Anterix (ATEX) 14 Nov 232024 Q2 Earnings call transcript

Welcome to the Anterix Fiscal 2024 Second Quarter Investor Conference Call. [Operator Instructions]. Please also note that this event is being recorded today. I would now like to turn the conference over to Natasha Vecchiarelli. Please go ahead.

morning, good and you, everyone. Thank Vice I'm Corporate Quarter Investor and of and Natasha Conference I Second Vecchiarelli, Communications, Anterix welcome Relations the President you Call. to

COO; President me Regulatory Chief Officer. CEO; Joining Rob Communications CFO; Schwartz, are Ryan Christopher today and Gerbrandt, Tim Guttman-McCabe, Gray, and and

based Before I'd our These anticipated our future to remind such as like current forward-looking you make on guidance. we will on and we statements future statements. during assumptions undue place uncertainties. are subject events outlook and begin, commercial statements and risks forward-looking reliance to not this Investors to that that call expectations regarding performance, cautioned are are and

cause company's SEC filings. Additionally, in After any forward-looking call on Rob provides to we recent Important any open expectations our for not prepared or differ most we'll can files website. update duty our undertake the materially the from results website are actual on to remarks, that disclosed questions. the factors accessed be do could These statements. and his risks SEC's

that, Rob. call turn the over to I'll With

everyone, morning, Good joining you thank Natasha. Thanks, us. for and

deliver areas As pleased emphasize been movement of share megahertz, to XXX centered there to an that in I'm Today, I'll shareholders. across value initiatives. to we key our comments of this industry-wide X on our execute brief on our has past made on significant continue number progress that quarter to vision a continuing my focus confidence

their program, value. contracted shareholder will First, proceeds our I'll be leveraging share discuss anticipated to transcend announced which recently repurchase into

on on broadband. leadership megahertz our scale thought And and utility to wireless I'll milestones update XXX intent our examples path important provide third, industry I'll of the provide demonstrated scorecard. Second, accomplishments are in industry customer activities, to private an move that

X-year fully our the period. we launched near-term excess our repurchase forecasted funded ability million shares $XXX repurchase for have September. share remain our Under flow XXXX. to current repurchase see the is our we're that outstanding of cash marking reviewing One of program, our in confidence in million. start With stock share program let's program. we over free way up this future We fiscal to with in $XXX through and So new robust are visibility, a have to we of common opportunities the

$XX the In fiscal during remainder addition, to year. proceeds we contracts expect in our receive of from this existing million

Through enabling for As we throughout have journey, host our resilient, collaboration utilities than platform Anterix said our and clean of with a will doing spectrum. nationwide simply that support and is is Anterix providers, our future. more a a customers providing ongoing solutions energy secure

month One of our the of came last Annual the Alliance significant validators or Broadband during approach UBBA most Utility Summit.

of has private annual you specific focus and And where and the cases utilities Anterix and event and an value. the increased broadband put Energy than more in dynamic more wireless utilities from This in our than in of experiences, build know, ecosystem and industry use attendants XXX attendance, sold-out and managed leading Minneapolis representatives As held C-level this XXXX, perspective, valuable actively of year, networks. hosted Xcel UBBA. plans spectrum created, participants represent many UBBA XX% together since funded to utilities come summit with a sharing XX including with participation. To it

megahertz nearly front was we'll business LTE and investment broadband What event an the wireless that sessions all participated. also and outcomes was was of the future. We directly. analyst equity their executives, where to who in several shared how XXX COO, XXX private have Energy bring Xcel At resilient group My secure investors also on support pleased in Xcel's to those megahertz and including thanks valuable insights are energy [indiscernible] of to visible a senior attend center. this witness the

