Quarterhill Announces Third Quarter 2018 Financial Results
OTTAWA, Nov. 8, 2018 /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, 2018. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Third Quarter 2018 Highlights
-- Revenue of $19.6 million
-- Recurring revenues of $6.3 million, representing 32% of total revenue
-- Adjusted EBITDA* of ($2.5) million
-- Net loss of ($9.3) million, or ($0.08) per common share
-- Cash and equivalents were $62.4 million at September 30, 2018
-- IRD and VIZIYA's combined revenue and Adjusted EBITDA were up 14% and
125%, respectively year over year
-- WiLAN won a $145.1 million jury award in its patent suit against Apple
Inc.
-- IRD announced a five-year $8.1 million contract with the State of Hawaii
"Highlights in Q3 were led by continued strong performance at IRD and WiLAN's significant trial victory versus Apple," said Doug Parker, President & CEO of Quarterhill. "For the second quarter in a row, IRD generated good revenue and adjusted EBITDA performance and they also signed a key contract with the State of Hawaii for more than $8 million over five years. Year-to-date, IRD has contributed $32.5 million of profitable revenue to Quarterhill and with a building pipeline of business and new products in the market, we believe their outlook remains promising."
"With WiLAN, we signed several new licenses in Q3, but the big news in the quarter was the August 1(st) jury verdict, which awarded us $145.1 million in our patent trial versus Apple. We are obviously very pleased with the jury's decision and believe that it reflects well on our team, our portfolio and our process, and enhances our already strong reputation in the industry. On the M&A front, building our pipeline remains a top priority and we continue to see real progress in this area, which includes a series of advanced negotiations that are currently underway."
Approval of Eligible Dividend
The Board of Directors has declared an eligible quarterly dividend of CDN $0.0125 per common share payable on January 9, 2019, to shareholders of record on December 14, 2018.
Business Strategy and Segments
Our acquisition strategy focuses primarily on financial metrics while remaining cognizant of broader technology and market trends as we build 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, we seek to enable shareholders to benefit from consolidation and convergence trends in today's technology industry. As of September 30, 2018, the Company had investments in three segments: Technology (WiLAN); Mobility (IRD); and Factory (VIZIYA).
Q3 and year-to-date 2018 Consolidated Financial Review
Quarterhill's consolidated financial results for the three- and nine-month periods ended September 30, 2018 include a full contribution from Wi?LAN Inc. ("WiLAN"), International Road Dynamics Inc. ("IRD") and VIZIYA Corp. ("VIZIYA"). The 2017 comparative period information for the nine-month period ended September 30, 2017, includes a full contribution from WiLAN along with IRD's results from operations for the period from June 1 to September 30, 2017 and VIZIYA's results from operations for the period from May 4 to September 30, 2017.
Consolidated revenues for the three months ended September 30, 2018 ("Q3 2018") were $19.6 million, compared to $85.9 million in Q3 2017. Consolidated revenues for the nine months ended September 30, 2018 ("year-to-date") were $52.0 million, compared to $112.1 million in the same period last year. Revenue in the comparable periods of 2017 included strong performance from WiLAN, which generated revenue of $72.6 million in Q3 2017 compared to $4.4 million in Q3 2018. Combined, IRD and VIZIYA grew revenue organically year-over-year by 14% and accounted for 77% of consolidated revenues in Q3 2018.
Gross margin for Q3 2018 was $5.1 million, or 26%, compared to $67.5 million, or 79%, in Q3 2017. Gross margin for the nine months ended September 30, 2018 was $9.3 million, or 18%, compared to $76.7 million, or 68%, in the same period last year. Gross margin comparisons reflect the variability in the WiLAN business noted above. Gross margin and gross margin percentage increased for both IRD and VIZIYA in Q3 2018 compared to Q3 2017. On a sequential basis, consolidated gross margin increased to 26.2% from 18.9% last quarter.
Operating expenses include selling, general and administrative costs, research and development costs, depreciation and amortization of intangible assets. Operating expenses for Q3 2018 were $16.8 million, compared to $31.3 million in Q3 2017. Operating expenses for the nine months ended September 30, 2018 were $46.6 million, compared to $51.5 million in the same period last year. Operating expenses in Q3 2018 included a one-time $2.3 million restructuring charge at IRD related to streamlining their operations, which, going forward, will save IRD approximately $2.2 million annually in expenses.
