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Anterix Inc. Reports Third Quarter Fiscal Year 2025 Results

1. Anterix reported Q3 fiscal 2025 results with $28.8 million in cash. 2. Share repurchase program authorized for $250 million until September 2026. 3. Approximately $3 billion contract pipeline across 60+ customers identified. 4. Tom Kuhn appointed as Executive Chairman of the Board, signaling leadership change. 5. 20% operating expense reduction planned for fiscal 2026.

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$36.1602/11 04:14 PM EDTEvent Start
$35.9102/12 10:58 PM EDTLatest Updated
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FAQ

Why Bullish?

The strong cash position and strategic initiatives support a positive outlook, similar to previous periods of financial restructuring leading to growth.

How important is it?

The article includes critical updates on Anterix’s strategy and financial health that could directly impact investor sentiment.

Why Long Term?

Anterix's strategic review and cost-cutting measures are expected to enhance future profitability and investor confidence over the long term.

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AMRNAMRSVZ
February 11, 2025 16:05 ET  | Source: Anterix Inc. 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’BrienIndustry engagement initiative announced in February 2025 to accelerate private wireless broadband opportunityStrategic review process initiated in February 2025 after receiving inbound interest in the CompanyCash and cash equivalents of $28.8 million as of December 31, 2024Approximately $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 2025Projected operating expenses run rate reduction of approximately 20% planned for fiscal 2026Approximately $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 TablesConsolidated 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 TablesConsolidated 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 TablesConsolidated 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, 2024Cash and cash equivalents $28,797 $43,129 $60,578Escrow deposits  7,631  7,608  7,546Total cash and cash equivalents and restricted cash $36,428 $50,737 $68,124         December 31, 2023 September 30, 2023 March 31, 2023Cash and cash equivalents $62,033 $48,534 $43,182Escrow deposits  7,517  —  —Total cash and cash equivalents and restricted cash $69,550 $48,534 $43,182  Anterix Inc.Earnings Release TablesOther Financial Information(Unaudited, in thousands except per share data)  Three months ended December 31, Nine months ended December 31,  2024  2023  2024  2023Number of shares repurchased and retired 132  230  195  563Average price paid per share*$33.59 $34.77 $32.83 $33.62Total 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.

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