Latest news with #Quarterhill
Cision Canada
3 days ago
- Business
- Cision Canada
Quarterhill Appoints David Charron as Chief Financial Officer
Experienced public technology company CFO brings deep capital markets and M&A expertise to support Quarterhill's next growth phase TORONTO, June 6, 2025 /CNW/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), today announced the appointment of as Chief Financial Officer ("CFO"), effective June 17, 2025. Mr. Charron brings more than 15 years of public company CFO experience and a proven track record of driving growth and operational excellence in global technology businesses. "We are pleased to welcome David to our leadership team at this pivotal moment in Quarterhill's evolution," said Chuck Myers, Chief Executive Officer at Quarterhill. "We have made important progress in our turnaround efforts over the past 18 months and are now in the late innings of this transformation. David's extensive public technology company experience, governance expertise, and proven M&A track record make him the ideal leader to help us execute on our next phase of growth." Mr. Charron most recently served as CFO at Maropost Inc., a global private SaaS company. Prior to that, he spent three years as CFO of Tiny Ltd./WeCommerce Holdings Inc., a publicly traded technology holding company. His public company experience includes four years as CFO of Terago Networks Inc., during which time he also served as Interim CEO for six months, as well as at Redknee Solutions Inc., where he served as CFO and Corporate Secretary for eight years. At Redknee, Mr. Charron successfully closed and integrated five acquisitions, while completing $240 million in equity and credit financings. Mr. Charron currently serves as Board Director and Chair of the Audit Committee for NowVertical Group, a publicly traded AI-focused data services company. He holds a Chartered Director designation from The Directors College at McMaster University, is a Chartered Professional Accountant and Certified Management Accountant, and earned his MBA from McMaster University's DeGroote School of Business and Bachelor of Engineering (Electrical) from McMaster University. Added Mr. Myers: "I'd also like to thank Morgan Demkey for his dedicated service as Interim CFO during this transition period. Morgan will return to his full-time role as Vice President of Operations for our Safety & Enforcement unit, where he has consistently delivered strong results." About Quarterhill Quarterhill is a leading provider of tolling, safety and enforcement, and logistics solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within 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: Forward-looking Information This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", "expect" and similar expressions. Specifically, this news release contains forward-looking statements relating to, but not limited to: the Company's turnaround efforts and results thereof; and the success and impact of the Company's execution of its next phase of growth. Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; force majeure risks; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. These foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's most recent annual information form and other public documents on file with the Canadian Securities regulatory authorities on The forward-looking statements represent the Company's views as at the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statement. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
Yahoo
18-05-2025
- Business
- Yahoo
Quarterhill Inc. (TSE:QTRH) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Quarterhill Inc. (TSE:QTRH) just released its latest first-quarter report and things are not looking great. Revenues missed expectations somewhat, coming in at US$33m, but statutory earnings fell catastrophically short, with a loss of US$0.068 some 128% larger than what the analysts had predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've discovered 1 warning sign about Quarterhill. View them for free. Following the latest results, Quarterhill's three analysts are now forecasting revenues of US$159.6m in 2025. This would be a reasonable 4.8% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$0.13. Before this earnings announcement, the analysts had been modelling revenues of US$169.1m and losses of US$0.045 per share in 2025. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. See our latest analysis for Quarterhill The consensus price target fell 6.4% to CA$1.95, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Quarterhill, with the most bullish analyst valuing it at CA$2.00 and the most bearish at CA$1.85 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Quarterhill's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Compare this to the 9 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.1% per year. Factoring in the forecast slowdown in growth, it looks like Quarterhill is forecast to grow at about the same rate as the wider industry. The most important thing to take away is that the analysts increased their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Quarterhill's future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Quarterhill. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Quarterhill going out to 2027, and you can see them free on our platform here.. Even so, be aware that Quarterhill is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
