Quarterhill Announces Fourth Quarter and Fiscal 2019 Financial Results
-- Fiscal 2019 Revenue increases 90% to $146.7 million
-- Fiscal 2019 Adjusted EBITDA of $40.0 million represents a year-over-year
improvement of more than $50.0 million
-- Subsequent to year-end, in a damages-only re-trial, a jury awarded WiLAN
$85.23 million in damages owed to WiLAN by Apple
KITCHENER, ON, Feb. 27, 2020 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), announces its financial results for the three- and twelve-month periods ended December 31, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Fiscal 2019 Highlights
-- Revenues of $146.7 million, compared to $77.4 million in 2018
-- Recurring revenue of $21.1 million, compared to $22.0 million in 2018
-- Adjusted EBITDA* of $40.0 million, compared to ($10.6) million in 2018
-- Net income of $10.5 million, or $0.09 per basic and diluted common
share, compared to net loss of ($49.1) million, or ($0.41) per basic and
diluted common share, in 2018
-- Cash generated (used) in operations of $7.5 million, compared to ($8.8)
million in 2018
-- Cash and equivalents at December 31, 2019 were $68.6 million, compared
to $67.3 million at December 31, 2018
-- Working capital at December 31, 2019 was $86.5 million, compared to
$64.1 million at December 31, 2018
-- Wi-LAN Inc. ("WiLAN") completed patent license agreements with NVIDIA,
LG, SK hynix Inc and three Canadian telcos, among others
-- IRD achieved record revenue and adjusted EBITDA
-- VIZIYA completed a large enterprise software agreement with a global
integrated energy and chemical company, which led to significant revenue
growth and margin expansion in 2019
-- Subsequent to year-end, in a damages-only re-trial, a jury awarded WiLAN
$85.2 million in damages owed to WiLAN by Apple Inc.
Fourth Quarter 2019 Highlights
-- Revenues of $39.2 million, compared to $25.4 million in Q4 2018
-- Recurring revenue of $5.0 million, compared to $4.7 million in Q4 2018
-- Adjusted EBITDA* of $12.6 million, compared to $3.2 million in Q4 2018
-- Net income of $5.6 million, or $0.05 per basic and diluted common share,
compared to net loss of ($19.9) million, or ($0.17) per basic and
diluted common share, in Q4 2018
-- Cash used in operations was ($1.8) million, compared to $9.1 million
generated from operations in Q4 2018
"2019 saw revenue and adjusted EBITDA growth on both a consolidated basis for Quarterhill as well as with each of our portfolio companies," said John Gillberry, Chairman of Quarterhill. "Adjusted EBITDA in 2019 included a contribution of more than $10 million combined from IRD and VIZIYA, which reflects the potential of our diversification strategy to generate incremental value for the business. Strong results in 2019 resulted in $86.5 million of working capital at year-end (up $22.4 million from the prior year-end) giving us a solid financial foundation from which to pursue our growth activities in 2020 and beyond.
"Our CEO search remains well underway and is proceeding in-line with our expectations. We have reviewed and met with a number of promising candidates and we have another round of meetings set up in early March. Should these interviews proceed as expected, we believe we will then be in a position to short-list our candidate pool and begin discussions that could lead to an announcement in early spring. While timing is important, the absolute most important consideration is finding the right person with the right blend of skills and experience for the role. In the interim, each of our portfolio companies is in good hands and is being run by a talented and experienced CEO who has played a part in generating the positive results we've released today."
"Subsequent to quarter-end, on January 24, we announced that WiLAN won a second jury verdict against Apple in the damages trial held in the United States District Court for the Southern District of California. This was a re-trial for damages only, resulting from the previous related trial verdict rendered in August 2018. In the jury's verdict, WiLAN was awarded $85.2 million in damages. It is important to note that in both jury trials the jury awarded WiLAN the full amount that it argued as being owed by Apple. We are pleased with the jury's decision and believe it is a reflection of our team's advocacy, the strength of our patent portfolio and the systematic and reasonable approach we take in our licensing and litigation activities The trial is now in the customary post-trial process and we will provide updates on any material developments as they occur."
