TORONTO, March 22,
2023 /PRNewswire/ - Quarterhill Inc.
("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF) a
leading provider of tolling and enforcement solutions in the
Intelligent Transportation System ("ITS") industry, as well as,
through its Wi-LAN Inc. ("WiLAN") subsidiary, a leader in
Intellectual Property
licensing, announces its financial results
for the three and twelve months ended
December 31, 2022. All financial
information in this press release is reported in Canadian dollars,
unless otherwise indicated.
Fiscal 2022 Highlights
- Consolidated revenue was $305.7
million for the year ended December
31, 2022
- Consolidated Adjusted EBITDA1 was $64.6 million for the year ended December 31, 2022
- Cash, cash equivalents, and short-term investments of
$67.9 million at December 31, 2022
- ITS businesses announced new contracts worth more than
$200.0 million in total contract
value
- Restructuring in the ITS segment in Q4 will result in annual
cost savings of approximately $4.0
million when fully implemented
- WiLAN completed licensing agreements with Apple, Micron and
Kyocera, among others
"Revenue growth in 2022 was driven by both the ITS and licensing
segments with Adjusted EBITDA growth driven by WiLAN, our licensing
business," said John Gillberry,
Interim CEO of Quarterhill. "Looking forward, we expect ITS
top-line and margin results to improve in 2023. On the cost side,
at the initiative of the board, we made some integration-related
cost cuts in Q4 that will save approximately $4.0 million annually when fully implemented.
Rolling-out an ITS shared service model to capture additional
efficiencies will be a primary focus in 2023 and the hiring of a
new CEO to execute this plan is one of our top priorities."
"Overall, the long-term prospects for the ITS business remain
strong. Our ongoing tolling projects that are in the implementation
phase will begin to transition to the operations phase in late 2023
and into 2024. These are long-term infrastructure projects with
stable and reliable customers. These projects have the potential
for significant expansion over their lifespan and we expect that
they will contribute to the health of the business for many years
to come."
Mr. Gillberry continued: "Building on its strong track record,
WiLAN had another great year in 2022, staying focused and
generating excellent results in a challenging year. In this regard,
I want to recognize and thank the whole WiLAN team for their
professionalism and perseverance in 2022, and in particular,
Andrew Parolin, who stepped up into
the CEO role after the sudden passing of Michael Vladescu in May of last year."
"The strategic review for WiLAN remains ongoing. We continue to
entertain and explore options for the business, 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
April 11, 2023, to shareholders of
record on March 31, 2023.
Q4 and 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 twelve months
ended December 31, 2021 include only
four months of results from ETC.
Quarterhill's Management's Discussion and Analysis and financial
statements for the three and twelve months ended December 31, 2022 ("Q4 2022" and "fiscal 2022")
are available at the Company's website and at its profile at
SEDAR.
Consolidated revenues for the three and twelve months ended
December 31, 2022 were $50.9 million and $305.7
million compared to $51.2
million and $125.7 million in
the comparative prior year periods, respectively. The increase in
consolidated revenue in fiscal 2022 was due primarily to the size
and timing of completion of licensing agreements earlier in the
year, as well as a full year of revenue contribution in fiscal 2022
from ITS acquisitions made in fiscal 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. ITS revenue in Q4 2022 declined compared to Q4
2021 due primarily to the timing for recognition of revenue
associated with certain tolling projects in Q4 2022 and to
contracts whose term expired at the end of 2021 and therefore did
not contribute to revenue in fiscal 2022.
Gross margin percent2 for the three and twelve months
ended December 31, 2022, was
$10.7 million, or 21% and
$117.5 million, or 38%, compared to
$12.1 million, or 24%, and
$37.4 million, or 30%, in the
comparative prior year periods, respectively. Gross margin in the
ITS segment was 25% in Q4 2022 and 24% in fiscal 2022 compared to
28% and 34% for the comparative prior year periods, respectively.
ITS gross margin for fiscal 2022 reflects the addition of the ETC
business and the high proportion of revenue generated from tolling
projects that are in the implementation phase as projects at this
stage of development tend to have lower gross margin. ITS gross
margins 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. The decrease in ITS gross margin
in Q4 2022 also reflects the record number of projects currently in
the implementation phase. Gross margin is expected to increase as
these tolling projects transition to the operations phase in 2023
and 2024.
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. Licensing
gross margins may also be impacted by litigation cost accruals
related to expected future expenses for ongoing litigations, which
was the case in Q4 2022. Licensing gross margin in fiscal 2022 was
54% compared to 15% in fiscal 2021 due primarily to the significant
licensing activity that occurred earlier in 2022.
