• Mr. Vineet Khosla, AI and Device Finding out Pioneer, joins the Board of Administrators

TORONTO, Aug. 9, 2024 /PRNewswire/ – Quarterhill Inc. (“Quarterhill” or the “Company”) (TSX: QTRH) (OTCQX: QTRHF), a chief supplier of tolling and enforcement answers within the Clever Transportation Machine (“ITS”) business, broadcasts its monetary effects for the 3 and 6 months ended June 30, 2024. All monetary knowledge on this press reduce is reported in United States (“US”) bucks, until in a different way indicated.

Quarterhill has modified the presentation forex of its monetary statements to US bucks, its practical forex. A vital share of the Corporate’s gross sales, bills, property, and liabilities are denominated in US bucks. This transformation in presentation forex goals to reinforce exterior stakeholders’ talent to evaluate Quarterhill’s monetary efficiency and to release the have an effect on of foreign currency echange volatility.

Q2 2024 Highlights

• Earnings was once $41.5 million, up 7.5% in comparison to $38.6 million in Q2 2023.
• Adjusted EBITDA¹ was once $1.7 million in comparison to $2.9 million in Q2 2023.
• Money from operations was once $0.8 million in comparison to coins worn in operations of ($10.3) million in Q2 2023.
• Earnings backlog³ was once $500 million at June 30, 2024.
• Finished acquisition of Purple Fox I.D. Restricted (“Red Fox”), increasing the Corporate’s tool choices.
• Purple Fox gained two prestigious King’s Awards: one for innovation and one for excellence in world business.

“Q2 saw continued execution on our goals to drive top-line growth, expand Adjusted EBITDA margin and improve cash flow,” mentioned Chuck Myers, CEO at Quarterhill. “Adjusted EBITDA margin grew sequentially from Q1, and we anticipate continued progress in growing our margin throughout the year. Additionally, we generated positive cash flow from operations for the first time in two years and expect our cash balance to grow through the end of the year.”

“Our two business units – tolling and enforcement – made progress in Q2 on their ongoing projects as well as closing new business, resulting in a contracted revenue backlog of $500 million at quarter end. We remain focused on leveraging the improvements we’ve made in the past year to our project management and contract bidding processes to grow these leading businesses. At the same time, we continue to work to increase our market reach through operational integration, exploring new opportunities in Europe, penetrating the logistics sector and building-out our suite of software solutions, in particular with artificial intelligence (AI) applications.”

Board of Administrators Replace

Quarterhill broadcasts that Vineet Khosla, Generation Officer on the Washington Put up, has joined the Board of Administrators, efficient right away. Mr. Khosla has an in depth monitor file as an innovator and govt at one of the most international’s greatest know-how corporations. A pioneering researcher and chief resonance in AI, gadget studying, and cloud computing, he has pushed important developments in those grounds.

Since becoming a member of the Washington Put up in 2023, Mr. Khosla has led the engineering workforce, executing the after section of the corporate’s innovation technique. Previous to the Put up, Vineet served as Senior Engineering Supervisor at Uber, the place he was once chargeable for the advance in their map routing engine, which optimizes routes and timing. Sooner than his tenure at Uber, he was once the primary engineering rent for Siri’s herbal language engine at Apple, the place he spent over 8 years in senior engineering roles, growing and managing Siri’s AI engine. Mr. Khosla holds a Grasp’s in AI from the College of Georgia, earned in 2005.

“We are very pleased to welcome Vineet to the Board,” mentioned Rusty Lewis, Chair of the Board at Quarterhill. “His deep expertise in AI and machine learning, combined with his experience at the intersection of transportation and technology, will play a key role in the development of our product roadmap and our push to expand the software side of our business.”

Q2 2024 Monetary Evaluate

Quarterhill’s Control’s Dialogue and Research and fiscal statements for the 3 and 6 months ended June 30, 2024 are to be had on the Company’s website and at its profile at SEDAR+.

Monetary statements for the 3 and 6 months ended June 30, 2023, had been ready to mirror proceeding operations, and subsequently, exclude effects all over that duration from Wi-LAN Inc. (“WiLAN”), which was once offered through Quarterhill on June 15, 2023.

Revenues for the 3 and 6 months ended June 30, 2024, had been $41.5 million and $76.4 million, up 7.5% and 14%, respectively, in comparison to $38.6 million and $67.0 million within the 3 and 6 months ended June 30, 2023. The rise in revenues was once because of higher task and stepped forward efficiency with North American venture income.

