- Delivers record quarterly ITS revenue of $51.9 million and positive Adjusted EBITDA of
$3.9 million.
- Bill Morris appointed to the
Board of Directors and Dr. Michel Fattouche retires from the
Board.
TORONTO, Aug. 9, 2023
/PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the
"Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of
tolling and enforcement solutions in the Intelligent Transportation
System ("ITS") industry,
announces its financial results
for the three and six months ended June 30, 2023. All financial information in this
press release is reported in Canadian dollars, unless otherwise
indicated.
Financial statements for the three and six months ended
June 30, 2023, and for the respective
comparison periods, have been prepared to reflect continuing
operations and therefore exclude results during those periods from
Wi-LAN Inc. ("WiLAN"), which was sold by Quarterhill on
June 15, 2023. Q2 2023 and
year-to-date operating results from WiLAN, up to the date of sale
on June 15, 2023, are reported as net
(loss) income from discontinued operations.
Q2 Fiscal 2023 Highlights
- Revenue was $51.9 million
compared to $39.2 million in Q2
2022
- Adjusted EBITDA1 was $3.9
million compared to ($8.1)
million in Q2 2022
- Revenue backlog3 was more than USD$500.0 million at June
30, 2023
- Following restructuring and integration initiatives in the
first half of the year, selling, general and administrative
expenses were $8.2 million compared
to $13.0 million in Q2 2022
- Working capital was $109.5
million at June 30, 2023
- Completed the sale of Wi-LAN Inc.
- Announced amended credit agreement with HSBC
- Appointed ITS industry veteran Charles ("Chuck") Myers to
the board of directors
- Subsequent to quarter-end, appointed Bill Morris to the board of directors and
announced the retirement of Dr. Michel Fattouche from the
board
"Quarterly revenue and Adjusted EBITDA were up significantly,
both year-over-year and sequentially, due to growth at IRD,
progress with our ongoing tolling projects and integration and cost
control initiatives," said John
Gillberry, Interim CEO at Quarterhill. "IRD, our enforcement
or commercial vehicle operations unit, had another strong quarter
with the highest Q2 revenue in its history, while also generating
strong Adjusted EBITDA margins. At ETC, our tolling operations, we
made some tough decisions in the first half of the year in order to
lay the foundation for improved operational and financial
performance, and that hard work began to pay off in Q2."
"The sale of WiLAN in Q2 provides an excellent home for that
business to prosper and it enables Quarterhill to focus 100% of its
attention and resources on ITS growth. We continue to make changes
to the board to reflect the evolution of the business with the
appointment of Chuck Myers in Q2 and
Bill Morris subsequent to
quarter-end, while at the same time Dr. Michel Fattouche has
retired from the board after more than two decades of dedicated
service to the Company, first as a founder and executive leader,
and later as a board member."
"This is a very exciting time for Quarterhill. We have two
strong, and increasingly integrated, ITS platform businesses in ETC
and IRD. Both have talented teams, great reputations, and solid
prospects for new business. Against this positive backdrop, our
near-term priorities are to drive towards go-live dates with our
tolling projects, achieve positive Adjusted EBITDA for 2023,
maintain progress on our integration plan and complete the search
for our new CEO."
Q2 and Year-to-Date Fiscal 2023 Financial Review
Quarterhill's Management's Discussion and Analysis and financial
statements for the three and six months ended June 30, 2023 are available at the Company's
website and at its profile at SEDAR.
Revenue for the three and six months ended June 30, 2023, was $51.9
million and $90.2 million
compared to $39.2 million and
$77.0 million in the prior year
comparative periods, respectively. The increase in revenue was due
to growth in both the enforcement and tolling business units.
Gross profit2 as a value and as a percentage of
revenues may be subject to significant variance in each reporting
period due to the nature and type of contract and service work
currently in process, currency volatility and competitive factors,
among other things. Gross profit for the three and six months ended
June 30, 2023, was $13.4 million and $18.5
million, or 26% and 21%, as compared to $5.5 million and $16.1
million, or 14% and 21% in the prior year comparative
periods, respectively. The increase in the current period is
primarily due to better margin performance from both the
enforcement and tolling business units as well as higher materials
and labor costs in the 2022 periods that were, in part, driven by
inflationary effects resulting from the COVID-19 pandemic.
