PART I. FINANCIAL INFORMATION [Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Anterix's consolidated financial statements reflect a decrease in assets, increased net losses, and negative cash flows from operations and investing activities [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$255.9 million** from **$278.0 million**, driven by reduced cash and declining equity Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2022 (Unaudited) | March 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $70,114 | $105,624 | | Intangible assets | $159,469 | $151,169 | | Total assets | $255,935 | $278,044 | | **Liabilities & Equity** | | | | Total current liabilities | $29,903 | $9,636 | | Total liabilities | $89,846 | $91,746 | | Total stockholders' equity | $166,089 | $186,298 | | Total liabilities and stockholders' equity | $255,935 | $278,044 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Net loss for the three months ended September 30, 2022, increased to **$10.6 million** due to higher operating expenses Consolidated Statements of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Six Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Spectrum revenues | $398 | $182 | $733 | $364 | | Operating expenses | $13,943 | $12,083 | $27,996 | $24,209 | | Gain from disposal of intangible assets, net | ($2,905) | ($10,230) | ($3,553) | ($10,230) | | Loss from operations | ($10,660) | ($1,707) | ($23,732) | ($13,669) | | Net loss | ($10,643) | ($1,777) | ($23,839) | ($13,787) | | Net loss per share (basic and diluted) | ($0.56) | ($0.10) | ($1.27) | ($0.77) | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to **$166.1 million** due to net loss and stock repurchases - For the six months ended September 30, 2022, total stockholders' equity decreased by approximately **$20.2 million**[20](index=20&type=chunk) - Key activities impacting equity included a **$23.8 million** net loss, **$8.8 million** in equity-based compensation, and **$4.7 million** for the retirement of common stock under the repurchase program[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating, investing, and financing activities led to a **$35.5 million** decrease in cash Cash Flow Summary (in thousands) | Activity | Six Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($17,948) | ($12,592) | | Net cash used in investing activities | ($12,373) | ($12,075) | | Net cash (used in) provided by financing activities | ($5,189) | $7,996 | | **Net change in cash and cash equivalents** | **($35,510)** | **($16,671)** | | Cash and cash equivalents, beginning of period | $105,624 | $117,538 | | Cash and cash equivalents, end of period | $70,114 | $100,866 | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies, 900 MHz spectrum commercialization, and key lease agreements - The company is the largest holder of licensed spectrum in the 900 MHz band and is focused on leasing it to utility and critical infrastructure customers for private broadband networks following the FCC's Report and Order[28](index=28&type=chunk) - During the six months ended September 30, 2022, the company began recognizing revenue of **$0.1 million** from its long-term lease agreement with Evergy after delivering cleared spectrum for 45 counties[30](index=30&type=chunk) - On October 28, 2022, after the quarter ended, the company entered into a 20-year agreement with Xcel Energy for dedicated use of its 900 MHz spectrum across eight states[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 900 MHz spectrum commercialization, increased revenues, rising expenses, and liquidity [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Spectrum revenues increased, operating expenses rose, and a reduced gain from asset disposal led to a higher loss Spectrum Revenues (in thousands) | Period | Q3 2022 | Q3 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Spectrum revenues | $398 | $182 | $216 | 119% | Operating Expenses (in thousands) | Period | Q3 2022 | Q3 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating expenses | $13,943 | $12,083 | $1,860 | 15% | - The increase in G&A expenses for Q3 2022 was primarily due to **$1.6 million** higher stock compensation expense and **$0.6 million** higher headcount and related costs[103](index=103&type=chunk) - The gain from disposal of intangible assets decreased to **$2.9 million** in Q3 2022 from **$10.2 million** in Q3 2021, as the company exchanged narrowband for broadband licenses in a different number of counties with varying cost bases[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds **$70.1 million** in cash, deemed sufficient