Operating expenses include SG&A, research and development
costs ("R&D"), depreciation and amortization and other charges.
Total operating expenses for the three and twelve months ended
December 31, 2022, were $26.0 million and $106.6
million, compared to $21.4
million and $65.2 million in
the comparative prior year periods, respectively. The increase in
operating expenses in Q4 2022 was driven primarily by a one-time
$4.0 million restructuring expense
related to the integration of Quarterhill's ITS businesses. These
integration efforts are expected to save Quarterhill approximately
$4.0 million per year beginning in
fiscal 2023. The increase in operating expenses for fiscal 2022 was
primarily driven by the acquisitions of SensorLine, VDS and ETC
during fiscal 2021 and the addition of their respective cost
bases.
Consolidated Adjusted EBITDA1 was $(2.3) million and $64.6
million for the three and twelve months ended December 31, 2022, compared to $878 thousand and $5.0
million in the comparative prior year periods. The decrease
in Adjusted EBITDA for Q4 2022, compared to Q4 2021 is due to the
changes in revenue, direct costs of revenue and operating expenses
as previously explained. The increase in Adjusted EBITDA for fiscal
2022 was primarily driven by significant licensing activity that
occurred earlier in the year.
Net income (loss) for the three and twelve months ended
December 31, 2022, was $(20.1) million, or $(0.18) per diluted share, and $2.8 million, or $0.02 per diluted share, compared to $(9.5) million, or $(0.08) per diluted share, and $(22.2) million, or $(0.19) per diluted share, in the comparative
prior year periods.
Cash generated from (used in) operations for the three and
twelve months ended December 31,
2022, was $(1.7) million and
$39.6 million, compared to
$2.0 million and $(13.3) million in the comparative prior year
periods.
Among the uses of cash in fiscal 2022 were $36.1 million in debt repayments, a $14.6 million payment to settle litigation with
the former owners of VIZIYA and $5.7
million in dividends paid to shareholders. Cash and cash
equivalents and short-term investments were $67.9 million at December
31, 2022, compared to $72.6
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/EoQa9rN92eK
- Webcast replay will be available for 365 days at:
https://app.webinar.net/EoQa9rN92eK
Traditional Dial-in Information
- To access the call from Canada
and U.S., dial 1.888.664.6383 (Toll Free)
- To access the call from other locations, dial 1.416.764.8650
(International)
Rapidconnect
To instantly join the conference call by
phone, please use the following URL to easily register and be
connected into the conference call automatically:
https://bit.ly/3GLDzZO
Telephone Replay
Telephone replay will be available
from 1:00 p.m. ET on March 22, 2023, until 11:59 p.m. ET on March 29,
2023, at: 1.888.390.0541 (Toll Free North America) or
1.416.764.8677.
Conference ID: 98071629 and Replay Passcode:
071629#
Non-IFRS Financial Measures and Non-IFRS
Ratios
Quarterhill uses both IFRS and certain non-IFRS
financial measures to assess performance. Non-IFRS financial
measures are financial measures disclosed by a company that (a)
depict historical or expected future financial performance,
financial position or cash flow of a company, (b) with respect to
their composition, exclude amounts that are included in, or include
amounts that are excluded from the composition of the most directly
comparable financial measure disclosed in the primary financial
statements of the company, (c) are not disclosed in the financial
statements of the company and (d) are not a ratio, fraction,
percentage or similar representation. Non-IFRS ratios are financial
measures disclosed by a company that are in the form of a ratio,
fraction, percentage or similar representation that has a non-IFRS
financial measure as one or more of its components, and that are
not disclosed in the financial statements of the company.
These non-IFRS financial measures and non-IFRS ratios are not
standardized financial measures under IFRS, and, therefore, are
unlikely to be comparable to similar financial measures presented
by other companies. Management believes these non-IFRS financial
measures and non-IFRS ratios provide transparent and useful
supplemental information to help investors evaluate our financial
performance, financial condition, and liquidity using the same
measures as management. These non-IFRS financial measures and
non-IFRS ratios should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with IFRS.
