- Revenue For First Fiscal Quarter Grew 89% to Record
$51 Million , Driven by 81% Growth in Community Broadband Revenue Compared to theSame Year-Ago Quarter - Quarter-End Backlog Increased 53% Sequentially to Record
$101 Million at End of First Fiscal Quarter 2022 Compared to$66 Million at End of Fiscal 2021 - 44.9% Gross Profit Margin and Record Gross Profit Dollars Driven by Continued Execution on Operational Effectiveness Initiatives and Favorable Product Mix
- Net Income For First Fiscal Quarter 2022 Totaled a Record
$10.4 Million , or$0.75 per diluted share, an Increase of 228% from$3.2 Million , or$0.23 per diluted share, in First Fiscal Quarter 2021 - Company Increases Fiscal 2022 Net Sales Guidance to Range of
$176 Million to$183 Million , Representing Year-over-Year Growth of 25% to 30% - Company Reinstates Share Repurchase Program, Increasing Authorized Amount.
Fiscal Q1 2022 Financial Summary | |||||||||||
(in millions except per share data and percentages) | Q1 2022 | vs. Q1 2021 | Change | Change (%) | |||||||
$ | 51.1 | $ | 27.1 | $ | 24.0 | 89 | % | ||||
Gross Profit ($) | $ | 23.0 | $ | 11.4 | $ | 11.6 | 102 | % | |||
Gross Profit (%) | 44.9 | % | 42.0 | % | 3.0 | % | 7 | % | |||
Income from Operations | $ | 13.0 | $ | 3.7 | $ | 9.3 | 251 | % | |||
Income Tax Expense | $ | 2.8 | $ | 0.7 | $ | 2.1 | 306 | % | |||
Net Income | $ | 10.4 | $ | 3.2 | $ | 7.2 | 228 | % | |||
Net Income per Diluted Share | $ | 0.75 | $ | 0.23 | $ | 0.52 | 226 | % | |||
Management Commentary
“Clearfield delivered another record-setting financial performance in the fiscal first quarter of 2022, in a market that continues to evolve and grow with each passing quarter.“ said Company President and CEO
“The demand for our craft-friendly products remains high. Our order backlog (defined as purchase orders received but not yet fulfilled) as of
“In order to meet the significant demand for our products, Clearfield is opening a new distribution center in
“Supply constraints remain challenging. To address, we have substantially increased our inventory, to be better able to effectively meet our customers’ current and future needs. We have made significant investments in supply chain initiatives to ensure that we can deliver our product on time to our promised ship dates. Our ability to deliver our products on time to our customers is crucial so that their deployment schedules are maintained and their time to revenue can accelerate.”
“We believe the elevated demand in this market is not a short-term event, and that we are in the middle of a remarkable investment cycle for broadband deployment that will change the way people communicate in the future. Clearfield’s founding vision was to provide the necessary products to build a better broadband network. This vision is who we are as an organization. We have been positioned to provide the products for broadband to underserved communities since the day we started.”
“We remain very optimistic about Clearfield’s growth potential as the demand for high-speed broadband, especially fiber-led broadband, continues to be very robust, and we continue to make meaningful progress on our ‘Now of Age’ plan objectives. With the current visibility we have into our substantial order backlog as well as the pipeline behind it, we expect to deliver projected annual net sales of
Fiscal First Quarter 2022 Financial Results
Net sales for the first quarter of fiscal 2022 increased 89% to
As of
Gross profit for the fiscal first quarter of 2022 increased 102% to
Operating expenses for the fiscal first quarter of 2022 totaled
Income from operations for the first quarter of fiscal 2022 increased 251% to
Income tax expense for the first quarter of fiscal 2022 increased 306% to
Net income for the first quarter of fiscal 2022 totaled
Conference Call
Clearfield management will hold a conference call today,
Clearfield’s President and CEO
International dial-in: 1-201-689-8263
Conference ID: 13726051
The conference call will be webcast live and available for replay here: https://viavid.webcasts.com/starthere.jsp?ei=1522366&tp_key=bbaeda6b73.
Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
A replay of the call will be available after
International replay dial-in: 1-412-317-6671
Replay ID: 13726051
About
Cautionary Statement Regarding Forward-Looking Information
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 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 statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company’s supply chain, the impact of the
Investor Relations Contact:
1-949-574-3860
CLFD@gatewayir.com
STATEMENTS OF EARNINGS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
Three Months Ended | ||||||
2021 | 2020 | |||||
Net sales | $ | 51,109 | $ | 27,092 | ||
Cost of sales | 28,137 | 15,723 | ||||
Gross profit | 22,971 | 11,369 | ||||
Operating expenses | ||||||
Selling, general and | ||||||
administrative | 9,922 | 7,656 | ||||
Income from operations | 13,050 | 3,714 | ||||
Interest income | 120 | 134 | ||||
Income before income taxes | 13,169 | 3,847 | ||||
Income tax expense | 2,780 | 684 | ||||
Net income | $ | 10,389 | $ | 3,163 | ||
Net income per share: | ||||||
Basic | $ | 0.76 | $ | 0.23 | ||
Diluted | $ | 0.75 | $ | 0.23 | ||
Weighted average shares outstanding: | ||||||
Basic | 13,743,503 | 13,692,533 | ||||
Diluted | 13,897,787 | 13,696,815 | ||||
BALANCE SHEETS
(IN THOUSANDS)
(Unaudited) | |||||
2021 | 2021 | ||||
Assets | |||||
Current Assets | |||||
Cash and cash equivalents | $ | 12,682 | $ | 13,216 | |
Short-term investments | 10,373 | 10,374 | |||
Accounts receivable, net | 16,330 | 19,438 | |||
Inventories, net | 43,574 | 27,524 | |||
Other current assets | 1,085 | 954 | |||
Total current assets | 84,044 | 71,506 | |||
Property, plant and equipment, net | 6,574 | 4,998 | |||
Other Assets | |||||
Long-term investments | 35,192 | 36,913 | |||
4,709 | 4,709 | ||||
Intangible assets, net | 4,547 | 4,696 | |||
Right of use lease assets | 1,761 | 2,305 | |||
Deferred tax asset | 365 | 365 | |||
Other | 573 | 419 | |||
Total other assets | 47,147 | 49,407 | |||
Total Assets | $ | 137,765 | $ | 125,911 | |
Liabilities and Shareholders' Equity | |||||
Current Liabilities | |||||
Current portion of lease liability | $ | 702 | $ | 915 | |
Accounts payable | 12,367 | 9,215 | |||
Accrued compensation | 4,137 | 8,729 | |||
Accrued expenses | 4,872 | 1,613 | |||
Total current liabilities | 22,078 | 20,471 | |||
Other Liabilities | |||||
Long-term portion of lease liability | 1,214 | 1,615 | |||
Total Liabilities | 23,292 | 22,087 | |||
Shareholders' Equity | |||||
Common stock | 138 | 137 | |||
Additional paid-in capital | 58,505 | 58,246 | |||
Retained earnings | 55,831 | 45,441 | |||
Total Shareholders' Equity | 114,473 | 103,824 | |||
Total Liabilities and Shareholders' Equity | $ | 137,765 | $ | 125,911 | |
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
Three Months Ended | Three Months Ended | ||||||||
2021 | 2020 | ||||||||
Cash flows from operating activities | |||||||||
Net income | $ | 10,389 | $ | 3,163 | |||||
Adjustments to reconcile net income to cash provided | |||||||||
by (used in) operating activities: | |||||||||
Depreciation and amortization | 639 | 568 | |||||||
Amortization of discount on investments | (11 | ) | - | ||||||
Stock-based compensation expense | 440 | 289 | |||||||
Changes in operating assets and liabilities | |||||||||
Accounts receivable | 3,108 | 699 | |||||||
Inventories, net | (16,049 | ) | 721 | ||||||
Other assets | (300 | ) | 136 | ||||||
Accounts payable and accrued expenses | 1,750 | (2,860 | ) | ||||||
Net cash (used in) provided by operating activities | (34 | ) | 2,717 | ||||||
Cash flows from investing activities: | |||||||||
Purchases of property, plant and equipment and | |||||||||
intangible assets | (2,051 | ) | (379 | ) | |||||
Purchase of investments | (248 | ) | (3,968 | ) | |||||
Proceeds from maturities of investments | 1,980 | 4,426 | |||||||
Net cash (used in) provided by investing activities | (319 | ) | 79 | ||||||
Cash flows from financing activities | |||||||||
Proceeds from issuance of common stock under | 249 | 179 | |||||||
employee stock purchase plan | |||||||||
Tax withholding related to vesting of restricted stock grants | (274 | ) | (11 | ) | |||||
Withholding related to exercise of stock options | (156 | ) | (262 | ) | |||||
Net cash (used in) financing activities | (181 | ) | 168 | ||||||
(Decrease) Increase in cash and cash equivalents | (534 | ) | 2,701 | ||||||
Cash and cash equivalents, beginning of period | 13,216 | 16,450 | |||||||
Cash and cash equivalents, end of period | $ | 12,682 | $ | 19,151 | |||||
Supplemental disclosures for cash flow information | |||||||||
Cash paid during the year for income taxes | $ | - | $ | 17 | |||||
Non-cash financing activities | |||||||||
Cashless exercise of stock options | $ | 93 | $ | 996 | |||||
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