WOODLAND PARK, N.J.,
Nov. 13,
2023 /PRNewswire/ -- Anterix (NASDAQ: ATEX)
today announced its second quarter fiscal 2024 results and filed
its 10-Q for the three and six months ended September 30,
2023.
Second quarter fiscal 2024 Financial Highlights
- Cash and cash equivalents of $48.5
million as of September 30,
2023
- Transferred the San Diego County broadband license to San Diego
Gas & Electric Company and recorded a $7.3 million gain on sale of intangible
assets
- Exchanged narrowband for broadband licenses in 5 counties and
recorded a gain on exchange of narrowband licenses for broadband
licenses of $8.5 million
- Repurchased $10.7 million of ATEX
stock
- Incurred spectrum clearing costs of $4.9
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/Q22024.
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
(Unaudited,
thousands, except share data)
|
|
|
September 30,
2023
|
|
March 31,
2023
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
48,534
|
|
$
43,182
|
Prepaid expenses and
other current assets
|
13,578
|
|
16,277
|
Total current
assets
|
62,112
|
|
59,459
|
Property and equipment,
net
|
2,323
|
|
3,606
|
Right of use assets,
net
|
2,826
|
|
3,371
|
Intangible
assets
|
197,566
|
|
202,044
|
Other assets
|
15,049
|
|
10,078
|
Total
assets
|
$
279,876
|
|
$
278,558
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
6,998
|
|
$
6,624
|
Due to related
parties
|
—
|
|
533
|
Operating lease
liabilities
|
1,610
|
|
1,725
|
Contingent
liability
|
1,409
|
|
20,249
|
Deferred
revenue
|
5,281
|
|
2,769
|
Total current
liabilities
|
15,298
|
|
31,900
|
Operating lease
liabilities
|
2,278
|
|
2,922
|
Deferred
revenue
|
74,984
|
|
57,990
|
Deferred gain on sale
of intangible assets
|
4,889
|
|
—
|
Deferred income
tax
|
5,813
|
|
5,440
|
Other
liabilities
|
513
|
|
513
|
Total
liabilities
|
103,775
|
|
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 September 30, 2023 and March 31,
2023
|
—
|
|
—
|
Common stock, $0.0001
par value per share, 100,000,000 shares authorized and
18,768,491 shares issued and outstanding at September 30, 2023
and 18,921,999
shares issued and outstanding at March 31, 2023
|
2
|
|
2
|
Additional paid-in
capital
|
525,248
|
|
518,160
|
Accumulated
deficit
|
(349,149)
|
|
(338,369)
|
Total stockholders'
equity
|
176,101
|
|
179,793
|
Total liabilities
and stockholders' equity
|
$
279,876
|
|
$
278,558
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Spectrum
revenues
|
$
1,052
|
|
$
398
|
|
$
1,660
|
|
$
733
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
General and
administrative
|
11,905
|
|
11,427
|
|
23,578
|
|
22,786
|
Sales and
support
|
1,310
|
|
1,164
|
|
2,585
|
|
2,400
|
Product
development
|
1,147
|
|
980
|
|
2,216
|
|
2,076
|
Depreciation and
amortization
|
209
|
|
372
|
|
455
|
|
734
|
Operating
expenses
|
14,571
|
|
13,943
|
|
28,834
|
|
27,996
|
Gain on disposal of
intangible assets, net
|
(8,513)
|
|
(2,905)
|
|
(19,298)
|
|
(3,553)
|
Gain on sale of
intangible assets, net
|
(7,332)
|
|
—
|
|
(7,332)
|
|
—
|
Loss on disposal of
long-lived assets, net
|
67
|
|
20
|
|
36
|
|
22
|
Gain (loss) from
operations
|
2,259
|
|
(10,660)
|
|
(580)
|
|
(23,732)
|
Interest
income
|
396
|
|
244
|
|
782
|
|
261
|
Other income
(expense)
|
63
|
|
(12)
|
|
158
|
|
47
|
Income (loss)
before income taxes
|
2,718
|
|
(10,428)
|
|
360
|
|
(23,424)
|
Income tax
expense
|
645
|
|
215
|
|
405
|
|
415
|
Net income
(loss)
|
$
2,073
|
|
$
(10,643)
|
|
$
(45)
|
|
$
(23,839)
|
Net income (loss) per
common share basic
|
$
0.11
|
|
$
(0.56)
|
|
$
—
|
|
$
(1.27)
|
Net income (loss) per
common share diluted
|
$
0.11
|
|
$
(0.56)
|
|
$
—
|
|
$
(1.27)
|
Weighted-average common
shares used to compute basic net income (loss) per share
|
18,921,126
|
|
18,953,044
|
|
18,935,929
|
|
18,786,928
|
Weighted-average common
shares used to compute diluted net income (loss) per
share
|
19,109,394
|
|
18,953,044
|
|
18,935,929
|
|
18,786,928
|
Anterix Inc.
