Q1 2025 Anterix Inc Earnings Call
Speaker Change: Welcome to the Anterix Fiscal 2025 First Quarter Investor Conference. At this time, all participants will be in listen-only mode.
Unknown Attendee: Carter, Investor conference. At this time, all participants will be in all this lonely mode.
Operator: Investor Conference. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Natasha Vecchiarelli. You may begin.
Unknown Attendee: Later, we will conduct a question-and-answer session.
Natasha Vecchiarelli: I would not like to turn a call over to your host, Natasha Vecchiarelli. You may begin.
Natasha Vecchiarelli: Thank you, operator, and good morning, everyone. I'm Natasha Vecchiarelli, Vice President of Investor Relations and Corporate Communications, and I welcome you to our first quarter, fiscal year 25 Investor Update Call. Joining us today are Rob Schwartz, President and CEO, Ryan Gerbrandt, C-L-O-O, Kim Gray, C-F-O, and Chris Guttman-McKeeb, Chief Regulatory and Communications Officer.
Speaker Change: Thank you operator, and good morning, everyone.
Natasha Vecchiarelli: Thank you, Operator, and good morning, everyone. I'm Natasha Vecchiarelli, Vice President of Investor Relations and Corporate Communications, and I welcome you to our first quarter Fiscal Year 25 Investor Update Call. Joining us today are Rob Schwartz, President and CEO, Ryan Gerbrandt, COO, Tim Gray, CFO, and Chris Guttman-McCabe, Chief Regulatory and Communications Officer. I'm also happy to share that Tom Kuhn, our Vice Chairman, is also joining us today.
Speaker Change: Natasha Vecchiarelli, Vice President of Investor Relations, and corporate Communications and I Welcome you to our first quarter fiscal year 'twenty five investor update call.
Speaker Change: Joining us today are Rob Schwartz, President and CEO.
Speaker Change: Ryan Gerbrandt T O L 10, Gray CFO, and Chris gotten Mccabe, Chief regulatory and Communications officer.
Natasha Vecchiarelli: I'm also happy to share that Tom Cune, our Vice Chairman, is also joining us today. Before turning the call over to Rob, I'd like to remind you that during the conference call, we may make forward-looking statements regarding future events such as our commercial outlook, future operations, our expected or potential performance, and guidance. These statements are based on current expectations and assumptions and are subject to risk uncertainties. Investors are cautioned not to place undue reliance on forward-looking statements. We encourage you to review the company's SEC filings, including, without limitation, the company's Form 10-K and 10-Q, which identifies specific risk factors that may cause actual results or events to differ materially from those described in these forward-looking statements.
Speaker Change: I'm also happy to share that Tom King Our Vice Chairman is also joining us today.
Natasha Vecchiarelli: Before turning the call over to Rob, I would like to remind you that during this conference call, we may make forward-looking statements regarding future events, such as our commercial outlook, future operations, our expected or potential performance, and guidance. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Investors are cautioned not to place undue reliance on forward-looking statements. We encourage you to review the company's SEC filings, including, without limitation, the company's Form 10-K and 10-Q, which identify specific risk factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These files can be accessed on our website. Additionally, we do not assume any obligation to update any forward-looking statements. With that, I'll turn the call over to Rob.
Natasha Vecchiarelli: These files can be accessed on our website. Additionally, we do not assume any obligation to update any forward-looking statements.
Robert Schwartz: With that, I'll turn the call over to Rob. Thanks, Natasha. Good morning, everyone, and thank you all for joining us.
Robert Schwartz: Good morning, everyone, and thank you all for joining us. And a special welcome to our distinguished guest, Tom Kuhn, who, as you know, joined us as vice chairman in January after three decades of leading the Edison Electric Institute. Since our last quarterly investor call discussing our ENCOR agreement was just over a month ago, we'll keep today's remarks short. I'll start with a quick overview and then turn it over to Tom, who will share his industry insights and his perspectives on Anterix and our growing role within the utility sector.
Robert Schwartz: And a special welcome to our distinguished guest, Tom Cune, who, as you know, joined us as Vice Chairman in January after three decades of leading the Edison Electric Institute. Since our last quarterly investor call discussing our encore agreement was just over a month ago, we'll keep today's remarks short. I'll start with a quick overview, and then turn over to Tom, who will share his industry insights and his perspectives on enterics and our growing role within the utility sector. Let me start with where we are as a company as we continue to enhance our position in three key areas: our utility customer base, policy maker advocacy, and shareholder value creation.
Robert Schwartz: Let me start with where we are as a company, as we continue to enhance our position in three key areas: our utility customer base, policymaker advocacy, and shareholder value creation. Regarding our utility customer base, the 900 MHz utility broadband movement now stands strong with seven utility customers across 15 states, the scale of which has a total footprint when combined positions it as the fourth largest wireless carrier in the nation, covering more geography, we believe, than all other private wireless broadband enterprise networks combined.
Robert Schwartz: Regarding our utility customer base, the 900 MHz utility broadband movement now stands strong with seven utility customers across 15 states. The scale of which, when combined, positions it as the fourth largest wireless carrying the nation. Covering more geography, we believe, than all other private wireless broadband enterprise networks combined. We've developed a significant pipeline of customer opportunities measured in part by our demonstrated intent scorecard that provides measurable indicators of utility intent toward deploying a 900 MHz private wireless network. We continue to collaborate with enterics active ecosystem members to pursue the discovery and development of pioneering outcomes-driven products and solutions that harness 900 MHz networks like our catalyst solution offering.
Robert Schwartz: We've developed a significant pipeline of customer opportunities, measured in part by our demonstrated intent scorecard that provides measurable indicators of utility intent toward deploying a 900 MHz private wireless network. We continue to collaborate with Anterix Active Ecosystem members to pursue the discovery and development of pioneering, outcomes-driven products and solutions that harness 900 MHz networks, like our Catalyx solution offering. And just recently, we announced an agreement with the National Rural Telecommunications Cooperative, along with Southern Company and Ericsson, that leverages NRTC as an indirect channel to offer the benefits of our 900 megahertz spectrum to their rural cooperative utility members.
