Slide 1: Clearfield Earnings Presentation: Fiscal Q4 & 2023
Clearfield Earnings Presentation: Fiscal Q4 & 2023 Earnings Call November 9, 2023 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,” “will,” “expect,”
Slide 3: Enabling the lifestyle better broadband provides
Enabling the lifestyle better broadband provides 3
Slide 4: Fourth Quarter Fiscal 2023 Highlights
Fourth Quarter Fiscal 2023 Highlights Total net sales of $49.7 million, including a $10.6 million contribution from Nestor Cables, and EPS of $0.17. Increased share buyback authorization from $22 million to $40 million, leaving approximately $33 million available for repurchases. Announced two
Slide 5: Market Update
Market Update Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue 12M New Federal Investment Base: History & Forecast CLFD 5-Year Revenue 57.1M Additional Passed (44M Additional Unique) 60 $1,000 $900 Additional Homes Passed 50 68.3 Homes Passed Including Homes with 2+ Fiber P
Slide 6: Financial Performance
CLEARFIELD Financial Performance
Slide 7: Quarterly Revenue $49.7M
FINANCIAL PERFORMANCE Quarterly Revenue $49.7M $100 $95.0 $90 $85.9 $80 $71.8 Q4 2023 Revenue $70 $61.3 $60 $49.7 $50 21% $88.0 $40 78.4 $30 $60.4 $47.9 $20 $39.1 Nestor Cables Contribution $10 $0 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Clearfield Organic Nestor Cables All dollar figures in millions 7
Slide 8: Q4 FY23 Net Sales Comparison by Market
Q4 FY23 Net Sales Q4 FY23 Net Sales Composition Ended Comparison by Market 9/30/231 Quarterly Net Sales Community Broadband International (Tier 2&3, utilities, municipalities, and (Europe, Canada, Mexico, and FQ4 22 FQ4 23 alternative carriers) Caribbean Markets) $43 $23 25% $18 $21 Legacy $12 (Lega
Slide 9: Annual Revenue $268.7M
FINANCIAL PERFORMANCE Annual Revenue $268.7M $300 $270.9 $268.7 $250 FY 2023 Consolidated Revenue $200 $150 $263.9 0.8% $225.7 $100 $140.8 $50 $93.1 $85.0 Decrease in Revenue $0 Compared to Prior Year FY19 FY20 FY21 FY 22* FY 23* Clearfield Organic Nestor Cables All dollar figures in millions 9 *Inc
Slide 10: Quarterly Gross Profit and Margin
FINANCIAL PERFORMANCE Quarterly Gross Profit and Margin $40 $37.5 45% $35 40% $30.6 35% $30 Gross profit levels have 30% $25 $23.6 declined due to unused 25% capacity at our manufacturing $19.1 $20 facilities and Nestor Cables 20% $15 representing a higher $12.0 15% percentage of revenue. $10 10% $5
Slide 11: Annual Gross Profit and Margin
FINANCIAL PERFORMANCE Annual Gross Profit and Margin $120 $112.9 50% 45% $100 40% $85.3 35% $80 30% $61.2 $60 25% 20% $37.9 $40 $32.7 15% 10% $20 5% $0 0% FY 19 FY 20 FY 21 FY 22* FY 23* Gross Profit ($) Gross Profit (%) All dollar figures in millions 11 *Includes contribution from subsidiary Nestor
Slide 12: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $18 25% $16 $15.3 $13.4 20% $14 $12.8 33% $11.5 $12 $10.3 15% $10 $8 Decrease in Operating 10% Expenses Compared to $6 Prior Year $4 5% $2 $0 0% Q4 22* Q1 23* Q2 23* Q3 23* Q4 23* Operating Expenses ($) Operating Expenses as a % of Net Sales All dol
Slide 13: Annual Operating Expense
FINANCIAL PERFORMANCE Annual Operating Expense $60 35% $49.1 $48.0 30% $50 2% 25% $40 $35.9 20% $29.5 $30 $27.5 15% Decrease in Operating Expenses Compared to $20 10% Prior Year $10 5% $0 0% FY19 FY20 FY21 FY22* FY 23* Operating Expenses ($) Operating Expenses as a % of Net Sales All dollar figures
Slide 14: Quarterly Net Income $2.7M
FINANCIAL PERFORMANCE Quarterly Net Income $18 30% $17.0 $2.7M $16 $14.3 25% $14 $12 20% Q4 2023 Net Income $10.4 $10 15% $8 $6 $4 $5.2 $2.7 10% 5.4% 5% Q4 2023 Percent of Net Sales $2 $0 0% Q4 22* Q1 23* Q2 23* Q3 23* Q4 23* Net Income ($) Net Margin (%) All dollar figures in millions 14 *Includes
Slide 15: Annual Net Income $32.5M
FINANCIAL PERFORMANCE Annual Net Income $32.5M $60 20% 18% $50 $49.4 16% 14% FY 2023 Net Income $40 12% $32.5 $30 10% 12.1% 8% $20.3 $20 6% 4% $10 $7.3 FY 2023 Percent of Net Sales $4.6 2% $0 0% FY 19 FY 20 FY 21 FY 22* FY 23* Net Income $ Net Margin (%) All dollar figures in millions 15 *Includes c
Slide 16: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet $174 million of cash, short-term and long-term investments $2 million of debt Raised $130 million in net proceeds in December 2022 secondary offering for working capital and general corporate purposes Enables the Company to weather the dynamics that are af
Slide 17: Financial Outlook
Financial Outlook Quarterly Net Sales Net Income (Loss) Per Share ($ in millions) ($) $380 - $393 $1.00 $86 $28 to $32 $0.67 $72 $0.33 $61 $.17 $50 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Actual Actual Actual Actual Forecast Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Actual Actual Actual $(0.36) to $(0.44) Actual Forecast
Slide 18: Business Update
V7 CLEARFIELD Business Update
Slide 19: Recruiting, Investing in New Markets; Modernizing ERP
Recruiting in New Markets • Adding expertise in Europe to leverage Nestor platform to cross sell connectivity products into Europe Investing in New Markets • Expanding Estonia facility for microduct and connectivity manufacturing Leverage our decade-long excellence in Community Broadband Execute
Slide 20: Q&A
Q&A Cheri Beranek Dan Herzog Kevin Morgan PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHIEF MARKETING OFFICER 20
Slide 21: Appendix: Revenue by Market
Appendix Clearfield, Inc. Revenue by Market Trailing 8 Quarters Through 9/30/23 (FY 23 Q4) (000's) Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 Q1 22 Market/Account 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 International $12,358 $14,186 $13,137 $10,204 $9,345 $2,
Slide 22: 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 22