Anterix Inc. Reports Third Quarter Fiscal Year 2024 Results

February 14, 2024

WOODLAND PARK, N.J., Feb. 14, 2024 /PRNewswire/ -- Anterix (NASDAQ: ATEX) today announced its third quarter fiscal 2024 results and filed its 10-Q for the three and nine months ended December 31, 2023.

Third quarter fiscal 2024 Financial Highlights

  • Cash and cash equivalents of $62.0 million as of December 31, 2023
  • Executed a new spectrum lease agreement with a Florida utility for a total of $34.5 million, of which $6.9 million was received in December 2023
  • Exchanged narrowband for broadband licenses in 10 counties and recorded a gain on exchange of narrowband licenses for broadband licenses of $13.7 million
  • Repurchased $8.0 million of ATEX stock
  • Incurred spectrum clearing costs of $4.7 million

The Company also issued an update on its Demonstrated Intent metric which can be found on Anterix's website at 
https://www.investors.anterix.com/Q32024.  

About Anterix Inc. 

At Anterix, we partner 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)



December 31, 2023


March 31, 2023


(Unaudited)



ASSETS




Current Assets




Cash and cash equivalents

$                 62,033


$                 43,182

Prepaid expenses and other current assets

15,816


16,277

Total current assets

77,849


59,459

Escrow deposits

7,517


Property and equipment, net

2,129


3,606

Right of use assets, net

4,629


3,371

Intangible assets

213,719


202,044

Other assets

15,037


10,078

Total assets

$               320,880


$               278,558

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable and accrued expenses

$                   8,212


$                   6,624

Due to related parties


533

Operating lease liabilities

1,888


1,725

Contingent liability

1,000


20,249

Deferred revenue

6,163


2,769

Total current liabilities

17,263


31,900

Operating lease liabilities

3,700


2,922

Contingent liability

15,000


Deferred revenue

100,897


57,990

Deferred gain on sale of intangible assets

4,911


Deferred income tax

6,332


5,440

Other liabilities

513


513

Total liabilities

148,616


98,765

Commitments and contingencies




Stockholders' equity




Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and
no shares outstanding at December 31, 2023 and March 31, 2023


Common stock, $0.0001 par value per share, 100,000,000 shares authorized and
18,554,424 shares issued and outstanding at December 31, 2023 and 18,921,999
shares issued and outstanding at March 31, 2023

2


2

Additional paid-in capital

529,054


518,160

Accumulated deficit

(356,792)


(338,369)

Total stockholders' equity

172,264


179,793

Total liabilities and stockholders' equity

$               320,880


$               278,558

 

Anterix Inc.
Earnings Release Tables
Consolidated Statements of Operations 
(Unaudited, in thousands, except share and per share data)



Three months ended December 31,


Nine months ended December 31,


2023


2022


2023


2022

Spectrum revenues

$              1,271


$                 578


$              2,931


$              1,311









Operating expenses








General and administrative

11,252


12,085


34,830


34,871

Sales and support

1,380


1,385


3,965


3,785

Product development

1,238


936


3,454


3,012

Depreciation and amortization

198


373


653


1,107

Operating expenses

14,068


14,779


42,902


42,775

Gain on disposal of intangible assets, net

(13,737)


(5,776)


(33,035)


(9,329)

Gain on sale of intangible assets, net

(32)



(7,364)


Loss (gain) on disposal of long-lived assets, net

3


(21)


39


1

Gain (loss) from operations

969


(8,404)


389


(32,136)

Interest income

666


409


1,448


670

Other income

31


185


189


232

Income (loss) before income taxes

1,666


(7,810)


2,026


(31,234)

Income tax expense

1,338


210


1,743


625

Net income (loss)

$                 328


$            (8,020)


$                 283


$          (31,859)

Net income (loss) per common share basic

$                0.02


$              (0.42)


$                0.02


$              (1.69)

Net income (loss) per common share diluted

$                0.02


$              (0.42)


$                0.01


$              (1.69)

Weighted-average common shares used to compute
basic net income (loss) per share

18,704,400


18,930,594


18,858,472


18,834,991

Weighted-average common shares used to compute
diluted net income (loss) per share