Adjusted EBITDA - Non-IFRS Financial Measures
We use the non-IFRS financial measure "Adjusted EBITDA" to mean
net (loss) income adjusted for (i) income taxes, (ii) finance
expense or income; (iii) amortization and impairment of
intangibles; (iv) other charges and other on-time items; (v)
depreciation of right-of-use assets and property, plant and
equipment; (vi) stock- based compensation; (vii) foreign exchange
(gain) loss; and (viii) other income which includes equity in
earnings from joint ventures, and (ix) dividends received from
joint ventures. Adjusted EBITDA is used by our management to assess
our normalized cash generated on a consolidated basis and in our
operating segments. Adjusted EBITDA is also a performance measure
that may be used by investors to analyze the cash generated by
Quarterhill and our operating segments. Adjusted EBITDA should not
be interpreted as an alternative to net loss and cash flows from
operations as determined in accordance with IFRS or as measure of
liquidity. The most directly comparable IFRS financial measure is
Net (loss) income.
Adjusted EBITDA per share – Non-IFRS ratio
Adjusted EBITDA per share is calculated as Adjusted EBITDA
divided by the basic weighted average of common shares. Adjusted
EBITDA per share is used by our management and investors to analyze
cash generated by Quarterhill on a per share basis. The most
comparable IFRS measure is earnings per share.
Backlog - Non-IFRS Financial Measures
We use the non-IFRS measure "backlog" to mean the total value of
work that has not yet been completed but that in management's
experience of similar situations has: (a) a high certainty of being
performed pursuant to existing contracts or work orders specifying
job scope, value and timing; (b) an expectation of expansion of
existing contracts due to expected extensions; and/or (c) been
awarded to one or more of our ITS operating subsidiaries as
evidenced by a binding contract or where the finalization of a
binding contract is reasonably assured. Activities under such
contracts may cover a period of up to 15 years. We do not include
in "backlog", the value of any expected but unsigned change orders
that management considers may apply to such contracts.
Supplementary Financial Measures
Supplementary
financial measures are financial measures disclosed by a company
that (a) are, or are intended to be, disclosed on a periodic basis
to depict the historical or expected future financial performance,
financial position or cash flow of a company (b) are not disclosed
in the financial statement of the company, (c) are not non-IFRS
financial measures, and (d) are not non-IFRS ratios.
Key supplementary measures disclosed are as follows:
Gross margin %
Calculated as gross profit as a
percentage of revenue.
About Quarterhill
Quarterhill is a leading
provider of tolling and enforcement solutions in the Intelligent
Transportation System (ITS) industry, 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 22,
2023 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.
|
|
|
|
|
Consolidated Statements of (Loss) Income and Comprehensive Income
(Loss)
(in thousands and in Canadian dollars, except share
and per share amounts)
|
|
|
|
|
|
|
|
|
Consolidated
Statements of (Loss) Income
|
|
|
|
|
|
Three months ended
December 31,
|
Year ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Revenues
|
|
|
|
|
Licensing
|
$10,731
|
$4,708
|
$146,356
|
$25,722
|
Intelligent
Transportation Systems
|
40,142
|
46,453
|
159,334
|
99,973
|
|
50,873
|
51,161
|
305,690
|
125,695
|
Direct cost of
revenues
|
|
|
|
|
Licensing
|
10,160
|
5,768
|
66,629
|
21,809
|
Intelligent
Transportation Systems
|
29,976
|
33,318
|
121,525
|
66,451
|
|
40,136
|
39,086
|
188,154
|
88,260
|
Gross profit
|
10,737
|
12,075
|
117,536
|
37,435
|
Operating
expenses
|
|
|
|
|
Depreciation of
right-of-use assets
|
801
|
567
|
2,535
|
1,568
|
Depreciation of
property, plant and equipment
|
649
|
771
|
2,268
|
1,583
|
Amortization of
intangible assets
|
6,248
|
6,234
|
24,809
|
20,228
|
Selling, general and
administrative expenses
|
13,398
|
11,097
|
53,515
|
33,339
|
Research and
development expenses
|
586
|
671
|
2,539
|
2,372
|
Other
charges
|
4,285
|
2,085
|
20,893
|
6,133
|
|
25,967
|
21,425
|
106,559
|
65,223
|
Results from
operations
|
(15,230)
|
(9,350)
|
10,977
|
(27,788)
|
Finance
income
|
(412)
|
(54)
|
(1,083)
|
(164)
|
Finance
expense
|
2,639
|
1,804
|
10,024
|
2,328
|
Foreign exchange
gain
|
(883)
|
(561)
|
(2,689)
|
(1,216)
|
Other income
|
333
|
(160)
|
(9,094)
|
(2,007)
|
(Loss) income before
taxes
|
(16,907)
|
(10,379)
|
13,819
|
(26,729)
|
Current income tax
expense
|
(298)
|
262
|
1,171
|
1,306
|
Deferred income tax
(recovery) expense
|
3,480
|
(1,124)
|
9,882
|
(5,852)
|
Income tax (recovery)
expense
|
3,182
|
(862)
|
11,053
|
(4,546)
|
|
|
|
|
|
Net (loss)
income
|
(20,089)
|
(9,517)
|
2,766
|
(22,183)
|
|
|
|
|
|
Other comprehensive
loss that may be reclassified
subsequently to net (loss) income:
|
|
|
|
|
Foreign currency
translation adjustment
|
(1,451)
|
(1,030)
|
16,313
|
(3,437)
|
Comprehensive (loss)
income
|
($21,540)
|
($10,547)
|
$19,079
|
($25,620)
|
|
|
|
|
|
(Loss) income per share
- Basic
|
($0.18)
|
($0.08)
|
$0.02
|
($0.19)
|
|
|
|
|
|
(Loss) income per share
- Diluted
|
($0.18)
|
($0.08)
|
$0.02
|
($0.19)
|
Quarterhill Inc.