Operating expenses include sales general and administrative
("SG&A") expense, research and development costs ("R&D"),
depreciation and amortization and other charges. Total operating
expenses for the three and six months ended June 30, 2023, were $14.2
million and $29.9 million
compared to $32.3 million and
$49.6 million in the prior year
comparative periods, respectively. The decrease is primarily due to
the cost reduction initiatives deployed by the Company and the
allocation of certain selling, general and administrative personnel
costs into cost of revenues as well as the absence of a one-time
legal settlement that was present in the 2022 comparative periods,
of which $14.6 million is attributed
to.
SG&A for the three and six months ended June 30, 2023, was $8.2 million and $17.6
million compared to $13.0
million and $25.4 million in
the prior year comparative periods, respectively. As a percentage
of revenue, SG&A in Q2 2023 was 16% compared to 33% in Q2 2022.
The Company has worked hard to drive efficiencies in the business
through its restructuring and integration efforts, which are
reflected in the year-over-year decrease in SG&A.
Adjusted EBITDA1 for the three and six months ended
June 30, 2023, was $3.9 million and ($1.3)
million compared to ($8.1)
million and ($10.0) million
for the comparative prior year periods, respectively. The increase
in Adjusted EBITDA compared to the prior year periods is due to the
favorable changes to revenue, gross margin and operating expenses
as previously explained.
Net loss from continuing operations for the three and six months
ended June 30, 2023, was ($0.12) per diluted share and ($0.23) per diluted share, compared to a net loss
from continuing operations of ($0.18)
per diluted share and ($0.26) per
diluted share, in the comparative prior year periods,
respectively.
Net loss from discontinued operations for the three and six
months ended June 30, 2023, was
($0.16) per diluted share and
($0.19) per diluted share, compared
to a net loss from discontinued operations of ($0.03) per diluted share and net income from
discontinued operations of $0.55 per
diluted share, in the comparative prior year periods,
respectively.
Cash used in continuing operations for the three and six months
ended June 30, 2023, was $10.2 million and $18.7
million, compared to $45.1
million and $51.4 million in
the comparative prior year periods, respectively.
Cash and cash equivalents and short-term investments were
$61.0 million at June 30, 2023, compared to $67.9 million at December
31, 2022. At June 30, 2023,
Quarterhill had working capital of $109.5
million. Due to the nature of the Company's business
activities, operating cash flows may vary significantly between
periods due to changes and timing in working capital balances.
Board Announcements
Quarterhill announced today that Bill
Morris has been appointed to the board of directors and that
Dr. Michel Fattouche has retired from the board.
Mr. Morris is a seasoned leader with extensive managerial and
board experience. He spent 36 years at Accenture, where he was CEO
of Accenture Canada for 13 years. As Accenture Canada's leader, he
grew revenue from $250 million to
$1.3 billion and led a team of 5000
employees.
"Bill brings strength in leadership, operational execution and
governance to the Company, and we are pleased to welcome him to the
board," said Rusty Lewis, Chair of
the Quarterhill Board. "Throughout his progressive career at
Accenture, Bill led business units with a focus on a variety of
industries in both Canada and the
US. We look forward to leveraging his expertise as we execute on
our compelling growth opportunity in ITS."
Mr. Morris retired from Accenture in 2019 and currently provides
advisory services at Tequity Advisors and sits on the board of two
private companies – Clearblue Markets and Boreal Carbon Corporation
– as well as Pivotree, a public company traded on the Toronto
Venture Exchange (TSX-V: PVT).
Mr. Lewis continued: "At the same time, on behalf of the entire
team at Quarterhill, I would like to thank Michel for his
commitment, guidance and support to the Company. A pioneer in his
industry, Michel co-founded WiLAN in 1992 and helped to develop
patented wireless inventions that became a cornerstone for some of
the most important wireless technology used today. We wish Michel
all the best in his future pursuits."
Dr. Fattouche saw Quarterhill through its three phases of
existence. From 1992 until 2005, WiLAN focused on wireless products
based on his patented inventions. Then in 2006, WiLAN changed its
focus to licensing its patented technologies, which included his
inventions on 3G and 4G cellular standards. Finally, in 2017, WiLAN
changed its name to Quarterhill and embarked on a diversification
strategy that has led to the pure play ITS company that Quarterhill
is today. Dr. Fattouche will have board observer status until
the Company's Annual Meeting in 2024 and will serve as
Quarterhill's observer on the WiLAN board.
