Quarterhill Announces Q2 2024 Financial Results
Quarterhill (TSX: QTRH, OTCQX: QTRHF), a leader in tolling and enforcement solutions, reported Q2 2024 financial results. Key highlights include:
- Revenue of $41.5M, up 7.5% YoY
- Adjusted EBITDA of $1.7M, down from $2.9M last year
- Positive cash flow from operations at $0.8M compared to negative $10.3M in Q2 2023
- Revenue backlog of $500M
However, the gross profit fell to $8.5M (21% margin) from $10M (26% margin) in Q2 2023. Total operating expenses were $10.8M. The net loss from continuing operations was $3M, a significant improvement from last year's $10.2M loss. Cash and cash equivalents stood at $24M, down from $42.7M at year-end 2023. Vineet Khosla joined the Board, adding AI and ML expertise.
Quarterhill (TSX: QTRH, OTCQX: QTRHF), un leader nelle soluzioni di pedaggio e enforcement, ha riportato i risultati finanziari del secondo trimestre 2024. I principali punti salienti includono:
- Entrate di $41.5M, in aumento del 7.5% anno su anno
- EBITDA rettificato di $1.7M, in calo rispetto ai $2.9M dell'anno precedente
- Flusso di cassa positivo dalle operazioni di $0.8M rispetto a un negativo $10.3M nel secondo trimestre 2023
- Ritardo delle entrate di $500M
Tuttavia, il profitto lordo è sceso a $8.5M (margine del 21%) rispetto ai $10M (margine del 26%) nel secondo trimestre 2023. Le spese operative totali sono state di $10.8M. La perdita netta dalle operazioni continuative è stata di $3M, un notevole miglioramento rispetto alla perdita di $10.2M dell'anno scorso. Disponibilità liquide e equivalenti si attestano a $24M, in calo rispetto ai $42.7M a fine 2023. Vineet Khosla si è unito al Consiglio, portando competenze in AI e ML.
Quarterhill (TSX: QTRH, OTCQX: QTRHF), un líder en soluciones de peaje y ejecución, informó los resultados financieros del segundo trimestre de 2024. Los puntos destacados incluyen:
- Ingresos de $41.5M, un aumento del 7.5% interanual
- EBITDA ajustado de $1.7M, por debajo de $2.9M del año pasado
- Flujo de efectivo positivo de las operaciones de $0.8M, en comparación con un negativo de $10.3M en el segundo trimestre de 2023
- Retraso de ingresos de $500M
Sin embargo, la utilidad bruta cayó a $8.5M (margen del 21%) desde $10M (margen del 26%) en el segundo trimestre de 2023. Los gastos operativos totales fueron de $10.8M. La pérdida neta de las operaciones continuas fue de $3M, una mejora significativa en comparación con la pérdida de $10.2M del año pasado. Efectivo y equivalentes de efectivo se situaron en $24M, por debajo de los $42.7M a finales de 2023. Vineet Khosla se unió a la Junta, aportando experiencia en IA y ML.
Quarterhill (TSX: QTRH, OTCQX: QTRHF)는 통행료 및 집행 솔루션의 선두주자로서 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 수익이 $41.5M으로 전년 대비 7.5% 증가했습니다.
- 조정된 EBITDA는 $1.7M으로 지난해 $2.9M에서 감소했습니다.
- 2023년 2분기 마이너스 $10.3M에 비해 운영에서 발생한 현금 흐름이 $0.8M으로 긍정적입니다.
- 수익 누적이 $500M에 달합니다.
하지만 총 이익은 2023년 2분기 $10M(26% 마진)에서 $8.5M(21% 마진)으로 감소했습니다. 총 운영 비용은 $10.8M이었습니다. 지속 운영에서의 순손실은 $3M으로, 지난해 $10.2M 손실에서 크게 개선되었습니다. 현금 및 현금성 자산은 2023년 연말 $42.7M에서 감소한 $24M입니다. Vineet Khosla가 이사회에 합류하여 AI 및 ML 전문성을 추가했습니다.