Adjusted EBITDA for Q3 2018 was ($2.5) million compared to $60.6 million in Q3 2017. Adjusted EBITDA for the nine months ended September 30, 2018 was ($13.8) million compared to $63.1 million in the same period last year. The variance in adjusted EBITDA for the Q3 2018 and year-to-date periods reflects the variability in the WiLAN business noted above. Adjusted EBITDA for both IRD and VIZIYA more than doubled in Q3 2018 from Q3 2017.
Net loss for Q3 2018 was ($9.3) million, or ($0.08) per basic and diluted Common Share, compared to net earnings of $26.2 million, or $0.22 per basic and diluted Common Share, in Q3 2017. Net loss for the nine months ended September 30, 2018 was ($29.2) million, or ($0.25) per basic and diluted Common Share, compared to net earnings of $22.6 million, or $0.19 per basic and diluted Common Share, in the same period last year. For the Q3 2018 and year-to-date periods, net loss increased due primarily to lower revenue from WiLAN and the restructuring charge at IRD, offset in part by improved overall operational performance at IRD and VIZIYA.
Cash consumed in operations for Q3 2018 was $9.0 million, compared to $9.3 million of cash generated from operations in Q3 2017. Cash used in operations for the nine months ended September 30, 2018 was $18.0 million, compared to $20.8 million of cash generated from operations in the same period last year. For the Q3 2018 and year-to-date periods, the difference in cash from operations compared to the same periods last year is primarily due to lower revenue in the WiLAN business, offset in part by higher revenue and adjusted EBITDA in the IRD and VIZIYA businesses.
Cash and cash equivalents and short-term investments amounted to $62.4 million at September 30, 2018, compared to $86.6 million at December 31, 2017.
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, 2018
Technology Mobility Factory Corporate Total
Revenues $
4,445 $
12,439 $
2,695
$ $
19,579
Cost of revenues
(excluding
depreciation and
amortization) 5,877 8,208 355 14,440
---
(1,432) 4,231 2,340 5,139
Selling, general and
administrative
expenses 761 2,211 1,828 2,071 6,871
Research and
development
expenses 534 368 902
Depreciation of
property, plant and
equipment 62 275 32 3 372
Amortization of
intangibles 4,581 960 757 6,298
Special charges 2,320 2,320
---
Results from
operations (6,836) (2,069) (645) (2,074) (11,624)
Finance income (3) (2) (135) (140)
Finance expense 72 4 2 78
Foreign exchange
loss (gain) (223) 108 32 174 91
Other income (247) (247)
---
Loss before taxes (6,610) (2,000) (681) (2,115) (11,406)
Current income tax
expense (recovery) 912 (41) (116) 755
Deferred income tax
recovery (2,103) (504) (264) (9) (2,880)
---
Income tax recovery (1,191) (545) (380) (9) (2,125)
---
Net loss $
(5,419) $
(1,455) $
(301) $
(2,106) $
(9,281)
===
Adjusted EBITDA (2,178) 1,442 158 (1,934) (2,512)
Other reconciling
items:
Effect of deleted
deferred revenue 8 8
Stock-based
compensation 15 (52) 14 137 114
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
expenses 1,310 2,530 905 1,756 6,501
Research and
development
expenses 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 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 earnings (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, 2018
Technology Mobility Factory Corporate Total
Revenues $
10,188 $
32,510 $
9,287
$ $
51,985
Cost of revenues
(excluding
depreciation and
amortization) 19,797 21,789 1,127 42,713
---
(9,609) 10,721 8,160 9,272
Selling, general and
administrative
expenses 1,999 7,497 5,130 6,334 20,960
Research and
development
expenses 1,593 1,101 2,694
Depreciation of
property, plant and
equipment 209 849 91 6 1,155
Amortization of
intangibles 14,297 2,923 2,271 19,491
Special charges 2,320 2,320
---
Results from
operations (26,114) (4,461) (433) (6,340) (37,348)
Finance income (3) (9) (510) (522)
Finance expense 1 144 10 2 157
Foreign exchange
loss (gain) 334 (164) 51 (295) (74)
Other income (884) (269) (1,153)
---
Loss before taxes (26,446) (3,548) (225) (5,537) (35,756)
Current income tax
expense (recovery) 1,137 158 (645) 1 651
Deferred income tax
expense (recovery) (6,928) (1,138) (749) 1,599 (7,216)
---
Income tax expense
(recovery) (5,791) (980) (1,394) 1,600 (6,565)
---
Net earnings (loss) $
(20,655) $
(2,568) $
1,169 $
(7,137) $
(29,191)
===
Adjusted EBITDA (11,582) 1,891 2,101 (6,210) (13,800)
Other reconciling
items:
Effect of deleted
deferred revenue 166 148 314
Stock-based
compensation 26 94 24 124 268
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
expenses 5,484 3,502 1,781 2,350 13,117
Research and
development
expenses 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 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 earnings (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.
