Revenue of $42.4
million, Adjusted EBITDA of $12.9
million
Ending cash balance of $88.0 million
KITCHENER, ON, Aug. 8, 2019 /PRNewswire/ - Quarterhill Inc.
("Quarterhill" or the "Company") (TSX: QTRH) (NASDAQ: QTRH),
announces its financial results for the three- and six-month
periods ended June 30, 2019. All
financial information in this press release is reported in U.S.
dollars, unless otherwise indicated.
Second Quarter 2019 Highlights
- Revenues of $42.4 million,
compared to $20.4 million in Q2 last
year
- Recurring revenues of $5.7
million, compared to $6.8
million in Q2 last year
- Adjusted EBITDA* of $12.9
million, compared to ($4.0)
million in Q2 last year
- Net loss of ($4.5) million, or
($0.04) per basic and diluted common
share, compared to net loss of ($7.9)
million, or ($0.07) per basic
and diluted common share, in Q2 last year
- Cash and cash equivalents were $88.0
million at June 30, 2019,
compared to $67.3 million at
December 31, 2018
- IRD achieved record quarterly revenue of $14.8 million
- WiLAN generated revenue of $24.7
million and Adjusted EBITDA $12.3
million
- Subsequent to quarter-end, VIZIYA signed significant software
license agreements with two new customers
"Q2 saw the positive momentum from the prior two quarters
continue with results driven by strong revenue at WiLAN and IRD, as
well as positive Adjusted EBITDA from all three portfolio
companies," said Doug Parker,
President and CEO, Quarterhill. "As we have said in the past,
revenue at WiLAN can be variable on a quarter-to-quarter basis and
its financial performance should be viewed over a longer time
frame. So far in 2019 we have seen the positive side of this
variability as WiLAN has posted significant year-over-year gains on
both a quarterly and year-to-date basis."
"We are well-capitalized to pursue our M&A-driven
diversification strategy as we ended Q2 with just under
$90.0 million on the balance sheet.
This is a significant increase from year-end and primarily reflects
the cash-generating capabilities of WiLAN and to a lesser extent
the benefits of our recent restructurings and cost management
efforts. While the top-end of our M&A funnel continues to
expand, and we are seeing interesting tuck-in opportunities for our
existing businesses, the M&A market is arguably at historic
valuation highs. In this environment we will continue to remain
patient capital allocators and will only buy assets that meet our
disciplined acquisition criteria."
"Subsequent to quarter-end, VIZIYA signed two significant
software license contracts in July. While revenue from the
contracts will be recognized in Q3, the combined size of these
deals was large enough to require us to adjust our contingency
related to the VIZIYA earn-out in our Q2 statements. As we have
spoken about previously, VIZIYA has multiple opportunities in its
pipeline with significant revenue potential but that face longer
sales cycles. While greater detail will be available with our Q3
reporting, these two transactions demonstrate the positive
financial impact that can be felt when one or two of those larger
opportunities are realized. Companies in traditional Enterprise
Asset Management sectors, such as Mining, Metals and Energy, have
faced a challenging business environment for several years, and we
believe these agreements are testament to the operational and
economical value that VIZIYA's solutions can deliver to its
customer base."
Approval of Eligible Dividend
The Board of Directors
has declared an eligible quarterly dividend of CDN $0.0125 per common share payable on October 4, 2019, to shareholders of record on
September 13, 2019.
Business Strategy and Segments
Quarterhill's
acquisition strategy focuses primarily on financial metrics while
remaining cognizant of broader technology and market trends as it
builds a portfolio of businesses that are characterized as having
recurring revenue, free cash flow and profitable growth potential.
Driven by the execution of a proven and disciplined acquisition
strategy, the Company seeks to enable shareholders to benefit from
consolidation and convergence trends in today's technology
industry.
Q2 and Year-to-Date 2019 Consolidated Financial
Review
Consolidated revenues for the three months ended
June 30, 2019 ("Q2 2019") were
$42.4 million, compared to
$20.4 million in Q2 2018,
representing growth of 108%. Consolidated revenues for the six
months ended June 30, 2019
("Year-to-Date") were $82.2 million,
compared to $32.4 million in the same
period last year, representing growth of 154%. For both Q2 2019 and
the Year-to-Date period, the increase in revenue is due to growth
at WiLAN and IRD, offset in part, by lower revenue at VIZIYA.
Gross margin for Q2 2019 was $20.5
million, or 48%, compared to $3.9
million, or 19%, in Q2 2018. Gross margin for the six months
ended June 30, 2019 was $40.6 million, or 49%, compared to $4.1 million, or 13%, in the same period last
year. For both Q2 2019 and the Year-to-Date period, positive and
increased gross margin is due to strong financial results from
WiLAN and IRD, offset in part, by financial results at VIZIYA.
Operating expenses include selling, general and administrative
costs, research and development costs, depreciation and
amortization of intangible assets and special charges. Q2 2019
operating expenses included a special charge of $10.6 million related to the earn-out payment in
the VIZIYA acquisition. As a result of the significant licenses
signed in July, VIZIYA is now expected to achieve its performance
targets and earn more than 100% of the eligible earn-out payment.
The Company has therefore revalued the contingent liability
associated with the earn-out from $0.9
million to $11.6 million,
leading to the $10.6 million special
charge in Q2 2019. This liability will be retired no later than
October 31, 2019, subject to the
terms of the VIZIYA acquisition agreement, through the issuance of
3,647,417 Common Shares and cash consideration in the amount of
approximately $7.1 million.
