Quarterhill Announces Record Q3 2017 Financial Results
Record revenue and Adjusted EBITDA driven by patent license business
OTTAWA, Nov. 9, 2017 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX:QTRH) (NASDAQ:QTRH), announces its financial results for the three and nine month periods ended September 30, 2017. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Third Quarter Highlights
-- Revenue of $85.9 million, exceeding the high-end of the expected $72.5
to $82.5 million range previously provided
-- Adjusted EBITDA* of $60.6 million, exceeding the high-end of the
expected $50.0 to $56.0 million range previously provided
-- Net income of $26.2 million, or $0.22 per share
-- Announced a new comprehensive license agreement with Samsung, in the
Technology segment
-- Acquired a portfolio of patents in the Technology segment using the
partner model; patents are related to Content Delivery Network
technology
-- Announced three contracts collectively valued at more than $10.0
million, in the Mobility segment
-- Acquired iCOMS Detections S.A. ("iCOMS"), based in Belgium, in the
Mobility segment
"Our strong performance in Q3 reflects a significant contribution from WiLAN, our patent license business," said Shaun McEwan, Interim CEO of Quarterhill. "Patent licensing tends to generate variable quarterly performance and Q3 clearly demonstrates the upside that can occur from that type of business model. The significant cash flow that will be generated from our Q3 performance will help to support Quarterhill's growth initiatives."
Approval of Eligible Dividend
The Board of Directors has declared an eligible quarterly dividend of CDN $0.0125 per common share payable on January 5, 2018, to shareholders of record on December 15, 2017.
Business Strategy and Segments
Quarterhill is developing a portfolio of established businesses that have histories of generating cash flows from their operations in the "Technology", "Mobility", "Factory" and "City" segments of the Industrial "Internet-of-Things" market. As of September 30, 2017, the Company had investments in three of its four targeted segments: Technology (WiLAN); Mobility (IRD); and Factory (VIZIYA).
Quarterhill is working to build a consistently profitable company with a diversified investment base and global market presence within its segments, and to increase shareholder value by emphasizing the importance of recurring revenue streams and the predictability of operating results. The Company intends to achieve these objectives through a combination of organic growth and acquisitions.
Q3 and Year-to-Date 2017 Consolidated Financial Review
Quarterhill's consolidated financial results for Q3 2017 include full quarter contributions from each of its wholly owned subsidiaries; Wi-LAN Inc. ("WiLAN"), International Road Dynamics Inc. ("IRD") and VIZIYA Corp ("VIZIYA"). The 2016 comparative period information presented represents solely WiLAN's results for the specified period. Certain comparative information has been restated to conform to the new basis of presentation.
Consolidated revenues for the three months ended September 30, 2017 were $85.9 million, compared to $16.6 million in the same period last year, which represents an increase of 417%. The increase was primarily due to strong patent licensing results from WiLAN and the inclusion of a full quarter of operations from IRD and VIZIYA. Consolidated revenues for the nine months ended September 30, 2017 were $112.1 million, compared to $62.7 million in the same period last year.
Gross margin for the three months ended September 30, 2017 was $67.5 million, or 78.6%, compared to $11.2 million, or 67.5%, in the same period last year. Gross margin for the nine months ended September 30, 2017 was $76.7 million, or 68.5%, compared to $43.0 million, or 68.6%, in the same period last year. Gross margins for the three and nine month periods ended September 30, 2017 reflect contribution across all three segments, compared to the same periods last year, which reflect only the operations of what is now the Company's Technology segment.
Operating expenses include selling, general and administrative costs, research and development costs, depreciation, amortization, loss on disposal of intangible asset, and special charges. Operating expenses for the three months ended September 30, 2017 were $31.3 million, compared to $8.7 million in the same period last year. Operating expenses for the nine months ended September 30, 2017 were $51.5 million compared to $33.9 million in the same period last year. Operating expenses increased in the year-over year periods due to the addition of the IRD and VIZIYA operations, acquisition-related costs associated with the purchases of IRD and VIZIYA, and a $15.2 million non-cash charge in Q3 2017 related to a loss on disposal of an intangible asset.