for 12 months, and continues its share repurchase - The company holds **$70.1 million** in cash and cash equivalents as of September 30, 2022[117](index=117&type=chunk) - Net cash used in operating activities was **$17.9 million** for the six months ended September 30, 2022, compared to **$12.6 million** for the same period in 2021[120](index=120&type=chunk) - The company has a share repurchase program with **$30.3 million** remaining authorization as of September 30, 2022. For the six months ended, the company repurchased **$4.7 million** worth of stock[125](index=125&type=chunk)[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate sensitivity on cash, deemed immaterial, with no foreign currency risk - The company's main market risk is interest rate changes affecting its cash and cash equivalents, but this risk is considered immaterial due to the short-term nature of the investments[129](index=129&type=chunk) - There is no foreign currency risk as all operations and transactions are denominated in U.S. dollars[129](index=129&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2022, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[131](index=131&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[132](index=132&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings - The company is not involved in any material legal proceedings[135](index=135&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors disclosed in the 2022 Annual Report - No material changes have occurred to the risk factors disclosed in the 2022 Annual Report[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **54,450** shares, with **$30.3 million** remaining under the share repurchase program Issuer Purchases of Equity Securities (for the three months ended September 30, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining for Purchase (in thousands) | | :--- | :--- | :--- | :--- | | July 2022 | — | — | $32,313 | | August 2022 | — | — | $32,313 | | September 2022 | 54,450 | $36.73 | $30,313 | | **Total** | **54,450** | **$36.73** | **$30,313** | - The Board authorized a share repurchase program of up to **$50.0 million** on September 29, 2021, valid through September 29, 2023[139](index=139&type=chunk) [Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[140](index=140&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Not applicable[140](index=140&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No other material information was reported - None[141](index=141&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) The report lists various exhibits filed with Form 10-Q, including corporate governance documents and certifications - Exhibits filed include the Amended and Restated Certificate of Incorporation, Bylaws, CEO/CFO certifications (Rule 13a-14, 15d-14, and Section 906), and Inline XBRL data files[142](index=142&type=chunk)

Financial Data and Key Metrics Changes - At the end of the quarter, the company had $86 million in cash and approximately $50 million in remaining contracted proceeds due to be paid in the next few years, indicating a strong financial position [9][10] - The capital-efficient model allows the vast majority of contracted proceeds to result in free cash flow, with multi-decade customer lease contracts providing significant future value [9] Business Line Data and Key Metrics Changes - The company is focused on becoming the de facto private broadband solution for utilities, with a strong emphasis on closing individual deals to capture the sector [7][10] - There are over 60 prospective customers in the pipeline, demonstrating growing demand for 900 megahertz private LTE [16] Market Data and Key Metrics Changes - The company is seeing increased interest from various sectors, including pipelines, gas companies, freight rail operators, and government installations, reflecting a broader demand for private broadband networks [17] - The public industry focus on private LTE is measurable, with over 50% of the nationwide spectrum value represented by participation from utility leaders and organizations [11] Company Strategy and Development Direction - The company aims to pioneer the transformation of utility sector communication capabilities and monetize its nationwide spectrum asset [18] - The strategic focus remains on the utility sector, with ongoing efforts to address critical challenges such as grid monetization and renewable energy integration [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to close significant contracts, highlighting the complexity and evolving nature of the deals [12][19] - The company