Quarterhill Announces Q3 Fiscal 2022 Financial Results

Rhea-AI Summary

Quarterhill reported its Q3 fiscal 2022 financial results, showing consolidated revenue of $42.4 million, up from $36.3 million year-over-year. ITS revenue reached $42.2 million with an Adjusted EBITDA of $1.9 million. Their cash and equivalents stood at $76.0 million, with working capital at $112.8 million. The company reduced its long-term debt to $30.2 million, down from $62.1 million last year. The Board also declared a quarterly dividend of $0.0125 per share for January 2023. Looking ahead, Quarterhill anticipates growth in both revenue and Adjusted EBITDA for 2023.

Positive

• Consolidated revenue increased to $42.4 million from $36.3 million YoY.
• Adjusted EBITDA improved to $1.9 million from a negative $4.5 million YoY.
• Cash and cash equivalents increased to $76.0 million.
• Long-term debt reduced to $30.2 million, down from $62.1 million YoY.
• Declared a dividend of $0.0125 per common share.

Negative

• Net loss of $9.7 million in Q3 2022, compared to a loss of $2.0 million YoY.
• Consolidated Adjusted EBITDA decreased to ($2.7) million from $7.6 million YoY.
• Gross margin declined to 21% in Q3 2022 from 42% in Q3 2021.
• ITS Adjusted EBITDA fell to $1.9 million from $4.5 million YoY due to project delays and inflationary pressures.

TORONTO, Nov. 10, 2022 /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, as well as, through its Wi-LAN Inc. ("WiLAN") subsidiary, a leader in Intellectual Property licensing, announces its financial results for the three- and nine-month periods ended September 30, 2022. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

Q3 Fiscal 2022 Highlights

• ITS revenue of $42.2 million; consolidated revenue of $42.4 million
• ITS Adjusted EBITDA¹ of $1.9 million; consolidated Adjusted EBITDA of ($2.7) million
• Cash, cash equivalents, and short-term investments were $76.0 million at September 30, 2022
• Working capital² was $112.8 million at September 30, 2022
• Total expected revenue backlog³ of US$581 million
• Alameda CTC Issues an "Intent to Award" Electronic Transaction Consultants ("ETC") a Contract for Electronic Toll System Integration
• International Bridge, Tunnel & Turnpike Association Recognizes ETC with 2022 Toll Excellence Award for Private Sector
• International Road Dynamics ("IRD") awarded a two-year $13.8 million contract in New York State
• Reduced leverage with a $20.8 million debt repayment; total long-term debt was $30.2 million at quarter-end compared to $62.1 million at September 30, 2021

"With the benefit of a pick-up in implementation activity, our ITS business delivered solid sequential growth in Q3 with revenue increasing 8% from Q2 and Adjusted EBITDA increasing to $1.9 million from negative $4.5 million," said Bret Kidd, CEO of Quarterhill. "The environment for implementation activity improved in Q3, though certain factors, such as labour scarcity and shifting customer priorities, continue to have some impact on the pace of certain project roll-outs and inflationary conditions are putting upward pressure on costs for some materials. While these market conditions have persisted into Q4, we expect to continue to make progress on our implementation activity in the current quarter, which we believe will result in sequential top-line growth though inflationary pressures are expected to lead to flat-to-modestly-higher Adjusted EBITDA."

"Looking out to 2023, we expect to grow both our top-line and expand our Adjusted EBITDA margin. With a solid base of contracted revenue in place for 2023, a sales pipeline valued in the billions and the potential for follow-on orders from existing customers, we believe we have good visibility into next year. 2023 will see the continuation of a significant level of implementation business, with some projects likely to convert to the higher margin operations phase later in the year and we expect to increase the number of new projects that we bid on during the year to further lay the foundation for future growth. We also continue to make progress on integrating areas of our ITS businesses and expect to realize further strategic and cost benefits from these actions in 2023."

Mr. Kidd continued: "WiLAN's results in Q3 reflect the variability in the patent licensing business model. When viewed over a longer time horizon, the business has a track record for generating strong cash flows and its positive results year-to-date in 2022 further reinforce that reputation. Subsequent to quarter-end, WiLAN signed a license agreement with Micron, which will be reflected in its Q4 results."

"The strategic review for WiLAN continues to progress and follow the customary steps in such a process, and we will update shareholders accordingly as material developments occur."

