Intermap Technologies Corporation

Intermap Technologies Corporation

March 17, 2005 16:01 ET

Intermap Reports 2004 Year-End Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERMAP TECHNOLOGIES CORPORATION

TSX SYMBOL: IMP

MARCH 17, 2005 - 16:01 ET

Intermap Reports 2004 Year-End Financial Results

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) -

NEXTMap data licensing gains momentum

Intermap Technologies Corporation (TSX:IMP), today reported fourth
quarter and year-end results for the periods ended December 31, 2004.

Total revenues for the year ended December 31, 2004, were $21.7 million
as compared to revenues of $40.6 million in 2003. Comparative sales
results for 2004 demonstrated both the volatility of Intermap's
traditional contract services business, and the value of revenue
consistency from the Company's new NEXTMap licensing business model. For
the year, Intermap experienced an increase in licensing revenues from
sales of its NEXTMap database to $7 million, an increase of over 300% as
compared to 2003. Intermap's new business model (NEXTMap) is based on
building archived databases of complete national digital elevation and
terrain maps, then licensing the data to multiple customers for varied
applications. The growth of NEXTMap revenues partially offsets the
decline in contract services revenue for the year, and contributed 32%
of total revenues. Intermap reported a net loss for the year of $5.5
million, or ($0.38) per share, as compared to net income of $3.3
million, or $0.31 per share in 2003.

Cash and cash equivalents at December 31, 2004, were $4.3 million, as
compared with $1.5 million at December 31, 2003. For the year, the
Company invested approximately $9 million into building the NEXTMap
multi-client data library, primarily in the United States. At December
31, 2004, the Company's working capital was $6.0 million compared with
$5.1 million at December 31, 2003.

For the fourth quarter ended December 31, 2004, Intermap reported total
revenues of $2.1 million and a net loss of $4.0 million, or ($0.25) per
share, as compared to revenues of $8.2 million and net income of
$41,000, or $0.00 per share, for the same period in 2003. Revenues in
the fourth quarter were lower than expected as revenue opportunities
totaling approximately $3.0 million for the quarter were delayed until
2005.

"While contract services work was lower last year, we are once again
looking at several large scale projects for 2005 as a result of recent
global events including the tsunami in South East Asia, and the ongoing
war on terror," said Brian Bullock, President & CEO of Intermap. "Funds
that have been allocated for projects that Intermap is competing for in
2005 are twice what we saw in 2004. As a result, we are looking for
noteworthy growth in contract services revenue over last year."

Contract services work helps fund the build out of the NEXTMap database.
As Intermap continues the transition of its business model, deriving an
increasing portion of its revenues through NEXTMap data license sales,
the Company expects more consistent and predictable revenues than the
Company's traditional contract services model.

NEXTMap license revenue increased substantially in 2004. Management
views 2004 as the pivotal year in the transition of the Company's
business model. Throughout 2004, Intermap made a large commitment to the
build out of NEXTMap USA. The initiative became a priority following the
success of NEXTMap Britain in 2003, which has produced revenues of $15
million to date. The Company has now invested more than $10 million into
NEXTMap USA, collecting data covering more than 562,000 square
kilometers of the continental United States as of December 31, 2004 -
the equivalent of two NEXTMap Britain databases. The Company intends to
have California, Florida and Mississippi completed this year for
licensing to customers.

The majority of the multi-client data license sales in 2004 were derived
from the NEXTMap Britain initiative, which was completed in 2003.
Intermap embarked on NEXTMap USA in late 2003, which will generate
national U.S. terrain elevation and imagery database accurate to one
meter or better. Intermap continues to work with commercial and
government customers to co-sponsor the development of the NEXTMap USA
database.

In September 2004, Intermap received a subscription contract from the
National Oceanic and Atmospheric Administration (NOAA) for Intermap's
NEXTMap USA coastal data. Under the contract, Intermap will provide NOAA
with NEXTMap USA imagery and elevation map data for regions in Florida,
Alabama, Louisiana and Mississippi. This is the first phase of a planned
multi-year program that is anticipated to include the purchase of
NEXTMap data for the entire coastline of the continental United States,
valued at U.S. $5.5 million dollars. The Company reports that two other
national contracts are currently under negotiation.

