- Year ends on a strong note with solid revenue,
Adjusted EBITDA and cash from operations
- Momentum continues into Q1 2019 with revenue for the
quarter expected to be in a range of $33-36 million
- Restructurings initiated in second half of 2018 at IRD
and WiLAN, expected to save $6.0
million per year in expenses
- As part of its restructuring, Michael Vladescu named President & CEO at
WiLAN
OTTAWA, Feb. 28, 2019 /CNW/ - Quarterhill Inc.
("Quarterhill" or the "Company") (TSX: QTRH) (NASDAQ: QTRH),
announces its financial results for the three- and twelve-month
periods ended December 31, 2018. All
financial information in this press release is reported in U.S.
dollars, unless otherwise indicated.
Q4 and Fiscal 2018 Highlights:
- Q4 revenue was $25.4 million;
Fiscal 2018 revenue was $77.4
million
- Q4 recurring revenue was $4.7
million (18% of total revenue); Fiscal 2018 recurring
revenue was $22.0 million (28% of
total revenue)
- Q4 Adjusted EBITDA* was $3.2
million; Fiscal 2018 Adjusted EBITDA was ($10.6) million
- Q4 cash generated by operations was $9.6
million; Fiscal 2018 cash used in operations was
($8.4) million
- Cash balance at year-end was $67.3
million, compared to $62.4
million at the end of Q3 2018 and $86.6 million at the end of 2017
- IRD and VIZIYA's combined revenue and Adjusted EBITDA in Fiscal
2018 was $56.6 million and
$5.8 million, respectively
- Won a trial victory versus Apple Inc in Q3 2018 in the U.S.
District Court for the Southern District of California regarding patents in WiLAN's
wireless portfolio
- Initiated restructurings in Q3 2018 at IRD and in Q4 2018 at
WiLAN, which combined are expected to save the Company
approximately $6.0 million per year
in operating expenses
"While 2018 was challenging in certain respects, we ended
the year on a positive note in Q4 with strong revenue, Adjusted
EBITDA and cash from operations," said Doug
Parker, President & CEO of Quarterhill. "Overall,
tangible progress was made in a year that I would characterize as
one of operational stabilization while continuing to make
advancements on our diversification strategy. Adding new companies
to our portfolio remains a primary objective of the strategy but
ensuring that our existing portfolio companies are optimizing their
performance is equally important. The restructurings we have
undertaken at WiLAN and IRD are expected to save approximately
$6.0 million per year in expenses and
we believe the changes made will help those businesses to drive
superior performance for years to come."
"As part of our WiLAN restructuring, we have streamlined
its operational structure. As a result, we have appointed
Michael Vladescu, an industry
veteran and long time WiLAN senior executive, to the position of
President and Chief Executive Officer of the business, replacing
Keaton Parekh. Mike was instrumental
in building WiLAN's very successful partnership program and has a
proven track record of delivering tangible multi-year results for
the organization. I look forward to working closely with Mike and
the team as they continue to enhance our business opportunity in
the evolving technology innovation and licensing marketplace. I
want to thank Keaton for his contribution to our organization
during his short tenure with WiLAN."
"On the M&A side, the 2018 environment reflected
somewhat of a seller's market, but we still made good progress
assembling our deal team, evolving our target focus and building
our M&A ecosystem, which helped to generate strong deal flow
and a growing pipeline of opportunities. With the strength and
progress at both IRD and VIZIYA in 2018, we are seeing a number of
smaller tuck-in opportunities suitable for enhancing those
businesses, while also continuing to aggressively pursue other
acquisition targets that meet our disciplined financial and
operational criteria. Throughout 2019 we will remain focused on
cash flow and expenses throughout all our businesses, in order to
maintain a strong and sustainable balance sheet capable of
supporting both our organic and acquisitive growth
opportunities."
"Finally, as we look to next quarter, we anticipate
continued momentum from our operations, reflected in license deals
such as SK hynix, and while we do not anticipate providing regular
guidance on a quarterly basis, we do expect Quarterhill's
consolidated revenue for Q1 2019 to be in the range of $33-$36
million."
Approval of Eligible Dividend
The Board of Directors
has declared an eligible quarterly dividend of CDN $0.0125 per common share payable on April 5, 2019, to shareholders of record on
March 22, 2019.
Business Strategy and Segments
Our acquisition
strategy focuses primarily on financial metrics while remaining
cognizant of broader technology and market trends as we build a
portfolio of businesses that are characterized as having recurring
revenue, free cash flow and profitable growth potential. Driven by
the execution of a proven and disciplined acquisition strategy, we
seek to enable shareholders to benefit from consolidation and
convergence trends in today's technology industry. As of
December 31, 2018, the Company had
investments in three segments: Licensing (WiLAN); Intelligent
Systems (IRD); and Enterprise Software (VIZIYA).
Q4 and Fiscal 2018 Consolidated Financial
Review
Quarterhill's consolidated financial results for the
three- and twelve-month periods ended December 31, 2018 include a full contribution
from Wi LAN Inc. ("WiLAN"), International Road Dynamics Inc.
("IRD") and VIZIYA Corp. ("VIZIYA"). The 2017 comparative period
information for the twelve-month period ended December 31, 2017, includes a full contribution
from WiLAN along with IRD's results from operations for the period
from June 1, 2017 to December 31, 2017 and VIZIYA's results from
operations for the period from May 4,
2017 to December 31, 2017.
Consolidated revenues for the three months ended December 31, 2018 were $25.4 million, compared to $22.6 million in the same period last year. The
quarter-over-quarter increase was due to stronger performance at
IRD and WiLAN. Consolidated revenues for Fiscal 2018 were
$77.4 million, compared to
$134.7 million in Fiscal 2017. The
year-over-year decrease was primarily due to strong performance
from WiLAN in Q3 2017 when it generated revenue of $72.6 million. IRD and VIZIYA's combined revenue
in Fiscal 2018 was $56.6 million
compared to $34.1 million which they
generated in Fiscal 2017 following their respective acquisitions by
the Company.