very wildfire were XXX critical industry's Itron growing COO of and and networks. critical In wireless greater a broadband experiencing. see solutions and represented, critical level realize members and Executive deploy And LTE focus offered a our one we respected that asset the has utilities was intent we announced a live acknowledgment LTE the discussion utility with by asset SDG&E of well most sector the enabled scorecard. of been all, shared executives sector. are devices, utility directly this the our providers growth mitigation Itron, cutting-edge movement booth, we mitigation underpinning their networks. demonstrated is issues move ecosystem not technology week Our when hosted active combining the technology XXX the solutions is network and megahertz if updated driving own supported that private their to our existential Foundation market with objectives of reflected Anterix panel forum XXX entire attended message from management effort operation of compatible offers most, industry solution to private The strongly in their aligns the wildfire echoed with helps solution. the megahertz from the significant Anterix XXX deployment our more utilities opportunities This Fortis. member on utilities to from representatives a successful solutions forward. The and primary cities megahertz SDG&E continuing private giving broadband during facing megahertz across a flexibility showcasing an believe XX and ecosystem on that turnkey than solutions. EEI and experience last subscriber correlates now We that demonstration it again centered within private several even and executive the to event Anterix's CatalyX, address roaming Anterix throughout and our and benefits devices the active show operate

scorecard threshold, a the lead November of to metric, demonstrated added of the of of from XX indicators the the have which the the language tracks of range demonstrated movements pricing across movement, summarize megahertz Example introduced we private total August data, and As a LTE below XXX LTE indicators contract. To executive XX X a utilities until of the exchange reminder, their toward a quarters senior provision process, to of intent demonstrated of several more. the identification activity contract intent utilities and just scorecard. ago, XX a these include the of beginning

demonstrated Currently, that a have move XX confidence utilities representing intent approximately million intent XXX-megahertz $XXX intensity forward customer harness this totality continuing confidence to as ecosystem. potential this megahertz in crossed of quarters, activity I'm innovative which to a solutions demonstrated at XX days Innovation on He'll before long movement, products from last shareholders. And throughout DI the The just collaboration our joined of X indicators XXX of our note degree with LTE has recorded in Product movement contract. scale Akhtar we a a the pleased on President delivery has contract the few in value bringing Vice the Anterix high our Senior to I believe and in by Anterix to and underpin we've of that Anterix point customers indicates proceeds scorecard. than recorded ago, with of scorecard threshold, clearly that of Waseem scale deliver our on measurable the networks and their a indicators positive a solutions To our active we've close, of introduced the utilities. new more give you career measurement, a sense our utility-owned oversee announced we intent private to since of

operator dam, view our confident opportunity through to excess We behind and value it shareholders. At members continue industry movement I'll our to shareholders. by of to but demonstrations expect highly opportunities questions. ability the Anterix, these UBBA's our continue our in water we the that, for our the scorecard; across the Anterix of The megahertz it. $XXX swelling solutions before I for turn a program share the over to visibility summary in finally, just based forums and why of utility towards produce the confidence not XXX industry I'll million. And repurchase close value demonstrated to shown represented with near-term by amount our intent Summit. clear of utilities, on of water The through over at the and ecosystem remain passing with like progress us, delivering

Instructions]. this first with question, George our will Craig-Hallum. time, which take Sutton will we come from [Operator At

Minneapolis Nice for UBBA. you recently to all in have

and So if curious I'm partners that you investment stark utilities being represented to amount ecosystem ever ecosystem? were ever at you've UBBA. Have both made others of from support quantified amount this because the of and benefit by the quantified

shoutout. Minneapolis was be for event. the It there Thanks the to great for UBBA

question think sure spectrum want the make I clearly. clearly, We focus I to understood ecosystem. of the I on spend, your do

that on the into of expand recent we spectrum the said utility about, we the network just and say, in based roughly part value had or spending the systems of modernization partners size being represented And the let's or the large-scale whether of That's spectrum spectrum, part of Minnesota. upwards much relatively the that you varies XX% talked represents, of ecosystem private obviously, part to the utilities the multibillion-dollar roughly When we $XXX of SCADA look deployment are small mean, projects. piece have, the that aligned you that's When and whether is a it's in broader at part. our broadband projects. LTE that As of full year integrated we've solution compared modernization nature build-outs. past in that the a larger our aggregate of at on what forecasts. But are systems capital just grid deployed spend X/X for that that's just are grid into sets to percentage billion of RFPs of the AMI spend. I

talking much relative so budget. that to the imagine a can And smaller about being element overall of we're what you

also we active while that that things, that we're regularly, investment, we George, and don't in tracking number commercial-ready Chris. ecosystem, keeps. of the the those obviously, but membership track the it's track we products exact talk have And one about

that So there of a a ago, we're products. companies megahertz. few Itron, now some referenced minutes for companies at have multitude And XX products commercial-ready for those of them, XXX are within Rob

platform seeing creating. are this we opportunity investment in So incredible and we're third-party that

worth, what is for on summarized our waiting it's takeaways we're the Well, inevitable. we

