Intermap Reports Progress and Strong Revenue Growth in Q1
[ Back ]   [ More News ]   [ Home ]
Intermap Reports Progress and Strong Revenue Growth in Q1

CALGARY, Alberta—(BUSINESS WIRE)—May 14, 2007— Intermap Technologies Corporation (the "Company") (TSX: IMP) (AIM:IMAP), today reported financial results for the first quarter ended March 31, 2007. A conference call will be held today at 11:00 am EDT to discuss the results.

Financial Review

All amounts in this news release are in U.S. dollars unless otherwise noted.

For the first quarter, Intermap reported an increase in total revenue to $6.2 million, as compared to total revenue of $2.1 million for the same period in 2006. The increase was the result of revenue recognized on a number of contract services projects. The contract services revenue component of total revenue in the first quarter increased to $5.2 million, compared to $1.0 million for the first quarter of 2006, reflecting an increase in fee-for-service work in Asia.

The Multi-Client Data License revenue component of total revenue for the quarter was constant year-over-year at $1.1 million. Approximately 76% of the MCDL revenue was associated with the Company's NEXTMap USA program, primarily in the areas of California, Texas and Arizona.

Cost of services expense for the first quarter ended March 31, 2007 increased to $1.3 million, compared to $0.8 million for the same period in 2006, reflecting an increase in the costs associated with increased contract services work and preparation costs associated with future mapping activities.

Sales, general and administrative expenses for the first quarter were $5.3 million, compared to $3.3 million for the same period in 2006. The increase was related to the overall expansion of the Company's sales, marketing and business development to support its NEXTMap USA and NEXTMap Europe programs.

Amortization expense of the multi-client data library in the first quarter increased to $0.9 million, from $0.6 million for the same period in 2006, as a result of the increase in amortization on the NEXTMap USA dataset. Amortization of the NEXTMap USA dataset totaled $3.1 million for the twelve month period ended December 31, 2006. When factoring out the significant depreciation and amortization incurred during the period, the Company reported negative EBITDA of $1.3 million for the first quarter of 2007.

For the first quarter of 2007, Intermap reported a net loss of $2.8 million, or ($0.08) per share, compared to a net loss of $2.7 million, or ($0.08) per share for the same period in 2006.

Cash and cash equivalents at March 31, 2007 were $39.7 million, as compared with $48.2 million at December 31, 2006. The Company's working capital was $44.0 million, compared with $51.0 million at December 31, 2006.

"During the first quarter we collected an additional 456,000 square kilometers of data for our NEXTMap USA project, bringing the total collected to date to 2.5 million square kilometers," stated Brian Bullock, president and CEO of Intermap. "We also increased our processing resources for the enormous amount of NEXTMap data being collected. In addition, during the first quarter we announced a record number of new contract services awards amounting to approximately $11.0 million. One of our aircraft data collection systems was utilized for contract services work during Q1 and will again in Q2, providing additional cash flow as the projects are completed. This assists in funding our NEXTMap initiatives. The other three aircraft will collect a record amount of NEXTMap data in 2007."

MultiMedia Computer s.r.o. Acquisition

On March 1, 2007, Intermap acquired the shares and ongoing operations of MultiMedia Computer s.r.o. (MMC). The acquisition enables Intermap to enhance its product offerings from strictly data sales to solution-based sales for specific markets.

"The acquisition of MMC allows us to deliver complete geospatial solutions to our customers and partners within a variety of diverse markets. For example, MMC's technological expertise will help propel Intermap into not only the flood insurance market, but also into the emerging recreational PND and advanced driver assistance systems arenas. Additionally, MMC will support our continued efforts to bundle progressive solutions for existing enterprise and government markets," commented Mr. Bullock.

Web-based 3D Visualization

The enormous growth of Web-based mapping applications is driving an increasing demand for higher quality data that can both improve the user experience and enable new higher value applications. Ultimately, the quality of the data is what will separate providers in this space.

In February 2007, Intermap announced an agreement to provide Microsoft Corp. with its NEXTMap Britain digital elevation data for use within Microsoft's Virtual Earth platform. The agreement enables Microsoft to create and deliver a Live Search Maps product powered by the most current and accurate digital terrain model of Great Britain.

NEXTMap Europe Progress

In 2006, Intermap announced its intention to accelerate its NEXTMap Europe project with the collection of the entire dataset expected to be completed by the end of 2007. Driven by demand within the European automotive, government, and insurance sectors, the final processing and editing of the project is expected to be complete and available for sale shortly thereafter in 2008.

NEXTMap Europe calls for the mapping of 17 European countries, including Austria, Belgium, Czech Republic, Denmark, England, France, Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern Ireland, Portugal, Spain and Switzerland. England, Scotland, and Wales have already been completed and the data collection of Germany was completed in 2006. Priority of data collection in Europe will be given to areas with the strongest customer demands. Once completed, these datasets will be the most accurate 3D digital maps of Europe in existence.

