Slide 1: Clearfield Earnings Presentation: Fiscal Q2 2024
Clearfield Earnings Presentation: Fiscal Q2 2024 Earnings Call May 2, 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,” “plan,” “expe
Slide 3: Enabling the lifestyle better broadband provides
Enabling the lifestyle better broadband provides 3
Slide 4: Second Quarter Fiscal 2024 Highlights and Outlook
Second Quarter Fiscal 2024 Highlights and Outlook ü Total net sales of $36.9 million and a loss of $0.40 cents per share. ü Backlog increased sequentially driven by strength in Community Broadband. ü Board of Directors increased share repurchase program authorization from $40 million to $65 million.
Slide 5: Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue
MARKET UPDATE Five Year U.S. FTTH Forecast Versus Past Construction & Clearfield Revenue Homes w/ Multiple Fibers 21.2M 59.3M Additional Passed Base: History & Forecast (38.2M Additional Unique) CLFD FY Revenue 60 $1,000 78 Million Homes Passed Including Homes with 2+ Fiber Passings $900 Homes Passe
Slide 6: Financial Performance
V7 CLEARFIELD Financial Performance
Slide 7: Quarterly Revenue
FINANCIAL PERFORMANCE Quarterly Revenue $80 $70 $60 $50 $40 $36.9M $71.8 Q2 2024 Revenue $30 $61.3 $49.7 $20 $36.9 $34.2 $10 $0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 All dollar figures in millions 7
Slide 8: Q2 FY24 Net Sales Composition and Comparison by Market
Q2 FY24 Net Sales Q2 FY24 Net Sales Composition Ended Comparison by Market 3/31/241 Quarterly Net Sales Community Broadband International (Tier 2&3, utilities, municipalities, and (Europe, Canada, Mexico, and FQ2 23 FQ2 24 $33 alternative carriers) Caribbean Markets) $16 27% $13 $13 $10 $10 43% Lega
Slide 9: Quarterly Gross Profit and Margin
FINANCIAL PERFORMANCE Quarterly Gross Profit and Margin $25 35% $23.6 Our gross margin 30% $20 $19.1 continues to be 25% impacted by $15 20% unabsorbed overhead in $12.0 our manufacturing 15% $10 facilities and an increase $4.7 10% in reserves for excess $5 $2.8 5% inventory due to lower levels of d
Slide 10: Quarterly Operating Expenses
FINANCIAL PERFORMANCE Quarterly Operating Expenses $16 40% $14 $13.4 $12.9 35% Operating expenses $12.6 $12 $11.5 30% increased $1.1 million $10 $10.3 25% compared to the same year-ago quarter as the $8 20% company continues to $6 15% strategically invest in $4 10% the organization with a $2 5% prud
Slide 11: Quarterly Net Income (Loss)
FINANCIAL PERFORMANCE Quarterly Net Income (Loss) $12 30% $10.4 $(5.9M) $10 25% $8 20% $6 $5.2 15% Q2 2024 Net Loss $4 10% $2.7 $2 5% -$5.3 -$5.9 (16)% $0 0% -$2 -5% -$4 -10% Q2 2024 Net Loss Margin -$6 -15% -$8 -20% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Net Income (Loss) ($) Net Margin (%) All dollar figur
Slide 12: Balance Sheet
FINANCIAL PERFORMANCE Balance Sheet ü $149 million of cash, short-term and long-term investments. This reflects a reduction of $20 million from December 31, 2023. $15.5 million was used for the repurchase of shares in the quarter. ü $2 million of debt. ü Enables the Company to weather the dynamics t
Slide 13: Financial Outlook
Financial Outlook Quarterly Net Sales Net Income (Loss) Per Share ($ in millions) ($) $380 - $393 $0.33 $40 to $44 $(0.31) to $(0.38) $0.17 $61 $50 $(0.35) $(0.45) $34 $37 Q3 23 Q3 23 Q4 23 Q1 24 Q4 23 Q1 24 Q2 24 Q3 24 Q2 24 Q3 24 Actual Actual Actual Actual Actual Actual Forecast Actual Actual For
Slide 14: Business Update
V7 CLEARFIELD Business Update
Slide 15: Clearfield College and 3D Interactive Fiber Installation Tool
ü Clearfield College • Long provided in-field as well as classroom and online training as part of Clearfield’s initiative to reduce the cost of fiber by reducing the time of installation. ü Industry’s First 3D Interactive Fiber Installation Tool • Announced the availability of an app-based 3-D Lever
Slide 16: Q&A
Q&A Cheri Beranek Dan Herzog PRESIDENT & CEO CHIEF FINANCIAL OFFICER 16
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