I'm higher want? need unfortunate with up utilities So if boards really in Hawaii moving respond much situation have separately this to than the perhaps happened talk how rather curious begun at a about could what of level to we there. And and

to start Ryan add Maybe on can of Sure. that thoughts. A couple I'll it. and

are investors, reporting Conference, from EEI the gathering, of talking a of all, the and Arizona front many center and at not to issue, First operational investor-owned just talking are growing ever-increasing utilities of issue. the where been unfortunately, what their experience C-suite but IOUs, utilities issues of most and live absolutely mitigation, an here the is Financial to then into key we actually are issue the having, kind was experience that the Hawaii, in used given logistics an wildfire also it's just be both about

Now it's seen. obviously, a we've financial what with liability issue,

can to a week foundation And call level and of actually investment comments who it seen positive had who -- about with so on this they deployed on really on their mitigation EEI the numerous last on as result, now SDG&E XXX of they've where LTE comments the was leader, some add results I a this which mentioned from wildfire megahertz focus in private chance talk my plan, foundation and the Ryan, already. application specifically -- wildfire circuits

that, is utilities. solution to think throughout realization set to of other so hopefully that spread we the actual And continue tangible going

here. Ryan George, Yes.

impact off, it's of devastating not to Hawaii of agree add of first kind Hawaii you, unique me and of as in pieces the Rob conversation, a Let the said, commentary. couple to theme that unfortunately. see I the anymore, with

think to moving to starting Coast. around through beyond CIO of realism it going proactively. call ] [ start moderated we better with be this as the and prepared of specifically I how and (sic) these threats foundation David conversation focused we Fortis West just part we risks deal are the by out with Hutchens, the how was Energy, pervasive do types to very of was CEO Now these a had situations And the become there's on risks

it with of solution about it's Diego the those specific conductor really And protection to mitigations that technological and being talking down one to to able being becomes to before isolate it fire, a slow different drive and to align and benefits San a of be purpose-built falling you and than and we crude. of detecting resources fire risk ignite have the solutions. potential It's quite a and detect, topic dispatch one able were a able clear,

to at actually And very EEI. in being that the tree pruning, of elements and conversation and advancements as risk part It kind those covered of it to put utilities potential to in canopy here mitigation conductors, the of so But be many of as a major is component said, Rob the risk it being risk drive our is physical identified just now given is critical at kinds even topic of continued Arizona very and into able event is the right the manage to addition just it pervasive. and these of existential a to risk conversations to important major, of to to has how impact been pace of lives of be both it multifaceted like attributes to and with the dealing important is continue human solutions these deal technology that bankruptcy. In those We're necessary component ignore, with solution. drive impact technologies able a and that in out are wildfire and of hardening and on the impossible are ones things are one to to et the and of cetera. really architecture advancement there role

financial its breakfast as the elements for during of was George, issues focus does rating So are And like a kick and agencies, the potential year all Fitch that. entirety Rob things the the of making their breakfast at And this EEI state I'll of on right? the impact, it And the bankruptcy, that the to referenced, a of and Ryan up the wildfire. sort saying S&P, of all sector this that existential just payouts, Moody's, Fitch, off them Yes. every by Chris, risk focus. and finish we're helps

the And so Fitch that sector Ryan front of and of center it state and on breakfast sort as is, really issue. of the do but they the it's referenced, illustrated here, entirety spending this

from with will our And B. Crawford question Mike Riley. next come

you're expecting quarter? second occur there a Evergy milestone with this Is to

Mike, this is Tim.