During 2006, approximately 487,000 square kilometers of data was collected in Europe including all of Germany which is the fourth country mapped in its entirety under the Company's NEXTMap Europe program. NEXTMap Germany will be available for licensing in 2007. "As individual countries are completed during 2007 in Europe, we expect additional revenue opportunities will develop that will increase the overall financial performance of the Company," stated Mr. Bullock. The Company processed 138,000 square kilometers of NEXTMap Europe data in the first quarter. No additional data was collected in Europe during the first quarter of 2007.

NEXTMap USA Progress

Intermap continues to progress on its largest project, NEXTMap USA. The project includes terrain elevation and imagery data accurate to one-meter or better, covering nearly eight million square kilometers of the United States.

Since the inception of the project, approximately 2.5 million square kilometers of data has been collected. The Company expects to have the collection portion of the NEXTMap USA project completed by the end of 2008. The net book value of the NEXTMap USA data as of March 31, 2007 was $30.8 million.

"We are continuing the ramp-up of our NEXTMap USA project with full capacity expected to be in place during the second quarter," said Mr. Bullock. "We expect to complete the collection of the project by the end of 2008 with 100% of the fully processed and edited data completed and ready for sale during 2009. As part of this ramp-up, an additional Learjet aircraft was purchased during 2006 and a second King Air aircraft was leased. Both are now at work on NEXTMap USA."

Currently, Intermap has data available off-the-shelf for 512 counties in the U.S. The Company expects a continued increase in license revenues in 2007 as marketing activities generate interest from new NEXTMap USA customers. Through March 31, 2007, total cumulative license revenue for NEXTMap USA data was approximately $8.2 million.

Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at www.sedar.com.

Conference Call Details

A slide presentation accompanies Intermap's conference call on May 14 at 11:00 a.m. ET (9:00 a.m. MT, 4:00 p.m. GMT). Please download the presentation "IMP_Q1_Quarterly_Call_May_07" to your computer in advance of the call from ftp1.intermaptechnologies.com (copy and paste the file into your browser).

Username: Client 18

Password: qreports1 (Password is case sensitive)

For security reasons this FTP site will be active until May 31, 2007.

To participate in the call, please dial 416-644-3417 or 1-800-732-9303 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through May 21, 2006. Please dial 416-640-1917 or 1-877-289-8525 and provide the password 21232148# to listen to the rebroadcast. An audio webcast of the teleconference will also be available on Intermap's website.

About Intermap Technologies

Intermap enables customers to facilitate better decision-making and create applications for numerous commercial, governmental, military, and consumer products through the purchase of high quality and affordable 3D geometric datasets. The Company is proactively remapping entire countries and building unprecedented national databases, called NEXTMap, consisting of highly accurate digital geometric maps that include elevation data.

Demand for NEXTMap data is growing as new commercial applications are emerging, including geographical information systems (GIS), engineering planning, transportation, automotive, navigation, flood, irrigation, environmental management and planning, telecommunications/wireless network planning, aviation, simulation, and 3D visualization. Internet applications include virtual tours, topographic maps and computer games. Datasets are also used to add interactive intelligence to airborne and satellite imagery.

Headquartered in Denver, Colorado, Intermap employs more than 450 people worldwide, with additional offices in Calgary, Detroit, Jakarta, London, Munich, Ottawa, and Prague. For more information, visit www.Intermap.com.

(R) NEXTMap is a registered trademark of Intermap Technologies Corporation

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Intermap's control, including: the impact of general economic conditions, industry conditions, increased competition, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Intermap's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, 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, including the amount of proceeds that Intermap will derive therefrom.
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Balance Sheets
(In thousands of United States dollars)

                                               March 31,  December 31,
                                                 2007         2006
----------------------------------------------------------------------
                                              (unaudited)
Assets

Current assets:
 Cash and cash equivalents                    $   39,703   $   48,170
 Amounts receivable                                6,845        8,177
 Unbilled revenue                                  2,741        2,477
 Work in process                                     391            -
 Prepaid expenses                                  1,304          850
----------------------------------------------------------------------
                                                  50,984       59,674

Property and equipment                            20,535       19,755
Multi-client data library                         35,499       32,402
Intangible assets                                  2,071            -
Future income tax asset                                -           23
----------------------------------------------------------------------
                                              $  109,089   $  111,854
----------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable and accrued liabilities     $    5,163   $    6,003
 Deferred lease inducements                          198          120
 Deferred revenue                                    932        1,715
 Income taxes payable                                 35           30
 Current portion of obligations under capital
  lease                                              178          231
 Current portion of long-term debt                   469          538
 Non-controlling interest                              -           14
----------------------------------------------------------------------
                                                   6,975        8,651

