Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Q1 2023 Earnings Presentation
22 slides from Clearfield's earnings presentation, Feb 2, 2023
Slide 1: Clearfield FieldReport: Fiscal Q1 2023 Earnings Call
Clearfield FieldReport: Fiscal Q1 2023 Earnings Call February 2, 2023 1
Slide 2: 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,” “believe,” “anticipate,” “estimate,” “outlook,” or “cont
Slide 3: Introduction & Highlights
Introduction & Highlights NASDAQ:CLFD 3
Slide 4: Our Mission: What We Do
OUR MISSION: WHAT WE DO: Enabling the lifestyle Clearfield provides fiber better broadband protection, fiber provides 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: Why We Win
Why We Win ✓ Singularly Focused on Serving the Fiber Market ✓ Attractive Total Cost of Ownership through Reduced Installation Cost and Maintenance Time ✓ Our Testing Shows FastPassTM Approach Cuts Install Time Required for Homes Passed by 50% ✓ Ease, Speed, and Cost of Deployment ✓ Delivery of a Com
Slide 6: Fiber deployment is projected to be strong for the next decade
11.3M Ten Year Annual Average Run Rate Fiber deployment is projected to be strong for the next decade Next 10-Years Assumes Assumes 12.3 12.3MNew Housing New Units Housing Units Homes HomesWith with Fiber Fiber Availability: Availability: 92% 92% Homes Homeswith with2+ 2+Fiber FiberAvailability: Ava
Slide 7: Financial Performance
Financial Performance NASDAQ:CLFD 7
Slide 8: Quarterly Revenue
FINANCIAL PERFORMANCE Quarterly Revenue $100 $90 $80 $95 $86 68% * Q1 2023 Growth Rate $70 $60 $50 $88 $40 $78 $71 $30 $20 $39 $45 $51 $54 $86M* $10 $- Q1 2023 Revenue Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Clearfield Organic Nestor Cables *Includes $8 million contribution from subsidiary Nestor
Slide 9: Q1 FY23 Net Sales Comparison by Market
Q1 FY23 Net Sales Q1 FY23 Net Sales Composition Ended Comparison by Market 12/31/221 Quarterly Net Sales TTM Net Sales International (Europe, Canada, Mexico, and Legacy Caribbean Markets) (Legacy contract manufacturing and FQ1 22 misc. sales) 1% 12% FQ1 22 FQ1 23 $192 MSO FQ1 23 (Cable TV) $48 $36 5
Slide 10: Q1 FY23 Net Sales Comparison by Market
Q1 FY23 Net Sales Q1 FY23 Net Sales Composition Ended Comparison by Market 12/31/221 Quarterly Net Sales International Legacy (Europe, Canada, Mexico, and $22 FQ1 22 FQ1 23 (Legacy contract Caribbean Markets) manufacturing and misc. sales) 1% 12% $9 $10 MSO $6 (Cable TV) $4 $2 $1 $1 National Carrier
Slide 11: Quarterly Gross Profit
FINANCIAL PERFORMANCE Quarterly Gross Profit $40 $38 50% 45% $35 $31 40% $30 $29 35% 33% $25 $23 $23 30% $20 $20 25% $17 20% $15 Gross Profit Increase YOY 15% $10 10% $5 5% $- 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Gross Profit ($) Gross Profit (%) *Q1 23 gross profit includes contribution fro
Slide 12: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $16.0 30% $15 $14.0 $13 $13 25% $12.0 $11 $10.0 $8.0 $9 $10 $10 20% 15% 5% YOY Decrease in $6.0 Operating Expense as a 10% percent of Net Sales $4.0 5% $2.0 $0.0 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Expenses in $Millions OP as a % of Net Sal
Slide 13: Quarterly Net Income
FINANCIAL PERFORMANCE Quarterly Net Income $18.0 30% $14.3M $17.0 $16.0 $14.3 25% $14.0 $12.7 Q1 2023 Net Income $12.0 20% $10.4 $10.0 $9.2 15% $8.0 $7.4 17% $6.1 $6.0 10% $4.0 5% Q1 2023 Percent of Net Sales $2.0 $- 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Net Income $ Net Margin (%) *Q4 2022 a
Slide 14: Business Update & Outlook
Business Update & Outlook NASDAQ:CLFD 14
Slide 15: Strategic priorities: community broadband, capacity growth, infrastructure, innovation
NASDAQ:CLFD Leverage our decade-long excellence in Community Broadband Execute capacity growth in advance of market opportunity Accelerate infrastructure investment Position innovation at the forefront of our value proposition NASDAQ:CLFD 15
Slide 16: Leverage our decade-long excellence in Community Broadband
NASDAQ:CLFD Leverage our decade-long excellence in Community Broadband NASDAQ:CLFD 16
Slide 17: Execute capacity growth in advance of market opportunity
NASDAQ:CLFD Execute capacity growth in advance of market opportunity NASDAQ:CLFD 17
Slide 18: Accelerate infrastructure investment
NASDAQ:CLFD Accelerate infrastructure investment NASDAQ:CLFD 18
Slide 19: Position innovation at the forefront of our value proposition
NASDAQ:CLFD Position innovation at the forefront of our value proposition NASDAQ:CLFD 19
Slide 20: Financial Outlook
Financial Outlook Annual Net Sales ($ in millions) $380 - $393 $271 $141 $85 $93 FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Forecast FY 2023 net sales guidance issued and effective as of November 17, 2022; growth rate is based on midpoint of net sales guidance range and includes contributi
Slide 21: Q&A
Q&A Cheri Beranek Dan Herzog Kevin Morgan PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHIEF MARKETING OFFICER NASDAQ:CLFD 21
Slide 22: Contact Us
Contact Us COMPANY CONTACT: Cheri Beranek President & CEO Clearfield, Inc. IR@seeclearfield.com INVESTOR RELATIONS: Matt Glover and Jackie Keshner Gateway Group, Inc. (949) 574-3860 CLFD@gatewayir.com NASDAQ:CLFD 22