15-05-2025
- Business
- Cision Canada
Quarterhill Announces Q1 2025 Financial Results
TORONTO, May 15, 2025 /CNW/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three months ended March 31, 2025. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated. Q1 2025 Highlights Revenue for Q1 2025 was $33.9 million compared to $34.9 million in Q1 2024. Adjusted EBITDA 1 for Q1 2025 was ($3.4) million compared to $0.2 million in Q1 2024. Adjusted EBITDA 1 for Q1 2025 was negatively impacted by ($3.2) million due to two tolling contracts that are currently under renegotiation. Revenue backlog 3 was $476 million at March 31, 2025. Cash used in operations for Q1 2025 was ($3.6) million compared to ($10.1) million in Q1 2024. Cash and cash equivalents were $26.1 million at March 31, 2025. Announced $40 million Renewal Contract to Upgrade Alameda CTC I-580 Express Lanes and provide operation and maintenance over seven years, with a potential four-year expansion valued at another $15 million. Subsequent to quarter-end, received a $3.2 million dividend from Wi-LAN Inc. ("WiLAN"). "Q1 2025 results reflect our ongoing business transformation," said Chuck Myers, CEO at Quarterhill. "While performance was impacted by our seasonally slow first quarter and the two tolling contracts that are in renegotiation, we continue to make meaningful progress on our turnaround strategy, positioning us for long-term success. Despite challenges, our project operations once again delivered strong revenue growth and margins. In addition, we remain actively engaged in renegotiating the two tolling contracts that negatively impacted our Adjusted EBITDA by $3.2 million this quarter, with the goal of securing a favorable outcome that would improve our financial performance in future quarters." Mr. Myers continued: "Beyond our operational progress, we benefited from a WiLAN dividend payment received after the quarter ended, which contributes positively to our cash position and will be reflected in our Q2 2025 financials. We remain confident in our ability to drive revenue growth and margin improvement as we move past the first quarter and progress through 2025, particularly as our contract renegotiations conclude and our operational enhancements and technology investment take fuller effect." Q1 2025 Financial Review Quarterhill's Management's Discussion and Analysis and Financial Statements for the three months ended March 31, 2025 are available at the Company's website and at its profile at SEDAR +. Revenues for the three months ended March 31, 2025, were $33.9 million compared to $34.9 million in the same period last year. The decrease in Q1 2025 revenue was due primarily to the timing of revenues received from certain tolling contracts, and offset, in part, by revenue growth from the enforcement operations. The two tolling contracts that are being renegotiated contributed $3.6 million to revenue in Q1 2025. Gross profit 2 as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed and currency volatility. Gross profit for the three months ended March 31, 2025, was $3.9 million, or 12%, as compared to $6.4 million, or 18%, in the same period last year. The decrease in Q1 2025 was primarily due to cost overruns on two tolling projects, and offset, in part, by continued strong margin performance from the enforcement operations. Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three months ended March 31, 2025, were $11.2 million compared to $10.5 million in the same period last year. The Q1 2025 increase is primarily due to recruitment, technical consulting and facilities expenses, which was offset in part by a decrease in amortization expense and other charges. Adjusted EBITDA 1 for the three months ended March 31, 2025, was ($3.4) million compared to $0.2 million in the same period last year. The Q1 2025 decrease in Adjusted EBITDA 1 compared to Q1 2024, was due to the factors impacting revenue, gross margin and expenses, as previously described. The two tolling contracts that are being renegotiated resulted in a reduction to Adjusted EBITDA 1 of ($3.2) million in Q1 2025. Net loss for the three months ended March 31, 2025, was ($8.4) million, or ($0.07) per diluted share, compared to a net loss of ($4.2) million, or ($0.04) per diluted share, in the same period last year. Cash used in continuing operations for the three months ended March 31, 2025, was ($3.6) million compared to ($10.1) million in the same period last year. Cash and cash equivalents were $26.1 million at March 31, 2025, compared to $31.9 million at December 31, 2024. Due to the nature of the Company's business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances. Working