Rude benefit² as a price and as a proportion of revenues is also topic to important variance in every reporting duration because of the character and form of assurance and repair paintings carried out. Rude benefit for the 3 and 6 months ended June 30, 2024, was once $8.5 million and $14.9 million, or 21% and 19%, as in comparison to $10.0 million and $13.8 million, or 26% and 21%, within the 3 and 6 months ended June 30, 2023. Generation rude benefit margin proportion has higher on a sequential quarterly foundation, the year-over-year decreases in comparison to the prior 12 months sessions had been basically because of one tolling venture this is within the repairs section however experiencing a transitory duration of lower-than-expected margin. The year-over-year decreases in rude benefit margin had been partly offset through persevered sturdy efficiency within the Corporate’s enforcement operations.

General working bills are created from promoting, basic and administrative prices (“SG&A”), analysis and construction (“R&D”) prices, depreciation, amortization of intangible property and alternative fees. General working bills for the 3 and 6 months ended June 30, 2024, had been $10.8 million and $21.2 million in comparison to $10.6 million and $22.2 million within the 3 and 6 months ended June 30, 2023. The year-over-year adjustments had been basically because of debase R&D bills and alternative fees offset through upper SG&A.

Adjusted EBITDA¹ for the 3 and 6 months ended June 30, 2024, was once $1.7 million and $1.8 million in comparison to $2.9 million and ($0.9) million for the 3 and 6 months ended June 30, 2023. The scale down in Adjusted EBITDA for the 3 months ended June 30, 2024, in comparison to the prior 12 months duration, was once because of debase rude benefit as prior to now defined, and offset, partially, through higher income and debase working bills. This build up in Adjusted EBITDA for the six months ended June 30, 2024, in comparison to the prior 12 months duration, was once because of upper income and debase working bills.

Web loss from proceeding operations for the 3 and 6 months ended June 30, 2024, was once ($3.0) million and ($7.2) million, or ($0.03) and ($0.06) in line with diluted percentage, in comparison to a internet loss from proceeding operations of ($10.2) million and ($19.3) million, or ($0.09) and ($0.17) in line with diluted percentage, for the 3 and 6 months ended June 30, 2023.

Money generated (worn) in proceeding operations for the 3 and 6 months ended June 30, 2024, was once $0.8 million and ($9.3) million in comparison to coins worn in proceeding operations of ($6.9) million and ($13.5) million for the 3 and 6 months ended June 30, 2023.

Money and coins equivalents had been $24.0 million at June 30, 2024, in comparison to $42.7 million at December 31, 2023. The makes use of of money within the 3 months ended June 30, 2024, incorporated a internet quantity of $4.9 million spent at the acquisition of Purple Fox.

Adjusted Running Capital⁴ was once $68.4 million at June 30, 2024, in comparison to $78.9 million at December 31, 2023. Because of the character of the Corporate’s trade actions, working coins flows would possibly range considerably between sessions because of adjustments and timing in running capital balances.

Convention Name and Webcast
Quarterhill will host a convention name to talk about its monetary effects on Friday, August 9, 2024, at 10:00 AM Jap Occasion.

Webcast Knowledge

Conventional Dial-in Knowledge

• To get right of entry to the decision from the U.S. and Canada, dial 1.800.836.8184 (Toll Detached)
• To get right of entry to the decision from alternative places, dial 1.289.819.1350 (World)

Rapidconnect
To right away connect the convention name through telephone, please worth refer to URL to simply sign up and be hooked up into the convention name mechanically: https://emportal.ink/4cZxWpC

Phone Replay
Phone replay shall be to be had from August 9, 2024, till August 16, 2024, at: 1.888.660.6345 (Toll Detached North The united states) or 1.289.819.1450.

Convention ID: 52352 and Replay Passcode: 52352#

Non-IFRS Monetary Measures and Non-IFRS Ratios
Quarterhill makes use of each IFRS and likely non-IFRS monetary measures to evaluate efficiency. Non-IFRS monetary measures are monetary measures disclosed through an organization that (a) depict ancient or anticipated age monetary efficiency, monetary place or coins wave of an organization, (b) with appreciate to their composition, exclude quantities which are incorporated in, or come with quantities which are excluded from the composition of essentially the most without delay related monetary measure disclosed in the main monetary statements of the corporate, (c) don’t seem to be disclosed within the monetary statements of the corporate and (d) don’t seem to be a ratio, fraction, proportion or related illustration. Non-IFRS ratios are monetary measures disclosed through an organization which are within the mode of a ratio, fraction, proportion or related illustration that has a non-IFRS monetary measure as a number of of its parts, and that don’t seem to be disclosed within the monetary statements of the corporate.

Those non-IFRS monetary measures and non-IFRS ratios don’t seem to be standardized monetary measures below IFRS, and, subsequently, are not likely to be related to related monetary measures introduced through alternative corporations. Control believes those non-IFRS monetary measures and non-IFRS ratios handover clear and helpful supplemental knowledge to support buyers evaluation our monetary efficiency, monetary status, and liquidity the use of the similar measures as control. Those non-IFRS monetary measures and non-IFRS ratios will have to no longer be regarded as as an alternative choice to, or splendid to, measures of monetary efficiency ready according to IFRS.

