Anterix Inc.

Good afternoon, ladies and gentlemen, and welcome to the Enterix Third Quarter Investor Update Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Tim Gray. Sir, the floor is yours.

Good afternoon, everyone, and welcome to the Enterix Third Quarter Fiscal Year 2022 Investor Call. I'm Tim Gray, Enterix's CFO, And I'm doing the introduction for today's call for Natasha Vecchiarelli, who is on maternity leave following the recent birth of a baby girl. Joining me today are Rob Schwartz, our President and CEO, Ryan Gerbrandt, our COO, and Chris Gutman McCabe, our Chief Regulatory and Communications Officer. Before we begin, please note that during today's presentation, we may make forward-looking statements, either in our prepared remarks or in the associated question and answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. Risk factors that may impact our performance are identified in our most recent SEC filing. Following our prepared remarks, we will have an operator-led question and answer session. In addition, At the conclusion of today's call, a replay and transcript of our discussion will be posted to our investor relations website. With that, I'll turn the call over to Antarex's president and CEO, Rob Schwartz.

Thanks, Tim. Good afternoon, everyone, and thank you for joining our third quarter investor call. With our March 31 fiscal year end approaching, I want to start by saying that we as a team are working nonstop in our effort to close deals. towards our $200 million fiscal year end target and beyond. From my vantage point in my direct interactions with the utilities we have in the expanding later stages of our sales process, I believe it's not a matter of if, but rather when we close these contracts. And while we share in the frustration that the confidentiality required for these deals does not allow us to give specific details regarding the individual utilities, we can provide some color around the combined magnitude of the transactions that we're working through. As we've discussed, we break our customer pipeline into three phases, and we call our third and final phase the closing stage of the process. I'm pleased to share that the number of utilities that have moved into this third phase has increased, with the total potential contracted proceeds now in excess of $400 million, including several larger deals. Additionally, our total pipeline of customers in all three phases continues to mature and grow even since our last call, now with more than 60 utilities, translating into potential total contract values well in excess of $3 billion. Ryan and I with our team are driving these deals to completion, and we remain steadfast in our belief that our continued efforts through fiscal year 2024 will result in approximately $1.8 billion of contracted proceeds, with multiple paths to get there. Our strategy has been to take a unique vertical approach to building the value of our spectrum. We have the right target customer base, utilities with strong and growing needs for modernized private communications, with ready access to capital, and with top credit ratings. What comes with these powerful attributes, however, is a sector that moves at their own pace, cautiously and, yes, sometimes slowly, to make these important multi-decade commitments. we believe the long-term benefit is well worth the wait and can drive significant shareholder value. As you may have seen in our 10-Q filed earlier today, in our third fiscal quarter, we began to return the value of contracted proceeds to our shareholders through our previously announced share repurchase program. Going forward with our continued confidence in our near-term transactions and our pipeline, we target returning substantially all of the net proceeds from our future contracts to our shareholders through the expansion of our repurchase program or through other tax-efficient means. The driving motivation of the Interix team is to directly return this value to shareholders as our net proceeds continues to expand. While the pace of contract collection will dictate the pace of our potential return of net proceeds, our basic philosophy here is that our gross proceeds minus clearing costs and operating expenses, including any taxes, will determine the value we intend to return to our shareholders. Based on the scale of the contracts in our pipeline, we anticipate that this can provide a continuing and significant return to our investors. As such, this should be viewed as a fundamental attribute of value for Enteric shareholders. In the eight years since we filed at the FCC, as a result of our efforts, the narrative around private broadband for utilities has changed dramatically. And as a result, our interactions with the sector have evolved. We're witnessing an expanding list of critical use cases that's fueling market demand for private networks. We are having deeper engagements across these organizations with growing involvement from the C-suites. We're helping them build compelling cases to justify to their boards and regulators that the substantial value that comes from modernized communications. Our growing position in this valuable sector is also reflected in the continued development of our industry ecosystem as part of our nationwide platform. As an example, just last week we released a joint white paper with Schweitzer Engineering Labs, a preeminent technology supplier to the utility sector, documenting the success of their wildfire mitigation solution when deployed using Anterix 900 megahertz spectrum. Their falling conductor solution de-energizes a broken electric line before it hits the ground, reducing the possibility of fire. This proactive approach to disaster mitigation is valuable for the growing regions of the country threatened by wildfires, as well as other universal threats like increasing storms and falling branches. This Schweitzer project, enabled by Enterix's broadband, can truly be a game changer for the utility sector throughout the nation. The Enterix Active Ecosystem program, like our pipeline, continues to grow. We just recently announced a collaboration with Cisco, and we announced the introduction of additional 900 megahertz products from Sierra Wireless. We also recently launched within our ecosystem a cybersecurity collective, with leading innovators focusing on the critical and growing security needs of the sector. These relationships will enable even more vital functionality and value for the users of our spectrum. In less than a year, the Antarex Active Ecosystem Program has virtually doubled from 37 to 72 companies who are developing solutions, equipment, and services that continue to enhance the value of 900 MHz networks. This rapid growth is a sign of the expanding scale of commercial interest in serving utilities' needs as part of our powerful nationwide Antarex platform. It's meaningful to me and my team that all of these elements of our efforts are coming together to address an urgent national need to foster and protect our nation's electric grid and support the robust introduction of renewable energy resources to achieve our decarbonization goals. And with that, I'll turn it over to Tim.