Slide 1: Clearfield Earnings Presentation: Fiscal Q3 2024
Clearfield Earnings Presentation: Fiscal Q3 2024 Earnings Call August 1, 2024 1
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward-Looking Statements 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,” “plan,” “expect,”
Slide 3: Enabling the lifestyle better broadband provides
Enabling the lifestyle better broadband provides 3
Slide 4: Third Quarter Fiscal 2024 Highlights and Outlook
Third Quarter Fiscal 2024 Highlights and Outlook Total net sales of $48.8 million and a loss of $0.04 cents per share, above the high end of the company's guidance range. Repurchased approximately $5.5 million in shares under Share Repurchase Program leaving $25 million available for repurchases
Slide 5: Market Update: Five Year U.S. FTTH Forecast Versus Past Construction
MARKET UPDATE Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue Homes w/ Multiple Fibers 21.2M Base: History & Forecast CLFD FY Revenue 59.3M Additional Passed (38.2M Additional Unique) 60 78 Million Cumulative HHs Passed Including HHs $1,000 with 2+ Fiber Passings from Pre-
Slide 6: Financial Performance
VP CLEARFIELD Financial Performance
Slide 7: Quarterly Revenue
FINANCIAL PERFORMANCE Quarterly Revenue $70 $60 $48.8M $50 $40 Q3 2024 Revenue $30 $61.3 $49.7 $48.8 $20 $34.2 $36.9 $10 $0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 All dollar figures in millions 7
Slide 8: Q3 FY24 Net Sales Comparison by Market
Q3 FY24 Net Sales Q3 FY24 Net Sales Composition Ended Comparison by Market 6/30/241 Quarterly Net Sales Community Broadband (Tier 2&3, utilities, municipalities, and International FQ3 23 FQ3 24 alternative carriers) (Europe, Canada, Mexico, and Caribbean Markets) $19 $20 $17 $16 $14 34% $9 40% $6 $4
Slide 9: Quarterly Gross Profit and Margin
FINANCIAL PERFORMANCE Quarterly Gross Profit and Margin $25 35% The sequential increase 30% $20 $19.1 in gross margin was 25% partially due to $15 20% improved production $12.0 $10.7 capacity utilization in 15% $10 the Mexico facility, as $4.7 10% well as lower non-cash $5 $2.8 5% excess inventory c
Slide 10: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $16 40% Operating expenses decreased 3% to $13 $14 $13.4 35% $12.9 $12.6 $13.0 million compared to the $12 30% same year-ago quarter $10.3 $10 25% due to lower variable $8 20% costs. $6 15% The sequential decrease $4 10% in operating expenses $2 5%
Slide 11: Quarterly Net Income (Loss)
FINANCIAL PERFORMANCE Quarterly Net Income (Loss) $6 $5.2 30% $(0.4M) 25% $4 $2.7 20% $2 15% Q3 2024 Net Loss 10% $0 -$5.3 -$0.4 5% -$5.9 -$2 (0.9)% 0% -$4 -5% -10% -$6 Q3 2024 Net Loss Margin -15% -$8 -20% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Net Income (Loss) ($) Net Margin (%) All dollar figures in mill
Slide 12: Balance Sheet at June 30, 2024
FINANCIAL PERFORMANCE Balance Sheet at June 30, 2024 $148 million of cash, short-term and long-term investments. This reflects a reduction of just $1 million from March 31, of which $5.5 million was used for the repurchase of shares in the quarter. $2.1 million of debt. Inventory balance decre
Slide 13: Financial Outlook
Financial Outlook Quarterly Net Sales Net Income (Loss) Per Share ($ in millions) ($) $380 - $393 $40 to $43 $0.17 $(0.17) to $(0.22) $(0.04) $50 $49 $(0.35) $37 $(0.40) $34 Q4 23 Q4 23 Q1 24 Q2 24 Q1 24 Q2 24 Q3 24 Q4 24 Q3 24 Q4 24 Actual Actual Actual Actual Actual Actual Forecast Actual Actual F
Slide 14: Business Update
V7 CLEARFIELD Business Update
Slide 15: Business Update: CraftSmart Deploy Reel TAP Box and strategic priorities
Introduced new cost efficient and craft-friendly product The CraftSmart® Deploy Reel TAP Box features an all-in-one flexibility that enables the technician to deploy the exact amount of cable from the curb and into the home, with the remainder stored safely on the reel for future use, quickly and
Slide 16: Q&A
Q&A Cheri Beranek Dan Herzog PRESIDENT & CEO CHIEF FINANCIAL OFFICER 16
Slide 17: Contact Us
Contact Us COMPANY CONTACT: Cheri Beranek President & CEO Clearfield, Inc. IR@seeclearfield.com INVESTOR RELATIONS: The Blueshirt Group Greg McNiff T: 773-485-7191 clearfield@blueshirtgroup.com 17