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://app.webinar.net/M4owZgzElGm
- Webcast replay will be available for 365 days
at: https://app.webinar.net/M4owZgzElGm
Traditional Dial-in Information
- To access the call from Canada
and U.S., dial 1.888.664.6383 (Toll Free)
- To access the call from other locations, dial 1.416.764.8650
(International)
Rapidconnect
To instantly join the conference call by phone, please use the
following URL to easily register and be connected into the
conference call automatically:
https://emportal.ink/3PPP4pf
Telephone Replay
Telephone replay will be available from 1:00 p.m. ET on August 9,
2023, until 11:59 p.m. ET on
August 16, 2023, at: 1.888.390.0541
(Toll Free North America) or 1.416.764.8677.
Conference ID: 52294356 and Replay Passcode: 294356
#
Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial
measures to assess performance. Non-IFRS financial measures are
financial measures disclosed by a company that (a) depict
historical or expected future financial performance, financial
position or cash flow of a company, (b) with respect to their
composition, exclude amounts that are included in, or include
amounts that are excluded from the composition of the most directly
comparable financial measure disclosed in the primary financial
statements of the company, (c) are not disclosed in the financial
statements of the company and (d) are not a ratio, fraction,
percentage or similar representation. Non-IFRS ratios are financial
measures disclosed by a company that are in the form of a ratio,
fraction, percentage or similar representation that has a non-IFRS
financial measure as one or more of its components, and that are
not disclosed in the financial statements of the company.
These non-IFRS financial measures and non-IFRS ratios are not
standardized financial measures under IFRS, and, therefore, are
unlikely to be comparable to similar financial measures presented
by other companies. Management believes these non-IFRS financial
measures and non-IFRS ratios provide transparent and useful
supplemental information to help investors evaluate our financial
performance, financial condition, and liquidity using the same
measures as management. These non-IFRS financial measures and
non-IFRS ratios should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with IFRS.
Adjusted EBITDA - Non-IFRS
Financial Measures
We use the non-IFRS financial measure "Adjusted EBITDA" to mean
net (loss) income adjusted for (i) income taxes, (ii) finance
expense or income; (iii) amortization and impairment of
intangibles; (iv) other charges and other on-time items; (v)
depreciation of right-of-use assets and property, plant and
equipment; (vi) stock- based compensation; (vii) foreign exchange
(gain) loss; and (viii) other income which includes equity in
earnings from joint ventures, and (ix) dividends received from
joint ventures. Adjusted EBITDA is used by our 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 should not
be interpreted as an alternative to net loss and cash flows from
operations as determined in accordance with IFRS or as measure of
liquidity. The most directly comparable IFRS financial measure is
Net (loss) income.
Adjusted EBITDA per share – Non-IFRS ratio
Adjusted EBITDA per share is calculated as Adjusted EBITDA
divided by the basic weighted average of common shares. Adjusted
EBITDA per share is used by our management and investors to analyze
cash generated by Quarterhill on a per share basis. The most
comparable IFRS measure is earnings per share.
Backlog - Non-IFRS Financial Measures
We use the non-IFRS measure "backlog" to mean the total value of
work that has not yet been completed but that in management's
experience of similar situations has: (a) a high certainty of being
performed pursuant to existing contracts or work orders specifying
job scope, value and timing; (b) an expectation of expansion of
existing contracts due to expected extensions; and/or (c) been
awarded to one or more of our ITS operating subsidiaries as
evidenced by a binding contract or where the finalization of a
binding contract is reasonably assured. Activities under such
contracts may cover a period of up to 15 years. We do not include
in "backlog", the value of any expected but unsigned change orders
that management considers may apply to such contracts.
Supplementary Financial Measures
Supplementary financial measures are financial measures
disclosed by a company that (a) are, or are intended to be,
disclosed on a periodic basis to depict the historical or expected
future financial performance, financial position or cash flow of a
company (b) are not disclosed in the financial statement of the
company, (c) are not non-IFRS financial measures, and (d) are not
non-IFRS ratios.
Key supplementary measures disclosed are as follows:
Gross margin %
Calculated as gross profit as a
percentage of revenue.