Quarterhill (TSX: QTRH, OTCQX: QTRHF), un leader dans les solutions de péage et d'exécution, a publié les résultats financiers du deuxième trimestre 2024. Les points clés incluent :
- Chiffre d'affaires de $41.5M, en hausse de 7.5% par rapport à l'année précédente
- EBITDA ajusté de $1.7M, en baisse par rapport à $2.9M l'année dernière
- Flux de trésorerie positif des opérations de $0.8M, contre un négatif de $10.3M au Q2 2023
- Retard de chiffre d'affaires de $500M
Cependant, le bénéfice brut est tombé à $8.5M (marge de 21%) contre $10M (marge de 26%) au Q2 2023. Les dépenses d'exploitation totales s'élevaient à $10.8M. La perte nette des opérations continuées était de $3M, soit une amélioration significative par rapport à la perte de $10.2M de l'année dernière. Trésorerie et équivalents de trésorerie se sont élevés à $24M, contre $42.7M à la fin de l'année 2023. Vineet Khosla a rejoint le conseil d'administration, apportant son expertise en IA et ML.
Quarterhill (TSX: QTRH, OTCQX: QTRHF), ein führendes Unternehmen im Bereich Maut- und Durchsetzungs-Lösungen, hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht. Wichtige Höhepunkte beinhalten:
- Umsatz von $41.5M, ein Anstieg von 7.5% im Vergleich zum Vorjahr
- Bereinigtes EBITDA von $1.7M, Rückgang von $2.9M im letzten Jahr
- Positiver Cashflow aus dem operativen Geschäft von $0.8M, im Vergleich zu einem negativen $10.3M im 2. Quartal 2023
- Rückstand an Umsätzen von $500M
Der Bruttogewinn fiel jedoch auf $8.5M (21% Marge) von $10M (26% Marge) im 2. Quartal 2023. Die Gesamtausgaben betrugen $10.8M. Der Nettoverlust aus fortführenden Geschäften belief sich auf $3M, was eine erhebliche Verbesserung gegenüber dem Verlust von $10.2M im letzten Jahr darstellt. Flüssige Mittel und Zahlungsmitteläquivalente beliefen sich auf $24M, ein Rückgang von $42.7M zum Jahresende 2023. Vineet Khosla trat dem Vorstand bei und brachte Expertise in KI und ML mit.
- Revenue increased 7.5% to $41.5M YoY
- Positive cash flow from operations at $0.8M compared to negative $10.3M in Q2 2023
- Revenue backlog of $500M
- Net loss improved to $3M from $10.2M YoY
- Adjusted EBITDA decreased to $1.7M from $2.9M YoY
- Gross profit dropped to $8.5M (21% margin) from $10M (26% margin) YoY
- Cash and cash equivalents decreased to $24M from $42.7M at year-end 2023
- Mr. Vineet Khosla, AI and Machine Learning Pioneer, joins the Board of Directors
Quarterhill has changed the presentation currency of its financial statements to US dollars, its functional currency. A significant proportion of the Company's sales, expenses, assets, and liabilities are denominated in US dollars. This change in presentation currency aims to enhance external stakeholders' ability to assess Quarterhill's financial performance and to reduce the impact of foreign exchange volatility.
Q2 2024 Highlights
- Revenue was
, up$41.5 million 7.5% compared to in Q2 2023.$38.6 million - Adjusted EBITDA1 was
compared to$1.7 million in Q2 2023.$2.9 million - Cash from operations was
compared to cash used in operations of$0.8 million ( in Q2 2023.$10.3) million - Revenue backlog3 was
at June 30, 2024.$500 million - Completed acquisition of Red Fox I.D. Limited ("Red Fox"), expanding the Company's software offerings.
- Red Fox won two prestigious King's Awards: one for innovation and one for excellence in international trade.
"Q2 saw continued execution on our goals to drive top-line growth, expand Adjusted EBITDA margin and improve cash flow," said Chuck Myers, CEO at Quarterhill. "Adjusted EBITDA margin grew sequentially from Q1, and we anticipate continued progress in growing our margin throughout the year. Additionally, we generated positive cash flow from operations for the first time in two years and expect our cash balance to grow through the end of the year."
