Quarterhill Announces Third Quarter 2020 Financial Results
KITCHENER, ON, Nov. 5, 2020 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), announces its financial results for the three- and nine-month periods ended September 30, 2020. The Company historically prepared its consolidated financial statements in accordance with U.S. GAAP and in U.S. dollars. Effective January 1, 2020, the Company has adopted IFRS and the Canadian dollar as its reporting currency. The Company has consistently applied the same accounting policies in its opening IFRS statement of financial position at January 1, 2019, and throughout all periods presented as if these policies had always been in effect. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Third Quarter 2020 Financial Highlights
-- Revenue was $88.0 million, exceeding the high-end of the expected
$80.0-$87.0 million range previously provided
-- Adjusted EBITDA(1) was $39.0 million, exceeding the high-end of the
expected $32.0-$36.0 million range previously provided
-- Net income was $24.5 million, or $0.21 per basic and diluted common
share
-- Cash generated from operations was $4.5 million
-- Cash, cash equivalents, and short-term investments were $129.7 million
at September 30, 2020. Cash and equivalents declined in Q3 due primarily
to working capital adjustments and the timing of collections for certain
license agreements completed near quarter-end. Payment on these
agreements was received subsequent to quarter-end
-- Working capital was $180.3 million at September 30, 2020
Third Quarter 2020 Operational Highlights
-- Appointed John Rim as Chief Financial Officer
-- Completed a Substantial Issuer Bid, returning $5.8 million to
shareholders via the purchase of 2.7 million common shares at a purchase
price of $2.15 per share
-- Launched a Normal Course Issuer Bid to acquire up to 10%, or 11.3
million, of the Company's common shares in the public float. Acquired
1.6 million Common Shares at an average price of $1.89 per share,
totaling approximately $3.0 million, in the quarter
-- Strong licensing activity at WiLAN included new agreements with Intel
and Kingston Technology Corporation
-- New orders at IRD included the State of New York and, internationally,
in Ukraine and Paraguay
"Q3 was a busy and successful period for Quarterhill and its portfolio companies. On October 8, we announced preliminary Q3 revenue of $80-87 million and Adjusted EBITDA of $32-36 million and we are pleased to have come in above the high-end of the range for both metrics," said Paul Hill, President and CEO of Quarterhill. "These strong results were driven by a record quarter at IRD and by substantial licensing activity at WiLAN, which had its best quarter in three years. At the same time, Quarterhill delivered on its promise to return additional capital to shareholders via completion of our substantial issuer bid and the commencement of our normal course issuer bid. Q3 results, combined with our already strong balance sheet, are enabling us to consider a broad set of M&A opportunities."
Approval of Eligible Dividend
The Board of Directors has declared an eligible quarterly dividend of $0.0125 per common share payable on January 11, 2021, to shareholders of record on December 11, 2020.
Q3 2020 and Year-to-date Consolidated Financial Review
Financial statements for the three- and nine-month periods ended September 30, 2020 and for the respective comparison periods, have been prepared to reflect continuing operations and therefore exclude results during those periods from VIZIYA, which was sold by Quarterhill on May 15, 2020. The year-to-date operating results from VIZIYA, up to the date of sale on May 15, 2020, are reported as net income (loss) from discontinued operations in accordance with IFRS 5.
Consolidated revenues for the three-month period ended September 30, 2020 ("Q3 2020") were $88.0 million, compared to $21.9 million in Q3 2019. Consolidated revenues for the nine-month period ended September 30, 2020 ("YTD 2020") were $126.4 million, compared to $124.6 million in the same period last year. The majority of WiLAN's licenses are one-time in nature and significant fluctuations in revenue, gross margin, and Adjusted EBITDA can result when the volume or dollar value of licenses changes from one period to the next. Revenue was higher in the Q3 2020 and YTD 2020 periods due primarily to the closure of a greater volume, and value, of licensing contracts in 2020 than in the prior year periods.
Recurring revenue for the Q3 2020 and YTD 2020 periods was $5.4 million and $14.9 million, compared to $4.5 million and $16.2 million in the same periods last year. The vast majority of recurring revenue is generated by IRD. Certain revenues characterized as recurring have a timing component to them and are recognized when the related work is completed. As such, the decrease in recurring revenue for the YTD 2020 period is primarily a timing-based issue and does not reflect lower renewal or retention rates.
