Anterix Inc. Reports Fourth Quarter and Full Fiscal Year 2023 Results
WOODLAND PARK, N.J., June 14, 2023 /PRNewswire/ -- Anterix (NASDAQ: ATEX) today announced its fiscal 2023 fourth quarter and full fiscal year financial results and filed its 10-K for the year ended March 31, 2023.
Full Year FY2023 Financial Highlights
– Cash and cash equivalents of $43.2 million as of March 31, 2023
– Executed a new spectrum lease agreement with Xcel Energy for a total of $80.0 million, of which $8.0 million was received in December 2022
– Exchanged narrowband for broadband licenses in 84 counties and recorded a gain on exchange of narrowband licenses for broadband licenses of $38.4 million
– Cash used from operations was $27.3 million including customer receipts of $8.2 million
– Incurred spectrum clearing costs of $25.0 million
– Contracted cash proceeds of $100.8 million due to be received in Fiscal 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/Q42023.
Commenting on the Company's progress, Rob Schwartz, President and Chief Executive Officer, said, "We continue to see utilities meaningfully demonstrating intent to pursue 900 MHz private wireless broadband networks, further validating the demand for our unique offering, and increasing our confidence in becoming the de facto provider of this critical capability for utilities."
About Anterix Inc.
At Anterix, we are focused on delivering transformative private broadband that enables the modernization of critical infrastructure for the energy, transportation, logistics and other sectors of our economy. 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 the private LTE solutions that support secure, resilient and customer-controlled operations. For more information, 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 March 31, 2023 and 2022 (Unaudited, thousands, except share data) | |||
March 31, | March 31, | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | $ 43,182 | $ 105,624 | |
Prepaid expenses and other current assets | 16,277 | 10,147 | |
Total current assets | 59,459 | 115,771 | |
Property and equipment, net | 3,606 | 2,949 | |
Right of use assets, net | 3,371 | 4,047 | |
Intangible assets | 202,044 | 151,169 | |
Other assets | 10,078 | 4,108 | |
Total assets | $ 278,558 | $ 278,044 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable and accrued expenses | $ 6,624 | $ 6,526 | |
Due to related parties | 533 | 120 | |
Operating lease liabilities | 1,725 | 1,512 | |
Contingent liability | 20,249 | — | |
Deferred revenue | 2,769 | 1,478 | |
Total current liabilities | 31,900 | 9,636 | |
Operating lease liabilities | 2,922 | 4,177 | |
Contingent liability | — | 20,000 | |
Deferred revenue | 57,990 | 53,200 | |
Deferred income tax | 5,440 | 4,192 | |
Other liabilities | 513 | 541 | |
Total liabilities | 98,765 | 91,746 | |
Commitments and contingencies | |||
Stockholders' equity | |||
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at March 31, 2023 and March 31, 2022 | — | — | |
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,921,999 shares issued and outstanding at March 31, 2023 and 18,377,483 shares issued and outstanding at March 31, 2022 | 2 | 2 | |
Additional paid-in capital | 518,160 | 500,125 | |
Accumulated deficit | (338,369) | (313,829) | |
Total stockholders' equity | 179,793 | 186,298 | |
Total liabilities and stockholders' equity | $ 278,558 | $ 278,044 | |
Anterix Inc. Earnings Release Tables Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data) | |||||||
Three Months Ended March 31, | Year Ended March 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Spectrum revenue | $ 608 | $ 335 | $ 1,919 | $ 1,084 | |||
Operating expenses | |||||||
Direct cost of revenue (exclusive of depreciation and amortization) | — | — | — | 5 | |||
General and administrative | 10,306 | 9,751 | 45,177 | 39,525 | |||
Sales and support | 1,948 | 1,150 | 5,733 | 4,461 | |||
