Anterix(US:ATEX)2022-08-07 16:00Revenue 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]