Intermap enters settlement agreement on Vertex Notes; announces contract with NOAA
Upon the delivery of a US$1m cash payment, Vertex/Pender shall release liens, extinguish the Notes, and the parties shall provide for a general release from all claims associated with the Vertex financings.
Intermap enters settlement agreement on Vertex Notes; announces contract with NOAA
Intermap Technologies today announced an Amended Settlement Agreement, covering all the outstanding Vertex Notes, has been executed with Pender Funds. Under the terms of the Settlement, all of the outstanding Notes totaling US$33.9 million shall be settled for US$1 million in cash. Upon the delivery of a US$1m cash payment, Vertex/Pender shall release liens, extinguish the Notes, and the parties shall provide for a general release from all claims associated with the Vertex financings.
In addition, the Company announced preliminary, unaudited results for the first quarter of 2020 and an update on its data services business. Intermap also announced today it was selected by National Oceanic and Atmospheric Administration (NOAA) as a member of the Dewberry team for the agency’s Shoreline Mapping Services contract. The five-year, indefinite delivery/indefinite quantity (IDIQ) contract has a ceiling of $40 million and will enable Intermap to provide SAR and IFSAR services for NOAA’s National Geodetic Survey initiative to protect the nation’s coasts.
Dewberry is one of four prime contractors and completed 30 task orders during the previous shoreline mapping services contract for NOAA. Intermap is the sole SAR and IFSAR provider on the Dewberry team and has supported the team for over 10 years on other programs such as U.S. Geological Survey (USGS) Alaska Mapping Initiative (AMI) and 3D Elevation Program (3DEP).
Further, the State of California signed a subscription for Intermap’s NEXTMap One terrain data-as-a-service, becoming Intermap’s first government customer subscriber. The State of California can now access the world’s most complete and highest-accuracy, contiguous global 1m dataset. Intermap leverages its patented IRIS platform to generate and update high-resolution datasets around the world which support world-class digital infrastructure.
By subscribing to the Company’s unique data-as-a-service program, California is able to access 1m resolution surface and terrain models for all state users and use cases, as needed. To purchase the data outright for future use, at the level of accuracy and acuity required to solve modern data challenges, would be prohibitively expensive. In contrast, Intermap’s subscription model ensures that the state’s entire strategic data infrastructure is affordably maintained and always current, complete and available where it’s needed.
In commercial markets, Intermap signed an initial contract with Jeppesen, a leading provider of airspace solutions, to support their digital infrastructure with orthorectification of satellite imagery as-a-service, covering 200 airports. Leveraging the NEXTMap One global terrain data and Intermap’s cost-effective as-a-service model for delivery directly into their workflow, Jeppesen receives unparalleled Ortho accuracies suitable for commercial air safety, produced in near real-time, and delivered at a fraction of the cost typically offered by commercial satellite and other vendors.
“Intermap’s data-as-a-service business provisions products to support real-time, actionable decision-making, for expert and non-expert users alike, at the edge, where and when reliable data is most needed, with continually updated data delivered seamlessly and directly into client workflows,” commented Patrick A. Blott, Chairman and CEO of Intermap Technologies.
“Intermap’s debt restructuring and repositioning for growth reflect continued success targeting the Company’s traditional terrain data markets with innovative new products and services, including: InsitePro for Insurance; NEXTView for Aviation; NEXTMap One for Government; and dual-use services such as IRIS multi-source data fusion, triple-canopy FOPEN for cloud-belt collection, and GPS restricted or denied Data and Ortho provisioning in austere environments.
We are pleased with the progress in development of the upcoming NEXTWave applications suite, which will support the Defense, Finance, Railway and Telco sectors. These new products and services leverage and complement Intermap’s traditional special mission collection and digital infrastructure offerings, and provide customers with greater value for less cost, while generating predictable, recurring-revenue from both our government and commercial clients.”
Consolidated revenue for the quarter ended March 31, 2020 totaled $1.6 million, compared with $0.8 million for the same period in 2019. Approximately 69% of consolidated revenue was generated outside the United States, compared with 53% for 2019. Acquisition services revenue for the quarter ended March 31, 2020 totaled $0.8 million, compared with $Nil million for the same period in 2019. The increase is due to the nature and timing of government contracting.
Value-added data revenue remained steady at $0.2 million for both quarters ended March 31, 2020 and 2019. Software and solutions revenue also remained flat at $0.6 million for both quarters ended March 31, 2020 and 2019. The Company recognized a 11% increase in subscription-based revenue, which was offset by the intentional cancellation of customers using our products in competing markets. The following table sets forth selected financial information for the periods indicated.
|U.S. $ millions, except per share data||March 31, 2020||March 31, 2019|
|Software and solutions||0.6||0.6|
|EPS basic and diluted||$||(0.10)||$||(0.17)|
|Cash, trade receivables, unbilled revenue||$||1.9||$||3.1|
|Long-term liabilities (including lease obligations)||$||0.2||$||30.1|
The Company’s consolidated financial statements and management’s discussion and analysis will be filed on SEDAR at: www.sedar.com.
Adjusted EBITDA for the quarter ended March 31, 2020 was negative $0.6 million, compared with negative $1.8 million for the same period in 2019. The improvement in adjusted EBITDA is primarily attributable to the increase in revenue. 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. A reconciliation of net loss to Adjusted EBITDA is provided in the table below.
|Three months ended|
|U.S. $ millions||2020||2019|
|Depreciation of property and equipment||0.3||0.3|
|Depreciation of right of use assets||0.1||0.1|
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking statements. The words “anticipate”, “expect”, “project”, “estimate”, “forecast”, “will be”, “will consider”, “intends” 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.
Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap’s 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. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is not a recognized performance measure under IFRS.
The term EBITDA consists of net income (loss) and excludes interest (financing costs), taxes, and depreciation. Adjusted EBITDA also excludes share-based compensation, restructuring costs and related non-recurring payments supporting the corporate restructuring, and other non-operating gains or losses. 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 or gains that are nonrecurring. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is net income (loss).