Anterix(US:ATEX)2020-02-04 21:35Financial Performance - Total operating revenues for the three months ended December 31, 2019, were $361,000, a decrease from $1,502,000 for the same period in 2018, representing a decline of 76%[9] - Service revenue for the nine months ended December 31, 2019, was $690,000, down 82% from $3,798,000 in the same period of 2018[9] - Net loss for the three months ended December 31, 2019, was $8,811,000, compared to a net loss of $8,350,000 for the same period in 2018, indicating a 5.5% increase in losses[9] - Anterix Inc. reported a net loss of $25.9 million for the nine months ended December 31, 2019, compared to a net loss of $32.4 million for the same period in 2018, indicating a reduction in losses[17] - Total operating revenues decreased by $1.1 million, or 76%, to $0.4 million for the three months ended December 31, 2019, compared to $1.5 million for the same period in 2018[155] - Service revenue dropped by $1.0 million, or 85%, to $0.2 million for the three months ended December 31, 2019, from $1.2 million in the prior year[155] Assets and Liabilities - Total current assets increased to $152,337,000 as of December 31, 2019, from $78,346,000 as of March 31, 2019, reflecting a growth of 94%[7] - Total liabilities decreased to $20,575,000 as of December 31, 2019, from $15,989,000 as of March 31, 2019, showing a reduction of 29.8%[7] - Total stockholders' equity increased to $255,254,000 as of December 31, 2019, from $180,764,000 as of March 31, 2019, reflecting a growth of 41.1%[7] - Cash and cash equivalents rose to $150,243,000 as of December 31, 2019, compared to $76,722,000 as of March 31, 2019, marking an increase of 96%[7] - Cash and cash equivalents increased to $150.2 million at the end of the year, up from $82.3 million at the beginning of the year, reflecting a net change of $73.5 million[17] Expenses - General and administrative expenses for the three months ended December 31, 2019, were $4,740,000, slightly down from $5,216,000 in the same period of 2018, a decrease of 9.1%[9] - The company reported a direct cost of revenue of $631,000 for the three months ended December 31, 2019, down from $974,000 in the same period of 2018, a reduction of 35.2%[9] - Depreciation and amortization expenses were $2.4 million for the nine months ended December 31, 2019, compared to $2.1 million for the same period in 2018[17] - Depreciation and amortization increased by $0.4 million, or 63%, to $1.1 million for the three months ended December 31, 2019, from $0.7 million in the prior year[162] - Stock compensation expense related to restricted stock was approximately $1.1 million and $3.1 million for the three and nine months ended December 31, 2019, respectively[109] Cash Flow - Net cash used by operating activities was $21.3 million for the three months ended December 31, 2019, compared to $17.0 million for the same period in 2018[174] - Net cash provided by financing activities was $96.0 million for the nine months ended December 31, 2019, primarily from a follow-on offering[176] - The company completed a follow-on offering in July 2019, selling 2,222,223 shares at $45.00 per share, resulting in net proceeds of approximately $94.2 million[177] - Net cash used in investing activities was approximately $1.2 million for the nine months ended December 31, 2019, compared to $1.4 million in the same period of 2018[175] Regulatory and Strategic Initiatives - Anterix holds approximately 60% of the channels in the 900 MHz band in the top 20 metropolitan areas in the United States, positioning itself as a leader in this spectrum[19] - The company is pursuing regulatory proceedings with the FCC to modernize and realign the 900 MHz band for broadband deployment[19] - The company is engaged in initiatives to commercialize its spectrum assets among critical infrastructure and enterprise customers, focusing on private broadband networks[139] - The company plans to lease its spectrum to customers for terms of 20 years or longer, with customers bearing the costs of deploying and operating their networks[142] - The company is actively engaging with the FCC and other stakeholders to support its initiatives in the 900 MHz band[143] Internal Controls and Governance - A material weakness in internal control over financial reporting was identified, which is currently being remediated[185] - Management identified a material weakness in internal control over financial reporting due to inadequate controls related to new tax laws[187] - A material weakness is defined as a deficiency that could lead to material misstatements in financial statements[188] - To remediate the material weakness, management implemented new controls, additional training programs, and revised policies regarding tax guidelines[189] - As of December 31, 2019, management believes proper policies and controls have been established to address the material weakness[190] Stock and Equity - The company had 17,146,680 shares issued and outstanding as of December 31, 2019, compared to 14,739,145 shares as of March 31, 2019, an increase of 16.3%[11] - The Company’s board of directors reserved 3,805,223 shares of common stock for issuance under its 2014 Stock Plan as of December 31, 2019[108] - As of December 31, 2019, the company had 352,584 non-vested restricted stock units outstanding, with a weighted average grant date fair value of $35.45[109] - The company had approximately $2.8 million of unrecognized compensation cost related to non-vested stock options as of December 31, 2019[118] Legal and Compliance - The company is not involved in any material legal proceedings[192]