Q3 2024 Anterix Inc Earnings Call
Operator: Hello and welcome to the Anterix Fiscal 2024 3rd Quarter Investor Conference Call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone. To withdraw from the question queue, please press star then 0.
Hello, and welcome to the <unk> fiscal 'twenty 'twenty four is third quarter Investor Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
After todays presentation, there will be an opportunity to ask questions.
I ask a question you May press Star then one on your telephone keypad.
To withdraw from the question queue. Please press Star then two.
Natasha Vettorelli: I would now like to hand the call to Natasha Vettorelli. Please go ahead. Thank you, and good morning everyone. I'm Natasha Veccarelli, Vice President of Investor Relations and Corporate Communications, and I welcome you to the Anterix third quarter conference call. Joining me today are Rob Schwartz, President and CEO, Ryan Gerbrandt, COO, Tim Gray, CFO, and Chris Gutman-McCabe, Chief Regulatory and Communications Officer. Before we begin, I'd like to remind you that we will make forward-looking statements during this call regarding future events and our anticipated future performance, such as our commercial outlook and guidance. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Investors are cautioned not to place undue reliance on forward-looking statements. Additionally, we do not undertake any duty to update any forward-looking statements.
I would now like to hand, the call to Natasha Vecchiarelli. Please go ahead.
Thank you and good morning, everyone I'm, Natasha Vecchiarelli, Vice President of Investor Relations and corporate Communications and I Welcome you to the enteric third quarter conference call.
And me today are Rob Schwartz, President and CEO, Ryan Gerbrandt B L L. Tim Gray.
And Chris, Scotland, Mccabe, Chief regulatory and Communications Officer.
Before we begin I'd like to remind you that we will make forward looking statements. During this call regarding future events and our anticipated future performance such as our commercial outlook and got it.
These statements are based on current expectations and assumptions that are subject to risks and uncertainties investors are cautioned not to place undue reliance on forward looking statements. Additionally, we do not undertake any duty to update any forward looking statements.
Natasha Vettorelli: Important factors and risks that could cause actual results to differ materially from the company's expectations are disclosed in our most recent FEC filings. These files can be accessed on our website or on the FEC's website. After Rob provides his prepared remarks, we'll open the call for questions. With that, I'll turn the call over to Rob. Thanks, Natasha.
Important factors and risks that could cause actual results to differ materially from the company's expectations are disclosed in our most recent SEC filings. These filings can be accessed on our website or on the Sec's website.
After I provide his prepared remarks, well open the call for questions with that I'll turn the call over to Ralph.
Thanks, <unk> good morning, everyone and thank you for joining us in this latest quarter and Terex is continued progress on our journey to making 900 megahertz utility broadband the de facto standard in creating a cleaner safer affordable and more secure energy future.
Rob Schwartz: Good morning, everyone, and thank you for joining us. In this latest quarter, Anterix has continued progress on our journey to making 900MHz utility broadband the de facto standard for creating a cleaner, safer, affordable, and more secure energy future. Since our last investor update in November, we welcomed our sixth utility customer, Tampa Electric. We achieved 3GPP standards approval, giving a clear evolutionary path to 5G for 900 MHz spectrum users. We continued to advance industry-wide support for utility private broadband, evidenced by a significant movement in our demonstrated intent scorecard, and we welcomed the legendary utility industry leader, Tom Kuhn, to our team as vice chairman of our board. I'll start by providing a quick update on our demonstrated intent scorecard, which we began sharing a year ago to measure and quantify the meaningful indicators of customer intent that we see before we get to a contract.
Since our last Investor update in November we welcomed our six utility customer Tampa Electric we achieved three G. P. P standards approval, giving a clear evolutionary path to five G. For 900 megahertz spectrum users, we continue to advance industry wide support for utility private broadband evidenced by a significant movement in there.
Our demonstrated intent scorecard.
And we welcomed the legendary utility industry leader, Tom tuned to our team as Vice chairman of our board.
I'll start by providing a quick update on our demonstrated intense scorecard, which we began sharing a year ago to measure and quantify the meaningful indicators of customer churn that we see before we get to get to a contract.