|
|
|
Consolidated Statements
of Financial Position (in thousands and in Canadian
dollars)
|
|
As at
|
December 31,
2022
|
December 31,
2021
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$66,357
|
$70,746
|
Short-term
investments
|
1,550
|
1,851
|
Restricted short-term
investments
|
6,529
|
3,095
|
Accounts receivable,
net
|
23,277
|
30,176
|
Unbilled
revenue
|
41,423
|
35,926
|
Income taxes
receivable
|
340
|
385
|
Inventories (net of
obsolescence)
|
13,671
|
13,731
|
Prepaid expenses and
deposits
|
6,852
|
5,192
|
|
159,999
|
161,102
|
Non-current
assets
|
|
|
Accounts and other
long-term receivables
|
539
|
1,450
|
Long-term prepaid
expenses and deposits
|
1,705
|
-
|
Right-of-use assets,
net
|
10,312
|
7,761
|
Property, plant and
equipment, net
|
6,926
|
5,694
|
Intangible assets,
net
|
141,335
|
151,355
|
Investment in joint
venture
|
7,751
|
7,458
|
Deferred compensation
asset
|
1,344
|
1,524
|
Deferred income tax
assets
|
25,648
|
37,786
|
Goodwill
|
56,385
|
53,065
|
|
251,945
|
266,093
|
TOTAL ASSETS
|
$411,944
|
$427,195
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
$47,063
|
$42,008
|
Income taxes
payable
|
982
|
700
|
Current portion of
lease liabilities
|
2,611
|
2,166
|
Current portion of
deferred revenue
|
8,542
|
7,989
|
Current portion of
long-term debt
|
29,292
|
3,181
|
|
88,490
|
56,044
|
Non-current
liabilities
|
|
|
Deferred
revenue
|
2,744
|
2,839
|
Long-term lease
liabilities
|
9,655
|
5,626
|
Long-term
debt
|
-
|
58,968
|
Convertible
debentures
|
48,379
|
45,959
|
Derivative
liability
|
1,786
|
9,441
|
Deferred compensation
liability
|
1,169
|
1,350
|
Deferred income tax
liabilities
|
2,061
|
5,852
|
|
65,794
|
130,035
|
TOTAL
LIABILITIES
|
154,284
|
186,079
|
Shareholders'
equity
|
|
|
Capital
stock
|
546,482
|
544,345
|
Contributed
surplus
|
50,958
|
49,937
|
Accumulated other
comprehensive income
|
16,457
|
144
|
Deficit
|
(356,237)
|
(353,310)
|
|
257,660
|
241,116
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$411,944
|
$427,195
|
Quarterhill Inc.