Robert Schwartz: And just recently, we announced an agreement with the National Rural Telecommunications Cooperative, along with Southern Company and Ericsson, that leverages NRTC as an indirect channel to offer the benefits of our 900 megahertz spectrum to their rural cooperative utility members. This announcement underscores the growing nationwide demand from utilities for our offering, regardless of ownership model or size, and further demonstrates Anterix's role in helping to shape the nationwide network of networks landscape. On the regulatory front, we continue to engage with key policy makers, both at the federal level, including numerous co-petitioners for the FCC 900 megahertz, five by five proceeding, and at the state level, working closely with utilities before various public utility commissions.
Robert Schwartz: This announcement underscores the growing nationwide demand from utilities for our offering, regardless of ownership model or size, and further demonstrates Anterix's role in helping to shape the nationwide network-of-networks landscape. On the regulatory front, we continue to engage with key policymakers, both at the federal level, including numerous co-petitioners for the FCC 900 MHz 5x5 proceeding, and at the state level, working closely with utilities before various public utility commission With each, we are continuing to increase awareness of the significant benefits that 900 MHz private wireless broadband can unlock for the utility sector, and we believe the messages are being well received.
Robert Schwartz: With each, we are continuing to increase awareness of the significant benefits that 900 megahertz private wireless broadband can unlock for the utility sector, and we believe the messages are being well received.
Robert Schwartz: And now, turning to our shareholders, at the heart of our strategy and our mission to actualize it, we maintain our focus on efforts that enhance shareholder value. Our number one priority is continuing to drive our customer pipeline towards spectrum transactions. With that, we also remain focused on continuing development of our team, including our three newest board members, targeted use of our share we purchased program, and identifying opportunities within the product and solution space. Our goal is to continue to enhance our position within each of these three areas by executing on our mission, delivering secure, scalable solutions, enabled by private wireless broadband connectivity for the benefit of utilities and the communities that they serve.
Robert Schwartz: And now turning to our shareholders, at the heart of our strategy and our mission to actualize it, we maintain our focus on efforts that enhance shareholder value. Our number one priority is continuing to drive our customer pipeline toward spectrum transactions. With that, we also remain focused on continuing the development of our team, including our three newest board members, making targeted use of our share repurchase program, and identifying opportunities within the product and solution space.
Robert Schwartz: Our goal is to continue to enhance our position in each of these three areas by executing on our mission, delivering secure, scalable solutions enabled by private wireless broadband connectivity for the benefit of utilities and the communities that they serve. And with that, I'll turn it over to Tom.
Tom Cune: And with that, I'll turn it over to Tom. Well, thanks, Rob, and good morning, everyone. It is a great honor for me to join you today as and Terrick's Vice Chairman to share some thoughts. And I've got to say that even before joining in January, I have seen a growing need in the utility industry for the more secure and resilient broadband communications solution, and Terrick's spearheading. I am very excited to help make it a reality. My experience leading the Edison Electric Institute for more than three decades created a tremendous amount of pride in the electric power industry and pride in the industry's people at every level who make incredible things happen every day.
Tom Kuhn: Well, thanks, Rob, and good morning, everyone. It is a great honor for me to join you today as Anterix's vice-chairman and to share some thoughts. And I've got to say that even before joining in January, I saw a growing need in the utility industry for the more secure and resilient broadband communication solution that Anterix is spearheading. I am very excited to help make it a reality.
Tom Kuhn: My experience leading the Edison Electric Institute for more than three decades has created a tremendous amount of pride in the electric power industry and pride in the industry's people at every level who make incredible things happen every day. Throughout my career, I've said many times that the electric power sector is leading a profound transformation. This transformation continues to unfold every day.
Tom Cune: Throughout my EI career, I said many times that the electric power sector is leading a profound transformation. This transformation continues to unfold every day. Today, carbon emissions from the U.S. Electric power sector are now as low as they were nearly 50 years ago, while electricity use has more than doubled. The industry's commitment to advancing security, preparedness, and resilience also has never been stronger. Furthermore, demand for electricity is rising strongly; the forecast calling for even more growth. Data Centers, Artificial Intelligence, Electric Heating, Electric Transportation, and the Renaissance and Domestic Manufacturing, all being that the man will increase more rapidly than at any point in the past three decades.
Tom Kuhn: Today, carbon emissions from the U.S. electric power sector are now as low as they were nearly 50 years ago, while electricity use has more than doubled. The industry's commitment to advancing security, preparedness, and resilience has also never been stronger. Furthermore, demand for electricity is rising strongly, with forecasts calling for even more growth. Data Centers, Artificial Intelligence, Electric Heating, Electric Transportation, and the Renaissance in Domestic Manufacturing all mean that demand will increase more rapidly than at any point in the past three decades.
Tom Cune: Enabling this transformation to a cleaner, more resilient, more secure, and more electrified economy requires tremendous investments. Despite the headwinds of higher inflation and interest rates, the electric power sector continues to make record-high capital investments. Over the past decade, U.S. investors on the electric companies alone have invested more than $1,000,000 in critical energy infrastructure. This includes about 170 billion in 2023 alone to make the grid stronger, smarter, cleaner, more dynamic, and more secure. These investments reflect the industry's deep commitment to transforming our energy economy, and with the uncertain macroeconomic conditions we are all facing, how utilities prioritize their capital investments is more crucial than ever for these investments to bear the most free.
Tom Kuhn: Enabling this transformation to a cleaner, more resilient, more secure, and more electrified economy requires tremendous investment. Despite the headwinds of higher inflation and interest rates, the electric power sector continues to make record-high capital investments. Over the past decade, U.S. investor-owned electric companies alone have invested more than $1 trillion in Critical Energy Infrastructure. This includes about $170 billion in 2023 alone to make the grid stronger, smarter, cleaner, more dynamic, and more secure.
Speaker Change: U S investor owned electric companies alone have invested more than one trillion.
Speaker Change: Critical energy infrastructure.
Speaker Change: This includes about 170 billion in 2023 alone to make the grid stronger smarter cleaner more dynamic and more secure.
Tom Kuhn: These investments reflect the industry's deep commitment to transforming our energy economy. And with the uncertain macroeconomic conditions we are all facing, how utilities prioritize their capital investments is more crucial than ever for these investments to bear the most fruit. I believe that private wireless broadband investments are among the most critical investments for utilities to make at this juncture of the transformation. The solutions that utilities can provide via a broadband-enabled electric grid will advance the resilient clean energy future that electricity customers want and expect.