Rob Schwartz: As a reminder, the analysis behind our demonstrated intent scorecard includes tracking 20 measurable indicators for each prospective customer in our pipeline, scoring each indicator based on our assessment of its relative importance, and then calculating a combined Demonstrated Intent, or DI, score for each of these prospective customers. As we track and score 20 individual indicators with weighted scores, it's the sum of the analysis that lets us know whether the DI threshold has been crossed, and in turn, informs our confidence level that a utility is demonstrating its intent to proceed with deploying 900 MHz spectrum. Of course, that does not mean that the process of moving them toward a contract is finished. Work is still needed, like the work we did with Tampa Electric, to move them to a contract and, therefore, out of the DI scorecard. Even with those that have shown the highest level of demonstrated intent, stops and starts are expected.
As a reminder, the analysis behind our demonstrated intense scorecard includes tracking of 'twenty measurable indicators for each prospective customer in our pipeline.
Scoring each indicator based on our assessment of its relative importance and then calculating a combined demonstrated intent or D. I score for each of these perspective customers as we track and score 20 individual indicators with weighted scores. It's the some of the analysis that lets us know whether the D. I threshold has been crossed.
And in turn informs our confidence level that the utility is demonstrating its intent to proceed with deploying 900 megahertz spectrum.
Of course that does not mean that the process of moving them toward a contract is finished work is still needed like the work, we did with Tampa electric to move them to a contract and therefore out of the D. I scorecard.
Even with those that have shown the highest of demonstrated and 10 stops and starts are expected.
Rob Schwartz: It's the total score of the opportunity within this category and beyond that makes us confident that we'll continue to finalize contracts. And we have seen that continued movement, both for the number of utilities that have crossed the threshold and beyond. As the updated DI infographic available on our Investor Relations website shows, since our last report in November, four utilities have crossed the DI threshold, representing approximately $200 million in additional potential contracts. In total, there are now 18 utilities in that highest category of DI, representing about $1.1 billion of potential contract proceeds. Note that this count is net of Tampa Electric that came out of the scorecard when we entered into a contract and also reflects the removal of one small municipal utility, a single-digit deal.
The total score of the opportunity within this category and beyond that makes us confident that we'll continue to finalize contracts.
Okay.
And we've seen that continued movement both for the number of utilities that have crossed the threshold and beyond.
As the updated D I info graphic available on our Investor Relations website.
Jos since our last report in November four utilities have crossed the D. Hy Vee threshold, representing approximately 200 million in additional potential contracts in total they're now 18 utilities in that highest category of Gi representing about $1.1 billion of potential contract proceeds.
Note that this count is net of Tampa Electric's that came out of the scorecard. When we entered into a contract and also reflects the removal of one small municipal utility are single digit deal.
Rob Schwartz: Needless to say, we are working collaboratively with all 18 of these category and the dozens of other utilities in our pipeline to move them to contract. Another significant milestone that we reached this quarter was the inclusion of new specifications in 3GPP's Release 18. Anterix's technology team was able to secure global support for our effort as we move through the standardization process. For those less familiar, 3GPP is the global organization of wireless carriers and infrastructure vendors that have defined the evolutionary standards of LTE through 3G, 4G, 5G, and beyond.
Needless to say, we are working collaboratively with all 18 of this category and the dozens of other utilities in our pipeline to move them to contract.
Another significant milestone that we reached this quarter is the inclusion of new specifications in three G. P Peas released 18.
<unk> technology team was able to secure a global support for our effort as we move through the standardization process for those less familiar three G. P. P is the global organization of wireless carriers and infrastructure vendors that has defined the evolutionary standards of LTE through <unk> for <unk> and beyond.
Rob Schwartz: The new 3GPP specification means that utilities using Anterix's 900 MHz spectrum for private wireless networks now have a clear migration path to 5G when needed, ensuring that their investments in private networks are forward compatible. Anterix is also advancing its efforts to build industry-wide support and scale for utility private wireless broadband networks at 900 MHz. We continue to engage with the utility and wireless ecosystem, as well as policymakers, to join us, including our utility customers, in this collective action. Later this month, we will host three flagship industry events to continue to build our momentum with all of our stakeholders. Anterix's presence at the key industry trade show, Distributech, will showcase dozens of real-world use cases, showing valuable applications that are available now for utilities to strengthen their grid.
The new three G. P. P specification means that utilities, using and Terex is 900 megahertz spectrum for private wireless networks now have a clear migration path to five G. When needed ensuring that their investments in private networks are forward compatible.
And <unk> is also advancing our efforts to build industry wide support and scale for utility private wireless broadband networks at 900 megahertz.
We continue to engage with the utility and wireless ecosystem as well as policymakers to join us, including our utility customers in this collective action.
Later this month, we will harness three flagship industry events to continue to build our momentum with all of our stakeholders and Texas presence at key industry trade show distribute checks will showcase dozens of real world use cases, showing valuable applications that are available now for utilities to strengthen their grids.