A substantial amount of working capital was invested in increasing the
production throughput to support the data volumes required for NEXTMap
USA. As a result, Intermap's processing capacity in 2005 is
approximately twice that of 2003. In addition to increasing capacity,
Intermap has reduced the cost of production for NEXTMap USA by
approximately 50% compared with the costs in NEXTMap Britain. The
Company expects additional reductions in 2005.

Conference Call

A conference call to review the results will take place the same day
5:00pm., ET (3:00 p.m. MT). Brian Bullock, President and CEO and Richard
Mohr, CFO will speak on behalf of the Company. A question-and-answer
period will follow a review of the financial results and update on the
Company's strategies and progress on its NEXTMap business model.
Detailed financial results for the quarter and management's discussion
and analysis can be found on SEDAR, at www.sedar.com.

To participate in the call, please dial 416-695-9701 or 1-888-333-4519
approximately 10 minutes prior to the conference call. A recording of
the conference call will be available through March 26. Please dial
416-695-5275 or 1-866-518-1010 to listen to the rebroadcast. After this
date, the recorded call will be available at www.intermap.com.

About Intermap

Intermap is digitally remapping entire countries, building unprecedented
national databases, called NEXTMap, of highly accurate digital
topographic maps (including elevation). Customers purchase Intermap's
high-quality, low-cost data to facilitate better decision-making for
numerous commercial, government, military, and consumer applications.

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 network
planning, aviation, simulation and 3D visualization. Internet
applications include virtual tours, topographic maps and computer games.
The products are also used to add interactive intelligence to airborne
and satellite images.

Headquartered in Denver, Colorado, Intermap employs more than 250 people
worldwide, with offices in Calgary, Ottawa, Munich and Jakarta. Intermap
is publicly traded on the TSX under the symbol IMP. For more
information, visit www.intermap.com.

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, the lack of availability of qualified
personnel or management, 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 proceed,
that Intermap will derive therefrom.



Intermap Technologies Corporation
Consolidated Statements of Operations and Deficit
(In Thousands of Canadian dollars)

Three Three
months months Year Year
ended ended ended ended
Dec 31, Dec 31, Dec 31, Dec 31,
2004 2003 2004 2003
------------------------------------------------------------------------
Revenue:
Contract services $ 795 $ 8,079 $ 14,777 $ 38,938
Multi-client data licenses 1,321 116 6,944 1,618
------------------------------------------------------------------------
2,116 8,195 21,721 40,556

Operating costs:
Cost of services 1,616 2,979 9,163 17,052
Research and development 331 380 1,380 1,388
Sales, general and administration 3,098 3,263 12,777 13,365
Depreciation of property
and equipment 748 879 2,817 3,349
Amortization of multi-client
data library 332 536 1,094 1,547
Gain on sale of property
and equipment -- -- -- (13)
------------------------------------------------------------------------
6,125 8,037 27,231 36,688

------------------------------------------------------------------------
Earnings (loss) before interest,
income taxes, and
non-controlling interest (4,009) 158 (5,510) 3,868

Income taxes
Current (recovery) (54) 11 (16) 68
Future -- -- 4 --
------------------------------------------------------------------------
(54) 11 (12) 68

Net earnings (loss)
before interest and
non-controlling interest (3,955) 147 (5,498) 3,800

Interest expense 30 106 198 548
Interest income (14) -- (154) --

------------------------------------------------------------------------
Net earnings (loss) before
non-controlling interest (3,971) 41 (5,542) 3,252

Non-controlling interest 11 -- 11 --
------------------------------------------------------------------------
Net earnings (loss) (3,960) 41 (5,531) 3,252

Deficit, beginning of period:
As previously reported (13,102) (10,841) (10,800) (14,052)
Adjustment to reflect the
change in accounting for
stock-based compensation -- -- (731) --
------------------------------------------------------------------------
As restated (13,102) (10,841) (11,531) (14,052)

------------------------------------------------------------------------
Deficit, end of period $(17,062)$(10,800)$(17,062)$(10,800)
------------------------------------------------------------------------
------------------------------------------------------------------------

Earnings (loss) per share:
Basic $ (0.25)$ 0.00 $ (0.38)$ 0.31
------------------------------------------------------------------------
------------------------------------------------------------------------