Speaker Change: These investments reflect the industry deep commitment to transforming our economy.
Speaker Change: And with the uncertain macroeconomic conditions, we are all facing.
Speaker Change: Utilities prioritize their capital investments is more crucial than ever for these investments to bear the most fruit.
Tom Cune: I believe that private wireless broadband investments are among the most critical investments for utilities to make at this juncture of the transformation. The solutions that utilities can provide via a broadband-enabled electric grid will advance the resilient clean energy future electricity customers want and expect. For more than a century, our nation's utilities have been in the business of serving customers and communities. The challenges are effectively meeting their customer expectations today, and for the years and decades ahead, are causing utilities to look at every part of their operations as a candidate for transformation. All together, these considerations help to describe and unpack what we mean when we say that the modern grid requires modern communications.
Speaker Change: I believe that private wireless broadband investments are among the most critical investments for you.
Speaker Change: Utilities to make at this juncture of the transformation with.
Speaker Change: The solutions that utilities can provide.
Brian: Brian a broadband enabled electric grid will advance the resilient clean energy future electricity customers want and expect.
Tom Kuhn: For more than a century, our nation's utilities have been in the business of serving customers and communities. The challenges of effectively meeting their customer expectations today. From a technology perspective, the 900 megahertz movement is making broadband connectivity a reality for the modern grid. And this way, utilities are able to use their networks to target their mission-critical objectives. Thanks, Tom.
Brian: For more than a century, our maisons utilities have been in the business of serving customers and communities.
Brian: The challenges are effectively meeting their customer expectations today and.
Brian: And for the years and decades ahead by causing utilities to look at every part of their operations as a candidate for transformation.
Brian: Altogether.
Tom Cune: From a technology perspective, the 900 megahertz movement is making broadband connectivity a reality for the modern grid, with enormous implications for every part of the system. This powerful technology or family of technologies united and empowered by private broadband networks helps utilities to address their greatest challenges and opportunities. 900 megahertz private wireless broadband networks help to enable the burst use cases that range from enhancing cyber and physical security to depending against wildfires to enabling greater inner-operability to empower the restoration and mutual assistance activities and integrating more carbon-free energy resources. And this way, utilities are able to use their networks to target their mission-critical objectives.
Tom Cune: Fundamentally, this broadband movement is well underway, and I believe it is foundational to achieving the growing requirements of the modernized electric grid to effectively serve the needs of our communities, including security, resilience, and decarbonisation goals. and I am very, very excited to be in a position to help. Anterix continues as separate to actualize these important outcomes for a nation's utility industry.
Robert Schwartz: But that, I'll turn it back over to Rob. Thanks, Tom. Anterix's overall strategy to date has enabled us to deliver game-changing solutions to many of our nation's leading utilities, and as a result, we're primed to continue to successfully execute our mission. Anterix has the right people, the right partners, and the right solutions to help our nation's utilities on their electric grid monetization journeys.
Robert Schwartz: We're proud of what we've accomplished to date and are excited about what's in store for the future.
Unknown Attendee: With that, I'll turn it over to the operator to open the call for questions. At this time, we will conduct a question-and-answer session. If you would like to ask a question, please press star one on your touchstone keypad now. You'll be placed into the queue, and it will order received. Once again, to ask a question, please press star one on your touchstone keypad now.
Michael Crawford: And our first question comes from Mike Crawford, Be Rally Securities. Your line is open. Thank you.
Michael Crawford: Could you just tell us a little bit more about this new NRTC partnership? How did that affect your DEI scorecard? Are there any pricing mechanisms involved with this agreement that would facilitate easier individual negotiations with any particular rural utility? Sure.
Robert Schwartz: Good morning, Mike. Thanks for the good question. But we're excited about the NRTC agreement on multiple levels. First is, it really is an expansion of a 900 megahertz capabilities into rural America. And for us, the cooperatives play a key role in the fabric of the energy sector across the nation. And so this important relationship with NRTC brings a lot of that. And just so you know, NRTC, as a party, has been around for decades, and happens to be led by some former Nextel folks that we know well from our past experience. But importantly, they really serve a broad level of capabilities.
Ryan Gerbrandt: And they're specifically driving to the needs of rural utilities and the communities they're serving. And that and that has shown success in the past as they pushed the appropriate AMI solutions and supported them. They were, you know, one of the largest distributors of one of the primary vendors of AMI in earlier years. They have supported rural fiber and other key communications buildouts. And so, as an operating partner to their cooperative members, of which, you know, as you saw this, there's 1500 plus members. That's been a critical part of their role. We're excited about it too, because we're partnering, you know, in that relationship also with Southern Company, who, as you know, I always describe as the crystal ball, is really the leader in deploying and capturing the important critical value out of private LTE.
Ryan Gerbrandt: And also their key vendor, Ericsson, is part of that relationship as well. And so I think between all of us, we're really excited about providing an easier solution, leveraging 900 megahertz to that full community. You know, I think a couple of other key points there that I think they think are critical. You know, the way in which these services is going to be offered, you asked about pricing. You know, we will continue to garner what we believe to be fair market value for our spectrum in these future transactions as they move forward. And so we have a really a cost effective indirect channel for us as we look at the ability to get to thousands of utilities through this, through this valuable channel and relationship that we have here, and really be able to continue to stitch together the fabric of a nationwide network of utility networks.
Robert Schwartz: You know, I think a couple of the key points there that I think they think are critical, you know, the way in which these services are going to be offered, you asked about pricing, you know, we will continue to garner what we believe to be fair market value for our spectrum in these future transactions as they move forward. And so we have a really cost-effective indirect channel for us as we look at the ability to get to thousands of utilities through this, through this valuable channel and relationship that we have here, and really be able to continue to stitch together the fabric of a nationwide network of utility networks.
Ryan Gerbrandt: So that's that's maybe a summary. Ryan, anything you want to add to that? Yeah, just.
Ryan Gerbrandt: So that's maybe, in summary, Ryan, anything you want to add to that?