Gross margin for the Q3 2020 and YTD 2020 periods was 51.8% and 45.2%, compared to 11.4% and 40.6% in the same periods last year. Gross margin was higher in Q3 2020 and on a year-to-date 2020 basis primarily due to lower cost of revenue on licenses entered into by WiLAN as well as higher profitability on certain projects entered into by IRD in Q3 2020.
Operating expenses include selling, general and administrative costs ("SG&A"), research and development costs ("R&D"), depreciation and amortization of intangible assets, impairment loss on intangibles and special charges. For Q3 2020, Quarterhill had no special charges compared to a special charge recovery of $15.3 million in Q3 2019. YTD 2020, special charges were $0.9 million compared to $1.4 million in the same period last year. Excluding special charges, operating expenses for the Q3 2020 and YTD 2020 periods decreased by 9.5% and 11.8%, respectively. This reflects lower amortization of intangibles as well as lower SG&A and R&D costs, which was primarily due to reduced operating costs.
Adjusted EBITDA for the Q3 2020 and YTD 2020 periods was $39.0 million and $37.3 million, compared to ($4.4) million and $29.8 million in the same periods last year. The increase in Adjusted EBITDA was driven by strong revenue from both businesses, lower cost of revenues and ongoing cost containment.
Net income for Q3 2020 was $24.5 million, or $0.21 per basic and diluted common share, compared to net income of $12.3 million, or $0.10 per basic and diluted common share, in Q3 2019. Net income for the YTD 2020 period was $28.9 million, or $0.25 per basic common share and $0.24 per diluted common share, compared to net income of $6.3 million, or $0.05 per basic and diluted common share, in the same period last year. Net income in Q3 2020 increased due to operational strength with both portfolio companies; for the YTD 2020 period, net income increased due to higher revenue, lower costs and the gain on the sale of VIZIYA in Q2 2020.
Cash generated from (used in) continuing operations for the Q3 2020 and YTD 2020 periods was $4.5 million and $9.9 million, compared to ($15.6) million and $13.5 million in the same periods last year. Cash and cash equivalents and short-term investments was $129.7 million at September 30, 2020, compared to $89.4 million at December 31, 2019. Working capital at September 30, 2020, was $180.3 million compared to $112.7 million at December 31, 2019.
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://produceredition.webcasts.com/starthere.jsp?ei=1388512&tp_key=4c7abf2b0a
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 365 days at: https://produceredition.webcasts.com/starthere.jsp?ei=1388512&tp_key=4c7abf2b0a
Telephone replay will be available from 1:00 p.m. Eastern Daylight Time on November 5, 2020 until 11:59 p.m. Eastern Daylight Time on November 19, 2020 at: 1.855.859.2056 (Toll Free North America) or 1.416.849.0833 (International).The telephone replay requires the passcode 8577096.
The table below highlights financial performance for the Company's Licensing and Intelligent Systems 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.
Segmented statements of income (loss) for the three- and nine-month periods ended September 30, 2020 and 2019 are included below:
For the three months ended September 30, 2020
CONTINUING OPERATIONS Licensing Intelligent Corporate Total
Systems
Revenues
License $
67,192
$
$ $
67,192
Systems 15,380 15,380
Recurring 71 5,354 5,425
---
67,263 20,734 87,997
Direct cost of
revenues 32,118 10,278 42,396
---
Gross profit 35,145 10,456 45,601
Depreciation of
right-of-use
assets 61 181 15 257
Depreciation and
amortization 3,449 1,522 5 4,976
Selling, general and
administrative
expenses 862 2,607 2,955 6,424
Research and
development expenses 390 390
Impairment losses of
intangible assets 62 62
Results from
operations 30,711 5,756 (2,975) 33,492
Finance (income)
expense, net (18) 110 (85) 7
Foreign exchange
(gain) loss (280) 305 47 72
Other income (383) (383)
