DENVER, Jan. 31, 2020 /PRNewswire/ - Intermap Technologies today announced preliminary unaudited financial results for the year ended December 31, 2019.
Government contracting is the Company's largest market, accounting for approximately 65% of revenue for the past five years. Contract cycles are long and governments around the world continue to make progress in the adoption of geospatial data as a service.
For the year ended December 31, 2019, the Company reported revenue of $10.1 million, compared with $15.8 million for 2018. Delays in government contracts affected both acquisition services and value-added data revenue. Software revenue was $1.4 million in 2019 compared to $1.0 million last year. Although growing well, the software segment is having difficulty achieving scale as the Company is inadequately capitalized to make further investments.
Adjusted EBITDA for 2019 was negative $0.9 million, compared with positive $2.1 million in 2018. The decline in Adjusted EBITDA for 2019 was related to carrying costs associated with the contract delays in Alaska and South East Asia.
The Company continues to build its contracted pipeline. Historically, the pipeline has required 30 months to convert to revenue. The Company is teamed with prime contractors and has been selected through competitive requests for proposals to participate in the National Geospatial-Intelligence Agency's Janus Geography contract, the US Geological Survey's Geospatial Products and Services Architect and Engineer IDIQ Contract, and the National Oceanic & Atmospheric Administration Coastal Mapping Program.
Andrew Hines has resigned as a director of the Company. The Board of Directors of Intermap thanks Mr. Hines for his contributions on behalf of the Company.
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. As previously disclosed in our quarterly reports, the Company's ability to continue as a going concern is dependent on management's ability to successfully secure sales with upfront payments, restructure the balance sheet (including a reduction of debt) and obtain additional financing.
Selected Annual Information
U.S. $ millions, except per share data
Software and solutions
Operating income (loss)
Cash, amounts receivable, unbilled revenue
Current portion of notes payable
Long-term liabilities (including finance lease obligations)
Reconciliation of Adjusted EBITDA
U.S. $ millions
Gain on settlement of promissory note
Loss on foreign currency translation
About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP) (ITMSF: BB) is a global leader in geospatial intelligence solutions. The Company's proprietary NEXTMap® database and value-added geospatial data management, processing, analytics, fusion and orthorectification software and solutions are utilized across a range of industries that rely on accurate, high-resolution elevation data, including aviation, engineering, environmental planning, government markets, hydrology, insurance, land management, law enforcement and patrol, oil and gas, renewable energy, telecommunications, transportation and utilities. Intermap's commercial applications include location-based intelligence, risk assessment, geographic information systems, global positioning systems and 3D visualization. For more information, please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release, including statements in relation to the Company's results or ability to continue as a going concern constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "will be" 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.
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SOURCE Intermap Technologies Corporation