Anterix(US:ATEX)2023-02-08 16:00Financial Performance - Spectrum revenues for the three months ended December 31, 2022, were $578 million, compared to $385 million for the same period in 2021, representing a 50.1% increase[15] - The net loss for the three months ended December 31, 2022, was $8.0 million, compared to a net loss of $12.7 million for the same period in 2021, indicating a 37.5% improvement[15] - The net loss for the nine months ended December 31, 2022, was $31.859 million, compared to a net loss of $26.502 million for the same period in 2021, representing a 20.5% increase in losses[24] - The Company recognized total spectrum revenue of $1.311 million for the nine months ended December 31, 2022, compared to $749,000 for the same period in 2021, representing a 75.1% increase[42] - Interest income increased by $0.4 million, or 4444%, to $0.4 million for the three months ended December 31, 2022, and by $0.6 million, or 1118%, to $0.7 million for the nine months ended December 31, 2022, due to higher interest rates[105] Operating Expenses - Operating expenses for the three months ended December 31, 2022, totaled $14.8 million, up from $12.7 million in the same period of 2021, reflecting a 16.3% increase[15] - General and administrative expenses increased by $1.9 million, or 18%, to $12.1 million for the three months ended December 31, 2022, primarily due to higher stock compensation and headcount costs[97] - Non-cash compensation expense attributable to stock awards was $13.411 million for the nine months ended December 31, 2022, compared to $10.047 million for the same period in 2021, reflecting a 33.5% increase[24] - Product development expenses increased by $0.2 million, or 7%, to $3.0 million for the nine months ended December 31, 2022, driven by higher IT-related costs[99] - Sales and support expenses increased by $0.1 million, or 10%, to $1.4 million for the three months ended December 31, 2022, primarily due to higher headcount costs[98] Assets and Liabilities - Total current assets decreased to $72.5 million as of December 31, 2022, down from $115.8 million as of March 31, 2022, a decline of 37.3%[13] - Total liabilities increased to $98.6 million as of December 31, 2022, compared to $91.7 million as of March 31, 2022, an increase of 7.5%[13] - The accumulated deficit as of December 31, 2022, was $(353.9) million, up from $(313.8) million as of March 31, 2022, reflecting a worsening of 12.8%[13] - The balance of contract liabilities increased to $61.367 million as of December 31, 2022, from $54.678 million at March 31, 2022[46] - The balance of contract assets increased to $736,000 as of December 31, 2022, from $638,000 at March 31, 2022[44] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $18.676 million for the nine months ended December 31, 2022, compared to a net cash provided of $27.037 million for the same period in 2021[24] - The company reported a total cash and cash equivalents balance of $57.511 million at the end of the period, down from $127.764 million at the end of the previous year[24] - Net cash used in investing activities was $20.6 million for the nine months ended December 31, 2022, compared to $16.3 million for the same period in 2021, primarily for acquiring and retuning wireless licenses[116] - Net cash used in financing activities was $8.8 million for the nine months ended December 31, 2022, compared to $0.5 million for the same period in 2021, mainly due to stock repurchases[117] - The company may need to raise additional capital to implement business plans and initiatives, with potential financing through debt or equity offerings[110] Agreements and Contracts - The company plans to continue its efforts in commercializing spectrum assets to targeted utility and critical infrastructure customers[10] - The Xcel Energy Agreement provides for $80 million in scheduled prepayments over 20 years, with $8 million received in December 2022[27] - The Evergy Agreement resulted in a prepayment of $30.2 million for a 20-year term, covering service territories in Kansas and Missouri with a population of approximately 3.9 million[89] - The company has secured dedicated long-term usage of its 900 MHz Broadband Spectrum for Xcel Energy, enabling the deployment of a private LTE network[27] - The company has a contingent liability of $20.2 million related to the SDG&E Agreement for the sale of 900 MHz Broadband Spectrum, with $0.2 million received as a milestone payment during the quarter ended September 30, 2022[77][78] Market and Regulatory Risks - Future projections indicate potential challenges in achieving operating and financial guidance due to regulatory and competitive risks[10] - The company does not expect a material impact on financial condition from a 10% change in market interest rates due to the short-term nature of its financial instruments[125] - The company is currently not exposed to market risk from foreign currency fluctuations as all transactions are in U.S. dollars[126] - Inflationary factors have increased operating expenses, which may adversely affect revenues if not controlled[127] Internal Controls and Governance - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[128] - There were no changes in internal control over financial reporting that materially affected the company during the reporting period[129]