Ryan Gerbrandt: Yeah, just a couple things like, Good morning, Mike. What excites me about this, the Rob highlighted, you know, is, you know, the ability to effectively capture, you know, kind of go to market strategies for a channel, you know, with some 1500 numbers, you know, across the co-op landscape in the US. You know, the energy, the energy sea organizations just has such a strong track record and a relationship. They're a, they're a co-op themselves. So they're a member-driven organization that has strong relationships and ties. And there's some unique needs, you know, when you start moving down market, you know, from the IOUs where our front end focus is really on.
Ryan Gerbrandt: There's some new ways that, you know, really co-ops need to look at how they ultimately embrace and go forward with a solution like this. And that's where an RTC's expertise is putting those pieces together. And so we're very much looking at it, you know, that way in terms of how we help build scale, putting NRTC in the front end as a channel. And so, as a result, we don't see it having a direct impact to kind of how we manage our direct channel through DI. You know, we're going to keep that still focused on our IOUs.
Speaker Change: In terms of how we help build scale, putting energy C. In the front end as a channel and so as a result, we don't see it having a direct impact to kind of how we manage our direct channel through D. I you know, we're going to keep that still focused on our I O U's.
Ryan Gerbrandt: And as we get some, you know, some work underneath us, you know, and behind us with NRTC, you know, we'll establish, you know, how we want to continue to, you know, keep progress reporting on that channel.
Speaker Change: And as we get some some some work underneath US you know when behind us within our T C.
Speaker Change: We will establish how we want to continue to keep progress reporting on that channel.
Michael Crawford: Okay, thank you very much.
Speaker Change: Okay. Thanks.
Speaker Change: Thank you very much just one final question for me, maybe more for Tim but.
Michael Crawford: Just one final question for me, maybe more for Tim, but it's nice to see you got in the first 10 million from Encore. Is the company still expecting just another 10 million of cash coming in from spectrum deliveries in this fiscal year? And then a 34 million early, or a 39 million, I think early in next fiscal year. Yeah, Mike, you're correct. So it's about $10 million for the rest of this fiscal year. But, you know, we've got a significant amount coming in next year, including about 92.5 million dollars from Encore of the total about 176 million that we have not collected yet.
Speaker Change: It's nice to see you got in the first $10 million from encore.
Speaker Change: The company is still expecting just another $10 million of cash coming in from spectrum deliveries in this fiscal year, and then a 34 million.
Speaker Change: Early or $39 million I think early in <unk> and in next fiscal year.
Speaker Change: Yes, Mike you are correct. So it's about $10 million for the rest of this fiscal year.
Speaker Change: But we've got a significant amount coming in next year, including about $92 $5 million from encore of the total of about $176 million that we have not collected yet so we're going to see all of the proceeds from oncor.
Michael Crawford: So we're going to see all of the proceeds from Encore in by the end of our next fiscal year. Okay, great.
Speaker Change: And by the end of our next fiscal year fiscal year.
Speaker Change: Okay, great. Thank you very much.
Michael Crawford: Thank you very much. Thank you, Mike.
Mike: Thank you Mike.
Walter Piecyk: Our next question comes from Walter, PSI, Light Shed Partners. Your line is open. Thanks. I don't know if Chris is there, but maybe you could just kind of frame up for us. Remind us what it was like under a Trump administration in terms of programs that would help to upgrade the... and the infrastructure in our country, utilities, like many things, is obviously very bad. And then similarly, what you may know of, who Kamala could put in the key positions that might have, you know, again, situations where there's incremental funding or perhaps sticks to try and improve our infrastructure, it just seems odd that, you know, under the current administration there hasn't been more given, you know, kind of the demands where they want EVs to be and, you know, where the existing infrastructure is today.
Mike: Our next question comes from Walter Piecyk of <unk> partners.
Unknown Attendee: Our next question comes from Walter Piecyk of LightShed Partners.
Speaker Change: Your line is open.
Mike: Thanks.
Mike: Chris is there, but maybe you could just kind of frame up for us.
Walter Piecyk: Remind us what it was like kind of a Trump administration in terms of programs that would help to upgrade the <unk>.
Walter Piecyk: Infrastructure in our country, utilities, like many things, is obviously very bad. And then, similarly, who you may know of who Kamala could put in key positions.
Speaker Change: Infrastructure in our country utilities.
Speaker Change: Just like many things is obviously very bad and then similarly, what you may know of who Kamala.
Speaker Change: Could put in the key positions.
Speaker Change: That might have.
Speaker Change: Again situations, where there's incremental funding or perhaps sticks.
Speaker Change: To try and improve our infrastructure.
Speaker Change: It just seems odd that under the current administration there hasn't been more gear.
Speaker Change: Given kind of the demands they want evs to be in.
Speaker Change: Where the existing infrastructure is today. So I just I was hoping that if Chris could you just give us like a 10000 foot view on.
Christopher Guttman: So I was hoping that if Chris could just give us like a 10,000-foot view on how that might play out under either administration. Yeah, hey, well, yeah, I would say, first of all, what we're working on, let me take it down to Anterix for a moment. What we're working on is incredibly not political. I mean, our first vote, original report in order was under Republican administration, and it was a 5-0 vote. The processing of all of the licenses in the last several years has been happening under Democratic administration at the FCC, and that's been fantastic.
Chris: How that might play out under either administration.
Robert Schwartz: Yeah, hey, Walt. Yeah, I would say so.
Walt: Hey, Walt.
Walt: Yeah, I would say.
Chris: First of all what we're working on me, let me take a downturn in tariffs for a moment.
Walt: What we're working on is is incredibly not political I mean, our first vote original report and order was under a Republican administration and it was a FIFO vote the.
Chris: The processing of all of the licenses.
Chris: In the last several years have been happening under a Democratic administration at the FCC and that's been fantastic. So we don't see any any.
Christopher Guttman: So we don't see any difference whether Kamala Harris wins it or Donald Trump wins the election. Now, I think that's probably also true with regard to infrastructure. The goals of driving infrastructure investment. Now, we probably will see less federal money coming in if Donald Trump wins. I think the Republicans weren't super excited about the bipartisan infrastructure legislation that brought in hundreds of billions. So, so I think we'll probably see less focus in terms of tax-based revenue dollars flowing to public companies, but I do think you could see things like tax credits and other ways to drive and stimulate infrastructure investment.