Webcast Information The live audio webcast will be available at: https://event.on24.com/wcc/r/1858362/6CC5061D06CF512665FE4AF163E1FFBB
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/1858362/6CC5061D06CF512665FE4AF163E1FFBB
Telephone replay will be available from 1:00 PM ET on November 8, 2018 until 11:59 PM ET on November 15, 2018 at: 1.855.859.2056 (Toll Free) or 1.416.849.0833 (International). The telephone replay requires the passcode 9560049.
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 earnings (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 (x) equity in earnings 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 EARNINGS 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 March 1, 2018 annual information form for the year ended December 31, 2017 (the "AIF"). Copies of the AIF 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
(Unaudited)
(in thousands of United States dollars, except share and per share amounts)
Three months ended September 30, Nine months ended September 30,
---
2018 2017 2018 2017
---
Revenues $
19,579 $
85,897 $
51,985 $
112,086
Cost of revenues (excluding depreciation and amortization) 14,440 18,425 42,713 35,340
---
5,139 67,472 9,272 76,746
Operating expenses
Selling, general and administrative expenses 6,871 6,501 20,960 13,117
Research and development expenses 902 1,492 2,694 2,160
Depreciation of property, plant and equipment 372 556 1,155 817
Amortization of intangibles 6,298 7,336 19,491 18,667
Loss on disposal of intangible assets 15,190 15,190
Special charges 2,320 218 2,320 1,512
---
16,763 31,293 46,620 51,463
Results from operations (11,624) 36,179 (37,348) 25,283
Finance income (140) (93) (522) (545)
Finance expense 78 970 157 984
Foreign exchange loss (gain) 91 239 (74) (472)
Other income (247) (231) (1,153) (300)
---
Income (loss) before taxes (11,406) 35,294 (35,756) 25,616
Current income tax expense 755 5,309 651 6,883
Deferred income tax expense (recovery) (2,880) 3,774 (7,216) (3,858)
---
Income tax expense (recovery) (2,125) 9,083 (6,565) 3,025
---
Net earnings (loss) $
(9,281) $
26,211 $
(29,191) $
22,591
=== ===
Net earnings (loss) per share
Basic and fully diluted $
(0.08) $
0.22 $
(0.25) $
0.19
Weighted average number of common shares
Basic 118,817,466 118,627,249 118,752,303 118,595,713
Fully diluted 118,817,466 118,627,249 118,752,303 118,595,713
Quarterhill Inc.
