[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's Q1 FY2023 financial statements show significant year-over-year growth in assets, sales, and net income, reflecting the recent Nestor Cables acquisition [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) In Q1 FY2023, the company reported a 68% increase in net sales, a 37% rise in net income, and significant asset growth driven by a common stock issuance Consolidated Statement of Earnings Highlights (Q1 FY2023 vs Q1 FY2022) | Metric | Three Months Ended Dec 31, 2022 (in thousands) | Three Months Ended Dec 31, 2021 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $85,942 | $51,109 | +68.2% | | **Gross Profit** | $30,649 | $22,972 | +33.4% | | **Income from Operations** | $17,890 | $13,049 | +37.1% | | **Net Income** | $14,255 | $10,389 | +37.2% | | **Diluted EPS** | $1.00 | $0.75 | +33.3% | Consolidated Balance Sheet Highlights (As of Dec 31, 2022 vs Sep 30, 2022) | Metric | Dec 31, 2022 (in thousands) | Sep 30, 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $294,145 | $160,122 | +83.7% | | **Total Assets** | $351,797 | $229,128 | +53.5% | | **Total Liabilities** | $57,916 | $81,546 | -29.0% | | **Total Shareholders' Equity** | $293,881 | $147,582 | +99.1% | Consolidated Cash Flow Summary (Q1 FY2023 vs Q1 FY2022) | Cash Flow Activity | Three Months Ended Dec 31, 2022 (in thousands) | Three Months Ended Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,103 | $(34) | | **Net Cash used in Investing Activities** | $(101,094) | $(319) | | **Net Cash from Financing Activities** | $113,519 | $(181) | | **Increase (Decrease) in Cash** | $13,663 | $(534) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the establishment of two new reporting segments post-acquisition, revenue concentration, and the status of debt facilities - Following the acquisition of Nestor Cables on July 26, 2022, the company established **two reportable segments**: Clearfield and Nestor Cables[49](index=49&type=chunk)[65](index=65&type=chunk) Segment Performance (Q1 FY2023) | Segment | Revenue from External Customers (in thousands) | Net Income (Loss) (in thousands) | | :--- | :--- | :--- | | **Clearfield** | $78,355 | $14,718 | | **Nestor Cables** | $7,587 | $(310) | - **Broadband service providers constituted 97% of net sales**, with one major distributor, Customer A, comprising **15% of net sales** during this period[29](index=29&type=chunk)[63](index=63&type=chunk) - The company's **$40 million revolving line of credit had a zero balance** as of December 31, 2022, after being paid down, and the company was in compliance with all debt covenants[67](index=67&type=chunk)[184](index=184&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the drivers of 68% revenue growth, a decline in gross margin due to expansion, and a strengthened liquidity position from a stock offering [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 FY2023 net sales rose 68% driven by broadband demand and the Nestor acquisition, though gross margin declined due to investment and business mix Net Sales Breakdown (Q1 FY2023 vs Q1 FY2022) | Customer/Region | Q1 FY2023 Net Sales (in thousands) | Q1 FY2022 Net Sales (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Broadband Service Providers** | $83,626 | $50,406 | +65.9% | | **International Sales** | $10,204 | $1,991 | +412.5% | | **Total Net Sales** | $85,942 | $51,109 | +68.2% | - **Gross profit margin decreased from 44.9% to 35.7% YoY**, attributed to investments in new Minnesota and Mexico facilities and the inclusion of lower gross profit from the Nestor Cables business[222](index=222&type=chunk) - The **order backlog was $136 million** as of Q1 2023, a 34% increase over the prior year but a 17% sequential decrease attributed to faster order fulfillment[46](index=46&type=chunk) [Reportable Segments](index=22&type=section&id=Reportable%20Segments) The Clearfield segment saw strong growth in sales and income, while the new Nestor Cables segment recorded a small net loss on $7.6 million in sales Clearfield Segment Performance | Metric | Q1 FY2023 (in thousands) | Q1 FY2022 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Segment Net Sales** | $78,355 | $51,109 | +53.3% | | **Segment Net Income** | $14,718 | $10,389 | +41.7% | Nestor Cables Segment Performance (Q1 FY2023) | Metric | Amount (in thousands) | | :--- | :--- | | **Segment Net External Sales** | $7,587 | | **Segment Net Loss** | $(310) | [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with $158.1 million in cash and investments, bolstered by a $130.3 million stock offering used to repay acquisition-related debt - **Net proceeds of $130.3 million** were received from the issuance of common stock, and a portion of these funds, **$16.7 million**, was used to pay down the line of credit for the Nestor Cables acquisition[102](index=102&type=chunk) - **Net cash provided by operating activities was $1.1 million**, with cash used to increase inventory by $6.5 million to support the sales order backlog and mitigate supply chain disruptions[100](index=100&type=chunk) - The company's principal source of liquidity was **$147.9 million in cash, cash equivalents, and short-term investments**, plus a $40 million undrawn line of credit[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces increased foreign exchange risk from its Euro-based subsidiary and market risk from inflation impacting costs - The company is exposed to **foreign exchange risk** as the functional currency of its new subsidiary, Nestor Cables, is the Euro; a hypothetical **10% change in the Euro/USD rate would have changed operating expenses by approximately $130,000**[88](index=88&type=chunk) - The company is subject to **market risk from inflation**, with rising costs in wages, logistics, and raw materials negatively impacting profitability[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of December 31, 2022, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[107](index=107&type=chunk) - No material changes were made to internal controls over financial reporting, but the company is still in the process of **integrating the internal control environment of the Nestor Cables segment**[91](index=91&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings & Item 1A. Risk Factors](index=26&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS%20%26%20ITEM%201A.%20RISK%20FACTORS) The company reports no material pending legal proceedings and no material changes to its previously disclosed risk factors - There are **no pending legal proceedings** against the Company expected to have a material adverse effect[92](index=92&type=chunk) - There have been **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K[109](index=109&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 9,803 shares for $0.95 million to satisfy employee tax obligations, with $15.0 million remaining under its repurchase program Issuer Purchases of Equity Securities (Q1 FY2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **November 1-30, 2022** | 5,778 | $92.48 | | **December 1-31, 2022** | 4,025 | $104.36 | | **Total** | 9,803 | $97.36 (approx.) | - As of December 31, 2022, the approximate dollar value of shares that may yet be purchased under the company's stock repurchase program is **$14,980,671**[110](index=110&type=chunk)[119](index=119&type=chunk) [Other Items and Exhibits](index=26&type=section&id=Other%20Items%20and%20Exhibits) The report notes no other material information to disclose and lists key exhibits filed, including CEO/CFO certifications and iXBRL data - Items 3 (Defaults Upon Senior Securities), 4 (Mine Safety Disclosures), and 5 (Other Information) were reported as **not applicable or had no information to disclose**[94](index=94&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[120](index=120&type=chunk) - Exhibits filed with the Form 10-Q include **CEO and CFO certifications** and financial data in **iXBRL format**[113](index=113&type=chunk)[121](index=121&type=chunk)

