Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Shareholder Meeting (February 2019)
23 slides from Clearfield's shareholder meeting presentation, Feb 21, 2019
Slide 1: Leader in Fiber Optic Management and Connectivity Solutions 2019 Shareholder Meeting
NASDAQ:CLFD Leader in Fiber Optic Management and Connectivity Solutions 2019 Shareholder Meeting February 2019 NASDAQ: CLFD 1
Slide 2: Call to Order
NASDAQ:CLFD Call to Order This meeting was called by a notice and proxy statement first mailed on January 8, 2019 to all shareholders of record on December 26, 2018 We have received proxies representing more than a majority of the outstanding shares of common stock. Therefore, this meeting has been
Slide 3: Agenda
NASDAQ:CLFD Agenda • Elect six (6) directors to serve until the next Annual Meeting of the Shareholders or until their respective successors have been elected and qualified; • Approve, on a non - binding advisory basis, the compensation paid to our named executive officers; and • Ratify the appointm
Slide 4: Voting
NASDAQ:CLFD Voting 4
Slide 5: Adjournment
NASDAQ:CLFD Adjournment 5
Slide 6: Important Cautions Regarding Forward-Looking Statements
NASDAQ:CLFD Important Cautions Regarding Forward - Looking Statements Forward - looking statements contained herein and in any related presentation or in the related FieldReport are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “will,”
Slide 7: What We Do
NASDAQ:CLFD What We Do With unrivaled product innovations and agile service response, Clearfield ® is accelerating cost - effective fiber fed deployments with the industry's most craft - friendly fiber management and pathway products 7
Slide 8: Company Overview
NASDAQ:CLFD Company Overview 8 Founded in 2008 Headquartered in Minneapolis No. of Employees (FY 2018) 225 Customer Base 700+ Total Revenue (FY 2018) $77.7M Gross Margin (FY 2018) 39.9% Net Margin (FY 2018) 5.5% Profitable Fiscal Years 11 of 11
Slide 9: Celebrating 11th Anniversary: 20+ Million Fiber Ports Delivered
NASDAQ:CLFD Celebrating 11th Anniversary: 20+ Million Fiber Ports Delivered 9 Clearfield ® is born Launched patented Clearview ® Cassette Recognized for optical component packaging for hardened environments Entered Caribbean and Latin America (CALA) markets Launched FieldShield ® Expanded manufactur
Slide 10: What's Driving the Growth in Our Business and the Demand for Fiber?
NASDAQ:CLFD What’s Driving the Growth in Our Business and the Demand for Fiber? 10 Active powered cabinet line Industry’s shortest lead times Fast service turn - ups INTERNAL EXTERNAL Growing broadband needs Wireless connectivity support & backhaul Competition among service providers to reduce churn
Slide 11: Preparing for 5G — The Elephant Beyond the Trunk
NASDAQ:CLFD Preparing for 5G — The Elephant Beyond the Trunk 5G spend will enter rapid turn - up but still in infancy Market believed to have 20+ year sustainable opportunity Unique point of entry for Clearfield, with next three years pivotal to gain 5G foothold 11 $0B $50B $100B $150B $200B $250B 2
Slide 12: Sprint v. AT&T complaint on 5G advertising
SPRINT SPECTRUM L.P., SPRINTCOM, INC. and SPRINT/UNITED MANAGEMENT COMPANY, Pisin, -against- AT&TING., Defendant een Plaintfs Sprint Spoctrum LP. SprntCom, In. and SprinlUnited Management Company (collectively, “Sprint”, by their atomeys, Frankfurt Kumit Klein & Selz PC, for their complaint against
Slide 13: The Timeframe to Coverage
NASDAQ:CLFD Source: Ciena The Timeframe to Coverage 13
Slide 14: So What's All the Fuss About?
NASDAQ:CLFD Source CI&M So What’s all the Fuss About? 14
Slide 15: Building the Rings and Initial Fiber
NASDAQ:CLFD Building the Rings and Initial Fiber 15
Slide 16: Adding the Small Cells
NASDAQ:CLFD Adding the Small Cells 16
Slide 17: Integrating the Small Cells
NASDAQ:CLFD Source: Broadband Properties Integrating the Small Cells 17
Slide 18: Wireline/Wireless Convergence
NASDAQ:CLFD Wireline/Wireless Convergence 18
Slide 19: Wireless and Wireline Convergence
NASDAQ:CLFD Wireless and Wireline Convergence 19
Slide 20: Our 5G Play: Foundation of our Fiber to Anywhere Architecture
NASDAQ:CLFD Our 5G Play: Foundation of our Fiber to Anywhere Architecture 20 Passive panels, frames, cabinets, wallboxes, and pedestals for the inside plant, outside plant and access network Powered cabinets for the outside plant and access network Patented cassettes that connect multiple fiber opti
Slide 21: Annual Financial Performance
NASDAQ:CLFD Annual Financial Performance 21 $58.0M $60.3M $75.3M $73.9M $77.7M 2014 2015 2016 2017 2018 Revenue $24.6M $24.9M $32.9M $30.3M $31.0M 2014 2015 2016 2017 2018 Gross Profit $5.4M $4.7M $8.0M $3.8M $4.3M 2014 2015 2016 2017 2018* Net Income 42.4% 41.2% 43.7% 40.9% 39.9% Gross Margin +9% +
Slide 22: Clearfield's 'Coming of Age' Plan
NASDAQ:CLFD Clearfield’s ‘Coming of Age’ Plan 22 Expanding Core Community Broadband Business Attracting utilities, co - ops and CLECs as they enter underserved communities, and maintaining steady growth rate of 8 - 12% Enhancing Competitive Position and Operational Effectiveness Investing in product
Slide 23: Why Invest in Clearfield
NASDAQ:CLFD Why Invest in Clearfield Proven business model and management execution Enhanced management team and expansion of total addressable market Strong competitive position in an rapidly growing multi - billion - dollar fiber optics industry, especially with the roll - out of 5G and NG - PON2