Slide 1: Clearfield Earnings Presentation: Fiscal Q1 2024
Clearfield Earnings Presentation: Fiscal Q1 2024 Earnings Call February 1, 2024 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 Presentation are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “will,” “expe
Slide 3: Enabling the lifestyle better broadband provides
Enabling the lifestyle better broadband provides 3
Slide 4: First Quarter Fiscal 2024 Highlights and Outlook
First Quarter Fiscal 2024 Highlights and Outlook Total net sales of $34.2 million and a loss per share of $0.35. Repurchased approximately $12 million in shares under Share Repurchase Program at average price of $27.69, leaving $21 million available for repurchases. Announced a new product - a
Slide 5: 2023 Sets A New Record For The Highest Annual FTTH Growth
MARKET UPDATE 2023 Sets A New Record For The Highest Annual FTTH Growth Annual Homes-Marketed (All Years Ending Q3) 9M RVA 2023 Provider Study 10 9 9M 8 7.2 M Homes Newly Passed by 7 Network Operators in 2023 Millions 6 5 3M 4.2 M 4 3 2 Homes Passed with 1 Previous Access to one 0 Fiber Service Prov
Slide 6: BEAD Funding Timeline
MARKET UPDATE BEAD Funding Timeline Timing BEAD Money to Market 2024 • After approval of initial proposals, NTIA awards 20% of funds to States • State challenge process (60 days before award to sub-grantees) • State grant processes • Final proposals due to NTIA within 12 months of initial proposal a
Slide 7: Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue
MARKET UPDATE Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue 12M New Federal Investment Base: History & Forecast 57.1M Additional Passed CLFD 5-Year Revenue (44M Additional Unique) 60 $1,000 $900 Additional Homes Passed 50 68.3M Homes Passed Including Homes with 2+ Fiber
Slide 8: Financial Performance
\7 CLEARFIELD Financial Performance
Slide 9: Quarterly Revenue
FINANCIAL PERFORMANCE Quarterly Revenue $100 $90 $80 $70 $60 $50 $34.2M Q1 2024 Revenue $85.9 $40 $71.8 $30 $61.3 $49.7 $20 $34.2 $10 $0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 All dollar figures in millions 9
Slide 10: Q1 FY24 Net Sales Comparison by Market and Composition
Q1 FY24 Net Sales Q1 FY24 Net Sales Composition Ended Comparison by Market 12/31/231 Quarterly Net Sales Community Broadband International (Tier 2&3, utilities, municipalities, and (Europe, Canada, Mexico, and FQ1 23 FQ1 24 $37 alternative carriers) Caribbean Markets) 19% $21 Legacy $15 (Legacy cont
Slide 11: Quarterly Gross Profit and Margin
FINANCIAL PERFORMANCE Quarterly Gross Profit and Margin $35 40% $30.6 $30 35% Gross Margin Continues to be Impacted by Unabsorbed 30% $25 $23.6 Overhead in Manufacturing 25% Facilities due to Lower Levels of $20 $19.1 Demand, Winter Seasonality, 20% $15 and an Increase in Reserves for $12.0 15% Inve
Slide 12: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $16 40% $14 $13.4 35% $12.8 $12.9 $11.5 Operating $12 30% $10.3 $10 25% Expenses are $8 20% Consistent with $6 15% the Prior Year $4 10% First Quarter. $2 5% $0 0% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Operating Expenses ($) Operating Expenses as a % of Net
Slide 13: Quarterly Net Income (Loss)
FINANCIAL PERFORMANCE Quarterly Net Income (Loss) $20 30% $(5.3M) 25% $15 $14.3 20% $10.4 15% $10 Q1 2024 Net Loss 10% $5.2 $5 5% $2.7 (15)% 0% $0 -5% -10% -$5 Q1 2024 Net Loss Margin -$5.3 -15% -$10 -20% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net Income (Loss) ($) Net Margin (%) All dollar figures in millio
Slide 14: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet $169 million of cash, short-term and long-term investments. This reflects a reduction of $5 million from September 30, 2023. $12 million was used for the repurchase of shares in the quarter. $2 million of debt. Enables the Company to weather the dynamics tha
Slide 15: Financial Outlook
Financial Outlook Quarterly Net Sales Net Income (Loss) Per Share ($ in millions) ($) $380 - $393 $0.67 $0.33 $(0.49) to $(0.55) $29 to $33 $0.17 $72 $61 $50 $(0.35) $34 Q2 23 Q2 23 Q3 23 Q4 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 24 Q2 24 Actual Actual Actual Actual Actual Actual Forecast Actual Actual Forec
Slide 16: Business Update
\7 CLEARFIELD Business Update
Slide 17: Investing in New Markets and Operational Cost Reduction Initiatives
Investing in New Markets • Adding expertise in Europe to leverage Nestor platform to cross sell connectivity products into Europe Operational Cost Reduction Initiatives Leverage our decade-long excellence in Community Broadband • Hired a senior-level operations executive to lead Execute excellen
Slide 18: Q&A
Q&A Cheri Beranek Dan Herzog PRESIDENT & CEO CHIEF FINANCIAL OFFICER 18
Slide 19: 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 19