Slide 1: Clearfield Earnings Presentation: Fiscal Q3 2023 Earnings Call
Clearfield Earnings Presentation: Fiscal Q3 2023 Earnings Call August 3, 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: Market Update: Expected BEAD Funding Timeline
Market Update Expected BEAD Funding Timeline 2022 • Notice of Funding opportunity (May) • States request initial planning funds • FCC releases initial version of broadband availability map, challenges follow 2023 • FCC releases new broadband availability map (in response to challenges) • NTIA releas
Slide 5: Financial Performance
VP CLEARFIELD Financial Performance
Slide 6: Quarterly Revenue $61M
FINANCIAL PERFORMANCE Quarterly Revenue $61M $100 $95 $90 $86 $80 $72 Q3 2023 Revenue $70 $61 $60 $50 18% $88 $40 $78 $71 $30 $61 $48 $20 Nestor Cables Contribution $10 compared to prior quarter $- Q3 22 Q4 22* Q1 23* Q2 23* Q3 23* Clearfield Organic Nestor Cables All dollar figures in millions 6 *I
Slide 7: Q3 FY23 Net Sales Composition and Comparison by Market
Q3 FY23 Net Sales Q3 FY23 Net Sales Composition Ended Comparison by Market 6/30/231 TTM Net Sales International (Europe, Canada, Mexico, and Caribbean Markets) FQ3 22 FQ3 23 $133 Community Broadband (Tier 2&3, utilities, municipalities, and Legacy alternative carriers) (Legacy contract $105 manufact
Slide 8: Quarterly Gross Profit and Margin
FINANCIAL PERFORMANCE Quarterly Gross Profit and Margin $40.0 $37.5 45% $35.0 40% $30.6 $29.3 35% $30.0 Gross profit levels have $25.0 $23.6 30% declined due to unused 25% capacity at our Mexico facility $19.1 $20.0 and Nestor Cables 20% $15.0 representing a higher 15% percentage of revenue. $10.0 1
Slide 9: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $18.0 25% $16.0 $15.3 $13.4 20% $14.0 $12.7 $12.8 $11.5 $12.0 15% $10.0 $8.0 10% $6.0 $4.0 5% $2.0 $0.0 0% Q3 22 Q4 22* Q1 23* Q2 23* Q3 23* Operating Expenses ($) Operating Expenses as a % of Net Sales All dollar figures in millions 9 *Includes con
Slide 10: Quarterly Net Income $5.2M
FINANCIAL PERFORMANCE Quarterly Net Income $5.2M $18.00 30% $17.0 $16.00 $14.3 25% $14.00 $12.7 Q3 2023 Net Income $12.00 20% $10.4 $10.00 15% $8.00 9% $6.00 $5.2 10% $4.00 5% $2.00 Q3 2023 Percent of Net Sales $- 0% Q3 22 Q4 22* Q1 23* Q2 23* Q3 23* Net Income ($) Net Margin (%) All dollar figures
Slide 11: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet $169 million of cash, short-term and long-term investments $2 million of debt Raised $130 million in net proceeds in December 2022 secondary offering for working capital and general corporate purposes 11
Slide 12: Financial Outlook
Financial Outlook Annual Net Sales Net Income Per Share ($ in millions) ($) $380 - $393 $260 to $275 $2.05 to $2.15 $3.55 $271 $1.47 $141 $85 $93 $0.34 $0.53 FY19 Actual FY20 Actual FY21 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 FY22 Actual FY23 Forecast Forecast FY 2023 net sales
Slide 13: Business Update
V7 CLEARFIELD Business Update
Slide 14: Continue to Invest in Clearfield College; Modernizing ERP
Continue to Invest in Clearfield College • Provides online and in-field customer training support to address skilled labor shortage Modernizing ERP and Internal Software Systems • Enables better order management and fulfillment to reduce lead times Leverage our decade-long excellence in Communit
Slide 15: Q&A
Q&A Cheri Beranek Dan Herzog Kevin Morgan PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHIEF MARKETING OFFICER 15
Slide 16: Appendix: Revenue by Market
Appendix Clearfield, Inc. Revenue by Market Trailing 8 Quarters Through 6/30/23 (FY 23 Q3) Q3 23 Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 Q1 22 Q4 21 Market/Account 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 International $14,186,467 $13,136,869 $10,203,747 $9,344,673 $2,
Slide 17: 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 17