Gross margin for the three months ended December 31, 2018 was $9.6
million, or 38%, compared to $8.7
million, or 38%, in the same period last year. Gross margin
for Fiscal 2018 was $18.8 million, or
24%, compared to $85.4 million, or
63%, in Fiscal 2017. The year-over-year decrease in gross margin
reflects the variability in WiLAN's revenue noted above. Gross
margin and gross margin percentage increased for both IRD and
VIZIYA in Fiscal 2018 compared to Fiscal 2017.
Operating expenses for the three months ended December 31, 2018 were $30.7 million, compared to $23.7 million in the same period last year.
Operating expenses for Fiscal 2018 were $77.3 million compared to $75.2 million in Fiscal 2017. Operating expenses
increased in Fiscal 2018 due primarily to a full-year of operations
from IRD and VIZIYA, $6.2 million of
one-time restructuring charges and $16.6
million of non-cash charges related to an impairment loss on
goodwill and an impairment loss on intangibles, offset in part by
$26.3 million in non-cash charges
related to a loss on disposal of intangible assets and impairment
losses on intangibles in Fiscal 2017.
Adjusted EBITDA for the three months ended December 31, 2018 was $3.2
million, or $0.02 per basic
Common Share, compared to $1.5
million, or $0.01 per basic
Common Share, in the same period last year. The
quarter-over-quarter increase in Adjusted EBITDA is primarily due
to stronger performance from WiLAN and IRD. For Fiscal 2018,
Adjusted EBITDA was ($10.6) million,
or ($0.11) per basic Common Share,
compared to $64.6 million, or
$0.53 per basic Common Share, in
Fiscal 2017. The year-over-year decrease in Adjusted EBITDA
reflects the variability in the WiLAN business and the $72.6 million in revenue it generated in Q3 2017.
For Fiscal 2018, Adjusted EBITDA combined for IRD and VIZIYA was
$5.8 million compared to $3.8 million which they generated in Fiscal 2017
following their respective acquisitions by the Company.
Net loss for the three months ended December 31, 2018 was ($19.9) million, or ($0.17) per basic and diluted Common Share,
compared to net loss of ($12.4)
million, or ($0.10) per basic
and diluted Common Share, in the same period last year. The
quarter-over-quarter increase in net loss was due primarily to the
$16.6 million of non-cash charges
related to an impairment loss on goodwill and an impairment loss on
intangibles in Q4 2018, offset in part by stronger performance from
WiLAN and IRD in Q4 2018 and the $11.1
million of non-cash charges related to loss on disposal of
intangibles and impairment loss on intangibles in Q4 2017. For
Fiscal 2018, net loss was ($49.2)
million, or ($0.41) per basic
and diluted Common Share, compared to net income of $10.2 million, or $0.09 per basic and diluted Common Share, in
Fiscal 2017. For Fiscal 2018, net loss increased due primarily to
lower revenue from WiLAN, offset in part by improved overall
operational performance at IRD and VIZIYA.
Cash generated from operations for the three months ended
December 31, 2018 was $9.6 million, compared to $49.2 million in the same period last year. Cash
generated from operations for Fiscal 2018 was ($8.4) million compared to $70.0 million in Fiscal 2017. The
quarter-over-quarter and year-over-year decreases in cash from
operations are primarily due to lower revenue from WiLAN in 2018,
offset in part by improved overall operational performance at IRD
and VIZIYA in Fiscal 2018.
Cash and cash equivalents and short-term investments amounted to
$67.3 million at December 31, 2018, compared to $62.4 million at the end of Q3 2018 and
$86.6 million at December 31, 2017. The sequential quarterly
increase is due to stronger performance from WiLAN and IRD in Q4
2018, while the decrease from the end of Fiscal 2017 is primarily
due to lower overall revenue from WiLAN in Fiscal 2018.
The table below highlights financial performance for the
Company's Licensing, Intelligent Systems and Enterprise Software
segments. For detailed results and discussion related to these
segments, please refer to the Management's Discussion and Analysis
document, which will be filed on SEDAR and at
www.quarterhill.com in the investor section.