Excluding the $10.6 million
special charge, operating expenses for Q2 2019 were $14.0 million, compared to $14.7 million in Q2 2018, and for the
Year-to-Date period were $28.7
million, compared to $29.9
million in the same period last year. Operating expenses
decreased year-over-year due to the restructurings at IRD and WiLAN
that took place in 2018, offset in part by a $0.4 million increase in R&D and a
$0.5 million special charge in Q2
2019 related to the non-cash write-off of leasehold improvements
resulting from the relocation of WiLAN to smaller, more cost
effective facilities.
Adjusted EBITDA for Q2 2019 was $12.9
million compared to ($4.0)
million in Q2 2018. Adjusted EBITDA for the six months ended
June 30, 2019 was $25.3 million compared to ($11.3) million in the same period last year.
Adjusted EBITDA for the three- and six-month periods ended
June 30, 2019 reflects higher revenue
from WiLAN and IRD, and a positive Adjusted EBITDA contribution
from all three portfolio companies.
Net loss for Q2 2019 was ($4.5)
million, or ($0.04) per basic
and diluted Common Share, compared to net loss of ($7.9) million or ($0.07) per basic and diluted Common Share in Q2
2018. Net loss for the six months ended June
30, 2019 was ($4.4) million,
or ($0.04) per basic and diluted
Common Share, compared to a net loss of ($19.9) million, or ($0.17) per basic and diluted Common Share, in
the same period last year. Excluding the $10.6 million special charge related to the
earn-out at VIZIYA, Quarterhill would have generated net income of
$6.2 million, or $0.05 per basic and diluted share, and
$6.2 million, or $0.05 per basic and diluted share, in the Q2 2019
and Year-to-Date periods, respectively. Year-over-year, the
Company's bottom-line improved primarily due to higher revenue at
WiLAN and IRD combined with a lower cost base following the
restructurings at those two companies in 2018.
Cash generated from operations in Q2 2019 was $34.0 million, compared to cash used in
operations of ($2.4) million in Q2
2018. Cash generated from operations for the Year-to-Date period
was $21.6 million, compared to cash
used in operations of ($9.0) million
in the same period last year. Cash from operations in Q2 2019
benefited from the strong performance at WiLAN and IRD as well as
the collection of certain receivables tied to revenue generated in
Q1 2019.
Cash and cash equivalents and short-term investments amounted to
$88.0 million at June 30, 2019, compared to $67.3 million at December
31, 2018.
The table below highlights financial performance for the
Company's Licensing, Intelligent Systems and Enterprise Software
segments. For detailed results and discussion related to these
segments, please refer to the Management's Discussion and Analysis
document, which will be filed on SEDAR and at www.quarterhill.com
in the investor section.
|
For the three months
ended June 30, 2019
|
|
|
Licensing
|
|
|
Intelligent
Systems
|
|
|
Enterprise
Software
|
|
|
Corporate
|
|
|
Total
|
|
Revenues
|
$
|
24,743
|
|
|
$
|
14,786
|
|
|
$
|
2,827
|
|
|
$
|
-
|
|
|
$
|
42,356
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
11,987
|
|
|
|
9,488
|
|
|
|
356
|
|
|
|
-
|
|
|
|
21,831
|
|
|
|
12,756
|
|
|
|
5,298
|
|
|
|
2,471
|
|
|
|
-
|
|
|
|
20,525
|
|
Selling, general and
administrative expenses
|
|
465
|
|
|
|
2,584
|
|
|
|
1,444
|
|
|
|
2,157
|
|
|
|
6,650
|
|
Research and
development expenses
|
|
-
|
|
|
|
617
|
|
|
|
620
|
|
|
|
-
|
|
|
|
1,237
|
|
Depreciation of
property, plant and equipment
|
|
30
|
|
|
|
292
|
|
|
|
36
|
|
|
|
4
|
|
|
|
362
|
|
Amortization of
intangibles
|
|
3,516
|
|
|
|
940
|
|
|
|
757
|
|
|
|
-
|
|
|
|
5,213
|
|
Special
charges
|
|
532
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,648
|
|
|
|
11,180
|
|
Results from
operations
|
|
8,213
|
|
|
|
865
|
|
|
|
(386)
|
|
|
|
(12,809)
|
|
|
|
(4,117)
|
|
Finance
income
|
|
(39)
|
|
|
|
(4)
|
|
|
|
-
|
|
|