Speaker Change: <unk> difference, whether Kamala Harris wins that are Donald Trump wins Wednesday election, now I I I think that's probably also true with regard to infrastructure.
Chris: The goals of Av.
Speaker Change: Driving infrastructure investment now, we probably will see less federal money coming in if Donald Trump wins, I think the Republicans Werent Super excited about the bipartisan infrastructure legislation that brought in.
Chris: Hundreds of billions so.
Chris: So I think we'll probably see less.
Chris: Focus in terms of tax based revenue dollars flowing to.
Chris: Public companies, but I do think you could see things like tax credits and other other ways to drive and stimulate infrastructure investment, but but my guess is youre going to see particularly over the next several months Youll see another tranche of funding coming out from from the grip funds.
Christopher Guttman: But my guess is you're going to see, particularly over the next several months, you'll see another tranche of funding coming out from the grip funds. And so you're seeing a lot of that money that was built up sort of behind the dam is starting to flow out from infrastructure projects, and those are net benefits to us. Whether a utility gets it to deploy, you know, private wireless or it helps offset something they were going to use capital for in another area and it frees up capital for private or it's about deploying new transmission lines or new distribution lines.
Chris: And so youre seeing a lot of that money that was built up sort of it behind the dam is starting to flow out.
Chris: Infrastructure projects and those are net benefits to us whether a utility gets it to deploy.
Chris: Private wireless or it helps offset something that we're going to use capital for in another area and it frees up capital for private or it's about deploying a new transmission lines for new distribution lines. All of those things are going to are going to benefit and are going to be enhanced by by.
Christopher Guttman: All of those things are going to benefit and are going to be enhanced by, you know, sort of a private wireless broadband network. So, you know, we're excited whenever dollars go out to the utilities because we think it's a net benefit for us.
Chris: Sort of a private wireless a wireless broadband network. So we're excited whenever dollars go out to the utilities, because we think it's a net benefit for us and I think.
Walter Piecyk: And I think, you know, we sort of look at the futures as either party winning is going to be fine for Antirax. I guess I understand that in the context of what you were saying under the Trump administration, but I think. to kind of drill down on a Kamala administration. I mean, it seems to me that under Biden, agencies weren't filled for weeks, months, years. It was just kind of, I don't know what the politically correct term is, but I guess things weren't getting done. Is there, is she, is she drawing on the same people?
We sort of look at the futures is either party winning is going to be fine for an <unk>.
Chris: I guess I understand that in the context of what you were saying under the Trump administration, but I think.
Unknown Attendee: kind of drill down on a Kamala administration. I mean, it seems to me that under Biden, agencies weren't filled for weeks, months, years. It was just kind of I don't know what the politically correct term is, but I guess things weren't getting done. Is there, is she, is she drawing on the same people, or are we going to have?
Speaker Change: To kind of drill down on a on a commonly administration I mean, it seems to me that on or Biden agencies werent filled for weeks months years.
Chris: It was just kind of.
Chris: I don't know what the politically correct term is but I guess things werent getting done.
Speaker Change: Is there as she.
Chris: She drawing on the same people or are we going to have.
Christopher Guttman: Are, are we going to have some improvements and maybe some more proactivity that is going to ultimately benefit you guys, but really push on some upgrades in, in the utilities? Is there any reason to be incrementally optimistic that you have a more competent, you know, administration, potentially? Sure, and, and, and seeing that we're always operating in the political realm, I, I, I, I, I will say that Walt said that he hopes for a more competent, I, I, I, I, I, I, I would know from our perspective, improvement, where you think the baseline? Yeah, yeah, yeah, yeah, no, no, no, I know, I know, I'm, I'm, I'm teasing, but the reality is, she will absolutely benefit from having the starting point of the Biden folks in the agencies and then can replace if she desires at, obviously, her own pace, right?
Speaker Change: Some improvements and maybe some more proactively.
Speaker Change: <unk>.
Speaker Change: Is going to ultimately benefit you guys aren't really push on.
Speaker Change: Some upgrades and and utilities is there any reason to be incrementally optimistic that you have a more competent.
Speaker Change: Administration.
Speaker Change: Potentially.
Speaker Change: Sure.
Speaker Change: And seeing that we're always operating the political realm I wont I will say that Walt said that he hopes for a more competent.
Speaker Change: I want to pursue.
Speaker Change: Tax rate improvement.
Speaker Change: The baseline yeah, yeah, yeah yeah.
Speaker Change: No no no I know I know I mean, I'm teasing, but.
Speaker Change: The reality is she will absolutely benefit.
Speaker Change: From having the starting point of the Biden folks in the agencies and then Ken replace if she desires Ed obviously her own pace right. She shall begin with you know a.
Christopher Guttman: She, she'll begin with, you know, a full FCC; she'll begin with a full FERC, a, you know, an already operational and operating DOE, Department of Energy, things like that. So, so that's the net benefit that she would have, you know, as if Biden was still running and he won. So, so she can begin with that underpinning and then, and then go from there and change out what she wants and accelerate, you know, the areas where she wants to accelerate activity. Certainly she can do that, but she is beginning, you know, at the 50-yard line, right?
Speaker Change: A full FCC shall begin with our full FERC.
Speaker Change: And already operational in operating Doa Department of energy things like that so so that's the net benefit that she would have.
Speaker Change: If biden was still running and he won so so she can begin with that underpinning and then and then go from there and change out what she wants and accelerate the areas where she wants to accelerate activity certainly she can do that but she is beginning.
Speaker Change: At the at the 50 yard line right.
Christopher Guttman: Yeah.
Speaker Change: Yep.
Walter Piecyk: And then Rob, I don't want to try and create a new concern in the market, because, but I think it's, I just want to ask the question because I've seen an impact, impact us in many other names, but, you know, these, the constellations that are getting built, I mean, primarily Starlink, maybe, you know, maybe Amazon and Kuiper gets going, but it just, there's, I think it's sometimes an investor perception, perception that it just wipes out all forms of connectivity and some of the, some of the concerns that hear pretty aggressive in that regard. Can you just refresh us on, you know, in your conversations with utilities, how they view that as a piece in their overall puzzle of making sure that they're, they've got the right connectivity and they're not working.
Speaker Change: And then Rob I don't want to try and create a new concern in the market, but I think it's I just wanted to ask the question because I've seen an impact.
