USA: Intermap Technologies Corporation has reported the award of a $2.9m U.S. Government Task Order, which it expects to complete in 2019. It further reported financial results for the first quarter ended March 31, 2019.
Including this task order, by the close of this year, Intermap will have earned over $40m by collecting new geospatial data in support of the Alaska Statewide Digital Mapping Initiative. “This successful multi-year campaign to remap the nation’s last frontier with consistent excellent performance serves as a powerful public demonstration of Intermap’s cutting edge, multi-sensor collection capabilities”, commented Patrick Blott, Chairman & CEO. “We look forward to bundling our leadership in sensors with our additional capabilities in data management, geospatial software and analytics, to advance future government projects, particularly those dealing with austere environments and difficult terrain.”
Throughout its history, Intermap’s revenue has been generated through a significant amount of government contracting, characterized by long sales cycles, competitive bidding, large up-front mobilization and deployment costs, and uncertainty with respect to changing government requirements and administrations, both foreign and domestic. These project cycles require the Company to have sufficient working capital funding to bridge periods of contract pursuit, pipeline development, project performance, technology upgrades and cash collection. The Company is continuing the formal process to review its strategic alternatives. There can be no assurances regarding the outcome of this process, which may include new debt financing, a restructuring of existing claims, a sale of all, or some of the Company’s assets, or no further action.
All amounts in this news release are in United States dollars, unless otherwise noted.
For the first quarter of 2019, Intermap reported revenue of $840 thousand, cash flow from operations of positive $283 thousand, and an operating loss of $2.2m, compared to revenue of $3.4m and operating income of $21 thousandfor the first quarter of 2018. Acquisition services revenue during the first quarter of 2019 decreased $1.9m from the same period in 2018 due to U.S. Government contract timing.
Software and solutions revenue increased 15% to $633 thousand for the quarter, compared to the same period last year. Commercial subscriptions have increased 24% on a quarter-over-quarter basis.
First quarter adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was negative $1.8m, compared to positive $0.4m for the same periods last year. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and excludes non-recurring and non-cash payments. Adjusted EBITDA is not a recognized performance measure under IFRS. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net loss. See Non-IFRS Measures below for a reconciliation of the Company’s net loss to adjusted EBITDA for the first quarter of 2019 as compared to the same period for 2018. The decrease in adjusted EBITDA is consistent with the decrease in acquisition services revenue.
The Company finished the first quarter with $1.1m of cash, compared to $1.3mat December 31, 2018.
The Company’s consolidated financial statements and management’s discussion and analysis will be filed on SEDAR . Important factors, including those discussed in the Company’s regulatory filings could cause actual results to differ from the Company’s expectations and those differences may be material.
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 loss.