Anterix Inc. Reports
First Quarter Fiscal Year 2025 Results
Woodland Park, NJ – August 6, 2024 – Anterix (NASDAQ: ATEX) today announced its first quarter fiscal 2025 results and filed its Form 10-Q for the three months ended June 30, 2024. The Company also issued an update on its Demonstrated Intent metric which can be found on Anterix’s website at www.investors.anterix.com/Q12025.
First quarter fiscal 2025 Financial Highlights
–Executed a new spectrum sale agreement with Oncor Electric Delivery Company for a total of $102.5 million, of which $10 million was received in June 2024
–Cash and cash equivalents of $51.7 million as of June 30, 2024
–Returned $2.0 million to stockholders through share repurchases
–Spectrum clearing investment of $5.4 million
–Exchanged narrowband for a broadband license in 1 county and recorded a gain on exchange of a narrowband license for a broadband license of $0.1 million
Conference Call Information
Anterix senior management will hold an analyst and investor conference call to provide a business update at 9:00 A.M. ET on Wednesday, August 7, 2024. Interested parties can participate in the call by dialing 1-888-999-6281 and asking the operator to be joined into the Anterix call. International callers should dial 1-848-280-6550. A replay of the call will be accessible on the Investor Relations section of Anterix's website at https://www.anterix.com/events/.
About Anterix Inc.
At Anterix, we work with leading utilities and technology companies to harness the power of 900 MHz broadband for modernized grid solutions. Leading an ecosystem of more than 100 members, we offer utility-first solutions to modernize the grid and solve the challenges that utilities are facing today. As the largest holder of licensed spectrum in the 900 MHz band (896-901/935-940 MHz) throughout the contiguous United States, plus Hawaii, Alaska, and Puerto Rico, we are uniquely positioned to enable private LTE solutions that support cutting-edge advanced communications capabilities for a cleaner, safer, and more secure energy future. To learn more and join the 900 MHz movement, please visit www.anterix.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events or achievements such as statements in this press release related to the Anterix’s business or financial results or outlook. Actual events or results may differ materially from those contemplated in this press release. Forward-looking statements speak only as of the date they are made and readers are cautioned not to put undue reliance on such statements, as they are subject to a number of risks and uncertainties that could cause Anterix’s actual future results to differ materially from results indicated in the forward-looking statement. Such statements are based on assumptions that could cause actual results to differ materially from those in the forward-looking statements, including: (i) the timing of payments under customer agreements, (ii) Anterix’s ability to clear the 900 MHz Broadband Spectrum on a timely basis and on commercially reasonable terms; and (iii) Anterix’s ability to qualify for and timely secure broadband licenses. Actual events or results may differ materially from those contemplated in this press release. Anterix’s filings with the Securities and Exchange Commission (“SEC”), which you may obtain for free at the SEC’s website at http://www.sec.gov, discuss some of the important risk factors that may affect the Company’s financial outlook, business, results of operations and financial condition. Anterix undertakes no obligation to update publicly or revise any forward-looking statements contained herein.
Shareholder Contact
Natasha Vecchiarelli
Vice President, Investor Relations & Corporate Communications
Anterix
973-531-4397
nvecchiarelli@anterix.com
Anterix Inc.
Earnings Release Tables
Consolidated Balance Sheets
(in thousands, except share and per share data)
| June 30, 2024 | March 31, 2024 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 51,715 | $ | 60,578 | |||||||
| Spectrum receivable | 10,999 | 8,521 | |||||||||
| Prepaid expenses and other current assets | 2,972 | 3,912 | |||||||||
| Total current assets | 65,686 | 73,011 | |||||||||
| Escrow deposits | 7,577 | 7,546 | |||||||||
| Property and equipment, net | 1,836 | 2,062 | |||||||||
| Right of use assets, net | 4,493 | 4,432 | |||||||||
| Intangible assets | 219,776 | 216,743 | |||||||||
| Deferred broadband costs | 20,458 | 19,772 | |||||||||
| Other assets | 1,312 | 1,328 | |||||||||
| Total assets | $ | 321,138 | $ | 324,894 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued expenses | $ | 7,748 | $ | 8,631 | |||||||
| Operating lease liabilities | 1,807 | 1,850 | |||||||||
| Contingent liability | 1,000 | 1,000 | |||||||||
| Deferred revenue | 5,968 | 6,470 | |||||||||
| Total current liabilities | 16,523 | 17,951 | |||||||||
| Operating lease liabilities | 3,453 | 3,446 | |||||||||
| Contingent liability | 25,000 | 15,000 | |||||||||
| Deferred revenue | 114,719 | 115,742 | |||||||||
| Deferred gain on sale of intangible assets | 4,911 | 4,911 | |||||||||
| Deferred income tax | 7,338 | 6,281 | |||||||||
| Other liabilities | 411 | 531 | |||||||||
| Total liabilities | 172,355 | 163,862 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
| Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at June 30, 2024 and March 31, 2024 | — | — | |||||||||
| Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,581,297 shares issued and outstanding at June 30, 2024 and 18,452,892 shares issued and outstanding at March 31, 2024 | 2 | 2 | |||||||||
| Additional paid-in capital | 538,505 | 533,203 | |||||||||
| Accumulated deficit | (389,724) | (372,173) | |||||||||
| Total stockholders’ equity | 148,783 | 161,032 | |||||||||
| Total liabilities and stockholders’ equity | $ | 321,138 | $ | 324,894 | |||||||
Anterix Inc.
