Anterix Reports Fourth Quarter and Full Fiscal Year 2024 Results
WOODLAND PARK, N.J., June 26, 2024 /PRNewswire/ -- Anterix (NASDAQ: ATEX) today announced its fiscal 2024 fourth quarter and full fiscal year financial results and filed its 10-K for the year ended March 31, 2024. The Company also issued an update on its Demonstrated Intent metric which can be found on Anterix's website at http://www.investors.anterix.com/Q42024.
Full Year FY2024 Financial Highlights
- Yielded positive cash flows primarily due to $106.5 million received in contracted cash proceeds from our customers
- 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
- Entered into a $30.0 million spectrum sale agreement with Lower Colorado River Authority, of which $15.0 million was received during the year ended March 31, 2024
- Transferred the San Diego County and Imperial County broadband licenses to San Diego Gas & Electric Company and recorded a $7.4 million gain on sale of intangible assets
- Exchanged narrowband for broadband licenses in 28 counties and recorded a $35.0 million gain
- Cash and cash equivalents of $60.6 million as of March 31, 2024
- Returned $24.7 million to stockholders through share repurchases
- Spectrum clearing investment of $17.0 million
Fourth Quarter FY2024 Financial Highlights
- Received a $16.8 million milestone payment from Xcel Energy
- Exchanged narrowband for broadband licenses in 4 counties and recorded a $2.0 million gain
- Returned $6.0 million to stockholders through share repurchases
- Spectrum clearing investment of $2.2 million
Conference Call Information
Anterix senior management will hold an analyst and investor conference call to provide a business update and discuss the company’s recently announced agreement with Oncor Electric Delivery Company at 9:00 A.M. ET on Thursday, June 27, 2024. Interested parties can participate in the call by dialing 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
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 http://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 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, 2024 and 2023 (Unaudited, thousands, except share data) | |||
March 31, 2024 | March 31, 2023 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 60,578 | $ 43,182 | |
Spectrum receivable costs | 8,521 | 13,834 | |
Prepaid expenses and other current assets | 3,912 | 2,443 | |
Total current assets | 73,011 | 59,459 | |
Escrow deposits | 7,546 | — | |
Property and equipment, net | 2,062 | 3,606 | |
Right of use assets, net | 4,432 | 3,371 | |
Intangible assets | 216,743 | 202,044 | |
Deferred broadband costs | 19,772 | 8,853 | |
Other assets | 1,328 | 1,225 | |
Total assets | $ 324,894 | $ 278,558 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable and accrued expenses | $ 8,631 | $ 6,624 | |
Due to related parties | — | 533 | |
Operating lease liabilities | 1,850 | 1,725 | |
Contingent liability | 1,000 | 20,249 | |
Deferred revenue | 6,470 | 2,769 | |
Total current liabilities | 17,951 | 31,900 | |
Operating lease liabilities | 3,446 | 2,922 | |
Contingent liability | 15,000 | — | |
Deferred revenue | 115,742 | 57,990 | |
Deferred gain on sale of intangible assets | 4,911 | — | |
Deferred income tax | 6,281 | 5,440 | |
Other liabilities | 531 | 513 | |
Total liabilities | 163,862 | 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 March 31, 2024 and March 31, 2023 | — | — | |
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,452,892 shares issued and outstanding at March 31, 2024 and 18,921,999 shares issued and outstanding at March 31, 2023 | 2 | 2 | |
Additional paid-in capital | 533,203 | 518,160 | |
Accumulated deficit | (372,173) | (338,369) | |
Total stockholders' equity | 161,032 | 179,793 | |
Total liabilities and stockholders' equity | $ 324,894 | $ 278,558 | |
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Spectrum revenue | $ 1,260 | $ 608 | $ 4,191 | $ 1,919 | |||
Operating expenses | |||||||
General and administrative | 9,593 | 10,306 | 44,423 | 45,177 | |||
Sales and support | 1,728 | 1,948 | 5,693 | 5,733 | |||
Product development | 2,243 | 1,427 | 5,697 | 4,439 | |||
Depreciation and amortization | 191 | 313 | 844 | 1,420 | |||
Operating expenses | 13,755 | 13,994 | 56,657 | 56,769 | |||
Gain from disposal of intangible assets, net | (1,989) | (29,070) | (35,024) | (38,399) | |||
Gain on sale of intangible assets, net | — | — | (7,364) | — | |||
Loss from disposal of long-lived assets, net | 5 | 9 | 44 | 10 | |||