Approval of Eligible Dividend
The Board of Directors has declared an eligible quarterly dividend of CDN $0.0125 per common share payable on April 3, 2020, to shareholders of record on March 20, 2020.
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.
Q4 and Fiscal 2019 Consolidated Financial Review
Consolidated revenues for the three months ended December 31, 2019 ("Q4 2019") were $39.2 million, compared to $25.4 million in Q4 2018, representing growth of 54%. Consolidated revenues for the twelve months ended December 31, 2019 ("FY2019") were $146.7 million, compared to $77.4 million in FY2018, representing growth of 90%. Growth for Q4 2019 and FY2019 was driven by higher revenue from all three businesses - WiLAN, IRD and VIZIYA.
Gross margin for Q4 2019 was $22.0 million, or 56%, compared to $9.6 million, or 38%, in Q4 2018. Gross margin for FY2019 was $72.9 million, or 50%, compared to $18.8 million, or 24%, in FY2018. The Q4 2019 quarter-over-quarter improvement in gross margin was due primarily to better margin performance at WiLAN and IRD, and for FY2019, the year-over-year improvement in gross margin was due to better margin performance from all three businesses - WiLAN, IRD and VIZIYA.
Operating expenses include selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization and impairment losses of intangible assets and special charges. Operating expenses for Q4 2019 were $16.3 million, compared to $30.7 million in Q4 2018. Operating expenses in Q4 2018 included a $16.1 million non-cash impairment loss on goodwill. Excluding impairment loss on goodwill, the year-over-year increase in operating expenses was primarily due to higher SG&A and R&D, offset in part by lower depreciation and amortization of intangible assets. For FY2019, operating expenses were $57.8 million, compared to $77.3 million in FY2018. Excluding the impairment loss on goodwill in Q4 2018, operating expenses decreased year-over-year primarily due to lower depreciation, amortization of intangible assets and special charge expense, offset in part by higher SG&A and R&D.
Adjusted EBITDA for Q4 2019 was $12.6 million compared to $3.2 million in Q4 2018. Adjusted EBITDA for FY2019 was $40.0 million compared to ($10.6) million in FY2018. The increase in adjusted EBITDA for Q4 2019 reflects the better performance at WiLAN and IRD. FY2019 reflects improved operations at all three portfolio companies in 2019, and in particular, at WiLAN.
Net income for Q4 2019 was $5.6 million, or $0.05 per basic and diluted Common Share, compared to net loss of ($19.9) million or ($0.17) per basic and diluted Common Share in Q4 2018. Net income for FY2019 was $10.5 million, or $0.09 per basic and diluted Common Share, compared to a net loss of ($49.1) million, or ($0.41) per basic and diluted Common Share, in FY2018. Of note, net loss for Q4 2018 and FY2018 included a $16.1 million non-cash impairment loss on goodwill. For FY2019, the Company's bottom-line improved primarily due to higher revenues and gross margins at all three portfolio companies.
Cash used in operations in Q4 2019 was ($1.8) million, compared to cash generated from operations of $9.1 million in Q4 2018. Cash used in operations in Q4 2019 reflects working capital adjustments of ($12.4) million primarily related to the timing of collections for certain patent license agreements that were completed in the quarter. A majority of these payments have subsequently been collected in Q1 2020. Cash generated from operations for FY2019 was $7.5 million, compared to cash used in operations of ($8.8) million in FY2018. Cash from operations for FY2019 benefited from the improved financial performance at all three portfolio businesses.
