FieldReport / Fiscal Q3 2021 Earnings Call / July 22, 2021 NASDAQ:CLFD The Industry Leader in Craft Friendly Fiber Optic Management and Connectivity Solutions Fiscal Q3 2021 Earnings Call FieldReport FieldReport / Fiscal Q3 2021 Earnings Call / July 22, 2021 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 ...

Clearfield, Inc. (NASDAQ:CLFD) Q3 2021 Earnings Conference Call July 22, 2021 5:00 PM ET Company Participants Cheri Beranek - CEO Dan Herzog - CFO Conference Call Participants Jaeson Schmidt - Lake Street Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Clearfield's Fiscal Third Quarter 2021 Earnings Conference Call. My name is Victor and I'll be your operator for this afternoon. Joining us for today's presentation are the company's President and CEO, Cheri Beranek; and CFO, Dan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $0.01 par value CLFD The NASDAQ Stock Market LLC FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to ___________ ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed financial statements for the three and six months ended March 31, 2021, showing significant growth in net sales and income [Condensed Balance Sheets](index=4&type=section&id=CLEARFIELD%2C%20INC.%20CONDENSED%20BALANCE%20SHEETS) As of March 31, 2021, total assets increased to $103.8 million and shareholders' equity grew to $89.8 million, reflecting strong retained earnings growth Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | September 30, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $60,837 | $52,523 | | **Total Assets** | **$103,818** | **$95,297** | | **Total Current Liabilities** | $11,888 | $10,415 | | **Total Liabilities** | $13,969 | $12,544 | | **Total Shareholders' Equity** | **$89,848** | **$82,753** | [Condensed Statements of Earnings](index=5&type=section&id=CLEARFIELD%2C%20INC.%20CONDENSED%20STATEMENTS%20OF%20EARNINGS) The company reported significant growth for the periods ended March 31, 2021, with Q2 net sales increasing 45% to $29.7 million and net income surging to $3.6 million Statement of Earnings Summary (Unaudited, in millions) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | Six Months Ended Mar 31, 2021 | Six Months Ended Mar 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $29.7 | $20.4 | $56.8 | $39.8 | | **Gross Profit** | $12.9 | $8.2 | $24.3 | $15.9 | | **Income from Operations** | $4.5 | $0.7 | $8.2 | $1.1 | | **Net Income** | $3.6 | $0.7 | $6.8 | $1.2 | | **Diluted EPS** | $0.27 | $0.05 | $0.50 | $0.09 | [Condensed Statements of Cash Flows](index=8&type=section&id=CLEARFIELD%2C%20INC.%20CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended March 31, 2021, net cash from operating activities significantly increased to $6.7 million, driven by higher net income Cash Flow Summary for Six Months Ended March 31 (Unaudited, in millions) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $6.7 | $2.3 | | **Net cash used in investing activities** | ($0.5) | ($3.5) | | **Net cash used in financing activities** | ($0.3) | ($0.3) | | **Increase (Decrease) in cash** | $5.9 | ($1.5) | | **Cash and cash equivalents, end of period** | $22.3 | $8.6 | [Note 5: Revenue](index=12&type=section&id=Note%205.%20Revenue) Revenue is primarily recognized upon product transfer, with sales disaggregated by geography and market, predominantly to Broadband Service Providers in the United States Revenue by Geographic Area (in thousands) | Region | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | United States | $27,744 | $19,489 | | All other countries | $1,948 | $919 | | **Total Net Sales** | **$29,692** | **$20,409** | Percentage of Sales by Market | Market | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Broadband service providers | 97% | 96% | | Legacy customers | 3% | 4% | [Note 7: Major Customer Concentration](index=13&type=section&id=Note%207.%20Major%20Customer%20Concentration) The company has significant sales and accounts receivable concentration with two distributor customers as of March 31, 2021 - For the three months ended March 31, 2021, two distributor customers (A and B) comprised **21%** and **11%** of net sales, respectively[57](index=57&type=chunk) - As of March 31, 2021, Customers A and B accounted for **10%** and **14%** of accounts receivable, respectively[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the financial results, highlighting a 45% increase in net sales for Q2 2021 driven by strong demand and improved gross profit margins [Results of Operations](index=17&type=section&id=RESULTS%20OF%20OPERATIONS) This section details significant year-over-year growth for the periods ended March 31, 2021, driven by increased demand and improved gross profit margins Q2 Fiscal 2021 vs Q2 Fiscal 2020 Performance | Metric | Q2 2021 | Q2 2020 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $29.7M | $20.4M | +45% | | Gross Profit | $12.9M | $8.2M | +59% | | Gross Margin | 43.6% | 39.9% | +3.7 p.p. | | Operating Income | $4.5M | $0.7M | +518% | | Net Income | $3.6M | $0.7M | +387% | - The