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]