Rob Schwartz: We will have 40 of our active ecosystem members co-located in our booth, demonstrating their solutions that harness the power of the broadband platform we are enabling. As we've seen from prior years, this event has resulted in broadening industry awareness of the tangible and immediate benefits of 900 MHz private wireless broadband. At the same time, the winter meeting of NARUC, the National Association of Regulatory Utility Commissioners, will convene utility regulators and their staffs from virtually every state in the nation to examine industry-wide challenges, including top priorities of integrating more renewable energy and addressing the growing threats of wildfires and cybersecurity.
We will have 40 of our active ecosystem members co located in our booth demonstrating their solutions that harness the power of broadband platform, we are enabling.
As we've seen from prior years. This event has resulted in broadening industry awareness of the tangible and immediate benefits of 900 megahertz private wireless broadband.
At the same time, the winter meeting of NAREIT <unk>, The National Association of regulatory utility Commissioners will convene utility regulators and their staffs from virtually every state in the nation to examine industry wide challenges, including top priorities of integrating more renewable energy and addressing the growing threat of wildfires and.
Cyber security.
Rob Schwartz: We will be actively participating in this event to further educate policy makers about the essential need for private broadband networks to support solutions for these increasing challenges. And third, we'll have an executive presence at Wireless Sector's flagship event, Mobile World Congress, where we'll engage the global leaders driving the development and deployment of private wireless broadband networks. Anterix is also advancing the market by supporting multiple filings to the U.S. Department of Energy for funding under the bipartisan infrastructure law. One submission included a collaboration with the Southern States Energy Board and a national organization representing rural cooperative utilities, known as COOP. The business model represented in the filing provides a scalable shared communications platform where each regional utility can connect to improve grid resilience and deliver more affordable electricity to rural communities.
We will be actively participating in this event to further educate policymakers about the essential need for private broadband networks to support solutions for these increasing challenges.
And third we will have an executive presence at wireless sectors flagship event mobile World Congress, we will engage the global leaders in driving the development and deployment of private wireless broadband networks.
And Terex is also advancing the market by supporting multiple filings to the U S Department of energy for funding under the bipartisan infrastructure law. One submission included a collaboration with the Southern States Energy Board and a national organization, representing the World Cooperative utilities noticed co ops.
The business model represented in the filing provides a scalable shared communications platform, where each regional utility can connect to improve grid resilience and deliver more affordable electricity to rural communities. This will provide will provide a channel to extend in Texas 900 megahertz spectrum to the co op community addressing the two.
Rob Schwartz: This will provide a channel to extend Anterix's 900 MHz spectrum to the co-op community, addressing the 2,000 plus universe of cooperative electric providers. Additionally, Anterix was recently invited to participate in supporting the U.S. Department of Energy's efforts to help modernize the electric grid. Anterix is joining with four of the DOE's national laboratories and others to support a program entitled the Assessment of Communications Architectures for Energy Systems
Plus universe of cooperative electric providers.
Additionally, in Terex was recently invited to participate in supporting the U S Department of Energy's efforts to help modernize the electric grid and Terex is joining with four of the national laboratories, and others to support our program entitled The assessment of Communications architectures for energy systems. This multi party.
Rob Schwartz: This multi-party team is investigating ways to mitigate gaps in technology standards and processes for communications across the grid. This program is designed to support and advance future cybersecurity training and planning and provide recommendations for improved technology standards and practices for the grid. Before I wrap up our prepared remarks, I want to highlight another indicator of strength for our movement, advancing utility broadband. This quarter, as a resounding sign of further industry endorsement, we proudly welcome the legendary electric power industry leader, Tom Kuhn, as Vice Chairman of our Board of Directors. Tom brings decades of energy industry experience and policy expertise to Anterix. His track record of accomplishments and honors during his more than 30 years as President and CEO of Edison Electric Institute is formidable.
<unk> team is investigating ways to mitigate gaps in technology standards and processes for communications across the grid.
This program is designed to support and advance future cyber security training and planning and provide recommendations for improved technology standards and practices for the grid.
Before I wrap up our prepared remarks, I want to highlight another indicator of strength for our movement advancing utility broadband.
Our terex team.
This quarter as a resounding sign of further industry endorsement, we proudly welcome the legendary electric power industry leader, Tom June as Vice Chairman of our board of directors.
