Quarterhill Announces Q4 and Fiscal 2024 Financial Results

Rhea-AI Summary

Quarterhill Inc. (QTRHF) reported its Q4 and fiscal 2024 financial results, showing mixed performance in its turnaround efforts. Q4 2024 revenue was $38.9 million, down from $43.0 million in Q4 2023, while fiscal 2024 revenue increased to $153.3 million from $144.0 million year-over-year.

The company's Adjusted EBITDA declined to $1.2 million in Q4 2024 and $0.2 million for fiscal 2024, compared to $2.3 million and $2.9 million in the respective previous periods. Revenue backlog stood at $495 million as of December 31, 2024.

Notable developments include the $40 million Alameda CTC I-580 Express Lanes renewal contract announced in January 2025, with potential expansion worth $15 million, the acquisition of Red Fox for $4.9 million, and the sale of its 50% stake in a Chinese joint venture for $4.4 million.

Positive

• Fiscal 2024 revenue increased 6.5% to $153.3M from $144.0M in 2023
• Secured $40M Alameda CTC contract with $15M potential expansion
• Q4 cash from operations improved to $6.5M from $32K year-over-year
• Cash balance increased to $31.9M from $23.1M in Q4

Negative

• Q4 2024 revenue declined 9.5% to $38.9M from $43.0M in Q4 2023
• Adjusted EBITDA decreased to $0.2M in 2024 from $2.9M in 2023
• Net loss of $11.0M in fiscal 2024
• Gross profit margin declined to 18% in 2024 from 21% in 2023

TORONTO, March 17, 2025 /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 twelve months ended December 31, 2024. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated.

Q4 & Fiscal 2024 Highlights

• Revenue for Q4 2024 and fiscal 2024 was $38.9 million and $153.3 million, compared to $43.0 million and $144.0 million in the same periods last year.
• Adjusted EBITDA¹ for Q4 2024 and fiscal 2024 was $1.2 million and $0.2 million compared to $2.3 million and $2.9 million in the same periods last year.
• Revenue backlog³ was $495 million at December 31, 2024.
• Cash generated from (used in) continuing operations for Q4 2024 and fiscal 2024 was $6.5 million and ($4.4) million compared to $32 thousand and ($14.0) million in the same periods last year.
• Cash and cash equivalents increased to $31.9 million at December 31, 2024 from $23.1 million at September 30, 2024.
• Acquired Red Fox for net proceeds of $4.9 million.
• Sold its 50% interest in the Chinese joint venture, Xuzhou-PAT Control Technologies Limited for net cash proceeds of $4.4 million.
• Appointed Pasquale T. (Pat) Deon, Sr. to its Board of Directors, and on February 19, 2025, appointed Robin Saunders to the Board of Directors.
• On January 6, 2025, announced $40 million Renewal Contract to Upgrade Alameda CTC I-580 Express Lanes, with a potential four-year expansion valued at another $15 million.

"We made progress in 2024 on our turnaround efforts, delivering top-line growth and positive Adjusted EBITDA for the year, as well as positive cash from operations and growth in our cash balance in Q4," said Chuck Myers, CEO at Quarterhill. "For the past year, our focus has been to transform the business by integrating our strong operating assets, implementing leadership changes, developing our strategic plan, advancing our technology roadmap, expanding our sales pipeline and renegotiating certain tolling contracts. While there is still work to do, we made important progress on each of these fronts in 2024, which positions us well for revenue growth and margin expansion in 2025."

"Our vision is to become the number one or two player in the markets we operate in. We aim to achieve growth while generating reliable cash flows to build a healthy balance sheet capable of supporting both organic and acquisition-driven expansion. While we still have work to do in our turnaround, with a solid financial foundation, improved operational efficiency, and enhanced technological capabilities, we are confident in our strategy and ability to execute on our growth plans."

