2021 revenue grew 22%; fourth quarter revenue
grew 149% year-over-year and 69% sequentially
Company announces a private placement to
support its base shelf offering
New avionics subscription enables automated
landing of commercial aircraft
DENVER, Feb. 1, 2022 /CNW/ - Intermap Technologies (TSX:
IMP) (OTCQX: ITMSF) ("Intermap" or the "Company"), a global leader
in geospatial content and intelligence solutions, today announced
preliminary, unaudited fourth quarter and full year revenue for
2021. The Company's commercial and government businesses grew
significantly during the year, including subscriptions with major
insurance companies in the United
States and Europe, as well
as eight new government contracts.
Intermap's 2021 annual revenue totaled $5.8 million, an increase of 22% compared with
2020. Starting in the second quarter of 2021, the Company generated
three straight quarters of sequential revenue growth, increasing
from $1.2 million in the second
quarter to $2.3 million in the fourth
quarter. Intermap's fourth quarter revenue represented an increase
of 69% compared with the third quarter, primarily due to the easing
of COVID restrictions and significant growth from government
contract awards.
"We are pleased to report strong sequential and year-over-year
revenue growth for the fourth quarter and full year 2021," said
Patrick A. Blott, Intermap Chairman
and CEO. "Our commercial business continues to thrive, driven by
recurring subscriptions to insurance, telecom and aviation
solutions. 2021 marks an important
milestone in both of Intermap's U.S. government and commercial
businesses. We are now working with the U.S. Air Force, U.S.
Geological Survey and U.S. National Geospatial-Intelligence Agency
as we work to drive long-term sustainable growth and shareholder
value creation."
The Company's fourth quarter commercial revenue grew to
$1.14 million, up from $0.9 million in the fourth quarter of 2020 and
$0.98 million in the third quarter of
2021. Insurance revenue in the fourth quarter increased by 25%
compared with the fourth quarter of 2020 and 8% compared with the
third quarter of 2021, marked by the addition of new "admitted
carrier" subscriptions, an important addition to the customer base.
Intermap continues to add insurance subscribers in the U.S.,
including its first new subscription in 2022, and has extended its
penetration into the ratings market by offering pricing for flood
premiums. In Europe, Intermap is
expanding into new countries with its multinational client base.
Renewals in both insurance markets remain strong, with churn
remaining below 5%.
The Company's total value-added data revenue in 2021 was
$1.7 million, an increase of 82%
compared with 2020, reflecting the commencement of its new contract
with the U.S. National Geospatial-Intelligence Agency – the
world's largest and most and most sophisticated consumer of
geospatial solutions – to develop low latency foundation data. A
significant portion of value-added data revenue comes from
recurring subscriptions, installed analytics and web services.
Intermap's telecom revenue more than doubled in 2021 and is poised
to continue growing in 2022.
Intermap received eight new government contracts in 2021,
including a prime contract with the U.S. Air Force Research
Laboratory. The Company is also on multiple teams for the U.S.
Geological Survey Geospatial Products and Services contract.
Intermap's acquisition services revenue began to pick up at the
end of 2021 after being heavily affected by COVID-19. This was
driven by the redeployment of Intermap's one-of-a-kind sensors to
Malaysia to collect and produce
25-centimeter resolution IFSAR imagery and 1-meter resolution
Digital Elevation Models and feature products, including full
triple canopy foliage penetration, for foundational base maps at
better than 1:5,000 scale.
As of December 31, 2021, the
Company had available liquidity, which includes cash, accounts
receivables and unbilled revenue of $1.7
million.
Strengthening the Balance Sheet
When the Company operates its airborne acquisition assets to
collect data, it causes a drawdown of available liquidity, as many
deployment costs are front-end loaded, including upgrading the
aircraft avionics and sensors, deploying personnel overseas during
COVID, and arranging for fuel, visas, and permits under COVID
protocols. In order to improve access to capital, manage liquidity
fluctuations, finance and execute recent contract awards, and fund
long-term opportunities, Intermap filed a preliminary Base Shelf
Prospectus on November 17, 2021,
which can be found here. To support its Base Shelf application,
Intermap secured TSX approval to issue up to 6,900,000 Class A
Common Shares (Common Shares) in a non-brokered Private Placement
(the Offering). Intermap currently intends to use the net proceeds
to expand and develop the Company's offerings, pursue new strategic
contracts, and for other growth and general corporate purposes. In
connection with the Offering, Intermap may pay a finder's fee.
