Anterix (ATEX) 2024 Annual Gateway Conference summary

Strategic vision and market opportunity

• Focused on enabling modernization of critical infrastructure through private broadband, especially for utilities, energy, transportation, and logistics sectors.

• Holds the largest licensed 900 MHz spectrum in the contiguous U.S., creating a new market for utility-focused broadband solutions.

• Utilities face challenges from energy transition, electrification, decentralization, and increased data demands, driving need for advanced communication systems.

• Developed a robust ecosystem of 115 partners, including major vendors and device makers, to support 900 MHz solutions.

• Advisory board and collaborations with organizations like EPRI and national labs guide technology development and validation.

Financial performance and business model

• Completed seven transactions with utilities, totaling $375 million in contract value, primarily through long-term leases with upfront payments.

• Cash flow is decoupled from GAAP revenue due to upfront payments, enabling significant share buybacks (~$50 million to date).

• Of the $375 million in deals, $175 million remains to be paid, with $100 million expected in the next fiscal year starting April 1.

• Largest deal to date is with Oncor ($102.5 million), covering 80% of Texas counties and contributing to a presence in 15 states.

• Pipeline includes over 60 utilities, representing $3 billion in potential value, with 18 utilities showing high Demonstrated Intent ($1 billion value).

Industry dynamics and customer focus

• Utilities are the primary market due to their need for secure, private networks and preference for long-term, capitalized contracts.

• Utilities' decision-making is slow and complex, making deal timing unpredictable; Demonstrated Intent is used to gauge progress.

• Other sectors, such as water and gas utilities, are also being targeted for future growth.

• Pricing is based on fair market value, using recent auction and transaction data, and varies by service territory.

• Spectrum value is rising, with recent deals achieving premiums over previous auctions.