Cash and cash equivalents and short-term investments amounted to $68.6 million at December 31, 2019, compared to $67.3 million at December 31, 2018. Working capital at December 31, 2019 was $86.5 million, compared to $64.1 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 December 31, 2019
Licensing Intelligent Enterprise Corporate Total
Systems Software
Revenues $
23,175 $
13,415 $
2,567
$ $
39,157
Cost of revenues (excluding depreciation and amortization) 8,635 7,984 491 17,110
---
14,540 5,431 2,076 22,047
Selling, general and administrative expenses 1,041 3,151 2,410 1,697 8,299
Research and development expenses 528 960 1,488
Depreciation of property, plant and equipment 12 143 32 4 191
Amortization of intangibles 3,304 952 758 5,014
Impairment losses on intangibles 87 87
Special charges 15 859 392 1,266
---
Results from operations 10,081 657 (2,943) (2,093) 5,702
Finance income (124) (2) (259) (385)
Finance expense (1) # 53 1 53
Foreign exchange (gain) loss (476) 181 (12) 423 116
Other expense (income) 6 # (289) (2) (285)
---
Income (loss) before taxes 10,676 714 (2,930) (2,257) 6,203
Current income tax expense (recovery) 1,823 # (105) (1,035) 683
Deferred income tax (recovery) expense (23) # (52) (178) 139 (114)
---
Income tax expense (recovery) 1,800 (157) (1,213) 139 569
---
Net income (loss) $
8,876 $
871 $
(1,717) $
(2,396) $
5,634
===
Adjusted EBITDA 13,509 2,161 (1,288) (1,766) 12,616
Other reconciling items:
Stock-based compensation 10 20 6 (69) (33)
Dividends from joint venture 389 389
For the twelve months ended December 31, 2019
Licensing Intelligent Enterprise Corporate Total
Systems Software
Revenues $
79,808 $
50,392 $
16,520
$ $
146,720
Cost of revenues (excluding depreciation and amortization) 39,995 32,312 1,526 73,833
---
39,813 18,080 14,994 72,887
Selling, general and administrative expenses 2,547 10,753 7,542 7,880 28,722
Research and development expenses 2,308 2,825 5,133
Depreciation of property, plant and equipment 92 866 138 16 1,112
Amortization of intangibles 13,772 3,791 3,029 20,592
Impairment losses on intangibles 87 87
Special charges 1,851 859 (537) 2,173
---
Results from operations 21,464 362 601 (7,359) 15,068
Finance income (328) (17) (911) (1,256)
Finance expense (1) 390 4 1 394
Foreign exchange (gain) loss (730) 207 23 766 266
Other expense (income) 3 (659) (2) (658)
---
Income (loss) before taxes 22,520 441 576 (7,215) 16,322
Current income tax expense 5,774 202 15 5,991
Deferred income tax expense (recovery) 1,767 (1,212) (639) (113) (197)
---
Income tax expense (recovery) 7,541 (1,010) (624) (113) 5,794
---
Net income (loss) $
14,979 $
1,451 $
1,200 $
(7,102) $
10,528
===
Adjusted EBITDA 37,275 5,507 4,676 (7,467) 39,991
Other reconciling items:
Stock-based compensation 9 99 49 413 570
Dividends from joint venture 389 389
For the three months ended December 31, 2018
Licensing Intelligent Enterprise Corporate Total
Systems Software
Revenues $
10,623 $
12,541 $
2,252
$ $
25,416
Cost of revenues (excluding depreciation and amortization) 7,742 7,805 314 15,861
---
2,881 4,736 1,938 9,555
Selling, general and administrative expenses 599 2,753 1,593 1,087 6,032
Research and development expenses 429 448 877
Depreciation of property, plant and equipment 48 280 30 4 362
Amortization of intangibles 4,434 950 758 6,142
Impairment losses on intangibles 509 509
Impairment loss on goodwill 16,066 16,066
Special charges 2,498 115 (1,942) 671
---
Results from operations (5,207) (15,857) (891) 851 (21,104)
Finance income (33) (2) (402) (437)
Finance expense 1 61 1 63
Foreign exchange loss (gain) 612 (392) 115 (453) (118)
Other (income) expense (58) 77 19
---
(Loss) income before taxes (5,787) (15,466) (1,084) 1,706 (20,631)
Current income tax expense (recovery) 656 (92) (137) 427
Deferred income tax (recovery) expense (4,334) (593) (186) 3,984 (1,129)
---
Income tax (recovery) expense (3,678) (685) (323) 3,984 (702)
---
Net loss $
(2,109) $
(14,781) $
(761) $
(2,278) $
(19,929)
===
Adjusted EBITDA 2,302 1,901 (89) (951) 3,163
Other reconciling items:
Stock-based compensation 20 30 14 136 200
Dividends from joint venture 317 317
For the twelve months ended December 31, 2018
Licensing Intelligent Enterprise Corporate Total
Systems Software
Revenues $
20,811 $
45,051 $
11,539
$ $
77,401