maybe deal the this million we've as the excuse got Xcel $XX due but me, last $XX if from quarter, quarter. roughly wrong beginning -- them, from So don't money XX got this Evergy, the of referencing they I after the know roughly name. I just due same at signed you're is prepaid one. But we we the or Exelon, right that them got quarter not Exelon, million

the Okay. million remind then guess, me where quarter? And coming the you $XX I March can other in was just in,

Yes. Correct.

of from million at December LCRA So $XX actually then should frame. we'll have that come and from which deal, we $XX time in anticipate another Xcel million the beginning

about Okay. your licensing that Great, X tell months. accurate? last in then above what And Is I suppose threshold one the Tim. into can had opportunity utility I you've from is million $XX representing demonstration that in move additional a the time

That's correct.

with next from And Flannery Simon Stanley. our will come Morgan question

of and thinking buybacks? program First, about think But that maybe new think million and against How way on about burn there it? the OpEx buyback, Is basically balances $XX ongoing on we use can nice and taking the the then should other of the to you are out here. to initiation that. OpEx about the cash any liquidity? see And about kind the you talk

Yes.

Simon, I of $XX is keep expect this want to spend we've cash annual cover the think hand million somewhere to to between would We -- to OpEx on $XX that million buyback got and we consider liquidity that anything push program. kind look as ongoing into at of the above outside at of we that, that, But clearing. that excess we'd looking would Tim.

active we immediately. this to expect in new be So program pretty

you'll the start quarters. so we report And as to on few next that see

looking there that from -- that? potentially for networks. a comment fits an recently I right I to DOJ spectrum But you There's to probability either competitor? out other that against a Dish able megahertz at XXX a sort dropped. think Would has you until counterparties that how there be it able head private think, around Dish working for potentially and had in you coming now. just The or have as is Great. the partner T-Mobile on as Would been interest XXX buy your said gave And the XXX them, of T-Mobile to April.

Simon, it's Rob.

think was know follow I -- license understand it. Nextel origination -- them. So and that Communications since on it still them know, of the as that actively you the we We well spectrum say

there. we're hard shareholders. you be courts the just that be read to carrier in benefit to It's a about spectrum an do is in specifics do to of that up and on broadly folks, go of it's well, this. We order us, there's the to the or of and with which enterprise should most between going through likely, the talk able looking at consumers judge a opportunities, opportunistic is spectrum. if view the to our research There's good owners including be of always to have market view whether The parties. that to would valuable ways of current to write absolutely in the carriers We'd that ends tea is also hurdles dialogues, lot leaves, lot but to in what the get all both others, but Our come to others serve capture in any that see a for with network looking spectrum future our ongoing auction. the it opportunities partnership for

heard got confidence all these So our to the restate spending other confidence UBBA, to just it to my million to at see is -- piece, go put EEI. what with I but the really think in program. activities, we us $XXX buyback time near-term that gives both great of We've the utilities, opportunities to in out what on back visibility buyback I just statement, say it, question, it's I want in your important that to our you want

us able future. utilize confidence so the to we'll program that in really near be And strong just that a gives

last And then maybe That's Good. just helpful. one. one

about most and of moving but and XG typically like LTE, the covering their about now. talking most carriers talk their subscribers of to the on to XG most of continue We devices traffic country

the XG And having this XG solution? there? LTE combo ecosystem builds are up, XG Is a more there cores you are So out what in as interest hearing utilities? from stand-alone

Yes.

carriers any way. look, risk think, I like don't in technology

workhorse. my are of years being and they favorite LTE quotes XG out got pioneers put of to even one LTE so leaders Company, talks one these we And the systems the using their technologies, private as about from placing XX Southern realize of XX, ago. XX, And

putting we're along -- was in so Nokia future Broadband all but talked of great high Utility is like it where stated Qualcomm and and being Ericsson, which and that the about megahertz right, gear that's with XG form forward XXX the Nokia confidence the of their place Alliance, we, path, the now on also of what sold And at the a migration Ericsson. leaders evolution EEI and them and the but compatibility of what LTE by of that's