About Quarterhill
Quarterhill is a leading provider of tolling and enforcement
solutions in the Intelligent Transportation System (ITS) industry.
Our goal is global leadership in ITS, via organic growth of the
Electronic Transaction Consultants, LLC (ETC) and International
Road Dynamics, Inc. (IRD) platforms, and by continuing an
acquisition-oriented investment strategy that capitalizes on
attractive growth opportunities within ITS and its adjacent
markets. Quarterhill is listed on the TSX under the symbol QTRH and
on the OTCQX Best Market under the symbol QTRHF. For more
information: www.quarterhill.com.
Forward-looking Information
This news release contains forward-looking statements regarding
Quarterhill, its operating subsidiaries and their respective
businesses. Forward-looking statements 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. The forward-looking events and
circumstances discussed herein may not occur and could differ
materially as a result of known and unknown risk factors and
uncertainties affecting Quarterhill, which include, without
limitation, the risks described in Quarterhill's March 22, 2023 annual information form for the
year ended December 31, 2022 (the
"AIF"). In addition, readers are also urged to review the
additional risk factors disclosed in our Management's Discussion
and Analysis for the three and six months ended June 30, 2023 filed today on www.sedarplus.ca.
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, whether as a
result of new information, future events or otherwise, except as
required by law.
Quarterhill Inc.
Interim Condensed Consolidated Statements of (Loss) Income and
Comprehensive (Loss) Income
(in thousands and in Canadian dollars, except share and per share
amounts)
Interim Condensed
Consolidated Statements of
(Loss) Income
|
|
|
|
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Revenues
|
$51,865
|
$39,240
|
$90,180
|
$77,007
|
Direct cost of
revenues
|
38,428
|
33,740
|
71,665
|
60,886
|
Gross profit
|
13,437
|
5,500
|
18,515
|
16,121
|
Operating
expenses
|
|
|
|
|
Depreciation of
right-of-use assets
|
515
|
516
|
971
|
1,034
|
Depreciation of
property, plant and equipment
|
547
|
470
|
1,102
|
988
|
Amortization of
intangible assets
|
2,804
|
2,966
|
5,625
|
6,108
|
Selling, general and
administrative expenses
|
8,235
|
13,002
|
17,640
|
25,444
|
Research and
development expenses
|
1,354
|
797
|
2,529
|
1,437
|
Other
charges
|
745
|
14,506
|
2,048
|
14,602
|
|
14,200
|
32,257
|
29,915
|
49,613
|
Results from
operations
|
(763)
|
(26,757)
|
(11,400)
|
(33,492)
|
Finance
income
|
(36)
|
(91)
|
(81)
|
(120)
|
Finance
expense
|
2,324
|
2,451
|
4,537
|
5,082
|
Foreign exchange loss
(gain)
|
1,033
|
(1,188)
|
1,486
|
(510)
|
Other income
|
(320)
|
(4,236)
|
(908)
|
(8,257)
|
Loss before
taxes
|
(3,764)
|
(23,693)
|
(16,434)
|
(29,687)
|
Current income tax
expense
|
(3,610)
|
496
|
(3,450)
|
552
|
Deferred income tax
expense (recovery)
|
13,527
|
(3,832)
|
12,976
|
(18)
|
Income tax expense
(recovery)
|
9,917
|
(3,336)
|
9,526
|
534
|
Net loss from
continuing operations
|
(13,681)
|
(20,357)
|
(25,960)
|
(30,221)
|
Net (loss) income from
discontinued operations
|
(18,839)
|
(3,975)
|
(22,174)
|
62,790
|
Net (loss)
income
|
(32,520)
|
(24,332)
|
(48,134)
|
32,569
|
|
|
|
|
|
Other comprehensive
(loss) income that may be
reclassified subsequently to net (loss) income:
|
|
|
|
|
Foreign currency
translation adjustment
|
(5,376)
|
6,487
|
(5,415)
|
2,549
|
Comprehensive (loss)
income
|
($37,896)
|
($17,845)
|
($53,549)
|
$35,118
|
|
|
|
|
|
(Loss) income per
share - Basic
|
|
|
|
|
From continuing
operations
|
($0.12)
|
($0.18)
|
($0.23)
|
($0.26)
|
From discontinued
operations
|
(0.16)
|
(0.03)
|
(0.19)
|
0.55
|
(Loss) income per
share - Basic
|
($0.28)
|
($0.21)
|
($0.42)
|
$0.29
|
|
|
|
|
|
(Loss) income per
share - Diluted
|
|
|
|
|
From continuing
operations
|
($0.12)
|
($0.18)
|
($0.23)
|
($0.26)
|
From discontinued
operations
|
(0.16)
|
(0.03)
|
(0.19)
|
0.55
|
(Loss) income per
share - Diluted
|
($0.28)
|
($0.21)
|
($0.42)
|
$0.29
|
Quarterhill Inc.
Interim Condensed Consolidated Statements of Financial Position (in
thousands and in Canadian dollars)
As at
|
June 30,
2023
|
December 31,
2022
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$61,016
|
$66,357
|
Short-term
investments
|
-
|
1,550
|
Restricted short-term
investments
|
-
|
6,529
|
Accounts receivable,
net
|
31,237
|
23,277
|
Unbilled
revenue
|
41,173
|
41,423
|
Income taxes
receivable
|
255
|
340
|
Inventories (net of
obsolescence)
|
14,614
|
13,671
|
Prepaid expenses and
deposits
|
4,663
|
6,852
|
|
152,958
|
159,999
|
Non-current
assets
|
|
|
Accounts and other
long-term receivables
|
5,563
|
539
|
Long-term prepaid
expenses and deposits
|
467
|
1,705
|
Right-of-use assets,
net
|
9,527
|
10,312
|
Property, plant and
equipment, net
|
6,571
|
6,926
|
Intangible assets,
net
|
109,750
|
141,335
|
Investment in joint
venture
|
7,565
|
7,751
|
Investment in other
entity
|
3,831
|
-
|
Deferred compensation
asset
|
1,376
|
1,344
|
Deferred income tax
assets
|
-
|
25,648
|
Goodwill
|
38,399
|
56,385
|
|
183,049
|
251,945
|
TOTAL ASSETS
|
$336,007
|
$411,944
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
$33,246
|
$47,063
|
Income taxes
payable
|
533
|
982
|
Current portion of
lease liabilities
|
2,587
|
2,611
|
Current portion of
deferred revenue
|
4,231
|
8,542
|
Current portion of
long-term debt
|
2,817
|
29,292
|
|
43,414
|
88,490
|
Non-current
liabilities
|
|
|
Deferred
revenue
|
2,822
|
2,744
|
Long-term lease
liabilities
|
8,545
|
9,655
|
Long-term
debt
|
24,337
|
-
|
Convertible
debentures
|
49,481
|
48,379
|
Derivative
liability
|
1,525
|
1,786
|
Deferred compensation
liabilities
|
1,183
|
1,169
|
Deferred income tax
liabilities
|
1,635
|
2,061
|
|
89,528
|
65,794
|
TOTAL
LIABILITIES
|
132,942
|
154,284
|
Shareholders'
equity
|
|
|
Capital
stock
|
426,564
|
546,482
|
Contributed
surplus
|
171,263
|
50,958
|
Accumulated other
comprehensive income
|
11,042
|
16,457
|
Deficit
|
(405,804)
|
(356,237)
|
|
203,065
|
257,660
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$336,007
|
$411,944
|
Quarterhill Inc.
Interim Condensed Consolidated Statements of Cash Flows
(in thousands and in Canadian dollars)
|
|
Three months
ended
June 30,
|
Six months ended
June 30,
|
|
|
2023
|
2022
|
2023
|
2022
|
Operating
activities:
|
|
|
|
|
|
Net loss from
continuing operations
|
|
($13,681)
|
($20,357)
|
($25,960)
|
($30,221)
|
Add (deduct) non-cash
items:
|
|
|
|
|
|
Stock-based
compensation expense
|
|
53
|
179
|
365
|
769
|
Depreciation of
right-of-use assets
|
|
515
|
516
|
971
|
1,034
|
Depreciation and
amortization
|
|
3,351
|
3,436
|
6,727
|
7,096
|
Foreign exchange loss
(gain)
|
|
1,033
|
(1,188)
|
1,486
|
(510)
|
Other income, excluding
change in derivative liability
|
|
(335)
|
(453)
|
(647)
|
(1,842)
|
Loss on disposal of
assets
|
|
-
|
-
|
-
|
70
|
Deferred income tax
expense (recovery)
|
|
9,658
|
(3,832)
|
9,107
|
(18)
|
Embedded
derivatives
|
|
-
|
(323)
|
126
|
(540)
|
Change in fair value of
derivative liability
|
|
15
|
(3,783)
|
(261)
|
(6,415)
|
Non-cash interest
expense
|
|
1,172
|
-
|
1,819
|
452
|
Net change in non-cash
working capital balances
|
|
(12,019)
|
(19,245)
|
(12,395)
|
(21,305)
|
Cash used in continuing
operations
|
|
(10,238)
|
(45,050)
|
(18,662)
|
(51,430)
|
Net cash flows
attributable to discontinued operations
|
|
(4,536)
|
122,893
|
(6,303)
|
120,071
|
Net cash (used in)
generated from operating activities
|
|
(14,774)
|
77,843
|
(24,965)
|
68,641
|
Financing
activities:
|
|
|
|
|
|
Dividends
paid
|
|
(1,433)
|
(1,432)
|
(2,866)
|
(2,840)
|
Payment of lease
liabilities
|
|
(585)
|
(491)
|
(1,115)
|
(936)
|
Repayment of long-term
debt
|
|
(828)
|
(13,720)
|
(1,675)
|
(14,503)
|
Common shares issued
for cash on the exercise of
options
|
|
-
|
971
|
-
|
1,095
|
Cash used in financing
activities
|
|
(2,846)
|
(14,672)
|
(5,656)
|
(17,184)
|
Net financing cash
flows attributable to discontinued
operations
|
|
(68)
|
(67)
|
(135)
|
(134)
|
Net cash used in
financing activities
|
|
(2,914)
|
(14,739)
|
(5,791)
|
(17,318)
|
Investing
activities:
|
|
|
|
|
|
Net proceeds from
disposition of a subsidiary
|
|
42,684
|
-
|
42,684
|
-
|
Cash sold on
disposition of a subsidiary
|
|
(10,501)
|
-
|
(10,501)
|
-
|
Proceeds from
short-term investments
|
|
-
|
-
|
-
|
301
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
-
|
-
|
211
|
Purchase of property,
plant and equipment
|
|
(410)
|
(1,096)
|
(860)
|
(1,096)
|
Capitalized software
costs
|
|
(1,251)
|
(678)
|
(3,122)
|
(1,220)
|
Cash generated from
(used in) investing activities
|
|
30,522
|
(1,774)
|
28,201
|
(1,804)
|
Net investing cash
flows attributable to discontinued
operations
|
|
1,603
|
(3,516)
|
1,603
|
(3,516)
|
Net cash generated from
(used in) financing activities
|
|
32,125
|
(5,290)
|
29,804
|
(5,320)
|
Foreign exchange on
cash held in foreign currencies
|
|
(3,541)
|
4,885
|
(4,389)
|
4,612
|
Net increase (decrease)
in cash and cash equivalents
|
|
10,896
|
62,699
|
(5,341)
|
50,615
|
Cash and cash
equivalents, beginning of
|
|
50,120
|
58,662
|
66,357
|
70,746
|
Cash and cash
equivalents, end of
|
|
$61,016
|
$121,361
|
$61,016
|
$121,361
|
Quarterhill Inc.
Interim Condensed Consolidated
Statements of Shareholders' Equity
(in thousands and in Canadian dollars)
|
Note
|
Capital
Stock
|
Contributed
Surplus
|
Accumulated
Other
Comprehensive Income
|
Deficit
|
Total
Shareholders'
Equity
|
Balance, January 1,
2022
|
|
$544,345
|
$49,937
|
$144
|
($353,310)
|
$241,116
|
|
|
|
|
|
|
|
Net income
|
|
-
|
-
|
-
|
32,569
|
32,569
|
Other comprehensive
income
|
|
-
|
-
|
2,549
|
-
|
2,549
|
Stock-based
compensation expense
|
|
-
|
951
|
-
|
-
|
951
|
Exercise of stock
options
|
|
1,707
|
(612)
|
-
|
-
|
1,095
|
Common shares issued
from restricted stock units
|
|
-
|
143
|
-
|
-
|
143
|
Common shares issued
from performance stock units
|
|
46
|
(46)
|
-
|
-
|
-
|
Dividends
declared
|
13
|
-
|
-
|
-
|
(2,840)
|
(2,840)
|
Balance, June 30,
2022
|
|
$546,098
|
$50,373
|
$2,693
|
($323,581)
|
$275,583
|
|
|
|
|
|
|
|
Balance, January 1,
2023
|
|
$546,482
|
$50,958
|
$16,457
|
($356,237)
|
$257,660
|
|
|
|
|
|
|
|
Net
loss
|
|
-
|
-
|
-
|
(48,134)
|
(48,134)
|
Other comprehensive
loss
|
|
-
|
-
|
(5,415)
|
-
|
(5,415)
|
Stock-based
compensation expense
|
|
-
|
388
|
-
|
-
|
388
|
Common shares issued
from restricted
stock units
|
|
82
|
(83)
|
-
|
-
|
(1)
|
Reduction of stated
capital
|
13
|
(120,000)
|
120,000
|
-
|
-
|
-
|
Dividends
declared
|
13
|
-
|
-
|
-
|
(1,433)
|
(1,433)
|
Balance,
June 30, 2023
|
|
$426,564
|
$171,263
|
$11,042
|
$(405,804)
|
$203,065
|
Quarterhill Inc.
Reconciliation of Net (loss) to
Adjusted EBITDA
(in thousands and in Canadian dollars, except share and per share
amounts)
|
Three months ended
June 30,
|
|
2023
|
2022
|
|
$
|
Per Share
[2]
|
$
|
Per Share
|
Net loss from
continuing operations
|
($13,681)
|
($0.12)
|
($20,357)
|
($0.18)
|
Adjusted
for:
|
|
|
|
|
Income tax expense
(recovery)
|
9,917
|
0.09
|
(3,336)
|
(0.03)
|
Foreign exchange loss
(gain)
|
1,033
|
0.01
|
(1,188)
|
(0.01)
|
Finance expense,
net
|
2,288
|
0.02
|
2,360
|
0.03
|
Other
charges
|
745
|
0.01
|
14,506
|
0.13
|
Depreciation and
amortization
|
3,866
|
0.03
|
3,952
|
0.03
|
Stock based
compensation expense
|
53
|
-
|
179
|
-
|
Other income
|
(320)
|
(0.01)
|
(4,236)
|
(0.04)
|
Adjusted EBITDA
[1]
|
$3,901
|
$0.03
|
($8,120)
|
($0.07)
|
|
|
|
|
|
Weighted average number
of Common Shares
|
|
|
|
|
Basic
|
114,649,772
|
|
114,389,952
|
|
|
Six months ended
June 30,
|
|
2023
|
2022
|
|
$
|
Per Share
[2]
|
$
|
Per Share
|
Net loss from
continuing operations
|
($25,960)
|
($0.23)
|
($30,221)
|
($0.26)
|
Adjusted
for:
|
|
|
|
|
Income tax
expense
|
9,526
|
0.08
|
534
|
-
|
Foreign exchange loss
(gain)
|
1,486
|
0.01
|
(510)
|
-
|
Finance expense,
net
|
4,456
|
0.04
|
4,962
|
0.04
|
Other
charges
|
2,048
|
0.02
|
14,602
|
0.13
|
Depreciation and
amortization
|
7,698
|
0.08
|
8,130
|
0.07
|
Stock based
compensation expense
|
365
|
-
|
769
|
0.01
|
Other income
|
(908)
|
(0.01)
|
(8,257)
|
(0.08)
|
Adjusted EBITDA
[1]
|
($1,289)
|
($0.01)
|
($9,991)
|
($0.09)
|
|
|
|
|
|
Weighted average number
of Common Shares
|
|
|
|
|
Basic
|
114,644,764
|
|
114,154,645
|
|
1. Please refer to the
Adjusted EBITDA Non- IFRS Financial Measures section for further
information.
|
2. Please refer to the
Supplementary Financial Measures for further
information.
|
3. Please refer to the
Backlog Non-IFRS Financial Measures section for further
information.
|
|
View original
content:https://www.prnewswire.com/news-releases/quarterhill-announces-strong-q2-fiscal-2023-financial-results-301896572.html
SOURCE Quarterhill Inc.