Q2 sales increase was driven by Community Broadband (+$8.3M), MSO (+$1.6M), and International customers (+$1.0M), partially offset by a decrease in Tier 1 sales (-$1.6M)[82](index=82&type=chunk) - The increase in gross profit percent was primarily due to a favorable product mix, cost reduction efforts, and efficiencies from higher sales volumes and greater use of its Mexico manufacturing plants[84](index=84&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of March 31, 2021, the company maintained a strong liquidity position with $57.9 million in cash and investments and no long-term debt - Total liquidity, including cash, cash equivalents, and short- and long-term investments, increased to **$57.9 million** as of March 31, 2021[100](index=100&type=chunk) - The company had **no long-term debt obligations** as of March 31, 2021[100](index=100&type=chunk) - Net cash provided by operating activities for the six months ended March 31, 2021, was **$6.7 million**, compared to **$2.3 million** for the same period in 2020[102](index=102&type=chunk)[104](index=104&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states that this item is not applicable for this reporting period - Not applicable[114](index=114&type=chunk) [Controls and Procedures](index=21&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls - The CEO and CFO concluded that the Company's disclosure controls and procedures were **effective** as of March 31, 2021[115](index=115&type=chunk) - No changes to the Company's internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[116](index=116&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=21&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no pending legal proceedings that are likely to have a material adverse effect on its financial position or results of operations - There are no pending legal proceedings against the Company for which the outcome is likely to have a material adverse effect[117](index=117&type=chunk) [Risk Factors](index=21&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section supplements previous risk disclosures, highlighting significant global supply chain risks impacting material availability and costs - The company depends on the availability of sufficient supply of certain materials, and global disruptions in the supply chain for these materials could prevent it from meeting customer demand[121](index=121&type=chunk) - The global supply chain for critical raw materials, such as resin and fiber optic cable, has recently suffered shortages, shipping delays, and price increases, which are expected to persist and likely intensify[122](index=122&type=chunk) - Failure of suppliers to meet deadlines or increases in their costs may impact the company's ability to deliver products on time, make products less competitive, and result in lower net sales and profit[124](index=124&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company details equity security repurchases for the three months ended March 31, 2021, including shares bought for tax payments and remaining repurchase authorization - In the three months ended March 31, 2021, the Company repurchased **1,750 shares** at an average price of **$24.72** in connection with payment of taxes upon vesting of restricted stock[127](index=127&type=chunk)[128](index=128&type=chunk) - Approximately **$4,980,671** remains available for repurchase under the Company's Board-authorized program[127](index=127&type=chunk) [Defaults Upon Senior Securities](index=23&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reports that there were no defaults upon senior securities - None[129](index=129&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company states that this item is not applicable - Not applicable[130](index=130&type=chunk) [Other Information](index=23&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company states that this item is not applicable - Not applicable[131](index=131&type=chunk) [Exhibits](index=23&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO and CFO certifications pursuant to SEC rules - Lists CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) filed or furnished with the report[132](index=132&type=chunk)

Clearfield, Inc. (NASDAQ:CLFD) Q2 2021 Earnings Conference Call April 22, 2021 5:00 PM ET Company Participants Cheri Beranek - President & CEO Daniel Herzog - CFO Conference Call Participants Jaeson Schmidt - Lake Street Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Clearfield's Fiscal Second Quarter 2021 Earnings Conference Call. My name is Paul and I will be your operator this afternoon. Joining us for today's presentation are the company's President and CEO, Cheri Beranek; ...

FieldReport / Fiscal Q2 2021 Earnings Call / April 22, 2021 NASDAQ:CLFD The Industry Leader in Craft Friendly Fiber Optic Management and Connectivity Solutions Fiscal Q2 2021 Earnings Call FieldReport FieldReport / Fiscal Q2 2021 Earnings Call / April 22, 2021 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 Litigatio ...

