WOODLAND PARK, N.J., Feb. 11, 2025 (GLOBE NEWSWIRE) -- Anterix (NASDAQ: ATEX) today announced its third quarter fiscal 2025 results and filed its Form 10-Q for the three and nine months ended December 31, 2024. The Company also issued an update on its Demonstrated Intent metric which can be found on Anterix's website at https://investors.anterix.com/Q32025.
Financial and Operational Highlights
- Tom Kuhn appointed as Executive Chairman of the Board following the retirement of Morgan O'Brien
- Industry engagement initiative announced in February 2025 to accelerate private wireless broadband opportunity
- Strategic review process initiated in February 2025 after receiving inbound interest in the Company
- Cash and cash equivalents of $28.8 million as of December 31, 2024
- Approximately $147 million of contracted proceeds outstanding with $1.0 million received from Ameren Corporation in October 2024 and $34.0 million received from Oncor Electric Delivery Company in January 2025
- Projected operating expenses run rate reduction of approximately 20% planned for fiscal 2026
- Approximately $3 billion pipeline of prospective contract opportunities across 60+ potential customers
Liquidity and Balance Sheet
At December 31, 2024, the Company had no debt and cash and cash equivalents of $28.8 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 third quarter of 2025, Anterix had share repurchase activity of $4.4 million and approximately $229.6 million remains under the current share repurchase program as of December 31, 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 Wednesday February 12, 2025. Participants interested in joining the call's live question and answer session are required to pre-register by clicking here to obtain a dial-in number and unique PIN. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast live and will be accessible on the Investor Relations section of Anterix's website at https://investors.anterix.com/events-presentations. Following the event, a replay of the call will also be available on the Anterix website.
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 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; (iii) Anterix's ability to qualify for and timely secure broadband licenses; (iv) Anterix's ability to execute on its industry engagement initiatives; (v) the timing and outcome of Anterix's strategic review process; (vi) whether Anterix will be able to identify, develop or execute on any actions as a result of its strategic review process and (vii) competition in the market for spectrum and spectrum solutions offered by Anterix. 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, 2024 | March 31, 2024 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 28,797 | $ | 60,578 | |||
| Spectrum receivable | 8,147 | 8,521 | |||||
| Escrow deposits | 198 | - | |||||
| Prepaid expenses and other current assets | 3,139 | 3,912 | |||||
| Total current assets | 40,281 | 73,011 | |||||
| Escrow deposits | 7,433 | 7,546 | |||||
| Property and equipment, net | 1,579 | 2,062 | |||||
| Right of use assets, net | 4,717 | 4,432 | |||||
| Intangible assets | 246,215 | 216,743 | |||||
| Deferred broadband costs | 25,976 | 19,772 | |||||
| Other assets | 478 | 1,328 | |||||
| Total assets | $ | 326,679 | $ | 324,894 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable and other accrued expenses | $ | 9,009 | $ | 8,631 | |||
| Accrued severance and other related charges | 2,290 | - | |||||
| Operating lease liabilities | 1,745 | 1,850 | |||||
| Contingent liability | 5,397 | 1,000 | |||||
| Deferred revenue | 5,962 | 6,470 | |||||
| Total current liabilities | 24,403 | 17,951 | |||||
| Operating lease liabilities | 3,609 | 3,446 | |||||