"Our two business units – tolling and enforcement – made progress in Q2 on their ongoing projects as well as closing new business, resulting in a contracted revenue backlog of
Board of Directors Update
Quarterhill announces that Vineet Khosla, Chief Technology Officer at the Washington Post, has joined the Board of Directors, effective immediately. Mr. Khosla has an extensive track record as an innovator and executive at some of the world's largest technology companies. A pioneering researcher and leading voice in AI, machine learning, and cloud computing, he has driven significant advancements in these fields.
Since joining the Washington Post in 2023, Mr. Khosla has led the engineering team, executing the next phase of the company's innovation strategy. Prior to the Post, Vineet served as Senior Engineering Manager at Uber, where he was responsible for the development of their map routing engine, which optimizes routes and timing. Before his tenure at Uber, he was the first engineering hire for Siri's natural language engine at Apple, where he spent over eight years in senior engineering roles, developing and managing Siri's AI engine. Mr. Khosla holds a Master's in AI from the University of
"We are very pleased to welcome Vineet to the Board," said Rusty Lewis, Chair of the Board at Quarterhill. "His deep expertise in AI and machine learning, combined with his experience at the intersection of transportation and technology, will play a key role in the development of our product roadmap and our push to expand the software side of our business."
Q2 2024 Financial Review
Quarterhill's Management's Discussion and Analysis and financial statements for the three and six months ended June 30, 2024 are available at the Company's website and at its profile at SEDAR+.
Financial statements for the three and six months ended June 30, 2023, have been prepared to reflect continuing operations, and therefore, exclude results during that period from Wi-LAN Inc. ("WiLAN"), which was sold by Quarterhill on June 15, 2023.
Revenues for the three and six months ended June 30, 2024, were
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 performed. Gross profit for the three and six months ended June 30, 2024, was
Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and six months ended June 30, 2024, were
Adjusted EBITDA1 for the three and six months ended June 30, 2024, was
Net loss from continuing operations for the three and six months ended June 30, 2024, was
Cash generated (used) in continuing operations for the three and six months ended June 30, 2024, was
Cash and cash equivalents were
Adjusted Working Capital4 was
1. | Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information. |
2. | Please refer to Gross Margin % in the Supplementary Financial Measures section for further information. |
3. | Please refer to the Backlog - Non-IFRS Financial Measures section for further information. |
4. | Please refer to the Adjusted Working Capital - Non-IFRS Financial Measures section for further information. |
Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results on Friday, August 9, 2024, at 10:00 AM Eastern Time.
Webcast Information
- Live audio webcast will be available at: https://app.webinar.net/E0GnDAr2wRQ
- Webcast replay will be available at: https://app.webinar.net/E0GnDAr2wRQ
Traditional Dial-in Information
- To access the call from the
U.S. andCanada , dial 1.800.836.8184 (Toll Free) - To access the call from other locations, dial 1.289.819.1350 (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/4cZxWpC
Telephone Replay
Telephone replay will be available from August 9, 2024, until August 16, 2024, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.
Conference ID: 52352 and Replay Passcode: 52352#
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 one-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; (ix) dividends received from joint ventures; and * changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net (loss) income 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.
Adjusted Working Capital
Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months.
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 technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, 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 information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. In particular, this news release contains forward-looking statements pertaining to, but not limited to, the following: operational and financial expectations for the 2024 financial year, including revenue, gross margin and Adjusted EBITDA expectations; and the Company's business plan.
Although the forward-looking statements contained in this news release are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, but not limited to: the Company's ability to execute on its business plan; successful integration of Red Fox; general economic and industry trends; operating assumptions relating to the Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; and the other assumptions set forth in the Company's most recent annual information form available under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Company's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in demand for the Company's products and services; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar outbreaks; and the other risks set forth in the Company's most recent annual information form and management's discussion and analysis for the three and twelve months ended December 31, 2023 available under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. 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.