Tom brings decades of energy industry experience and policy expertise to <unk>. His track record of accomplishments in honors during his more than 30 years as president and CEO of Edison Electric Institute is formidable Tom has built his career on leading winning coalitions that bring together utility C suites.
Operator: Tom has built his career on leading winning coalitions that bring together utility C-suites, regulators, legislators, environmental advocates, labor leaders, and other stakeholders to advance favorable public policy. From debates over deregulation decades ago to the bipartisan infrastructure law and the Inflation Reduction Act, Thomas helped shape the industry-wide narrative and policy environment in support of the industry's vision for a resilient clean energy future. We are honored that Tom has chosen to join us in advancing the industry-wide movement towards private wireless broadband networks at 900 MHz. As we have said throughout our journey, Anterix is doing more than simply providing spectrum. We are shaping a nationwide platform to support utility success in creating a secure, resilient energy future. We are in this for the long game, and we are confident in the belief that our sector-specific strategy with multi-decade relationships uniquely positions us for long-term growth and capturing additional opportunities for Anterix and our shareholders. And with that, I'll turn it over to the operator for questions. Thank you very much. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing. To withdraw your question, please press star then two.
Regulators legislators environmental advocates labor leaders and other stakeholders to advance favorable public policies.
From debates over ledges over deregulation decades ago to the bipartisan infrastructure law and inflation reduction Act. Tom has helped shape the industry wide narrative and policy environment in support of the industry's vision for resilient clean energy future. We are honored that Tom has chosen to join us and advancing the industry wide movement.
Towards private wireless broadband networks at 900 megahertz.
As we have said throughout our journey and Terex is doing more than simply providing spectrum. We are shaping a nationwide platform to support utility success in creating a secure resilient energy future.
We are in this for the long game and we are confident in the belief that our sector specific strategy with multi decade relationships uniquely positions us for long term growth and capturing additional opportunities for <unk> and our shareholders.
And with that I'll turn it over to the operator for questions.
Thank you very much we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the keys.
Withdraw your question. Please press Star then two.
Mike Crawford: At this time, we will pause momentarily to assemble our roster. Today's first question comes from Mike Crawford with B. Reilly Securities. Please go ahead.
At this time, we will pause momentarily to assemble our roster.
Today's first question comes from Mike Crawford with B Riley Securities. Please go ahead.
Rob Schwartz: Thank you. Can you talk about what utilities that are in this highest level of demonstrating intent that are currently pursuing rate cases with their PUCs that might involve Spectrum and Wireless Investments? Mike, good morning. This is Rob.
I think you.
Can you talk about what.
Utilities that are in this highest level of demonstrating intent that are currently pursuing rate case.
Hum.
Our rate cases, what they're what they're puc's that might involve spectrum and wireless investment.
Sure Mike Good morning.
This is rob so.
Rob Schwartz: So, you know, the process, I think we talked about it before with the investors, but just to kind of go back through it a little bit, right? So a typical utility, as we work with them, goes through a process internally building a business case, you know, working with their internal management. And at some point, that gets rolled into a rate case. And, you know, this is a state-by-state regulated effort in which there are different rules in each state. And I say that because some have annual rate cases; others have rate cases that can be as, you know, infrequent as every four years or so.
The process I think we've talked about it before.
To investors, but just to kind of go back through it a little bit right. So a typical utility as we work with them goes through a process internally building a business case and theyre working with their internal management and at some point that gets rolled into a rate case and you know this is a state by state regulated effort in which there's different rules in each.
State and I say that because some have annual rate cases, others have rate cases that can be as you know infrequent as every four years or so and so what we've seen is utilities that either have funding that there from from a broader effort.
Rob Schwartz: And so what we've seen is utilities that either have funding, that they're from a broader effort, and they're able to move forward. Others are wanting to roll this into a rate case to be more specific about private LTE. Rarely is it a rate case that's about private LTE, just to be clear. We've seen all kinds of grid modernization cases that are put forward that can include other communications mediums like fiber and other things, but also more broadly infrastructure to harden and, you know, create greater reliability within the networks of utilities. And so this is one of those questions that it's an it-depends answer.
We were able to move forward others that are wanting to roll this into a rate case.
To be more specific about it.
Private LTE rarely is it a rate case, that's about private LTE just to be clear we've seen all kinds of grid modernization cases that are put forward that can include other communications mediums like fiber and other things, but also more broadly infrastructure to harden and.
Great greater reliability.
Within the networks of utilities and so.
This is one of those questions that it is and it depends answer and we've got a team of experts I mentioned in my comments about the work we're gonna do at NAREIT coming up that's the that's the annual event of all of the state regulators and through those efforts, we often have a chance to talk directly both the utility regulatory teams, but also with them to the state.
Chris Gutman-McCabe: And, you know, we've got a team of experts I mentioned in my comments about the work we're going to do at NARERA, the annual event of all the state regulators. And through those efforts, we often have a chance to talk directly with both the utility regulatory teams and also with them to the state regulators, educating them about the importance of supporting communications, typically as an element of those rate cases as they go through. And Mike, it's Chris.
<unk> educating about the importance of supporting communications typically has an element of those rate cases as they go through.
And Mike It's Chris.
Chris Gutman-McCabe: It's Rob reference. Some of them are just logical sort of after the fact that the utility has to prove that the investment is and the keywords are used and useful. And so it clearly is Rob reference differs from state to state.
As Rob referenced some of them are just logically sort of after the fact that the utility has to prove that the investment is in our in the keywords are used and useful.
And so it clearly as Rob referenced differs from state to state. So some of them will enter into a broader package that may include private LTE as they are working with us and some of US who will work with US go to conclusion actually begin deployment and then pursue a rate case.
Rob Schwartz: So some of them will enter into a broader package that may include private LTE as they are working with us. And some of us will work with us, come to a conclusion, actually begin deployment, and then pursue a rate. Okay, thank you, and then just maybe ancillary to that. Are you?
Okay. Thank you and then just maybe ancillary to that.
Are you.
Rob Schwartz: Finding much traction and success with helping utilities access some supplemental funding from the government, like from the U.S. DOE. We got this Grid Resilience and Innovation Partnership Program of. You know, there's three and a half billion in grants that have been earmarked so far. And there's also Inflation Reduction Act money that might be available. Is that something you're seeing traction on? Yeah, Mike, thanks. I'll start that, and feel free, team, to jump in. So, absolutely, you know, just to put it out more broadly, right, this is funding that is going to utilities to invest in all kinds of infrastructure, things that have impact, again, towards reliability and resiliency, typically under GRIP funding. You know, we're typically not the applicant.
Finding much traction and success with helping utilities access.
Supplemental funding from the government like from the U S. We got these grid resilience and innovation partnership.
Program of.
You know, there's $3 5 billion of grants have been earmarked so far and there's also inflation reduction act a money that might be available is that something you're seeing traction with.
Yeah, Mike Thanks.
That and feel free to jump in so absolutely.
Just to put it out more broadly right. This is funding that is going to utilities to invest in all kinds of infrastructure things that have impact again towards reliability resiliency typically under the grip funding.
We're typically we're not the applicant we're actually helping utilities.
Rob Schwartz: We're actually helping utilities with content for their applications, and we've done that in numerous cases already through multiple rounds. And so, you know, we're absolutely seeing a strong interest in that, and that's facilitating not just the funding efforts and understanding that the funding can be including private LT, but sometimes when it funds other projects, it actually frees up funds from the capital budgets to be able to fund private LT as well. And so we're seeing a lot of that. Ryan, do you want to add anything to that?
With the content for their applications and we've done that in numerous cases already through through multiple rounds and so.
We're absolutely seeing a strong interest in that and that's facilitating not just the funding efforts and understand that the funding can be including private LTE, but sometimes when it funds other projects that actually frees up funds from their capital budgets to be able to fund private LTE as well and so we're seeing a lot of that Ryan you want to add to that yeah happy to yeah.
Ryan Gerbrandt: Yeah, happy to. Yeah, there's kind of – I think of it, Mike, as kind of direct and indirect ways that it's influencing what we're doing. I would say our participation directly doesn't always come out quite as overtly, you know, as just an application for PLT funding. You'll see a lot of this, and the intention of the DOE and the structure was really targeted at outcomes, you know, so a specific set of use cases in a variety of different topics, many of which have inclusion of, you know, communications, you know, or broadband applications that fit underneath that. But outside of that, a couple things that we've seen are – you know, I'll actually give you one specific example.
It's kind of I think of them like it's got a direct and indirect ways that it's influencing what we're doing obviously your participation directly isn't always come out quite as a vertically you know it was just an application for PLT funding, you'll see a lot of us and the intention of the D. O N. The structure was really targeted at outcomes. So specific set of use cases and a variety of different.
Topics of which many have inclusion of communications, where broadband applications that fit underneath that but outside of that a couple of things that we've seen is actually give you. One specific example, one utility that we had worked with have gone through the process and unfortunately didn't receive the award but the benefit of.
