Intermap Technologies Corporation (“Intermap” or the “Company”) today reported financial results for the fourth quarter and year ended December 31, 2012. A conference call will be held today, March 11th, at 4:30 p.m. Eastern Time to discuss the results.
In 2012, Intermap’s strategy of “solutions selling” drove an increase in revenue across all of the Company’s product lines, resulting in three consecutive quarters of profitability for the first time in the Company’s history.
“Our solutions selling approach has made it clear to us that our customers are focused more on finding solutions to their unique geospatial needs, and not on the type of sensor used to provide the requisite data,” said Todd Oseth, President & CEO of Intermap. “Our 3D business intelligence applications, coupled with our multi-sensor approach for creating foundation geospatial information (i.e. radar, LiDAR, satellite, photo, etc.) provides the optimum solution for our customers. Our easy to use cloud-based software applications combined with our industry leading data aggregation capabilities give us a distinct advantage in the marketplace.”
Mr. Oseth added, “The introduction of our “Pro” series of software applications during 2012 generated new customers, increased revenues, and expanded our sales pipeline. Our Pro series SaaS-based applications and web-services offerings are a key element of our solutions approach of building a complete Spatial Data Infrastructure for our customers. We’ve seen the success of this approach during 2012 including our major win in Southeast Asia, and we are anticipating continued success with our solutions selling worldwide in 2013.”
Financial Review
“A key metric that we use to measure the progress of our business is adjusted EBITDA. We were successful in delivering a substantial improvement in this metric on a year-over-year basis in 2012 and we expect to see continued improvement as we progress through 2013. Adjusted EBITDA exceeded $2.5 million in each of the last three quarters of the year. A major contract totaling $14.5 million was announced in January of this year and produced the majority of the contract backlog of $14.8 million. The revenue from this contract is expected to be recognized in its entirety during 2013. Our sales pipeline has grown for this coming year driven by commercial applications including, energy, advertising, and risk management, as well as new mapping services contracts both domestically and internationally,” said Mr. Oseth.
For the fourth quarter 2012, Intermap reported total revenue of $7.6 million, a 58% increase from $4.8 million last year. Contract services revenue in the fourth quarter increased 26% to $2.9 million from $2.3 million last year. Data licensing revenue increased 88% to $4.7 million from $2.5 million last year. As of December 31, 2012, there remained $14.8 million in backlog contracts ($14.3 million in contract services, and $0.5 million in data licensing contracts) to be recognized in future periods. Fourth quarter net earnings improved significantly to $1.0 million, or $0.01 per share, compared with a net loss of $4.5 million, or ($0.06) per share last year.
Fourth quarter adjusted EBITDA, a non-GAAP and IFRS financial measure, was $2.7 million, compared with a loss of $2.0 million last year. Adjusted EBITDA excludes restructuring costs, share-based compensation expense, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
For the fourth quarter 2012, personnel expense was $2.9 million, a 22% decrease from $3.7 million last year. The decrease was primarily due to workforce reductions associated with the Company’s restructuring activities during 2011.
For the fourth quarter 2012, purchased services and materials expense was $1.3 million, a 48% decrease from $2.5 million last year. The decrease was primarily due to a decrease in job and subcontractor expenses associated with a large contract services project in Southeast Asia during 2011, with no similar project at the same stage of completion during the current 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).
For the year ended December 31, 2012, Intermap reported total revenue of $27.8 million, a 15% increase from $24.1 million for 2011. Contract services revenue for the year increased 10% to $11.9 million from $10.8 million last year. Data licensing revenue increased 20% to $15.9 million from $13.3 million last year. For the year 2012, net loss was reduced to $2.9 million, or ($0.04) per share, compared with a net loss of $13.6 million, or ($0.19) per share last year.
Adjusted EBITDA for the year improved by $9.5 million to positive $5.0 million, compared with a loss of $4.5 million for 2011.
For the year ended December 31, 2012, personnel expense was $12.9 million, a 24% decrease from $17.0 million last year. The year-over-year decrease is primarily due to workforce reductions associated with the Company’s restructuring activities during 2011. The amount shown for 2011 includes $1.3 million of severance and termination expenses.
For the year ended December 31, 2012, purchased services and materials expense was $7.4 million, a 27% decrease from $10.2 million last year. Increased job and subcontractor expenses associated with a large contract services project in Southeast Asia during 2011 was primarily the reason for the difference in this category of expenditures on a year-over-year basis.
The cash position of the Company at December 31, 2012 (cash and cash equivalents) was $2.1 million, compared to $0.6 million at December 31, 2011. Amounts receivable and unbilled revenue at December 31, 2012 was $8.4 million, compared to $6.4 million at December 31, 2011. Working capital improved to $1.9 million at December 31, 2012, compared to ($1.0) million at December 31, 2011 (see “Intermap Reader Advisory” below).
Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
Fourth Quarter Business Highlights
The Company announced a $2.3 million and related $0.5 million 3D business intelligence solutions contact during the quarter. The combined contracts are for the initial phase of a program where Intermap will design, build, and deliver 3DBI solutions for an Asia based customer. The solutions will enable a national spatial information database designed to be delivered via the cloud, or on an appliance in the client’s data center. The initial phase includes the sale of NEXTMap data to be used for area of interest analysis and feature extraction. A follow-on phase(s) is expected to be used for the creation of custom data layers, the fusion of specialized data sets, and the creation of a RiskProTM web-based application.
The Company announced a $450,000 NEXTMap licensing contract for selected areas in North America. The NEXTMap data was purchased by a company that specializes in the property insurance industry for use within their claims management solutions.
Subsequent to year-end, in January 2013 the Company announced a $14.5 million contract to provide defined geospatial solutions to an international customer. Under the terms of the award, Intermap was selected to provide elevation and imagery related information for identified areas in Southeast Asia. The Company will use its proprietary airborne radar technology to collect and process the 3D digital models of the selected areas.
As of March 11, 2013, there were 79,414,013 common shares outstanding.
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. Detailed financial results and management’s discussion and analysis can be found on SEDAR at: www.sedar.com.
About Intermap Technologies
Headquartered in Denver, Colorado – Intermap (www.intermap.com) is an industry leader in geospatial solutions on demand. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of GIS data into a single source, Intermap is able to provide geospatial solutions for customers in diverse markets around the world that solve today’s complex geospatial challenges.