Approval of Eligible Dividend

The Board of Directors has declared an eligible quarterly dividend of $0.0125 per common share payable on January 9, 2023, to shareholders of record on December 9, 2022.

Q3 Fiscal 2022 Financial Review

Quarterhill's revenue is broadly segmented into ITS, reflecting the IRD and ETC businesses, and Licensing, reflecting the WiLAN business. ETC was acquired September 1, 2021 and as a result, the comparative financial statements for the three and nine months ended September 30, 2021 include only one month of results from ETC.

Quarterhill's Management's Discussion and Analysis and financial statements for the three and nine months ended September 30, 2022 ("Q3 2022" and "2022 year-to-date") are available at the Company's website and at its profile at SEDAR.

Consolidated revenues for the three and nine months ended September 30, 2022, were $42.4 million and $254.8 million, compared to $36.3 million and $74.5 million in the same periods of the prior year. ITS revenue has increased in 2022 due primarily to the acquisition of ETC in September 2021. The majority of WiLAN's licenses are generally one-time in nature and significant fluctuations in revenue, gross margin, and Adjusted EBITDA can result when the volume or dollar value of licenses changes from one period to the next. WiLAN's revenue was lower in Q3 2022 than in the prior year quarter but increased significantly in the 2022 year-to-date period compared to the same period last year.

Gross margin percent² for the three and nine months ended September 30, 2022, was 21% and 42%, compared to 42% and 34% in the same periods of the prior year. Gross margin in the ITS segment was 27% in Q3 2022 compared to 37% in Q3 2021. ITS margins reflect the addition of the ETC business and may fluctuate on a quarterly basis depending primarily on the nature, and stage, of projects underway during the period, their related margin profile and the timing for which associated costs and revenue are recognized. Licensing gross margin in the quarter was negative compared to positive gross margin in the prior year period due to a greater level of licensing activity in Q3 2021. For the 2022 year-to-date period, licensing gross margin was 58% compared to 24% in the same period last year due to more significant licensing activity occurring earlier in 2022. Licensing gross margin will fluctuate depending primarily on the level of litigation and contingent legal and partner costs incurred in a respective period relative to revenue generated. 

Operating expenses include selling, general and administrative costs ("SG&A"), research and development costs ("R&D"), depreciation and amortization and other charges. Operating expenses for the three and nine months ended September 30, 2022, were $21.4 million and $80.6 million, compared to $19.1 million and $43.8 million in the same periods of the prior year. Operating expenses for the 2022 year-to-date period include a one-time $14.6 million charge to settle litigation and arbitration disputes with the former owners of VIZIYA. Operating expenses increased in the Q3 2022 and 2022 year-to-date periods due primarily to the addition of expenses from the acquisition of ETC in September 2021 as well as inflationary pressures on materials and personnel experienced in 2022.

Consolidated Adjusted EBITDA¹ for the three and nine months ended September 30, 2022, was ($2.7) million and $67.0 million, compared to $7.6 million and $4.1 million in the same periods of the prior year. ITS Adjusted EBITDA in Q3 2022 was $1.9 million compared to $4.5 million in Q3 2021. Q3 2022 consolidated Adjusted EBITDA decreased due primarily to a lower level of contract activity in the licensing business as well as a greater portion of ITS revenue coming from implementation-stage projects where a lower gross margin is generated at that phase of the project, lower revenue due to some continued delays on certain ITS projects and the higher cost of materials and personnel in the current inflationary environment. Consolidated Adjusted EBITDA¹ for the 2022 year-to-date period increased year-over-year due to the strong performance in Q1 2022 from the licensing business.

Net income (loss) for the three and nine months ended September 30, 2022, was ($9.7) million, or ($0.08) per diluted share, and $22.9 million, or $0.18 per diluted share, compared to ($2.0) million, or ($0.02) per diluted share, and ($12.7) million, or ($0.11) per diluted share, in the same periods of the prior year.

Cash generated from (used in) operations for the three and nine months ended September 30, 2022, was ($26.9) million and $41.3 million, compared to ($10.9) million and ($15.0) million in the same periods of the prior year. Cash used in operations in Q3 2022 included a $14.6 million payment to settle litigation and arbitration disputes with the former owners of VIZIYA. The Company's Q3 2022 cash used in financing activities included a $20.8 million repayment of its long-term debt, bringing total long-term debt repayments made in the 2022 year-to-date period to $35.3 million.