| Contingent liability | 22,033 | 15,000 | |||||
| Deferred revenue | 120,099 | 115,742 | |||||
| Deferred gain on sale of intangible assets | 4,911 | 4,911 | |||||
| Deferred income tax | 6,736 | 6,281 | |||||
| Other liabilities | 143 | 531 | |||||
| Total liabilities | 181,934 | 163,862 | |||||
| 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, 2024 and March 31, 2024 | - | - | |||||
| Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,586,786 shares issued and outstanding at December 31, 2024 and 18,452,892 shares issued and outstanding at March 31, 2024 | 2 | 2 | |||||
| Additional paid-in capital | 543,939 | 533,203 | |||||
| Accumulated deficit | (399,196 | ) | (372,173 | ) | |||
| Total stockholders' equity | 144,745 | 161,032 | |||||
| Total liabilities and stockholders' equity | $ | 326,679 | $ | 324,894 | |||
| Anterix Inc. Earnings Release Tables Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data) | |||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Spectrum revenue | $ | 1,566 | $ | 1,271 | $ | 4,642 | $ | 2,931 | |||||||
| Operating expenses | |||||||||||||||
| General and administrative | 9,203 | 11,252 | 33,451 | 34,830 | |||||||||||
| Sales and support | 1,309 | 1,380 | 4,516 | 3,965 | |||||||||||
| Product development | 1,120 | 1,238 | 4,646 | 3,454 | |||||||||||
| Severance and other related charges | 3,513 | - | 3,513 | - | |||||||||||
| Depreciation and amortization | 142 | 198 | 472 | 653 | |||||||||||
| Operating expenses | 15,287 | 14,068 | 46,598 | 42,902 | |||||||||||
| Gain on disposal of intangible assets, net | (20,753 | ) | (13,737 | ) | (20,846 | ) | (33,035 | ) | |||||||
| Gain on sale of intangible assets, net | - | (32 | ) | - | (7,364 | ) | |||||||||
| Loss from disposal of long-lived assets, net | - | 3 | - | 39 | |||||||||||
| Gain (loss) from operations | 7,032 | 969 | (21,110 | ) | 389 | ||||||||||
| Interest income | 434 | 666 | 1,713 | 1,448 | |||||||||||
| Other income | 10 | 31 | 35 | 189 | |||||||||||
| Income (loss) before income taxes | 7,476 | 1,666 | (19,362 | ) | 2,026 | ||||||||||
| Income tax (benefit) expense | (234 | ) | 1,338 | 1,218 | 1,743 | ||||||||||
| Net income (loss) | $ | 7,710 | $ | 328 | $ | (20,580 | ) | $ | 283 | ||||||
| Net income (loss) per common share basic | $ | 0.41 | $ | 0.02 | $ | (1.11 | ) | $ | 0.02 | ||||||
| Net income (loss) per common share diluted | $ | 0.41 | $ | 0.02 | $ | (1.11 | ) | $ | 0.01 | ||||||
| Weighted-average common shares used to compute basic net income (loss) per share | 18,609,736 | 18,704,400 | 18,557,453 | 18,858,472 | |||||||||||
| Weighted-average common shares used to compute diluted net income (loss) per share | 18,783,445 | 18,916,246 | 18,557,453 | 19,082,867 | |||||||||||
| Anterix Inc. Earnings Release Tables Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
| Net income (loss) | $ | 7,710 | $ | 328 | $ | (20,580 | ) | $ | 283 | ||||||
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities | |||||||||||||||
| Depreciation and amortization | 142 | 198 | 472 | 653 | |||||||||||
| Stock compensation expense | 2,865 | 3,921 | 10,619 | 12,024 | |||||||||||
| Deferred income taxes | (934 | ) | 519 | 455 | 892 | ||||||||||
| Right of use assets | 394 | (1,803 | ) | 1,226 | (1,258 | ) | |||||||||
| Gain on disposal of intangible assets, net | (20,753 | ) | (13,737 | ) | (20,846 | ) | (33,035 | ) | |||||||
| Gain on sale of intangible assets, net | - | (32 | ) | - | (7,364 | ) | |||||||||
| Loss from disposal of long-lived assets, net | - | 3 | - | 39 | |||||||||||
| Changes in operating assets and liabilities | |||||||||||||||
| Prepaid expenses and other assets | (260 | ) | (466 | ) | 1,265 | 322 | |||||||||
| Accounts payable and accrued expenses | 1,920 | 1,214 | 383 | 1,588 | |||||||||||