|
|
|
|
|
|
Consolidated Statements
of Cash Flows
(in thousands and in Canadian dollars)
|
|
|
|
|
|
|
Three months ended
December 31,
|
Year ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Cash generated from
(used in) operating activities
|
|
|
|
|
Net income
(loss)
|
($20,089)
|
($9,517)
|
$2,766
|
($22,183)
|
Add (deduct) non-cash
items:
|
|
|
|
|
Stock-based
compensation expense
|
335
|
571
|
1,875
|
1,955
|
Depreciation of
right-of-use assets
|
801
|
567
|
2,535
|
1,568
|
Depreciation and
amortization
|
6,897
|
7,005
|
27,077
|
21,811
|
Foreign exchange
gain
|
(883)
|
(561)
|
(2,689)
|
(1,216)
|
Other income, net of
change in derivative liability
fair value
|
564
|
(150)
|
(1,540)
|
(1,924)
|
Loss (gain) on disposal
of assets
|
31
|
(77)
|
101
|
(77)
|
Deferred income tax
expense (recovery)
|
3,480
|
(1,124)
|
9,882
|
(5,852)
|
Embedded
derivatives
|
316
|
-
|
657
|
54
|
Change in fair value of
derivative liability
|
(332)
|
(92)
|
(7,655)
|
(92)
|
Non-cash interest
expense
|
2,412
|
-
|
2,412
|
-
|
Net change in non-cash
working capital balances
|
4,809
|
5,389
|
4,192
|
(7,384)
|
Cash generated from
(used in) operating activities
|
(1,659)
|
2,011
|
39,613
|
(13,340)
|
Financing
activities:
|
|
|
|
|
Dividends
paid
|
(1,433)
|
(1,374)
|
(5,693)
|
(5,648)
|
Advances from revolving
credit facilities
|
-
|
-
|
-
|
12,727
|
Repayment of revolving
credit facilities
|
-
|
(12,727)
|
-
|
(12,727)
|
Net proceeds from
long-term debt
|
-
|
-
|
-
|
62,926
|
Proceeds from
convertible debentures
|
-
|
55,024
|
-
|
55,024
|
Payment of lease
liabilities
|
(369)
|
(574)
|
(2,216)
|
(1,659)
|
Repayment of long-term
debt
|
(848)
|
(776)
|
(36,128)
|
(776)
|
Repurchase of shares
for cancellation
|
-
|
-
|
-
|
(2,065)
|
Common shares issued
for cash on the exercise
of options
|
-
|
181
|
1,149
|
461
|
Cash (used in)
generated from financing activities
|
(2,650)
|
39,754
|
(42,888)
|
108,263
|
Investing
activities:
|
|
|
|
|
Proceeds from
restricted short-term investments
|
1,587
|
-
|
3,294
|
-
|
Proceeds from
short-term investments
|
-
|
1,000
|
301
|
4,000
|
Purchase of restricted
short-term investments
|
(1,505)
|
-
|
(6,728)
|
(3,025)
|
Proceeds from sale of
property, plant and
equipment
|
23
|
117
|
234
|
117
|
Purchase of property,
plant and equipment
|
(456)
|
(730)
|
(2,943)
|
(1,149)
|
Acquisition of
business, VDS
|
-
|
-
|
-
|
(2,780)
|
Acquisition of
business, ETC
|
-
|
301
|
-
|
(151,168)
|
Dividend received from
joint venture
|
572
|
-
|
1,290
|
1,348
|
Purchase of intangible
assets
|
(2,443)
|
(5,182)
|
(5,746)
|
(5,434)
|
Cash used in investing
activities
|
(2,222)
|
(4,494)
|
(10,298)
|
(158,091)
|
Foreign exchange on
cash held in foreign
currencies
|
(1,313)
|
(142)
|
9,184
|
(1,786)
|
Net decrease in cash
and cash equivalents
|
(7,844)
|
37,129
|
(4,389)
|
(64,954)
|
Cash and cash
equivalents, beginning of
|
74,201
|
33,617
|
70,746
|
135,700
|
Cash and cash
equivalents, end of
|
$66,357
|
$70,746
|
$66,357
|
$70,746
|
Quarterhill
Inc.
