Cadre (CDRE) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants Matthew Berkowitz - Managing DirectorWarren Kanders - Chairman and CEOBrad Williams - PresidentBlaine Browers - CFOGreg Konrad - SVP-Equity Research Conference Call Participants Mark Smith - Senior Research AnalystJeff Van Sinderen - Senior AnalystLarry Solow - Partner & Managing director - Equity AnalystMatthew Koranda - MD & Senior Research Analyst Operator Good morning, and welcome to Cagery Holdings First Quarter twenty twe ...

Cadre (CDRE) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants Matthew Berkowitz - Managing DirectorWarren Kanders - Chairman and CEOBrad Williams - PresidentBlaine Browers - CFOGreg Konrad - SVP-Equity Research Conference Call Participants Mark Smith - Senior Research AnalystJeff Van Sinderen - Senior AnalystLarry Solow - Partner & Managing director - Equity AnalystMatthew Koranda - MD & Senior Research Analyst Operator Good morning, and welcome to Cagery Holdings First Quarter twenty twe ...

Financial Data and Key Metrics Changes - Q1 net sales reached $130.1 million, with adjusted EBITDA of $20.5 million, both exceeding expectations [23] - Gross margin improved by 130 basis points year-over-year, driven by favorable pricing and prior year inventory step-up amortization [24][70] - The company expects full-year revenue growth of 11% to 11.5% and adjusted EBITDA growth of 11% to 11.5% at the midpoints [26] Business Line Data and Key Metrics Changes - Orders backlog increased by $22.4 million during the quarter, primarily driven by EOD and Silume demand [13] - The armor business generated more revenue than expected in Q1, contributing positively to overall results [72] - EOD space was noted to be light in Q1, with limited bomb suit opportunities impacting revenue [70] Market Data and Key Metrics Changes - The law enforcement market is expected to continue positive spending trends, supported by bipartisan support for public safety [15] - The nuclear market is anticipated to grow at a rate of 4% to 6% over time, with strong demand driven by national security and environmental safety initiatives [62] Company Strategy and Development Direction - The company aims to evolve into a multi-vertical provider of engineered mission-critical safety products, with a focus on nuclear and law enforcement sectors [4][5] - The recent acquisition of the engineering division from KARS is seen as a critical step in expanding the nuclear vertical and enhancing international presence [5][22] - The company maintains a robust M&A pipeline across all current verticals, indicating a strategic focus on both organic and inorganic growth opportunities [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term outlook despite current economic uncertainties, highlighting resilience as a key differentiator [7] - The company is proactively strategizing to mitigate potential tariff impacts and is optimistic about offsetting any pressure generated by existing tariffs [28][91] - Management noted that the second half of the year is expected to be stronger than the first half, driven by armor and EOD project timing [29] Other Important Information - The company increased its dividend by 9% this year, marking the fourteenth consecutive increase, reflecting confidence in business strength [14] - The engineering division acquisition is expected to enhance capabilities in remote handling and robotics, positioning the company favorably in the nuclear market [22] Q&A Session Summary Question: Pricing commentary and contribution to the rest of the year - Management indicated that normal pricing adjustments were made at the start of the year, with expectations to fully offset tariffs moving forward [34][35] Question: Revenue synergy opportunities from the engineering acquisition - The acquisition is expected to enhance geographic expansion and customer relationships, particularly in the UK and Japan [36] Question: Timing and flow of business for the rest of the year - Management expects Q2 to be up from Q1, with Q4 anticipated to be the strongest quarter of the year [41] Question: Tariff mitigation strategies - The company is exploring product line shifts and productivity acceleration to mitigate tariff impacts [44][47] Question: Nuclear market demand and M&A focus - The company has a robust M&A funnel for both nuclear and law enforcement sectors, with consistent demand observed in the nuclear market [55][62] Question: Q1 results and year-over-year drop - The year-over-year drop was attributed to tough comparisons from a strong Q1 last year, particularly in the armor business [68][70] Question: Margin improvements and future opportunities - Management noted that margin improvements were driven by strong execution on pricing and productivity, with expectations for continued growth [74] Question: Cars acquisition and outlook - The company is taking a cautious approach to guidance post-acquisition, maintaining core organic guidance flat while assessing future opportunities [76][78] Question: Production footprint reconsideration - Management expressed satisfaction with the current production footprint and ongoing efforts to mitigate costs in specific regions [93][96]

Company Performance - Cadre Holdings, Inc. reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and up from $0.18 per share a year ago, representing an earnings surprise of 76.92% [1] - The company posted revenues of $130.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.82%, although this is a decline from year-ago revenues of $137.86 million [2] - Over the last four quarters, Cadre Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Shares of Cadre Holdings have declined approximately 7.8% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current Zacks Rank for Cadre Holdings is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $150.57 million, and for the current fiscal year, it is $1.26 on revenues of $608.07 million [7] - The outlook for the Security and Safety Services industry, to which Cadre Holdings belongs, is currently in the bottom 36% of over 250 Zacks industries, which may impact the stock's performance [8]

FIRST QUARTER 2025 FORWARD-LOOKING STATEMENTS Please note that in this presentation we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a numbe ...