|
For the three months
ended December 31, 2018
|
|
Licensing
|
Intelligent
Systems
|
Enterprise
Software
|
Corporate
|
|
Total
|
Revenues
|
$
|
10,623
|
$
|
12,541
|
$
|
2,252
|
$
|
-
|
|
$
|
25,416
|
Cost of revenues
(excluding depreciation and amortization)
|
|
7,742
|
|
7,805
|
|
314
|
|
-
|
|
|
15,861
|
|
|
2,881
|
|
4,736
|
|
1,938
|
|
-
|
|
|
9,555
|
Selling, general and
administrative expenses
|
|
599
|
|
2,753
|
|
1,593
|
|
1,087
|
|
|
6,032
|
Research and
development expenses
|
|
-
|
|
429
|
|
448
|
|
-
|
|
|
877
|
Depreciation of
property, plant and equipment
|
|
48
|
|
280
|
|
30
|
|
4
|
|
|
362
|
Amortization of
intangibles
|
|
4,434
|
|
950
|
|
758
|
|
-
|
|
|
6,142
|
Impairment losses on
intangibles
|
|
509
|
|
-
|
|
-
|
|
-
|
|
|
509
|
Impairment loss on
goodwill
|
|
-
|
|
16,066
|
|
-
|
|
-
|
|
|
16,066
|
Special
charges
|
|
2,498
|
|
115
|
|
-
|
|
(1,942)
|
|
|
671
|
Results from
operations
|
|
(5,207)
|
|
(15,857)
|
|
(891)
|
|
851
|
|
|
(21,104)
|
Finance
income
|
|
(33)
|
|
(2)
|
|
-
|
|
(402)
|
|
|
(437)
|
Finance
expense
|
|
1
|
|
61
|
|
1
|
|
-
|
|
|
63
|
Foreign exchange loss
(gain)
|
|
612
|
|
(392)
|
|
115
|
|
(453)
|
|
|
(118)
|
Other
income
|
|
-
|
|
(58)
|
|
77
|
|
-
|
|
|
19
|
(Loss) income before
taxes
|
|
(5,787)
|
|
(15,466)
|
|
(1,084)
|
|
1,706
|
|
|
(20,631)
|
Current income tax
expense (recovery)
|
|
656
|
|
(92)
|
|
(137)
|
|
-
|
|
|
427
|
Deferred income tax
(recovery) expense
|
|
(4,334)
|
|
(593)
|
|
(186)
|
|
3,984
|
|
|
(1,129)
|
Income tax (recovery)
expense
|
|
(3,678)
|
|
(685)
|
|
(323)
|
|
3,984
|
|
|
(702)
|
Net loss
|
$
|
(2,109)
|
$
|
(14,781)
|
$
|
(761)
|
$
|
(2,278)
|
|
$
|
(19,929)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
2,302
|
|
1,901
|
|
(89)
|
|
(951)
|
|
|
3,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
20
|
|
30
|
|
14
|
|
136
|
|
|
200
|
Dividends from joint
venture
|
|
-
|
|
317
|
|
-
|
|
-
|
|
|
317
|
|
For the twelve months
ended December 31, 2018
|
|
Licensing
|
Intelligent
Systems
|
Enterprise
Software
|
Corporate
|
Total
|
Revenues
|
$
|
20,811
|
$
|
45,051
|
$
|
11,539
|
$
|
-
|
$
|
77,401
|
Cost of revenues
(excluding depreciation and amortization)
|
|
27,539
|
|
29,594
|
|
1,441
|
|
-
|
|
58,574
|
|
|
(6,728)
|
|
15,457
|
|
10,098
|
|
-
|
|
18,827
|
Selling, general and
administrative expenses
|
|
2,598
|
|
10,250
|
|
6,723
|
|
7,421
|
|
26,992
|
Research and
development expenses
|
|
-
|
|
2,022
|
|
1,549
|
|
-
|
|
3,571
|
Depreciation of
property, plant and equipment
|
|
257
|
|
1,129
|
|
121
|
|
10
|
|
1,517
|
Amortization of
intangibles
|
|
18,731
|
|
3,873
|
|
3,029
|
|
-
|
|
25,633
|
Impairment losses on
intangibles
|
|
509
|
|
-
|
|
-
|
|
-
|
|
509
|
Impairment loss on
goodwill
|
|
-
|
|
16,066
|
|
-
|
|
-
|
|
16,066
|
Special
charges
|
|
2,498
|
|
2,435
|
|
-
|
|
(1,942)
|
|
2,991
|
Results from
operations
|
|
(31,321)
|
|
(20,318)
|
|
(1,324)
|
|
(5,489)
|
|
(58,452)
|
Finance
income
|
|
(36)
|
|
(11)
|
|
-
|
|
(912)
|
|
(959)
|
Finance
expense
|
|
2
|
|
205
|
|
11
|
|
2
|
|
220
|
Foreign exchange loss
(gain)
|
|
946
|
|
(556)
|
|
166
|
|
(748)
|
|
(192)
|
Other
income
|
|
-
|
|
(942)
|
|
(192)
|
|
-
|
|
(1,134)
|
Loss before
taxes
|
|
(32,233)
|
|
(19,014)
|
|
(1,309)
|
|
(3,831)
|
|
(56,387)
|
Current income tax
expense (recovery)
|
|
1,793
|
|
66
|
|
(782)
|
|
1
|
|
1,078
|
Deferred income tax
(recovery) expense
|
|
(11,262)
|
|
(1,731)
|
|
(935)
|
|
5,583
|
|
(8,345)
|
Income tax (recovery)
expense
|
|
(9,469)
|
|
(1,665)
|
|
(1,717)
|
|
5,584
|
|
(7,267)
|
Net (loss)
income
|
$
|
(22,764)
|
$
|
(17,349)
|
$
|
408
|
$
|
(9,415)
|
$
|
(49,120)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(9,280)
|
|
3,793
|
|
2,011
|
|
(7,161)
|
|
(10,637)
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items:
|
|
|
|
|
|
|
|
|
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
167
|
|
147
|
|
-
|
|
314
|
Stock-based
compensation
|
|
46
|
|
124
|
|
38
|
|
260
|
|
468
|
Dividends from joint
venture
|
|
-
|
|
317
|
|
-
|
|
-
|
|
317
|
|
For the three months
ended December 31, 2017
|
|
Licensing
|
Intelligent
Systems
|
Enterprise
Software
|
Corporate
|
Total
|
Revenues
|
$
|
8,427
|
$
|
10,820
|
$
|
3,378
|
$
|
-
|
$
|
22,625
|
Cost of revenues
(excluding depreciation and amortization)
|
|
5,834
|
|
7,846
