Quarterhill Announces Strong Q2 Fiscal 2023 Financial Results
08/09/2023
Delivers record quarterly ITS revenue of $51.9 million and positive Adjusted EBITDA of $3.9 million.Bill Morris appointed to the Board of Directors and Dr. Michel Fattouche retires from the Board.TORONTO, Aug. 9, 2023 /PRNewswire/ - 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 and six months ended June 30, 2023. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Financial statements for the three and six months ended June 30, 2023, and for the respective comparison periods, have been prepared to reflect continuing operations and therefore exclude results during those periods from Wi-LAN Inc. ("WiLAN"), which was sold by Quarterhill on June 15, 2023. Q2 2023 and year-to-date operating results from WiLAN, up to the date of sale on June 15, 2023, are reported as net (loss) income from discontinued operations.
Q2 Fiscal 2023 Highlights
- Revenue was $51.9 million compared to $39.2 million in Q2 2022
- Adjusted EBITDA1 was $3.9 million compared to ($8.1) million in Q2 2022
- Revenue backlog3 was more than USD$500.0 million at June 30, 2023
- Following restructuring and integration initiatives in the first half of the year, selling, general and administrative expenses were $8.2 million compared to $13.0 million in Q2 2022
- Working capital was $109.5 million at June 30, 2023
- Completed the sale of Wi-LAN Inc.
- Announced amended credit agreement with HSBCAppointed ITS industry veteran Charles ("Chuck") Myers to the board of directors
- Subsequent to quarter-end, appointed Bill Morris to the board of directors and announced the retirement of Dr. Michel Fattouche from the board
"Quarterly revenue and Adjusted EBITDA were up significantly, both year-over-year and sequentially, due to growth at IRD, progress with our ongoing tolling projects and integration and cost control initiatives," said John Gillberry, Interim CEO at Quarterhill. "IRD, our enforcement or commercial vehicle operations unit, had another strong quarter with the highest Q2 revenue in its history, while also generating strong Adjusted EBITDA margins. At ETC, our tolling operations, we made some tough decisions in the first half of the year in order to lay the foundation for improved operational and financial performance, and that hard work began to pay off in Q2."
"The sale of WiLAN in Q2 provides an excellent home for that business to prosper and it enables Quarterhill to focus 100% of its attention and resources on ITS growth. We continue to make changes to the board to reflect the evolution of the business with the appointment of Chuck Myers in Q2 and Bill Morris subsequent to quarter-end, while at the same time Dr. Michel Fattouche has retired from the board after more than two decades of dedicated service to the Company, first as a founder and executive leader, and later as a board member."
"This is a very exciting time for Quarterhill. We have two strong, and increasingly integrated, ITS platform businesses in ETC and IRD. Both have talented teams, great reputations, and solid prospects for new business. Against this positive backdrop, our near-term priorities are to drive towards go-live dates with our tolling projects, achieve positive Adjusted EBITDA for 2023, maintain progress on our integration plan and complete the search for our new CEO."
Continued at:
https://www.quarterhill.com/news/news-details/2023/Quarterhill-Announces-Strong-Q2-Fiscal-2023-Financial-Results/default.aspx
|
