Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Q4 2017 Earnings Presentation
23 slides from Clearfield's earnings presentation, Nov 13, 2017
Slide 1: Fiscal Q4 2017 Earnings Call FieldReport
NASDAQ:CLFD Leader in Fiber Optic Management & Connectivity Solutions Fiscal Q4 2017 Earnings Call FieldReport November 9, 2017 NASDAQ : CLFD
Slide 2: Important Cautions Regarding Forward-Looking Statements
NASDAQ:CLFD Important Cautions Regarding Forward - Looking Statements Forward - looking statements contained herein and in the FieldReport are made pursuant to the safe harbor provisions of the Privat e Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “e
Slide 3: Welcome
NASDAQ:CLFD Welcome 3 Cheri Beranek President & CEO
Slide 4: FY 2017 Review: Overall Market Pause Doesn't Overshadow Success in Key Growth Areas
NASDAQ:CLFD FY 2017 Review: Overall Market Pause Doesn’t Overshadow Success in Key Growth Areas 4 • Wireless and cable TV customers continue to put a pause in capex spending due to technology disruption and less competitive pressures • Revenue for fiscal 2017 outside of the alternative carrier marke
Slide 5: Financial Update
NASDAQ:CLFD Financial Update 5 Dan Herzog Chief Financial Officer
Slide 6: Quarterly Financial Performance
NASDAQ:CLFD Quarterly Financial Performance $21.1M $18.3M $17.7M $19.6M $18.4M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Revenue +33% +16% +4% - 9% - 13% Year - over - Year Growth Rate 6
Slide 7: Quarterly Financial Performance
NASDAQ:CLFD Quarterly Financial Performance $9.6M $7.2M $7.4M $7.9M $7.7M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Gross Profit 45.5% 39.5% 42.2% 40.5% 41.7% Gross Profit (%) 7 $21.1M $18.3M $17.7M $19.6M $18.4M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Revenue +33% +16% +4% - 9% - 13% Year - over - Year Growth Rate
Slide 8: Strategic Investment in Growth
NASDAQ:CLFD Strategic Investment in Growth $6.4M $6.0M $6.2M $6.6M $6.2M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Operating Expenses % of Revenue 8
Slide 9: Quarterly Financial Performance
NASDAQ:CLFD Quarterly Financial Performance $2.7M $0.9M $0.9M $0.8M $1.3M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Net Income 12.7% 4.8% 5.1% 4.1% 6.8% Net Margin 9 $21.1M $18.3M $17.7M $19.6M $18.4M Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Revenue +33% +16% +4% - 9% - 13% Year - over - Year Growth Rate $9.6M $7.2M $7.4M
Slide 10: Balance Sheet Supports Growth
NASDAQ:CLFD Balance Sheet Supports Growth $ in Millions Sept. 30, 2017 Sept. 30, 2016 Cash & Investments $44.3 $44.2 Total Assets $69.5 $70.6 Stockholders’ Equity $64.5 $62.6 Total Debt $0 $0 Total Capitalization $64.5 $62.6 $22.6 $33.1 $34.3 $44.2 $44.3 2013 2014 2015 2016 2017 Cash & Investment Ba
Slide 11: Operational Update and Outlook
NASDAQ:CLFD Operational Update and Outlook 11 Cheri Beranek President & CEO
Slide 12: FY 2017 Revenue Composition & Market Opportunity
NASDAQ:CLFD FY 2017 Revenue Composition & Market Opportunity Based on revenue of $73.9 million for the fiscal year ended September 30, 2017. 14% WIRELESS & CABLE TV 8% INTERNATIONAL 9 % WIRELINE – TIER 1 3% ALTERNATIVE 58% WIRELINE 8% OTHER 12 • Wireless service providers • MSOs • Competitive local
Slide 13: FY 2017 Revenue Composition & Market Opportunity
NASDAQ:CLFD FY 2017 Revenue Composition & Market Opportunity Based on revenue of $73.9 million for the fiscal year ended September 30, 2017. 13 Wireline TAM Cable TAM 14% WIRELESS & CABLE TV 8% INTERNATIONAL 9 % WIRELINE – TIER 1 3% ALTERNATIVE 58% WIRELINE 8% OTHER • Wireless service providers • MS
Slide 14: FY 2017 Revenue Composition & Market Opportunity
NASDAQ:CLFD FY 2017 Revenue Composition & Market Opportunity Based on revenue of $73.9 million for the fiscal year ended September 30, 2017. 14 Wireless TAM Wireline TAM Cable TAM 14% WIRELESS & CABLE TV 8% INTERNATIONAL 9 % WIRELINE – TIER 1 3% ALTERNATIVE 58% WIRELINE 8% OTHER • Wireless service p
Slide 15: The Road to Profitably Grow: Phases I-III
NASDAQ:CLFD Phase I (2008 - 2015) Phase II (2015+) Phase III (2018+) • Rebuild the company • Restore balance sheet and develop profitable and sustainable growth business • Build and expand the value proposition through patented and cost - minimizing solutions • Expand into Tier 1 market through prod
Slide 16: Fiscal 2018 Outlook and Guidance
NASDAQ:CLFD Fiscal 2018 Outlook and Guidance • 5% revenue growth: – 1H 2018 to be flat, while 2H 2018 to grow 10% year - over - year – Wireline to continue growing at high single digits – Wireless and cable TV markets to continue to be at a pause – Continued acceleration in the Tier 1 market • 40 -
Slide 17: Q&A
NASDAQ:CLFD Q&A 17 Cheri Beranek President & CEO Dan Herzog Chief Financial Officer
Slide 18: Q&A
NASDAQ:CLFD Q&A 18 Cheri Beranek President & CEO Dan Herzog Chief Financial Officer
Slide 19: Q&A
NASDAQ:CLFD Q&A 19 Cheri Beranek President & CEO Dan Herzog Chief Financial Officer
Slide 20: Q&A
NASDAQ:CLFD Q&A 20 Cheri Beranek President & CEO Dan Herzog Chief Financial Officer
Slide 21: NASDAQ:CLFD 21
NASDAQ:CLFD 21
Slide 22: Thank You
NASDAQ:CLFD Thank You 22 Cheri Beranek President & CEO
Slide 23: Company Contact
NASDAQ:CLFD Company Contact: Cheri Beranek CEO & President Clearfield, Inc. IR@clfd.net Investor Relations: Matt Glover or Najim Mostamand, CFA Liolios Group, Inc. (949) 574 - 3860 CLFD@liolios.com 23