Product development | 1,427 | 767 | 4,439 | 3,593 | |||
Depreciation and amortization | 313 | 454 | 1,420 | 1,450 | |||
Operating expenses | 13,994 | 12,122 | 56,769 | 49,034 | |||
Gain from disposal of intangible assets, net | (29,070) | (979) | (38,399) | (11,209) | |||
Loss (gain) from disposal of long-lived assets, net | 9 | (4) | 10 | 107 | |||
Gain (loss) from operations | 15,675 | (10,804) | (16,461) | (36,848) | |||
Interest income | 470 | 1 | 1,140 | 56 | |||
Other income | 34 | 59 | 266 | 256 | |||
Income (loss) before income taxes | 16,179 | (10,744) | (15,055) | (36,536) | |||
Income tax expense | 637 | 273 | 1,262 | 983 | |||
Net income (loss) | $ 15,542 | $ (11,017) | $ (16,317) | $ (37,519) | |||
Net income (loss) per common share basic and diluted | $ 0.82 | $ (0.60) | $ (0.87) | $ (2.07) | |||
Weighted-average common shares used to compute basic and diluted net loss per share | 18,846,656 | 18,391,538 | 18,841,049 | 18,142,828 | |||
Anterix Inc. Earnings Release Tables Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||||||
Three Months Ended March 31, | Year Ended March 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ 15,542 | $ (11,017) | $ (16,317) | $ (37,519) | |||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities | |||||||
Depreciation and amortization | 313 | 454 | 1,420 | 1,450 | |||
Non-cash compensation expense attributable to stock awards | 4,463 | 3,578 | 17,874 | 13,625 | |||
Deferred income taxes | 635 | 273 | 1,248 | 983 | |||
Gain from disposal of intangible assets, net | (29,070) | (979) | (38,399) | (11,209) | |||
Loss (gain) from disposal of long-lived assets, net | 9 | (4) | 10 | 107 | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | — | — | — | 4 | |||
Prepaid expenses and other assets | (202) | (682) | 464 | (797) | |||
Right of use assets | 196 | 209 | 676 | 1,053 | |||
Accounts payable and accrued expenses | 58 | (258) | 101 | 270 | |||
Due to related parties | 413 | (40) | 413 | (32) | |||
Operating lease liabilities | (295) | (295) | (1,042) | (1,382) | |||
Contingent liability | — | — | 249 | — | |||
Deferred revenue | (608) | (335) | 6,081 | 51,695 | |||
Other liabilities | (28) | (28) | (28) | (335) | |||
Net cash (used in) provided by operating activities | (8,574) | (9,124) | (27,250) | 17,913 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of intangible assets, including refundable deposits | (5,935) | (10,328) | (25,004) | (26,358) | |||
Purchases of equipment | (583) | (801) | (2,126) | (1,053) | |||
Net cash used in investing activities | (6,518) | (11,129) | (27,130) | (27,411) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from stock option exercises | 854 | 1,082 | 1,726 | 14,004 | |||
Repurchase of common stock | — | (2,969) | (8,223) | (14,962) | |||
Payments of withholding tax on net issuance of restricted stock | (91) | — | (1,565) | (1,458) | |||
Net cash provided by (used in) financing activities | 763 | (1,887) | (8,062) | (2,416) | |||
Net change in cash and cash equivalents | (14,329) | (22,140) | (62,442) | (11,914) | |||
CASH AND CASH EQUIVALENTS | |||||||
Beginning of the year | 57,511 | 127,764 | 105,624 | 117,538 | |||
End of the year | $ 43,182 | $ 105,624 | $ 43,182 | $ 105,624 | |||
Anterix Inc. Earnings Release Tables Other Financial Information (Unaudited, in thousands except per share data) | |||||||
Share Repurchase Program | Three Months Ended March 31, | Year Ended March 31, | |||||
2023 | 2022 | 2023 | 2022 | ||||
Number of shares repurchased and retired | — | 52 | 216 | 252 | |||
Average price paid per share* | $ — | $ 57.35 | $ 47.05 | $ 57.50 | |||
Total cost to repurchase | $ — | $ 2,969 | $ 8,223 | $ 14,962 | |||
* Average price paid per share includes costs associated with the repurchases. | |||||||
As of March 31, 2023, $26.8 million is remaining under the share repurchase program. | |||||||
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SOURCE Anterix Inc.