|
(248)
|
|
|
|
(291)
|
|
Finance
expense
|
|
-
|
|
|
|
233
|
|
|
|
1
|
|
|
|
1
|
|
|
|
235
|
|
Foreign exchange loss
(gain)
|
|
(176)
|
|
|
|
55
|
|
|
|
15
|
|
|
|
186
|
|
|
|
80
|
|
Other
income
|
|
(3)
|
|
|
|
(177)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(180)
|
|
Income (loss) before
taxes
|
|
8,431
|
|
|
|
758
|
|
|
|
(402)
|
|
|
|
(12,748)
|
|
|
|
(3,961)
|
|
Current income tax
expense (recovery)
|
|
40
|
|
|
|
(49)
|
|
|
|
1
|
|
|
|
-
|
|
|
|
(8)
|
|
Deferred income tax
expense (recovery)
|
|
1,900
|
|
|
|
(362)
|
|
|
|
(175)
|
|
|
|
(846)
|
|
|
|
517
|
|
Income tax expense
(recovery)
|
|
1,940
|
|
|
|
(411)
|
|
|
|
(174)
|
|
|
|
(846)
|
|
|
|
509
|
|
Net income
(loss)
|
$
|
6,491
|
|
|
$
|
1,169
|
|
|
$
|
(228)
|
|
|
$
|
(11,902)
|
|
|
$
|
(4,470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
12,302
|
|
|
|
2,124
|
|
|
|
422
|
|
|
|
(1,982)
|
|
|
|
12,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
11
|
|
|
|
27
|
|
|
|
15
|
|
|
|
175
|
|
|
|
228
|
|
|
For the six months
ended June 30, 2019
|
|
|
Licensing
|
|
|
Intelligent
Systems
|
|
|
Enterprise
Software
|
|
|
Corporate
|
|
|
Total
|
|
Revenues
|
$
|
52,868
|
|
|
$
|
24,124
|
|
|
$
|
5,202
|
|
|
$
|
-
|
|
|
$
|
82,194
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
24,776
|
|
|
|
16,185
|
|
|
|
663
|
|
|
|
-
|
|
|
|
41,624
|
|
|
|
28,092
|
|
|
|
7,939
|
|
|
|
4,539
|
|
|
|
-
|
|
|
|
40,570
|
|
Selling, general and
administrative expenses
|
|
1,025
|
|
|
|
5,090
|
|
|
|
3,018
|
|
|
|
4,104
|
|
|
|
13,237
|
|
Research and
development expenses
|
|
-
|
|
|
|
1,208
|
|
|
|
1,208
|
|
|
|
-
|
|
|
|
2,416
|
|
Depreciation of
property, plant and equipment
|
|
71
|
|
|
|
594
|
|
|
|
67
|
|
|
|
8
|
|
|
|
740
|
|
Amortization of
intangibles
|
|
7,044
|
|
|
|
1,886
|
|
|
|
1,514
|
|
|
|
-
|
|
|
|
10,444
|
|
Special
charges
|
|
1,829
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,648
|
|
|
|
12,477
|
|
Results from
operations
|
|
18,123
|
|
|
|
(839)
|
|
|
|
(1,268)
|
|
|
|
(14,760)
|
|
|
|
1,256
|
|
Finance
income
|
|
(57)
|
|
|
|
(6)
|
|
|
|
-
|
|
|
|
(430)
|
|
|
|
(493)
|
|
Finance
expense
|
|
-
|
|
|
|
276
|
|
|
|
2
|
|
|
|
1
|
|
|
|
279
|
|
Foreign exchange loss
(gain)
|
|
(368)
|
|
|
|
247
|
|
|
|
48
|
|
|
|
395
|
|
|
|
322
|
|
Other
income
|
|
(3)
|
|
|
|
(251)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(254)
|
|
Income (loss) before
taxes
|
|
18,551
|
|
|
|
(1,105)
|
|
|
|
(1,318)
|
|
|
|
(14,726)
|
|
|
|
1,402
|
|
Current income tax
expense
|
|
3,947
|
|
|
|
85
|
|
|
|
1
|
|
|
|
-
|
|
|
|
4,033
|
|
Deferred income tax
expense (recovery)
|
|
3,848
|
|
|
|
(957)
|
|
|
|
(503)
|
|
|
|
(578)
|
|
|
|
1,810
|
|
Income tax expense
(recovery)
|
|
7,795
|
|
|
|
(872)
|
|
|
|
(502)
|
|
|
|
(578)
|
|
|
|
5,843
|
|
Net income
(loss)
|
$
|
10,756
|
|
|
$
|
(233)
|
|
|
$
|
(816)
|
|
|
$
|
(14,148)
|
|
|
$
|
(4,441)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
27,057
|
|
|
|
1,698
|
|
|
|
342
|
|
|
|
(3,771)
|
|
|
|
25,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
(10)
|
|
|
|
57
|
|
|
|
29
|
|
|
|
333
|
|
|
|
409
|
|
|
For the three months
ended June 30, 2018
|
|
|
Licensing
|
|
|
Intelligent
Systems
|
|
|
Enterprise
Software
|
|
|
Corporate
|
|
|
Total
|
|
Revenues
|
$
|
3,976
|
|
|
$
|
12,659
|
|
|
$
|
3,762
|
|
|
$
|
-
|
|
|
$
|
20,397
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
8,015
|
|
|
|
8,083
|
|
|
|
441
|
|
|
|
-
|
|
|
|
16,539
|
|
|
|
(4,039)
|
|
|
|
4,576
|
|
|
|
3,321
|
|
|
|
-
|
|
|
|
3,858
|
|
Selling, general and
administrative expenses
|
|
607
|
|
|
|
2,713
|
|
|
|
1,733
|
|
|
|
1,983
|
|
|
|
7,036
|
|
Research and
development expenses
|
|
-
|
|
|
|
510
|
|
|
|
343
|
|
|
|
-
|
|
|
|
853
|
|
Depreciation of
property, plant and equipment
|
|
72
|
|
|
|
284
|
|
|
|
30
|
|
|
|
2
|
|
|
|
388
|
|
Amortization of
intangibles
|
|
4,714
|
|
|
|
971
|
|
|
|
757
|
|
|
|
-
|
|
|
|
6,442
|
|
Results from
operations
|
|
(9,432)