Cash and cash equivalents and short-term investments were $76.0 million at September 30, 2022, compared to $72.6 million at December 31, 2021. Working capital at September 30, 2022, was $112.8 million compared to $105.1 million at December 31, 2021.

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/b1AYZ8A2LOj

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)

Replay Information
Webcast replay will be available for 365 days at:
https://app.webinar.net/b1AYZ8A2LOj 

Telephone replay will be available until 11:59 p.m. Eastern Daylight Time on November 17, 2022 at: 1.888.390.0541 (Toll Free North America) or 1.416.764.8677 (International). The telephone replay requires the passcode 630519.

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.

Working capital
Calculated as total current assets minus total current liabilities.

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: 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.

Quarterhill Inc.
Interim Condensed Consolidated Statements of (Loss) Income and Comprehensive Income (Loss) (Unaudited)
(in thousands and in Canadian dollars, except share and per share amounts)
		Three months ended September 30,				Nine months ended September 30,
		2022		2021		2022		2021
Revenues
Licensing		$                248		$           11,416		$        135,625		$           21,014
Intelligent Transportation Systems		42,185		24,927		119,192		53,520
		42,433		36,343		254,817		74,534
Direct cost of revenues
Licensing		2,976		5,318		56,469		16,041
Intelligent Transportation Systems		30,663		15,612		91,549		33,133
		33,639		20,930		148,018		49,174
Gross profit		8,794		15,413		106,799		25,360
Operating expenses
Depreciation of right-of-use assets		599		418		1,734		1,001
Depreciation of property, plant and equipment		612		323		1,619		812
Amortization of intangible assets		6,015		5,156		18,561		13,994
Selling, general and administrative expenses		12,242		8,831		40,117		22,242
Research and development expenses		516		728		1,953		1,701
Other charges		1,405		3,666		16,608		4,048
		21,389		19,122		80,592		43,798
Results from operations		(12,595)		(3,709)		26,207		(18,438)
Finance income		(176)		(56)		(671)		(110)
Finance expense		1,878		343		7,385		524
Foreign exchange gain		(1,546)		(637)		(1,806)		(655)
Other income		(1,170)		(661)		(9,427)		(1,847)
(Loss) income before taxes		(11,581)		(2,698)		30,726		(16,350)
Current income tax expense		312		270		1,469		1,044
Deferred income tax (recovery) expense		(2,179)		(965)		6,402		(4,728)
Income tax (recovery) expense		(1,867)		(695)		7,871		(3,684)
Net (loss) income		$            (9,714)		$            (2,003)		$           22,855		$          (12,666)
Other comprehensive income (loss) that may be reclassified subsequently to net (loss) income:
Foreign currency translation adjustment		15,215		4,439		17,764		(2,407)
Comprehensive income (loss)		$             5,501		$             2,436		$           40,619		$          (15,073)
Net (loss) income per share
Basic		$              (0.08)		$              (0.02)		$               0.20		$              (0.11)
Diluted		$              (0.08)		$              (0.02)		$               0.18		$              (0.11)

 

Quarterhill Inc.
Interim Condensed Consolidated Statements of Financial Position (Unaudited)
(in thousands and in Canadian dollars)
As at		September 30, 2022		December 31, 2021
Current assets
Cash and cash equivalents		$                        74,201		$                        70,746
Short-term investments		1,824		1,851
Restricted short-term investments		7,012		3,095
Accounts receivable		20,450		30,176
Unbilled revenue		41,751		35,926
Income taxes recoverable		515		385
Inventories (net of obsolescence)		13,553		13,731
Prepaid expenses and deposits		7,204		5,192
		166,510		161,102
Non-current assets
Accounts receivable		544		505
Prepaid expenses and deposits		1,591		945
Right-of-use assets, net		9,758		7,761
Property, plant and equipment, net		6,814		5,694
Intangible assets, net		145,775		151,355
Investment in joint venture		7,669		7,458
Deferred compensation asset		1,640		1,524
Deferred income tax assets		28,283		37,786
Goodwill		56,630		53,065
		258,704		266,093
TOTAL ASSETS		$                     425,214		$                      427,195
Liabilities
Current liabilities
Accounts payable and accrued liabilities		38,218		42,008
Income taxes payable		1,144		700
Current portion of lease liabilities		2,270		2,166
Current portion of deferred revenue		8,684		7,989
Current portion of long-term debt		3,424		3,181
		53,740		56,044
Non-current liabilities
Deferred revenue		3,974		2,839
Long-term lease liabilities		7,602		5,626
Long-term debt		26,803		58,968
Convertible debentures		47,427		45,959
Derivative liability		2,118		9,441
Deferred compensation liability		1,453		1,350
Deferred income tax liabilities		1,149		5,852
		90,526		130,035
TOTAL LIABILITIES		144,266		186,079
Shareholders' equity
Capital stock		546,169		544,345
Contributed surplus		51,091		49,937
Accumulated other comprehensive income		17,908		144
Deficit		(334,220)		(353,310)
		280,948		241,116
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$                     425,214		$                      427,195

