Quarterhill Inc T.QTRH

Estimated USD $1.5B potential revenue for ETC in 5 weeks

[cabbieJBJ]

That's right USD $1,500,000,000.  Billion, with a B!

The awards:

Central Texas Regional Mobility Authority (17-Dec-2021) for USD $79M; 
E-ZPass Interoperability Hub award I discovered on LinkedIn (told it is in the final contract negotiation stage) for USD $21M; and 
WSP-CA 405 Express Lane subcontract (25-Jan-2022) for USD $49M.

The total: USD $170M. 

QTRH's investor presentation indicates a 8.8X revenue mutiple during the life of the contract award from change orders.  USD $170M X 8.8 = USD ~$1,500M

I am deeply concerned that QTRH is missing an important opportunity to make the market aware of the significance of these contract wins in its transition to a pure play ITS company.

[wilander]

Are you sure about those numbers cabbie?  Are you saying they just locked in $1.5 billion for ETC for the next ten years on just these three deals alone? Because if so...yeah....no way the market knows it.

[cabbieJBJ]

No it is not "locked in".  But investors have been told that during the course of ETC contracts, revenue is typically 8.8x the original contract value.  This is in the QTRH investor presentation.  As long life contracts, there are changes and additions of substance, throughout the life of the contract.  Since I am comfortable with the mutiplier at this point, why don&

[wilander]

It was your comment and post, how about you ask them cabbie and get back to us? I'm still here for Apple, but if we just signed contracts that can possibly lead to $1.5 billion, I'm all eyes and ears to stay. But the fact they havent PR's these deals, nort seeing them as important, I doubt it.

[cabbieJBJ]

I have no need to ask.  Wilander, you are the doubting Thomas.  I offered you a way to get more information that might be important to an investor and you rejected it.

[wilander]

I am on the fence cabbie, never said i wasnt.  And when a company signs what seems to be two sizeable contracts and doesnt PR them, it doesnt do much to reinforce the doubt. Hence the SP too, I suspect.

[Justhalffull]

I know governments are incompetent at many things, but they surely are not so incompetent that they would have to pay 8.8 times the original contract to make changes.  Ridiculous.

[cabbieJBJ]

I'm glad you are not running the company 1/2full.  A little knowledge is a dangerous thing.

[Justhalffull]

Ya, and I'm glad you aren't as well.  Can't run a company on pie in the sky dreams.  Reality usually sets in.  $1.5 Billion in 5 weeks, and the stock is DOWN 3.8%.  Right!

[cabbieJBJ]

1/2full, slide 14 answers your question on  ETC revenue mutiple vs. the original contract award. https://s27.q4cdn.com/387307960/files/doc_presentations/2021/08/24/Quarterhill_Investor-Presentation_Fall-2021_08.24.21.pdf You should check this out as well Wilander.

[wilander]

It begs the question then, as a company -- why would they not want to be more vocal about it?  More front and center?  More trasnparetn with NR's? Seems this could move the SP no?

[Justhalffull]

Selective data always look good when you take the best only.  Fact is, for the majority of the contracts, multiples are minimal.  If I take the 5 best stocks on the TSX yesterday and use these as my prospects, I look great.  Facts is, it doesn't work that way.

[astutein]

cabbie-  Just once, I would like to offer you some friendlyadvice. Your views and time are far to valuable to engage Justhalffull.   LOL  

[cabbieJBJ]

Thanks Astutein. I wish I'd seen your advice before I responded to his most recent babble of unsupported expertise. Have a nice evening.

[cabbieJBJ]

1/2full, it would need to be more predictive than not for it to be put into an investor and ETC acquisition presentation. If it was misleading, QTRH would be in big trouble. Of course, past performance is not necessarily indicative of future results. I'll go with the information in the presentation, as it's been part of all presentation, including the recent Needham and ATB sessions

[Justhalffull]

your  comprehension skills lack.  The numbers you quote are the CUSTOMER revenues versus original contract.  They are NOT ETC,s revenue.  There Is nothing misleading about the presentation, and I did not say there was.  only your misinterpretation of it.  If company X paid 10,000,000 for a tolling system they  could expect $88,000,000 in revenue. As nothing to do

[cabbieJBJ]

My comprehension skills are just fine.  You reading skills are obviously still developing (isn't that what the job performance says instead of failure).  You can try again to read the headline on slide 14.  I'll enlarge it in case it's your eyesight and not your reading that's the problem: Average contract duration of 12 years and 8.8x total lifetime revenue vs

[Justhalffull]

Please do put me on ignore.  I'll do the same.  Tired of listening to your pie in the sky dreaming about this POS.  Watch the numbers coming soon.  It will send a message to all but you. Click on one of my posts, and open it.  Right my nickname is a button labelled User Actions. Click it and select "ignore this user".