be able certain they So time. are will upgradable software infrastructure utilize putting need there will are now are that, I'm what driving to utilities at as no it. be to the XG cases today use that place There's in be that right but when compelling,

remember, utilities. these relationships with And we're so XX-, XX-year signing

span we path so will figure that to over them that continue And and evolution. life of trusted that be helping out their adviser

needs of to they're could be through working should brand and with be also all as revisions new and those serving lot there that needs our utilities, other the And at spectrum we're in serve industrial additional occur. We're other partners service that entities. of folks supported the XGPP process territories. expanding those both so future, own other ecosystem could cooperative within their those a make needs, be And of utilities in their municipal be looking to any ways but opportunity our always to continues the the sure utilities

continue to products, say. it, And services what serve take both upon parties, like so parties also and we in other opportunities think initial and build like-minded but to infrastructure this expanding we to there's to

next Our question Instructions] with Piecyk Walter come from [Operator will LightShed.

or Rob, X do you was of you a X $XXX mix like what in there would for, million? Phase be you've created where I so out, If that guess, think $XXX had, someone million pans a Phase I year. think, that about that in

Yes.

commercial had had demonstrated We of operations a give we've post facet. since well, the from out phases ruling. different to you a we've to -- those it for of FCC -- think launched kind think really intent I that our granularity

them by driving them And element so phases we're that that through those doing are utilities towards the are moving really element process. measuring and a of things contract

phase, probably when that you're for think granularity within to the is understand DI, progress. looking we as kind call I that that So of our right it, way

just in that see that in fall like you and they entities the quarters, to obviously even of had good as we've the been LCRA when had out signed So way. continues movement reporting expand that a few we've that we've

about where see contracting. say, We that to that they're we them that above continue as we enough showing elements to significant showing show threshold have growth those, in they're intent confidence

But a the DI confused, commitment that DI, intent -- what's that I in that been Is is how before where has is Phase DI I'm or is do and or tracker, maybe phase? the negotiation it's So -- demonstrated after is -- that? -- so right? different after think you or that's is describe it, someone X bucket

almost many about of we've X much intersecting phases realized tracking those kind that X indications classic things It's But through the we're them characteristics think of as more contract. the sales getting categories. on Yes. DI of funnel -- are measures is so -- the to

where a phase circle is that Is the right X I crescentic -- right? DI all DI it in now. Do have like so

measure, specifically, one phase of granularity it's things the -- with X the the the on. specifically example. actually contract There's provide was pieces specifically more the there noted in flagged I'll actually we said separate prenegotiate pipeline, of one elements But It example. of very deals of into metrics [ you as break the is Walt, level that that overlap the give actually get we passing papers But we here phases we XX Ryan as referenced. phases like here. to a of obviously, were intended of it's happens the out different that items. the XX we're happen of those obviously pipeline. very but is that in pipeline and for and clarity. DI, specific of the Obviously, phase terms, when DI we're X and it's a we can DI X phase covering ] to within is intent Rob starting don't to

describe it you That negotiation -- way sounds in and DI describe the you all sounds like like commitments, -- would it but be the think I X, that should phase no? way of

not XX Well, all that X them step. at are of things. level of Yes, of

other there And important the So several we're why that kind pieces are that's that while of that X, equally of later are in even work we've in stages getting that. phase prepared for X. of some a utilize way phase got

of just deals we've some for have those had from entities Phase in moved contracted. past gone and jumped also, DI that not the one they a below and suddenly and another, X in accelerated or because done where threshold standing phases, they've reason relatively forward they've And to we've start add the --

at facets look but into flow, way different detail more our the we it go X customer happy it's to of we're you. in So with

Okay. guess And ask I DI, could my question, targeted maybe I DI. first the

is or a DI getting on demonstrated in MAX ready. you So the where of something closer how terms getting if there's to DI Like and intent the is actually tape? much media someone's getting Plus out XX

Yes.

what that and think really that really table that influence probably saying I'd these that's just share and tip movement opportunities. That's Walt. we you're in how of there, to our by this the on number seeing think near-term on have what I in kind I -- but opportunities identify with predict strong scale. question, answer talked that iceberg. have visibility broad can't we're putting third we our about we to of that scale in timing, buyback the our We out what the bring . Again, trying precise the -- a is program

seeing. way talk of that's about I what the we're think the scale best to

Okay.