|
|
289
|
|
-
|
|
13,969
|
|
|
2,593
|
|
2,974
|
|
3,089
|
|
-
|
|
8,656
|
Selling, general and
administrative expenses
|
|
1,006
|
|
2,368
|
|
1,529
|
|
1,950
|
|
6,853
|
Research and
development expenses
|
|
-
|
|
722
|
|
373
|
|
-
|
|
1,095
|
Depreciation of
property, plant and equipment
|
|
78
|
|
134
|
|
27
|
|
1
|
|
240
|
Amortization of
intangibles
|
|
4,514
|
|
984
|
|
757
|
|
-
|
|
6,255
|
Loss on disposal of
intangibles
|
|
6,726
|
|
-
|
|
-
|
|
-
|
|
6,726
|
Impairment losses on
intangibles
|
|
4,350
|
|
-
|
|
-
|
|
-
|
|
4,350
|
Special
charges
|
|
-
|
|
-
|
|
-
|
|
(1,806)
|
|
(1,806)
|
Results from
operations
|
|
(14,081)
|
|
(1,234)
|
|
403
|
|
(145)
|
|
(15,057)
|
Finance
income
|
|
(147)
|
|
(2)
|
|
-
|
|
(9)
|
|
(158)
|
Finance
expense
|
|
6
|
|
59
|
|
4
|
|
-
|
|
69
|
Foreign exchange loss
(gain)
|
|
41
|
|
134
|
|
(1)
|
|
94
|
|
268
|
Other
income
|
|
-
|
|
(90)
|
|
-
|
|
-
|
|
(90)
|
(Loss) income before
taxes
|
|
(13,981)
|
|
(1,335)
|
|
400
|
|
(230)
|
|
(15,146)
|
Current income tax
(recovery) expense
|
|
(55)
|
|
(57)
|
|
424
|
|
-
|
|
312
|
Deferred income tax
expense (recovery)
|
|
11,591
|
|
(841)
|
|
(270)
|
|
(13,573)
|
|
(3,093)
|
Income tax expense
(recovery)
|
|
11,536
|
|
(898)
|
|
154
|
|
(13,573)
|
|
(2,781)
|
Net (loss)
income
|
$
|
(25,517)
|
$
|
(437)
|
$
|
246
|
$
|
13,343
|
$
|
(12,365)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
1,586
|
|
351
|
|
1,361
|
|
(1,814)
|
|
1,484
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items:
|
|
|
|
|
|
|
|
|
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
107
|
|
174
|
|
-
|
|
281
|
Increased costs from
inventory step-up
|
|
-
|
|
108
|
|
-
|
|
-
|
|
108
|
Stock-based
compensation
|
|
(1)
|
|
76
|
|
-
|
|
136
|
|
211
|
Effect of deleted
prepaid expense
|
|
-
|
|
176
|
|
-
|
|
-
|
|
176
|
|
For the twelve months
ended December 31, 2017
|
|
Licensing
|
Intelligent
Systems
|
Enterprise
Software
|
Corporate
|
Total
|
Revenues
|
$
|
100,645
|
$
|
27,023
|
$
|
7,043
|
$
|
-
|
$
|
134,711
|
Cost of revenues
(excluding depreciation and amortization)
|
|
29,478
|
|
18,646
|
|
1,185
|
|
-
|
|
49,309
|
|
|
71,167
|
|
8,377
|
|
5,858
|
|
-
|
|
85,402
|
Selling, general and
administrative expenses
|
|
6,490
|
|
5,870
|
|
3,310
|
|
4,300
|
|
19,970
|
Research and
development expenses
|
|
-
|
|
1,883
|
|
1,372
|
|
-
|
|
3,255
|
Depreciation of
property, plant and equipment
|
|
339
|
|
627
|
|
89
|
|
2
|
|
1,057
|
Amortization of
intangibles
|
|
20,611
|
|
2,292
|
|
2,019
|
|
-
|
|
24,922
|
Loss on disposal of
intangibles
|
|
21,916
|
|
-
|
|
-
|
|
-
|
|
21,916
|
Impairment losses on
intangibles
|
|
4,350
|
|
-
|
|
-
|
|
-
|
|
4,350
|
Special
charges
|
|
-
|
|
-
|
|
-
|
|
(294)
|
|
(294)
|
Results from
operations
|
|
17,461
|
|
(2,295)
|
|
(932)
|
|
(4,008)
|
|
10,226
|
Finance
income
|
|
(614)
|
|
(3)
|
|
-
|
|
(86)
|
|
(703)
|
Finance
expense
|
|
932
|
|
113
|
|
10
|
|
(2)
|
|
1,053
|
Foreign exchange
(gain) loss
|
|
(475)
|
|
829
|
|
42
|
|
(600)
|
|
(204)
|
Other
income
|
|
-
|
|
(390)
|
|
-
|
|
-
|
|
(390)
|
Income (loss) before
taxes
|
|
17,618
|
|
(2,844)
|
|
(984)
|
|
(3,320)
|
|
10,470
|
Current income tax
expense
|
|
6,461
|
|
276
|
|
458
|
|
-
|
|
7,195
|
Deferred income tax
expense (recovery)
|
|
3,722
|
|
(1,761)
|
|
(755)
|
|
(8,157)
|
|
(6,951)
|
Income tax expense
(recovery)
|
|
10,183
|
|
(1,485)
|
|
(297)
|
|
(8,157)
|
|
244
|
Net income
(loss)
|
$
|
7,435
|
$
|
(1,359)
|
$
|
(687)
|
$
|
4,837
|
$
|
10,226
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
64,733
|
|
1,868
|
|
1,884
|
|
(3,868)
|
|
64,617
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items:
|
|
|
|
|
|
|
|
|
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
214
|
|
708
|
|
-
|
|
922
|
Increased costs from
inventory step-up
|
|
-
|
|
689
|
|
-
|
|
-
|
|
689
|
Stock-based
compensation
|
|
56
|
|
175
|
|
-
|
|
432
|
|
663
|
Effect of deleted
prepaid expense
|
|
-
|
|
(10)
|
|
-
|
|
-
|
|
(10)
|
Dividend from joint
venture
|
|
-
|
|
176
|
|
-
|
|
-
|
|
176
|
Conference Call and Webcast
Quarterhill will host a
conference call to discuss its financial results today at
10:00 AM Eastern Time.
Webcast
Information
The live audio webcast will
be available
at:
https://event.on24.com/wcc/r/1933492/07CD54500990DF0B84400CBDE7F150C1.