 

Quarterhill Inc.
Interim Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands and in Canadian Dollars)
		Three months ended September 30,				Nine months ended September 30,
		2022		2021		2022		2021
Cash used in operations
Net (loss) income		$           (9,714)		$            (2,003)		$           22,855		$         (12,666)
Non-cash items
Stock-based compensation expense		589		374		1,540		1,384
Depreciation of right-of-use assets		599		418		1,734		1,001
Interest expense on lease liabilities		—		66		—		150
Depreciation and amortization		6,627		5,479		20,180		14,806
Foreign exchange loss (gain)		(1,546)		(637)		(1,806)		(655)
Other income		(262)		(587)		(2,104)		(1,774)
Impairment losses on intangible assets		—		158		—		158
Loss on disposal of assets		—		—		70		—
Deferred income tax expense (recovery)		(2,179)		(965)		6,402		(4,728)
Embedded derivatives		881		49		341		54
Gain from change in fair value of derivative liability		(908)		—		(7,323)		—
Changes in non-cash working capital balances		(20,961)		(13,266)		(617)		(12,773)
Net cash generated (used in) from operating activities		(26,874)		(10,914)		41,272		(15,043)
Financing
Dividends paid		(1,420)		(1,420)		(4,260)		(4,274)
Advances from revolving credit facilities		—		12,727		—		12,727
Increase in long-term debt		—		62,926		—		62,926
Payment of lease liabilities		(777)		(523)		(1,847)		(1,085)
Repayment of long-term debt		(20,777)		—		(35,280)		—
Repurchase of shares for cancellation		—		—		—		(2,065)
Common shares issued for cash on the exercise of options		54		46		1,149		280
Net cash (used in) generated from financing activities		(22,920)		73,756		(40,238)		68,509
Investing
Proceeds from restricted short-term investments		—		—		1,707		—
Proceeds from short-term investments		—		—		301		3,000
Purchase of restricted short-term investments		—		—		(5,223)		(3,025)
Proceeds from sale of property, plant and equipment		—		—		211		—
Purchase of property, plant and equipment		(1,391)		(331)		(2,487)		(419)
Acquisition of business, VDS		—		—		—		(2,780)
Acquisition of business, ETC		—		(151,469)		—		(151,469)
Dividend received from joint venture		718		1,348		718		1,348
Purchase of intangible assets		(2,083)		(252)		(3,303)		(252)
Net cash used in investing activities		(2,756)		(150,704)		(8,076)		(153,597)
Foreign exchange on cash held in foreign currencies		5,390		1,924		10,497		(1,644)
Net increase (decrease) in cash and cash equivalents		(47,160)		(85,938)		3,455		(101,775)
Cash and cash equivalents, beginning of		121,361		119,863		70,746		135,700
Cash and cash equivalents, end of		$           74,201		$           33,925		$          74,201		$           33,925

 