Speaker Change: Impacts us and many other names, but you know there's the constellations.
Speaker Change: That are getting built I mean, primarily starlink maybe.
Speaker Change: Maybe Amazon and Kuiper gets going but.
Speaker Change: It just there's I think it's sometimes an investor perception perception that it just wiped out all forms of connectivity and some of the some of the concerns I hear pretty aggressive in that regard.
Speaker Change: Can you just refresh us on.
Speaker Change: In your conversations with utilities, how they view that as a piece of their overall puzzle of making sure that they're they've got the right connectivity in their network.
Robert Schwartz: And, and go on risk if any that provides you guys. Absolutely. It's a great question. Look, and you and I've been around, you know, long enough for decades, watching the cycle of focus on various forms of communication to serve, you know, the nation, whether it's, you know, wireline, fiber, wireless, satellite. It might be all play an important role in the solution set for industrial users. But there's nothing that, as a substitute, provides the level of control, low latency, broadband capabilities for the specific needs of utilities as well as wireless. But I'm certain that satellite, as fiber does today, as wireline has in the past, will play a complimentary role from I view, you know, in getting to coverage. You know, in some ways, in some of the areas, clearly there's a, there's a, you know, heavy competition in that space, as you said, with all the different parties that are moving forward and trying to provide solutions to bring mobility solutions to kind of the fringe areas where, where there isn't capabilities now.
Speaker Change: And we won't risk if any of that provides you guys.
Speaker Change: Absolutely. It's a great question look and you and I've been around long enough for decades watching the cycle of a focus on various forms of communication to serve the nation, whether it's wireline fiber wireless satellite it might be all play an important role in the in the solution.
Speaker Change: Solution set for industrial users.
Speaker Change: But there's nothing that is a substitute provides the level of control low latency broadband capabilities for the specific needs of the utilities as well as wireless, but I'm certain that satellite as fiber does today has as wireline has in the past will play a complementary role from my view.
In getting to coverage.
Speaker Change: In some ways in some of the areas.
Speaker Change: Clearly, there's there's a there's a heavy competition in that space as you said with all the different parties that are moving forward and trying to provide solutions to bring.
Speaker Change: Mobility solutions to kind of the fringe areas, where there isn't capabilities now.
Robert Schwartz: But I think from a cost effectiveness and a resiliency, and importantly, latency, because a lot of the things we're talking about from a solution standpoint, have to have latency that often is greater, a lower latency, a faster path of data travel than satellite can offer. I think those are all part of the reasons why utilities are choosing to build and operate and control their own networks, you know, in the way they are. So I think, I think satellite is a great technology, but it'll be a complement more than anything else. And I think just like other solutions that we add to our toolkit, you know, I could see in the future that that would make sense for us and our customers to look at using that as a complement to where they don't have, you know, wireless built out.
Speaker Change: But I think from a cost effectiveness and a resiliency and importantly latency because a lot of the things we're talking about from a solution standpoint to have to have latency that often is greater or lower latency and a faster path of data travel than satellite can offer.
Speaker Change: I think those are all part of the reasons why utilities are choosing to build and operate and control their own networks.
Speaker Change: And the way they are so I think it's I think satellites, a great technology, but it'll be a complement more than anything else and I think just like other solutions that we add to our to our toolkit you know I could see in the future that that would make sense for us and our customers to look at using that as a complement to where they don't have a wireless build out.
Rob Schwartz: Rob It's Chris.
Tom Cune: I think that, you know, I would certainly agree with Robin Quest that we, you know, work on a bipartisan basis, but we have bipartisan support for building infrastructure. The electric accelerating that even more with respect to the infrastructure bipartisan infrastructure bill and the Inflation Reduction Act. And I think that, you know, we're working with both, you know, with both Republicans and Democrats, you know, on their conventions and on their campaigns to get the message across. You know, what's really going to propel things so much is two things. One is the accelerating electricity growth, you know, as Rob indicated from data centers. And that's why I was asking the question, because we all have to own generators now because, I mean, all but despite all that investment, you just referenced, everyone's electricity is constantly going down and we only want to put more demands on it with additional EVs.
Rob Schwartz: Oh I think that.
Speaker Change: I would certainly agree with Rob and Chris.
Unknown Attendee: that we, you know, work on a bipartisan basis, and we have bipartisan support. Accelerating that even more with respect to the infrastructure, the bipartisan infrastructure bill and the Inflation Reduction Act, and with both Republicans and Democrats at their conventions and on their campaigns to get the messages across. You know, what's really going to propel things so much are two things. One is
Speaker Change: We work on a bipartisan basis and but.
Speaker Change: But we have bipartisan support for.
Rob Schwartz: We are building.
Rob Schwartz: Infrastructure the electric companies are spending a record of Memphis.
Rob Schwartz: This year over $190 billion.
Rob Schwartz: To do it where.
Unknown Attendee: Gotcha.
Rob Schwartz: Accelerating that even more with respect to the infrastructure.
Rob Schwartz: So that just takes a bill in the inflation reduction Act.
Rob Schwartz: And I think that.
Rob Schwartz: We're working with both.
Rob Schwartz: And it was both.
Rob Schwartz: Republicans and Democrats.
Rob Schwartz: Sure.
Rob Schwartz: Conventions and on their campaigns to get the message across.
Rob Schwartz: What's really going to propel things. So much is two things one is the <unk>.
Speaker Change: Accelerating the electricity growth.
Rob Schwartz: Rob indicated in some data centers and Oh, that's why I was asking the question because because we all have to own generators now because.
Speaker Change: But despite all of that investment you just reference everyone's electricity is constantly going down and we only want to put more demands on it with additional evs.
Tom Cune: Absolutely, absolutely. And I think that, you know, in addition to that, you see the extreme weather, which is a challenge for utilities, too. And modern communications really helps to deal with it with respect to mutual assistance programs and wildfires and on, you know, integrating new sources of electricity into it when they can be virtual power plants for domestic management programs or the all the different. So there's going to be a debate over clean energy and how much clean energy versus possible fuels you're going to use, but quite frankly, you know, utilities are going to need both to move forward here to meet this increasing demand.
Speaker Change: Absolutely, absolutely Walt and I think that.
Speaker Change: In addition to that you see the extreme weather where.