Dial-in
Information
- To access the call from Canada and U.S., dial 1.888.231.8191 (Toll
Free)
- To access the call from other locations, dial
1.647.427.7450 (International)
Replay
Information
Webcast replay will be
available for 90 days at:
https://event.on24.com/wcc/r/1933492/07CD54500990DF0B84400CBDE7F150C1.
Telephone replay will be available from 1:00 PM ET on February 28, 2019 until
11:59 PM ET on March 7,
2019 at: 1.855.859.2056 (Toll Free)
or 1.416.849.0833 (International).
Non-GAAP Disclosure*
Quarterhill follows U.S. GAAP in preparing its interim and
annual financial statements. We use the term "Adjusted EBITDA" to
mean net income (loss) from continuing operations before: (i)
income taxes; (ii) finance expense or income; (iii) amortization
and impairment of intangibles; (iv) special charges and other
one-time items; (v) depreciation of property, plant and equipment;
(vi) effects of deleted deferred revenue; (vii) the effects of fair
value step up in inventory acquired; (viii) stock based
compensation; (ix) foreign exchange (gain) loss; and * equity in
earnings and dividends from joint ventures. Adjusted EBITDA is used
by Quarterhill management to assess our normalized cash generated
on a consolidated basis and in our operating segments. Adjusted
EBITDA is also a performance measure that may be used by investors
to analyze the cash generated by Quarterhill and our operating
segments. ADJUSTED EBITDA IS NOT A MEASURE OF FINANCIAL PERFORMANCE
UNDER U.S. GAAP. IT DOES NOT HAVE ANY STANDARDIZED MEANING
PRESCRIBED BY U.S. GAAP AND IS THEREFORE UNLIKELY TO BE COMPARABLE
TO SIMILARLY TITLED MEASURES USED BY OTHER COMPANIES. ADJUSTED
EBITDA SHOULD NOT BE INTERPRETED AS AN ALTERNATIVE TO NET EARNINGS
AND CASH FLOWS FROM OPERATIONS AS DETERMINED IN ACCORDANCE WITH
U.S. GAAP OR AS A MEASURE OF LIQUIDITY.
About Quarterhill
Quarterhill is focused
on the disciplined acquisition, management and growth of companies
in dedicated technology areas including, vertical market software
and solutions, intelligent industrial systems, and innovation and
licensing. Quarterhill's emphasis is on seeking out acquisition
opportunities at reasonable valuations that provide a foundation
for recurring revenues, predictable cash flows and margins,
profitable growth, intimate customer relationships and dedicated
management teams. Quarterhill is listed on the TSX and NASDAQ
under the symbol QTRH. For more information:
www.quarterhill.com.
Forward-looking Information
This news release
contains forward-looking statements and forward-looking information
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995 and other United
States and Canadian securities laws. Forward-looking
statements and forward-looking information are based on estimates
and assumptions made by Quarterhill in light of its experience and
its perception of historical trends, current conditions, expected
future developments and the expected effects of new business
strategies, as well as other factors that Quarterhill believes are
appropriate in the circumstances. Many factors could cause
Quarterhill's actual performance or achievements to differ
materially from those expressed or implied by the forward-looking
statements or forward-looking information. Such factors include,
without limitation, the risks described in Quarterhill's
February 28, 2019 annual information
form for the year ended December 31,
2018 (the "AIF"). Copies of the AIF may be obtained at
www.sedar.com and as part of Quarterhill's Form 40-F for the year
ended December 31, 2018 filed with
the U.S. Securities and Exchange Commission and available at
www.sec.com. Quarterhill recommends that readers review and
consider all of these risk factors and notes that readers should
not place undue reliance on any of Quarterhill's forward-looking
statements. Quarterhill has no intention, and undertakes no
obligation, to update or revise any forward-looking statements or
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
All trademarks and brands mentioned in this release are
the property of their respective owners.
Quarterhill Inc
|
|
Consolidated
Statements of Operations
|
|
(in thousands of
United States dollars, except share and per share
amounts)
|
|
|
|
|
|
For the three months
ended,
|
|
For the year
ended,
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
25,416
|
|
$
|
22,625
|
|
$
|
77,401
|
|
$
|
134,711
|
Cost of revenues
(excluding depreciation and
amortization)
|
|
15,861
|
|
|
13,969
|
|
|
58,574
|
|
|
49,309
|
Gross margin
(excluding depreciation and
amortization)
|
|
9,555
|
|
|
8,656
|
|
|
18,827
|
|
|
85,402