Fully diluted $ (0.25)$ 0.00 $ (0.38)$ 0.30
------------------------------------------------------------------------
------------------------------------------------------------------------


Intermap Technologies corporation
Consolidated Balance Sheets
(In thousands of Canadian dollars)

------------------------------------------------------------------------
------------------------------------------------------------------------
December 31, December 31,
2004 2003
------------------------------------------------------------------------
Assets

Current assets:
Cash and cash equivalents $ 4,304 $ 1,547
Amounts receivable 4,430 4,268
Unbilled revenue 1,082 5,402
Prepaid expenses 486 270
------------------------------------------------------------------------
10,302 11,487

Property and equipment 19,072 14,037

Multi-client data library 13,822 4,828

Future income taxes 22 26

Long-term investments 484 520

Deferred financing charges - 10
------------------------------------------------------------------------
$ 43,702 $ 30,908
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities and Shareholders' Equity

Current liabilities:
Bank loan $ - $ 1,156
Accounts payable and accrued liabilities 3,462 4,208
Deferred lease inducements 151 -
Deferred revenue 63 131
Current portion of obligations
under capital lease 371 375
Current portion of long-term debt 240 545
------------------------------------------------------------------------
4,287 6,415

Deferred lease inducements 399 -

Obligations under capital lease 415 132

Long-term debt 441 2,027

Non-controlling interest 16 -

Shareholders' equity:
Share capital 53,712 33,010
Contributed surplus 1,494 124
Deficit (17,062) (10,800)
------------------------------------------------------------------------
38,144 22,334
Commitments and guarantees
------------------------------------------------------------------------
$ 43,702 $ 30,908
------------------------------------------------------------------------
------------------------------------------------------------------------


Intermap Technologies Corporation
Consolidated Statements of Cash Flows
(In Thousands of Canadian dollars)

Three Three
months months Year Year
ended ended ended ended
Dec 31, Dec 31, Dec 31, Dec 31,
2004 2003 2004 2003
------------------------------------------------------------------------
Cash and cash equivalents
provided by (used in):

Operations:
Net earnings (loss) $(3,960) $ 41 $ (5,531) $ 3,252
Items not involving cash:
Depreciation of property
and equipment 748 879 2,817 3,349
Amortization of multi-client
data library 332 536 1,094 1,547
Amortization of deferred
financing charges -- 9 10 17
Compensation expense 224 50 640 212
Gain on sale of property
and equipment -- -- -- (13)
Future income taxes (2) 7 4 7
Non-controlling interest (11) -- 11 --
Change in non-cash operating
working capital 3,517 3,054 3,132 1,297
------------------------------------------------------------------------
848 4,576 2,177 9,668

Financing:
Issuance of common shares 54 6 22,041 11
Security issuance costs -- -- (1,423) --
Deferred leasehold inducements 550 -- 550 --
Repayment of long-term debt , net (97) (253) (1,891) (1,490)
Repayments of bank loan -- (11) (1,156) (1,494)
Repayment of obligations
under capital lease (149) (102) (498) (433)
------------------------------------------------------------------------
358 (360) 17,623 (3,406)

Investments:
Purchase of property and equipment (1,700) (2,149) (8,186) (5,223)
Investment in multi-client
data library (3,579) (1,629) (8,977) (2,588)
Proceeds on disposal of
property and equipment -- -- -- 13
Proceeds on disposal of
long-term investments -- 60 120 120
------------------------------------------------------------------------
(5,279) (3,718) (17,043) (7,678)

------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents (4,073) 498 2,757 (1,416)

Cash and cash equivalents,
beginning of period 8,377 1,049 1,547 2,963

------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 4,304 $ 1,547 $ 4,304 $ 1,547
------------------------------------------------------------------------
------------------------------------------------------------------------



-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    E.vestor Communications Inc.
    Corbet Pala
    Investor Relations
    (416) 657-2400
    Email: cpala@evestor.com
    or
    Intermap Technologies
    Richard Mohr
    Chief Financial Officer
    (303) 708-0955, Ext. 214
    Email: rmohr@intermap.com
    or
    Genesis Select Corporation (UNITED STATES)
    Budd Zuckerman
    Investor Relations
    (303) 415-0200
    Email: bzuckerman@genesisselect.com