Speaker Change: Which is a challenge for utilities to.
Speaker Change: Monarch communications really helps too.
Speaker Change: Deal with it with respect to mutual assistance programs and.
Speaker Change: Oh and wildfires and on.
Speaker Change: Integrating new sources of electricity and do it right and I'll take the virtual power plants or demand side management programs are the all of the different so theres going to be there's going to be a debate over clean energy and how much clean energy versus fossil fuels is going to use but quite frankly.
Speaker Change: Utilities are going to need both to move forward here to meet this increasing demand and I think that.
Tom Cune: And I think that I think that the Antarctic is very, very well positioned because they have relationships in the industry. They have the technology and they know how to, you know, address the use cases that the customers are going to want.
Speaker Change: And Texas is very very well positioned because they have the relationships in the industry.
Speaker Change: They have the technology and they know how to.
Speaker Change: You know a dress the use cases that our customers are kind of one.
Speaker Change: Yeah.
Speaker Change: Yeah.
George Sutton: As a reminder, if you would like to ask the question, please press star one on your phone now. And our next question comes from George 7 of Craig Helen. Your line is open. Thank you. I wanted to address my first question to Ryan. Obviously, no changes in the DI scorecard quarter over quarter. I know that doesn't mean there hasn't been movement. We had talked previously about things like fire mitigation, really driving potential demand and a speedier process, things like Hawaii. And I'll just not wanting to go through an event like that. Have those had any impact on the speed in terms of the discussions that you're seeing?
Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your phone now.
Speaker Change: And our next question comes from George Sutton of Craig Hallum.
Speaker Change: Your line is open.
George Sutton: Thank you I wanted to address my first question to Ryan.
Ryan: We see no changes in the D. I score card quarter over quarter, I know that doesn't mean, there hasn't been movement, we had talked previously about out.
Ryan: Things like fire mitigation really driving potential demand.
Speaker Change: And a speedier process things like Hawaii, and I was just wanting to go through.
Speaker Change: <unk> like that have have those had any impact on the speed in terms of the discussions that you are seeing.
George Sutton: Yeah, hey, good morning, George.
Ryan: Yeah, Hey, good morning, George just quickly back on the di side Youre.
Ryan Gerbrandt: Just to quickly back on the DI side, you're right. We didn't see any change, you know, what we reported, and again, this has changed over just the last several weeks, you know, since we all connected on the on-port deal, but just kind of reflecting on kind of where we're at, you know, continuing to have, you know, 18 utility sitting above the DI threshold, about a billion dollars, you know, and we did report in June, you know, a set of new indicators. There were 10 new DI indicators accumulated through that time. We've had about three more, you know, in the short periods since then.
Speaker Change: You're right, we didn't see any change in what we reported and again this has changed over the last several weeks since we all connected on the oncor deal.
Speaker Change: But just kind of reflecting on kind of where we're at and continuing to have 18 utility sitting above the threshold about $1 billion. When we did report in June.
Ryan: A set of new indicators, where there is 10, new indicators accumulated through that time, we've got about three more in the short period. Since then so definitely continuing to see progress.
Ryan Gerbrandt: So definitely continuing to see progress, you know, in deals that are both sitting above the line, you know, and opportunities that are sitting below the line if we're continuing to develop them through.
Speaker Change: And deals that are both sitting above the line and opportunities that are sitting below. The line is we're continuing to develop them through now to the macro forces you know kind of what I think Tom and Robert Spark, we're speaking about adding fit right within that lens as well you know kind of wildfires or another one.
Ryan Gerbrandt: Now, to the macro forces, you know, kind of what I think Tom and Robert are talking about, I think fit right within that lens as well, you know, kind of wildfires or another one, you know, where, you know, certainly we've talked a lot about the role that broadband played in support in San Diego and their wildfire mitigation strategy. I think it's fair to say every one of those initiatives, you know, that sits on, you know, the front of the mind, you know, many of the executive officers within utilities, you know, it starts to build momentum around how do they proactively get themselves ready to be able to address it.
Speaker Change: We're certainly we've talked a lot about the role that broadband played in support in San Diego and their wildfire mitigation strategy I think it's fair to say every one of those initiatives that sits on the front of the mind of many of the executive officers within utilities.
Speaker Change: It starts to build momentum around how do they proactively get themselves ready to be able to address it.
Ryan Gerbrandt: But I'd add, kind of the other environmental factors absolutely do the same thing.
Speaker Change: But I would add kind of the other environmental factors absolutely do the same thing.
Ryan Gerbrandt: You know, when we see hurricanes come through, you know, unfortunately, you're probably seeing it still play out in the media in Texas right now, you know, after Barrel came through, you know, in the impact that it had Houston and CenterPoint Energy, that drive is another conversation in the industry, you know, which is helpful to be able to extract the areas of focus that we have as a company, you know, and how by putting modern solutions together built around broadband could really be supportive to address so many of these critical issues. And that brings stakeholders to the table, which helps our conversations with all of these folks as we're continuing to develop the market opportunity.
Speaker Change: When we see Hurricanes come through you know unfortunately, you're probably seeing it still play out in the media in Texas right now after barrel came through.
Speaker Change: And the impact that it had Houston and Centerpoint energy.
Speaker Change: That drives a another comprehensive in the industry, which is helpful to be able to extract the areas of focus that we have as a company.
Speaker Change: And how by putting modern solutions together built around broadband can really be supportive to address so many of these critical issues and that brings stakeholders to the table, which helps our conversations with with all of these folks as we're continuing to develop the market opportunity.
Speaker Change: Yeah.
George Sutton: Gotcha. The next question, if I could for Tim, probably the most common question I get from clients is why not a more aggressive strategy to buy back the stock with the thought being given what we have in our pipeline with obviously a pretty good sense of the future. You would argue the stock should be materially higher once these things are announced. You have money coming in from very high credit worthy customers, so essentially you could even lever up a little bit to accelerate the process.
Speaker Change: Got you.
Speaker Change: The next question if I could for Tim.
Tim: Probably the most common question I get from clients is why not a more aggressive strategy to buy back the stock with the thought being given.
Tim: What we have in our pipeline with with obviously, a pretty good sense of of the future.
Speaker Change: Would you would argue the stock should be materially higher once these things are announced.
