Release Details

ANTERIX INC. REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS

November 13, 2024
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WOODLAND PARK, N.J., Nov. 13, 2024 /PRNewswire/ -- Anterix (NASDAQ: ATEX) today announced its second quarter fiscal 2025 results and filed its Form 10-Q for the three and six months ended September 30, 2024. 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/Q22025/.

"Our results in the second quarter of fiscal 2025 reflect Anterix's strong market positioning and continued progress in our journey to drive 900 MHz private wireless broadband networks throughout the utility sector. In my first month as President and CEO at Anterix, I have been impressed by our team and the upcoming opportunities for our group. I see an incredible runway for Anterix to grow, with the value of private broadband networks to utilities being stronger than I have ever seen across my 30-year career," commented Scott Lang, Anterix President and CEO.

"Looking ahead, I am extremely encouraged by our active customer pipeline and the discussions ongoing with prospective clients. In the coming months, we plan to have a dedicated focus on a number of key objectives from enhancing pipeline relationships and innovating our customer approach. The future is bright at Anterix, and I look forward to updating the market on our progress in the quarters ahead."

Financial and Operational Highlights

  • Cash and cash equivalents of $43.1 million as of September 30, 2024
  • Received a $7.5 million milestone payment from Ameren Corporation
  • Approximately $168 million of contracted proceeds due to be received with $110 million expected through fiscal 2026
  • Spectrum clearing costs of $5.5 million
  • Approximately $3 billion pipeline of prospective contract opportunities across 60+ potential customers

Liquidity and Balance Sheet

At September 30, 2024, Anterix had no debt and cash and cash equivalents of $43.1 million. In addition, the Company had a restricted cash balance of $7.6 million in escrow deposits.

The Company has an authorized share repurchase program for up to $250.0 million of the Company's common stock on or before September 21, 2026. In the fiscal second quarter of 2025, Anterix did not have any share repurchase activity and approximately $234.0 million remains under the current share repurchase program as of September 30, 2024.

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 Thursday November 14, 2024. Interested parties can participate in the call by dialing 1-833-816-1120 and asking the operator to be joined into the Anterix call. International callers should dial 1-412-317-1861. 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 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 Alaska, Hawaii, and Puerto Rico, we are uniquely positioned to enable private wireless broadband 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)

 
 

September 30, 2024

 

March 31, 2024

 

(Unaudited)

  

ASSETS

   

Current assets

   

Cash and cash equivalents

$                 43,129

 

$                 60,578

Spectrum receivable

12,063

 

8,521

Prepaid expenses and other current assets

1,582

 

3,912

Total current assets

56,774

 

73,011

Escrow deposits

7,608

 

7,546

Property and equipment, net

1,726

 

2,062

Right of use assets, net

4,987

 

4,432

Intangible assets

221,863

 

216,743

Deferred broadband costs

23,759

 

19,772

Other assets

520

 

1,328

Total assets

$               317,237

 

$               324,894

LIABILITIES AND STOCKHOLDERS' EQUITY

   

Current liabilities

   

Accounts payable and accrued expenses

$                   7,086

 

$                   8,631

Operating lease liabilities

1,806

 

1,850

Contingent liability

1,000

 

1,000

Deferred revenue

5,915

 

6,470

Total current liabilities

15,807

 

17,951

Operating lease liabilities

3,845

 

3,446

Contingent liability

25,000

 

15,000

Deferred revenue

120,712

 

115,742

Deferred gain on sale of intangible assets

4,911

 

4,911

Deferred income tax

7,670

 

6,281

Other liabilities

229

 

531

Total liabilities

178,174

 

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 September 30, 2024 and March 31, 2024

—

 

—

Common stock, $0.0001 par value per share, 100,000,000 shares authorized and
18,618,271 shares issued and outstanding at September 30, 2024 and 18,452,892
shares issued and outstanding at March 31, 2024

2

 

2

Additional paid-in capital

541,551

 

533,203

Accumulated deficit

(402,490)

 

(372,173)

Total stockholders' equity

139,063

 

161,032

Total liabilities and stockholders' equity

$               317,237

 

$               324,894

 

Anterix Inc.

Earnings Release Tables

Consolidated Statements of Operations

(Unaudited, in thousands, except share and per share data)

 
 

Three months ended September 30,

 

Six months ended September 30,

 

2024

 

2023

 

2024

 

2023

Spectrum revenue

$             1,551

 

$              1,052

 

$              3,076

 

$              1,660

Operating expenses

       

General and administrative

11,397

 

11,905

 

24,248

 

23,578

Sales and support

1,357

 

1,310

 

3,207

 

2,585

Product development

1,776

 

1,147

 

3,526

 

2,216

Depreciation and amortization

151

 

209

 

330

 

455

Operating expenses

14,681

 

14,571

 

31,311

 

28,834

Gain on disposal of intangible assets, net

—

 

(8,513)

 

(93)

 

(19,298)

Gain on sale of intangible assets, net

—

 

(7,332)

 

—

 

(7,332)

Loss from disposal of long-lived assets, net

—

 

67

 

—

 

36

(Loss) gain from operations

(13,130)

 

2,259

 

(28,142)

 

(580)

Interest income

585

 

396

 

1,279

 

782

Other income

9

 

63

 

25

 

158

(Loss) income before income taxes

(12,536)

 

2,718

 

(26,838)

 

360

Income tax expense

230

 

645

 

1,452

 

405

Net (loss) income

$         (12,766)

 

$              2,073

 

$          (28,290)

 

$                 (45)

Net (loss) income per common share basic

$              (0.69)

 

$                0.11

 

$              (1.53)

 

$                   —

Net (loss) income per common share diluted

$              (0.69)

 

$                0.11

 

$              (1.53)

 

$                   —

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

18,586,075

 

18,921,126

 

18,531,169

 

18,935,929

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

18,586,075

 

19,109,394

 

18,531,169

 

18,935,929

 

Anterix Inc.

