Cision PR Newswire
ANTERIX INC. REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS
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 | — | — | |
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and | 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 | 18,586,075 | 18,921,126 | 18,531,169 | 18,935,929 | |||
Weighted-average common shares used to compute | 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) | |||||||
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 | (2,648) | 10,422 | (5,009) | 2,213 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of intangible assets, including refundable | (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 | (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 | (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 | (8,555) | 19,501 | (17,387) | 5,352 | |||
CASH AND CASH EQUIVALENTS AND | |||||||
Cash and cash equivalents and restricted cash at | 59,292 | 29,033 | 68,124 | 43,182 | |||
Cash and cash equivalents and restricted cash at | $ 50,737 | $ 48,534 | $ 50,737 | $ 48,534 | |||
SUPPLEMENTAL DISCLOSURE OF CASH | |||||||
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 | $ — | $ 130 | $ 47 | $ 568 | |||
Deferred gain on sale of intangible assets | $ — | $ 4,889 | $ — | $ 4,889 | |||
Derecognition of contingent liability related to sale | $ — | $ 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.
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