This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2024. FOFI, as with forward-looking statements generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's financial results may differ materially from the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is presented for illustrative purposes only and may not be an indication of the Company's actual financial position or results of operations.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in
Three months ended June 30, | Six months ended June 30, | |||
2024 | 2023 | 2024 | 2023 | |
(restated) | (restated) | |||
Revenues | ||||
Direct cost of revenues | 32,997 | 28,616 | 61,537 | 53,205 |
Gross profit | 8,516 | 10,007 | 14,873 | 13,764 |
Operating expenses | ||||
Selling, general and administrative expenses | 7,073 | 6,132 | 13,448 | 13,090 |
Research and development expenses | 479 | 1,008 | 796 | 1,877 |
Depreciation of right-of-use assets | 364 | 384 | 708 | 721 |
Depreciation of property, plant and equipment | 383 | 407 | 760 | 818 |
Amortization of intangible assets | 2,140 | 2,088 | 4,377 | 4,175 |
Other charges | 321 | 555 | 1,155 | 1,519 |
10,760 | 10,574 | 21,244 | 22,200 | |
Results from operations | (2,244) | (567) | (6,371) | (8,436) |
Finance income | (97) | (27) | (365) | (60) |
Finance expense | 1,651 | 1,731 | 3,356 | 3,368 |
Foreign exchange (gain) loss | (387) | 769 | (1,497) | 1,104 |
Other income | (267) | (227) | (134) | (458) |
Change in fair value of derivative liability | (432) | (11) | (927) | (215) |
Loss before taxes | (2,712) | (2,802) | (6,804) | (12,175) |
Current income tax expense (recovery) | 272 | (2,688) | 345 | (2,570) |
Deferred income tax (recovery) expense | (17) | 10,073 | 36 | 9,665 |
Income tax expense | 255 | 7,385 | 381 | 7,095 |
Net loss from continuing operations | (2,967) | (10,187) | (7,185) | (19,270) |
Net loss from discontinued operations | - | (11,594) | - | (14,061) |
Net loss | (2,967) | (21,781) | (7,185) | (33,331) |
Other comprehensive loss that may be reclassified | ||||
Foreign currency translation adjustment | (247) | (2,905) | (932) | (2,590) |
Comprehensive loss | ( | ( | ( | ( |
Loss per share - Basic | ||||
From continuing operations | ( | ( | ( | ( |
From discontinued operations | - | (0.10) | - | (0.12) |
Loss per share - Basic | ( | ( | ( | ( |
Loss per share - Diluted | ||||
From continuing operations | ( | ( | ( | ( |
From discontinued operations | - | (0.10) | - | (0.12) |
Loss per share - Diluted | ( | ( | ( | ( |
Interim Condensed Consolidated Statements of Financial Position
(in thousands and in
As at | June 30, 2024 | December 31, 2023 | January 1, 2023 |
(restated) | (restated) | ||
Current assets | |||
Cash and cash equivalents | |||
Short-term investments | - | - | 1,142 |
Restricted short-term investments | - | - | 4,812 |
Accounts receivable, net | 29,396 | 27,291 | 17,155 |
Unbilled revenue | 39,465 | 34,247 | 30,529 |
Income taxes receivable | 130 | - | 251 |
Inventories (net of obsolescence) | 11,453 | 10,760 | 10,076 |
Prepaid expenses and deposits | 4,067 | 4,795 | 5,050 |
108,552 | 119,826 | 117,920 | |
Non-current assets | |||
Accounts and other long-term receivables | 4,516 | 4,364 | 397 |
Long-term prepaid expenses and deposits | - | - | 1,257 |
Right-of-use assets, net | 5,452 | 5,288 | 7,600 |
Property, plant and equipment, net | 3,786 | 4,136 | 5,104 |
Intangible assets, net | 79,799 | 79,092 | 104,164 |
Investment in joint venture | 4,782 | 5,054 | 5,712 |
Investment in other entity | 2,898 | 2,898 | - |
