Clearfield, Inc. (NASDAQ:CLFD) Q1 2022 Earnings Conference Call January 27, 2022 5:00 PM ET Company Participants Cheri Beranek - President and CEO Dan Herzog - CFO Conference Call Participants Jaeson Schmidt - Lake Street Capital Markets Ryan Koontz - Needham Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Clearfield's Fiscal First Quarter 2022 Earnings Conference Call. My name is Paul, and I will be your operator this afternoon. Joining us for today's presentation are the com ...

Financial Performance - Net sales for fiscal year 2021 increased 51%, or $47,681,000, to $140,755,000 from $93,075,000 in 2020[155] - Gross profit increased 61%, or $23,264,000, from $37,914,000 in fiscal year 2020 to $61,178,000 in fiscal year 2021, with a gross profit margin of 43.5%[159] - Income from operations for fiscal year 2021 was $25,234,000, up from $8,384,000 in fiscal year 2020[162] - Net income for fiscal year 2021 was $20,327,000, or $1.48 per basic share, compared to $7,293,000, or $0.53 per basic share for fiscal year 2020, representing an increase of 178%[165] Sales and Revenue Sources - Sales to broadband service providers accounted for 98% of net sales in fiscal year 2021, totaling $138,021,000, compared to $89,571,000, or 96%, in fiscal 2020[156] - International sales represented 7% of net sales in fiscal year 2021, up from 4% in fiscal year 2020[155] - The increase in net sales was primarily driven by a $38,920,000 increase in sales to Community Broadband and MSO customers[157] Expenses and Costs - Selling, general and administrative expenses for fiscal year 2021 were $35,944,000, an increase of 22% compared to $29,530,000 in fiscal year 2020[161] - Cost of sales for fiscal year 2021 was $79,578,000, an increase of 44% from $55,160,000 in fiscal year 2020[159] - Income tax expense for fiscal year 2021 was $5,407,000, an increase of $3,545,000 from $1,862,000 in fiscal year 2020, with the tax expense rate rising to 21.0% from 20.3%[164] Cash Flow and Investments - As of September 30, 2021, the company had combined cash and investments of $60,503,000, up from $52,175,000 as of September 30, 2020[166] - Net cash generated from operations for fiscal year 2021 totaled $10,903,000, compared to $6,656,000 for fiscal year 2020, reflecting a significant increase in operational efficiency[169][170] - The company invested $24,809,000 in FDIC-backed certificates of deposit and U.S. Treasuries during fiscal year 2021, resulting in cash used in investing activities of $13,600,000[171] - The net cash used in financing activities for fiscal year 2021 was $536,000, compared to $247,000 for fiscal year 2020, indicating increased financial activity related to employee stock options[174][175] Operational Challenges and Future Plans - The company experienced increased material and supply chain transportation costs due to COVID-19, which are expected to continue in fiscal year 2022[159] - The company plans to continue investing in information technology and manufacturing equipment, including expansion into a new 318,000 square foot leased facility[171] - The company intends to utilize available cash and assets for organic growth and potential strategic transactions, including a share repurchase program[167] Financial Health - The company had no long-term debt obligations as of September 30, 2021, maintaining a strong liquidity position[166] - Days sales outstanding increased from 38 to 39 days from September 30, 2020, to September 30, 2021, indicating a slight delay in receivables collection[169]

Clearfield, Inc. (NASDAQ:CLFD) Q4 2021 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Cheri Beranek - Chief Executive Officer Dan Herzog - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Operator Good afternoon. Welcome to Clearfield's fiscal fourth quarter and full year 2021 earnings conference call. I will be your operator this afternoon. Joining us for today's presentation are the company's president and CEO, Cheri Beranek, and CFO, Dan Herzog. ...

November 4, 2021 Fiscal Q4 & 2021 Earnings Call FieldReport expected future demand, and trends in and growth of the FTTx markets, market segments or customer 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 identi ...

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 ...