Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Q4 2021 Earnings Presentation
26 slides from Clearfield's earnings presentation, Nov 4, 2021
Slide 1: Fiscal Q4 & 2021 Earnings Call
November 4, 2021 Fiscal Q4 & 2021 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 $26.0 $27.3 $27.1 $29.7 $38.7 $45.2 0% 10% 20% 30% 40% 50% 60% 70% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Revenue in Millions Change (%) 7 FINANCIAL PERFORMANCE 66% Q4 2021 Growth Rate $45.2M Q4 2021 Revenue
Slide 8: Q4 & FY21 Net Sales Comparison by Market
$18.5 $3.2 $3.6 $1.1 $0.9 $30.3 $3.6 $6.9 $3.5 $0.9 Community Broadband National Carrier MSO International Legacy FQ4 20 FQ4 21 Q4 & FY21 Net Sales Comparison by Market NASDAQ:CLFD 8 All dollar figures in millions 1) Based on net sales of $140.8 million and Point of Sales (POS) reporting from distri
Slide 9: Annual Revenue
Annual Revenue $75.3 $73.9 $77.7 $85.0 $93.1 $140.8 -10% 0% 10% 20% 30% 40% 50% 60% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 FY16 FY17 FY18 FY19 FY20 FY21 Revenue in Millions Change (%) 9 FINANCIAL PERFORMANCE 51% FY 2021 Growth Rate $140.8M FY 2021 Revenue
Slide 10: Quarterly Gross Profit
Quarterly Gross Profit $10.8 $11.2 $11.4 $12.9 $17.1 $19.7 40% 40% 41% 41% 42% 42% 43% 43% 44% 44% 45% $- $5.0 $10.0 $15.0 $20.0 $25.0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Gross Profit ($) Gross Profit (%) 10 FINANCIAL PERFORMANCE 75% Gross Profit increase YOY
Slide 11: Annual Gross Profit
Annual Gross Profit $32.9 $30.3 $31.0 $32.7 $37.9 $61.2 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 FY16 FY17 FY18 FY19 FY20 FY21 Gross Profit ($) Gross Profit (%) 11 FINANCIAL PERFORMANCE 61% Gross Profit increase YOY
Slide 12: Quarterly Operating Expense
Quarterly Operating Expense $7.2 $7.6 $7.7 $8.5 $9.4 $10.4 0% 5% 10% 15% 20% 25% 30% 35% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Expenses in $Millions OP as a % of Net Sales 12 FINANCIAL PERFORMANCE 4.8% YOY Operating Expense as a percent of Net Sales
Slide 13: Annual Operating Expense
Annual Operating Expense $22.1 $25.0 $25.9 $27.5 $29.5 $35.9 0% 5% 10% 15% 20% 25% 30% 35% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 FY16 FY17 FY18 FY19 FY20 FY21 Expenses in $Millions OP as a % of Net Sales 13 FINANCIAL PERFORMANCE
Slide 14: Quarterly Net Income
Quarterly Net Income $3.0 $3.0 $3.2 $3.6 $6.1 $7.4 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Net Income $ Net Margin (%) 14 FINANCIAL PERFORMANCE $7.4M Q4 2021 Net Income 16.4% Q4 2021 Percent of Net Sales
Slide 15: Annual Net Income
Annual Net Income $8.0 $3.8 $4.3 $4.6 $7.3 $20.3 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% $- $5.0 $10.0 $15.0 $20.0 $25.0 FY16 FY17 FY18 FY19 FY20 FY21 Net Income $ Net Margin (%) 15 FINANCIAL PERFORMANCE $20.3M FY 21 Net Income 14.4% FY 2021 Percent of Net Sales
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: Legislation Supporting Broadband – What's Known
Legislation Supporting Broadband – What’s Known NASDAQ:CLFD 18 Source: US Congress, Benton, JD Supra, Jeffries Research Estimated Broadband Infrastructure Subsidies based on Already Passed Legislation
Slide 19: Clearfield "Now of Age" Plan
Clearfield “Now of Age” Plan NASDAQ:CLFD 19 Augmenting Capacity for Ongoing Growth • Investing in products, manufacturing and supply chain to increase competitiveness and reduce costs • Building upon Asian partnerships for faster product innovation and cost reduction programs Accelerating our Operat
Slide 20: Accelerating our Operating Cadence
NASDAQ:CLFD 20 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 20
Slide 21: Amplifying Bold and Disruptive Growth
NASDAQ:CLFD 21 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 21
Slide 22: Augmenting Capacity for Ongoing Growth
NASDAQ:CLFD 22 Augmenting Capacity for Ongoing Growth • Investing in products, manufacturing and supply chain to increase competitiveness and reduce costs • Building upon Asian partnerships for faster product innovation and cost reduction programs NASDAQ:CLFD 22
Slide 23: Financial Outlook
$73.9M $77.7M $85.0M $93.1M $140.8 $162M - $169M FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Financial Outlook NASDAQ:CLFD 23 FY 2022 guidance issued and effective as of Nov. 4, 2021; growth rate is based on midpoint of net sales guidance range Annual Net Sales ($ in millions)
Slide 24: Key Takeaways
Key Takeaways NASDAQ:CLFD 24 Proven business model and management execution Enhanced management team and expansion of total addressable market Strong competitive position in a rapidly growing multi - billion - dollar fiber - fed broadband industry Strong balance sheet: $ 60 M in cash and no debt Yea
Slide 25: Q&A
Q&A NASDAQ:CLFD 25 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER
Slide 26: Contact Us
NASDAQ:CLFD 26 Contact Us COMPANY CONTACT: Cheri Beranek President & CEO Clearfield, Inc. IR@clfd.net INVESTOR RELATIONS: Matt Glover and Sophie Pearson Gateway Investor Relations (949) 574 - 3860 CLFD@gatewayir.com