Cost of revenues (excluding depreciation and amortization) 27,539 29,594 1,441 58,574
---
(6,728) 15,457 10,098 18,827
Selling, general and administrative expenses 2,598 10,250 6,723 7,421 26,992
Research and development expenses 2,022 1,549 3,571
Depreciation of property, plant and equipment 257 1,129 121 10 1,517
Amortization of intangibles 18,731 3,873 3,029 25,633
Impairment losses on intangibles 509 509
Impairment loss on goodwill 16,066 16,066
Special charges 2,498 2,435 (1,942) 2,991
---
Results from operations (31,321) (20,318) (1,324) (5,489) (58,452)
Finance income (36) (11) (912) (959)
Finance expense 2 205 11 2 220
Foreign exchange loss (gain) 946 (556) 166 (748) (192)
Other income (942) (192) (1,134)
---
Loss before taxes (32,233) (19,014) (1,309) (3,831) (56,387)
Current income tax expense (recovery) 1,793 66 (782) 1 1,078
Deferred income tax (recovery) expense (11,262) (1,731) (935) 5,583 (8,345)
---
Income tax (recovery) expense (9,469) (1,665) (1,717) 5,584 (7,267)
---
Net (loss) income $
(22,764) $
(17,349) $
408 $
(9,415) $
(49,120)
===
Adjusted EBITDA (9,280) 3,793 2,011 (7,161) (10,637)
Other reconciling items:
Effect of deleted deferred revenue 167 147 314
Stock-based compensation 46 124 38 260 468
Dividends from joint venture 0 317 0 0 317
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/2189235/1F40377701F38205A1A0891EE7E28C0C
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/2189235/1F40377701F38205A1A0891EE7E28C0C
Telephone replay will be available from 1:00 p.m. Eastern Time on February 27, 2020 until 11:59 p.m. Eastern Time on March 5, 2020 at: 1.855.859.2056 (Toll Free) or 1.416.849.0833 (International). The telephone replay requires the passcode 3232057.
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) stock based compensation; (viii) foreign exchange (gain) loss; and (ix) equity in income and dividends from joint ventures. Adjusted EBITDA is a measure used by our management to analyze the performance of 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 AS DETERMINED IN ACCORDANCE WITH U.S. GAAP.
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 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 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 27, 2020 annual information form for the year ended December 31, 2019 (the "AIF"). Copies of the AIF may be obtained at 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 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.
Consolidated Statements of Operations
(in thousands of United States dollars, except share and per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2019 2018 2019 2018
Revenues
License $
22,965 $
10,646 $
87,068 $
23,544
Systems 10,482 9,495 36,108 29,252
Services 687 589 2,490 2,629
Recurring 5,023 4,686 21,054 21,976
---
39,157 25,416 146,720 77,401
Cost of revenues (excluding depreciation and amortization)
License 8,635 7,775 40,012 27,702
Systems 6,216 5,553 22,550 18,945
Services 491 281 1,509 1,276
Recurring 1,768 2,252 9,762 10,651
---
17,110 15,861 73,833 58,574
22,047 9,555 72,887 18,827
Operating expenses
Depreciation of property, plant and equipment 191 362 1,112 1,517
Amortization of intangibles 5,014 6,142 20,592 25,633
Selling, general and administrative expenses 8,299 6,032 28,722 26,992
Research and development expenses 1,488 877 5,133 3,571
Impairment losses on intangible assets 87 509 87 509
Impairment loss on goodwill 16,066 16,066
Special charges 1,266 671 2,173 2,991
---
16,345 30,659 57,819 77,279
Results from operations 5,702 (21,104) 15,068 (58,452)
Finance income (385) (437) (1,256) (959)
Finance expense 53 63 394 220
Foreign exchange loss (gain) 116 (118) 266 (192)
Other (income) expense (285) 19 (658) (1,134)
---
Income (loss) before taxes 6,203 (20,631) 16,322 (56,387)
Current income tax expense 683 427 5,991 1,078
Deferred income tax recovery (114) (1,129) (197) (8,345)
---
Income tax expense (recovery) 569 (702) 5,794 (7,267)
---
Net income (loss) $
5,634 $
(19,929) $
10,528 $
(49,120)
=== ===
Net income (loss) per share
Basic $
0.05 $
(0.17) $
0.09 $
(0.41)
Diluted $
0.05 $
(0.17) $
0.09 $
(0.41)
Weighted average number of common shares
Basic 118,817,466 118,817,466 118,817,466 118,768,728
Diluted 118,817,466 118,817,466 118,817,466 118,768,728
Quarterhill Inc.
