Anterix Inc. Reports Second Quarter Fiscal Year 2024 Results

Anterix Inc.

Earnings Release Tables

Consolidated Balance Sheets

(Unaudited, thousands, except share data)

September 30, 2023

March 31, 2023

(Unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$                 48,534

$                 43,182

Prepaid expenses and other current assets

13,578

16,277

Total current assets

62,112

59,459

Property and equipment, net

2,323

3,606

Right of use assets, net

2,826

3,371

Intangible assets

197,566

202,044

Other assets

15,049

10,078

Total assets

$               279,876

$               278,558

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$                   6,998

$                   6,624

Due to related parties

—

533

Operating lease liabilities

1,610

1,725

Contingent liability

1,409

20,249

Deferred revenue

5,281

2,769

Total current liabilities

15,298

31,900

Operating lease liabilities

2,278

2,922

Deferred revenue

74,984

57,990

Deferred gain on sale of intangible assets

4,889

—

Deferred income tax

5,813

5,440

Other liabilities

513

513

Total liabilities

103,775

98,765

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and
no shares outstanding at September 30, 2023 and March 31, 2023

—

—

Common stock, $0.0001 par value per share, 100,000,000 shares authorized and
18,768,491 shares issued and outstanding at September 30, 2023 and 18,921,999
shares issued and outstanding at March 31, 2023

2

2

Additional paid-in capital

525,248

518,160

Accumulated deficit

(349,149)

(338,369)

Total stockholders' equity

176,101

179,793

Total liabilities and stockholders' equity

$               279,876

$               278,558

Anterix Inc.

Earnings Release Tables

Consolidated Statements of Operations

(Unaudited, in thousands, except share and per share data)

Three months ended September 30,

Six months ended September 30,

2023

2022

2023

2022

Spectrum revenues

$              1,052

$                 398

$              1,660

$                 733

Operating expenses

General and administrative

11,905

11,427

23,578

22,786

Sales and support

1,310

1,164

2,585

2,400

Product development

1,147

980

2,216

2,076

Depreciation and amortization

209

372

455

734

Operating expenses

14,571

13,943

28,834

27,996

Gain on disposal of intangible assets, net

(8,513)

(2,905)

(19,298)

(3,553)

Gain on sale of intangible assets, net

(7,332)

—

(7,332)

—

Loss on disposal of long-lived assets, net

67

20

36

22

Gain (loss) from operations

2,259

(10,660)

(580)

(23,732)

Interest income

396

244

782

261

Other income (expense)

63

(12)

158

47

Income (loss) before income taxes

2,718

(10,428)

360

(23,424)

Income tax expense

645

215

405

415

Net income (loss)

$              2,073

$          (10,643)

$                 (45)

$          (23,839)

Net income (loss) per common share basic

$                0.11

$              (0.56)

$                   —

$              (1.27)

Net income (loss) per common share diluted

$                0.11

$              (0.56)

$                   —

$              (1.27)

Weighted-average common shares used to compute basic net income (loss) per share

18,921,126

18,953,044

18,935,929

18,786,928

Weighted-average common shares used to compute diluted net income (loss) per share

19,109,394

18,953,044

18,935,929

18,786,928

Anterix Inc.

Earnings Release Tables

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Three months ended September 30,

Six months ended September 30,

2023

2022

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$              2,073

$          (10,643)

$                 (45)

$          (23,839)

Adjustments to reconcile net income (loss) to net cash used in operating activities

Depreciation and amortization

209

372

455

734

Non-cash compensation expense attributable to stock awards

3,838

4,691

8,103

8,819

Deferred income taxes

645

203

373

403

Gain on disposal of intangible assets, net

(8,513)

(2,905)

(19,298)

(3,553)

Gain on sale of intangible assets, net

(7,332)

—

(7,332)

—

Loss on disposal of long-lived assets, net

67

20

36

22

Changes in operating assets and liabilities

Prepaid expenses and other assets

225

83

788

1,263

Right of use assets

262

280

545

518

Accounts payable and accrued expenses

(795)

328

374

(1,132)

Due to related parties

—

(24)

(533)

—

Operating lease liabilities

(371)

(372)

(759)

(699)

Contingent Liability

—

249

—

249

Deferred revenue

20,114

(398)

19,506

(733)

Net cash provided by (used in) operating activities

10,422

(8,116)

2,213

(17,948)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of intangible assets, including refundable deposits

(4,907)

(4,578)

(10,077)

(11,228)

Proceeds from sale of spectrum

25,178

—

25,178

—

Purchases of equipment

(187)

(1,139)

(212)

(1,145)

Net cash provided by (used in) investing activities

20,084

(5,717)

14,889

(12,373)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from stock option exercises

—

—

7

872

Repurchase of common stock

(10,735)

(2,000)

(10,735)

(4,725)

Payments of withholding tax on net issuance of restricted stock

(270)

(509)

(1,022)

(1,336)

Net cash used in financing activities

(11,005)

(2,509)

(11,750)

(5,189)

Net change in cash and cash equivalents

19,501

(16,342)

5,352

(35,510)

CASH AND CASH EQUIVALENTS

Beginning of the period

29,033

86,456

43,182

105,624

End of the period

$           48,534

$           70,114

$           48,534

$           70,114

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the period:

Taxes paid

$                   —

$                   12

$                     1

$                   12

Non-cash investing activity:

Network equipment provided in exchange for wireless licenses

$                 130

$                   25

$                 568

$                   29

Deferred gain on sale of intangible assets

$              4,889

$                   —

$              4,889

$                   —

Derecognition of contingent liability related to sale of intangible assets

$           18,840

$                   —

$           18,840

$                   —

Anterix Inc.

Earnings Release Tables

Other Financial Information

(Unaudited, in thousands except per share data)

Three Months Ended September 30,

Six Months Ended September 30,

2023

2022

2023

2022

Number of shares repurchased and retired

333

54

333

110

Average price paid per share*

$              32.69

$              36.73

$             32.69

$              48.42

Total cost to repurchase

$            10,735

$              2,000

$           10,735

$              4,725

*         Average price paid per share includes costs associated with the repurchases.

          As of September 30, 2023, $250.0 million is remaining under the share repurchase program.