Financial Performance - Net sales for Q1 2025 were $130.1 million, a decrease of 5.1% compared to $137.9 million in Q1 2024[20] - Gross profit for Q1 2025 was $56.1 million, resulting in a gross margin of 43.2%, slightly down from 41.7% in Q1 2024[20] - Operating income increased to $13.6 million in Q1 2025, up 13.2% from $12.0 million in Q1 2024[20] - Net income for Q1 2025 was $9.2 million, representing a 33.5% increase from $6.9 million in Q1 2024[20] - Basic net income per share rose to $0.23 in Q1 2025, compared to $0.18 in Q1 2024, reflecting a 27.8% increase[20] - The company reported a comprehensive income of $9.1 million for Q1 2025, compared to $7.3 million in Q1 2024[20] - Adjusted EBITDA for the three months ended March 31, 2025, was $20.5 million, down from $24.5 million in the same period of 2024, representing a decrease of 16.3%[144] - Net income increased by $2.3 million, or 33.5%, to $9.2 million for the three months ended March 31, 2025, primarily due to the non-recurrence of acquisition-related costs incurred in 2024[122][130] Assets and Liabilities - Total current assets increased to $332.5 million as of March 31, 2025, up from $327.6 million at the end of 2024[17] - Total liabilities decreased to $338.7 million as of March 31, 2025, down from $341.2 million at the end of 2024[17] - Cash and cash equivalents at the end of Q1 2025 were $133.4 million, an increase from $124.9 million at the end of 2024[23] - As of March 31, 2025, total shareholders' equity increased to $317,562, up from $311,515 on December 31, 2024, reflecting a growth of approximately 1.7%[24] - Outstanding debt as of March 31, 2025, was $220.5 million, a slight decrease from $223.2 million as of December 31, 2024[149] - As of March 31, 2025, total long-term debt, net of unamortized debt discount and issuance costs, was $209,134,000, a slight decrease from $211,830,000 as of December 31, 2024[73] Cash Flow - Net cash provided by operating activities was $17.4 million in Q1 2025, significantly higher than $2.1 million in Q1 2024[23] - Net cash used in investing activities was $1.3 million for the three months ended March 31, 2025, significantly lower than $142.6 million in the same period of 2024, which included acquisitions[171] - The company paid dividends of $3.9 million during the three months ended March 31, 2025[172] Acquisitions and Investments - The company completed the acquisition of ICOR Technology Inc. for a total consideration of $41,508,000, which includes $2,226,000 in contingent consideration[51] - The acquisition of Alpha Safety Intermediate, LLC was completed for a total consideration of $102,531,000, with goodwill recognized at $49,133,000[57] - The Company acquired Carr's Engineering Limited and Carr's Engineering (US), Inc. for approximately $99,750 in April 2025[112] - The Company drew $97,500 of the $115,000 available under the DDTL- A-1 Facility in connection with the acquisition of the Nuclear Engineering Division[114] Segment Performance - Net sales for the Product segment were $112,735 and for the Distribution segment were $27,862 for the three months ended March 31, 2025, totaling $130,106[111] - The Product segment net sales decreased by $6.1 million, or 5.1%, to $112.7 million for the three months ended March 31, 2025, primarily due to decreases in explosive ordnance disposal and armor products[132] - The Distribution segment net sales decreased by $0.3 million, or 1.2%, to $27.9 million for the three months ended March 31, 2025, primarily due to decreased demand for hard goods[132] Expenses and Costs - Cost of goods sold for the Product segment decreased by $5.2 million, or 7.6%, to $62.6 million for the three months ended March 31, 2025[133] - Selling, general and administrative expenses increased by $1.0 million, or 2.5%, for the three months ended March 31, 2025, primarily due to recent acquisitions[134] - Interest expense increased by $0.6 million, or 36.3%, to $2.2 million for the three months ended March 31, 2025, primarily due to debt refinancing[136] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 26.6%, higher than the statutory rate due to state taxes and non-deductible executive compensation[99] - The effective tax rate for the three months ended March 31, 2025, was 26.6%, compared to 22.1% for the same period in 2024[137] - The company follows U.S. GAAP for financial reporting, ensuring compliance with SEC regulations and maintaining transparency in financial statements[26] Market and Risk Factors - A 10% increase or decrease in the value of the Canadian dollar would have caused reported net sales to increase or decrease by approximately $0.9 million for the three months ended March 31, 2025[190] - A 10% increase or decrease in the value of the Mexican peso would have caused reported net income to increase or decrease by approximately $0.5 million for the same period[190] - There have been no material changes in market risk exposures as of March 31, 2025[182] Internal Controls and Governance - The company's disclosure controls and procedures were deemed effective as of March 31, 2025[191] - No changes in internal control over financial reporting occurred during the three months ended March 31, 2025[192]