|
|
|
|
98
|
|
|
|
458
|
|
|
|
(1,985)
|
|
|
|
(10,861)
|
|
Finance
income
|
|
-
|
|
|
|
(6)
|
|
|
|
-
|
|
|
|
(185)
|
|
|
|
(191)
|
|
Finance
expense
|
|
1
|
|
|
|
36
|
|
|
|
3
|
|
|
|
-
|
|
|
|
40
|
|
Foreign exchange loss
(gain)
|
|
257
|
|
|
|
(124)
|
|
|
|
28
|
|
|
|
(196)
|
|
|
|
(35)
|
|
Other
income
|
|
-
|
|
|
|
(387)
|
|
|
|
(192)
|
|
|
|
-
|
|
|
|
(579)
|
|
Income (loss) before
taxes
|
|
(9,690)
|
|
|
|
579
|
|
|
|
619
|
|
|
|
(1,604)
|
|
|
|
(10,096)
|
|
Current income tax
expense (recovery)
|
|
121
|
|
|
|
190
|
|
|
|
(95)
|
|
|
|
1
|
|
|
|
217
|
|
Deferred income tax
expense (recovery)
|
|
(3,422)
|
|
|
|
(66)
|
|
|
|
(247)
|
|
|
|
1,287
|
|
|
|
(2,448)
|
|
Income tax expense
(recovery)
|
|
(3,301)
|
|
|
|
124
|
|
|
|
(342)
|
|
|
|
1,288
|
|
|
|
(2,231)
|
|
Net income
(loss)
|
$
|
(6,389)
|
|
|
$
|
455
|
|
|
$
|
961
|
|
|
$
|
(2,892)
|
|
|
$
|
(7,865)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(4,641)
|
|
|
|
1,486
|
|
|
|
1,276
|
|
|
|
(2,072)
|
|
|
|
(3,951)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
|
61
|
|
|
|
21
|
|
|
|
-
|
|
|
|
82
|
|
Stock-based
compensation
|
|
5
|
|
|
|
72
|
|
|
|
10
|
|
|
|
(89)
|
|
|
|
(2)
|
|
|
For the six months
ended June 30, 2018
|
|
|
Licensing
|
|
|
Intelligent
Systems
|
|
|
Enterprise
Software
|
|
|
Corporate
|
|
|
Total
|
|
Revenues
|
$
|
5,743
|
|
|
$
|
20,071
|
|
|
$
|
6,592
|
|
|
$
|
-
|
|
|
$
|
32,406
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
13,920
|
|
|
|
13,581
|
|
|
|
772
|
|
|
|
-
|
|
|
|
28,273
|
|
|
|
(8,177)
|
|
|
|
6,490
|
|
|
|
5,820
|
|
|
|
-
|
|
|
|
4,133
|
|
Selling, general and
administrative expenses
|
|
1,238
|
|
|
|
5,286
|
|
|
|
3,302
|
|
|
|
4,263
|
|
|
|
14,089
|
|
Research and
development expenses
|
|
-
|
|
|
|
1,059
|
|
|
|
733
|
|
|
|
-
|
|
|
|
1,792
|
|
Depreciation of
property, plant and equipment
|
|
147
|
|
|
|
574
|
|
|
|
59
|
|
|
|
3
|
|
|
|
783
|
|
Amortization of
intangibles
|
|
9,716
|
|
|
|
1,963
|
|
|
|
1,514
|
|
|
|
-
|
|
|
|
13,193
|
|
Results from
operations
|
|
(19,278)
|
|
|
|
(2,392)
|
|
|
|
212
|
|
|
|
(4,266)
|
|
|
|
(25,724)
|
|
Finance
income
|
|
-
|
|
|
|
(7)
|
|
|
|
-
|
|
|
|
(375)
|
|
|
|
(382)
|
|
Finance
expense
|
|
1
|
|
|
|
72
|
|
|
|
6
|
|
|
|
-
|
|
|
|
79
|
|
Foreign exchange loss
(gain)
|
|
557
|
|
|
|
(272)
|
|
|
|
19
|
|
|
|
(469)
|
|
|
|
(165)
|
|
Other
income
|
|
-
|
|
|
|
(637)
|
|
|
|
(269)
|
|
|
|
-
|
|
|
|
(906)
|
|
Income (loss) before
taxes
|
|
(19,836)
|
|
|
|
(1,548)
|
|
|
|
456
|
|
|
|
(3,422)
|
|
|
|
(24,350)
|
|
Current income tax
expense (recovery)
|
|
225
|
|
|
|
199
|
|
|
|
(529)
|
|
|
|
1
|
|
|
|
(104)
|
|
Deferred income tax
expense (recovery)
|
|
(4,825)
|
|
|
|
(634)
|
|
|
|
(485)
|
|
|
|
1,608
|
|
|
|
(4,336)
|
|
Income tax expense
(recovery)
|
|
(4,600)
|
|
|
|
(435)
|
|
|
|
(1,014)
|
|
|
|
1,609
|
|
|
|
(4,440)
|
|
Net income
(loss)
|
$
|
(15,236)
|
|
|
$
|
(1,113)
|
|
|
$
|
1,470
|
|
|
$
|
(5,031)
|
|
|
$
|
(19,910)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(9,404)
|
|
|
|
449
|
|
|
|
1,943
|
|
|
|
(4,276)
|
|
|
|
(11,288)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
|
158
|
|
|
|
148
|
|
|
|
-
|
|
|
|
306
|
|
Stock-based
compensation
|
|
11
|
|
|
|
146
|
|
|
|
10
|
|
|
|
(13)
|
|
|
|
154
|
|
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://event.on24.com/wcc/r/2049478/8C0FE2C7ACF78F8AABA72BDE413DEE14
Dial-in Information
- To access the call from Canada
and U.S., dial 1.888.231.8191 (Toll Free)
- To access the call from other locations,
dial 1.647.427.7450 (International)
Replay Information
Webcast replay will be available
for 90 days
at: https://event.on24.com/wcc/r/2049478/8C0FE2C7ACF78F8AABA72BDE413DEE14
Telephone replay will be available from 1:00 p.m. Eastern Time on August 8, 2019 until 11:59
p.m. Eastern Time on August 15,
2019 at: 1.855.859.2056 (Toll Free) or 1.416.849.0833
(International). The telephone replay requires the passcode
2799096.
