide NEXTMap
3D mapping database for the U.S. and Europe to MapQuest, Inc. Additionally,
Intermap will deliver shaded terrain products for Europe and the remainder of
the world for subsequent releases on the MapQuest.com consumer Web site and
Platform products. On October 29, MapQuest launched a major upgrade to their
popular web site utilizing Intermap`s data. A visible improvement to their
on-line maps is the integration of Intermap`s shaded terrain content based on
Intermap`s NEXTMap data. Further, Intermap receives attribution on the website
which will increase corporate visibility by virtue of the 500 million page views
recorded per month.
Geographic Information System (GIS) Applications
Intermap received a $1.8 million contract to supply elevation data to evaluate a
comprehensive 3D basin model that shows water accumulation, flow, catchment and
use potential. This 3D model is a key to the success of a large river
restoration program. The area is experiencing its lowest in-flows on record,
which, combined with a 7-year drought, has contributed to a severe water
shortage throughout the region.
NEXTMap Distribution Partners/Resellers
Intermap has released the Company`s new elevation shaded image (ESI) product for
Germany and has partnered with GeoContent GmbH, a leading provider in Germany of
aerial photography and geospatial information, to create the high-resolution ESI
product. The result is a topographic visualization ideal for manufacturers of
personal navigation devices, in-dash navigation systems and other applications
benefiting from advanced visualization images.
Intermap believes that users of navigation devices and systems employing
Intermap`s ESI product will be able to identify their current location and how
to get to their desired destination much more quickly, reliably and intuitively
than with traditional maps or shaded relief products. The 1-meter vertical
accuracy of Intermap`s underlying NEXTMap elevation data can enhance an outdoor
recreation user`s experience - whether it`s a hike in the Bavarian Alps or a
drive on the Autobahn.
Intermap has distribution agreements with ESRI France and ESRI Portugal, some of
the leading geographic information system (GIS) technology providers in their
respective countries, to resell NEXTMap data. Intermap has also entered into a
data distribution agreement with Digital Data Services, a provider of mapping
products and GIS services, to offer NEXTMap data worldwide.
Recently, Intermap received recognition as one of 20 selected showcase companies
for the 2009 DEMOgala technology conference in Denver. DEMOgala is the region`s
largest technology conference, with a showcase of demonstrations from innovative
Colorado companies and more than 40 Founders and CEOs from around the nation.
NEXTMap data is available directly from Intermap, online at www.TerrainOnDemand,
or through selected partners worldwide.
Conference Call November 9, 2009 at 4:30 p.m. EST (2:30 p.m. MST)
Intermap will host a conference call today, November 9, 2009, at 4:30 pm EST
(2:30pm MST).To participate in the call, please dial +1-416-340-8018 or
1-866-223-7781 approximately 10 minutes prior to the conference call. A
recording of the conference call will be available through November 16, 2009.
Please dial +1-416-695-5800 or +1-800-408-3053 and provide the password 8816154
to listen to the rebroadcast.
About Intermap Technologies
Intermap (TSX: IMP.TO) is a preeminent digital mapping company creating uniform
high-resolution 3D digital models of the earth`s surface. The Company has
proactively remapped entire countries and is building uniform national datasets,
called NEXTMap®, consisting of affordably priced elevation data and geometric
images of unprecedented accuracy. Demand for NEXTMap data is continues to grow
as new commercial applications emerge within the GIS, engineering, automotive,
consumer electronics, insurance risk assessment, oil and gas, renewable energy,
hydrology, environmental planning, wireless communications, transportation,
aviation and 3D visualization markets.
Intermap is headquartered in Denver, Colorado, with additional offices in
Calgary, Detroit, Jakarta, London, Madrid, Munich, Ottawa, Paris, Perth, Prague
and Washington D.C. For more information, visit www.Intermap.com or
www.AccuTerra.com.