Adjusted EBITDA for the three months ended September 30, 2017 was $60.6 million, or $0.50 per basic Common Share, compared to $9.4 million, or $0.09 per basic Common Share, in the same period last year. For the nine months ended September 30, 2017, Adjusted EBITDA was $63.1 million, or $0.55 per basic Common Share, compared to $36.2 million, or $0.30 per basic Common Share, in the same period last year. The year-over-year increase in Adjusted EBITDA is primarily due to strong performance in the patent license business in Q3 2017 and the inclusion of operations from the businesses acquired earlier in 2017.
Net income for the three months ended September 30, 2017 was $26.2 million, or $0.22 per basic and diluted Common Share, compared to net income of $0.7 million, or $0.01 per basic and diluted Common Share, in the same period last year. For the nine months ended September 30, 2017, net income was $22.6 million, or $0.19 per basic and diluted Common Share, compared to net income of $2.4 million, or $0.02 per basic and diluted Common Share, in the same period last year. As described above, the year-over-year increase in net income is primarily due to strong performance in the patent license business in Q3 2017 and the inclusion of operations from the businesses acquired in 2017.
Cash generated from operations for the three months ended September 30, 2017 was $9.3 million, compared to $6.2 million in the same period last year. Cash generated from operations for the nine months ended September 30, 2017 was $20.8 million compared to $29.3 million in the same period last year. Cash from operations was negatively impacted in Q3 2017 due to a significant increase in accounts receivable, of which the related amount was collected in full subsequent to quarter-end.
Cash and cash equivalents and short-term investments amounted to $40.6 million at September 30, 2017, compared to $107.7 million at December 31, 2016. The decrease is primarily attributable to $67.4 million spent on the acquisitions of IRD, VIZIYA and iCOMS, and $18.2 million spent on the repayment of patent finance obligations, which were partially offset by cash generated from operations of $20.8 million in the nine month period.
The table below highlights financial performance for the Company's Technology, Mobility and Factory 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 September 30, 2017
---------------------------------------------
Technology Mobility Factory Corporate Total
---------- -------- ------- --------- -----
Revenues $72,592 $11,555 $1,750 $ - $85,897
Cost of revenues
(excluding
depreciation and
amortization) 9,882 8,048 495 - 18,425
----------------- ----- ----- --- --- ------
62,710 3,507 1,255 - 67,472
Selling, general and
administrative 1,310 2,530 905 1,756 6,501
Research and
development - 853 639 - 1,492
Depreciation of
property, plant and
equipment 82 445 28 1 556
Amortization of
intangibles 5,473 1,072 791 - 7,336
Loss on disposal of
intangibles 15,190 - - - 15,190
Special charges - - - 218 218
--------------- --- --- --- --- ---
Results from
operations 40,655 (1,393) (1,108) (1,975) 36,179
Finance income (76) (1) - (16) (93)
Finance expense 926 43 3 (2) 970
Foreign exchange
loss (gain) (131) 409 2 (41) 239
Other expense
(income) - (231) - - (231)
------------- --- ---- --- --- ----
Income (loss) before
taxes 39,936 (1,613) (1,113) (1,916) 35,294
Current income tax
expense (recovery) 5,082 232 (5) - 5,309
Deferred income tax