capital was $22.4 million at March 31, 2025, compared to $28.9 million at December 31, 2024. Adjusted Working Capital 4 was $59.8 million at March 31, 2025, compared to $66.2 million at December 31, 2024. Conference Call and Webcast Quarterhill will host a conference call to discuss its financial results on Thursday, May 15, 2025, at 10:00 AM Eastern Time. Webcast Information Traditional Dial-in Information To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free) To access the call from other locations, dial 1.416.945.7677 (International) Rapidconnect To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: Telephone Replay Telephone replay will be available from May 15, 2025, until May 22, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450. Conference ID: 47107 and Replay Passcode: 47107 # Non-IFRS Financial Measures and Non-IFRS Ratios Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded, from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company. These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Adjusted EBITDA - Non-IFRS Financial Measures We use the non-IFRS financial measure "Adjusted EBITDA" to mean net loss adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock-based compensation; (vii) foreign exchange loss (gain); and (viii) other (income) expense and (ix) changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net income (loss). Adjusted EBITDA per share – Non-IFRS Ratio Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share. Adjusted Working Capital – Non-IFRS Financial Measure Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months. The most comparable IFRS measure is working capital. Backlog - Non-IFRS Financial Measure We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog", the value of any expected but unsigned change orders that management considers may apply to such contracts. Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Key supplementary measures disclosed are as follows: Gross margin % Calculated as gross profit as a percentage of revenue. About Quarterhill Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within 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: Forward-looking Information This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. In particular, this news release contains forward-looking statements pertaining to, but not limited to, the following: operational and financial expectations for the 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan and strategy; the outcome of renegotiation efforts relating to our tolling contracts; the impact of contract renegotiation on our financial performance; and the results of operational enhancements and technology investment by the Company. Although the forward-looking statements contained in this news release are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, but not limited to: the Company's ability to execute on its business plan; successful integration of acquisitions; general economic and industry trends; operating assumptions relating to the Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; successful renegotiation of our tolling contracts on terms acceptable and favourable to the Company; and the other assumptions set forth in the Company's most recent annual information form available under the Company's profile on SEDAR+ at The Company's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in demand for the Company's products and services; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar outbreaks; the tolling contracts not successfully being renegotiated on terms acceptable or favourable to the Company, or at all; and the other risks set forth in the Company's most recent annual information form and management's discussion and analysis for the three and twelve months ended December 31, 2024 available under the Company's profile on SEDAR+ at The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. 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. This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2025. FOFI, as with forward-looking statements generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's financial results may differ materially from the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is presented for illustrative purposes only and may not be an indication of the Company's actual financial position or results of operations. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (in thousands and in United States dollars, except share and per share amounts) Interim Condensed Consolidated Statements of Financial Position (in thousands and in United States dollars) Interim Condensed Consolidated Statements of Cash Flows (in thousands and in United States dollars) Interim Condensed Consolidated Statements of Shareholders' Equity (in thousands and in United States dollars) Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Deficit Total Shareholders ' Equity Balance, January 1, 2024 $313,738 $126,129 $15,652 ($312,079) $143,440 Net loss - - - (4,218) (4,218) Other comprehensive loss - - (685) - (685) Stock-based compensation expense - 504 - - 504 Common shares issued from restricted stock units 263 (263) - - - Balance, March 31, 2024 $314,001 $126,370 $14,967 ($316,297) $139,041 Balance, January 1, 2025 $314,630 $127,446 $12,148 ($323,101) $131,123 Net loss - - - (8,370) (8,370) Other comprehensive income - - 561 - 561 Stock-based compensation expense - 944 - - 944 Common shares issued from restricted stock units 456 (658) - - (202) Balance, March 31, 2025 $315,086 $127,732 $12,709 ($331,471) $124,056 Reconciliation of Net Loss to Adjusted EBITDA (in thousands and in United States dollars, except share and per share amounts)
