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]

Financial Performance - Net sales for Q1 2025 were $130.1 million, compared to $137.9 million in Q1 2024[33] - Gross margin improved to 43.1% in Q1 2025, a 130 bps increase year-over-year[33] - Net income for Q1 2025 was $9.2 million, or $0.23 per diluted share, compared to $6.9 million, or $0.18 per diluted share in Q1 2024[33] - Adjusted EBITDA for Q1 2025 was $20.5 million, with an adjusted EBITDA margin of 15.8%[33] Acquisition and Outlook - Completed the acquisition of Carr's Engineering division in April 2025 for £75 million[28] - Carr's Engineering division contributed £51 million in revenue for FY 2024[28] - The company reaffirms its 2025 guidance, projecting net sales between $618 million and $648 million and adjusted EBITDA between $112 million and $122 million[41] - The 2025 guidance assumes approximately $46 million in net sales and $6.5 million in EBITDA from the acquired Engineering Division[41] Strategic Objectives - The company continues to execute its strategic objectives and capitalize on favorable market trends[14] - The company is focused on M&A opportunities[43]

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 ...

Financial Performance - The company reported a net income of $6.1 million for the year ended December 31, 2024, compared to a net loss of $16.1 million in 2023, indicating a turnaround in profitability[326]. - Net income for 2024 was $36,133, a decrease of 6.5% compared to $38,641 in 2023[328]. - Basic earnings per share for 2024 was $0.90, down from $1.03 in 2023, while diluted earnings per share also decreased to $0.90 from $1.02[395]. - The total provision for income taxes for 2024 was $18.1 million, up from $14.3 million in 2023, indicating a year-over-year increase of 26.5%[484]. - The effective tax rate for 2024 was 33.4%, significantly higher than 27.0% in 2023, primarily due to changes in state income taxes and permanent items[484]. Revenue and Sales - Net sales for 2024 reached $567,561, an increase of 17.6% compared to $482,532 in 2023[328]. - Total net sales for the year ended December 31, 2024, reached $567,561, an increase of 17.7% compared to $482,532 in 2023[413]. - Gross profit for 2024 was $233,481, reflecting a gross margin of 41.1%, up from $200,726 in 2023[328]. - The gross profit for 2024 was $233.5 million, compared to $200.7 million in 2023, reflecting a gross margin improvement from 41.6% to 41.1%[502]. Assets and Liabilities - As of December 31, 2024, the company reported total assets of $652.7 million, an increase from $431.2 million in 2023, representing a growth of approximately 51.3%[326]. - Long-term debt increased significantly to $211.8 million in 2024 from $127.8 million in 2023, which is an increase of 65.7%[326]. - The company’s total shareholders' equity increased to $311.5 million in 2024 from $197.2 million in 2023, reflecting a growth of 57.8%[326]. - The company reported a significant increase in intangible assets, which rose to $107.5 million in 2024 from $43.5 million in 2023, representing a growth of 147.5%[326]. - The company's total long-term debt increased to $211,830 as of December 31, 2024, compared to $127,812 in 2023, reflecting a significant rise of 65.6%[428]. Cash Flow and Investments - Cash flows from operating activities were $31,777 in 2024, down from $73,209 in 2023[332]. - The company reported a net cash used in investing activities of $147,426 in 2024, significantly higher than $6,520 in 2023, primarily due to business acquisitions[332]. - Cash and cash equivalents increased to $124.9 million in 2024 from $87.7 million in 2023, reflecting a growth of 42.5%[326]. - Cash and cash equivalents at the end of 2024 totaled $124,933, an increase from $87,691 at the end of 2023[332]. Acquisitions - The company completed the acquisition of ICOR Technology Inc. for total consideration of $41,508, which included $40,350 in cash paid[403]. - The acquisition of Alpha Safety Intermediate, LLC was completed for total consideration of $102,531, with cash paid amounting to $107,138[409]. - The Company entered into a share purchase agreement to acquire Carr's Engineering Limited and Carr's Engineering, Inc. for approximately $91.5 million[503]. - The acquisition targets provide engineering solutions, including manufacturing and technical services[503]. Debt and Financing - The company has $225.0 million in outstanding floating rate debt, with an interest rate of 4.38% plus 1.75% as of December 31, 2024[310]. - The Company entered into an Incremental Facility Amendment to the 2021 Credit Agreement for an incremental term loan of $80,000 to fund the acquisition of Alpha Safety on March 1, 2024[432]. - The term loan outstanding principal balance was $225,000, with an interest rate of 6.13%[443]. - The Company recorded a loss on debt modification of $139 for the year ended December 31, 2024, in connection with the refinancing[440]. Shareholder Information - The company declared dividends of $0.0875 per share in 2024, totaling $13.948 million, compared to $12.006 million in 2023, representing an increase of approximately 16.2%[334]. - The Company completed a secondary offering on March 19, 2024, issuing 2,200,000 shares at $35.00 per share, resulting in net proceeds of $72,813 after expenses[460]. Research and Development - Total research and development costs for the year ended December 31, 2024, were $8,380 million, compared to $6,954 million in 2023 and $7,086 million in 2022, indicating a year-over-year increase of approximately 20.4% from 2023 to 2024[379]. Operational Metrics - The company operates 20 manufacturing plants across multiple countries, including the U.S., Mexico, Canada, the UK, Italy, France, and Lithuania, enhancing its global distribution capabilities[337]. - The Company established a warranty reserve at the time of sale to cover estimated costs based on historical warranty repairs and replacements[372]. - The ending accrued warranty expense increased to $1,760 million in 2024 from $1,610 million in 2023, reflecting a rise of approximately 9.3%[373].