remains optimistic about achieving its target of $1.8 billion in contracted proceeds around fiscal 2024, emphasizing long-term value opportunities [41] Other Important Information - The company has established an active ecosystem program with over 80 members, indicating strong collaboration within the industry [11][51] - Legislative support, including the recent Inflation Reduction Act, reinforces the importance of the issues the company is addressing for utilities [19] Q&A Session Summary Question: Update on the fourth contract under LOI - Management clarified that there is no direct correlation between the number of LOIs discussed previously and the current four deals, indicating progress in the pipeline [20][21] Question: Commentary on Phase III of the pipeline - Management noted that the pipeline includes both parent company and operating company opportunities, with significant potential for growth [27][28] Question: Progress on the four deals since the last call - Management indicated that progress is being made across all deals, with varying timelines for completion [31][33] Question: Status of the third LOI not included in the four deals - Management confirmed that all deals remain in the pipeline, with no losses to competition, and emphasized ongoing development across all phases [38][39] Question: Competitive landscape regarding private networks - Management acknowledged increased interest from competitors but emphasized the company's leading position in the private LTE movement and its substantial market footprint [42][44]

Revenue Performance - Spectrum revenues for the three months ended June 30, 2022, were $335,000, compared to $182,000 for the same period in 2021, representing an increase of 84%[17] - Total spectrum revenue for the three months ended June 30, 2022, was $335,000, up from $182,000 in the same period in 2021, indicating a significant growth in revenue[39] - Spectrum revenues increased by $0.2 million, or 84%, to $0.3 million for the three months ended June 30, 2022, compared to $0.2 million for the same period in 2021[87] Financial Position - Total current assets decreased from $115,771,000 as of March 31, 2022, to $98,336,000 as of June 30, 2022, a decline of approximately 15%[14] - Cash and cash equivalents decreased from $105,624,000 as of March 31, 2022, to $86,456,000 as of June 30, 2022, a reduction of approximately 18%[14] - The accumulated deficit increased from $(313,829,000) as of March 31, 2022, to $(329,750,000) as of June 30, 2022, reflecting a worsening of the financial position[14] - Total liabilities decreased from $91,746,000 as of March 31, 2022, to $89,848,000 as of June 30, 2022, a decline of about 2%[14] - As of June 30, 2022, the company's noncurrent assets amounted to $397 million after accounting for prepaid expenses and other current assets[42] Operating Expenses - Operating expenses for the three months ended June 30, 2022, were $14,053,000, up from $12,126,000 in the same period of 2021, reflecting an increase of 15.9%[17] - Total operating expenses increased by $1.9 million, or 16%, to $14.1 million for the three months ended June 30, 2022, compared to $12.1 million for the same period in 2021[88] - General and administrative expenses rose by $1.6 million, or 17%, to $11.4 million for the three months ended June 30, 2022, primarily due to higher stock compensation and related costs[89] Net Loss - The net loss for the three months ended June 30, 2022, was $13,196,000, compared to a net loss of $12,010,000 for the same period in 2021, indicating a 9.9% increase in losses[17] - The company reported a loss before income taxes of $12,996,000 for the three months ended June 30, 2022, compared to a loss of $11,864,000 for the same period in 2021, an increase of 9.5%[17] - Anterix Inc. reported a net loss of $13,196,000 for the three months ended June 30, 2022, compared to a net loss of $12,010,000 for the same period in 2021, reflecting an increase in losses[23] Cash Flow - Net cash used in operating activities was $9,832,000 for the three months ended June 30, 2022, compared to $9,663,000 for the same period in 2021, showing a slight increase in cash outflow[23] - Cash and cash equivalents decreased from $106,899,000 at the end of June 30, 2021, to $86,456,000 at the end of June 30, 2022, representing a decline of approximately 19%[23] - Net cash used in investing activities increased to $6.7 million in 2022 from $6.3 million in 2021, primarily for acquiring and retuning wireless licenses[102] - Net cash used in financing activities was $2.7 million for the three months