NEXTMap® is a registered trademark of Intermap Technologies Corporation
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking
statements. 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 Sheet
(In thousands of United States dollars)
September 30, December 31,
2009 2008
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 16,507 $ 27,247
Amounts receivable 5,856 9,862
Unbilled revenue 5,625 1,725
Work in process 2,586 25
Prepaid expenses 1,687 1,635
32,261 40,494
Property and equipment 15,055 20,782
Multi-client data library 86,344 81,156
Intangible assets 1,016 1,331
Future income taxes 154 230
$ 134,830 $ 143,993
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 6,735 $ 7,858
Current portion of deferred lease inducements 183 205
Deferred revenue 858 1,177
Income taxes payable 142 12
Current portion of obligations under capital lease 260 344
Current portion of long-term debt 1,490 856
9,668 10,452
Deferred lease inducements 155 172
Obligations under capital lease 173 357
Long-term debt 1,218 2,286
Future income tax liability 244 319
11,458 13,586
Shareholders' equity:
Share capital 181,626 172,288
Contributed surplus 6,330 4,590
Deficit (70,778 ) (52,665 )
Accumulated other comprehensive income 6,194 6,194
123,372 130,407
$ 134,830 $ 143,993
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(In thousands of United States dollars)
For the three months For the nine months
ended September 30, ended September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Contract services $ 7,451 $ 10,285 $ 15,279 $ 18,649
Multi-client data licenses 2,983 2,563 6,804 8,744
10,434 12,848 22,083 27,393
Operating costs:
Operations 2,838 1,886 6,217 5,963
Research and development 924 1,023 2,819 3,041
Sales, general and administrative 6,885 6,806 19,585 19,785
Depreciation of property and equipment 1,613 1,168 4,759 3,187
Amortization of multi-client data library 2,556 1,349 6,777 5,181
Amortization of intangible assets 106 106 315 316
Loss (gain) on disposal of equipment 24 1 (118 ) 2
14,946 12,339 40,354 37,475
(Loss) income before interest, foreign
exchange and income taxes (4,512 ) 509 (18,271 ) (10,082 )
Interest expense (56 ) (72 ) (174 ) (224 )
Interest income 9 205 19 958
Gain (Loss) on foreign currency translation 334 (399 ) 466 (711 )
- -
(Loss) income before income taxes (4,225 ) 243 (17,960 ) (10,059 )
Income tax expense (recovery)
Current 51 45 152 135
Future 4 (4 ) 1 10
55 41 153 145
Net (loss) income and comprehensive (loss) income (4,280 ) 202 (18,113 ) (10,204 )
Deficit, beginning of period (66,498 ) (49,125 ) (52,665 ) (38,719 )
- -
Deficit, end of period $ (70,778 ) $ (48,923 ) $ (70,778 ) $ (48,923 )
Basic and diluted loss per share $ (0.08 ) $ 0.00 $ (0.35 ) $ (0.22 )
Weighted average number of Class A
common shares - basic 52,432,037 46,184,441 51,696,995 46,147,389
common shares - diluted 52,432,037 46,213,836 51,696,995 46,147,389
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
(In thousands of United States dollars)
For the three months For the nine months
ended September 30, ended September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flows (used in) provided by:
Operations:
Net loss $ (4,280 ) $ 202 $ (18,113 ) $ (10,204 )
Items not involving cash and cash equivalents:
Depreciation of property and equipment 1,613 1,168 4,759 3,187
Amortization of multi-client data library 2,556 1,349 6,777 5,181
Amortization of intangible assets 106 106 315 316
Stock-based compensation 669 617 1,695 2,009
(Gain) Loss on disposal of property & equipment 24 1 (118 ) 2
Amortization of deferred lease inducements (62 ) (55 ) (178 ) (167 )
Future income taxes 4 (4 ) 1 10
Change in non-cash operating working capital (5,186 ) 7,234 (3,732 ) 12,460
(4,556 ) 10,618 (8,594 ) 12,794
Financing:
Proceeds from issuance of common shares - 25 9,540 418
Securities issuance costs (3 ) - (838 ) -
Proceeds from issuance of long-term debt - - - 605
Repayment of obligations under capital lease (70 ) (61 ) (267 ) (153 )
Repayment of long-term debt (225 ) (216 ) (649 ) (561 )
- - - -
(298 ) (252 ) 7,786 309
Investments:
Purchase of property and equipment (311 ) (1,667 ) (1,116 ) (4,253 )
Investment in multi-client data library (2,743 ) (7,725 ) (10,702 ) (23,368 )
Proceeds from sale of property & equipment 32 - 1,040 -
(3,022 ) (9,392 ) (10,778 ) (27,621 )
Effect of foreign exchange on cash 622 (410 ) 846 (698 )
Increase (decrease) in cash and cash equivalents (7,254 ) 564 (10,740 ) (15,216 )
Cash and cash equivalents, beginning of period 23,761 41,055 27,247 56,835
Cash and cash equivalents, end of period $ 16,507 $ 41,619 $ 16,507 $ 41,619
Supplemental cash flow information:
Cash paid for interest expense $ 53 $ 72 $ 171 $ 224
Cash paid for income taxes $ 27 $ 23 $ 66 $ 82
Intermap Technologies
Richard Mohr, +1-303-708-0955
Senior Vice President & Chief Financial Officer
rmohr@intermap.com
or
Canada - Financial
E-vestor Communications Inc.
Corbet Pala, +1-416-657-2400
Investor Relations
cpala@evestor.com
or
United States - Financial
Genesis Select Corporation
Budd Zuckerman, +1-303-415-0200
Investor Relations
bzuckerman@genesisselect.com
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