Non-GAAP Disclosure*
Quarterhill follows U.S. GAAP in
preparing its interim and annual financial statements. We use the
term "Adjusted EBITDA" to mean net income (loss) from continuing
operations before: (i) income taxes; (ii) finance expense or
income; (iii) amortization and impairment of intangibles; (iv)
special charges and other one-time items; (v) depreciation of
property, plant and equipment; (vi) effects of deleted deferred
revenue; (vii) the effects of fair value step up in inventory
acquired; (viii) stock based compensation; (ix) foreign exchange
(gain) loss; and * equity in income and dividends from joint
ventures. Adjusted EBITDA is used by Quarterhill 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 IS NOT A
MEASURE OF FINANCIAL PERFORMANCE UNDER U.S. GAAP. IT DOES NOT HAVE
ANY STANDARDIZED MEANING PRESCRIBED BY U.S. GAAP AND IS THEREFORE
UNLIKELY TO BE COMPARABLE TO SIMILARLY TITLED MEASURES USED BY
OTHER COMPANIES. ADJUSTED EBITDA SHOULD NOT BE INTERPRETED AS AN
ALTERNATIVE TO NET INCOME AND CASH FLOWS FROM OPERATIONS AS
DETERMINED IN ACCORDANCE WITH U.S. GAAP OR AS A MEASURE OF
LIQUIDITY.
About Quarterhill
Quarterhill is focused on the
disciplined acquisition, management and growth of companies in
dedicated technology areas including, vertical market software and
solutions, intelligent industrial systems, and innovation and
licensing. Quarterhill's emphasis is on seeking out acquisition
opportunities at reasonable valuations that provide a foundation
for recurring revenues, predictable cash flows and margins,
profitable growth, intimate customer relationships and dedicated
management teams. Quarterhill is listed on the TSX and NASDAQ
under the symbol QTRH. For more information:
www.quarterhill.com.
Forward-looking Information
This news release contains
forward-looking statements and forward-looking information within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and other United States and
Canadian securities laws. Forward-looking statements and
forward-looking information 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. Many factors could cause Quarterhill's actual
performance or achievements to differ materially from those
expressed or implied by the forward-looking statements or
forward-looking information. Such factors include, without
limitation, the risks described in Quarterhill's February 28, 2019 annual information form for the
year ended December 31, 2018 (the
"AIF"). Copies of the AIF may be obtained at www.sedar.com and as
part of Quarterhill's Form 40-F for the year ended December 31, 2018 filed with the U.S. Securities
and Exchange Commission and available at www.sec.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 or forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
All trademarks and brands mentioned in this release are the
property of their respective owners.
Quarterhill
Inc.
|
|
Condensed
Consolidated Interim Statements of Operations
|
|
(Unaudited)
|
|
(in thousands of
United States dollars, except share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenues
|
$
|
42,356
|
|
|
$
|
20,397
|
|
|
$
|
82,194
|
|
|
$
|
32,406
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
21,831
|
|
|
|
16,539
|
|
|
|
41,624
|
|
|
|
28,273
|
|
|
|
20,525
|
|
|
|
3,858
|
|
|
|
40,570
|
|
|
|
4,133
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
6,650
|
|
|
|
7,036
|
|
|
|
13,237
|
|
|
|
14,089
|
|
Research and
development expenses
|
|
1,237
|
|
|
|
853
|
|
|
|
2,416
|
|
|
|
1,792
|
|
Depreciation of
property, plant and equipment
|
|
362
|
|
|
|
388
|
|
|
|
740
|
|
|
|
783
|
|
Amortization of
intangibles
|
|
5,213
|
|
|
|
6,442
|
|
|
|
10,444
|
|
|
|
13,193
|
|
Special
charges
|
|
11,180
|
|
|
|
-
|
|
|
|
12,477
|
|
|
|
-
|
|
|
|
24,642
|
|
|
|
14,719
|
|
|
|
39,314
|
|
|
|
29,857
|
|
Results from
operations
|
|
(4,117)
|
|
|
|
(10,861)
|
|
|
|
1,256
|
|
|
|
(25,724)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
(291)
|
|
|
|
(191)
|
|
|
|
(493)
|
|
|
|
(382)
|
|
Finance
expense
|
|
235
|
|
|
|
40
|
|
|
|
279
|
|
|
|
79
|
|
Foreign exchange loss
(gain)
|
|
80
|
|
|
|
(35)
|
|
|
|
322
|
|
|
|
(165)
|
|
Other
income
|
|
(180)
|
|
|
|
(579)
|
|
|
|
(254)
|
|
|
|
(906)
|
|
Income (loss) before
taxes
|
|
(3,961)
|
|
|
|
(10,096)
|
|
|
|
1,402
|
|
|
|
(24,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax
expense (recovery)
|
|
(8)
|
|
|
|
217
|
|
|
|
4,033
|
|
|
|
(104)
|
|
Deferred income tax
expense (recovery)
|
|
517
|
|
|
|
(2,448)
|
|
|
|
1,810
|
|
|
|
(4,336)
|
|
Income tax expense
(recovery)
|
|
509
|
|
|
|
(2,231)
|
|
|
|
5,843
|
|
|
|
(4,440)
|
|
Net
loss
|
$
|
(4,470)
|
|
|
$
|
(7,865)
|
|
|
$
|
(4,441)
|
|
|
$
|
(19,910)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
fully diluted
|
$
|
(0.04)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
118,817,466
|
|
|
|
118,779,445
|
|
|
|
118,817,466
|
|
|
|
118,719,182
|
|
Fully
diluted
|
|
118,817,466
|
|
|
|
118,779,445
|
|
|
|
118,817,466
|
|
|
|
118,719,182
|
|
Quarterhill
Inc.