Deferred lease inducements                           528          468
Obligations under capital lease                      139          165
Long-term debt                                     1,174        1,242
Future income tax liability                          473            -
----------------------------------------------------------------------
                                                   9,289       10,526
----------------------------------------------------------------------

Shareholders' equity:
 Share capital                                   123,387      122,458
 Contributed surplus                               2,765        2,387
 Deficit                                         (32,546)     (29,711)
 Accumulated other comprehensive income            6,194        6,194
----------------------------------------------------------------------
                                                  99,800      101,328
----------------------------------------------------------------------

----------------------------------------------------------------------
                                              $  109,089   $  111,854
----------------------------------------------------------------------

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(In thousands of United States dollars, except per share information)

                                                 For the 3 months
                                                  ended March 31,
                                                 2007         2006
----------------------------------------------------------------------
                                             (unaudited)  (unaudited)
Revenue:
 Contract services                           $     5,161  $       998
 Multi-client data licenses                        1,078        1,132
----------------------------------------------------------------------
                                                   6,239        2,130
Operating costs:
 Cost of services                                  1,270          768
 Research and development                            829          484
 Sales, general and administrative                 5,335        3,334
 Depreciation of property and equipment            1,165          697
 Amortization of multi-client data library           907          592
 Amortization of intangible assets                    36            -
----------------------------------------------------------------------
                                                   9,542        5,875
----------------------------------------------------------------------
Loss before interest, income taxes and
 foreign exchange                                 (3,303)      (3,745)

Interest expense                                     (38)         (49)
Interest income                                      571          552
(Loss) gain on foreign currency translation          (47)         571
----------------------------------------------------------------------

Loss before income taxes                          (2,817)      (2,671)

Income tax expense (recovery)
 Current                                              27            -
 Future                                               (9)           -
----------------------------------------------------------------------
                                                      18            -
----------------------------------------------------------------------

Net loss and comprehensive loss                   (2,835)      (2,671)

Deficit, beginning of period                     (29,711)     (18,638)
----------------------------------------------------------------------
Deficit, end of period                       $   (32,546) $   (21,309)
----------------------------------------------------------------------

Basic and diluted loss per share             $     (0.08) $     (0.08)
----------------------------------------------------------------------

Weighted average number of Class A common
 shares - basic and diluted                   37,057,585   34,821,872
----------------------------------------------------------------------

INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
(In thousands of United States dollars)

                                                For the three months
                                                   ended March 31,
                                                   2007        2006
----------------------------------------------------------------------
                                               (unaudited) (unaudited)
Cash and cash equivalents (used in) provided
 by:

Operations:
 Net loss                                       $  (2,835)  $  (2,671)
 Items not involving cash:
  Depreciation of property and equipment            1,165         697
  Amortization of multi-client data library           907         592
  Amortization of intangible assets                    36           -
  Stock based compensation expense                    465         142
  Amortization of deferred lease inducements          (17)        (33)
  Future income taxes                                  (9)          -
 Change in non-cash operating working capital      (1,193)        912
----------------------------------------------------------------------
                                                   (1,481)       (361)
----------------------------------------------------------------------

Financing:
 Proceeds from issuance of common shares              342       9,930
 Issuance costs                                         -          (1)
 Deferred lease inducements                           151           -
 Repayment of long-term debt                         (137)       (140)
 Repayment of obligations under capital lease         (79)        (53)
----------------------------------------------------------------------
                                                      277       9,736
----------------------------------------------------------------------

Investments:
 Purchase of property and equipment                (2,386)     (3,514)
 Investment in multi-client data library           (3,547)     (2,707)
 Business acquisition cost, net of cash
  acquired                                         (1,330)          -
----------------------------------------------------------------------
                                                   (7,263)     (6,221)
----------------------------------------------------------------------

(Decrease) increase in cash and cash
 equivalents                                       (8,467)      3,154

Cash and cash equivalents, beginning of period     48,170      63,492

----------------------------------------------------------------------
Cash and cash equivalents, end of period        $  39,703   $  66,646
----------------------------------------------------------------------

Supplemental cash flow information:
 Cash paid for interest                         $      38   $      49

 Cash paid for income taxes                     $      35   $       5
----------------------------------------------------------------------


Contact:

Intermap Technologies
Richard Mohr, 303-708-0955
Senior Vice President & Chief Financial Officer
Email Contact
or
E-vestor Communications Inc.
Corbet Pala, 416-657-2400 (Canada ®�“ Financial)
Investor Relations
Email Contact
or
Genesis Select Corporation
Budd Zuckerman, 303-415-0200 (United States ®�“ Financial)
Investor Relations
Email Contact
or
Canaccord Adams Limited
Neil Johnson or Clayton Bush, +(44) (0) 20 7518 2777
(United Kingdom ®�“ AIM, Nominated Advisor)


Rating: