Quarterhill Announces CEO Change and Preliminary Consolidated Results for Fiscal 2022

Rhea-AI Summary

Quarterhill announced the immediate resignation of President and CEO Bret Kidd, with John Gillberry appointed as Interim CEO. The company expects consolidated revenue for fiscal 2022 to be between $303 million and $307 million, with consolidated Adjusted EBITDA projected in the range of $63 million to $66 million. A CEO search committee has been established to find Kidd's permanent successor. Additionally, the strategic review of WiLAN is ongoing, with updates to shareholders planned as material developments occur.

Positive

• Consolidated revenue for fiscal 2022 is expected to be between $303 million and $307 million.
• Consolidated Adjusted EBITDA is projected to range from $63 million to $66 million.

Negative

• Immediate leadership change with the resignation of the CEO may create uncertainty among investors.
• -

• Bret Kidd to step down, effective immediately
• John Gillberry appointed Interim CEO
• Quarterhill expects consolidated revenue for fiscal 2022 in a range of $303-307 million and consolidated Adjusted EBITDA in a range of $63-66 million

TORONTO, March 20, 2023 /PRNewswire/ - Quarterhill Inc. ("Quarterhill") (TSX: QTRH) (OTCQX: QTRHF) announced today that Bret Kidd will step down as President and CEO and resign from the Board, effective immediately. John Gillberry, who is currently Chair of the Board, has been named Interim CEO.

Quarterhill's Board has formed a CEO search committee to conduct a search to select the company's next CEO and will be engaging an executive recruiting firm to assist with this process.

"We are committed to global leadership in the Intelligent Transportation Systems (ITS) industry, and we have two strong platforms in tolling and enforcement solutions that are capable of delivering revenue growth and attractive operating margins," said John Gillberry, Interim CEO of Quarterhill. "Our goal in 2023 will be to onboard a new leader, elevate our financial performance in ITS and build towards operational excellence throughout the organization. I want to thank Bret for his service to the company and we wish him the best in his future endeavours."

Mr. Gillberry is expected to remain Interim CEO until such time as a new CEO is appointed and will not stand for re-election to the Board at Quarterhill's 2023 Annual Meeting.

Fiscal 2022 Preliminary Results
Quarterhill announces that its consolidated revenue for fiscal 2022 is expected to be in a range of $303-307 million with consolidated Adjusted EBITDA¹ expected to be in a range of $63-66 million.

WiLAN Strategic Review Update
The strategic review for WiLAN remains ongoing. The Company continues to entertain and explore options for the business and will update shareholders accordingly as material developments occur.

Fiscal 2022 Conference Call
Quarterhill will release its complete financial results for the three- and twelve-month periods ended December 31, 2022, on Wednesday, March 22, 2023. John Gillberry, Interim CEO, and John Karnes, CFO, will host a conference call and audio webcast at 10:00 a.m. ET the same day. Details to participate on the call are as follows:

Webcast Information

• The live audio webcast will be available at: https://app.webinar.net/EoQa9rN92eK
• Webcast replay will be available for 365 days at: https://app.webinar.net/EoQa9rN92eK

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://bit.ly/3GLDzZO 

Telephone Replay
Telephone replay will be available from 1:00 p.m. ET on March 22, 2023, until 11:59 p.m. ET on March 29, 2023, at: 1.888.390.0541 (Toll Free North America) or 1.416.764.8677.

Conference ID: 98071629 and Replay Passcode: 071629#

¹Adjusted 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.

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry, as well as, through its Wi-LAN Inc. subsidiary, a leader in Intellectual Property licensing. 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, visit 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, including: potential risks and uncertainties relating to the ultimate geographic spread of the novel coronavirus ("COVID-19"); the severity of the disease; the duration of the COVID-19 outbreak; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and financial markets and any resulting impact on Quarterhill, its operating subsidiaries and/or their respective businesses. Other factors include, without limitation, the risks described in Quarterhill's March 20, 2022 annual information form for the year ended December 31, 2021 (the "AIF"). In addition, readers are also urged to review the additional risk factors disclosed in our Management's Discussion and Analysis for our three months ended September 30, 2022 filed today on www.sedar.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, whether as a result of new information, future events or otherwise, except as required by law.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-ceo-change-and-preliminary-consolidated-results-for-fiscal-2022-301776038.html

SOURCE Quarterhill Inc.

FAQ

What are the preliminary revenue results for Quarterhill in fiscal 2022?

Quarterhill expects consolidated revenue for fiscal 2022 to be between $303 million and $307 million.

Who has been appointed as Interim CEO of Quarterhill?

John Gillberry has been appointed as Interim CEO of Quarterhill.

What is the projected Adjusted EBITDA for Quarterhill in fiscal 2022?

The projected Adjusted EBITDA for Quarterhill in fiscal 2022 is between $63 million and $66 million.

When will Quarterhill release its complete financial results for fiscal 2022?

Quarterhill will release its complete financial results for the year ended December 31, 2022, on March 22, 2023.