Adjusted EBITDA – Non-IFRS Monetary Measures

We worth the non-IFRS monetary measure “Adjusted EBITDA” to ruthless internet (loss) source of revenue adjusted for (i) source of revenue taxes, (ii) finance expense or source of revenue; (iii) amortization and impairment of intangibles; (iv) alternative fees and alternative one-time pieces; (v) depreciation of right-of-use property and attribute, plant and kit; (vi) stock- founded reimbursement; (vii) foreign currency echange (acquire) loss; and (viii) alternative source of revenue which contains fairness in profits from joint ventures; (ix) dividends won from joint ventures; and * adjustments in honest price of by-product legal responsibility. Adjusted EBITDA is worn through our control to evaluate our normalized coins generated on a consolidated foundation. Adjusted EBITDA could also be a efficiency measure that can be worn through buyers to investigate the money generated through Quarterhill. Adjusted EBITDA will have to no longer be interpreted as an spare to internet (loss) source of revenue and coins flows from operations as progressive according to IFRS or as measure of liquidity. Essentially the most without delay related IFRS monetary measure is Web (loss) source of revenue.

Adjusted EBITDA in line with percentage – Non-IFRS ratio

Adjusted EBITDA in line with percentage is calculated as Adjusted EBITDA divided through the unsophisticated weighted reasonable of habitual stocks. Adjusted EBITDA in line with percentage is worn through our control and buyers to investigate coins generated through Quarterhill on a in line with percentage foundation. Essentially the most related IFRS measure is profits in line with percentage.

Adjusted Running Capital

Adjusted Running Capital is calculated as up-to-date property minus up-to-date liabilities, adjusted for convertible debentures and by-product legal responsibility. Adjusted Running Capital displays our internet running capital anticipated to be settled in coins inside three hundred and sixty five days.

Backlog – Non-IFRS Monetary Measures

We worth the non-IFRS measure “backlog” to ruthless the overall price of labor that has no longer but been finished however that during control’s revel in of related conditions has: (a) a prime sure bet of being carried out pursuant to current promises or paintings orders specifying task scope, price and timing; (b) an expectation of enlargement of current promises because of anticipated extensions; and/or (c) been awarded to a number of of our ITS working subsidiaries as evidenced through a binding assurance or the place the finalization of a binding assurance is quite confident. Actions below such promises would possibly safeguard a duration of as much as 15 years. We don’t come with in “backlog”, the worth of any anticipated however unsigned alternate orders that control considers would possibly practice to such promises.

Spare Monetary Measures
Spare monetary measures are monetary measures disclosed through an organization that (a) are, or are supposed to be, disclosed on a periodic foundation to depict the ancient or anticipated age monetary efficiency, monetary place or coins wave of an organization (b) don’t seem to be disclosed within the monetary observation of the corporate, (c) don’t seem to be non-IFRS monetary measures, and (d) don’t seem to be non-IFRS ratios.

Key extra measures disclosed are as follows:

Rude margin %
Calculated as rude benefit as a proportion of income.

About Quarterhill
Quarterhill is a chief supplier of tolling and enforcement answers within the Clever Transportation Machine (ITS) business. Our function is technology-driven world management in ITS, by the use of natural expansion of our tolling and enforcement companies, and through proceeding an acquisition-oriented funding technique that capitalizes on sexy expansion alternatives inside ITS and its adjoining markets. Quarterhill is indexed at the TSX below the logo QTRH and at the OTCQX Best possible Marketplace below the logo QTRHF. For more info: www.quarterhill.com.

Ahead-looking Knowledge
This information reduce accommodates forward-looking knowledge and forward-looking statements throughout the which means of acceptable Canadian securities rules (jointly, “forward-looking statements”) referring to Quarterhill, its working subsidiaries and their respective companies. Such forward-looking statements relate to age occasions, situations or age monetary efficiency of ‎Quarterhill in response to age financial situations and classes of motion. All statements alternative ‎than statements of ancient reality is also forward-looking statements. Such forward-looking statements ‎are incessantly, however no longer all the time, recognized through the worth of any phrases comparable to “seek”, “anticipate”, “budget”, ‎‎”plan”, “goal”, and related expressions. Those statements contain identified and unknown dangers, suppositions, ‎uncertainties and alternative elements that can reason original effects or occasions to fluctuate materially from the ones ‎expected in such forward-looking statements. The Corporate believes the expectancies mirrored in ‎the ones forward-looking statements are affordable, however disagree guarantee can also be for the reason that those expectancies ‎will turn out to be proper and such forward-looking statements incorporated on this information reduce will have to no longer be ‎unduly relied upon.‎ Particularly, this information reduce accommodates forward-looking statements bearing on, however no longer restricted to, the ‎following: operational and fiscal expectancies for the 2024 monetary 12 months, together with income, rude margin and Adjusted EBITDA expectancies; and the Corporate’s marketing strategy.