| Accrued severance and other related charges | 2,290 | - | 2,290 | - | |||||||||||
| Due to related parties | - | - | - | (533 | ) | ||||||||||
| Operating lease liabilities | (421 | ) | 1,700 | (1,453 | ) | 941 | |||||||||
| Contingent liability | - | 15,000 | 10,000 | 15,000 | |||||||||||
| Deferred revenue | (566 | ) | 26,795 | 3,849 | 46,301 | ||||||||||
| Other liabilities | (86 | ) | - | (388 | ) | - | |||||||||
| Net cash (used in) provided by operating activities | (7,699 | ) | 33,640 | (12,708 | ) | 35,853 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
| Purchases of intangible assets, including refundable deposits, retuning costs and swaps | (1,717 | ) | (4,732 | ) | (12,621 | ) | (14,809 | ) | |||||||
| Proceeds from sale of spectrum | - | 249 | - | 25,427 | |||||||||||
| Purchases of equipment | - | (55 | ) | (41 | ) | (267 | ) | ||||||||
| Net cash (used in) provided by investing activities | (1,717 | ) | (4,538 | ) | (12,662 | ) | 10,351 | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
| Proceeds from stock option exercises | - | - | 1,960 | 7 | |||||||||||
| Repurchases of common stock | (4,416 | ) | (7,971 | ) | (6,443 | ) | (18,706 | ) | |||||||
| Payments of withholding tax on net issuance of restricted stock | (477 | ) | (115 | ) | (1,843 | ) | (1,137 | ) | |||||||
| Net cash used in financing activities | (4,893 | ) | (8,086 | ) | (6,326 | ) | (19,836 | ) | |||||||
| Net change in cash and cash equivalents and restricted cash | (14,309 | ) | 21,016 | (31,696 | ) | 26,368 | |||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||||||
| Cash and cash equivalents and restricted cash at beginning of the period | 50,737 | 48,534 | 68,124 | 43,182 | |||||||||||
| Cash and cash equivalents and restricted cash at end of the period | $ | 36,428 | $ | 69,550 | $ | 36,428 | $ | 69,550 | |||||||
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||
| Cash paid during the period: | |||||||||||||||
| Taxes paid, including excise tax | $ | 173 | $ | - | $ | 1,058 | $ | 1 | |||||||
| Operating leases paid | $ | 533 | $ | 580 | $ | 1,732 | $ | 1,732 | |||||||
| Non-cash investing activity: | |||||||||||||||
| Network equipment provided in exchange for wireless licenses | $ | - | $ | 48 | $ | 47 | $ | 616 | |||||||
| Narrowband spectrum licenses received in connection with the LCRA Agreement | $ | 1,430 | $ | - | $ | 1,430 | $ | - | |||||||
| Deferred gain on sale of intangible assets | $ | - | $ | 22 | $ | - | $ | 4,911 | |||||||
| Derecognition of contingent liability related to sale of intangible assets | $ | - | $ | 409 | $ | - | $ | 19,249 | |||||||
| Right of use assets new leases | $ | - | $ | 333 | $ | 290 | $ | 439 | |||||||
| Right of use assets modifications and renewals | $ | 124 | $ | 1,830 | $ | 1,221 | $ | 1,885 | |||||||
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, 2024 | September 30, 2024 | March 31, 2024 | |||||||
| Cash and cash equivalents | $ | 28,797 | $ | 43,129 | $ | 60,578 | |||
| Escrow deposits | 7,631 | 7,608 | 7,546 | ||||||
| Total cash and cash equivalents and restricted cash | $ | 36,428 | $ | 50,737 | $ | 68,124 | |||
| 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 | |||
| 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, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Number of shares repurchased and retired | 132 | 230 | 195 | 563 | |||||||
| Average price paid per share* | $ | 33.59 | $ | 34.77 | $ | 32.83 | $ | 33.62 | |||
| Total cost to repurchase | $ | 4,416 | $ | 7,971 | $ | 6,443 | $ | 18,706 | |||
* Average price paid per share includes costs associated with the repurchases.
As of December 31, 2024, $229.6 million is remaining under the share repurchase program.