expense (recovery) (5,369) (858) (291) 10,292 3,774
------------------- ------ ---- ---- ------ -----
Income tax expense
(recovery) (287) (626) (296) 10,292 9,083
------------------ ---- ---- ---- ------ -----
Net income (loss) $40,223 $(987) $(817) $(12,208) $26,211
================ ======= ===== ===== ======== =======
Adjusted EBITDA 61,400 707 3 (1,550) 60,560
Other reconciling
items:
Effect of deleted
deferred revenue - 82 292 - 374
Increased costs from
inventory step-up - 444 - - 444
Stock based
compensation - 67 - 206 273
Effect of deleted
prepaid expense - (10) - - (10)
For the nine months ended September 30, 2017
--------------------------------------------
Technology Mobility Factory Corporate Total
---------- -------- ------- --------- -----
Revenues $92,218 $16,203 $3,665 $ - $112,086
Cost of revenues
(excluding
depreciation and
amortization) 23,644 10,800 896 - 35,340
----------------- ------ ------ --- --- ------
68,574 5,403 2,769 - 76,746
Selling, general and
administrative 5,484 3,502 1,781 2,350 13,117
Research and
development - 1,161 999 - 2,160
Depreciation of
property, plant and
equipment 261 493 62 1 817
Amortization of
intangibles 16,097 1,308 1,262 - 18,667
Loss on disposal of
intangibles 15,190 - - - 15,190
Special charges - - - 1,512 1,512
--------------- --- --- --- ----- -----
Results from
operations 31,542 (1,061) (1,335) (3,863) 25,283
Finance income (467) (1) - (77) (545)
Finance expense 926 54 6 (2) 984
Foreign exchange
loss (gain) (516) 695 43 (694) (472)
Other expense
(income) - (300) - - (300)
------------- --- ---- --- --- ----
Income (loss) before
taxes 31,599 (1,509) (1,384) (3,090) 25,616
Current income tax
expense 6,516 333 34 - 6,883
Deferred income tax
expense (recovery) (7,869) (920) (485) 5,416 (3,858)
------------------- ------ ---- ---- ----- ------
Income tax expense
(recovery) (1,353) (587) (451) 5,416 3,025
------------------ ------ ---- ---- ----- -----
Net income (loss) $32,952 $(922) $(933) $(8,506) $22,591
================ ======= ===== ===== ======= =======
Adjusted EBITDA 63,147 1,517 523 (2,054) 63,133
Other reconciling
items:
Effect of deleted
deferred revenue - 107 534 - 641
Increased costs from
inventory step-up - 581 - - 581
Stock based
compensation 57 99 - 296 452
Effect of deleted
prepaid expense - (10) - - (10)
Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results today at 10:00 AM Eastern Time.
Call Information
The live audio webcast will be available at http://event.on24.com/wcc/r/1527032-1/438BD0AD28382873CEDA2B344C7CFB3C
-- 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
A webcast of the call will be available at http://event.on24.com/wcc/r/1527032-1/438BD0AD28382873CEDA2B344C7CFB3C
-- A telephone replay will be available from 1:00 PM ET on November 9, 2017
until 11:59 PM ET on November 16, 2017 at: 1.855.859.2056 (Toll Free) or
1.416.849.0833 (International).
-- Conference ID #: 99524733
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 from continuing operations before: (i) income taxes; (ii) finance expense or income; (iii) amortization of intangibles; (iv) special charges and other one-time expenses; (v) depreciation of property, plant and equipment; (vi) effects of deleted deferred revenue; (vii) the effects of fair value step up in inventory acquired, and (viii) stock based compensation. 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 EARNINGS AND CASH FLOWS FROM OPERATIONS AS DETERMINED IN ACCORDANCE WITH U.S. GAAP OR AS A MEASURE OF LIQUIDITY.