Part I [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for Q1 2021 demonstrate significant year-over-year growth in sales and net income, supported by a strong balance sheet and positive operating cash flow [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Balance Sheet Summary (as of December 31, 2020) | Account | Dec 31, 2020 (Unaudited) ($) | Sep 30, 2020 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $52,211,429 | $52,522,809 | | **Total Assets** | **$96,187,684** | **$95,297,430** | | **Total Current Liabilities** | $7,768,856 | $10,414,809 | | **Total Liabilities** | **$10,076,246** | **$12,544,152** | | **Total Shareholders' Equity** | **$86,111,438** | **$82,753,278** | - From September 30, 2020, to December 31, 2020, total assets slightly increased, while total liabilities decreased by approximately **$2.5 million**, leading to a **$3.4 million increase** in total shareholders' equity[13](index=13&type=chunk) [Condensed Statements of Earnings](index=5&type=section&id=Condensed%20Statements%20of%20Earnings) Statement of Earnings (Three Months Ended December 31) | Metric | 2020 ($) | 2019 ($) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Sales** | $27,092,147 | $19,377,991 | +40% | | **Gross Profit** | $11,369,245 | $7,727,535 | +47% | | **Income from Operations** | $3,713,708 | $400,915 | +826% | | **Net Income** | $3,163,439 | $501,158 | +531% | | **Diluted EPS** | $0.23 | $0.04 | +475% | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Three Months Ended December 31) | Activity | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $2,716,659 | ($99,831) | | **Net cash provided by investing activities** | $79,117 | $438,531 | | **Net cash (used in) provided by financing activities** | ($94,336) | $166,429 | | **Increase in cash and cash equivalents** | $2,701,440 | $505,129 | | **Cash and cash equivalents, end of period** | $19,151,076 | $10,586,850 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Notes highlight that **98% of revenue** is from U.S. Broadband Service Providers, with significant customer concentration and new lease agreements for manufacturing facilities in Tijuana, Mexico - Broadband service providers comprised **98% of net sales** for the three months ended December 31, 2020, an increase from 94% in the prior-year period[48](index=48&type=chunk) - Two distributors accounted for **19% (Customer A)** and **12% (Customer B)** of net sales for the three months ended December 31, 2020[52](index=52&type=chunk) - The company entered into a new three-year lease for its original manufacturing facility in Tijuana, Mexico, and also leases an additional **52,000 square foot facility** in the same city[62](index=62&type=chunk)[63](index=63&type=chunk) [Management's Discussion and Analysis (MD&A)](index=15&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes **40% year-over-year revenue growth** to increased demand from broadband customers, with gross margin improving due to product mix and efficiencies, while maintaining a strong liquidity position [Overview](index=15&type=section&id=Overview) - Clearfield designs, manufactures, and distributes fiber optic management products for communications networks, serving Broadband Service Providers in the U.S. and international markets[70](index=70&type=chunk) - In response to COVID-19, the company's operations are classified as critical infrastructure, implementing safety measures, remote work, and increased safety stock to mitigate supply chain risks[72](index=72&type=chunk)[73](index=73&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Q1 2021 vs Q1 2020 Performance | Metric | Q1 2021 ($) | Q1 2020 ($) | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $27.1M | $19.4M | +40% | | **Gross Profit** | $11.4M | $7.7M | +47% | | **Gross Margin** | 42.0% | 39.9% | +2.1 p.p. | | **Operating Income** | $3.7M | $0.4M | +826% | - The **$7.7 million year-over-year increase in net sales** was primarily driven by an **$8.2 million increase** from Community Broadband Service Providers and a **$0.7 million increase** from MSO customers[77](index=77&type=chunk) - The increase in gross profit margin resulted primarily from a favorable product mix and cost reduction efforts, including increased utilization of Mexico manufacturing plants and supply chain efficiencies[79](index=79&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **4% ($0.3 million)**, mainly due to higher performance-based compensation, partially offset by a **$373,000 decrease** in travel expenses due to COVID-19[80](index=80&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) - As of December 31, 2020, the company maintained a strong liquidity position with **$54.4 million** in cash, cash equivalents, and investments, with no long-term debt[86](index=86&type=chunk) - Net cash provided by operating activities was **$2.7 million** for the quarter, a significant improvement from a **$0.1 million use of cash** in the prior-year period, driven by higher net income and favorable working capital changes[89](index=89&type=chunk)[90](index=90&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=18&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company determined this section is not applicable for the current reporting period - The company reports no applicable quantitative and qualitative disclosures regarding market risk[99](index=99&type=chunk) [Controls and Procedures](index=19&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[101](index=101&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended December 31, 2020[102](index=102&type=chunk) Part II [Legal Proceedings](index=19&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no pending legal proceedings expected to have a