Closing of the Offering is expected to occur upon satisfaction
of customary closing conditions. The TSX has conditionally approved
the Offering and the listing of the Shares. The Common Shares
issued pursuant to the Offering will be subject to restrictions
under the United States Securities Act and applicable Canadian
securities laws, during which time trading in the securities by the
investors is restricted.
The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States or to, or for the account or
benefit of, U.S. persons absent registration or an applicable
exemption from the registration requirements. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
State in which such offer, solicitation or sale would be
unlawful.
Supporting Automated Aviation
Intermap today also announced a new contract for
NEXTViewTM to provide highly accurate elevation
information around U.S. airports in support of automated aircraft
landing, representing a revolution in aviation.
The subscription marks the first sale of the fully certified
version of Lido Surface Data NEXTView (NEXTView), a landmark
accomplishment for the product co-developed by Intermap and
Lufthansa Systems GmbH & Co KG. NEXTView has been integrated in
several unmanned aircraft systems (UAS) since its market entry in
2019, but UAS does not currently require full certification.
Today's contract is an exciting step forward. NEXTView is the only
global elevation dataset certified for aviation, with a Type-1
certification from the European Union Aviation Safety Agency the
European equivalent of the Federal Aviation Administration in
the United States.
Commercial and cargo aircraft require certified data for their
avionics systems, and NEXTView is uniquely positioned as the
first-mover and the only provider of this certified data in the
market. This data is especially critical in unmanned aircraft, the
next generation of aviation. This fundamental transformation in
aviation relies upon advanced cockpit automation and will make
aircraft safer, more widely available and more affordable as people
and goods are moved around the world.
Mr. Blott added, "We have won important milestone subscriptions
recently: Our first admitted insurance carrier and our first
NEXTView Aviation client. Now these capital raising initiatives
will fortify our balance sheet and enable us to execute on and
accelerate conversion of our growing pipeline."
The worldwide airline industry was heavily affected by the
pandemic, with market size decreasing from $818 billion in 2019 to $359 billion in 2020. In 2021, the market began
to normalize, with an increase in market size of approximately
$112 billion, and is predicted to
increase further to $591 billion in
2022 according to industry research firm IBISWorld. As the airline
industry recovers from the pandemic and returns to regular
operations, Intermap believes it will be even more valuable to
offer solutions that reduce cost and boost efficiency, and that its
products will continue to see demand.
Learn more about Intermap's aviation and NEXTMap products and
solutions.
Important Disclaimers
The Company's ability to continue as a going concern is
dependent on management's ability to successfully secure sales with
upfront payments, and/or obtain additional financing. Failure to
achieve one or more of these requirements could have a materially
adverse effect on the Company's financial condition and/or results
of operations. The Board of Directors and management continue to
take actions to address these issues, including raising capital
through a private placement, exploring options for additional
capital and the announcement of contract wins.
Intermap Reader Advisory
Certain information
provided in this news release constitutes forward-looking
statements, including the approval to issue Common Shares, intended
use of proceeds, and improvements to liquidity. 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.
About Intermap Technologies
Founded in 1997 and
headquartered in Denver, Colorado,
Intermap (TSX: IMP; OTCQX: ITMSF) is a global leader in geospatial
intelligence solutions. The Company's proprietary 3D NEXTMap®
elevation datasets and value-added geospatial collection,
processing, analytics, fusion and orthorectification software and
solutions are utilized across a range of industries that rely on
accurate, high-resolution elevation data. Intermap helps
governments build authoritative geospatial datasets and provides
solutions for base mapping, transportation, environmental
monitoring, topographic mapping, disaster mitigation, smart city
integration, public safety and defense. The Company's commercial
applications include aviation and UAV flight
planning, flood and wildfire
insurance, environmental and renewable
energy planning, telecommunications, engineering,
critical infrastructure monitoring, hydrology, land management, oil
and gas and transportation. For more information,
please visit www.intermap.com.
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SOURCE Intermap Technologies Corporation