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and
equipment
|
|
362
|
|
|
240
|
|
|
1,517
|
|
|
1,057
|
Amortization of
intangibles
|
|
6,142
|
|
|
6,255
|
|
|
25,633
|
|
|
24,922
|
Selling, general and
administrative
|
|
6,032
|
|
|
6,853
|
|
|
26,992
|
|
|
19,970
|
Research and
development
|
|
877
|
|
|
1,095
|
|
|
3,571
|
|
|
3,255
|
Loss on disposal of
intangibles
|
|
-
|
|
|
6,726
|
|
|
-
|
|
|
21,916
|
Impairment losses on
intangibles
|
|
509
|
|
|
4,350
|
|
|
509
|
|
|
4,350
|
Impairment loss on
goodwill
|
|
16,066
|
|
|
-
|
|
|
16,066
|
|
|
-
|
Special
charges
|
|
671
|
|
|
(1,806)
|
|
|
2,991
|
|
|
(294)
|
|
|
30,659
|
|
|
23,713
|
|
|
77,279
|
|
|
75,176
|
Results from
operations
|
|
(21,104)
|
|
|
(15,057)
|
|
|
(58,452)
|
|
|
10,226
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
(437)
|
|
|
(158)
|
|
|
(959)
|
|
|
(703)
|
Finance
expense
|
|
63
|
|
|
69
|
|
|
220
|
|
|
1,053
|
Foreign exchange
(gain) loss
|
|
(118)
|
|
|
268
|
|
|
(192)
|
|
|
(204)
|
Other (income)
expense
|
|
19
|
|
|
(90)
|
|
|
(1,134)
|
|
|
(390)
|
Income (loss) before
taxes
|
|
(20,631)
|
|
|
(15,146)
|
|
|
(56,387)
|
|
|
10,470
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
|
427
|
|
|
312
|
|
|
1,078
|
|
|
7,195
|
Deferred income tax
recovery
|
|
(1,129)
|
|
|
(3,093)
|
|
|
(8,345)
|
|
|
(6,951)
|
Income tax (recovery)
expense
|
|
(702)
|
|
|
(2,781)
|
|
|
(7,267)
|
|
|
244
|
Net (loss)
income
|
$
|
(19,929)
|
|
$
|
(12,365)
|
|
$
|
(49,120)
|
|
$
|
10,226
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic and fully
diluted
|
$
|
(0.17)
|
|
$
|
(0.10)
|
|
$
|
(0.41)
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
118,642,749
|
|
|
118,555,989
|
|
|
118,607,569
|
|
|
119,245,581
|
Fully
diluted
|
|
118,642,749
|
|
|
118,555,989
|
|
|
118,615,683
|
|
|
119,245,581
|
Quarterhill Inc
|
Supplemental
Information to Consolidated Statement of
Operations
|
(in thousands of
United States dollars, except share and per share
amounts)
|
|
|
For the three months
ended,
|
|
For the year
ended,
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Licenses
|
$
|
10,646
|
|
$
|
10,083
|
|
$
|
23,544
|
|
$
|
101,553
|
Systems
|
|
9,495
|
|
|
7,815
|
|
|
29,252
|
|
|
17,641
|
Services
|
|
589
|
|
|
592
|
|
|
2,629
|
|
|
2,086
|
Recurring
|
|
4,686
|
|
|
4,135
|
|
|
21,976
|
|
|
13,431
|
Total Revenues
|
$
|
25,416
|
|
$
|
22,625
|
|
$
|
77,401
|
|
$
|
134,711
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (excluding depreciation and
amortization)
|
|
|
|
|
|
|
|
|
|
|
|
License
|
$
|
7,775
|
|
$
|
5,853
|
|
$
|
27,702
|
|
$
|
29,559
|
Systems
|
|
5,553
|
|
|
5,242
|
|
|
18,945
|
|
|
11,880
|
Services
|
|
281
|
|
|
270
|
|
|
1,276
|
|
|
1,091
|
Recurring
|
|
2,252
|
|
|
2,604
|
|
|
10,651
|
|
|
6,779
|
Total cost of revenues (excluding depreciation
and amortization)
|
$
|
15,861
|
|
$
|
13,969
|
|
$
|
58,574
|
|
$
|
49,309
|
Quarterhill Inc
|
Consolidated
Statements of Comprehensive (Loss) Income
|
(in thousands of
United States dollars)
|
|
|
For the three months
ended,
|
|
For the year
ended,
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(19,929)
|
|
$
|
(12,365)
|
|
$
|
(49,120)
|
|
$
|
10,226
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(2,021)
|
|
|
144
|
|
|
(3,868)
|
|
|
3,886
|
Comprehensive (loss)
income
|
$
|
(21,950)
|
|
$
|
(12,221)
|
|
$
|
(52,988)
|
|
$
|
14,112
|
Quarterhill Inc
|
Consolidated Balance
Sheets
|
(in thousands of
United States dollars)
|
As at
|
December 31,
2018
|
|
December 31,
2017
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
63,929
|
|
$
|
81,818
|
Short-term
investments
|
|
1,139
|
|
|
1,236
|
Restricted short-term
investments
|
|
2,200
|
|
|
3,500
|
Accounts
receivable
|
|
10,812
|
|
|
19,298
|
Other current
assets
|
|
91
|
|
|
13
|
Unbilled
revenue
|
|
3,990
|
|
|
3,045
|
Income taxes
receivable
|
|
198
|
|
|
144
|
Inventories
|
|
5,960
|
|
|
5,083
|
Prepaid expenses and
deposits
|
|
2,332
|
|
|
4,129
|
|
|
90,651
|
|
|
118,266
|
Non-current
assets
|
|
|
|
|
|
Accounts
receivable
|
|
415
|
|
|
-
|
Property, plant and
equipment
|
|
2,655
|
|
|
3,801
|
Intangible
assets
|
|
87,425
|
|
|
114,944
|
Investment in joint
venture
|
|
3,822
|
|
|
3,383
|
Deferred income tax
assets
|
|
27,141
|
|
|
20,195
|
Goodwill
|
|
25,303
|
|
|
42,587
|
TOTAL
ASSETS
|
$
|
237,412
|
|
$
|
303,176
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
indebtedness
|
$
|
2,598
|
|
$
|
3,568
|
Accounts payable and
accrued liabilities
|
|
18,103
|
|
|
20,487
|
Income taxes
payable
|
|
-
|
|
|
599
|
Contingent
consideration
|
|
929
|
|
|
-
|
Current portion of
patent finance obligation
|
|
-
|
|
|
4,090
|
Current portion of