Consolidated Statements of Comprehensive Income (Loss)
(in thousands of United States dollars)
Three months ended Twelve months ended
December 31, December 31,
2019 2018 2019 2018
Net income (loss) $
5,634 $
(19,929) $
10,528 $
(49,120)
Other comprehensive income (loss):
Foreign currency translation adjustment 343 (2,021) 554 (3,868)
---
Comprehensive income (loss) $
5,977 $
(21,950) $
11,082 $
(52,988)
=== ===
Quarterhill Inc.
Consolidated Balance Sheets
(in thousands of United States dollars)
As at December 31, 2019 December 31, 2018
--- ---
Current assets
Cash and cash equivalents $
67,422 $
63,929
Short-term investments 1,189 1,139
Restricted short-term investments 2,200
Accounts receivable (net of allowance for
doubtful accounts) 32,936 10,812
Other current assets 83 91
Unbilled revenue 6,879 3,990
Income taxes receivable 105 198
Inventories (net of obsolescence) 6,576 5,960
Prepaid expenses and deposits 1,720 2,332
---
116,910 90,651
Non-current assets
Accounts receivable 2,951 415
Right-of-use assets 3,570
Property, plant and equipment 2,168 2,655
Intangible assets 68,699 87,425
Investment in joint venture 4,015 3,822
Deferred income tax assets 25,497 27,141
Goodwill 25,303 25,303
---
132,203 146,761
TOTAL ASSETS $
249,113 $
237,412
=== ===
Liabilities
Current liabilities
Bank indebtedness $
3,089 $
2,598
Accounts payable and accrued liabilities 19,762 18,103
Income taxes payable 156
Current portion of right-of-use lease
liabilities 766
Current portion of deferred revenue 6,628 4,670
Current portion of long-term debt 45 299
Contingent consideration 929
---
30,446 26,599
Non-current liabilities
Deferred revenue 1,161 1,435
Right-of-use lease liabilities 2,724
Long-term debt 208 173
Deferred income tax liabilities 2,530 4,337
---
6,623 5,945
TOTAL LIABILITIES 37,069 32,544
---
Shareholders' equity
Capital stock 419,111 419,111
Additional paid-in capital 23,527 22,957
Accumulated other comprehensive income 16,797 16,243
Deficit (247,391) (253,443)
---
212,044 204,868
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $
249,113 $
237,412
--- ---
Quarterhill Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of United States dollars)
Three months ended Twelve months ended
December 31, December 31,
2019 2018 2019 2018
Cash generated from (used in):
Operations
Net income (loss) $
5,634 $
(19,929) $
10,528 $
(49,120)
Non-cash items
Stock-based compensation (33) 200 570 468
Depreciation and amortization 5,205 6,503 21,704 27,150
Foreign exchange (gain) loss (24) 188 (85) (942)
Equity (earnings) loss from joint venture (289) (58) (659) 299
Loss on disposal of intangibles 162 162
Impairment losses on intangibles 87 509 87 509
Impairment losses on goodwill 16,066 16,066
Contingent consideration adjustment (3,545) (929) (3,545)
(Gain) loss on disposal of assets (16) 551 (24)
Deferred income tax recovery (114) (1,129) (197) (8,345)
Embedded derivatives (11) (75) 8 (78)
Changes in non-cash working capital balances (12,391) 10,414 (24,192) 8,763
---
Cash generated (used in) from operations (1,790) 9,144 7,548 (8,799)
Financing
Dividends paid (1,128) (1,136) (4,476) (4,605)
Bank indebtedness (664) (3,076) 491 (970)
Repayment of long-term debt 42 48 (219) (44)
Common shares issued for cash from Employee Share 27
Purchase Plan
---
Cash used in financing (1,750) (4,164) (4,204) (5,592)
Investing
Dividends received from joint venture 389 317 389 317