Sales Performance - The company's net sales for fiscal year 2022 increased by 92%, or $130,128,000, reaching $270,883,000 compared to $140,755,000 in fiscal year 2021[197] - Sales to the Community Broadband market increased by 84%, or $82,651,000, from $97,978,000 in fiscal year 2021 to $180,629,000 in fiscal year 2022[198] - Sales to the MSO/Cable TV market surged by 164%, or $30,379,000, from $18,490,000 in fiscal year 2021 to $48,868,000 in fiscal year 2022[198] - Sales to National Carriers rose by 96%, or $11,499,000, from $11,956,000 in fiscal year 2021 to $23,456,000 in fiscal year 2022[198] - Net sales in the Clearfield segment increased by 87%, or $123,067,000, to $263,822,000 for the fiscal year ended September 30, 2022[224] Profitability - Gross profit for fiscal year 2022 increased by 85%, or $51,770,000, from $61,177,000 in fiscal year 2021 to $112,947,000[200] - Gross profit margin decreased to 41.7% in fiscal year 2022 from 43.5% in fiscal year 2021, primarily due to increased component costs and inflationary pressures[201] - Net income for fiscal year 2022 was $49,362,000, or $3.58 per basic share, compared to $20,327,000, or $1.48 per basic share in fiscal year 2021[208] - Net income in the Clearfield segment for fiscal year 2022 increased by 145%, or $29,444,000, driven by increased sales[225] Expenses - Cost of sales for fiscal year 2022 was $157,936,000, an increase of 98%, or $78,358,000, from $79,578,000 in fiscal year 2021[200] - Selling, general and administrative expenses for fiscal year 2022 increased by $13,187,000, or 37%, to $49,130,000 compared to $35,943,000 in fiscal year 2021[202] - The income tax expense for fiscal year 2022 was $14,472,000, an increase from $5,407,000 in fiscal year 2021, reflecting higher taxable income[207] - Interest expense for fiscal year 2022 was $311,000, attributed to $16,700,000 borrowed on the line of credit and debt held with Nestor Cables[206] Cash Flow and Investments - The company generated net cash from operations of $1,001,000 for the fiscal year ended September 30, 2022, compared to $10,903,000 in 2021 and $6,656,000 in 2020[231][232][235] - The company used $16,187,000 in cash to acquire Nestor Cables on July 26, 2022, contributing to cash used in investing activities of $8,197,000 for the fiscal year[236] - The company borrowed $16,700,000 on its line of credit to fund the acquisition of Nestor Cables, resulting in net cash provided by financing activities of $10,655,000 in 2022[239] - As of September 30, 2022, the company had combined cash and investments of $45,199,000, down from $60,503,000 as of September 30, 2021[229] Inventory and Sales Management - The company increased its inventory by $43,744,000 in 2022 to support higher sales backlog and demand, compared to $13,116,000 in 2021 and $5,396,000 in 2020[231][232][235] - The company's days sales outstanding (DSO) increased from 39 to 52 days from September 30, 2021 to September 30, 2022, indicating longer payment terms with certain customers[231] Strategic Initiatives - The acquisition of Nestor Cables on July 26, 2022, contributed to a 62% increase in sales to international customers, rising from $9,470,000 in fiscal year 2021 to $15,276,000 in fiscal year 2022[198] - The company plans to continue investing in information technology and manufacturing equipment, including expansion of its facility in Mexico[236] Market Risks - The company's ability to predict future orders is limited due to potential supply chain disruptions and changes in customer ordering patterns influenced by COVID-19[199] - Rising costs from inflation are negatively impacting profitability, with increased expenses in wages, logistics, and components[247] - The company does not hedge against foreign currency fluctuations, which could materially impact financial results due to the Euro's relationship with the U.S. dollar[246]

| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Clearfield FieldReport: | | | | | | | | | Fiscal Q4 & 2022 Earnings Call | | | | | | | | | November 17, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �CLEARFIELD 1 Important Cau ...

Clearfield, Inc. (NASDAQ:CLFD) Q4 2022 Earnings Conference Call November 17, 2022 5:00 PM ET Corporate Participants Matt Glover - Gateway Group Cheri Beranek - President and Chief Executive Officer Dan Herzog - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Ryan Koontz - Needham & Company Greg Mesniaeff - WestPark Capital Tim Savageaux - Northland Capital Markets Operator Good afternoon and welcome to Clearfield's Fiscal Fourth Quarter and Full Year 2022 Earnings Conferenc ...

Investor Presentation August 2022 NASDAQ: CLFD 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," "believe," "anticipate," "estimate," "outlook," or "continue" or comparable terminology are intended to identify forwardlooking statements. Such forward looking sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to ___________________ Commission File Number 0-16106 Clearfield, Inc. (Exact name of Registrant as specified in its chart ...

Clearfield, Inc. (NASDAQ:CLFD) Q3 2022 Earnings Conference Call July 28, 2022 5:00 PM ET Company Participants Sophie Pearson - Gateway Group Cheri Beranek - President & Chief Executive Officer Dan Herzog - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Capital Markets Ryan Koontz - Needham & Company Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Clearfield's Fiscal Third Quarter 2022 Earnings Conference Call. My name is Vikram and I will be y ...

FieldReport | --- | --- | |---------------|-------| | | | | July 28, 2022 | | Important Cautions Regarding ForwardLooking 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," "believe," "anticipate," "estimate," "outlook," or "continue" or comparable terminology are intended to identify forward-looking statem ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to ___________________ Commission File Number 0-16106 Clearfield, Inc. (Exact name of Registrant as specified in its charter) Minnesota 41-1347235 (State ...

Clearfield, Inc. (NASDAQ:CLFD) Q2 2022 Earnings Conference Call April 28, 2022 5:00 PM ET Company Participants Cheri Beranek - President and Chief Executive Officer Dan Herzog - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Tim Savageaux - Northland Capital Markets Ryan Koontz - Needham Operator Good afternoon. Welcome to Clearfield's Fiscal Second Quarter 2022 Earnings Conference Call. My name is Hemant and I will be your operator this afternoon. Joining us for today's ...