Just some stuff Biden out yesterday. for a Chris. question put

of who can anytime saying terms it, had that bull******** being on not some take the like was was going his basically you that past it spectrum the integrated your of utilities can to on the I'm Is -- us think have just kind look Carr -- stuff you I'm I of blanking hit to kind would say, negative offer. looked spectrum in just at things the that that perhaps with negative give -- hit does Commissioner name, Carr they've at your was of curious market in as some CBRS had low-band that any spectrum market? guess, to soon. I

Yes. or can complementary Rob as mean, I think opportunities, our -- nation's to accretive We're spectrum I getting the of some potential shareholders that excited always think of market to first Walt, that take spectrum additive of the will all, plan I spectrum and process time. sort can bands referenced, to see and think XXX XXX. to and whether CBRS beneficial other valuable we be and our like be

Much will a be auctioned. process likely will through have at of it So track to FCC. the spectrum that that, we go definitely

we're actively a other spectrum spectrum it. of So than this calls of solutions building about this, Because we're you've certainly of that heard talk solution doing, makes sort heard we theme aware is different and are for XXX of throughout members, a us terms perspective What of many creating and our set, our into wrapped an and opportunities. to strategic ecosystem you've certainly, XX be participating. the value play, Board all aware talk the opportunities will about advisory it's utility if in from companies other we spectrum we and sector. creating come things solutions But

actually guys now terms the shortly. yet. it, of do it's shared a change getting cable are claim using government But but can I right debate lot think spectrum. they're like in the right it they of government where I the is seem Obviously, mean been where now? mean doesn't There's deployed you aggressively around CBRS.

of have kind future that the is spectrum shared regardless for its customers think the FCC? is in integrated Or you it of Your who's lost it. charge at luster? something Do the

Yes.

So micro, macro.

we're The and want serving take They want they sector I'll and control. micro. need So certainty. need

the so just core And spectrum thinking. of on is idea in a their of shared not relying completely way opportunity

have those about some when CBRS are And unique those even bought who licenses traits some to so talk them. utilities you there aspects and PAL

see I'll bands be XXX there -- And megahertz. from likely go that can them perspective, share a But spectrum so will going of only are we in Anterix macro then think I shared shared pursuing many macro forward.

And don't go so of I think away. -- think will concept I shared the

understand we'll to parties, is political sides. bands. and of and more a generally, and aisle it the it. the And there side I the bit time I both appreciated license to element still see Shared exclusive think, Democratic both time a certain but by think in little benefit of is from of

luster we'll time the going forward from see auction time, but exclusive I both going and model to a and an as well. rises model forward shared falls license so spectrum And think

And Okay. just question. then last

Given your around to any spectrum, that in order nature connectivity the could received looking process that are goals to achieve of satellite constellations for sniffing phones? they in uplink inquiries industry, you are LEO additional or some satellite that band the perhaps use their to trying provide low planned have of anyone in

high makes on hybrid and them Yes. and we're low-band there. to what spectrum Absolutely on focused the nothing for We're Well, look, those this of share eventual they're specific I vendors approach our really with value think has terrestrial sense doing. saying for and fronts, satellite watching, others. all such talking partners really leading utility

low that, include also it. not carriers or watched and over that the same those technologies and those foresee as band over time. other here. that sure for It's and as there. we they've supplemental starting strengthen like complement. infrastructure to what we'll cake, to And other we've from the with a all be enrollment a to will that these of with will just supplement the I'm layer systems XXX evolution, we'll elements so And the decades a be will the foundational things replacement see satellite product will continue thing expand networks, critical utilities added

our turn Rob remarks. this back And session. for to to concludes question-and-answer like I'd the over conference any Schwartz closing

Thank Thank thank talk continuing us we'll joining progress time, and everybody, really looking you. over our We're you, to for share operator, soon. to to you, and forward today. everyone

has concluded. presentation. attending conference today's now The for you Thank

may now lines. your You disconnect