Tim: Have money coming in from very high.
Speaker Change: Worthy customers. So essentially you could even leather lever up a little bit to accelerate the process. Just curious why we haven't been more aggressive there.
Timothy Gray: Just curious why we haven't been more aggressive there. Thanks, George. Thanks for the question. You know, as we previously said, we're going to base our quarterly purchases off of cash receipts coming in each quarter, looking at what we've got on our future spend, et cetera, and that's going to move up and down on a quarter-by-quarter basis where some quarters, like this most recent one, are at the lower end and some quarters, like the previous two, were at the higher end of the scale that we've had in the recent past. We're going to continue to move forward with that positioning, although I wouldn't rule out any leveraging or anything that we may do to try to be more aggressive as we move forward. But as of right now, that's not in our immediate plans.
Speaker Change: Thanks, George Thanks for the question.
Speaker Change: As we've previously said and we're going to base, our quarterly purchases off of cash receipts.
Speaker Change: Coming in each quarter I'm looking at what we've got on our future spend et cetera, and that's going to move up and down on a quarter by quarter basis, where some quarters like this most recent one or at the lower end and some quarters like the previous two or at the higher end of the scale that we've had in the recent past.
Tim: We're going to continue to move forward with that positioning although I wouldn't rule out any less.
Tim: Leveraging or anything that we may do.
Tim: To try to be more aggressive as we move forward.
Tim: But as of right now that's not in our immediate plans will continue to move forward as we had.
Timothy Gray: We'll continue to move forward as we have.
George Sutton: Gotcha. Finally, thanks to Walt for reminding me, I need to go by a generator.
Speaker Change: Got you finally, thanks to walk for reminding me I need to go buy a generator.
Tim: Yeah.
George Sutton: Thanks, George.
George Sutton: Thanks George.
Jerome Darling: Our next question comes from Jerome Darling, JP Morgan. Good morning, thank you for taking my question. Could you provide an update on what you're seeing in terms of five-by-five proceedings? Anything you can share in terms of return comments, something around the process would be helpful. Thanks.
Tim: Our next question comes from Jerome Darling Jpmorgan.
Speaker Change: Your line is open.
Speaker Change: Good morning, Thanks for taking my question could you provide an update on what Youre seeing in terms of five by five proceedings anything you can share in terms of the return comments sentiment around the process would be helpful. Thanks.
Christopher Guttman: Thanks, Jerome.
Speaker Change: Thanks, Rob and good morning, Chris.
Christopher Guttman: Good morning, Chris. That's the appropriate question for you to take. Yeah, thanks, Robin. Thanks, Jerome. Everything to date has been very positive. About 30 plus companies weighed in support of the proceeding. No one opposed it; a few entities did what they should have done, which is just make sure that they get ultimately protected from an interference perspective, which obviously we would and will and have done. And so all positive, we've had a few more positive comments trickle in over the last couple of weeks. And now we're working with the FCC, and our goal is to get out to the next phase and notice a proposed rulemaking as soon as possible.
Speaker Change: Quick question for you today.
Chris Guttman-McCabe: Yeah, thanks, Rob, and thanks, Jerome. Everything to date has been very positive. About 30 plus companies weighed in in support of the proceeding. No one opposed it.
Chris: Yeah, Thanks, Rob and thanks Jerome.
Speaker Change: All everything to date has been very positive.
Speaker Change: About 30 plus companies weighed in.
Speaker Change: In support of the proceeding.
Speaker Change: No one opposed it a few a few entities.
Speaker Change: Did what they should've done which is just make sure that they get ultimately protected from an interference perspective, which obviously, we would and will and have done.
Chris Guttman-McCabe: A few entities, you know, did what they should have done, which was just make sure that they were ultimately protected from an interference perspective, which obviously we would and will and have done. And so, all positive. We've had a few more positive comments trickle in over the last couple weeks, and now we're working with the FCC, and our goal is to get out the next phase and notice a proposed rulemaking, you know, as soon as possible.
Speaker Change: And so all positive we've had a few more.
Speaker Change: Positive comments trickle in over the last couple of weeks in now where we're working with the FCC and our goal is to get out of the next phase in notice of proposed rulemaking.
Chris: As soon as soon as possible but.
Chris Guttman-McCabe: But everything is moving in a positive direction at the moment. Fingers crossed. I've been doing this for a long time. I've not seen a proceeding where you've had no opposition. And so, you know, we just got to keep moving forward. And our goal is really to get this front and center with the chairwoman and try to get a notice of proposed rulemaking made out as soon as possible.
Christopher Guttman: But everything is moving in a positive direction at the moment, fingers crossed. I've been doing this for a long time. I've not seen a proceeding where you've had no opposition. And so we just got to keep moving forward. And our goal is really to get this front and center with the chairwoman and try to get a notice and propose will make making out as soon as possible.
Speaker Change: But everything is moving in a positive direction at the moment fingers crossed.
Chris: Been doing this for a long time I've not seen a proceeding.
Speaker Change: Where you've had no opposition.
Speaker Change: And so we just got to we got to keep moving forward.
Chris: Our goal is really to get this front and center with the chairwoman.
Speaker Change: And try to get a notice of proposed rulemaking, making out as soon as possible.
Unknown Attendee: Great.
Speaker Change: Great. Thank you.
Unknown Attendee: Thank you. And I see no further questions.
Speaker Change: And seeing no further questions I'll turn the call back over to Rob Schwartz.
Robert Schwartz: I'll turn the call back over to Rob Schwartz. Thank you, Paul.
Rob Schwartz: Thank you Paul and thank you all for joining US. This morning, we look forward to talking to you all of you soon.
Robert Schwartz: And thank you all for joining us this morning. We look forward to talking to you all of you soon. And we're excited about our progress and looking forward to continuing to announce more successful activities in the future. Take care.
Speaker Change: We're excited about our progress and looking forward to continuing.
Speaker Change: Continuing to announce more.
Chris: Successful.
Chris: Activities in the future take care.
Unknown Attendee: That concludes today's conference call. Thank you for joining, and have a pleasant day. The host has ended this call. Goodbye.
Speaker Change: That concludes today's conference call. Thank you for joining and have a pleasant day.
Operator: The host has ended this call. Goodbye.