---
Income (loss) before
taxes 31,009 5,724 (2,937) 33,796
Income tax expense 7,608 1,236 424 9,268
---
Net income (loss)
from continuing
operations $
23,401 $
4,488 $
(3,361) $
24,528
===
Adjusted EBITDA $
34,353 $
7,477 $
(2,795) $
39,035
===
For the Nine months ended September 30, 2020
CONTINUING OPERATIONS Licensing Intelligent Corporate Total
Systems
Revenues
License $
77,009
$
$ $
77,009
Systems 34,521 34,521
Recurring 774 14,130 14,904
---
77,783 48,651 126,434
Direct cost of
revenues 40,949 28,290 69,239
---
Gross profit 36,834 20,361 57,195
Depreciation of
right-of-use
assets 185 508 45 738
Depreciation and
amortization 10,552 4,469 16 15,037
Selling, general and
administrative
expenses 2,586 8,424 7,535 18,545
Research and
development expenses 1,814 1,814
Impairment losses of
intangible assets 295 295
Special charges 659 213 872
---
Results from
operations 23,216 4,487 (7,809) 19,894
Finance (income)
expense, net (62) 228 (327) (161)
Foreign exchange loss
(gain) 1,316 (624) (1,205) (513)
Other income (1,192) (1,192)
---
Income (loss) before
taxes 21,962 6,075 (6,277) 21,760
Income tax expense 2,879 730 3,522 7,131
---
Net income (loss)
from continuing
operations $
19,083 $
5,345 $
(9,799) $
14,629
===
Adjusted EBITDA $
34,417 $
10,186 $
(7,323) $
37,280
===
For the three months ended September 30, 2019
CONTINUING OPERATIONS Licensing Intelligent Corporate Total
Systems
Revenues
License $
4,833
$
$ $
4,833
Systems 12,586 12,586
Recurring 139 4,385 4,524
---
$
4,972 $
16,971
$ $
21,943
Direct cost of
revenues 8,694 10,752 19,446
---
Gross profit (3,722) 6,219 2,497
Depreciation of
right-of-use
assets 98 177 15 290
Depreciation and
amortization 4,533 1,429 5 5,967
Selling, general and
administrative
expenses 559 3,121 2,729 6,409
Research and
development expenses 712 712
Special charges 9 (15,286) (15,277)
---
Results from
operations (8,921) 780 12,537 4,396
Finance (income)
expense, net (166) 101 (290) (355)
Foreign exchange loss
(gain) 151 (292) (69) (210)
Other income (157) (157)
---
(Loss) income before
taxes (8,906) 1,128 12,896 5,118
Income tax (recovery)
expense (2,725) 65 430 (2,230)
---
Net (loss) income
from continuing
operations $
(6,181) $
1,063 $
12,466 $
7,348
===
Adjusted EBITDA (4,269) 2,415 (2,532) (4,386)
===
For the Nine months ended September 30, 2019
CONTINUING OPERATIONS Licensing Intelligent Corporate Total
Systems
Revenues
License $
74,360
$
$ $
74,360
Systems 34,069 34,069
Recurring 1,102 15,096 16,198
---
$
75,462 $
49,165
$ $
124,627
Direct cost of
revenues 41,732 32,348 74,080
---
Gross profit 33,730 16,817 50,547
Depreciation of
right-of-use
assets 479 532 45 1,056
Depreciation and
amortization 14,022 4,737 15 18,774
Selling, general and
administrative
expenses 1,542 9,516 8,170 19,228
Research and
development expenses 2,229 2,229
Special charges 2,444 (1,042) 1,402
---
Results from
operations 15,243 (197) (7,188) 7,858
Finance (income)
expense, net (228) 536 (856) (548)
Foreign exchange
(gain) loss (340) 37 458 155
Other income (4) (492) (496)
---
Income (loss) before
taxes 15,815 (278) (6,790) 8,747
Income tax expense
(recovery) 7,652 (1,013) (347) 6,292
---
Net income (loss)
from continuing
operations $
8,163 $
735 $
(6,443) $
2,455
===
Adjusted EBITDA $
32,187 $
5,176 $
(7,529) $
29,834
===
()
(1)Non-IFRS Disclosure
Quarterhill has historically used a set of metrics when evaluating our operational and financial performance. We continually monitor, evaluate and update these metrics as required to ensure they provide information considered most useful, in the opinion of our management, to any decision-making based on Quarterhill's performance. This section defines, quantifies and analyzes the key performance indicators used by our management and referred to elsewhere in this press release, which are not recognized under IFRS and have no standardized meaning prescribed by IFRS. These indicators and measures are therefore unlikely to be comparable to similar measures presented by other issuers.