|
|
Supplemental
Condensed Consolidated Interim Statements of Operations
Information
|
|
(Unaudited)
|
|
(in thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
$
|
25,581
|
|
|
$
|
5,643
|
|
|
$
|
53,561
|
|
|
$
|
8,136
|
|
Systems
|
|
10,492
|
|
|
|
7,179
|
|
|
|
16,094
|
|
|
|
11,872
|
|
Services
|
|
547
|
|
|
|
727
|
|
|
|
1,193
|
|
|
|
1,380
|
|
Recurring
|
|
5,736
|
|
|
|
6,848
|
|
|
|
11,346
|
|
|
|
11,018
|
|
Total
revenues
|
$
|
42,356
|
|
|
$
|
20,397
|
|
|
$
|
82,194
|
|
|
$
|
32,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(excluding depreciation and amortization)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
$
|
11,987
|
|
|
$
|
8,069
|
|
|
$
|
24,793
|
|
|
$
|
14,000
|
|
Systems
|
|
6,863
|
|
|
|
4,645
|
|
|
|
10,656
|
|
|
|
8,111
|
|
Services
|
|
356
|
|
|
|
385
|
|
|
|
646
|
|
|
|
690
|
|
Recurring
|
|
2,625
|
|
|
|
3,440
|
|
|
|
5,529
|
|
|
|
5,472
|
|
Total cost of
revenues
|
$
|
21,831
|
|
|
$
|
16,539
|
|
|
$
|
41,624
|
|
|
$
|
28,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterhill
Inc.
|
|
Condensed
Consolidated Interim Statements of Comprehensive Income
(Loss)
|
|
(Unaudited)
|
|
(in thousands of
United States dollars)
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net
loss
|
$
|
(4,470)
|
|
|
$
|
(7,865)
|
|
|
$
|
(4,441)
|
|
|
$
|
(19,910)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
158
|
|
|
|
(1,481)
|
|
|
|
757
|
|
|
|
(2,271)
|
|
Comprehensive income
(loss)
|
$
|
(4,312)
|
|
|
$
|
(9,346)
|
|
|
$
|
(3,684)
|
|
|
$
|
(22,181)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterhill
Inc.
|
|
Condensed
Consolidated Interim Balance Sheets
|
|
(Unaudited)
|
|
(in thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
|
|
|
|
June 30,
2019
|
|
|
December 31,
2018
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
|
84,634
|
|
|
$
|
63,929
|
|
Short-term
investments
|
|
|
|
|
|
1,181
|
|
|
|
1,139
|
|
Restricted short-term
investments
|
|
|
|
|
|
2,200
|
|
|
|
2,200
|
|
Accounts
receivable
|
|
|
|
|
|
9,786
|
|
|
|
10,812
|
|
Other current
assets
|
|
|
|
|
|
-
|
|
|
|
91
|
|
Unbilled
revenue
|
|
|
|
|
|
6,638
|
|
|
|
3,990
|
|
Income taxes
receivable
|
|
|
|
|
|
52
|
|
|
|
198
|
|
Inventories
|
|
|
|
|
|
6,100
|
|
|
|
5,960
|
|
Prepaid expenses and
deposits
|
|
|
|
|
|
2,368
|
|
|
|
2,332
|
|
|
|
|
|
|
|
112,959
|
|
|
|
90,651
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
|
333
|
|
|
|
415
|
|
Right-of-use
assets
|
|
|
|
|
|
3,895
|
|
|
|
-
|
|
Property, plant and
equipment
|
|
|
|
|
|
1,886
|
|
|
|
2,655
|
|
Intangible
assets
|
|
|
|
|
|
77,669
|
|
|
|
87,425
|
|
Investment in joint
venture
|
|
|
|
|
|
4,057
|
|
|
|
3,822
|
|
Deferred income tax
assets
|
|
|
|
|
|
23,918
|
|
|
|
27,141
|
|
Goodwill
|
|
|
|
|
|
25,302
|
|
|
|
25,303
|
|
TOTAL
ASSETS
|
|
|
|
|
$
|
250,019
|
|
|
$
|
237,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
|
|
|
$
|
4,514
|
|
|
$
|
2,598
|
|
Accounts payable and
accrued liabilities
|
|
|
|
|
|
21,612
|
|
|
|
18,103
|
|
Income taxes
payable
|
|
|
|
|
|
37
|
|
|
|
-
|
|
Right-of-use lease
liabilities
|
|
|
|
|
|
699
|
|
|
|
-
|
|
Current portion of
deferred revenue
|
|
|
|
|
|
4,840
|
|
|
|
4,670
|
|
Current portion of
long-term debt
|
|
|
|
|
|
61
|
|
|
|
299
|
|
Contingent
consideration
|
|
|
|
|
|
11,577
|
|
|
|
929
|
|
|
|
|
|
|
|
43,340
|
|
|
|
26,599
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
|
|
|
1,144
|
|
|
|
1,435
|
|
Right-of-use lease
liabilities
|
|
|
|
|
|
3,059
|
|
|
|
-
|
|
Long-term
debt
|
|
|
|
|
|
175
|
|
|
|
173
|
|
Deferred income tax
liabilities
|
|
|
|
|
|
2,939
|
|
|
|
4,337
|
|
TOTAL
LIABILITIES
|
|
|
|
|
|
50,657
|
|
|
|
32,544
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Capital
stock
|
|
|
|
|
|
419,111
|
|
|
|
419,111
|
|
Additional paid-in
capital
|
|
|
|
|
|
23,366
|
|
|
|
22,957
|
|
Accumulated other
comprehensive income
|
|
|
|
|
|
17,000
|
|
|
|
16,243
|
|
Deficit
|
|
|
|
|
|
(260,115)
|
|
|
|
(253,443)
|
|
|
|
|
|
|
|
199,362
|
|
|
|
204,868
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
$
|
250,019
|
|
|
$
|
237,412
|
|
Quarterhill
Inc.