Quarterhill Inc.
Interim Condensed Consolidated Statement of Equity (Unaudited)
(in thousands and in Canadian dollars)
	Capital Stock	Contributed Surplus	Accumulated Other Comprehensive Income	Deficit	Total Shareholders' Equity
January 1, 2021	$             547,537	$               46,250	$                 3,581	$           (325,438)	$             271,930
Net loss	—	—	—	(12,666)	(12,666)
Repurchase of shares for cancellation	(4,027)	1,962	—	—	(2,065)
Other comprehensive loss	—	—	(2,407)	—	(2,407)
Stock-based compensation expense	—	1,384	—	—	1,384
Exercise of options	387	(107)	—	—	280
Common shares issued from restricted stock units	156	(12)	—	—	144
Common shares issued from performance stock units	12	(12)	—	—	—
Dividends declared	—	—	—	(4,274)	(4,274)
September 30, 2021	$             544,065	$               49,465	$                 1,174	$           (342,378)	$             252,326
January 1, 2022	$             544,345	$               49,937	$                    144	$           (353,310)	$             241,116
Net income	—	—	—	23,350	23,350
Other comprehensive income	—	—	17,764	—	17,764
Stock-based compensation expense	—	1,540	—	—	1,540
Exercise of stock options	1,778	(629)	—	—	1,149
Common shares issued from restricted stock units	—	289	—	—	289
Common shares issued from performance stock units	46	(46)	—	—	—
Dividends declared	—	—	—	(4,260)	(4,260)
September 30, 2022	$             546,169	$               51,091	$               17,908	$           (334,220)	$             280,948

 

Quarterhill Inc.
Reconciliation of Net (loss) income to Adjusted EBITDA (Unaudited)
(in thousands and in Canadian dollars, except share and per share amounts)
	Three months ended September 30,
	2022			2021
	$	Per Share		$	Per Share
Net (loss) income from continuing operations	$            (9,714)	$              (0.08)		$             (2,003)	$               (0.02)
Adjusted for:
Income tax (recovery) expense	(1,867)	(0.02)		(695)	(0.01)
Foreign exchange (gain) loss	(1,546)	(0.01)		(637)	(0.01)
Finance expense, net	1,702	0.01		287	—
Other charges	1,405	0.01		3,666	0.04
Depreciation and amortization	7,226	0.06		5,897	0.06
Stock based compensation expense	589	0.01		374	—
Dividends received from joint venture	718	0.01		1,348	0.01
Other income	(1,170)	(0.01)		(661)	(0.01)
Adjusted EBITDA[1]	$             (2,657)	$               (0.02)		$              7,576	$                0.06
Weighted average number of Common Shares
Basic		114,601,779			113,756,329

 

Quarterhill Inc.
Reconciliations of Net income to Adjusted EBITDA
(in thousands of Canadian dollars, except share and per share amounts)
		Nine months ended September 30,
		2022			2021
		$	Per Share		$	Per Share
Net loss from continuing operations		$            22,855	$                0.20		$          (12,666)	$               (0.11)
Adjusted for:
Income tax expense		7,871	0.07		(3,684)	(0.03)
Foreign exchange (gain) loss		(1,806)	(0.02)		(655)	—
Finance expense, net		6,714	0.06		414	—
Other charges		16,608	0.15		4,048	0.04
Amortization of intangible assets		21,914	0.19		15,807	0.15
Stock based compensation expense		1,540	0.01		1,384	0.01
Dividends received from joint venture		718	0.01		1,348	0.01
Other income		(9,427)	(0.08)		(1,847)	(0.02)
Adjusted EBITDA[1]		$            66,987	$                0.59		$              4,149	$                0.05
Weighted average number of Common Shares
Basic			114,305,328			113,756,329

 

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-q3-fiscal-2022-financial-results-301673992.html

SOURCE Quarterhill Inc.

FAQ

What are Quarterhill's Q3 2022 revenue results?

Quarterhill reported consolidated revenue of $42.4 million for Q3 2022, up from $36.3 million in the same quarter last year.

How did Quarterhill perform in terms of Adjusted EBITDA in Q3 2022?

Quarterhill's Adjusted EBITDA for Q3 2022 was $1.9 million, a significant improvement from a negative $4.5 million in Q3 2021.

What is Quarterhill's current debt situation?

As of September 30, 2022, Quarterhill's long-term debt stands at $30.2 million, reduced from $62.1 million a year earlier.

Has Quarterhill declared any dividends recently?

Yes, Quarterhill's Board declared a quarterly dividend of $0.0125 per common share payable on January 9, 2023.

What is the outlook for Quarterhill in 2023?

Quarterhill expects to grow its top-line revenue and expand its Adjusted EBITDA margin in 2023, supported by a strong backlog and sales pipeline.