In this press release, we use the Non-IFRS 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 right-of-use assets and property, plant and equipment; (vi) effects of deleted deferred revenue; (vii) stock-based compensation; (viii) foreign exchange (gain) loss; and (ix) equity in earnings and dividends from joint ventures. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis and in our operating segments. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill and our operating segments. Adjusted EBITDA should not be interpreted as an alternative to net income and cash flows from operations as determined in accordance with IFRS or as a measure of liquidity.
About Quarterhill
Quarterhill is a growth-oriented company in the Intellectual Property and Intelligent Transportation System (ITS) industries. Our goal is to pursue an investment strategy that capitalizes on attractive market trends in both ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com
Forward-looking Information
This news release contains forward-looking statements regarding Quarterhill and its business. Forward-looking statements are based on estimates and assumptions made by Quarterhill in light of its experience and its perception of historical trends, current conditions, expected future developments and the expected effects of new business strategies, as well as other factors that Quarterhill believes are appropriate in the circumstances. The forward-looking events and circumstances discussed herein may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Quarterhill, including: potential risks and uncertainties relating to the ultimate geographic spread of the novel coronavirus ("COVID-19"); the severity of the disease; the duration of the COVID-19 outbreak; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and financial markets and any resulting impact on Quarterhill and/or its business. Other 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, whether as a result of new information, future events or otherwise, except as required by law.
Quarterhill Inc.
Interim Condensed Consolidated Statements of Income and Comprehensive Income and (Loss)
(Unaudited)
(in thousands of Canadian dollars, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
---
2020 2019 2020 2019
---
Revenues
License $
67,192 $
4,833 $
77,009 $
74,360
Systems 15,380 12,586 34,521 34,069
Recurring 5,425 4,524 14,904 16,198
--- ---
87,997 21,943 126,434 124,627
---
Direct cost of revenues
License 32,064 8,694 40,867 41,732
Systems 8,202 7,497 20,776 21,721
Recurring 2,130 3,255 7,596 10,627
--- ---
42,396 19,446 69,239 74,080
---
Gross profit 45,601 2,497 57,195 50,547
Operating expenses
Depreciation of right-of-
use assets 257 290 738 1,056
Depreciation of property,
plant and equipment 250 188 721 1,086
Amortization of intangibles 4,726 5,779 14,316 17,688
Selling, general and
administrative expenses 6,424 6,409 18,545 19,228
Research and development
expenses 390 712 1,814 2,229
Impairment losses on
intangibles 62 295
Special charges - (15,277) 872 1,402
--- ---
12,109 (1,899) 37,301 42,689
---
Results from operations 33,492 4,396 19,894 7,858
Finance income (146) (499) (528) (1,157)
Finance expense 153 144 367 609
Foreign exchange loss (gain) 72 (210) (513) 155
Other income (383) (157) (1,192) (496)
--- ---
Income before taxes 33,796 5,118 21,760 8,747
Current income tax expense 325 342 1,669 5,797
Deferred income tax expense
(recovery) 8,943 (2,572) 5,462 495
--- ---
Income tax expense
(recovery) 9,268 (2,230) 7,131 6,292
--- ---
Net income from continuing
operations $
24,528 $
7,348 $
14,629 $
2,455
Net income from discontinued
operations - 4,927 14,255 3,835
--- ---
Net income $
24,528 $
12,275 $
28,884 $
6,290
=== ===
Other comprehensive income (loss) that may be reclassified subsequently to net income:
Foreign currency translation
adjustment (4,693) 1,661 5,182 (7,208)
--- ---
Comprehensive income (loss) $19,835 $13,936 $34,066 $(918)
=== ===
Net income per share
From continuing operations $0.21 $0.06 0.13 0.02
From discontinued operations
$ - $0.04 0.12 0.03
--- ---
Net income per share -Basic $0.21 $0.10 0.25 0.05
=== ===
From continuing operations $0.21 $0.06 0.12 0.02
From discontinued operations
$ - $0.04 0.12 0.03
--- ---
Net income per share -
Diluted $0.21 $0.10 0.24 0.05
=== ===
Quarterhill Inc.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
(in thousands of Canadian dollars)
As at September 30, December 31, January 1,
2020 2019 2019
--- ---
Current assets
Cash and cash equivalents $
124,130 $
87,870 $
87,029
Short-term investments 5,549 1,550 1,551