 

Earnings Release Tables

 

Consolidated Statements of Cash Flows

 

(Unaudited, in thousands)

 
  
 

Three months ended September 30,

 

Six months ended September 30,

 

2024

 

2023

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES

       

Net loss (income)

$          (12,766)

 

$              2,073

 

$          (28,290)

 

$                 (45)

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

       

Depreciation and amortization

151

 

209

 

330

 

455

Stock compensation expense

3,408

 

3,838

 

7,754

 

8,103

Deferred income taxes

332

 

645

 

1,389

 

373

Right of use assets

398

 

262

 

832

 

545

Gain on disposal of intangible assets, net

—

 

(8,513)

 

(93)

 

(19,298)

Gain on sale of intangible assets, net

—

 

(7,332)

 

—

 

(7,332)

Loss from disposal of long-lived assets, net

—

 

67

 

—

 

36

Changes in operating assets and liabilities

       

Prepaid expenses and other assets

551

 

225

 

1,525

 

788

Accounts payable and accrued expenses

21

 

(795)

 

(1,537)

 

374

Due to related parties

—

 

—

 

—

 

(533)

Operating lease liabilities

(501)

 

(371)

 

(1,032)

 

(759)

Contingent liability

—

 

—

 

10,000

 

—

Deferred revenue

5,940

 

20,114

 

4,415

 

19,506

Other liabilities

(182)

 

—

 

(302)

 

—

Net cash (used in) provided by operating 
activities

(2,648)

 

10,422

 

(5,009)

 

2,213

CASH FLOWS FROM INVESTING ACTIVITIES

       

Purchases of intangible assets, including refundable 
deposits, retuning costs and swaps

(5,504)

 

(4,907)

 

(10,904)

 

(10,077)

Proceeds from sale of spectrum

—

 

25,178

 

—

 

25,178

Purchases of equipment

(41)

 

(187)

 

(41)

 

(212)

Net cash (used in) provided by investing
activities

(5,545)

 

20,084

 

(10,945)

 

14,889

CASH FLOWS FROM FINANCING ACTIVITIES

       

Proceeds from stock option exercises

343

 

—

 

1,960

 

7

Repurchases of common stock

—

 

(10,735)

 

(2,027)

 

(10,735)

Payments of withholding tax on net issuance of 
restricted stock

(705)

 

(270)

 

(1,366)

 

(1,022)

Net cash used in financing activities

(362)

 

(11,005)

 

(1,433)

 

(11,750)

Net change in cash and cash equivalents 
and restricted cash

(8,555)

 

19,501

 

(17,387)

 

5,352

CASH AND CASH EQUIVALENTS AND 
RESTRICTED CASH

       

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

59,292

 

29,033

 

68,124

 

43,182

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

$           50,737

 

$           48,534

 

$           50,737

 

$           48,534

SUPPLEMENTAL DISCLOSURE OF CASH 
FLOW INFORMATION

       

Cash paid during the period:

       

Taxes paid

$                 885

 

$                     1

 

$                 885

 

$                     1

Operating leases paid

$                 606

 

$                 578

 

$              1,199

 

$              1,152

Non-cash investing activity:

       

Network equipment provided in exchange for 
wireless licenses

$                   —

 

$                 130

 

$                   47

 

$                 568

Deferred gain on sale of intangible assets

$                   —

 

$              4,889

 

$                   —

 

$              4,889

Derecognition of contingent liability related to sale 
of intangible assets

$                   —

 

$            18,840

 

$                   —

 

$            18,840

Right of use assets new leases

$                   42

 

$                   41

 

$                 290

 

$                 106

Right of use assets modifications and renewals

$                 850

 

$                   55

 

$              1,097

 

$                   55

 

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:

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

Cash and cash equivalents

$                 43,129

 

$             51,715

 

$                 60,578

 

Escrow deposits

7,608

 

7,577

 

7,546

 

Total cash and cash equivalents and restricted cash

$                 50,737

 

$             59,292

 

$                 68,124

 
       
 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

Cash and cash equivalents

$                 48,534

 

$             29,033

 

$                 43,182

 

Escrow deposits

—

 

—

 

—

 

Total cash and cash equivalents and restricted cash

$                 48,534

 

$             29,033

 

$                 43,182

 

 

Anterix Inc.

Earnings Release Tables

Other Financial Information

(Unaudited, in thousands except per share data)

 
 

Three months ended September 30,

 

Six months ended September 30,

 

2024

 

2023

 

2024

 

2023

Number of shares repurchased and retired

—

 

333

 

63

 

333

Average price paid per share*

$                   —

 

$              32.69

 

$              32.47

 

$              32.69

Total cost to repurchase

$                   —

 

$           10,735

 

$              2,027

 

$           10,735

  

*

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

As of September 30, 2024, $234.0 million is remaining under the share repurchase program.

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SOURCE Anterix Inc.