material adverse effect on its financial position or operations - No pending legal proceedings against the company are expected to have a material adverse effect[103](index=103&type=chunk) [Risk Factors](index=19&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[104](index=104&type=chunk) [Issuer Purchases of Equity Securities](index=20&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the quarter, the company repurchased **469 shares** at an average price of **$23.34 per share** for tax payments related to restricted stock vesting, not under a public plan Share Repurchases (Q1 2021) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | October 2020 | 0 | N/A | | November 2020 | 469 | $23.34 | | December 2020 | 0 | N/A | - The **469 shares** repurchased during the quarter were for tax payments upon vesting of restricted stock issued to employees[107](index=107&type=chunk) [Other Disclosures (Items 3, 4, 5, 6)](index=20&type=section&id=Other%20Disclosures) The company reported no defaults on senior securities, no mine safety disclosures, and no other material information under Item 5, with a list of exhibits provided - The company reports 'None' for Defaults Upon Senior Securities (Item 3) and 'Not applicable' for Mine Safety Disclosures (Item 4) and Other Information (Item 5)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)

FieldReport / Fiscal Q1 2021 Earnings Call / January 28, 2021 NASDAQ:CLFD The Industry Leader in Craft Friendly Fiber Optic Management and Connectivity Solutions Fiscal Q1 2021 Earnings Call FieldReport FieldReport / Fiscal Q1 2021 Earnings Call / January 28, 2021 NASDAQ:CLFD Important Cautions Regarding Forward-Looking Statements Forward-looking statements contained herein and in any related presentation or in the related FieldReport are made pursuant to the safe harbor provisions of the Private Litigation ...

Financial Data and Key Metrics Changes - Clearfield reported Q1 2021 revenue of $27.1 million, a 40% increase from $19.4 million in Q1 2020, marking the highest revenue for any fiscal first quarter in the company's history [4][21] - Gross profit reached a record $11.4 million, representing 42% of total revenue, up from 39.9% in the same period last year [10][22] - Net income for Q1 2021 was $3.2 million, or $0.23 per diluted share, significantly improved from $0.5 million, or $0.04 per diluted share, in Q1 2020 [12][24] Business Line Data and Key Metrics Changes - Community broadband revenue was $19.8 million, up 71% year-over-year, and accounted for a significant portion of total revenue [15] - The MSO market contributed $3 million in revenue, reflecting a 30% year-over-year increase [16] - National Carrier market revenue decreased 12% year-over-year to $2.7 million, while international market revenue fell 8% year-over-year [17][18] Market Data and Key Metrics Changes - The community broadband market generated $67.2 million in revenue for the trailing 12 months, a 29% increase from the previous year [15] - The international market saw a 34% decline in revenue for the trailing 12 months, although Canadian markets showed strong recovery [18] - Legacy markets experienced a 58% year-over-year decline in Q1 [19] Company Strategy and Development Direction - Clearfield's strategy focuses on expanding its presence in community broadband, particularly targeting underserved areas through partnerships with electrical co-ops and municipalities [32] - The company aims to leverage the RDOF program to connect approximately 540,000 homes annually, enhancing its market position [35] - The operational excellence initiative includes investments in manufacturing and supply chain to improve competitiveness and reduce costs [38] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for fiber-fed broadband is expected to continue throughout fiscal 2021 and beyond, despite ongoing COVID-19 volatility [41] - The company anticipates a slight decline in revenue for Q2 due to traditional seasonality but remains optimistic about long-term growth opportunities [42] - Increased visibility into business needs has been observed, with strong demand in community broadband projects [44] Other Important Information - Clearfield's operations in both the US and Mexico are functioning close to normal, adhering to safety guidelines during the pandemic [26][28] - The company has achieved significant operational efficiencies, particularly in its Mexico facilities, which are integral to its growth strategy [38] Q&A Session Summary Question: Can you comment on the linearity of bookings in the December quarter? - Management indicated that bookings were consistent throughout the quarter, supported by mild winter conditions and ongoing demand [43] Question: Any change in visibility over the past three months? - Management noted increased visibility into business needs, with communication service providers planning more long-term, although concerns about labor availability persist [44] Question: What is the outlook for gross margin expansion this fiscal year? - Management expressed that the current gross margin of 42% is a strong target, primarily driven by community broadband's performance [46] Question: Can you discuss the sequential decline in backlog? - Management explained that the decline is seasonal, as service providers typically delay placing orders until their budgets are approved [50] Question: What are the expectations for the RDOF process and its timing? - Management anticipates beginning to see revenue from RDOF projects around July and August, with a focus on organic market needs [53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended September 30, 2020. ☐ 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 of incorp ...