(Loss) gain from operations | (10,511) | 15,675 | (10,122) | (16,461) | |||
Interest income | 926 | 470 | 2,374 | 1,140 | |||
Other income | 44 | 34 | 233 | 266 | |||
(Loss) income before income taxes | (9,541) | 16,179 | (7,515) | (15,055) | |||
Income tax (benefit) expense | (130) | 637 | 1,613 | 1,262 | |||
Net (loss) income | $ (9,411) | $ 15,542 | $ (9,128) | $ (16,317) | |||
Net (loss) income per common share basic | $ (0.51) | $ 0.82 | $ (0.49) | $ (0.87) | |||
Net (loss) income per common share diluted | $ (0.51) | $ 0.82 | $ (0.49) | $ (0.87) | |||
Weighted-average common shares used to compute basic net (loss) income per share | 18,483,292 | 18,846,656 | 18,765,190 | 18,841,049 | |||
Weighted-average common shares used to compute diluted net (loss) income per share | 18,483,292 | 19,062,466 | 18,765,190 | 18,841,049 | |||
Anterix Inc. | |||||||
Earnings Release Tables | |||||||
Consolidated Statements of Cash Flows | |||||||
(Unaudited, in thousands) | |||||||
Three Months Ended March 31, | Year Ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net (loss) income | $ (9,411) | $ 15,542 | $ (9,128) | $ (16,317) | |||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | |||||||
Depreciation and amortization | 191 | 313 | 844 | 1,420 | |||
Stock compensation expense | 3,483 | 4,463 | 15,507 | 17,874 | |||
Deferred income taxes | (51) | 635 | 841 | 1,248 | |||
Rights of use assets | 2,770 | 196 | 1,512 | 676 | |||
Gain from disposal of intangible assets, net | (1,989) | (29,070) | (35,024) | (38,399) | |||
Gain on sale of intangible assets, net | — | — | (7,364) | — | |||
Loss from disposal of long-lived assets, net | 5 | 9 | 44 | 10 | |||
Changes in operating assets and liabilities | |||||||
Prepaid expenses and other assets | (1,493) | (202) | (1,171) | 464 | |||
Accounts payable and accrued expenses | 348 | 58 | 1,936 | 101 | |||
Due to related parties | — | 413 | -533 | 413 | |||
Operating lease liabilities | (2,865) | (295) | (1,924) | (1,042) | |||
Contingent liability | — | — | 15,000 | 249 | |||
Deferred revenue | 15,152 | -608 | 61,453 | 6,081 | |||
Other liabilities | — | (28) | — | (28) | |||
Net cash provided by (used in) operating activities | 6,140 | (8,574) | 41,993 | (27,250) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of intangible assets, including refundable deposits, retuning costs and swaps | (2,222) | (5,935) | (17,031) | (25,004) | |||
Proceeds from sale of spectrum | — | — | 25,427 | — | |||
Purchases of equipment | (40) | (583) | (307) | (2,126) | |||
Net cash (used in) provided by investing activities | (2,262) | (6,518) | 8,089 | (27,130) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from stock option exercises | 770 | 854 | 777 | 1,726 | |||
Repurchase of common stock | (5,970) | — | (24,676) | (8,223) | |||
Payments of withholding tax on net issuance of restricted stock | (104) | (91) | (1,241) | (1,565) | |||
Net cash (used in) provided by financing activities | (5,304) | 763 | (25,140) | (8,062) | |||
Net change in cash and cash equivalents | (1,426) | (14,329) | 24,942 | (62,442) | |||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents and restricted cash at beginning of the year | 69,550 | 57,511 | 43,182 | 105,624 | |||
Cash and cash equivalents and restricted cash at end of the year | $ 68,124 | $ 43,182 | $ 68,124 | $ 43,182 | |||
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 | |||||||
March 31, 2024 | March 31, 2023 | March 31, 2022 | |||||
Cash and cash equivalents | $ 60,578 | $ 43,182 | $ 105,624 | ||||
Escrow deposits | 7,546 | — | — | ||||
Total cash and cash equivalents and restricted cash | $ 68,124 | $ 43,182 | $ 105,624 | ||||
December 31, 2023 | December 31, 2022 | ||||||
Cash and cash equivalents | $ 62,033 | $ 57,511 | |||||
Escrow deposits | 7,517 | — | |||||
Total cash and cash equivalents and restricted cash | $ 69,550 | $ 57,511 | |||||
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, | |||||
2024 | 2023 | 2024 | 2023 | ||||
Number of shares repurchased and retired | 173 | — | 736 | 216 | |||
Average price paid per share* | $ 33.80 | $ — | $ 33.72 | $ 47.05 | |||
Total cost to repurchase | $ 5,970 | $ — | $ 24,676 | $ 8,223 | |||
* Average price paid per share includes costs associated with the repurchases. |
As of March 31, 2024, $236.1 million is remaining under the share repurchase program. |
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SOURCE Anterix Inc.