Earnings Release
Tables
Consolidated
Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
2,073
|
|
$
(10,643)
|
|
$
(45)
|
|
$
(23,839)
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
209
|
|
372
|
|
455
|
|
734
|
Non-cash compensation
expense attributable to stock awards
|
3,838
|
|
4,691
|
|
8,103
|
|
8,819
|
Deferred income
taxes
|
645
|
|
203
|
|
373
|
|
403
|
Gain on disposal of
intangible assets, net
|
(8,513)
|
|
(2,905)
|
|
(19,298)
|
|
(3,553)
|
Gain on sale of
intangible assets, net
|
(7,332)
|
|
—
|
|
(7,332)
|
|
—
|
Loss on disposal of
long-lived assets, net
|
67
|
|
20
|
|
36
|
|
22
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Prepaid expenses and
other assets
|
225
|
|
83
|
|
788
|
|
1,263
|
Right of use
assets
|
262
|
|
280
|
|
545
|
|
518
|
Accounts payable and
accrued expenses
|
(795)
|
|
328
|
|
374
|
|
(1,132)
|
Due to related
parties
|
—
|
|
(24)
|
|
(533)
|
|
—
|
Operating lease
liabilities
|
(371)
|
|
(372)
|
|
(759)
|
|
(699)
|
Contingent
Liability
|
—
|
|
249
|
|
—
|
|
249
|
Deferred
revenue
|
20,114
|
|
(398)
|
|
19,506
|
|
(733)
|
Net cash provided by
(used in) operating activities
|
10,422
|
|
(8,116)
|
|
2,213
|
|
(17,948)
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of intangible
assets, including refundable deposits
|
(4,907)
|
|
(4,578)
|
|
(10,077)
|
|
(11,228)
|
Proceeds from sale of
spectrum
|
25,178
|
|
—
|
|
25,178
|
|
—
|
Purchases of
equipment
|
(187)
|
|
(1,139)
|
|
(212)
|
|
(1,145)
|
Net cash provided by
(used in) investing activities
|
20,084
|
|
(5,717)
|
|
14,889
|
|
(12,373)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from stock
option exercises
|
—
|
|
—
|
|
7
|
|
872
|
Repurchase of common
stock
|
(10,735)
|
|
(2,000)
|
|
(10,735)
|
|
(4,725)
|
Payments of withholding
tax on net issuance of restricted stock
|
(270)
|
|
(509)
|
|
(1,022)
|
|
(1,336)
|
Net cash used in
financing activities
|
(11,005)
|
|
(2,509)
|
|
(11,750)
|
|
(5,189)
|
Net change in cash and
cash equivalents
|
19,501
|
|
(16,342)
|
|
5,352
|
|
(35,510)
|
CASH AND CASH
EQUIVALENTS
|
|
|
|
|
|
|
|
Beginning of the
period
|
29,033
|
|
86,456
|
|
43,182
|
|
105,624
|
End of the
period
|
$
48,534
|
|
$
70,114
|
|
$
48,534
|
|
$
70,114
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash paid during the
period:
|
|
|
|
|
|
|
|
Taxes paid
|
$
—
|
|
$
12
|
|
$
1
|
|
$
12
|
Non-cash investing
activity:
|
|
|
|
|
|
|
|
Network equipment
provided in exchange for wireless licenses
|
$
130
|
|
$
25
|
|
$
568
|
|
$
29
|
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
|
|
$
—
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Number of shares
repurchased and retired
|
333
|
|
54
|
|
333
|
|
110
|
Average price paid per
share*
|
$
32.69
|
|
$
36.73
|
|
$
32.69
|
|
$
48.42
|
Total cost to
repurchase
|
$
10,735
|
|
$
2,000
|
|
$
10,735
|
|
$
4,725
|
|
*
Average price paid per share includes costs associated with the
repurchases.
|
|
As of September 30, 2023,
$250.0 million is remaining under the share repurchase
program.
|
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SOURCE Anterix Inc.