Yahoo
15-05-2025
- Business
- Yahoo
Quarterhill Announces Q1 2025 Financial Results
TORONTO, May 15, 2025 /CNW/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three months ended March 31, 2025. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated. Q1 2025 Highlights Revenue for Q1 2025 was $33.9 million compared to $34.9 million in Q1 2024. Adjusted EBITDA1 for Q1 2025 was ($3.4) million compared to $0.2 million in Q1 2024. Adjusted EBITDA1 for Q1 2025 was negatively impacted by ($3.2) million due to two tolling contracts that are currently under renegotiation. Revenue backlog3 was $476 million at March 31, 2025. Cash used in operations for Q1 2025 was ($3.6) million compared to ($10.1) million in Q1 2024. Cash and cash equivalents were $26.1 million at March 31, 2025. Announced $40 million Renewal Contract to Upgrade Alameda CTC I-580 Express Lanes and provide operation and maintenance over seven years, with a potential four-year expansion valued at another $15 million. Subsequent to quarter-end, received a $3.2 million dividend from Wi-LAN Inc. ("WiLAN"). "Q1 2025 results reflect our ongoing business transformation," said Chuck Myers, CEO at Quarterhill. "While performance was impacted by our seasonally slow first quarter and the two tolling contracts that are in renegotiation, we continue to make meaningful progress on our turnaround strategy, positioning us for long-term success. Despite challenges, our project operations once again delivered strong revenue growth and margins. In addition, we remain actively engaged in renegotiating the two tolling contracts that negatively impacted our Adjusted EBITDA by $3.2 million this quarter, with the goal of securing a favorable outcome that would improve our financial performance in future quarters." Mr. Myers continued: "Beyond our operational progress, we benefited from a WiLAN dividend payment received after the quarter ended, which contributes positively to our cash position and will be reflected in our Q2 2025 financials. We remain confident in our ability to drive revenue growth and margin improvement as we move past the first quarter and progress through 2025, particularly as our contract renegotiations conclude and our operational enhancements and technology investment take fuller effect." Q1 2025 Financial ReviewQuarterhill's Management's Discussion and Analysis and Financial Statements for the three months ended March 31, 2025 are available at the Company's website and at its profile at SEDAR+. Revenues for the three months ended March 31, 2025, were $33.9 million compared to $34.9 million in the same period last year. The decrease in Q1 2025 revenue was due primarily to the timing of revenues received from certain tolling contracts, and offset, in part, by revenue growth from the enforcement operations. The two tolling contracts that are being renegotiated contributed $3.6 million to revenue in Q1 2025. Gross profit2 as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed and currency volatility. Gross profit for the three months ended March 31, 2025, was $3.9 million, or 12%, as compared to $6.4 million, or 18%, in the same period last year. The decrease in Q1 2025 was primarily due to cost overruns on two tolling projects, and offset, in part, by continued strong margin performance from the enforcement operations. Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three months ended March 31, 2025, were $11.2 million compared to $10.5 million in the same period last year. The Q1 2025 increase is primarily due to recruitment, technical consulting and facilities expenses, which was offset in part by a decrease in amortization expense and other charges. Adjusted EBITDA1 for the three months ended March 31, 2025, was ($3.4) million compared to $0.2 million in the same period last year. The Q1 2025 decrease in Adjusted EBITDA1 compared to Q1 2024, was due to the factors impacting revenue, gross margin and expenses, as previously described. The two tolling contracts that are being renegotiated resulted in a reduction to Adjusted EBITDA1 of ($3.2) million in Q1 2025. Net loss for the three months ended March 31, 2025, was ($8.4) million, or ($0.07) per diluted share, compared to a net loss of ($4.2) million, or ($0.04) per diluted share, in the same period last year. Cash used in continuing operations for the three months ended March 31, 2025, was ($3.6) million compared to ($10.1) million in the same period last year. Cash and cash equivalents were $26.1 million at March 31, 2025, compared to $31.9 million at December 31, 2024. Due to the nature of the Company's business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances. Working capital was $22.4 million at March 31, 2025, compared to $28.9 million at December 31, 2024. Adjusted Working Capital4 was $59.8 million at March 31, 2025, compared to $66.2 million at December 31, 2024. 1. Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information. 2. Please refer to Gross Margin % in the Supplementary Financial Measures section for further information. 3. Please refer to the Backlog - Non-IFRS Financial Measure section for further information. 4. Please refer to the Adjusted Working Capital - Non-IFRS Financial Measure section for further information. Conference Call and WebcastQuarterhill will host a conference call to discuss its financial results on Thursday, May 15, 2025, at 10:00 AM Eastern Time. Webcast Information Live audio webcast will be available at: Webcast replay will be available at: Traditional Dial-in Information To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free) To access the call from other locations, dial 1.416.945.7677 (International) Rapidconnect To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: Telephone ReplayTelephone replay will be available from May 15, 2025, until May 22, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450. Conference ID: 47107 and Replay Passcode: 47107# Non-IFRS Financial Measures and Non-IFRS RatiosQuarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded, from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company. These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Adjusted EBITDA - Non-IFRS Financial Measures We use the non-IFRS financial measure "Adjusted EBITDA" to mean net loss adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock-based compensation; (vii) foreign exchange loss (gain); and (viii) other (income) expense and (ix) changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net income (loss). Adjusted EBITDA per share – Non-IFRS Ratio Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share. Adjusted Working Capital – Non-IFRS Financial Measure Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months. The most comparable IFRS measure is working capital. Backlog - Non-IFRS Financial Measure We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog", the value of any expected but unsigned change orders that management considers may apply to such contracts. Supplementary Financial MeasuresSupplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Key supplementary measures disclosed are as follows: Gross margin %Calculated as gross profit as a percentage of revenue. About QuarterhillQuarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within 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: Forward-looking InformationThis news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. In particular, this news release contains forward-looking statements pertaining to, but not limited to, the following: operational and financial expectations for the 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan and strategy; the outcome of renegotiation efforts relating to our tolling contracts; the impact of contract renegotiation on our financial performance; and the results of operational enhancements and technology investment by the Company. Although the forward-looking statements contained in this news release are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, but not limited to: the Company's ability to execute on its business plan; successful integration of acquisitions; general economic and industry trends; operating assumptions relating to the Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; successful renegotiation of our tolling contracts on terms acceptable and favourable to the Company; and the other assumptions set forth in the Company's most recent annual information form available under the Company's profile on SEDAR+ at The Company's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in demand for the Company's products and services; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar outbreaks; the tolling contracts not successfully being renegotiated on terms acceptable or favourable to the Company, or at all; and the other risks set forth in the Company's most recent annual information form and management's discussion and analysis for the three and twelve months ended December 31, 2024 available under the Company's profile on SEDAR+ at The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. 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. This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2025. FOFI, as with forward-looking statements generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's financial results may differ materially from the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is presented for illustrative purposes only and may not be an indication of the Company's actual financial position or results of operations. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss(in thousands and in United States dollars, except share and per share amounts)Three months ended March 31,2025 2024Revenues $33,889 $34,897 Direct cost of revenues 29,958 28,540 Gross profit 3,931 6,357 Operating expenses Selling, general and administrative expenses 8,031 6,375 Research and development expenses 281 317 Depreciation of right-of-use assets 335 344 Depreciation of property, plant and equipment 369 377 Amortization of intangible assets 1,974 2,237 Other charges 241 83411,231 10,484 Results from operations (7,300) (4,127) Finance income (55) (268) Finance expense 1,493 1,705 Foreign exchange loss (gain) 272 (1,110) Other (income) expense (317) 133 Change in fair value of derivative liability (430) (495) Loss before taxes (8,263) (4,092) Current income tax expense 109 73 Deferred income tax (recovery) expense (2) 53 Income tax expense 107 126 Net loss (8,370) (4,218)Other comprehensive loss that may be reclassified subsequently to net loss: Foreign currency translation adjustment 561 (685) Comprehensive loss ($7,809) ($4,903)Loss per share - Basic ($0.07) ($0.04) Loss per share - Diluted ($0.07) ($0.04) Interim Condensed Consolidated Statements of Financial Position(in thousands and in United States dollars) As at March 31, 2025 December 31, 2024Current assets Cash and cash equivalents $26,123 $31,893 Accounts receivable, net 19,353 20,716 Unbilled revenue 37,676 34,461 Income taxes receivable 206 231.00 Inventories (net of obsolescence) 10,405 10,143 Prepaid expenses and deposits 4,291 4,58898,054 102,032 Non-current assets Accounts and other long-term receivables 4,899 4,781 Right-of-use assets, net 5,113 5,035 Property, plant and equipment, net 3,641 3,961 Intangible assets, net 77,448 78,370 Investment in other entity 3,919 3,919 Deferred compensation asset 988 1,050 Goodwill 31,115 30,960127,123 128,076 TOTAL ASSETS $225,177 $230,108 Liabilities Current liabilities Accounts payable and accrued liabilities $27,100 $25,598 Income taxes payable 265 334 Current portion of lease liabilities 2,132 2,040 Current portion of deferred revenue 6,682 5,708 Current portion of long-term debt 2,125 2,125 Convertible debentures 37,304 36,825 Derivative liability 86 51675,694 73,146 Non-current liabilities Deferred revenue 1,935 1,574 Long-term lease liabilities 4,595 4,803 Long-term debt 14,762 15,273 Deferred compensation liabilities 1,017 1,100 Deferred income tax liabilities 2,606 2,577 Other long-term liabilities 512 51225,427 25,839 TOTAL LIABILITIES 101,121 98,985 Shareholders' equity Capital stock 315,086 314,630 Contributed surplus 127,732 127,446 Accumulated other comprehensive income 12,709 12,148 Deficit (331,471) (323,101)124,056 131,123 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $225,177 $230,108 Interim Condensed Consolidated Statements of Cash Flows(in thousands and in United States dollars) Three months ended March 31, 2025 2024 Operating activities:Net loss($8,370) ($4,218) Add (deduct) non-cash items:Stock-based compensation expense944 504 Depreciation and amortization2,678 2,958 Foreign exchange loss (gain)272 (1,110) Other (income) expense(110) 181 Deferred and non-cash income tax (recovery) expense(2) 53 Embedded derivatives3 39 Change in fair value of derivative liability(430) (495) Non-cash interest expense539 540 Net change in non-cash working capital balances853 (8,566) Cash used in operating activities(3,623) (10,114) Financing activities:Payment of lease liabilities(643) (577) Repayment of long-term debt(531) (531) Cash used in financing activities(1,174) (1,108) Investing activities:Net proceeds from disposition of a joint venture319 - Purchase of property, plant and equipment(59) (201) Capitalized software costs(916) (723) Cash used in investing activities(656) (924) Foreign exchange on cash held in foreign currencies(317) (164) Net decrease in cash and cash equivalents(5,770) (12,310) Cash and cash equivalents, beginning of period31,893 42,733 Cash and cash equivalents, end of period$26,123 $30,423 Interim Condensed Consolidated Statements of Shareholders' Equity(in thousands and in United States dollars)Capital Stock Contributed Surplus AccumulatedOther ComprehensiveIncome Deficit Total Shareholders' Equity Balance, January 1, 2024 $313,738 $126,129 $15,652 ($312,079) $143,440 Net loss - - - (4,218) (4,218) Other comprehensive loss - - (685) - (685) Stock-based compensation expense - 504 - - 504 Common shares issued from restricted stock units 263 (263) - - - Balance, March 31, 2024 $314,001 $126,370 $14,967 ($316,297) $139,041 Balance, January 1, 2025 $314,630 $127,446 $12,148 ($323,101) $131,123 Net loss - - - (8,370) (8,370) Other comprehensive income - - 561 - 561 Stock-based compensation expense - 944 - - 944 Common shares issued from restricted stock units 456 (658) - - (202) Balance, March 31, 2025 $315,086 $127,732 $12,709 ($331,471) $124,056 Reconciliation of Net Loss to Adjusted EBITDA(in thousands and in United States dollars, except share and per share amounts)Three months ended March 31,2025 2024$ Per Share [2] $ Per Share Net loss ($8,370) ($0.07) ($4,218) ($0.04) Adjusted for: Income tax expense 107 0.00 126 0.00 Foreign exchange loss (gain) 272 0.00 (1,110) (0.01) Finance expense, net 1,438 0.01 1,437 0.01 Other charges 241 0.00 834 0.01 Depreciation and amortization 2,678 0.02 2,958 0.03 Stock based compensation expense 944 0.01 504 0.00 Change in fair value of derivative liability (430) (0.00) (495) (0.00) Other (income) expense (317) (0.00) 133 0.00 Adjusted EBITDA [1] ($3,437) ($0.03) $169 $0.00Weighted average number of Common Shares Basic 115,884,922115,025,344 1. Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information. 2. Please refer to the Adjusted EBITDA per share – Non-IFRS Ratio section for further information. View original content: SOURCE Quarterhill Inc. View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
13-05-2025
- Automotive
- Cision Canada
Quarterhill Announces Full System Acceptance and Completion of Major Toll System Projects for CTRMA
Quarterhill successfully delivers and receives full system acceptance for the US 290 toll road project and completion of CTRMA 183A Phase III. The milestones mark a significant achievement, showcasing Quarterhill's expertise in deploying advanced toll collection systems and reinforcing its commitment to improving regional mobility with state-of-the-art technology solutions. TORONTO, May 13, 2025 /CNW/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a global leader in providing intelligent transportation system solutions, is proud to announce the successful completion and full system acceptance of the US 290 toll road project for the Central Texas Regional Mobility Authority (CTRMA). This milestone achievement further cements Quarterhill's reputation as an innovator in the development of tolling technology. In December 2021, Quarterhill was awarded the contract to deliver an advanced toll collection system for key segments of CTRMA's network, including US 290 and CTRMA 183A Phase III. Today, we are pleased to confirm that both initiatives have been completed to the full satisfaction of CTRMA, meeting all operational and technical requirements. US 290 Expressway Project Highlights: The US 290 toll road, a 6-mile corridor from US 183 to SH 130 in East Austin, has been upgraded to an expressway facility, significantly improving travel times for both tolled and non-toll lanes. This enhancement has tripled the existing roadway's capacity, enabling more efficient and safer travel across the region. The integration of direct connectors at both US 183 and SH 130 promotes seamless vehicular movement, reduces congestion, and improves connectivity, benefiting countless commuters and contributing to economic growth in Williamson County and Northeast Travis County. CTRMA 183A Phase III Highlights: The completion of Phase III of the 183A toll supports CTRMA's infrastructure improvements that provide direct access between key points and improve the flow of traffic. Collaboration with TxDOT and other stakeholders was pivotal in completing this project, underscoring Quarterhill's commitment to agency collaboration. The toll systems on both roadways are fully automated, utilizing all-electronic tolling mechanisms that include options for electronic tags or Pay By Mail, aligning with modern tolling practices and ensuring a user-friendly experience for all motorists. "We are thrilled with the successful launch and system acceptance at two of our projects, as part of our ongoing partnership with Quarterhill. This milestone not only demonstrates CTRMA's commitment to enhancing transportation infrastructure but also marks a significant step forward in utilizing advanced tolling technologies," said Greg Mack, Director of IT and Toll Systems at CTRMA. "We are confident that Quarterhill's innovative solutions will continue to improve the efficiency and reliability of our road networks, offering a superior travel experience for our community." "We are pleased to have reached this significant milestone," said Chuck Myers, CEO of Quarterhill. "The successful delivery of these complex projects not only demonstrates our technical capabilities but also our dedication to collaboration that enhances transportation efficiency. We are proud to support CTRMA in their mission to provide innovative mobility solutions." As these projects move from completion to operational phases, Quarterhill remains committed to supporting CTRMA with ongoing maintenance and technology advancements to ensure the highest levels of service and reliability. About Quarterhill Quarterhill is a leading provider of tolling, safety and enforcement, and logistics solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within 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: Forward-looking Information This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", "expect" and similar expressions. Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. 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.
