Slide 1: Fiscal Q2 2022 Earnings Call
April 28, 2022 Fiscal Q2 2022 Earnings Call FieldReport
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward - Looking Statements NASDAQ:CLFD 2 Forward - looking statements contained herein and in any related presentation or in the related Earnings Release are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,”
Slide 3: Introduction & Highlights
NASDAQ:CLFD 3 Introduction & Highlights
Slide 4: What We Do
What We Do Clearfield provides fiber protection, fiber management and fiber delivery solutions that enable rapid and cost - effective fiber - fed deployment throughout the broadband service provider space. NASDAQ:CLFD 4
Slide 5: Our Mission: Enabling the Lifestyle Better Broadband Provides
OUR MISSION: Enabling the Lifestyle Better Broadband Provides NASDAQ:CLFD 5
Slide 6: Financial Performance
NASDAQ:CLFD 6 Financial Performance
Slide 7: Quarterly Revenue
Quarterly Revenue $27.3 $27.1 $29.7 $38.7 $45.2 $51.1 $53.5 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Revenue in Millions FINANCIAL PERFORMANCE 80% Q2 2022 Growth Rate $53.5M Q2 2022 Revenue NASDAQ:CLFD 7
Slide 8: Q2 FY22 Net Sales Comparison by Market
Q2 FY22 Net Sales Comparison by Market NASDAQ:CLFD All dollar figures in millions 1) Based on net sales of $188.6 million and Point of Sales (POS) reporting from distributors who resell our product line into these markets. Q2 FY22 Net Sales Composition Ended 3/31/22 1 Legacy (Legacy contract manufac
Slide 9: Q2 FY22 Net Sales Comparison by Market
$2.3 $4.1 $2.0 $0.8 $4.0 $7.4 $1.5 $0.7 National Carrier MSO International Legacy FQ2 21 FQ2 22 Q2 FY22 Net Sales Comparison by Market NASDAQ:CLFD All dollar figures in millions 1) Based on net sales of $188.6 million and Point of Sales (POS) reporting from distributors who resell our product line i
Slide 10: Quarterly Gross Profit
Quarterly Gross Profit $11.2 $11.4 $12.9 $17.1 $19.7 $23.0 $23.1 39% 40% 41% 42% 43% 44% 45% 46% $- $5.0 $10.0 $15.0 $20.0 $25.0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Gross Profit ($) Gross Profit (%) FINANCIAL PERFORMANCE 79% Gross Profit increase YOY NASDAQ:CLFD 10
Slide 11: Quarterly Operating Expense
$7.6 $7.7 $8.5 $9.4 $10.4 $9.9 $11.2 0% 5% 10% 15% 20% 25% 30% 35% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Expenses in $Millions OP as a % of Net Sales FINANCIAL PERFORMANCE 7.6% YOY Decrease in Operating Expense as a percent of Net Sales Quarterly Operating Ex
Slide 12: Quarterly Net Income
$3.0 $3.2 $3.6 $6.1 $7.4 $10.4 $9.2 0% 5% 10% 15% 20% 25% $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Net Income $ Net Margin (%) $9.2M Q2 2022 Net Income 17.3% Q2 2022 Percent of Net Sales FINANCIAL PERFORMANCE Quarterly Net Income NASDAQ:CLFD 12
Slide 13: Business Update & Outlook
NASDAQ:CLFD 13 Business Update & Outlook
Slide 14: Our Value Proposition – Removing Obstacles
Our Value Proposition – Removing Obstacles 1. Craft - friendly – requires less skilled labor and overall labor time 2. Designed to reduce permitting and right - of - way 3. Faster turn - up time for quicker revenue per subscriber NASDAQ:CLFD 14
Slide 15: Legislation Supporting Broadband
Legislation Supporting Broadband NASDAQ:CLFD 15 Source: US Congress, Benton, JD Supra, Jefferies Research, & Clearfield Company Estimates Estimated Broadband Infrastructure Subsidies with Enacted Legislation
Slide 16: More New Fiber Is Expected In The Next Five-Year Period Than All Years To Date
More New Fiber Is Expected In The Next Five - Year Period Than All Years To Date NASDAQ:CLFD 16 Committed Fiber Homes Passed Source: Dell’Oro Group
Slide 17: Clearfield "Now of Age" Plan
Clearfield “Now of Age” Plan NASDAQ:CLFD 17 Augmenting Capacity for Ongoing Growth • Investing in products, manufacturing and supply chain to increase competitiveness and reduce costs • Building upon Domestic and Global partnerships for faster product innovation and cost reduction programs Accelerat
Slide 18: Accelerating our Operating Cadence
NASDAQ:CLFD 18 Accelerating our Operating Cadence • Active investment in systems and processes to enable our agile work environment • Speed of delivery in every part of our organization is paramount to our success NASDAQ:CLFD 18
Slide 19: Amplifying Bold and Disruptive Growth
NASDAQ:CLFD 19 Amplifying Bold and Disruptive Growth • Leveraging Community Broadband for One - Fiber Backhaul • Removing obstacles for the integration of wireline and wireless networks • Bringing fiber management expertise to 5G, NG - PON, and edge computing NASDAQ:CLFD 19
Slide 20: Augmenting Capacity for Ongoing Growth
NASDAQ:CLFD 20 Augmenting Capacity for Ongoing Growth • Investing in products, manufacturing and supply chain to increase competitiveness and reduce costs • Building upon Domestic and Global partnerships for faster product innovation and cost reduction programs NASDAQ:CLFD 20
Slide 21: Clearfield Production Facilities
Clearfield Production Facilities NASDAQ:CLFD 21
Slide 22: Financial Outlook: Annual Net Sales
$78M $85M $93M $141M $204M - $217M FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 NASDAQ:CLFD FY 2022 guidance issued and effective as of April 28, 2022; growth rate is based on midpoint of net sales guidance range Financial Outlook Annual Net Sales ($ in millions) NASDAQ:CLFD 22
Slide 23: Q&A
Q&A NASDAQ:CLFD 23 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER
Slide 24: Contact Us
NASDAQ:CLFD 24 Contact Us COMPANY CONTACT: Cheri Beranek President & CEO Clearfield, Inc. IR@seeclearfield.com INVESTOR RELATIONS: Matt Glover and Sophie Pearson Gateway Investor Relations (949) 574 - 3860 CLFD@gatewayir.com