[First Quarter 2025 Results Overview](index=1&type=section&id=Cadre%20Holdings%20Reports%20First%20Quarter%202025%20Financial%20Results) Cadre Holdings reports strong Q1 2025 results and raises full-year guidance, driven by strategic acquisitions and improved margins [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Cadre reported Q1 2025 net sales of **$130.1 million** and net income of **$9.2 million**, increasing full-year 2025 guidance for net sales to **$618-$648 million** and Adjusted EBITDA to **$112-$122 million** Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Sales | $130.1 million | | Gross Profit Margin | 43.1% | | Net Income | $9.2 million ($0.23 per share) | | Adjusted EBITDA | $20.5 million | | Adjusted EBITDA Margin | 15.8% | | Quarterly Dividend | $0.095 per share | Updated Full Year 2025 Outlook | Metric | Guidance Range | | :--- | :--- | | Net Sales | $618 - $648 million | | Adjusted EBITDA | $112 - $122 million | | Capital Expenditures | $8 - $10 million | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized strong Q1 gross margin growth and the strategic importance of the Carr's Engineering Division acquisition, highlighting M&A as a key growth driver - Gross margins increased **130 basis points** year-over-year in Q1, demonstrating the team's ability to navigate challenges and drive continuous improvement[2](index=2&type=chunk) - Completed the acquisition of the Engineering Division from Carr's Group to scale the nuclear safety vertical, capitalizing on increasing global demand in energy, defense, and nuclear waste sectors[2](index=2&type=chunk) - M&A remains an essential component of the company's strategy, with an active evaluation of a robust pipeline of potential transactions[2](index=2&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) This section details Cadre's first quarter 2025 operating results, segment performance, and liquidity position [First Quarter 2025 Operating Results](index=1&type=section&id=First%20Quarter%202025%20Operating%20Results) Q1 2025 saw net sales decrease to **$130.1 million** due to shipment timing, yet gross profit margin improved to **43.1%** and net income increased to **$9.2 million** Q1 Operating Results Comparison (YoY, in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $130.1 | $137.9 | -5.7% | | Gross Profit | $56.1 | $57.6 | -2.6% | | Gross Profit Margin | 43.1% | 41.8% | +130 bps | | Net Income | $9.2 | $6.9 | +33.3% | | Adjusted EBITDA | $20.5 | $24.5 | -16.3% | | Adjusted EBITDA Margin | 15.8% | 17.8% | -200 bps | - The decrease in net sales was primarily due to the timing of large order shipments for explosive ordnance disposal (EOD) and armor products, partially offset by acquisitions and higher demand for crowd control products[3](index=3&type=chunk) - The increase in net income was primarily a result of lower acquisition-related costs incurred in Q1 2025 compared to Q1 2024[5](index=5&type=chunk)[20](index=20&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The Product segment's gross profit margin increased to **44.4%** in Q1 2025, while the Distribution segment's margin declined to **21.6%** Segment Gross Profit Margin (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Margin | Q1 2024 Margin | | :--- | :--- | :--- | | Product | 44.4% | 43.0% | | Distribution | 21.6% | 23.5% | [Liquidity, Cash Flows and Capital Allocation](index=2&type=section&id=Liquidity%2C%20Cash%20Flows%20and%20Capital%20Allocation) The company significantly improved its liquidity in Q1 2025, with cash increasing to **$133.4 million** and net cash from operations rising to **$17.4 million** Balance Sheet and Liquidity Changes (Q1 2025, in millions) | Metric | March 31, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $133.4 | $124.9 | +$8.5 | | Total debt | $220.5 | $223.2 | -$2.7 | | Net debt | $87.1 | $98.3 | -$11.2 | - Net cash provided by operating activities significantly increased to **$17.4 million** for the three months ended March 31, 2025, compared to **$2.1 million** for the same period in 2024[21](index=21&type=chunk) - Capital expenditures totaled **$1.4 million** for the first quarter of 2025, remaining relatively flat compared to **$1.3 million** in the prior year period[14](index=14&type=chunk) [Corporate Developments and