Quarterhill Inc T.QTRH

Alternate Symbol(s): QTRHF | T.QTRH.DB

Technology Electronic Components

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.

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Quarterhill Inc > Smells like distraction to Q #'

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Comment by cabbieJBJon May 07, 2024 10:15am

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Post# 36026716

RE:RE:RE:Smells like distraction to Q #'

It's not bad to say it Socrates. But you are not the only one saying it. You criticized me as a cheerleader, ignoring important questions, you said. You said you had five big questions. I asked you to post them and I'm still waiting.

So please let me recap where my head is at:

Profitability is not acceptable today. However, the business is on the cusp of profitability as evidenced by the sequential improvements through 2023. The SINGLE barrier to profitability is MARGIN on current tolling contracts, and possibly in the tolling space itself - and all eyes will be on this all the time in 2024.
Management has said that the EBITDA target is 20% in the 2025/2026 time frame, an increase from prior mangement comments indicating 15%. This says that the current regieme intends to develop higher margin opportunities. I think this is possible, but it needs to be demonstarted. Not there yet.
News has been scant, especially new business. However, the backlog increased from USD $500M to $520M in Q4, indicting new revenue from the existing contract base. This was announced with the Q4 results
Revenue is not the problem. Management has advised that 70% of the 2024 revenue goal will come from backlog; 15% to 20% will come from existing contracts that require annual renewals. This leaves 10% to 15% to be sourced from new business. Todate, QTRH has announced a contract in Tennessee and accretive revenue from Red Fox, totalling an estimated USD $9-10M. Outsized revenue growth is very possible, but not built into forecasts - average annual revenue growth estimates from the 3 analysts covering QTRH is only +7.7% despite management's indication that the sector is expected to grow at 20%.
QTRH's technology, a sustainable competitive advantage, is leading edge in the tolling and enforcement sectors. The Red Fox acquisition confirms the company's committment to being at the forefront of the sector on technology.
QTRH has assembled an excellent team with a track record of accomplishment in ITS.