About Quarterhill
Quarterhill is a diversified investment holding company focused on growing its business by acquiring technology companies in the Industrial Internet of Things segment across multiple segments. Quarterhill targets companies with a broad range of products and services that capture, analyze and interpret data, and that have strong financial performance, excellent management teams, strong intellectual property underpinnings and significant opportunities to develop long-term recurring and growing revenue streams. 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 each of its February 10, 2017 annual information form for the year ended December 31, 2016 (the "AIF") and its August 9, 2017 Management's Discussion and Analysis of Financial Condition and Results of Operations for the 3 and 6 months ended June 30, 2017 and 2016 (the "Q2 MD&A"). Copies of the AIF and the Q2 MD&A may be obtained at www.sedar.com or www.sec.gov. 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
(in thousands of United States dollars, except share and per share amounts) (unaudited)
For the three months ended, For the nine months ended,
--------------------------- --------------------------
September 30, September 30, September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Revenues $85,897 $16,569 $112,086 $62,690
Cost of revenues (excluding depreciation and amortization) 18,425 5,398 35,340 19,661
--------------------------------------------------------- ------ ----- ------ ------
67,472 11,171 76,746 43,029
Operating expenses
Selling, general and administrative 6,501 1,800 13,117 6,986
Research and development 1,492 - 2,160 -
Depreciation of property, plant and equipment 556 104 817 317
Amortization of intangibles 7,336 6,744 18,667 26,616
Loss on disposal of intangible (Note 9) 15,190 - 15,190 -
Special charges 218 - 1,512 -
--------------- --- --- ----- ---
31,293 8,648 51,463 33,919
------ ----- ------ ------
Results from operations 36,179 2,523 25,283 9,110
Foreign exchange (gain) loss 239 78 (472) (199)
Finance (income) (93) (138) (545) (376)
Finance expenses 970 - 984 -
Other expense (income) (231) - (300) -
--------------------- ---- --- ---- ---
Income before taxes 35,294 2,583 25,616 9,685
Current income tax expense (recovery) 5,309 1,028 6,883 4,888
Deferred income tax expense (recovery) 3,774 898 (3,858) 2,372
------------------------------------- ----- --- ------ -----
Income tax expense (recovery) 9,083 1,926 3,025 7,260
---------------------------- ----- ----- ----- -----
Net income (loss) $26,211 $657 $22,591 $2,425
================ ======= ==== ======= ======
Net Income (loss) per share
Basic and fully diluted $0.22 $0.01 $0.19 $0.02
Weighted average number of common shares
Basic and fully diluted 118,627,249 118,912,606 118,595,713 119,500,216
Quarterhill Inc.
Supplemental Condensed Consolidated Interim Statement of Operations Information
(in thousands of United States dollars, except share and per share amounts) (unaudited)
For the three months
ended, For the six months ended,
--------------------- -------------------------
September September September September
30, 30, 30, 30,
2017 2016 2017 2016
---- ---- ---- ----
Revenues
Licenses $72,158 $16,569 $91,470 $62,690
Systems 6,759 - 9,826 -
Services 780 - 1,494 -
Recurring 6,200 - 9,296 -
--------- ----- --- ----- ---
Total Revenues $85,897 $16,569 $112,086 $62,690
============== ======= ======= ======== =======
Cost of revenues (excluding depreciation and amortization)
License $9,864 $5,398 $23,706 $19,661
Systems 4,740 - 6,638 -
Services 500 - 821 -
Recurring 3,321 - 4,175 -
--------- ----- --- ----- ---
Total cost of revenues $18,425 $5,398 $35,340 $19,661
====================== ======= ====== ======= =======
Quarterhill Inc.
Condensed Consolidated Interim Statements of Comprehensive Income
(in thousands of United States dollars, except share and per share amounts) (unaudited)
For the three months
ended, For the six months ended,
--------------------- -------------------------
September September September September
30, 30, 30, 30,
2017 2016 2017 2016
---- ---- ---- ----
Net income (loss) $26,211 $657 $22,591 $2,425
Other comprehensive income
(loss):
Foreign currency translation
adjustment 3,209 - 3,742 -
Comprehensive income $29,420 $657 $26,333 $2,425
======= ==== ======= ======
Quarterhill Inc.