Proceeds from sale of restricted short-term investments 2,100 1,300 2,200 1,300
Proceeds from sale of property, plant and equipment 10 33 54
Purchase of property and equipment (393) (156) (1,123) (575)
Repayment of patent finance obligations (4,167)
Purchase of intangibles (4) (19) (1,429) (133)
---
Cash from (used in) investing 2,102 1,442 70 (3,204)
Foreign exchange gain (loss) on cash held in foreign currency 14 (191) 79 (294)
---
Net (decrease) increase in cash and cash equivalents (1,424) 6,231 3,493 (17,889)
Cash and cash equivalents, beginning of period 68,846 57,698 63,929 81,818
---
Cash and cash equivalents, end of period $
67,422 $
63,929 $
67,422 $
63,929
--- ---
Consolidated Statements of Shareholders' Equity
(in thousands of United States dollars)
Capital Additional Accumulated Deficit Total
Stock Paid-in Equity
Capital Other
Comprehensive
Income
Balance - January 1, 2018 $
418,873 $
22,489 $
20,111 $
(199,718) $
261,755
Comprehensive loss:
Net loss (49,120) (49,120)
Other comprehensive loss (3,868) (3,868)
Shares and options issued:
Stock-based compensation expense 468 468
Conversion of deferred stock units to common shares 211 211
Sale of shares under Employee Share 27 27
Purchase Plan
Dividends declared (4,605) (4,605)
---
Balance - December 31, 2018 $
419,111 $
22,957 $
16,243 $
(253,443) $
204,868
===
Balance - January 1, 2019 419,111 22,957 16,243 (253,443) 204,868
Comprehensive income:
Net income 10,528 10,528
Other comprehensive income 554 554
Options issued:
Stock-based compensation expense 570 570
Dividends declared (4,476) (4,476)
---
Balance - December 31, 2019 $
419,111 $
23,527 $
16,797 $
(247,391) $
212,044
---
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 twelve months ended
December 31, December 31,
---
Adjusted EBITDA 2019 2018 2019 2018
---
Net income (loss) $
5,634 $
(19,929) $
10,528 $
(49,120)
Adjusted for:
Income tax expense (recovery) 569 (702) 5,794 (7,267)
Foreign exchange loss (gain) 116 (118) 266 (192)
Finance expense 53 63 394 220
Finance income (385) (437) (1,256) (959)
Special charges 1,266 671 2,173 2,991
Amortization of intangibles 5,014 6,142 20,592 25,633
Impairment losses on intangible assets 87 509 87 509
Impairment loss on goodwill 16,066 16,066
Depreciation of property, plant and equipment 191 362 1,112 1,517
Effect of deleted deferred revenue 314
Stock based compensation (33) 200 570 468
Dividend from joint venture 389 317 389 317
Other income (285) 19 (658) (1,134)
---
Adjusted EBITDA $
12,616 $
3,163 $
39,991 $
(10,637)
=== ===
For the three months ended For the twelve months ended
December 31, December 31,
---
Adjusted EBITDA per share 2019 2018 2019 2018
---
Net income (loss) $
0.05 $
(0.17) $
0.09 $
(0.42)
Adjusted for:
Income tax expense (recovery) (0.01) 0.05 (0.07)
Foreign exchange loss (gain)
Finance expense
Finance income (0.01)
Special charges 0.01 0.01 0.02 0.03
Amortization of intangibles 0.05 0.05 0.18 0.21
Impairment losses on intangible assets
Impairment loss on goodwill 0.14 0.14
Depreciation of property, plant and equipment 0.01
Effect of deleted deferred revenue
Stock based compensation
Dividend from joint venture
Other income
---
Adjusted EBITDA per share $
0.11 $
0.02 $
0.34 $
(0.11)
--- ---
View original content:http://www.prnewswire.com/news-releases/quarterhill-announces-fourth-quarter-and-fiscal-2019-financial-results-301012401.html
SOURCE Quarterhill Inc.
