All amounts in this news release are in United States dollars unless otherwise noted.
Intermap reported total revenue of $2.1 million for the first quarter of 2014, compared to $5.1 million recorded in the same period of 2013. Net loss for the first quarter of 2014 was $3.8 million, or ($0.04) per share, compared to a net loss of $2.0 million, or ($0.03) per share, for the first quarter of 2013. First quarter adjusted EBITDA, a non IFRS financial measure, was a loss of $3.6 million, an increase from an adjusted EBITDA loss of $0.1 million for the same period in 2013. Adjusted EBITDA excludes restructuring costs, share-based compensation, gain or loss on the disposal of equipment, and gain or loss on foreign currency translation.
"Our focus for the quarter was the further development of our 3DBI® software applications. Major progress was achieved with all three of our applications - AdPro®, InsitePro™ and GeoPro™. These products address a combined worldwide market more than $1 billion annually, and each of these applications have unique geospatial advantages," said Todd Oseth, President & CEO of Intermap. "Our AdPro application now includes key analytics from the Traffic Audit Bureau (TAB) for Media Management, the industry backed entity that creates key metrics for the outdoor advertising market. Our InsitePro product represents the further transformation of our insurance risk assessment application and now includes a new user interface, the ability to analyze thousands of locations at once, and the integration of a new world-wide flood model."
Mr. Oseth added, "In addition to the progress with our 3DBI software applications, we continue to have success expanding our professional services offerings with new contracts that allow us to create value added products for our customers through the use of third party sensors and our class leading aggregation and data processing capabilities. We also report progress towards the closing of an Orion Platform™ spatial data infrastructure contract. These contracts are complicated and typically carry long sales cycles due to the magnitude of the contracts, politics, budget timing and funding mechanisms. We are optimistic that we will be able to announce the signing of one or more of these contracts this year."
Consolidated revenue for the first quarter of 2014 totaled $2.1 million and included (i) $0.9 million in mapping services, (ii) $0.4 million in professional services, (iii) $0.6 million in data licensing, and (iv) $0.2 million in 3DBI software licensing. For the same period in 2013, consolidated revenue totaled $5.1 million and included (i) $4.0 million in mapping services, (ii) nil in professional services, (iii) $1.0 million in data licensing, and (iv) $0.1 million in 3DBI software licensing. During the first quarter of last year, $4.0 million of mapping services revenue was recognized on a new $15.0 million contract that was closed during that quarter. No similar sized contract was closed during the first quarter of the current year. Contract backlog at the end of the quarter totaled $0.4 million.
For the first quarter of 2014, personnel expense was $3.2 million, compares to $3.3 million last year. The decrease was primarily due to reduced commission expense consistent with decreased revenue recognized on a year-over-year basis.
For the first quarter of 2014, purchased services and materials expense was $1.6 million, compared to $1.0 million recognized during the same period last year. The increase in this category of expense is primarily due to increased subcontractor costs associated with the Company's software development activities, and secondarily from the use of contractors used for third-party data collection services associated with the Company's professional services business. Purchased services and materials includes (i) aircraft related costs, including jet fuel, (ii) professional and consulting costs, (iii) third-party support services related to the collection, processing and editing of the Company's data collection activities, and (iv) software expenses (including maintenance and support).
The cash position of the Company at March 31, 2014 (cash and cash equivalents) was $5.7 million, compared to $2.4 million at December 31, 2013. Amounts receivable and unbilled revenue at March 31, 2014 was $4.4 million, compared to $6.6 million at December 31, 2013. Working capital was $0.5 million at March 31, 2014, compared to $3.9 million at December 31, 2013 (see "Intermap Reader Advisory" below).
Detailed financial results and management's discussion and analysis can be found on SEDAR at: www.sedar.com.
First Quarter Business Highlights
Intermap announced that its NEXTMap® World 30™ product surpassed sales of $1.2 million during 2013, more
than 15 times the prior year's sales. World 30 is the world's first and
only seamless digital map of the entire earth with a global accuracy of
7-meters. The latest version of the World 30 product is up to three
times more accurate than competing global Digital Elevation Models
(DEMs) such as NASA's Shuttle Radar Topography Mission (SRTM) data, and
Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER)
Global Digital Elevation Model (GDEM). The World 30 dataset integrates
seamlessly with Intermap's Orion Platform and provides a foundation
data layer for the Company's web-based 3DBI applications including
flood planning, advertising, telecommunications, and risk management.
World 30 enables the immediate delivery of the Company's 3DBI
applications anywhere in the world.
Intermap announced that it completed a private placement convertible
debt financing for aggregate proceeds of US $5.0 million. The debt
financing matures 12 months from the date of issuance and the principal
amount is convertible into 12,367,054 common shares of the Company at
each of the Holder's option. Simple interest is payable at maturity at
a rate of 16.0%. If the principal amount is converted into common
shares, any interest payable on such principal amount shall be
forgiven. In addition, an aggregate of 3,091,572 warrants were issued
to a holder of the convertible debt entitling such holder to purchase
up to 3,091,572 common shares at a price of C$0.56 per share. The
warrants expire in three years and are subject to adjustment in certain
The debt financing is subject to a prepayment right by the Company at 116% of the principal amount at any time following six months from the date of closing, subject to a 60 day notice period and each of the holder's right to exercise its conversion rights during any such notice period.
The proceeds of the debt financing will be used by the Company to accelerate the development and market introduction of its InsitePro and GeoPro 3DBI software products for governments, enterprises and consumers.