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.
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 2 2
18,554,424 shares issued and outstanding at December 31, 2023 and 18,921,999
shares issued and outstanding at March 31, 2023
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 Nine months ended December
31, 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
basic net income (loss) per share
Weighted-average common shares used to compute 18,916,246 18,930,594 19,082,867 18,834,991
diluted net income (loss) per share
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 (115) (138) (1,137) (1,474)
stock
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)
restricted cash
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH
Cash and cash equivalents and restricted cash at beginning 48,534 70,114 43,182 105,624
of the period
Cash and cash equivalents and restricted cash at end of the $69,550 $57,511 $69,550 $57,511
period
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 $48 $1 $616 $30
licenses
Deferred gain on sale of intangible assets $22
$ - $4,911
$ -
Derecognition of contingent liability related to sale of $409
$ - $19,249
$ -
intangible assets
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.
