Slide 1: Fiscal Q3 2022 Earnings Call
July 28, 2022 Fiscal Q3 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: Strategic Acquisition of Nestor Cables Oy
NASDAQ:CLFD 6 Strategic Acquisition of Nestor Cables Oy
Slide 7: Nestor Cables Overview
Nestor Cables Overview NASDAQ:CLFD 7 • Founded by cable technology professionals to preserve the Finnish tradition of producing high - quality fiber optic cables • One of the leading developers and manufacturers of fiber optic cable solutions in Northern Europe • Longstanding industry reputation for
Slide 8: Strategic Rationale
NASDAQ:CLFD 8 Strategic Rationale • Allows Clearfield to vertically integrate the supply of FieldShield fiber optic cables to meet future customer demand • Enables Clearfield to leverage Nestor’s deep technical expertise to extend overall supply of FieldShield fiber into the North American market •
Slide 9: Financial Performance
NASDAQ:CLFD 9 Financial Performance
Slide 10: Quarterly Net Sales
Quarterly Net Sales $27.1 $29.7 $38.7 $45.2 $51.1 $53.5 $71.3 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Revenue in Millions FINANCIAL PERFORMANCE 84% Q3 2022 Growth Rate $71.3M Q3 2022 Net Sales NASDAQ:CLFD 10
Slide 11: Q3 FY22 Net Sales Comparison by Market
Q3 FY22 Net Sales Comparison by Market NASDAQ:CLFD All dollar figures in millions 1) Based on net sales of $221.1 million and Point of Sales (POS) reporting from distributors who resell our product line into these markets. Q3 FY22 Net Sales Composition Ended 6/30/22 1 Legacy (Legacy contract manufac
Slide 12: Q3 FY22 Net Sales Comparison by Market
$3.4 $4.4 $2.9 $0.6 $9.8 $11.0 $2.5 $0.6 National Carrier MSO International Legacy FQ3 21 FQ3 22 Q3 FY22 Net Sales Comparison by Market NASDAQ:CLFD All dollar figures in millions 1) Based on net sales of $221.1 million and Point of Sales (POS) reporting from distributors who resell our product line
Slide 13: Quarterly Gross Profit
Quarterly Gross Profit $11.4 $12.9 $17.1 $19.7 $23.0 $23.2 $29.3 15% 20% 25% 30% 35% 40% 45% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Gross Profit ($) Gross Profit (%) FINANCIAL PERFORMANCE 71% Gross Profit increase YOY NASDAQ:CLFD 13
Slide 14: Quarterly Operating Expenses
$7.7 $8.5 $9.4 $10.4 $9.9 $11.2 $12.7 0% 5% 10% 15% 20% 25% 30% 35% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Expenses in $Millions OP as a % of Net Sales FINANCIAL PERFORMANCE 6.5% YOY Decrease in Operating Expense as a percent of Net Sales NASDAQ:CLFD 14
Slide 15: Quarterly Net Income
$3.0 $3.2 $3.6 $6.1 $7.4 $10.4 $9.2 $12.7 0% 5% 10% 15% 20% 25% 30% $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Net Income $ Net Margin (%) $12.7M Q3 2022 Net Income 17.9% Q3 2022 Percent of Net Sales FINANCIAL PERFORMANCE NASDAQ:CLFD 15 Quarterly Net Inc
Slide 16: Business Update & Outlook
NASDAQ:CLFD 16 Business Update & Outlook
Slide 17: 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 17
Slide 18: Clearfield "Now of Age" Plan
Clearfield “Now of Age” Plan NASDAQ:CLFD 18 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 19: Accelerating our Operating Cadence
NASDAQ:CLFD 19 Accelerating our Operating Cadence NASDAQ:CLFD 19
Slide 20: Amplifying Bold and Disruptive Growth
NASDAQ:CLFD 20 Amplifying Bold and Disruptive Growth NASDAQ:CLFD 20
Slide 21: Augmenting Capacity for Ongoing Growth
NASDAQ:CLFD 21 Augmenting Capacity for Ongoing Growth NASDAQ:CLFD 21
Slide 22: Clearfield Production Facilities
Clearfield Production Facilities NASDAQ:CLFD 22
Slide 23: Financial Outlook: Annual Net Sales
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 $78M $85M $93M $141M $243M - $247M NASDAQ:CLFD FY 2022 guidance issued and effective as of July 28, 2022; growth rate is based on midpoint of net sales guidance range Financial Outlook Annual Net Sales ($ in millions) NASDAQ:CLFD 23
Slide 24: Q&A
Q&A NASDAQ:CLFD 24 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER
Slide 25: Contact Us
NASDAQ:CLFD 25 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