Anterix(US:ATEX)2024-02-13 16:00Financial Performance - Spectrum revenues for the nine months ended December 31, 2023, were $2,931,000, up from $1,311,000 for the same period in 2022, representing a year-over-year increase of approximately 123.5%[16] - Net loss for the three months ended December 31, 2023, was $(8,020,000), compared to a net loss of $(31,859,000) for the same period in 2022, indicating a reduction in losses by approximately 74.8%[16] - The company reported a net income of $283,000 for the nine months ended December 31, 2023, a significant improvement compared to a net loss of $31.86 million for the same period in 2022[25] - Total spectrum revenue for the three months ended December 31, 2023, was $1,271,000, compared to $578,000 for the same period in 2022, representing a 120% increase[42] - For the nine months ended December 31, 2023, spectrum revenues rose by $1.6 million, or 124%, to $2.9 million from $1.3 million in the prior year[106] Assets and Liabilities - Total current assets increased to $77,849,000 as of December 31, 2023, compared to $59,459,000 on March 31, 2023, reflecting a growth of approximately 30.9%[14] - Cash and cash equivalents rose to $62,033,000 as of December 31, 2023, compared to $43,182,000 on March 31, 2023, marking an increase of about 43.7%[14] - Total liabilities increased to $148,616,000 as of December 31, 2023, from $98,765,000 on March 31, 2023, reflecting a rise of approximately 50.6%[14] - Deferred revenue increased to $100,897,000 as of December 31, 2023, from $57,990,000 on March 31, 2023, representing an increase of approximately 73.7%[14] - The company’s accumulated deficit reached $(356,792,000) as of December 31, 2023, compared to $(349,149,000) on September 30, 2023, indicating a continued increase in accumulated losses[19] Cash Flow - The company reported a net cash provided by operating activities of $35.85 million for the nine months ended December 31, 2023, compared to a net cash used of $18.68 million in the same period of 2022[25] - Net cash provided by operating activities was approximately $35.9 million for the nine months ended December 31, 2023, compared to a net cash used of $18.7 million for the same period in 2022[124] - Net cash provided by investing activities was $10.4 million for the nine months ended December 31, 2023, compared to net cash used of $20.6 million for the same period in 2022[126] - Net cash used in financing activities was $19.8 million for the nine months ended December 31, 2023, compared to $8.8 million for the same period in 2022[127] Expenses - General and administrative expenses for the nine months ended December 31, 2023, were $34,830,000, slightly down from $34,871,000 for the same period in 2022, showing a decrease of about 0.1%[16] - Non-cash compensation expense attributable to stock awards was $12.02 million for the nine months ended December 31, 2023, compared to $13.41 million for the same period in 2022[25] - Operating expenses totaled $14.1 million for the three months ended December 31, 2023, a decrease of $0.7 million, or -5%, from $14.8 million in the same period of 2022[107] - Product development expenses increased by $0.3 million, or 32%, to $1.2 million for the three months ended December 31, 2023, compared to $0.9 million for the same period in 2022[110] Agreements and Contracts - The company entered into a 20-year agreement with Tampa Electric Company (TECO) for the use of its 900 MHz Broadband Spectrum, with scheduled prepayments totaling $34.5 million, of which $6.9 million was received in December 2023[31] - An agreement with Lower Colorado River Authority (LCRA) was established for the sale of 900 MHz Broadband Spectrum for total payments of $30 million, with an initial payment of $15 million received in December 2023[32] - The company recognized revenue of approximately $0.7 million and $1.1 million for the three and nine months ended December 31, 2023, respectively, from the Xcel Energy Agreement, which totals $80 million[34] - Xcel Energy Agreement guarantees the delivery of 900 MHz Broadband Spectrum for 20 years, with $50.3 million recorded in deferred revenue as of December 31, 2023[130] Share Repurchase and Equity - A new share repurchase program was authorized, permitting the repurchase of up to $250 million of common stock by September 21, 2026[36] - The Company has a total future minimum lease payment obligation of $6.4 million under existing non-cancelable leases[71] - The Company repurchased a total of $8.0 million of its common stock under the 2023 Share Repurchase Program during fiscal year 2024[76] - The company repurchased and retired 230,000 shares in 2023 at an average price of $34.77 per share, totaling $7,971,000, compared to 106,000 shares at an average price of $33.11 per share for $3,498,000 in 2022[79] Gains and Losses - The company reported a gain on disposal of intangible assets of $(33,035,000) for the nine months ended December 31, 2023, compared to $(9,329,000) for the same period in 2022, indicating a significant increase in losses from asset disposals[16] - The Company recorded a gain on disposal of intangible assets of $33.04 million for the nine months ended December 31, 2023[25] - The company recorded a non-monetary gain on disposal of intangible assets of $13.7 million for the three months ended December 31, 2023, due to the exchange of narrowband licenses for broadband licenses[112] - A cumulative gain on sale of intangible assets of $7.4 million was recorded for the nine months ended December 31, 2023, related to the transfer of broadband licenses to SDG&E[114] Tax and Regulatory - The Company recorded a total tax expense of $1.7 million for the nine months ended December 31, 2023, compared to $0.6 million for the same period in 2022[72] - Income tax expense increased by $1.128 million, or 537%, to $1.338 million for the three months ended December 31, 2023, compared to $210 thousand for the same period in 2022[118] Market and Economic Conditions - The company is closely monitoring macroeconomic conditions, including inflation, which may adversely affect its commercialization efforts and financial condition[89] - Inflationary factors may adversely affect operating results, with increased operating expenses noted due to recent inflation[139]