Q4 & Fiscal 2024 Financial Review
Quarterhill's Management's Discussion and Analysis for the three and twelve months ended December 31, 2024 and 2024 Annual Consolidated Financial Statements are available at the Company's website and at its profile at SEDAR+.

Financial statements for the three and twelve months ended December 31, 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 twelve months ended December 31, 2024, were $38.9 million and $153.3 million, compared to $43.0 million and $144.0 million in the three and twelve months ended December 31, 2023. The decrease in revenue for Q4 2024 was due primarily to the timing of revenues received from certain contracts and the disposition of non-core Latin American operations in December 2023. The increase in revenues for fiscal 2024 was primarily due to continued strong performance from the enforcement operations as well as increased contribution from tolling operations.

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 and currency volatility. Gross profit for the three and twelve months ended December 31, 2024, was $7.8 million and $27.8 million, or 20% and 18%, as compared to $8.5 million and $30.1 million, or 20% and 21%, in the three and twelve months ended December 31, 2023, respectively. The decrease in fiscal 2024 compared to fiscal 2023 was primarily due to reserves taken in Q3 2024 related to cost overruns on two tolling projects which was partially offset by continued strong margin performance from the enforcement operations.

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 twelve months ended December 31, 2024, were $11.2 million and $43.7 million, compared to $15.8 million and $47.9 million in the three and twelve months ended December 31, 2023, respectively. The decreases are primarily due to a reduction in other charges and lower R&D, which was offset in part by an increase in SG&A.

Adjusted EBITDA¹ for the three and twelve months ended December 31, 2024, was $1.2 million and $0.2 million, compared to $2.3 million and $2.9 million for the three and twelve months ended December 31, 2023, respectively. The decrease in Adjusted EBITDA for the three and twelve months ended December 31, 2024, compared to the prior year periods, was due to the factors impacting revenue, gross margin and expenses, as previously described.

Net income (loss) from continuing operations for the three and twelve months ended December 31, 2024, was $0.3 million and ($11.0) million, or $0.00 and ($0.10) per diluted share, compared to a net loss from continuing operations of ($11.5) million and ($32.4) million, or ($0.10) and ($0.28) per diluted share, for the three and twelve months ended December 31, 2023.

Cash generated from (used in) continuing operations for the three and twelve months ended December 31, 2024, was $6.5 million and ($4.4) million, compared to $32 thousand and ($14.0) million for the three and twelve months ended December 31, 2023.

Cash and cash equivalents were $31.9 million at December 31, 2024, compared to $23.1 million at September 30, 2024 and $42.7 million at December 31, 2023. 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. Adjusted Working Capital⁴ was $66.2 million at December 31, 2024, compared to $78.9 million at December 31, 2023.

Conference Call and Webcast

Quarterhill will host a conference call to discuss its financial results on Monday, March 17, 2025, at 10:00 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/jGx29Y2K0gl
• Webcast replay will be available at: https://app.webinar.net/jGx29Y2K0gl

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free)
• To access the call from other locations, dial 1.416.945.7677 (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/42rBzm7 

Telephone Replay
Telephone replay will be available from March 17, 2025, until March 24, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.646.517.4150.

Conference ID: 09879 and Replay Passcode: 09879#

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 income (loss) 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 income (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 income (loss).

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 – Non-IFRS Financial Measure

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. The most comparable IFRS measure is working capital.

Backlog - Non-IFRS Financial Measure

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 statements 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 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; and the Company's business plan and strategy.