Ryan Gerbrandt: You know, one utility that we had worked with had gone through the process and, you know, unfortunately, didn't receive the award, but the benefit of it was the initiative that they undertook drove internal alignment all the way up into the executive suite to really make the initiative and the program plan for private LT viable. And we're continuing to work with that utility here today. The other thing we're seeing, just to highlight something that Rob lightly referenced, is that part of this is just access to, and availability of, capital. You know, I think we've all heard across the utility ecosystem now, there are so many priorities that they have, and they have a finite ability in their capital plans to be able to deploy that capital that any initiative that brings capital in opens up the otherwise, you know, accessible capital for other programs to accelerate initiatives.
It was the initiative that they tender took you know drove internal alignment all the way up into the executive suite to really make the initiative in the program plan for private LTE viable on there we're continuing to work without utility here today. The other thing we're seeing is a highlight that the Rob slightly referenced as you know part of this is just access and availability of capital.
I think we've all heard across utility ecosystem now just there's so many priorities that they have and have a finite ability and their capital plans to be able to deploy that capital that any initiative that brings capital in opens up the otherwise accessible capital for other programs to accelerate initiatives. So we're seeing this.
Ryan Gerbrandt: So we're seeing this tail-on effect, even where, you know, PLT may not have been their top priority for BIL funding, several utilities have approached us post-awards with an intention to try to deploy some of that capital in different ways. Mike, it's Chris again. We have a team internally that works directly with utilities, and as Rob referenced earlier, you know, we did coordinate with the Southern States Energy Board and a rural cooperative association to really drive an opportunity to move private LTE at scale into the co-op community.
Tail on effect, even where P. L. T. You may not have been their top priority for vil funding several utilities have approached Us Post awards.
With an intention to try to deploy some of that capital in different ways.
And Mike It's Chris again.
We have a team internally that works directly with utilities and it is Rob Rob referenced earlier.
We did a coordinate with the southern States Energy Board.
Rural Cooperative Association to really drive.
An opportunity to.
Move private LTE at scale into the co op community. So we're trying to find creative ways to engage the department of energy and the department of Commerce on using those funds to really modernize.
Chris Gutman-McCabe: So we're trying to find creative ways to engage the Department of Energy and the Department of Commerce in using those funds to really modernize, you know, the grid across the country. We also saw more than 10 utilities receive middle mile funding so that they can deploy fiber, and in some instances, that will be part of their private LTE deployment. So they got funding for fiber elements of the private LTE department.
On.
The grid across the country. We also saw more than 10 utilities received middle mile funding. So that they can deploy fiber and in some instances that will be part of their private LTE deployment. So they've got funding.
For fiber elements of their private LTE Department. So we are seeing the funds we talk gotcha.
Mike Crawford: So we are seeing the fund, you know, we talked, gosh, a year plus ago about the work we did to get the language into the bipartisan legislation. We're now seeing the fruits of that effort, you know, sort of across the different tiers of energy. Okay, thank you, and then the final question is we saw the 16.8 million in cash that came in from Excel in January. Can you remind us when or what?
Gosh, a year plus ago about the work we did to get the language into the bipartisan legislation. We're now seeing the fruits of that effort.
Sort of across the different tiers.
The energy sector.
Okay. Thank you.
Then final question is we saw the $16 8 million of cash that came in from Excel in January can you remind us when or what expected miles cash payment milestones. We were currently expecting in the next call. It I don't know 14 months as.
Tim Gray: Expected Milestone cash payment milestones. We're currently expecting in the next call it I don't know 14 months and, as well as, I'm not sure if we know yet the mile the revenue milestones on LCR a and Chico as we do for some of your prior deals from your last 10k. Yeah, Mike, this is Tim. So, you know, we've now gotten in $190 million of the $270 million we've done in contracts, so there's $80 million more to go. We don't have any additional cash receipts scheduled from the contracts for this fiscal year, so that's through March.
As well as I'm not sure if we know yet.
The revenue milestones on <unk>.
L CRA in Chico as we do for some of your prior deals from your last 10-K.
Yes, Mike this is Tim.
So we've now gotten in one.
$190 million of the $270 million, we've done in contracts, so there's $80 million more to go.
We don't have any additional cash receipts scheduled from the contracts for this fiscal year, So thats through March.