18,916,246


18,930,594


19,082,867


18,834,991

 

Anterix Inc.
Earnings Release Tables
Consolidated Statements of Cash Flows
(Unaudited, in thousands)



Three months ended December 31,


Nine months ended December 31,


2023


2022


2023


2022

CASH FLOWS FROM OPERATING ACTIVITIES








Net income (loss)

$                  328


$             (8,020)


$                  283


$           (31,859)

Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities








Depreciation and amortization

198


373


653


1,107

Non-cash compensation expense attributable to stock awards

3,921


4,592


12,024


13,411

Deferred income taxes

519


210


892


613

Gain on disposal of intangible assets, net

(13,737)


(5,776)


(33,035)


(9,329)

Gain on sale of intangible assets, net

(32)



(7,364)


Loss (gain) on disposal of long-lived assets, net

3


(21)


39


1

Changes in operating assets and liabilities








Prepaid expenses and other assets

(466)


(597)


322


666

Right of use assets

(1,803)


(38)


(1,258)


480

Accounts payable and accrued expenses

1,214


1,175


1,588


43

Due to related parties



(533)


Operating lease liabilities

1,700


(48)


941


(747)

Contingent Liability

15,000



15,000


249

Deferred revenue

26,795


7,422


46,301


6,689

Net cash provided by (used in) investing activities

33,640


(728)


35,853


(18,676)

CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of intangible assets, including refundable deposits

(4,732)


(7,841)


(14,809)


(19,069)

Proceeds from sale of spectrum

249



25,427


Purchases of equipment

(55)


(398)


(267)


(1,543)

Net cash (used in) provided by operating activities

(4,538)


(8,239)


10,351


(20,612)

CASH FLOWS FROM FINANCING ACTIVITIES








Proceeds from stock option exercises



7


872

Repurchase of common stock

(7,971)


(3,498)


(18,706)


(8,223)

Payments of withholding tax on net issuance of restricted
stock

(115)


(138)


(1,137)


(1,474)

Net cash used in financing activities

(8,086)


(3,636)


(19,836)


(8,825)

Net change in cash and cash equivalents and
restricted cash

21,016


(12,603)


26,368


(48,113)

CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH








Cash and cash equivalents and restricted cash at beginning
of the period

48,534


70,114


43,182


105,624

Cash and cash equivalents and restricted cash at end of the
period

$             69,550


$             57,511


$             69,550


$             57,511

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION








Cash paid during the period:








Taxes paid

$                    —


$                    —


$                      1


$                    12

Non-cash investing activity:








Network equipment provided in exchange for wireless
licenses

$                    48


$                      1


$                  616


$                    30

Deferred gain on sale of intangible assets

$                    22


$                    —


$               4,911


$                    —

Derecognition of contingent liability related to sale of
intangible assets

$                  409


$                    —


$             19,249


$                    —

 

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:



December 31, 2023


September 30, 2023


March 31, 2023

Cash and cash equivalents


$                       62,033


$                       48,534


$                       43,182

Escrow deposits


7,517



Total cash and cash equivalents and restricted cash


$                       69,550


$                       48,534


$                       43,182










December 31, 2022


September 30, 2022


March 31, 2022

Cash and cash equivalents


$                       57,511


$                       70,114


$                     105,624

Escrow deposits




Total cash and cash equivalents and restricted cash


$                       57,511


$                       70,114


$                     105,624

 

Anterix Inc.
Earnings Release Tables
Other Financial Information
(Unaudited, in thousands except per share data)



Three Months Ended December 31,


Nine Months Ended December 31,


2023


2022


2023


2022

Number of shares repurchased and retired

230


106


563


216

Average price paid per share*

$              34.77


$              33.11


$             33.62


$              47.05

Total cost to repurchase

$              7,971


$              3,498


$           18,706


$              8,223

*         Average price paid per share includes costs associated with the repurchases.


As of December 31, 2023, $242.0 million is remaining under the share repurchase program.

 

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SOURCE Anterix Inc.