‎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 acquisitions; 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, 2024 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, 2025. 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.‎

Consolidated Statements of Net Income (Loss) and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

	Three months ended December 31,		Year ended December 31,
	2024	2023	2024	2023
		(restated)		(restated)
Revenues	$38,876	$42,961	$153,305	$143,987
Direct cost of revenues	31,099	34,496	125,528	113,882
Gross profit	7,777	8,465	27,777	30,105
Operating expenses
Selling, general and administrative expenses	6,913	6,737	28,486	25,954
Research and development expenses	306	722	1,377	3,163
Depreciation of right-of-use assets	369	375	1,450	1,518
Depreciation of property, plant and equipment	394	389	1,538	1,604
Amortization of intangible assets	2,307	2,375	8,473	8,587
Other charges	923	5,180	2,391	7,089
	11,212	15,778	43,715	47,915
Results from operations	(3,435)	(7,313)	(15,938)	(17,810)
Finance income	(127)	(597)	(535)	(1,019)
Finance expense	1,468	1,711	6,470	6,714
Foreign exchange (gain) loss	(3,310)	1,670	(3,962)	1,264
Other income	(2,254)	(90)	(6,262)	(717)
Change in fair value of derivative liability	(248)	1,291	(1,674)	891
Income (loss) before taxes	1,036	(11,298)	(9,975)	(24,943)
Current income tax expense (recovery)	50	291	440	(2,254)
Deferred income tax expense (recovery)	714	(115)	607	9,718
Income tax expense	764	176	1,047	7,464
Net income (loss) from continuing operations	272	(11,474)	(11,022)	(32,407)
Net income (loss) from discontinued operations	-	-	-	(13,789)
Net income (loss)	272	(11,474)	(11,022)	(46,196)
Other comprehensive loss that may be reclassified subsequently to net income (loss):
Foreign currency translation adjustment	(3,546)	1,244	(3,504)	(276)
Comprehensive loss	($3,274)	($10,230)	($14,526)	($46,472)
Income (loss) per share - Basic
From continuing operations	$0.00	($0.10)	($0.10)	($0.28)
From discontinued operations	-	-	-	(0.12)
Income (loss) per share - Basic	$0.00	($0.10)	($0.10)	($0.40)
Income (loss) per share - Diluted
From continuing operations	$0.00	($0.10)	($0.10)	($0.28)
From discontinued operations	-	-	-	(0.12)
Income (loss) per share - Diluted	$0.00	($0.10)	($0.10)	($0.40)

Consolidated Statements of Financial Position
(in thousands and in United States dollars)

As at	December 31, 2024	December 31, 2023	January 1, 2023
		(restated)	(restated)
Current assets
Cash and cash equivalents	$31,893	$42,733	$48,905
Short-term investments	-	-	1,142
Restricted short-term investments	-	-	4,812
Accounts receivable, net	20,716	27,291	17,155
Unbilled revenue	34,461	34,247	30,529
Income taxes receivable	231	-	251
Inventories (net of obsolescence)	10,143	10,760	10,076
Prepaid expenses and deposits	4,588	4,795	5,050
	102,032	119,826	117,920
Non-current assets
Accounts and other long-term receivables	4,781	4,364	397
Long-term prepaid expenses and deposits	-	-	1,257
Right-of-use assets, net	5,035	5,288	7,600
Property, plant and equipment, net	3,961	4,136	5,104
Intangible assets, net	78,370	79,092	104,164
Investment in joint venture	-	5,054	5,712
Investment in other entity	3,919	2,898	-
Deferred compensation asset	1,050	952	991
Deferred income tax assets	-	-	18,903
Goodwill	30,960	29,019	41,556
	128,076	130,803	185,684
TOTAL ASSETS	$230,108	$250,629	$303,604
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$25,598	$30,330	$34,685
Income taxes payable	334	662	724
Current portion of lease liabilities	2,040	1,954	1,924
Current portion of deferred revenue	5,708	5,806	6,295
Current portion of long-term debt	2,125	2,125	21,588
Convertible debentures	36,825	38,196	35,655
Derivative liability	516	2,290	1,316
	73,146	81,363	102,187
Non-current liabilities
Deferred revenue	1,574	621	2,022
Long-term lease liabilities	4,803	5,727	7,116
Long-term debt	15,273	17,312	-
Deferred compensation liabilities	1,100	945	862
Deferred income tax liabilities	2,577	1,221	1,519
Other long-term liabilities	512	-	-
	25,839	25,826	11,519
TOTAL LIABILITIES	98,985	107,189	113,706
Shareholders' equity
Capital stock	314,630	313,738	401,248
Contributed surplus	127,446	126,129	37,545
Accumulated other comprehensive income	12,148	15,652	15,928
Deficit	(323,101)	(312,079)	(264,823)
	131,123	143,440	189,898
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$230,108	$250,629	$303,604