deferred revenue
|
|
4,670
|
|
|
6,733
|
Current portion of
long-term debt
|
|
299
|
|
|
115
|
|
|
26,599
|
|
|
35,592
|
Non-current
liabilities
|
|
|
|
|
|
Contingent
consideration
|
|
-
|
|
|
4,474
|
Deferred
revenue
|
|
1,435
|
|
|
884
|
Long-term
debt
|
|
173
|
|
|
401
|
Deferred income tax
liabilities
|
|
4,337
|
|
|
7,291
|
TOTAL
LIABILITIES
|
|
32,544
|
|
|
48,642
|
Shareholders'equity
|
|
|
|
|
|
Capital
stock
|
|
419,111
|
|
|
418,873
|
Additional paid-in
capital
|
|
22,957
|
|
|
22,489
|
Accumulated other
comprehensive income
|
|
16,243
|
|
|
20,111
|
Deficit
|
|
(253,443)
|
|
|
(206,939)
|
|
|
204,868
|
|
|
254,534
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
237,412
|
|
$
|
303,176
|
Quarterhill Inc
|
Consolidated
Statements of Cash Flows
|
(in thousands of
United States dollars)
|
|
|
For the three months
ended,
|
|
For the year
ended,
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
Cash generated from
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(19,929)
|
|
$
|
(12,365)
|
|
$
|
(49,120)
|
|
$
|
10,226
|
Non-cash
items
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
200
|
|
|
211
|
|
|
468
|
|
|
663
|
Depreciation and
amortization
|
|
6,503
|
|
|
6,495
|
|
|
27,150
|
|
|
25,979
|
Foreign exchange loss
(gain)
|
|
188
|
|
|
(101)
|
|
|
299
|
|
|
(267)
|
Equity in earnings
from joint venture
|
|
(58)
|
|
|
(90)
|
|
|
(942)
|
|
|
(390)
|
Loss on disposal of
intangible
|
|
-
|
|
|
6,726
|
|
|
-
|
|
|
21,916
|
Impairment losses on
intangibles
|
|
509
|
|
|
4,350
|
|
|
509
|
|
|
4,350
|
Impairment loss on
goodwill
|
|
16,066
|
|
|
-
|
|
|
16,066
|
|
|
-
|
Contingent
consideration adjustment
|
|
(3,545)
|
|
|
(1,976)
|
|
|
(3,545)
|
|
|
(1,976)
|
Gain on disposal of
assets
|
|
-
|
|
|
(4)
|
|
|
(24)
|
|
|
(9)
|
Deferred income tax
recovery
|
|
(1,129)
|
|
|
(3,093)
|
|
|
(8,345)
|
|
|
(6,951)
|
Accrued investment
income
|
|
-
|
|
|
1,000
|
|
|
-
|
|
|
1,772
|
Embedded
derivatives
|
|
(75)
|
|
|
18
|
|
|
(78)
|
|
|
39
|
Changes in non-cash
working capital balances
|
|
10,829
|
|
|
48,025
|
|
|
9,178
|
|
|
14,603
|
Cash generated from
(used in) operations
|
|
9,559
|
|
|
49,196
|
|
|
(8,384)
|
|
|
69,955
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,136)
|
|
|
(1,162)
|
|
|
(4,605)
|
|
|
(4,563)
|
Long-term accounts
receivable
|
|
(415)
|
|
|
-
|
|
|
(415)
|
|
|
-
|
Bank
indebtedness
|
|
(3,076)
|
|
|
(576)
|
|
|
(970)
|
|
|
1,348
|
Repayment of long-term
debt
|
|
48
|
|
|
(38)
|
|
|
(44)
|
|
|
(434)
|
Common shares
repurchased under normal course
issuer bid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(552)
|
Common shares issued
for cash from Employee
Share Purchase Plan
|
|
-
|
|
|
35
|
|
|
27
|
|
|
68
|
Cash used in
financing
|
|
(4,579)
|
|
|
(1,741)
|
|
|
(6,007)
|
|
|
(4,133)
|
Investing
|
|
|
|
|
|
|
|
|
|
|
|
Business
combinations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(67,415)
|
Dividends received
from joint venture
|
|
317
|
|
|
176
|
|
|
317
|
|
|
176
|
Sales (purchase) of
restricted short-term
investments
|
|
1,300
|
|
|
-
|
|
|
1,300
|
|
|
(3,500)
|
Proceeds from sale of
property, plant and
equipment
|
|
-
|
|
|
13
|
|
|
54
|
|
|
13
|
Purchase of property
and equipment
|
|
(156)
|
|
|
(143)
|
|
|
(575)
|
|
|
(399)
|
Repayment of patent
finance obligations
|
|
-
|
|
|
(1,389)
|
|
|
(4,167)
|
|
|
(19,556)
|
Purchase of
intangibles
|
|
(19)
|
|
|
(138)
|
|
|
(133)
|
|
|
(150)
|
Cash generated from
(used in) investing
|
|
1,442
|
|
|
(1,481)
|
|
|
(3,204)
|
|
|
(90,831)
|
Foreign exchange
(loss) gain on cash held in foreign
currency
|
|
(191)
|
|
|
27
|
|
|
(294)
|
|
|
274
|
Net increase
(decrease) in cash and cash equivalents
|
|
6,231
|
|
|
46,001
|
|
|
(17,889)
|
|
|
(24,735)
|
Cash and cash
equivalents, beginning of period
|
|
57,698
|
|
|
35,817
|
|
|
81,818
|
|
|
106,553
|
Cash and cash
equivalents, end of period
|
$
|
63,929
|
|
$
|
81,818
|
|
$
|
63,929
|
|
$
|
81,818
|
Quarterhill Inc
|
Consolidated
Statements of Shareholders' Equity
|
(in thousands of
United States dollars)
|
|
|
Capital
Stock
|
Additional
paid in Capital
|
Accumulated
Other
Comprehensive
Income
|
Deficit
|
Total
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1,
2017
|
$
|
419,485
|
$
|
21,036
|
$
|
16,225
|
$
|
(212,602)
|
$
|
244,144
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
10,226
|
|
10,226
|
Other comprehensive
income
|
|
-
|
|
-
|
|
3,886
|
|
-
|
|
3,886
|
Shares and options
issued:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
-
|
|
663
|
|
-
|
|
-
|
|
663
|
Shares issued upon
acquisition
|
|
662
|
|
-
|
|
-
|
|
-
|
|
662
|
Sale of shares under
Employee Share
Purchase Plan