Deferred compensation asset | 1,048 | 952 | 991 |
Deferred income tax assets | - | - | 18,903 |
Goodwill | 31,046 | 29,019 | 41,556 |
133,327 | 130,803 | 185,684 | |
TOTAL ASSETS | |||
Liabilities | |||
Current liabilities | |||
Accounts payable and accrued liabilities | |||
Income taxes payable | 734 | 662 | 724 |
Current portion of lease liabilities | 2,056 | 1,954 | 1,924 |
Current portion of deferred revenue | 6,869 | 5,806 | 6,295 |
Current portion of long-term debt | 2,125 | 2,125 | 21,588 |
Convertible debentures | 37,840 | 38,196 | 35,655 |
Derivative liability | 1,296 | 2,290 | 1,316 |
79,270 | 81,363 | 102,187 | |
Non-current liabilities | |||
Deferred revenue | 1,252 | 621 | 2,022 |
Long-term lease liabilities | 5,529 | 5,727 | 7,116 |
Long-term debt | 16,293 | 17,312 | - |
Deferred compensation liabilities | 1,065 | 945 | 862 |
Deferred income tax liabilities | 2,032 | 1,221 | 1,519 |
26,171 | 25,826 | 11,519 | |
TOTAL LIABILITIES | 105,441 | 107,189 | 113,706 |
Shareholders' equity | |||
Capital stock | 314,119 | 313,738 | 401,248 |
Contributed surplus | 126,863 | 126,129 | 37,545 |
Accumulated other comprehensive income | 14,720 | 15,652 | 15,928 |
Deficit | (319,264) | (312,079) | (264,823) |
136,438 | 143,440 | 189,898 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
Interim Condensed Consolidated Statements of Cash Flows
(in thousands and in
Three months ended June 30, | Six months ended June 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
(restated) | |||||
Operating activities: | |||||
Net loss from continuing operations | ( | ( | ( | ( | |
Add (deduct) non-cash items: | |||||
Stock-based compensation expense | 708 | 39 | 1,212 | 270 | |
Depreciation and amortization | 2,887 | 2,879 | 5,845 | 5,714 | |
Foreign exchange (gain) loss | (387) | 769 | (1,497) | 1,104 | |
Other income | (315) | (227) | (134) | (458) | |
Deferred and non-cash income tax (recovery) expense | (17) | 10,073 | 36 | 9,665 | |
Embedded derivatives | (33) | - | 6 | 93 | |
Change in fair value of derivative liability | (432) | (11) | (927) | (215) | |
Non-cash interest expense | 552 | 873 | 1,092 | 1,351 | |
Net change in non-cash working capital balances | 806 | (11,083) | (7,760) | (11,704) | |
Cash generated from (used in) continuing operations | 802 | (6,875) | (9,312) | (13,450) | |
Net operating cash flows attributable to discontinued operations | - | (3,378) | - | (4,685) | |
Net cash generated from (used in) operating activities | 802 | (10,253) | (9,312) | (18,135) | |
Financing activities: | |||||
Dividends paid | - | (1,067) | - | (2,127) | |
Payment of lease liabilities | (561) | (436) | (1,138) | (828) | |
Repayment of long-term debt | (531) | (625) | (1,062) | (1,250) | |
Cash used in financing activities | (1,092) | (2,128) | (2,200) | (4,205) | |
Net financing cash flows attributable to discontinued operations | - | (51) | - | (100) | |
Net cash used in financing activities | (1,092) | (2,179) | (2,200) | (4,305) | |
Investing activities: | |||||
Net proceeds from disposition of a subsidiary | - | 32,021 | - | 32,021 | |
Cash sold on disposition of a subsidiary | - | (8,000) | - | (8,000) | |
Acquisition of business, Red Fox | (7,181) | - | (7,181) | - | |
Cash acquired on acquisition of business, Red Fox | 2,296 | - | 2,296 | - | |
Proceeds from sale of property, plant and equipment | 10 | - | 10 | - | |
Purchase of property, plant and equipment | (344) | (305) | (545) | (638) | |
Capitalized software costs | (650) | (932) | (1,373) | (2,316) | |