Consolidated Statements of Cash Flows
(in thousands and in United States dollars)

		Three months ended December 31,		Year ended December 31,
		2024	2023	2024	2023
			(restated)		(restated)
Operating activities:
Net income (loss) from continuing operations		$272	($11,474)	($11,022)	($32,407)
Add (deduct) non-cash items:
Stock-based compensation expense		592	719	2,528	1,246
Depreciation and amortization		3,070	3,139	11,461	11,709
Foreign exchange (gain) loss		(3,310)	1,670	(3,962)	1,264
Other income		(2,254)	(90)	(6,262)	(717)
Impairment losses		-	2,181	-	2,181
Gain on disposal of joint venture		(708)	-	(708)	-
Loss on disposal		-	2,750	-	2,750
Deferred and non-cash income tax expense (recovery)		714	(115)	607	9,718
Embedded derivatives		(12)	(82)	-	11
Change in fair value of derivative liability		(248)	1,291	(1,674)	891
Non-cash interest expense		517	223	2,202	2,117
Net change in non-cash working capital balances		7,909	(179)	2,408	(12,784)
Cash generated from (used in) continuing operations		6,542	33	(4,422)	(14,021)
Net operating cash flows attributable to discontinued operations		-	299	-	(4,386)
Net cash generated from (used in) operating activities		6,542	332	(4,422)	(18,407)
Financing activities:
Dividends paid		-	-	-	(2,127)
Payment of lease liabilities		(645)	(1,216)	(2,412)	(2,259)
Repayment of long-term debt		(531)	(531)	(2,125)	(2,313)
Common shares issued for cash on the exercise of options		-	-	-	80
Cash used in continuing financing activities		(1,176)	(1,747)	(4,537)	(6,619)
Net financing cash flows attributable to discontinued operations		-	-	-	(100)
Net cash used in financing activities		(1,176)	(1,747)	(4,537)	(6,719)
Investing activities:
Net proceeds from disposition of a subsidiary		-	300	-	32,688
Cash sold on disposition of a subsidiary		-	(189)	-	(8,189)
Net proceeds from disposition of a joint venture		4,386	-	4,386	-
Acquisition of business, Red Fox		-	-	(7,181)	-
Cash acquired on acquisition of business, Red Fox		-	-	2,296	-
Proceeds from sale of property, plant and equipment		88	-	98	42
Purchase of property, plant and equipment		(386)	(731)	(1,390)	(1,637)
Dividend received from joint venture		-	617	-	617
Dividend received from investment in other entity		-	-	3,849	-
Capitalized software costs		(1,038)	(235)	(4,045)	(3,338)
Cash generated from (used in) investing activities		3,050	(238)	(1,987)	20,183
Net investing cash flows attributable to discontinued operations		-	-	-	1,194
Net cash generated from (used in) investing activities		3,050	(238)	(1,987)	21,377
Foreign exchange on cash held in foreign currencies		351	(480)	106	(2,423)
Net increase (decrease) in cash and cash equivalents		8,767	(2,133)	(10,840)	(6,172)
Cash and cash equivalents, beginning of year		23,126	44,866	42,733	48,905
Cash and cash equivalents, end of year		$31,893	$42,733	$31,893	$42,733

Consolidated Statements of Shareholders' Equity
(in thousands and in United States dollars)