Restricted short-term
investments - 2,995
Accounts receivable (net of
allowance for doubtful
accounts) 72,043 42,925 14,719
Other current assets 145 108 124
Unbilled revenue 16,059 8,965 5,432
Income taxes receivable 220 137 270
Inventories (net of
obsolescence) 10,241 8,570 8,114
Prepaid expenses and deposits 3,412 2,242 2,927
--- ---
231,799 152,367 123,161
---
Non-current assets
Accounts receivable 667 3,846 565
Right-of-use assets 3,622 4,502 3,972
Property, plant and equipment 2,977 2,826 3,614
Intangible assets 64,867 89,534 119,015
Investment in joint venture 6,701 5,233 5,203
Deferred income tax assets 27,494 33,270 36,948
Goodwill 16,910 32,977 34,446
--- ---
123,238 172,188 203,763
---
TOTAL ASSETS $
355,037 $
324,555 $
326,924
=== ===
Liabilities
Current liabilities
Bank indebtedness $
3,214 $
4,026 $
3,537
Accounts payable and accrued
liabilities 40,198 25,755 24,644
Dividends payable 1,498
Income taxes payable 344 203
Current portion of lease
liabilities 886 998 1,120
Contingent liabilities - 1,265
Current portion of deferred
revenue 5,339 8,638 6,357
Current portion of long-term
debt 43 59 407
--- ---
51,522 39,679 37,330
---
Non-current liabilities
Deferred revenue 3,103 1,513 1,954
Long-term lease liabilities 2,746 3,550 2,604
Long-term debt 268 271 236
Deferred income tax
liabilities 368 3,297 5,905
--- ---
6,485 8,631 10,699
---
TOTAL LIABILITIES $
58,007 $
48,310 $
48,029
=== ===
Shareholders' equity
Capital stock $
561,269 $
570,553 $
570,553
Contributed surplus 32,455 32,011 31,252
Accumulated other
comprehensive income 16,118 10,936 22,112
Deficit (312,812) (337,255) (345,022)
--- ---
297,030 276,245 278,895
---
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $
355,037 $
324,555 $
326,924
=== ===
Quarterhill Inc.
Condensed Consolidated Interim
Statements of Cash Flows
(Unaudited)
(in thousands of Canadian
dollars)
Three months ended Nine months ended
September 30, September 30,
2020 2019 2020 2019
Cash generated from (used
in) Operations
Net income from continuing
operations $
24,528 $
7,348 $
14,629 $
2,455
Non-cash items
Stock-based compensation
expense 248 238 444 744
Depreciation of right-of-
use assets 257 290 738 1,056
Interest expense on lease
liabilities 59 67 171 170
Depreciation and
amortization 4,976 5,967 15,037 18,774
Foreign exchange (gain)
loss (38) 46 (232) (81)
Equity in earnings from
joint venture (383) (157) (1,192) (496)
Impairment losses on
intangibles 62 295
Loss (gain) on disposal of
assets 14 (26) 4 759
Deferred income tax expense
(recovery) 8,943 (2,572) 5,462 495
Long-term accounts
receivable (85)
Embedded derivatives 69 (106) (32) 26
Contingent consideration
adjustment (15,286) (1,042)
Changes in non-cash
working capital balances (34,231) (11,425) (25,414) (9,239)
---
Cash generated from (used
in) continuing operations 4,504 (15,616) 9,910 13,536
Net cash flows attributable
to discontinuing
operations (439) (4,349) 430
---
Net cash generated from
(used in) operating
activities 4,504 (16,055) 5,561 13,966
Financing
Dividends paid (1,443) (1,475) (2,924) (4,450)
Bank indebtedness (3,596) (1,005) (612) 1,561
Payment of lease
liabilities (274) (318) (860) (1,189)
Repayment of long-term
debt (8) (25) (128) (325)
Exercise of stock options 14
Repurchase of shares for
cancellation (9,322) (9,322)
Common shares issued from
Performance Stock Units 24
---
Cash used in continuing
operations (14,643) (2,823) (13,808) (4,403)
Net cash flows attributable
to discontinuing
operations (8) (27)
---
Net cash used in financing
activities (14,643) (2,831) (13,808) (4,430)
Investing
Proceeds from disposition
of a subsidiary 49,400
Cash sold on disposition of
a subsidiary (1,825)
Purchase of short-term
investments (4,054) (4,054)
Proceeds from sale of
restricted short-term
investments 132 132
Proceeds from sale of
property, plant and
equipment 16 30 32 30
Purchase of property and
equipment (309) (312) (1,196) (811)
Purchase of intangibles (30) (1,759) (55) (1,884)
---
Cash (used in) generated
from continuing operations (4,377) (1,909) 42,302 (2,533)
Net cash flows attributable
to discontinuing
operations (37) (81) (160)
---
Net cash (used in)
generated from investing
activities (4,377) (1,946) 42,221 (2,693)
Foreign exchange (loss)
gain on cash held in
foreign currency (2,869) 900 2,286 (2,721)
---
Net (decrease) increase in
cash and cash equivalents (17,385) (19,932) 36,260 4,122
Cash and cash equivalents,
beginning of period 141,515 111,083 87,870 87,029
---
Cash and cash equivalents,
end of period $
124,130 $
91,151 124,130 91,151
===
Quarterhill Inc.