ended June 30, 2022, compared to net cash provided of $5.4 million in 2021, primarily due to treasury share repurchases[103] Shareholder Activities - The number of common shares outstanding increased from 18,377,483 as of March 31, 2022, to 18,944,391 as of June 30, 2022, an increase of approximately 3%[14] - The company repurchased $2,725,000 worth of common stock during the three months ended June 30, 2022, with no repurchases reported in the same period in 2021[23] - The company authorized a share repurchase program of up to $50.0 million, with no obligation to acquire a specific number of shares[70] - The average price paid per share for repurchased shares was $49.70, with a total cost of $2.725 million for the three months ended June 30, 2022[73] - Motorola converted 500,000 Class B Units into 500,000 shares of the company's common stock on May 18, 2022[71] Asset Management - The company acquired wireless licenses for a total cash consideration of $3.1 million during the three months ended June 30, 2022[46] - The balance of intangible assets increased from $151,169 thousand at March 31, 2022 to $154,880 thousand at June 30, 2022, reflecting acquisitions and exchanges of licenses[49] - The company recorded a gain from the disposal of intangible assets of $648,000 for the three months ended June 30, 2022, while there were no such gains reported in the same period in 2021[23] - The company recorded a $0.6 million gain from the disposal of intangible assets for the three months ended June 30, 2022, with no exchanges in the same period of 2021[92] Liabilities and Expenses - The company incurred federal and state operating losses of approximately $16.2 million and $9.7 million, respectively, for the three months ended June 30, 2022[65] - The deferred tax liabilities as of June 30, 2022, are approximately $2.4 million for federal and $2.0 million for state[64] - Rent expense for the three months ended June 30, 2022 was approximately $449 thousand, compared to $513 thousand for the same period in 2021[58] - The total future minimum lease payments as of June 30, 2022, are projected to be $6,643 thousand, with a present value of net future minimum lease payments at $5,362 thousand[63] - The weighted average term of operating lease liabilities was 3.37 years as of June 30, 2022, compared to 4.24 years in the previous year[56] Other Income and Expenses - Interest income decreased by 35%, from $26,000 in 2021 to $17,000 in 2022[94] - Other income decreased by 18%, from $72,000 in 2021 to $59,000 in 2022[94] - Income tax expense increased by 37%, from $146,000 in 2021 to $200,000 in 2022[94] - Loss from the disposal of long-lived assets decreased by 89%, from $18,000 in 2021 to $2,000 in 2022[93] - Product development expenses increased by $0.1 million, or 9%, to $1.1 million for the three months ended June 30, 2022, compared to $1.0 million for the same period in 2021[91] Strategic Initiatives - Anterix Inc. is the largest holder of licensed spectrum in the 900 MHz band, with nationwide coverage across the contiguous United States, Hawaii, Alaska, and Puerto Rico[25] - The company is actively pursuing opportunities to lease its broadband spectrum to targeted utility and critical infrastructure customers[25] - The company recorded a contingent liability of $20.0 million related to an upfront payment received from SDG&E for the sale of 900 MHz Broadband Spectrum[76] - The company has 775,332 shares available for future issuance under the 2014 Stock Plan as of June 30, 2022[67] - The company issued 122,624 shares in connection with the vesting and exercise of grants under the 2014 Stock Plan for the three months ended June 30, 2022[68]

Anterix Inc. (NASDAQ:ATEX) Q4 2022 Earnings Conference Call May 20, 2022 8:30 AM ET Company Participants Natasha Vecchiarelli – Vice President of Investor Relations and Corporate Communications Rob Schwartz – President and Chief Executive Officer Tim Gray – Chief Financial Officer Ryan Gerbrandt – Chief Operating Officer Chris Guttman-McCabe – Chief Regulatory and Communications Officer Conference Call Participants Walter Piecyk – LightShed Phil Cusick – JPMorgan Simon Flannery – Morgan Stanley Mike Crawfor ...

Anterix Inc. (NASDAQ:ATEX) Q3 2022 Earnings Conference Call February 3, 2022 5:00 PM ET Company Participants Tim Gray - CFO Rob Schwartz - President & CEO Ryan Gerbrandt - COO Chris Guttman-McCabe - Chief Regulatory and Communications Officer Conference Call Participants Simon Flannery - Morgan Stanley Walter Piecyk - LightShed Partners Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you na ...

