The Company also announced today the receipt of a new $2.0 million government task order for the creation of digital elevation and bare earth terrain models. The Company is increasingly providing its multi-sensor solutions and data management tools through web services, software and analytics. Including this announcement, the Company has announced $3.7 million of government task orders since year end 2017, which are to be completed in 2018.
"These results reflect across-the-board growth in geospatial content, software and solutions, delivered where, when, and how they are needed. Intermap serves better analytics and answers to both our government and commercial customers all over the globe," commented Patrick Blott, Chairman & CEO of Intermap. "We will continue investing strategically in our people, technology, proprietary data, and client relationships, to deliver cutting-edge geospatial solutions that are responsive and financial returns that are competitive."
All amounts in this news release are in United States dollars, unless otherwise noted.
Consolidated revenue for the year ended December 31, 2017 totaled $19.3 million, compared to $7.0 million recorded in 2016. Approximately 65% of consolidated revenue was generated outside the United States, compared to 30% for the same period in 2016.
Total revenue for the fourth quarter increased 297% to $5.9 million, compared to $1.4 million for the fourth quarter of 2016.
Operating cash flow for the year was $3.5 million, compared to an $8.1 million loss in 2016. Operating cash flow for the quarter was $0.9 million, compared to a $1.3 million loss for the same period in 2016.
Adjusted EBITDA, a non-GAAP and non-IFRS financial measure, was positive $3.5 million for the year, compared with negative $7.2 million for 2016, a $10.7 million improvement. Fourth quarter adjusted EBITDA was positive $1.9 million, compared to negative $0.8 million for fourth quarter of 2016.
For the fourth quarter of 2017, Intermap reported net income of $0.5 million, compared to a net loss of $0.2 million for the same period in 2016.
The Company finished the year with $6.4 million of cash and positive working capital of $0.3 million, compared to cash of $6.5 million and a working capital deficit of $3.8 million for 2016.
In addition to generating cash throughout the year, the Company invested $3.9 million in new sensors, software, and other proprietary technologies, compared to $0.3 million of investment during 2016. Total assets increased to $11.8 million, up from $9.0 million at the end of 2016. The Company's total assets exclude its proprietary, high resolution, NEXTMap® data library, as well as internally developed software applications, patented algorithms along with innovative approaches in artificial intelligence and machine learning-driven processing engines, risk models, and prototype sensors. Cumulative net operating loss carryforwards at the end of 2017 totaled $223 million.
Additional highlights of significant milestones achieved in 2017 include:
- The Company added an average of two insurance solutions customers each month to its software platform, and experienced a 100% renewal rate on customers eligible for renewal during the year, growing commercial subscription revenue by more than 210%
- Following extensive damage from wildfires in California, the Company received its first commercial software subscription for wildfire risk analytics
- On the government side, following an upgrade of its sensor platform, the Company completed a major data infrastructure project in Southeast Asia, and transitioned that regions business towards data solutions and enterprise data management. The Company also received its first task order to collect and process P-band radar and light detection and ranging (LiDAR) data to support foundation geo intelligence
- The Company received a patent and third party validation for its fourth, proprietary and global, digital elevation model, generated with a 1-meter posting (LE 90 accuracy), capable of producing high resolution digital terrain and elevation information (first surface and bare earth) for any area of interest on the planet. This fourth generation model compliments the Company's existing proprietary, global, digital elevation models, posted at 5-meter, 10-meter, and 30-meter resolutions
- Extending its performance culture, the Company invested in senior level sales and business development talent to support its continued growth, and elevated several high performing internal business development professionals, while achieving a 9% reduction in over-all employee costs, and a 30% reduction in facilities expense
- The Company also commenced a complete upgrade of its internal processing, data management, optimization and software architecture, incorporating graphic processing units; auto-classification, automated feature extraction and data authoring; artificial intelligence and machine learning algorithms; and a patented intelligent resolution improvement process.
The Company's Annual General and Special Meeting of Shareholders is scheduled for March 15, 2018 in Calgary, Alberta. The materials are available on SEDAR at: www.sedar.com. In advance of the meeting, the Company has entered into a voting agreement with Vertex One Asset Management ("Vertex"), in which Vertex intends to support the matters to be put before shareholders at the meeting.
The Company's consolidated financial statements and management's discussion and analysis will be filed on SEDAR at: www.sedar.com. Important factors, including those discussed in the Company's regulatory filings ( www.sedar.com) 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 income (loss).