Financial Performance - Cadre achieved annual net sales of $568 million for 2024, with a gross margin of 41.1% and net income of $36 million[1][4][5]. - For Q4 2024, net sales were $176 million, up from $124.6 million in Q4 2023, driven by recent acquisitions and strong demand for Armor and Duty Gear[3][4]. - Adjusted EBITDA for 2024 was $104.8 million, with an adjusted EBITDA margin of 18.5%, compared to $85.8 million and 17.8% in the prior year[10][11]. - The company expects full-year 2025 net sales to range from $572 million to $601 million and adjusted EBITDA between $105 million and $115 million[19]. - Cadre's gross profit margin for Q4 2024 was 43.9%, compared to 39.9% in Q4 2023, reflecting higher shipment volumes[7][10]. - Cadre's gross profit for the year was $233.5 million, up from $200.7 million in 2023, driven by increased sales and favorable pricing[6][9]. - Net sales for Q4 2024 reached $175,984, a 41% increase from $124,583 in Q4 2023[28]. - Gross profit for the year ended December 31, 2024, was $233,481, up 16.3% from $200,726 in 2023[28]. - The company reported a net income of $36,133 for the year 2024, a decrease of 6.5% from $38,641 in 2023[29]. - Basic net income per share for 2024 was $0.90, down from $1.03 in 2023[28]. - Net income for Q4 2024 was $12,983,000, an increase of 35.5% compared to $9,594,000 in Q4 2023[32]. - EBITDA for Q4 2024 reached $29,002,000, up 74.8% from $16,570,000 in Q4 2023[32]. - Adjusted EBITDA for the year ended December 31, 2024 was $104,840,000, representing a 22.1% increase from $85,818,000 in 2023[32]. - Adjusted EBITDA margin improved to 21.9% in Q4 2024, compared to 16.6% in Q4 2023[32]. Cash Flow and Assets - Cash and cash equivalents increased by $37.2 million to $124.9 million as of December 31, 2024, while total debt rose to $223.2 million[15][16]. - Cash and cash equivalents at the end of 2024 were $124,933, up 42.5% from $87,691 in 2023[29]. - Total current assets increased to $327,571 in 2024, compared to $245,843 in 2023, reflecting a 33.2% growth[27]. Debt and Liabilities - Long-term debt increased significantly to $211,830 in 2024, compared to $127,812 in 2023, marking a 65.7% rise[27]. - The company’s total liabilities rose to $341,198 in 2024, up from $234,017 in 2023, indicating a 45.8% increase[27]. Investments and Acquisitions - The company announced the acquisition of Carr's Engineering Division for an enterprise value of £75 million, enhancing its nuclear safety business and international presence[17]. - The company invested $141,813 in business acquisitions during 2024, significantly impacting cash flows from investing activities[29]. - The company incurred a contingent consideration expense of $1,185,000 related to the acquisition of ICOR for the year ended December 31, 2024[32]. Expenses - Interest expense for Q4 2024 was $2,191,000, significantly higher than $804,000 in Q4 2023[32]. - Provision for income taxes in Q4 2024 was $9,733,000, compared to $2,820,000 in Q4 2023, indicating a substantial increase[32]. - Restructuring and transaction costs for the year ended December 31, 2024 totaled $7,757,000, up from $3,192,000 in 2023[32]. - Stock-based compensation expense for the year ended December 31, 2024 was $8,369,000, down from $9,368,000 in 2023[32]. - The company reported a depreciation and amortization expense of $16,420,000 for the year ended December 31, 2024, compared to $15,737,000 in 2023[32]. Dividends - A quarterly cash dividend of $0.095 per share was declared, representing an 8.6% increase over the previous annualized dividend[18]. Strategic Focus - The company is focused on expanding its market presence through both organic growth and strategic acquisitions[2][17].

Group 1 - Cadre Holdings, Inc. (CDRE) is part of the Industrial Products sector, which consists of 201 individual stocks and holds a Zacks Sector Rank of 11 [2] - The Zacks Rank system highlights stocks with strong earnings estimates and revisions, with Cadre Holdings currently holding a Zacks Rank of 2 (Buy) [3] - Over the past three months, the Zacks Consensus Estimate for CDRE's full-year earnings has increased by 3.3%, indicating improved analyst sentiment and a stronger earnings outlook [3] Group 2 - Year-to-date, Cadre Holdings has gained approximately 3.3%, while the average return for the Industrial Products sector is -0.9%, demonstrating that CDRE is outperforming its peers [4] - Insteel Industries (IIIN), another stock in the Industrial Products sector, has a year-to-date return of 7% and a Zacks Rank of 1 (Strong Buy) [4][5] - Cadre Holdings is part of the Security and Safety Services industry, which includes 18 companies and currently ranks 75 in the Zacks Industry Rank, with an average loss of 1% this year [5] Group 3 - Insteel Industries belongs to the Wire and Cable Products industry, which has three stocks and is currently ranked 183, with a year-to-date decline of 9.7% [6] - Investors interested in Industrial Products stocks should monitor both Cadre Holdings and Insteel Industries for potential continued strong performance [6]