Anterix Inc. (NASDAQ:ATEX) Q2 2022 Earnings Conference Call November 3, 2021 4:45 PM ET Company Participants Natasha Vecchiarelli - Director of Investor Relations & Corporate Communications Rob Schwartz - President & Chief Executive Officer Tim Gray - Chief Financial Officer Ryan Gerbrandt - Chief Operating Officer Conference Call Participants Chase White - Height Capital Katherine Knop - B. Riley Walter Piecyk - LightShed Partners George Sutton - Craig-Hallum Capital Operator Good afternoon, ladies and gen ...

Financial Data and Key Metrics Changes - The prospective customer pipeline now includes over 50 utilities with a total potential prepaid contract value of about $3 billion, indicating significant growth in contract value expectations [8][9] - The company forecasts signing contracts with proceeds over $200 million by the end of the fiscal year, with an expectation to collect approximately $300 million to $500 million in cash proceeds by fiscal year-end 2024 [9][19] - The company anticipates that the majority of contracts will be prepaid in full over the first 3 to 5 years, leading to earlier cash flow than previously expected [8][9] Business Line Data and Key Metrics Changes - The company has seen an increase in demand for its 900 megahertz low band spectrum, with additional companies applying for experimental licenses, including Tampa Electric and technology leaders like Ericsson [11][12] - The Anterix Active Ecosystem program has grown to over 50 technology leaders, indicating a robust collaborative effort to support private LTE networks [14] Market Data and Key Metrics Changes - The Senate's passage of the Infrastructure Investment and Jobs Act is expected to act as a catalyst for securing utilities' interest in Anterix's offerings, with billions earmarked to support broadband communications [17][18] - The FCC has granted the first broadband licenses for several counties of the initial customer, Ameren, marking a significant milestone for the company [19] Company Strategy and Development Direction - Anterix aims to become the de facto private wireless broadband solution provider to the utility and critical infrastructure sectors, focusing on modernizing America's electric grid [19] - The company is exploring low capital-intensive ways to build incremental value for shareholders, leveraging relationships within the ecosystem [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum and tailwinds from policymakers, emphasizing the importance of education and awareness in the utility sector regarding private LTE [18][19] - The company is optimistic about the future, with expectations of continued growth and the ability to monetize remaining spectrum value [9][19] Other Important Information - The company is actively working with utilities to explore use cases for private LTE networks, including applications for wildfire mitigation [66][67] - The relationship with Federated Wireless is seen as a strategic move to enhance the value proposition of Anterix's offerings [15][46] Q&A Session Summary Question: How do you count the $200 million of contract value? - The $200 million represents incremental contracts intended to be signed through the end of the fiscal year, with a diverse pipeline of over 50 utilities [21][22] Question: Update on Ameren and SDG&E? - Both Ameren and SDG&E are progressing well, with Ameren's first licenses granted by the FCC and ongoing planning for deployment [32][33] Question: Will utilities participate in upcoming auctions? - There is currently no significant interest from utilities in the upcoming auction, but the company remains open to future developments [38][39] Question: Details on the Federated deal? - The relationship with Federated is aimed at creating a complementary offering for utilities, enhancing the overall solution set [44][46] Question: Opportunities for Motorola Solutions beyond utilities? - While the primary focus remains on utilities, there is potential for complementary use cases in other critical infrastructure sectors [51][52] Question: Thoughts on rural broadband opportunities? - The company sees rural broadband as a complementary opportunity, leveraging existing utility infrastructure to support third-party communications networks [56][57] Question: Will the company consider becoming a REIT? - The company is examining the possibility of converting to a REIT, considering its federal NOLs and the potential for capital returns [70][72] Question: Reaction to the Canadian spectrum auction? - The company views the Canadian auction as a positive data point but emphasizes that it does not change the utility buying process [73][76] Question: Were utilities driving the Federated agreement? - The relationship with Federated was driven by Anterix's long-standing connection and the complementary nature of their offerings [78][80] Question: Will the company consider leveraging to accelerate capital returns? - The company is exploring various financial strategies, including the potential use of leverage, to optimize returns for shareholders [81][82]