Cash (used in) generated from investing activities | (5,869) | 22,784 | (6,793) | 21,067 | |
Net investing cash flows attributable to discontinued operations | - | 1,194 | - | 1,194 | |
Net cash used in investing activities | (5,869) | 23,978 | (6,793) | 22,261 | |
Foreign exchange on cash held in foreign currencies | (223) | (2,514) | (386) | (2,692) | |
Net (decrease) increase in cash and cash equivalents | (6,382) | 9,032 | (18,692) | (2,871) | |
Cash and cash equivalents, beginning of period | 30,423 | 37,002 | 42,733 | 48,905 | |
Cash and cash equivalents, end of period |
Interim Condensed Consolidated Statements of Shareholders' Equity
(in thousands and in
Capital | Contributed | Accumulated | Deficit | Total | |
Balance, January 1, 2023 (restated) | ( | ||||
Net loss | - | - | - | (33,331) | (33,331) |
Other comprehensive loss | - | - | (2,590) | - | (2,590) |
Stock-based compensation expense | - | 288 | - | - | 288 |
Common shares issued from restricted stock units | 60 | (63) | - | - | (3) |
Reduction of stated capital | (87,948) | 87,948 | - | - | - |
Dividends declared | - | - | - | (1,060) | (1,060) |
Balance, June 30, 2023 | ( | ||||
Balance, January 1, 2024 | ( | ||||
Net loss | - | - | - | (7,185) | (7,185) |
Other comprehensive loss | - | - | (932) | - | (932) |
Stock-based compensation expense | - | 1,212 | - | - | 1,212 |
Common shares issued from restricted stock units | 326 | (423) | - | - | (97) |
Common shares issued from deferred stock units | 55 | (55) | - | - | - |
Balance, June 30, 2024 | ( |
Reconciliation of Net Loss to Adjusted EBITDA
(in thousands and in
Three months ended June 30, | ||||
2024 | 2023 | |||
$ | Per Share [2] | $ | Per Share | |
(restated) | ||||
Net loss from continuing operations | ( | ( | ( | ( |
Adjusted for: | ||||
Income tax expense | 255 | 0.00 | 7,385 | 0.06 |
Foreign exchange (gain) loss | (387) | (0.00) | 769 | 0.01 |
Finance expense, net | 1,554 | 0.01 | 1,704 | 0.02 |
Other charges | 321 | 0.00 | 555 | 0.01 |
Depreciation and amortization | 2,887 | 0.03 | 2,879 | 0.03 |
Stock based compensation expense | 708 | 0.01 | 39 | 0.00 |
Change in fair value of derivative liability | (432) | (0.00) | (11) | (0.00) |
Other income | (267) | (0.00) | (227) | (0.00) |
Adjusted EBITDA [1] | ||||
________________ | ________________ | ________________ | ________________ | |
Weighted average number of Common Shares | ||||
Basic | 115,274,980 | 114,649,772 |
Six months ended June 30, | ||||
2024 | 2023 | |||
$ | Per Share [2] | $ | Per Share | |
(restated) | ||||
Net loss from continuing operations | ( | ( | ( | ( |
Adjusted for: | ||||
Income tax expense | 381 | - | 7,095 | 0.06 |
Foreign exchange gain | (1,497) | (0.01) | 1,104 | 0.01 |
Finance expense, net | 2,991 | 0.03 | 3,308 | 0.03 |
Other charges | 1,155 | 0.01 | 1,519 | 0.01 |
Depreciation and amortization | 5,845 | 0.05 | 5,714 | 0.05 |
Stock based compensation expense | 1,212 | 0.01 | 270 | 0.00 |
Change in fair value of derivative liability | (927) | (0.01) | (215) | (0.00) |
Other income | (134) | - | (458) | (0.00) |
Adjusted EBITDA [1] | ( | ( | ||
________________ | ________________ | ________________ | ________________ | |
Weighted average number of Common Shares | ||||
Basic | 115,186,092 | 114,644,764 |
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. |
View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q2-2024-financial-results-302218638.html
SOURCE Quarterhill Inc.
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