Tim Gray: We've got another roughly $15 million contracted to come in in FY25, and then, you know, the rest of those funds, roughly $65 million in fiscal years 26 through 28, are to come in. So that's the cash flow based on the contracts that we've done to date. On revenue recognition, we'll have more in the next TED-K that we'll be filing in May about how we chart those out specifically, but I think you'll start to see both LCRA and TECO revenue recognition within the next 12 months.
Got another roughly 15 million contracted to come in in FY 'twenty five and then the rest of those funds roughly $65 million in our fiscal years 2006 through 28.
To come in so thats the cash flow based on the contracts that we've done to date.
On revenue recognition.
Well more in the next 10-K that will be filing in May about how we chart those out specifically, but I think youll start to see.
Both <unk> and Teco revenue recognition within the next 12 months.
Alana Papa: OK, thank you, Jim, thanks, Mike, thanks. The next question comes from Alana Papa with Morgan Stanley. Please go ahead. Morning. I'm on behalf of Simon Flannery today.
Okay. Thank you Tim.
Mhm.
Thank you Mike.
Thank you. The next question comes from a line of Papa with Morgan Stanley. Please go ahead.
Good morning.
Alana Papa: Just a couple quick ones from me. I know you mentioned Distributech and the use cases you'll show there. Is there any sneak peek you could give us now on what you're seeing, any updates from what you've described in your last few earnings calls? And then second, I see the buyback slowed just a bit in the quarter. I know you expected it to pick up immediately.
Alright.
A couple of quick ones.
Thanks, Jamie.
Sean.
Could you give us now on on what you are seeing any any update from what you described in our last two earnings calls.
Second.
I see the buyback.
And just a bit in the quarter.
And are you expecting it to pick up immediately can you hear me.
Maybe help us.
Alana Papa: Can you maybe help us, in terms of modeling out what we should expect on that side? Absolutely, Alana. Good morning, and thank you for the questions.
Okay.
In terms of.
What we should expect on that side.
Absolutely a lot of a good morning, and thank you for the questions. I think we're really excited about distribute jackhammer, let Ryan take that one and then Tim will talk to you about the buyback update excellent good morning.
Rob Schwartz: I think we're really excited about Distributech. I'm going to let Ryan take that one and then Tim will talk to you about the buyback update.
Ryan Gerbrandt: Yeah, let me give you a little bit of a sneak peak into how we're thinking about Distributech. And, you know, our focus there is really to demonstrate the broad set of capabilities and the priority set of use cases and things that the ecosystem at large is doing. And we're going to have a significant member of our ecosystem participants there really showcasing all the innovative solutions that they've developed, you know, as a result of having capabilities that a broadband network can bring. But, big picture, it's very consistent with how we've talked about the evolution over time, which again is a macro reflection of what's happening in the industry.
Yeah, Let me give you a little bit of a sneak peek.
Into how we're thinking about distribute tech and our focus there is really to demonstrate the broad set of capabilities and the priority set of use cases and things that the ecosystem at large is doing and we're going to have a significant member of our ecosystem participants there really showcasing all the innovative solutions that they've developed as a.
A result of having capabilities that a broadband network can bring.
But big picture, it's very consistent with how we've talked about the evolution over time, which again is a macro reflection of what's happening in the industry. The focus on security and cyber security you may have seen the Fbi's testimony.
Ryan Gerbrandt: The focus on security and cybersecurity, you know, you may have seen, you know, the FBI's testimony, you know, just at the end of January reflecting on, you know, the potential risks associated with China, you know, and the vulnerabilities and critical infrastructure and specific utilities, you know, that is a primary area of focus, you know, and one that will continue to evolve with time. We're equally seeing, you know, continued evolution around resiliency, you know, and the ongoing focus, you know, somewhat related to what we're seeing in the environmental impacts and storms, wildfire mitigation, obviously with the disastrous events in Hawaii coming through the holiday season, you know, has brought a new focus in a positive way to how critical it is that we help bring solutions, not just to be able to detect and mitigate, but to proactively help provide technology solutions to stop wildfires before they start.
Just at the end of January reflecting on the potential risk associated with China.
When the vulnerabilities in critical infrastructure and specific utilities.
That is a primary area of focus and one that will continue to evolve with time, we're equally seeing continued evolution around resiliency.
And the ongoing focus.
Somewhat related to what we're seeing in the environmental impacts and storms wildfire mitigation.
Obviously with the disastrous events in Hawaii coming.
Coming through the holiday season has brought us a new focus in a positive way to how critical it is that we help bring solutions not just to be able to detect and mitigate but to proactively help provide technology solutions to stop wildfires before they start and Thats a big part of our focus with the falling conductor protection solution that we've talked.