|
|
Condensed
Consolidated Interim Statements of Cash Flows
|
|
(Unaudited)
|
|
(in thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Cash generated from
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(4,470)
|
|
|
$
|
(7,865)
|
|
|
$
|
(4,441)
|
|
|
$
|
(19,910)
|
|
Non-cash
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
228
|
|
|
|
(2)
|
|
|
|
409
|
|
|
|
154
|
|
Depreciation and
amortization
|
|
5,575
|
|
|
|
6,830
|
|
|
|
11,184
|
|
|
|
13,976
|
|
Foreign exchange
(gain) loss
|
|
(34)
|
|
|
|
84
|
|
|
|
(96)
|
|
|
|
162
|
|
Equity in income from
joint venture
|
|
(177)
|
|
|
|
(388)
|
|
|
|
(251)
|
|
|
|
(638)
|
|
Loss on disposal of
assets
|
|
587
|
|
|
|
-
|
|
|
|
587
|
|
|
|
1
|
|
Deferred income tax
expense (recovery)
|
|
517
|
|
|
|
(2,448)
|
|
|
|
1,810
|
|
|
|
(4,336)
|
|
Embedded
derivatives
|
|
29
|
|
|
|
(3)
|
|
|
|
99
|
|
|
|
(1)
|
|
Contingent
consideration adjustment
|
|
10,648
|
|
|
|
-
|
|
|
|
10,648
|
|
|
|
-
|
|
Changes in non-cash
working capital balances
|
|
21,124
|
|
|
|
1,362
|
|
|
|
1,686
|
|
|
|
1,623
|
|
Cash generated from
(used in) operations
|
|
34,027
|
|
|
|
(2,430)
|
|
|
|
21,635
|
|
|
|
(8,969)
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable -
non current (net)
|
|
18
|
|
|
|
-
|
|
|
|
82
|
|
|
|
-
|
|
Dividends
paid
|
|
(1,101)
|
|
|
|
(1,155)
|
|
|
|
(2,231)
|
|
|
|
(2,326)
|
|
Bank
indebtedness
|
|
1,844
|
|
|
|
3,170
|
|
|
|
1,916
|
|
|
|
1,113
|
|
Repayment of long-term
debt
|
|
(212)
|
|
|
|
(60)
|
|
|
|
(236)
|
|
|
|
(75)
|
|
Common shares issued
for cash from Employee
Share Purchase Plan
|
|
-
|
|
|
|
27
|
|
|
|
-
|
|
|
|
27
|
|
Cash generated from
(used in) financing
|
|
549
|
|
|
|
1,982
|
|
|
|
(469)
|
|
|
|
(1,261)
|
|
Investing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11
|
|
Purchase of property
and equipment
|
|
(308)
|
|
|
|
(43)
|
|
|
|
(466)
|
|
|
|
(166)
|
|
Repayment of patent
finance obligations
|
|
-
|
|
|
|
(1,389)
|
|
|
|
-
|
|
|
|
(2,778)
|
|
Purchase of
intangibles
|
|
(73)
|
|
|
|
(48)
|
|
|
|
(93)
|
|
|
|
(89)
|
|
Cash used in
investing
|
|
(381)
|
|
|
|
(1,480)
|
|
|
|
(559)
|
|
|
|
(3,022)
|
|
Foreign exchange gain
(loss) on cash held in foreign currency
|
|
33
|
|
|
|
(76)
|
|
|
|
98
|
|
|
|
(151)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
34,228
|
|
|
|
(2,004)
|
|
|
|
20,705
|
|
|
|
(13,403)
|
|
Cash and cash
equivalents, beginning of period
|
|
50,406
|
|
|
|
70,419
|
|
|
|
63,929
|
|
|
|
81,818
|
|
Cash and cash
equivalents, end of period
|
$
|
84,634
|
|
|
$
|
68,415
|
|
|
$
|
84,634
|
|
|
$
|
68,415
|
|
Quarterhill
Inc.