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity
For the nine months ended September 30, 2020 and 2019
(In thousands of Canadian dollars)
Capital Contributed Accumulated Deficit Total
Stock Surplus Other Equity
Comprehensive
Income
January 1, 2019 $
570,553 $
31,252 $
22,112 $
(345,022) $
278,895
Net income - 6,290 6,290
Other comprehensive
loss - (7,208) (7,208)
Stock-based
compensation expense - 744 744
Dividends declared - (4,450) (4,450)
--- ---
September 30, 2019 570,553 31,996 14,904 (343,182) 274,271
=== ===
January 1, 2020 $
570,553 $
32,011 $
10,936 $
(337,255) $
276,245
Net income - 28,884 28,884
Repurchase of shares
for cancellation (9,322) (9,322)
Other comprehensive
income - 5,182 5,182
Stock-based
compensation expense - 444 444
Exercise of options 14 14
Common shares issued
from performance
stock units 24 24
Dividends declared - (4,441) (4,441)
--- ---
September 30, 2020 561,269 32,455 16,118 (312,812) 297,030
=== ===
Quarterhill Inc.
Reconciliations of Net income to Adjusted EBITDA
(Unaudited)
(in thousands of Canadian dollars, except share and per share amounts)
Three months ended September 30,
2020 2019
---
$ Per Share
$ Per Share
---
Net income from
continuing operations $
24,528 $
0.21 $
7,348 $
0.06
Adjusted for:
Income tax expense
(recovery) 9,268 0.08 (2,230) (0.02)
Foreign exchange loss
(gain) 72 (210)
Finance expense 153 144
Finance income (146) (499)
Special charges - (15,277) (0.13)
Impairment losses on
intangible assets 62
Amortization of
intangibles 4,726 0.05 5,779 0.05
Depreciation of
property, plant and
equipment 250 188
Depreciation of right-
of-use assets 257 290
Stock based
compensation expense 248 238
Other income (383) (157)
--- ---
Adjusted EBITDA $
39,035 $
0.34 $
(4,386) $
(0.04)
=== ===
Weighted average number of Common
Shares
Basic 115,990,313 118,817,466
Quarterhill Inc.
Reconciliations of Net income to Adjusted EBITDA
(Unaudited)
(in thousands of Canadian dollars, except share and per share amounts)
Nine months ended September 30, 2020
2020 2019
---
$ Per Share
$ Per Share
---
Net income from
continuing operations $
14,629 $
0.13 $
2,455 $
0.02
Adjusted for:
Income tax expense 7,131 0.06 6,292 0.05
Foreign exchange (gain)
loss (513) 155
Finance expense 367 609 0.01
Finance income (528) (1,157) (0.01)
Special charges 872 0.01 1,402 0.01
Impairment losses on
intangible assets 295
Amortization of
intangibles 14,316 0.12 17,688 0.15
Depreciation of
property, plant and
equipment 721 1,086 0.01
Depreciation of right-
of-use assets 738 0.01 1,056 0.01
Stock based
compensation expense 444 744 0.01
Other income (1,192) (0.01) (496) (0.01)
--- ---
Adjusted EBITDA $
37,280 $
0.32 $
29,834 $
0.25
=== ===
Weighted average number of Common
Shares
Basic 117,884,124 118,817,466
View original content:http://www.prnewswire.com/news-releases/quarterhill-announces-third-quarter-2020-financial-results-301166992.html
SOURCE Quarterhill Inc.