Outlook](index=2&type=section&id=Corporate%20Developments%20and%20Outlook) This section outlines recent corporate actions, including a key acquisition and dividend declaration, alongside the updated full-year 2025 financial outlook [Acquisition of Carr's Engineering Division](index=2&type=section&id=Acquisition%20of%20Carr%27s%20Engineering%20Division) Cadre completed the acquisition of Carr's Engineering Division for an enterprise value of **£75 million**, expanding its nuclear safety market capabilities with key brands - The acquisition of Carr's Engineering Division was completed on April 22, 2025, for an enterprise value of **£75 million**[9](index=9&type=chunk) - The acquired division includes industry-leading brands such as Wälischmiller GmbH, CarrsMSM, Bendalls Engineering, NW Total Engineered Solutions, and NuVision Engineering, Inc[9](index=9&type=chunk) [Dividend Declaration](index=2&type=section&id=Dividend) The Board declared a quarterly cash dividend of **$0.095 per share**, payable on May 16, 2025 - A quarterly cash dividend of **$0.095 per share** (**$0.38 annualized**) was declared on April 22, 2025[10](index=10&type=chunk) - The dividend is payable on May 16, 2025, to shareholders of record as of May 2, 2025[10](index=10&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=2025%20Outlook) Cadre raised its full-year 2025 guidance, projecting net sales of **$618-$648 million** and Adjusted EBITDA of **$112-$122 million** Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $618M - $648M | | Adjusted EBITDA | $112M - $122M | | Capital Expenditures | $8M - $10M | - The guidance incorporates the estimated impact of the recent acquisition and current tariffs, assuming mitigating actions will help offset potential impacts[11](index=11&type=chunk) - A reconciliation for Adjusted EBITDA guidance to net income guidance is not provided due to the difficulty in forecasting certain expenses and gains[11](index=11&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, cash flows, and non-GAAP reconciliations [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets reached **$656.3 million** and total shareholders' equity increased to **$317.6 million** Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $332,515 | $327,571 | | **Total assets** | **$656,293** | **$652,713** | | Total current liabilities | $93,666 | $94,125 | | **Total liabilities** | **$338,731** | **$341,198** | | **Total shareholders' equity** | **$317,562** | **$311,515** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 net sales were **$130.1 million**, with net income increasing to **$9.2 million** or **$0.23 per diluted share** Consolidated Statement of Operations Summary (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net sales | $130,106 | $137,860 | | Gross profit | $56,131 | $57,628 | | Operating income | $13,552 | $11,979 | | **Net income** | **$9,248** | **$6,928** | | Diluted EPS | $0.23 | $0.18 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash provided by operating activities significantly increased to **$17.4 million** in Q1 2025, contributing to an **$8.5 million** rise in cash and cash equivalents Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,391 | $2,137 | | Net cash used in investing activities | ($1,309) | ($142,636) | | Net cash (used in) provided by financing activities | ($7,812) | $139,786 | | **Change in cash and cash equivalents** | **$8,498** | **($639)** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) Net income of **$9.2 million** for Q1 2025 was reconciled to Adjusted EBITDA of **$20.5 million** through various adjustments Reconciliation of Net Income to Adjusted EBITDA (Q1 2025, in thousands) | Line Item | Q1 2025 | | :--- | :--- | | Net income | $9,248 | | Depreciation and amortization | $3,856 | | Interest expense | $2,231 | | Provision for income taxes | $3,360 | | **EBITDA** | **$18,695** | | Restructuring and transaction costs | $698 | | Other expense (income), net | ($1,287) | | Stock-based compensation expense | $1,968 | | Other adjustments | $454 | | **Adjusted EBITDA** | **$20,497** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides details on the upcoming conference call, the company's use of non-GAAP measures, and forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call) A conference call to discuss financial results is scheduled for May 7, 2025, with a replay available until May 21, 2025 - A conference call to discuss results is scheduled for Wednesday, May 7, 2025, at 10:00 a.m. EST[12](index=12&type=chunk) - A replay of the call will be available through May 21, 2025[13](index=13&type=chunk) [Use of Non-GAAP Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP measures such as EBITDA and Adjusted EBITDA to enhance understanding of its operational performance - The company uses non-GAAP measures such as EBITDA, adjusted EBITDA, and adjusted EBITDA margin to provide useful information for understanding ongoing operations and performance[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section includes forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ materially - The press release contains forward-looking statements that are based on current expectations and are not guarantees of future performance[17](index=17&type=chunk)