|
|
Condensed
Consolidated Interim Statements of Shareholders' Equity
|
|
(Unaudited)
|
|
(in thousands of
United States dollars)
|
|
|
Capital
Stock
|
|
|
Additional
Paid-in Capital
|
|
|
Accumulated
Other
Comprehensive
Income
|
|
|
Deficit
|
|
|
Total
Equity
|
|
Balance - January 1,
2018
|
$
|
418,873
|
|
|
$
|
22,489
|
|
|
$
|
20,111
|
|
|
$
|
(199,718)
|
|
|
$
|
261,755
|
|
For the three months
ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,045)
|
|
|
|
(12,045)
|
|
Other comprehensive
loss
|
|
-
|
|
|
|
-
|
|
|
|
(790)
|
|
|
|
-
|
|
|
|
(790)
|
|
Stock-based
compensation expense
|
|
-
|
|
|
|
156
|
|
|
|
-
|
|
|
|
-
|
|
|
|
156
|
|
Dividends
declared
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,171)
|
|
|
|
(1,171)
|
|
Balance March 31,
2018
|
|
418,873
|
|
|
|
22,645
|
|
|
|
19,321
|
|
|
|
(212,934)
|
|
|
|
247,905
|
|
For the three months
ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,865)
|
|
|
|
(7,865)
|
|
Other comprehensive
loss
|
|
-
|
|
|
|
-
|
|
|
|
(1,481)
|
|
|
|
-
|
|
|
|
(1,481)
|
|
Stock-based
compensation expense
|
|
-
|
|
|
|
(2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2)
|
|
Conversion of
deferred stock units to common shares
|
|
211
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
211
|
|
Shares issued under
Employee Share Purchase Plan
|
|
27
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27
|
|
Dividends
declared
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,155)
|
|
|
|
(1,155)
|
|
Balance - June 30,
2018
|
$
|
419,111
|
|
|
$
|
22,643
|
|
|
$
|
17,840
|
|
|
$
|
(221,954)
|
|
|
$
|
237,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1,
2019
|
$
|
419,111
|
|
|
$
|
22,957
|
|
|
$
|
16,243
|
|
|
$
|
(253,443)
|
|
|
$
|
204,868
|
|
For the three months
ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29
|
|
|
|
29
|
|
Other comprehensive
income
|
|
-
|
|
|
|
-
|
|
|
|
599
|
|
|
|
-
|
|
|
|
599
|
|
Stock-based
compensation expense
|
|
-
|
|
|
|
181
|
|
|
|
-
|
|
|
|
-
|
|
|
|
181
|
|
Dividends
declared
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,130)
|
|
|
|
(1,130)
|
|
Balance - March 31,
2019
|
$
|
419,111
|
|
|
$
|
23,138
|
|
|
$
|
16,842
|
|
|
$
|
(254,544)
|
|
|
$
|
204,547
|
|
For the three months
ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,470)
|
|
|
|
(4,470)
|
|
Other comprehensive
income
|
|
-
|
|
|
|
-
|
|
|
|
158
|
|
|
|
-
|
|
|
|
158
|
|
Stock-based
compensation expense
|
|
-
|
|
|
|
228
|
|
|
|
-
|
|
|
|
-
|
|
|
|
228
|
|
Dividends
declared
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,101)
|
|
|
|
(1,101)
|
|
Balance - June 30,
2019
|
$
|
419,111
|
|
|
$
|
23,366
|
|
|
$
|
17,000
|
|
|
$
|
(260,115)
|
|
|
$
|
199,362
|
|
Quarterhill
Inc.
|
|
Reconciliations of
GAAP Net Income (Loss) to Adjusted EBITDA
|
|
(Unaudited)
|
|
(in thousands of
United States dollars, except share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
Adjusted
EBITDA
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net loss
|
$
|
(4,470)
|
|
|
$
|
(7,865)
|
|
|
$
|
(4,441)
|
|
|
$
|
(19,910)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
509
|
|
|
|
(2,231)
|
|
|
|
5,843
|
|
|
|
(4,440)
|
|
Foreign exchange loss
(gain)
|
|
80
|
|
|
|
(35)
|
|
|
|
322
|
|
|
|
(165)
|
|
Finance
expense
|
|
235
|
|
|
|
40
|
|
|
|
279
|
|
|
|
79
|
|
Finance
income
|
|
(291)
|
|
|
|
(191)
|
|
|
|
(493)
|
|
|
|
(382)
|
|
Special
charges
|
|
11,180
|
|
|
|
-
|
|
|
|
12,477
|
|
|
|
-
|
|
Amortization of
intangibles
|
|
5,213
|
|
|
|
6,442
|
|
|
|
10,444
|
|
|
|
13,193
|
|
Depreciation of
property, plant and equipment
|
|
362
|
|
|
|
388
|
|
|
|
740
|
|
|
|
783
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
|
82
|
|
|
|
-
|
|
|
|
306
|
|
Stock-based
compensation
|
|
228
|
|
|
|
(2)
|
|
|
|
409
|
|
|
|
154
|
|
Other
income
|
|
(180)
|
|
|
|
(579)
|
|
|
|
(254)
|
|
|
|
(906)
|
|
Adjusted
EBITDA
|
$
|
12,866
|
|
|
$
|
(3,951)
|
|
|
$
|
25,326
|
|
|
$
|
(11,288)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(0.04)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
-
|
|
|
|
(0.02)
|
|
|
|
0.04
|
|
|
|
(0.04)
|
|
Foreign exchange loss
(gain)
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Finance
expense
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Finance
income
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Special
charges
|
|
0.09
|
|
|
|
-
|
|
|
|
0.10
|
|
|
|
-
|
|
Amortization of
intangibles
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.08
|
|
|
|
0.11
|
|
Depreciation of
property, plant and equipment
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Effect of deleted
deferred revenue
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Stock-based
compensation
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
income
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted EBITDA
per share
|
$
|
0.09
|
|
|
$
|
(0.04)
|
|
|
$
|
0.18
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
118,817,466
|
|
|
|
118,779,445
|
|
|
|
118,817,466
|
|
|
|
118,719,182
|
|
View original
content:http://www.prnewswire.com/news-releases/quarterhill-announces-second-quarter-2019-financial-results-300898686.html
SOURCE Quarterhill Inc.