ANTERIX INC. REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS

Rhea-AI Summary

Anterix (ATEX) reported its Q2 FY2025 results with key financial highlights including $43.1 million in cash and cash equivalents, and a $7.5 million milestone payment received from Ameren The company has $168 million in contracted proceeds, with $110 million expected through fiscal 2026. Spectrum clearing costs were $5.5 million. The company maintains a pipeline of approximately $3 billion in prospective contract opportunities across 60+ potential customers. Anterix has no debt and holds $7.6 million in restricted cash balance. The company's share repurchase program has $234.0 million remaining through September 2026.

Positive

• Strong cash position with $43.1 million in cash and no debt
• Secured $7.5 million milestone payment from Ameren
• $168 million in contracted proceeds with $110 million expected through fiscal 2026
• $3 billion pipeline of prospective contract opportunities

Negative

• Incurred $5.5 million in spectrum clearing costs
• No share repurchase activity during Q2 FY2025

Insights

Financial Analyst

The Q2 FY2025 results reveal a mixed financial picture for Anterix. The company maintains a strong cash position of $43.1 million with no debt, supplemented by a $7.6 million restricted cash balance. The receipt of a $7.5 million milestone payment from Ameren demonstrates progress in monetizing their spectrum assets.

The pipeline looks promising with $3 billion in potential contract opportunities across 60+ customers and $168 million in contracted proceeds pending, with $110 million expected through fiscal 2026. However, spectrum clearing costs of $5.5 million continue to impact profitability. The substantial remaining share repurchase authorization of $234 million provides potential support for the stock price, though no buybacks were executed this quarter.

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 no shares outstanding at September 30, 2024 and March 31, 2024	—		—
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,618,271 shares issued and outstanding at September 30, 2024 and 18,452,892 shares issued and outstanding at March 31, 2024	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 basic net (loss) income per share	18,586,075		18,921,126		18,531,169		18,935,929
Weighted-average common shares used to compute diluted net (loss) income per share	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) provided by operating activities
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 activities	(2,648)		10,422		(5,009)		2,213
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets, including refundable deposits, retuning costs and swaps	(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 activities	(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 restricted stock	(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 and restricted cash	(8,555)		19,501		(17,387)		5,352
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash at beginning of the period	59,292		29,033		68,124		43,182
Cash and cash equivalents and restricted cash at end of the period	$           50,737		$           48,534		$           50,737		$           48,534
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
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 wireless licenses	$                   —		$                 130		$                   47		$                 568
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
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.

FAQ

What is Anterix (ATEX) cash position as of Q2 FY2025?

Anterix had $43.1 million in cash and cash equivalents with no debt, plus $7.6 million in restricted cash balance as of September 30, 2024.

How much is Anterix (ATEX) expected to receive in contracted proceeds?

Anterix has $168 million in contracted proceeds due to be received, with $110 million expected through fiscal 2026.

What is the size of Anterix (ATEX) potential contract pipeline?

Anterix has approximately $3 billion in prospective contract opportunities across more than 60 potential customers.

How much remains in Anterix (ATEX) share repurchase program?

Approximately $234.0 million remains under the current share repurchase program, which extends through September 21, 2026.