|
|
68
|
|
-
|
|
-
|
|
-
|
|
68
|
Shares repurchased
under normal course
issuer bid
|
|
(1,342)
|
|
790
|
|
-
|
|
-
|
|
(552)
|
Dividends
declared
|
|
-
|
|
-
|
|
-
|
|
(4,563)
|
|
(4,563)
|
Balance - December
31, 2017
|
$
|
418,873
|
$
|
22,489
|
$
|
20,111
|
$
|
(206,939)
|
$
|
254,534
|
|
|
|
|
|
|
|
|
|
|
|
Balance - December
31, 2017
|
$
|
418,873
|
$
|
22,489
|
$
|
20,111
|
$
|
(206,939)
|
$
|
254,534
|
Adoption of ASU
2014-09
|
|
-
|
|
-
|
|
-
|
|
4,272
|
|
4,272
|
Adoption of ASU
2016-16
|
|
-
|
|
-
|
|
-
|
|
2,949
|
|
2,949
|
Balance - January 1,
2018
|
|
418,873
|
|
22,489
|
|
20,111
|
|
(199,718)
|
|
261,755
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
|
-
|
|
-
|
|
(49,120)
|
|
(49,120)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
(3,868)
|
|
-
|
|
(3,868)
|
Shares and options
issued:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
-
|
|
468
|
|
-
|
|
-
|
|
468
|
Conversion of deferred
stock units to
common shares
|
|
211
|
|
-
|
|
-
|
|
-
|
|
211
|
Sale of shares under
Employee Share
Purchase Plan
|
|
27
|
|
-
|
|
-
|
|
-
|
|
27
|
Dividends
declared
|
|
-
|
|
-
|
|
-
|
|
(4,605)
|
|
(4,605)
|
Balance - December
31, 2018
|
$
|
419,111
|
$
|
22,957
|
$
|
16,243
|
$
|
(253,443)
|
$
|
204,868
|
Quarterhill Inc
|
Reconciliations of
GAAP Net Income (Loss) to Adjusted EBITDA
|
(in thousands of
United States dollars, except share and per share
amounts)
|
|
|
For the three months
ended,
|
|
For the year
ended,
|
Adjusted
EBITDA
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
Net (loss)
income
|
$
|
(19,929)
|
|
$
|
(12,365)
|
|
$
|
(49,120)
|
|
$
|
10,226
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (recovery)
expense
|
|
(702)
|
|
|
(2,781)
|
|
|
(7,267)
|
|
|
244
|
Foreign exchange
(gain) loss
|
|
(118)
|
|
|
268
|
|
|
(192)
|
|
|
(204)
|
Finance
expense
|
|
63
|
|
|
69
|
|
|
220
|
|
|
1,053
|
Finance
income
|
|
(437)
|
|
|
(158)
|
|
|
(959)
|
|
|
(703)
|
Special
charges
|
|
671
|
|
|
(1,806)
|
|
|
2,991
|
|
|
(294)
|
Amortization of
intangibles
|
|
6,142
|
|
|
6,255
|
|
|
25,633
|
|
|
24,922
|
Loss on disposal of
intangibles
|
|
-
|
|
|
6,726
|
|
|
-
|
|
|
21,916
|
Impairment losses on
intangible assets
|
|
509
|
|
|
4,350
|
|
|
509
|
|
|
4,350
|
Impairment loss on
goodwill
|
|
16,066
|
|
|
-
|
|
|
16,066
|
|
|
-
|
Depreciation of
property, plant and equipment
|
|
362
|
|
|
240
|
|
|
1,517
|
|
|
1,057
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
281
|
|
|
314
|
|
|
922
|
Increased costs from
inventory step-up
|
|
-
|
|
|
108
|
|
|
-
|
|
|
689
|
Effect of deleted
prepaid expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(10)
|
Stock-based
compensation
|
|
200
|
|
|
211
|
|
|
468
|
|
|
663
|
Dividend from joint
venture
|
|
317
|
|
|
176
|
|
|
317
|
|
|
176
|
Other expense
(income)
|
|
19
|
|
|
(90)
|
|
|
(1,134)
|
|
|
(390)
|
Adjusted
EBITDA
|
$
|
3,163
|
|
$
|
1,484
|
|
$
|
(10,637)
|
|
$
|
64,617
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per share
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(0.17)
|
|
$
|
(0.10)
|
|
$
|
(0.42)
|
|
$
|
0.09
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (recovery)
expense
|
|
(0.01)
|
|
|
(0.02)
|
|
|
(0.07)
|
|
|
0.01
|
Foreign exchange
(gain) loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Finance
expense
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.01
|
Finance
income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Special
charges
|
|
0.01
|
|
|
(0.02)
|
|
|
0.03
|
|
|
(0.01)
|
Amortization of
intangibles
|
|
0.05
|
|
|
0.05
|
|
|
0.21
|
|
|
0.20
|
Loss on disposal of
intangibles
|
|
-
|
|
|
0.06
|
|
|
-
|
|
|
0.19
|
Impairment losses on
intangible assets
|
|
-
|
|
|
0.04
|
|
|
-
|
|
|
0.04
|
Impairment loss on
goodwill
|
|
0.14
|
|
|
-
|
|
|
0.14
|
|
|
-
|
Depreciation of
property, plant and equipment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Increased costs from
inventory step-up
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Effect of deleted
prepaid expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Stock-based
compensation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dividend from joint
venture
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Other expense
(income)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Adjusted EBITDA per
share
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
(0.11)
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
118,642,749
|
|
|
118,555,989
|
|
|
118,607,569
|
|
|
119,245,581
|
View original
content:http://www.prnewswire.com/news-releases/quarterhill-announces-financial-results-for-2018-300803872.html
SOURCE Quarterhill Inc.