Anterix Inc. Reports Third Quarter Fiscal Year 2024 Results
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. | |||
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 | — | — | |
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and | 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. | |||||||
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 | 18,704,400 | 18,930,594 | 18,858,472 | 18,834,991 | |||
Weighted-average common shares used to compute | 18,916,246 | 18,930,594 | 19,082,867 | 18,834,991 | |||
Anterix Inc. | |||||||
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 | |||||||
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 | (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 | 21,016 | (12,603) | 26,368 | (48,113) | |||
CASH AND CASH EQUIVALENTS AND RESTRICTED | |||||||
Cash and cash equivalents and restricted cash at beginning | 48,534 | 70,114 | 43,182 | 105,624 | |||
Cash and cash equivalents and restricted cash at end of the | $ 69,550 | $ 57,511 | $ 69,550 | $ 57,511 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | |||||||
Cash paid during the period: | |||||||
Taxes paid | $ — | $ — | $ 1 | $ 12 | |||
Non-cash investing activity: | |||||||
Network equipment provided in exchange for wireless | $ 48 | $ 1 | $ 616 | $ 30 | |||
Deferred gain on sale of intangible assets | $ 22 | $ — | $ 4,911 | $ — | |||
Derecognition of contingent liability related to sale of | $ 409 | $ — | $ 19,249 | $ — | |||
The following tables provide a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance | ||||||
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. | |||||||
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.