|
|
|
|
|
|
|
Consolidated Statements
of Shareholders' Equity
(in thousands and in Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
Capital
Stock
|
Contributed
Surplus
|
Accumulated
Other
Comprehensive Income
|
Deficit
|
Total
Shareholders'
Equity
|
Balance, January 1,
2021
|
|
$547,537
|
$46,250
|
$3,581
|
($325,438)
|
$271,930
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
-
|
-
|
(22,183)
|
(22,183)
|
Repurchase of shares
for cancellation
|
|
(4,027)
|
1,962
|
-
|
-
|
(2,065)
|
Other comprehensive
loss
|
|
-
|
-
|
(3,437)
|
-
|
(3,437)
|
Stock-based
compensation expense
|
|
-
|
1,955
|
-
|
-
|
1,955
|
Exercise of stock
options
|
|
667
|
(206)
|
-
|
-
|
461
|
Common shares issued
from restricted stock units
|
18
|
156
|
(12)
|
-
|
-
|
144
|
Common shares issued
from performance stock units
|
|
12
|
(12)
|
-
|
-
|
-
|
Dividends
declared
|
18
|
-
|
-
|
-
|
(5,689)
|
(5,689)
|
Balance,
December 31, 2021
|
|
$544,345
|
$49,937
|
$144
|
($353,310)
|
$241,116
|
|
|
|
|
|
|
|
Balance, January 1,
2022
|
|
$544,345
|
$49,937
|
$144
|
($353,310)
|
$241,116
|
|
|
|
|
|
|
|
Net income
|
|
-
|
-
|
-
|
2,766
|
2,766
|
Other comprehensive
income
|
|
-
|
-
|
16,313
|
-
|
16,313
|
Stock-based
compensation expense
|
|
-
|
1,875
|
-
|
-
|
1,875
|
Exercise of stock
options
|
|
1,778
|
(629)
|
-
|
-
|
1,149
|
Common shares issued
from restricted
stock units
|
18
|
313
|
(179)
|
-
|
-
|
134
|
Common shares issued
from
performance stock units
|
|
46
|
(46)
|
-
|
-
|
-
|
Dividends
declared
|
18
|
-
|
-
|
-
|
(5,693)
|
(5,693)
|
Balance,
December 31, 2022
|
|
$546,482
|
$50,958
|
$16,457
|
($356,237)
|
$257,660
|
Quarterhill Inc.
|
|
Reconciliation of Net
(loss) income to Adjusted EBITDA
(in thousands and in Canadian dollars, except share and per share
amounts)
|
|
Three months ended
December 31,
|
|
2022
|
2021
|
|
$
|
Per
Share
|
$
|
Per Share
|
Net (loss) income from
continuing operations
|
($20,089)
|
($0.18)
|
($9,517)
|
($0.08)
|
Adjusted
for:
|
|
|
|
|
Income tax (recovery)
expense
|
3,182
|
0.03
|
(862)
|
(0.01)
|
Foreign exchange (gain)
loss
|
(883)
|
(0.01)
|
(561)
|
-
|
Finance expense,
net
|
2,227
|
0.02
|
1,750
|
0.02
|
Other
charges
|
4,285
|
0.04
|
2,085
|
0.02
|
Depreciation and
amortization
|
7,698
|
0.07
|
7,572
|
0.05
|
Stock based
compensation expense
|
335
|
-
|
571
|
0.01
|
Dividends received from
joint venture
|
572
|
0.01
|
-
|
-
|
Other income
|
333
|
-
|
(160)
|
-
|
Adjusted
EBITDA[1]
|
($2,340)
|
($0.02)
|
$878
|
$0.01
|
|
________________
|
________________
|
________________
|
________________
|
Weighted average number
of Common Shares
|
|
|
|
|
Basic
|
114,639,700
|
|
113,834,597
|
|
Quarterhill Inc.
|
|
Reconciliations of Net
income to Adjusted EBITDA
(in thousands of Canadian dollars, except share and per share
amounts)
|
|
|
Year ended
December 31,
|
|
2022
|
2021
|
|
$
|
Per
Share
|
$
|
Per Share
|
Net (loss) income from
continuing operations
|
$2,766
|
$0.02
|
($22,183)
|
($0.19)
|
Adjusted
for:
|
|
|
|
|
Income tax (recovery)
expense
|
11,053
|
0.10
|
(4,546)
|
(0.04)
|
Foreign exchange (gain)
loss
|
(2,689)
|
(0.02)
|
(1,216)
|
(0.01)
|
Finance expense,
net
|
8,941
|
0.08
|
2,164
|
0.02
|
Other
charges
|
20,893
|
0.18
|
6,133
|
0.05
|
Depreciation and
amortization
|
29,612
|
0.26
|
23,379
|
0.20
|
Stock based
compensation expense
|
1,875
|
0.02
|
1,955
|
0.02
|
Dividends received from
joint venture
|
1,290
|
0.01
|
1,348
|
0.01
|
Other income
|
(9,094)
|
(0.08)
|
(2,007)
|
(0.02)
|
Adjusted
EBITDA[1]
|
$64,647
|
$0.57
|
$5,027
|
$0.04
|
|
|
|
|
|
Weighted average number
of Common Shares
|
|
|
|
|
Basic
|
114,389,608
|
|
114,013,610
|
|
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-q4-and-fiscal-2022-financial-results-301778306.html
SOURCE Quarterhill Inc.