Ryan Gerbrandt: And that's a big part of our focus with the falling conductor protection solution that we've talked about in San Diego Gas and Electric has already deployed in the field. Clean energy, workforce mobility, those are other themes that we're continuing to see, you know, around. And also the broader topic around kind of grid edge, you know, smart metering that came through the early parts of the 2000s is really coming up into a replacement cycle here soon. And the concept of now what's being talked about in the industry as smart metering 2.0 is really becoming an evolving story that, you know, is really only capable because of the advancements that we see now in front of us with broadband communications and the ability to do more with the connected devices, you know, provide connectivity not just to the meter on the side of a consumer's home, but into the devices that they call behind the meter with renewables and residential solar and everything else that comes with it.
About in San Diego gas and electric has has already deployed in the field clean energy workforce mobility, those or other themes that we're continuing to see.
Round and also that the broader topic around kind of grid edge smart metering that came through the early parts of the two thousands is really coming up into a replacement cycle here soon and the concept of now what's being talked about in the industry as smart metering to the Idaho is really becoming an evolving story that is really.
Only capable because of the investments that we see now in front of us with broadband communications and the ability to do more with the connected devices provide connectivity not just to the meter on the side of a consumer's home, but into the devices that they call behind the meter with renewables in residential solar and everything else that comes.
With that it's really an exploding kind of opportunity, we're seeing in the ecosystem and across the industry at large we will have a total of something like 40 of our ecosystem members is to give you. An example that are both with us that distribute back. So we'll have a big team obviously their president we're anticipating a lot of direct customer interaction as we have through the last few years.
Ryan Gerbrandt: It's really an exploding, you know, kind of opportunity we're seeing in the ecosystem and across the industry at large. We'll have a total of something like 40 of our ecosystem members, just to give you an example, that are both with us at Distribute Tech. So we'll have a big team, obviously, there present. We're anticipating a lot of direct customer interaction as we have through the last few years. So this is Tim on the buyback. So we spent about $8 million this last quarter. And then the previous quarter was about 10.8 million.
So a lot of this is Tim on the buyback.
So we spent about $8 million this last quarter and then the previous quarter. It was about $10 8 million. So we will have variability quarter to quarter based on current liquidity, while we're expecting to spend particularly around clearing at that time.
Tim Gray: So we'll have variability quarter to quarter based on, you know, current liquidity, what we're expecting to spend, particularly around clearing at that time, and then looking at what the near-term cash inflows are going to be. But I would expect us to remain very active in the $250 million program that we just announced. So, you know, we're looking forward to that. We'll continue to be very active from quarter to quarter. I can't say exactly what those numbers are going to be.
Then looking at what the.
Near term cash inflows are going to be but I would expect us to remain very active in.
In the $250 million program that we just announced so.
We will continue to be very active quarter to quarter I can't say, what exactly those numbers are going to be but.
Tim Gray: But, you know, hopefully, we'll stay within the vicinity of where we've been the last couple of quarters. Got it. Thank you. As a reminder, to ask a question, you may press star, then 1.
Hopefully, we will stay within the vicinity of where we've been in the last couple of quarters.
Got it thank you.
Thank you.
To ask a question you May press Star then one.
Operator: There being no further questions, this concludes our question and answer session. I'd like to turn the call back to Rob Schwartz for any closing remarks. Thanks, MJ. Thanks, everyone, for your participation this morning. As you heard, we're really excited about the progress we made this quarter, and we remain laser focused on advancing and completing our contracts towards our mission of becoming the de facto provider of wireless broadband in our nation's utilities. Look forward to sharing more with you all soon and look forward to our next call. Thank you very much. The conference is now concluded. Thank you for your participation. You may now disconnect, and Dan, The coronavirus pandemic has come to an end. No vaccine has been administered, unlike the last. No part of the pills has survived ogravity continues to behave as a new virus Resurrecting is only as necessary
Seeing no further questions. This concludes our question and answer session I would like to turn the call back to Rob Schwartz for any closing remarks.
Thanks Sanjay.
Thanks, everyone for your participation. This morning as you heard we're really excited about the progress we've made this quarter and we remain laser focused on advancing.
And completing our contracts towards our mission of becoming the de facto provider of wireless broadband nations utilities look forward to sharing more with you all soon and look forward to our next call. Thank you very much.
The conference has now concluded. Thank you for your participation you may now disconnect your lines.
Okay.
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