Cadre (CDRE) Q4 2024 Earnings Call March 12, 2025 07:47 PM ET Company Participants Matthew Berkowitz - Managing DirectorWarren Kanders - Chairman and CEOBrad Williams - PresidentBlaine Browers - CFOSheila Kahyaoglu - Managing Director Conference Call Participants Larry Solow - Partner & Managing director - Equity AnalystJeff Van Sinderen - Senior AnalystMatthew Koranda - MD & Senior Research AnalystMark Smith - Senior Research Analyst Operator Good morning, and welcome to Cadre Holdings Fourth Quarter of tw ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue, gross margin, adjusted EBITDA, and adjusted EBITDA margin in Q4 2024, with full-year revenue growing by 18% and adjusted EBITDA by 22%, resulting in a year-over-year adjusted EBITDA margin improvement of 70 basis points [7][36][40] - Q4 net sales reached $176 million, net income was $13 million, and adjusted EBITDA was $38.5 million, all-time records for the company [36] Business Line Data and Key Metrics Changes - The company experienced a positive mix in Q4, driven by higher Duty Gear volume, with the orders backlog ending flat compared to the prior year [17] - The acquisition of the Engineering Division from Carr's Group is expected to add scale to the nuclear vertical and expand the addressable market [10][18] Market Data and Key Metrics Changes - The law enforcement market segment continues to show stable growth, with police protection expenditures trending upward [21] - The nuclear safety market is supported by long-term contracts and recurring purchase orders, with significant growth drivers identified in environmental safety, national security, and commercial nuclear energy [22] Company Strategy and Development Direction - The company is focused on mergers and acquisitions as a key strategy, with a robust pipeline of targets in both nuclear and law enforcement sectors [11][35] - The company aims to leverage its strong balance sheet and financial flexibility to pursue organic and inorganic growth opportunities [12][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties in 2025, emphasizing the resilience of its business model and the importance of public safety spending [13][14] - The company anticipates that revenue and adjusted EBITDA will be stronger in the second half of 2025, driven by project timing in EOD, Duty Gear, and Armor [43] Other Important Information - The company raised its quarterly dividend to $0.38 per share, reflecting confidence in its fundamentals [20] - The guidance for 2025 includes net sales expectations between $572 million and $601 million, with adjusted EBITDA guidance of $105 million to $115 million [39] Q&A Session Summary Question: Guidance and Government Spending Impact - Management indicated that the high end of the guidance reflects a 5% organic growth, with no significant long-term reduction in demand anticipated despite government spending uncertainties [50][52] Question: Tariff Impact and Mitigation - The company expects tariffs to impact revenue by $18 million to $22 million annually, primarily from Mexico and Canada, and is actively working on mitigation strategies [41][101] Question: Pricing Strategy - The pricing strategy for 2025 is expected to remain stable, with organic pricing projected around 1.5% to 2% across the portfolio [78] Question: European Defense Market - The company sees growth opportunities in the European defense market, particularly in EOD products related to cleanup activities in conflict zones [88] Question: Q1 Performance Drivers - Q1 is expected to be lighter in revenue due to project timing and a comparison to a record Q1 in the previous year, with typical seasonal trends affecting the Armor business [97][98] Question: Law Enforcement Hiring Trends - Management noted stable hiring trends in law enforcement, with potential long-term tailwinds as economic conditions change [116] Question: Exposure to Federal Agencies - The company has exposure to federal law enforcement agencies but has not seen significant impacts from recent government changes, maintaining optimism for long-term demand [124][126]

FOURTH QUARTER 2024 FORWARD-LOOKING STATEMENTS Please note that in this presentation we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a numb ...