‎Even supposing the forward-looking statements contained on this information reduce are founded upon suppositions ‎which control of the Corporate believes to be affordable, the Corporate can’t ensure buyers ‎that original effects shall be in step with those forward-looking statements. With appreciate to forward-‎shopping statements contained on this information reduce, the Corporate has made suppositions referring to, however ‎no longer restricted to: the Corporate’s talent to blast on its marketing strategy; a hit integration of Purple Fox; basic financial and business traits; working suppositions with regards to the ‎Corporate’s operations; call for for the Corporate’s services; value estimates for fastened worth promises; and the alternative suppositions eager forth within the ‎Corporate’s most up-to-date annual knowledge mode to be had below the Corporate’s profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Corporate’s original effects may just fluctuate materially from the ones expected within the forward-looking ‎statements, on account of various identified and unknown dangers and uncertainties and alternative elements ‎together with, however no longer restricted to: adjustments in call for for the Corporate’s services; basic financial, ‎political, marketplace and trade situations, together with fluctuations in rates of interest, foreign currency echange charges, ‎inventory marketplace volatility; reliance on key control staff; dangers indistinguishable to festival throughout the Corporate’s business and with regards to technological advances; litigation dangers; cyber-security dangers; fastened worth promises would possibly lead to surprising prices to the Corporate; dangers of fitness epidemics, pandemics and related ‎outbreaks; and the alternative dangers eager forth within the Corporate’s most up-to-date annual knowledge mode ‎and control’s dialogue and research for the 3 and three hundred and sixty five days ended December 31, 2023 to be had below the Corporate’s profile on SEDAR+ at www.sedarplus.ca.‎

The Corporate’s original effects, efficiency or fulfillment may just fluctuate materially from the ones ‎expressed in, or implied through, those forward-looking statements and, accordingly, disagree guarantee can also be ‎for the reason that any of the occasions expected through the forward-looking statements will transpire or happen, or if ‎any of them achieve this, what advantages the Corporate will derive therefrom. Readers are subsequently cautioned ‎that the foregoing lists of notable elements don’t seem to be exhaustive, they usually will have to no longer unduly depend at the ‎forward-looking statements incorporated on this information reduce. All forward-looking statements contained on this information reduce are expressly ‎certified through this cautionary observation. Quarterhill has disagree goal, and undertakes disagree legal responsibility, to replace or revise any forward-looking statements, whether or not on account of untouched knowledge, age occasions or in a different way, aside from as required through regulation.

This information reduce accommodates “future-oriented financial information” and “financial outlooks” throughout the which means of acceptable Canadian securities rules (jointly, “FOFI”), together with in regards to the monetary effects, income, rude margin and Adjusted EBITDA of Quarterhill for the 12 months ended December 31, 2024. FOFI, as with forward-looking ‎statements ‎normally, are, with out limitation, in response to the suppositions and {qualifications}, and are topic to the dangers, set off ‎above in appreciate of forward-looking statements. Quarterhill’s original monetary place and result of operations would possibly fluctuate materially from ‎control’s ‎up-to-date expectancies and, in consequence, the Corporate’s monetary effects would possibly fluctuate ‎materially from ‎the FOFI equipped on this information reduce. The Corporate and its control consider that the FOFI has been ready on an inexpensive foundation, reflecting control’s perfect estimates and judgments and the FOFI contained on this information reduce was once licensed through control as of the time hereof, for functions of offering additional details about the Corporate’s age trade operations and effects. Alternatively, as a result of this data is subjective and topic to various dangers and suppositions, it will have to no longer be depended on as essentially indicative of age effects. Excluding as required through acceptable securities rules, the Corporate undertakes disagree legal responsibility to replace such FOFI. Readers are cautioned that the FOFI contained on this information reduce will have to no longer be worn for functions alternative than for which it’s disclosed herein, and such knowledge is ‎introduced for ‎illustrative functions most effective and is probably not a sign of the Corporate’s original ‎monetary place or ‎result of operations.‎

Period in-between Condensed Consolidated Statements of Loss and Complete Loss
(in 1000’s and in United States bucks, aside from percentage and in line with percentage quantities)

Period in-between Condensed Consolidated Statements of Monetary Place
(in 1000’s and in United States bucks)

Period in-between Condensed Consolidated Statements of Money Flows
(in 1000’s and in United States bucks)

Period in-between Condensed Consolidated Statements of Shareholders’ Fairness
(in 1000’s and in United States bucks)

Reconciliation of Web Loss to Adjusted EBITDA
(in 1000’s and in United States bucks, aside from percentage and in line with percentage quantities)

SOURCE Quarterhill Inc.