Slide 1: Clearfield FieldReport: Fiscal Q4 & 2022 Earnings Call
Clearfield FieldReport : Fiscal Q4 & 2022 Earnings Call November 17, 2022 1
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward - Looking Statements NASDAQ:CLFD 2 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,”
Slide 3: Introduction & Highlights
NASDAQ:CLFD 3 Introduction & Highlights
Slide 4: Enabling the Lifestyle Better Broadband Provides
NASDAQ:CLFD NASDAQ:CLFD Enabling the Lifestyle Better Broadband Provides 4
Slide 5: What We Do
What We Do 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. NASDAQ:CLFD 5
Slide 6: Nestor Cables Acquisition Overview
NASDAQ:CLFD 6 Nestor Cables Acquisition Overview Finland - based subsidiary of Clearfield; one of the leading developers and manufacturers of fiber optic cable solutions in Northern Europe • Vertically integrates the supply of FieldShield fiber optic cables • Leverages Nestor’s deep technical expert
Slide 7: Financial Performance
NASDAQ:CLFD 7 Financial Performance
Slide 8: Quarterly Revenue
Quarterly Revenue $27.1 $29.7 $38.7 $45.2 $51.1 $53.5 $71.3 $88.0 $7.0 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Clearfield Organic Nestor Cables FINANCIAL PERFORMANCE 110% * Q4 2022 Growth Rate $95M * Q4 2022 Revenue NASDAQ:CLFD
Slide 9: Q4 & FY22 Net Sales Comparison by Market
Q4 & FY22 Net Sales Comparison by Market NASDAQ:CLFD All dollar figures in millions 1) Based on net sales of $270 million for Clearfield (including a $7M contribution from Nestor Cables within our international market) and Point of Sales (POS) reporting from distributors who resell our product line
Slide 10: Q4 & FY22 Net Sales Comparison by Market
$3.6 $7.0 $3.5 $0.9 $6.2 $21.4 $9.3 $0.6 National Carrier MSO International Legacy FQ4 21 FQ4 22 Q4 & FY22 Net Sales Comparison by Market NASDAQ:CLFD $12.0 $18.5 $9.5 $2.8 $23.5 $48.9 $15.3 $2.6 National Carrier MSO International Legacy FQ4 21 FQ4 22 Quarterly Net Sales FY22 Net Sales NASDAQ:CLFD 10
Slide 11: Annual Revenue
Annual Revenue $77.7 $85.0 $93.1 $140.8 $270.9 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 FY18 FY19 FY20 FY21 FY 22 11 FINANCIAL PERFORMANCE 92% FY 2022 Growth Rate $270.9M FY 2022 Consolidated Revenue
Slide 12: Quarterly Gross Profit
Quarterly Gross Profit $12.9 $17.1 $19.7 $23.0 $23.2 $29.3 $37.5 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% 46% $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Gross Profit ($) Gross Profit (%) FINANCIAL PERFORMANCE 90% Gross Profit increase YOY NASDAQ:CLFD 1
Slide 13: Annual Gross Profit
Annual Gross Profit $31.0 $32.7 $37.9 $61.2 $112.9 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 FY18 FY19 FY20 FY21 FY22 Gross Profit ($) Gross Profit (%) 13 FINANCIAL PERFORMANCE 85% Gross Profit increase YOY *FY 22 gross profit includes contribution from subsidi
Slide 14: Quarterly Operating Expenses
$8.5 $9.4 $10.4 $9.9 $11.2 $12.7 $15.3 0% 5% 10% 15% 20% 25% 30% 35% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Expenses in $Millions OP as a % of Net Sales FINANCIAL PERFORMANCE 6.8% YOY Decrease in Operating Expense as a percent of Net Sales NA
Slide 15: Annual Operating Expense
Annual Operating Expense $25.9 $27.5 $29.5 $35.9 $49.1 0% 5% 10% 15% 20% 25% 30% 35% 40% $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 FY18 FY19 FY20 FY21 FY22 Expenses in $Millions OP as a % of Net Sales FINANCIAL PERFORMANCE NASDAQ:CLFD 15
Slide 16: Quarterly Net Income
$3.2 $3.6 $6.1 $7.4 $10.4 $9.2 $12.7 $17.0 0% 5% 10% 15% 20% 25% 30% $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Net Income $ Net Margin (%) $17.0M Q4 2022 Net Income 17.9% Q4 2022 Percent of Net Sales FINANCIAL PERFORMANCE NASDAQ:CLFD 16 Quar
Slide 17: Annual Net Income
Annual Net Income $4.3 $4.6 $7.3 $20.3 $49.4 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 FY18 FY19 FY20 FY21 FY22 Net Income $ Net Margin (%) FINANCIAL PERFORMANCE $49.4M FY 2022 Net Income 18.2% FY 2022 Percent of Net Sales NASDAQ:C
Slide 18: Business Update & Outlook
NASDAQ:CLFD 18 Business Update & Outlook
Slide 19: Strategic priorities
NASDAQ:CLFD NASDAQ:CLFD NASDAQ:CLFD 19 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
Slide 20: Leverage our decade-long excellence in Community Broadband
NASDAQ:CLFD NASDAQ:CLFD Leverage our decade - long excellence in Community Broadband NASDAQ:CLFD 20
Slide 21: Execute Capacity Growth in Advance of Market Opportunity
NASDAQ:CLFD NASDAQ:CLFD Execute Capacity Growth in Advance of Market Opportunity NASDAQ:CLFD 21
Slide 22: Accelerate infrastructure investment
NASDAQ:CLFD NASDAQ:CLFD Accelerate infrastructure investment NASDAQ:CLFD 22
Slide 23: Position innovation at the forefront of our value proposition
NASDAQ:CLFD NASDAQ:CLFD Position innovation at the forefront of our value proposition NASDAQ:CLFD 23
Slide 24: Financial Outlook
FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Forecast $85 $93 $141 $271 NASDAQ:CLFD FY 2023 guidance issued and effective as of November 17, 2022; growth rate is based on midpoint of net sales guidance range a nd includes contribution from subsidiary Nestor Cables Annual Net Sales ($ in mill
Slide 25: Q&A
Cheri Beranek PRESIDENT & CEO Dan Herzog CHIEF FINANCIAL OFFICER Q&A NASDAQ:CLFD 25
Slide 26: Contact Us
NASDAQ:CLFD 26 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