For the fourth quarter of 2008, Intermap reported total revenue of $9.6 million, compared to $6.2 million in the fourth quarter of 2007. Intermap’s contract services revenue component increased 42%, contributing $7.5 million compared to $5.3 million in the fourth quarter of 2007. Multi-client data license revenue from NEXTMap datasets increased 133% to $2.1 million, compared to $0.9 million in the same period of 2007. The increase in MCDL license revenue was primarily attributable to increased sales of NEXTMap USA data resulting from additional data availability.
The Company collected approximately 100,000 square kilometers more data on contract services work in the fourth quarter of 2008 than in the same period in 2007. The increase in data collection resulted in operations expense increasing to $2.3 million in the fourth quarter of 2008 compared with $1.8 million for the same period in 2007. SG&A expense for the fourth quarter of 2008 decreased to $6.1 million from $6.4 million for the same period in 2007. Amortization expense of the multi-client data library increased 54.6% to $1.7 million from $1.1 million. Intermap reported a smaller net loss of $3.7 million, or ($0.08) per share in the fourth quarter, compared to a net loss of $4.4 million or ($0.08) per share for the same period in 2007.
The cash position of the Company at December 31, 2008 (cash and cash equivalents) was $27.2 million compared to $56.8 million at December 31, 2007. Working capital decreased to $30.0 million as of December 31, 2008 from $65.0 million as of December 31, 2007.
“In 2008, we collected about 4 million square kilometers of data for our NEXTMap initiatives, leaving only 100,000 square kilometers to collect in 2009. With the reduced requirement for data collection, the NEXTMap investment required in 2009 will be approximately $10 million less than was required in 2008. This reduction, coupled with a positive operations outlook, is expected to produce a healthy cash balance for the Company at year-end,” commented Mr. Bullock.
Operating Highlights
NEXTMap Europe
The collection of NEXTMap Europe was completed in the second quarter of 2008. Processing of the data is near completion and on schedule to make the entire database commercially available beginning in the second quarter of 2009. NEXTMap Europe encompasses the mapping of 17 European countries including Austria, Belgium, Czech Republic, Denmark, England, France, Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern Ireland, Portugal, Spain, Scotland, Switzerland, and Wales. NEXTMap Europe includes an area of approximately 2.5 million square kilometers. NEXTMap Europe currently has data available off-the-shelf for approximately 61% of Western Europe, including the entire countries of England, Wales, Scotland, France, Germany, and Italy.
NEXTMap USA
During 2008, the Company continued to make progress towards the completion of the NEXTMap USA program, the largest NEXTMap program to date. During the year, the Company had two Learjet aircraft equipped with IFSAR mapping technology focused on airborne data collection for NEXTMap initiatives. The dedication of these aircraft allowed the Company to complete 99% of NEXTMap USA data collection by year-end.
At the end of 2008, the NEXTMap USA program had data available off-the-shelf representing over 3.9 million square kilometers, or approximately 48% of the entire NEXTMap USA program. The funding of the remainder of this project is expected to occur through a combination of existing cash resources, customer data sales and ongoing operations. The Company expects to have the NEXTMap USA program commercially available during the first quarter of 2010.
Risk Management Applications
During the year, Intermap developed flood risk management models for France, Hungary, and the Czech and Slovak Republics. A model is also underway for Switzerland. In France, Intermap announced an agreement with Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a part of the Marsh & McLennan group of companies, to develop comprehensive flood hazard maps and a state-of-the-art national flood risk management model.
In late 2008, Intermap launched a risk assessment service direct to home owners in the Czech Republic. This service includes address-specific flood risk reports for consumers interested in obtaining specific property information for flood prone areas in the Czech Republic. After selecting a specific property, users receive an insurance risk report specifying potential risks related to their selection for a modest price. Until recently, flood risk information has only been available to insurance companies during the underwriting and risk-management process.
In addition to risk management applications for European flood modeling, Intermap is developing wind storm modeling and assessment applications throughout Europe. The Company has teamed with a German-based firm with the technology to intersect synoptic wind fields with Intermap’s NEXTMap terrain models and develop very precise delineation of high-risk areas.
Insurance companies can use NEXTMap’s superior insurance risk information to better define risk. The result can be more effective portfolio management and a net reduction of costs through a reduced need for reinsurance coverage and lower payouts after insurable events occur. Intermap is also in discussions with United States insurers for similar commercial insurance applications.
Recreational GPS
