Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Merger or Acquisition (May 2022)
17 slides from Clearfield's merger presentation, May 19, 2022
Slide 1: Acquisition of Nestor Cables Oy Conference Call
Acquisition of Nestor Cables Oy Conference Call May 17, 2022 NASDAQ: CLFD Good morning. Welcome to Clearfield’s conference call to discuss its acquisition of Nestor Cables. My name is Darryl, and I will be your operator today. Joining us for today’s presentation are the Company's President and CEO,
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward- Looking Statements Forward-looking statements contained herein and in any related presentation 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
Slide 3: Who We Are
Who We Are 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. Thanks, Sophie . Good morning, and thank you, everyone, for joining us today for the conference ca
Slide 4: Clearfield "Now of Age" Plan
Clearfield “Now of Age” Plan NASDAQ:CLFD 4 Augmenting Capacity for Ongoing Growth • Investing in products, manufacturing and supply chain to increase competitiveness and reduce costs • Building upon Domestic and Global partnerships for faster product innovation and cost reduction programs Accelerati
Slide 5: Overview on Nestor
NASDAQ:CLFD 5 Overview on Nestor • Nestor Cables was founded by cable technology professionals to preserve the Finnish tradition of producing high-quality fiber optic cables • Nestor is one of the leading developers and manufacturers of fiber optic cable solutions in Northern Europe • Nestor product
Slide 6: Nestor at a Glance
NASDAQ:CLFD 6 Nestor at a Glance • Founded in 2007 in Oulu, Finland • More than 100 employees • Customers in 50+ countries • Two production facilities • FY 2021 revenue of EUR €31.7 million (approximately $33 million) under Finnish Accounting Standards • Nestor will have enhanced capabilities to con
Slide 7: Transaction Details
Transaction Details • Transaction value with fees: $23 million • Funding Sources: Clearfield expects to fund the acquisition through its credit facility • Anticipated close: A few months, pending customary Finnish regulatory approvals • Acquisition is expected to be accretive to Clearfield earnings
Slide 8: Strategic Rationale
Strategic Rationale • Allows Clearfield to vertically integrate the supply of FieldShield fiber optic cables to meet future customer demand • Enables Clearfield to leverage Nestor’s deep technical expertise to extend overall supply of FieldShield fiber into the North American market • Expected to re
Slide 9: Questions from the Company's publishing sell-side analysts
Q&A NASDAQ:CLFD 9 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Thank you. We will now be taking questions from the Company’s publishing sell-side analysts.
Slide 10: Analyst Q&A: Jaeson Schmidt, Lake Street
Q&A NASDAQ:CLFD 10 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Operator Our first questions come from the line of Jaeson Schmidt with Lake Street Capital Markets. Jaeson Schmidt Lake Street Capital Markets, LLC, Research Division Congrats on the announcement this morning. Just w
Slide 11: Q&A: Nestor margins and Mexico manufacturing
Q&A NASDAQ:CLFD 11 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Jaeson Schmidt Lake Street Capital Markets, LLC, Research Division Okay. Perfect. And just curious if you could share with us sort of their gross margin profile. And I know the expectation is to kind of move to the M
Slide 12: Q&A: Supply chain and partnership
Q&A NASDAQ:CLFD 12 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Jaeson Schmidt Lake Street Capital Markets, LLC, Research Division Okay. That makes sense. And then just the last one for me, and I'll jump back into queue. Obviously, you mentioned they've been a long-standing partn
Slide 13: Analyst Q&A: Ryan Koontz, Needham
Q&A NASDAQ:CLFD 13 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Operator Our next question comes from the line of Ryan Koontz with Needham. Ryan Koontz Needham & Company, LLC, Research Division Sounds like a great move here, both short-term vertical integration and longer-term cr
Slide 14: Q&A: Competitor synergies and integration
Q&A NASDAQ:CLFD 14 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Ryan Koontz Needham & Company, LLC, Research Division Perfect. So it sounds like you're expecting any kind of dis-synergies with the deal of competitors of yours who they supply? Cheryl Beranek CEO, President & Direc
Slide 15: Q&A: Nestor as a supplier to Clearfield
Q&A NASDAQ:CLFD 15 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Ryan Koontz Needham & Company, LLC, Research Division Got it. And what -- any rough idea as to how large of a supplier they are for Clearfield today in terms of your current demand? Cheryl Beranek CEO, President & Di
Slide 16: Closing remarks and investor relations contact
Q&A NASDAQ:CLFD 16 Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Operator At this time, this concludes the company's question-and-answer session. If your question was not taken, you may contact Clearfield's Investor Relations team at clfd@gatewayir.com . I'd now like to turn the c
Slide 17: Contact Us
NASDAQ:CLFD 17 Contact Us COMPANY CONTACT: Cheri Beranek President & CEO Clearfield, Inc. IR@seeclearfield.com INVESTOR RELATIONS: Matt Glover and Sophie Pearson Gateway Investor Relations (949) 574-3860 CLFD@gatewayir.com 17