Earnings Release Tables
Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share data)
| Three months ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Spectrum revenue | $ | 1,525 | $ | 608 | |||||||
| Operating expenses | |||||||||||
| General and administrative | 12,851 | 11,673 | |||||||||
| Sales and support | 1,850 | 1,275 | |||||||||
| Product development | 1,750 | 1,069 | |||||||||
| Depreciation and amortization | 179 | 246 | |||||||||
| Operating expenses | 16,630 | 14,263 | |||||||||
| Gain from disposal of intangible assets, net | (93) | (10,785) | |||||||||
| Gain from disposal of long-lived assets, net | — | (31) | |||||||||
| Loss from operations | (15,012) | (2,839) | |||||||||
| Interest income | 694 | 386 | |||||||||
| Other income | 16 | 95 | |||||||||
| Loss before income taxes | (14,302) | (2,358) | |||||||||
| Income tax expense (benefit) | 1,222 | (240) | |||||||||
| Net loss | $ | (15,524) | $ | (2,118) | |||||||
| Net loss per common share basic and diluted | $ | (0.84) | $ | (0.11) | |||||||
| Weighted-average common shares used to compute basic and diluted net loss per share | 18,486,964 | 18,951,046 | |||||||||
Anterix Inc.
Earnings Release Tables
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
| Three months ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (15,524) | $ | (2,118) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
| Depreciation and amortization | 179 | 246 | |||||||||
| Stock compensation expense | 4,346 | 4,265 | |||||||||
| Deferred income taxes | 1,057 | (272) | |||||||||
| Right of use assets | 434 | 283 | |||||||||
| Gain on disposal of intangible assets, net | (93) | (10,785) | |||||||||
| Gain on disposal of long-lived assets, net | — | (31) | |||||||||
| Changes in operating assets and liabilities | |||||||||||
| Prepaid expenses and other assets | 974 | 563 | |||||||||
| Accounts payable and accrued expenses | (1,558) | 1,169 | |||||||||
| Due to related parties | — | (533) | |||||||||
| Operating lease liabilities | (531) | (388) | |||||||||
| Contingent liability | 10,000 | — | |||||||||
| Deferred revenue | (1,525) | (608) | |||||||||
| Other liabilities | (120) | — | |||||||||
| Net cash used in operating activities | (2,361) | (8,209) | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Purchases of intangible assets, including refundable deposits, retuning costs and swaps | (5,400) | (5,170) | |||||||||
| Purchases of equipment | — | (25) | |||||||||
| Net cash used in investing activities | (5,400) | (5,195) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from stock option exercises | 1,617 | 7 | |||||||||
| Repurchases of common stock | (2,027) | — | |||||||||
| Payments of withholding tax on net issuance of restricted stock | (661) | (752) | |||||||||
| Net cash used in financing activities | (1,071) | (745) | |||||||||
| Net change in cash and cash equivalents and restricted cash | (8,832) | (14,149) | |||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
| Cash and cash equivalents and restricted cash at beginning of the period | 68,124 | 43,182 | |||||||||
| Cash and cash equivalents and restricted cash at end of the period | $ | 59,292 | $ | 29,033 | |||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
| Cash paid during the period: | |||||||||||
| Taxes paid | $ | — | $ | 1 | |||||||
| Operating leases paid | $ | 593 | $ | 574 | |||||||
| Non-cash investing activity: | |||||||||||
| Network equipment provided in exchange for wireless licenses | $ | 47 | $ | 438 | |||||||
| Right of use assets new leases | $ | 248 | $ | 65 | |||||||
| Right of use assets modifications and renewals | $ | 247 | $ | — | |||||||
| The following tables provide a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows: | ||||||||||||||
| June 30, 2024 | March 31, 2024 | |||||||||||||
| Cash and cash equivalents | $ | 51,715 | $ | 60,578 | ||||||||||
| Escrow deposits | 7,577 | 7,546 | ||||||||||||
| Total cash and cash equivalents and restricted cash | $ | 59,292 | $ | 68,124 | ||||||||||
| June 30, 2023 | March 31, 2023 | |||||||||||||
| Cash and cash equivalents | $ | 29,033 | $ | 43,182 | ||||||||||
| Escrow deposits | — | — | ||||||||||||
| Total cash and cash equivalents and restricted cash | $ | 29,033 | $ | 43,182 | ||||||||||
Anterix Inc.
Earnings Release Tables
Other Financial Information
(Unaudited, in thousands except per share data)
| Three months ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Number of shares repurchased and retired | 63 | — | |||||||||
| Average price paid per share* | $ | 32.47 | $ | — | |||||||
| Total cost to repurchase | $ | 2,027 | $ | — | |||||||
*Average price paid per share includes costs associated with the repurchases.
As of June 30, 2024, $234.0 million is remaining under the share repurchase program.