Condensed Consolidated Interim Balance Sheets
(in thousands of United States dollars, except share and per share amounts) (unaudited)
As at September 30, December 31,
2017 2016
----- -------------- -------------
Current assets
Cash and cash equivalents $35,817 $106,553
Short-term investments 1,242 1,154
Restricted Short-term investments 3,500 -
Accounts receivable 66,302 20,357
Other current assets 31 -
Unbilled revenue 5,653 -
Inventories 5,938 -
Loans receivable 1,000 1,766
Prepaid expenses and deposits 4,081 1,293
----------------------------- ----- -----
123,564 131,123
Non-current assets
Property Plant and Equipment 3,911 1,240
Intangible assets 132,212 123,351
Investment in joint venture 3,325 -
Deferred income tax assets 18,246 14,646
Goodwill 42,673 12,623
-------- ------ ------
TOTAL ASSETS $323,931 $282,983
============ ======== ========
Liabilities
Current liabilities
Bank indebtedness $4,152 $ -
Accounts payable and accrued
liabilities 23,863 15,645
Income taxes payable 78 -
Current portion of patent finance
obligation 5,422 10,372
Current portion of deferred revenue 6,644 -
Current portion of long-term debt 45 -
--------------------------------- --- ---
40,204 26,017
Non-current liabilities
Acquisition notes payable 6,450 -
Patent finance obligation - 12,775
Success fee obligation - 47
Deferred revenue 523 -
Long-term debt 501 -
Deferred income tax liabilities 8,582 -
------------------------------- ----- ---
TOTAL LIABILITIES 56,260 38,839
----------------- ------ ------
Shareholders' equity
Capital stock 418,838 419,485
Additional paid-in capital 22,278 21,036
Accumulated other comprehensive
income 19,967 16,225
Deficit (193,412) (212,602)
------- -------- --------
267,671 244,144
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $323,931 $282,983
===================== ======== ========
Quarterhill Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of United States dollars, except share and per share amounts) (unaudited)
For the three months ended, For the nine months ended,
--------------------------- --------------------------
September 30, September 30, September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Cash generated from (used in):
Operations
Net income $26,211 $657 $22,591 $2,425
Non-cash items
Stock-based compensation 273 42 452 197
Depreciation and amortization 7,892 6,846 19,484 26,933
Foreign exchange (gain) loss (20) 53 (166) (337)
Equity in earnings from joint
venture (231) - (300) -
Loss on disposal of intangible 15,190 - 15,190 -
Gain (loss) on disposal of assets (5) - (5) 13
Deferred income tax expense
(recovery) 3,777 898 (3,855) 2,372
Accrued investment income 922 (66) 772 (194)
Embedded derivatives 11 - 21 -
Changes in non-
cash working
capital balances (44,743) (2,230) (33,425) (2,145)
---------------- ------- ------ ------- ------
Cash generated from operations 9,277 6,200 20,759 29,264
Financing
Dividends paid (1,173) (1,153) (3,401) (3,395)
Bank indebtedness 401 - 1,924 -
Long term debt (372) - (396) -
Common shares repurchased under
normal course issuer bid - (1,102) (552) (4,225)
Common shares issued for cash on
the exercise of options - - - 11
Common shares issued for cash from
Employee Share Purchase Plan - - 33 35
----------------------------------- --- --- --- ---
Cash used in financing (1,144) (2,255) (2,392) (7,574)
Investing
Acquisition of Viziya, net of cash
acquired - - (18,521) -
Acquisition of IRD, net of cash
acquired - - (47,782) -
Acquisition of iCOMS (1,112) - (1,112) -
Purchase of short-term investment - - (3,500) -
Purchase of property and equipment (142) (6) (256) (46)
Repayment of patent finance
obligations (15,389) (1,389) (18,167) (4,166)
Purchase of intangibles (8) (3,000) (12) (9,150)
----------------------- --- ------ --- ------
Cash used in investing (16,651) (4,395) (89,350) (13,362)
Foreign exchange loss (gain) on cash held in
foreign currency 20 (35) 247 275
-------------------------------------------- --- --- --- ---
Net increase (decrease) in cash and cash
equivalents (8,498) (484) (70,736) 8,603
Cash and cash equivalents, beginning of period 44,315 102,518 106,553 93,431
---------------------------------------------- ------ ------- ------- ------
Cash and cash equivalents, end of
period $35,817 $102,034 $35,817 $102,034
================================= ======= ======== ======= ========
Quarterhill Inc.