Supplemental Condensed Consolidated Interim Statements of Operations Information
(Unaudited)
(in thousands of United States dollars)
Three months ended
September 30, Nine months ended September 30,
---
2018 2017 2018 2017
---
Revenues
License $
4,762 $
72,158 $
12,898 $
91,470
Systems 7,885 6,759 19,757 9,826
Services 660 780 2,040 1,494
Recurring 6,272 6,200 17,290 9,296
---
Total revenues $
19,579 $
85,897 $
51,985 $
112,086
=== ===
Cost of revenues (excluding
depreciation and
amortization)
License $
5,927 $
9,864 $
19,927 $
23,706
Systems 5,281 4,740 13,392 6,638
Services 305 500 995 821
Recurring 2,927 3,321 8,399 4,175
---
Total cost of
revenues $
14,440 $
18,425 $
42,713 $
35,340
=== ===
Quarterhill Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(Unaudited)
(in thousands of United States dollars)
Three months ended September
30, Nine months ended September 30,
---
2018 2017 2018 2017
---
Net earnings (loss) $
(9,281) $
26,211 $
(29,191) $
22,591
Other comprehensive income (loss):
Foreign currency translation
adjustment 424 3,209 (1,847) 3,742
Comprehensive income
(loss) $
(8,857) $
29,420 $
(31,038) $
26,333
===
Quarterhill Inc.
Condensed Consolidated Interim Balance Sheets
(Unaudited)
(in thousands of United States dollars)
As at September 30, December 31,
2018 2017
--- ---
Current assets
Cash and cash equivalents $
57,698 $
81,818
Short-term investments 1,200 1,236
Restricted short-term investments 3,500 3,500
Accounts receivable 16,425 19,298
Other current assets 16 13
Unbilled revenue 6,647 3,045
Income taxes receivable 241 144
Inventories 6,080 5,083
Prepaid expenses and deposits 3,383 4,129
---
95,190 118,266
Non-current assets
Property, plant and equipment 2,955 3,801
Intangible assets 95,002 114,944
Investment in joint venture 3,980 3,383
Deferred income tax assets 26,913 20,195
Goodwill 42,091 42,587
---
TOTAL ASSETS $
266,131 $
303,176
=== ===
Liabilities
Current liabilities
Bank indebtedness $
5,674 $
3,568
Accounts payable and accrued liabilities 15,093 20,487
Income taxes payable 29 599
Patent finance obligation 4,090
Current portion of deferred revenue 5,752 6,733
Current portion of long-term debt 77 115
Contingent consideration 4,474 4,474
---
31,099 40,066
Non-current liabilities
Deferred revenue 1,616 884
Long-term debt 347 401
Deferred income tax liabilities 5,315 7,291
---
TOTAL LIABILITIES 38,377 48,642
---
Shareholders' equity
Capital stock 419,111 418,873
Additional paid-in capital 22,757 22,489
Accumulated other comprehensive income 18,264 20,111
Deficit (232,378) (206,939)
---
227,754 254,534
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $
266,131 $
303,176
--- ---
Quarterhill Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)
(in thousands of United States dollars)
Three months ended September
30, Nine months ended September 30,
---
2018 2017 2018 2017
---
Cash generated from (used in):
Operations
Net earnings (loss) $
(9,281) $
26,211 $
(29,191) $
22,591
Non-cash items
Stock-based compensation 114 273 268 452
Depreciation and amortization 6,671 7,892 20,647 19,484
Foreign exchange loss (gain) (51) (20) 111 (166)
Equity in earnings from joint venture (246) (231) (884) (300)
Loss on disposal of assets (26) (5) (25) (5)
Loss on disposal of intangible assets 15,190 15,190
Deferred income tax expense (recovery) (2,880) 3,774 (7,216) (3,858)
Accrued investment income 922 772
Embedded derivatives (2) 11 (3) 21
Changes in non-cash working capital balances (3,273) (44,740) (1,650) (33,422)
---
Cash generated (used) from operations (8,974) 9,277 (17,943) 20,759
Financing
Dividends paid (1,143) (1,173) (3,469) (3,401)
Bank indebtedness 993 401 2,106 1,924
Repayment of long-term debt (17) (372) (92) (396)
Common shares repurchased under normal course issuer bid (552)
Common shares issued for cash from Employee Share Purchase Plan 27 33
---
Cash used in financing (167) (1,144) (1,428) (2,392)
Investing
Business acquisitions, net of cash acquired (1,112) (67,415)
Purchase of restricted short-term investments (3,500)
Proceeds from sale of property, plant and equipment 43 54
Purchase of property and equipment (253) (142) (419) (256)
Repayment of patent finance obligations (1,389) (15,389) (4,167) (18,167)
Purchase of intangibles (25) (8) (114) (12)
---
Cash used in investing (1,624) (16,651) (4,646) (89,350)
Foreign exchange gain (loss) on cash held in foreign currency 48 20 (103) 247
---
Net decrease in cash and cash equivalents (10,717) (8,498) (24,120) (70,736)
Cash and cash equivalents, beginning of period 68,415 44,315 81,818 106,553
---
Cash and cash equivalents, end of period $
57,698 $
35,817 $
57,698 $
35,817
=== ===
Quarterhill Inc.