	Capital Stock	Contributed Surplus	Accumulated Other Comprehensive Income	Deficit	Total Shareholders' Equity
Balance, January 1, 2023 (restated)	$401,248	$37,545	$15,928	($264,823)	$189,898
Net loss	-	-	-	(46,196)	(46,196)
Other comprehensive loss	-	-	(276)	-	(276)
Stock-based compensation expense	-	1,246	-	-	1,246
Exercise of stock options	121	(64)	-	-	57
Common shares issued from restricted stock units	271	(490)	-	-	(219)
Common shares issued from deferred stock units	46	(56)	-	-	(10)
Reduction of stated capital	(87,948)	87,948	-	-	-
Dividends declared	-	-	-	(1,060)	(1,060)
Balance, December 31, 2023	$313,738	$126,129	$15,652	($312,079)	$143,440
Net loss	-	-	-	(11,022)	(11,022)
Other comprehensive loss	-	-	(3,504)	-	(3,504)
Stock-based compensation expense	-	2,528	-	-	2,528
Common shares issued from restricted stock units	837	(1,156)	-	-	(319)
Common shares issued from deferred stock units	55	(55)	-	-	-
Balance, December 31, 2024	$314,630	$127,446	$12,148	($323,101)	$131,123

Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in thousands and in United States dollars, except share and per share amounts)

 

	Three months ended December 31,
	2024		2023
	$	Per Share	$	Per Share
			(restated)
Net income (loss) from continuing operations	$272	$0.00	($11,474)	($0.10)
Adjusted for:
Income tax expense	764	0.01	176	0.00
Foreign exchange (gain) loss	(3,310)	(0.03)	1,670	0.02
Finance expense, net	1,341	0.01	1,114	0.01
Other charges	923	0.01	5,180	0.05
Depreciation and amortization	3,070	0.03	3,139	0.03
Stock based compensation expense	592	0.01	719	0.01
Dividend received from joint venture	-	-	617	0.01
Change in fair value of derivative liability	(248)	(0.00)	1,291	0.01
Other income	(2,254)	(0.02)	(90)	(0.00)
Adjusted EBITDA [1]	$1,150	$0.01	$2,342	$0.02
Weighted average number of Common Shares
Basic	115,710,553		115,025,344

 

	Year ended December 31,
	2024		2023
	$	Per Share	$	Per Share
			(restated)
Net loss from continuing operations	($11,022)	($0.10)	($32,407)	($0.28)
Adjusted for:
Income tax expense	1,047	$0.01	7,464	0.07
Foreign exchange (gain) loss	(3,962)	($0.03)	1,264	0.01
Finance expense, net	5,935	$0.05	5,695	0.05
Other charges	2,391	$0.02	7,089	0.06
Depreciation and amortization	11,461	$0.10	11,709	0.10
Stock based compensation expense	2,319	$0.02	1,246	0.01
Dividend received from joint venture	-	-	617	0.01
Change in fair value of derivative liability	(1,674)	($0.01)	891	(0.00)
Other income	(6,262)	($0.05)	(717)	(0.01)
Adjusted EBITDA [1]	$233	$0.01	$2,851	$0.02
Weighted average number of Common Shares
Basic	115,369,947		114,776,086

 

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 Measure section for further information. 4. Please refer to the Adjusted Working Capital - Non-IFRS Financial Measure section for further information.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q4-and-fiscal-2024-financial-results-302402648.html

SOURCE Quarterhill

FAQ

What was Quarterhill's (QTRHF) revenue performance in Q4 and fiscal 2024?

Q4 2024 revenue was $38.9M (down from $43.0M in Q4 2023), while fiscal 2024 revenue increased to $153.3M from $144.0M in 2023.

How much is the Alameda CTC contract worth for QTRHF?

The contract is worth $40M with potential four-year expansion valued at additional $15M.

What was QTRHF's revenue backlog as of December 31, 2024?

Revenue backlog stood at $495 million as of December 31, 2024.

How did QTRHF's cash position change in Q4 2024?

Cash increased to $31.9M at December 31, 2024 from $23.1M at September 30, 2024.