Condensed Consolidated Statements of Shareholders' Equity
(in thousands of United States dollars, except share and per share amounts) (unaudited)
Capital Stock Additional Accumulated Deficit Equity
paid in Other
Capital Comprehensive
Income
------- -------------
Balance - December 31, 2015 $427,781 $16,549 $16,225 $(219,177) $241,378
Comprehensive earnings:
Net income - - - 2,425 2,425
Other Comprehensive Income - - - - -
Shares and options issued:
Stock-based compensation expense - 197 - - 197
Conversion of deferred stock units to common shares 116 - - - 116
Exercise of stock options 17 (6) - - 11
Sale of shares under Employee Share Purchase Plan 35 - - - 35
Shares repurchased under normal course issuer bid (8,501) 4,276 - - (4,225)
Dividends declared - - - (3,374) (3,374)
------------------ --- --- --- ------ ------
Balance - September 30, 2016 $419,448 $21,016 $16,225 $(220,126) $236,563
============================ ======== ======= ======= ========= ========
Balance - December 31, 2016 419,485 21,036 16,225 (212,602) 244,144
Comprehensive earnings:
Net loss - - - 22,591 22,591
Other Comprehensive Income - - 3,742 - 3,742
Shares and options issued:
Stock-based compensation expense - 452 - - 452
Shares issued upon acquisition 662 - - - 662
Sale of shares under Employee Share Purchase Plan 33 - - - 33
Shares repurchased under normal course issuer bid (1,342) 790 - - (552)
Dividends declared - - - (3,401) (3,401)
------------------ --- --- --- ------ ------
Balance - September 30, 2017 $418,838 $22,278 $19,967 $(193,412) $267,671
============================ ======== ======= ======= ========= ========
Quarterhill Inc.
Reconciliations of GAAP Net Income (Loss) to Adjusted EBITDA
(in thousands of United States dollars, except share and per share amounts) (unaudited)
For the three months ended, For the nine months ended,
Adjusted EBITDA September 30, September 30, September 30, September 30,
2017 2016 2017 2016
--- ---- ---- ---- ----
Net income $26,211 $657 $22,591 $2,425
Adjusted for:
Income tax expense 9,083 1,926 3,025 7,260
Foreign exchange (gain) loss 239 78 (472) (199)
Finance expense 970 - 984 -
Finance income (93) (138) (545) (376)
Special charges 218 - 1,512 -
Amortization of intangibles 7,336 6,744 18,667 26,616
Loss on disposal of intangible 15,190 - 15,190 -
Depreciation of property, plant and
equipment 556 104 817 317
Effect of deleted deferred revenue 374 - 641 -
Increased costs from inventory
step-up 444 - 581 -
Effect of deleted prepaid expenses (10) - (10) -
Stock based compensation 273 42 452 195
Other expense (income) (231) - (300) -
--------------------- ---- --- ---- ---
Adjusted EBITDA $60,560 $9,413 $63,133 $36,238
=============== ======= ====== ======= =======
Adjusted EBITDA per share
Net income $0.22 $0.01 $0.19 $0.02
Adjusted for:
Income tax expense 0.08 0.02 0.03 0.06
Foreign exchange (gain) loss - - - -
Finance expense 0.01 - 0.01 -
Finance income - - - -
Special charges - - 0.01 -
Amortization of intangibles 0.06 0.06 0.16 0.22
Loss on disposal of intangible 0.13 - 0.13 -
Depreciation of property, plant and
equipment - - 0.01 -
Effect of deleted deferred revenue - - 0.01 -
Increased costs from inventory
step-up - - - -
Effect of deleted prepaid expenses - - - -
Stock based compensation - - - -
Other expense (income) - - - -
--------------------- --- --- --- ---
Adjusted EBITDA per share $0.50 $0.09 $0.55 $0.30
========================= ===== ===== ===== =====
Weighted average number of Common
Shares
Basic 118,627,249 118,912,606 118,595,713 119,500,216
SOURCE Quarterhill Inc.