Condensed Consolidated Interim Statements of Shareholders' Equity
(Unaudited)
(in thousands of United States dollars)
Capital Stock
Additional
Accumulated
Deficit
Total Equity
Paid-in Capital Other
Comprehensive
Income
Balance - January 1, 2017 $
419,485 $
21,036 $
16,225 $
(212,602) $
244,144
Comprehensive income:
Net income 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 33 33
Purchase Plan
Shares repurchased under normal course (1,342) 790 (552)
issuer bid
Dividends declared (3,401) (3,401)
---
Balance - September 30, 2017 $
418,838 $
22,278 $
19,967 $
(193,412) $
267,671
=== ===
Balance - December 31, 2017 $
418,873 $
22,489 $
20,111 $
(206,939) $
254,534
Implementation of ASU 2014-09 4,272 4,272
Implementation of ASU 2016-16 2,949 2,949
---
Balance - January 1, 2018, revised 418,873 22,489 20,111 (199,718) 261,755
Comprehensive loss:
Net loss (29,191) (29,191)
Other comprehensive loss (1,847) (1,847)
Shares and options issued:
Stock-based compensation expense 268 268
Deferred stock units converted to shares 211 211
Shares issued under Employee Share 27 27
Purchase Plan
Dividends declared (3,469) (3,469)
---
Balance - September 30, 2018 $
419,111 $
22,757 $
18,264 $
(232,378) $
227,754
=== ===
Quarterhill Inc.
Reconciliations of GAAP Net Loss to Adjusted EBITDA
(Unaudited)
(in thousands of United States dollars, except share and per share amounts)
Three months ended September 30, Nine months ended September 30,
---
Adjusted EBITDA 2018 2017 2018 2017
---
Net earnings (loss) $
(9,281) $
26,211 $
(29,191) $
22,591
Adjusted for:
Income tax expense (recovery) (2,125) 9,083 (6,565) 3,025
Foreign exchange loss (gain) 91 239 (74) (472)
Finance expense 78 970 157 984
Finance income (140) (93) (522) (545)
Special charges 2,320 218 2,320 1,512
Amortization of intangibles 6,298 7,336 19,491 18,667
Loss on disposal of intangible 15,190 15,190
Depreciation of property, plant and equipment 372 556 1,155 817
Effect of deleted deferred revenue 8 374 314 641
Increased costs from inventory step-up 444 581
Effect of deleted prepaid expenses (10) (10)
Stock-based compensation 114 273 268 452
Other income (247) (231) (1,153) (300)
---
Adjusted EBITDA $
(2,512) $
60,560 $
(13,800) $
63,133
=== ===
Adjusted EBITDA per share
---
Net earnings (loss) $
(0.08) $
0.22 $
(0.25) $
0.19
Adjusted for:
Income tax expense (recovery) (0.02) 0.08 (0.06) 0.03
Foreign exchange loss (gain)
Finance expense 0.01 0.01
Finance income
Special charges 0.02 0.02 0.01
Amortization of intangibles 0.05 0.06 0.16 0.16
Loss on disposal of intangible 0.13 0.13
Depreciation of property, plant and equipment 0.01 0.01
Effect of deleted deferred revenue 0.01
Increased costs from inventory step-up
Effect of deleted prepaid expenses
Stock-based compensation
Other income (0.01)
---
Adjusted EBITDA per share $
(0.03) $
0.50 $
(0.13) $
0.55
=== ===
Weighted average number of Common Shares
Basic 118,817,466 118,627,249 118,752,303 118,595,713
View original content:http://www.prnewswire.com/news-releases/quarterhill-announces-third-quarter-2018-financial-results-300746319.html
SOURCE Quarterhill Inc.
