Cadre Holdings, Inc. (NYSE:CDRE) Q2 2024 Earnings Conference Call August 12, 2024 11:00 AM ET Company Participants Matthew Berkowitz - IGB Group Warren Kanders - Chairman & CEO Brad Williams - President Blaine Browers - CFO Conference Call Participants Lawrence Solow - CJS Securities Jeffrey Van Sinderen - B. Riley Securities Matthew Koranda - ROTH Capital Jordan Lyonnais - Bank of America Mark Smith - Lake Street Bert Subin - Stifel Operator Good morning, and welcome to the Cadre Holdings Second Quarter 20 ...

Cadre Holdings, Inc. (CDRE) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.81%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.18, delivering a surprise of -28%. Over the last four quarters, the com ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2024 or ☐ 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: 001-40698 CADRE HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 38-387314 ...

Exhibit 99.1 Cadre Holdings Reports Second Quarter 2024 Financial Results Grew Quarterly Net Sales 19% and Net Income 14% Year-Over-Year Increased Quarterly Adjusted EBITDA of $28.3 Million and Adjusted EBITDA Margin of 19.6% JACKSONVILLE, Fla., August 9, 2024 – Cadre Holdings, Inc. (NYSE: CDRE) ("Cadre" or "Company"), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today it ...

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Table of Contents Item 1. Legal Proceedings 38 Item 1A. Risk Factors 38 Item 5. Other Information 38 Item 6. Exhibits 38 Signature Page 39 Table of Contents ● the availability of capital to satisfy our working capital requirements; ● the success of competing products by others that are or become available in the market in which we sell our products; ● our ability to maintain or broaden our business relationships and develop new relationships with strategic alliances, suppliers, customers, distributors or ot ...

Cadre Holdings, Inc. (NYSE:CDRE) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Matt Berkowitz - IGB Group Warren Kanders - Chairman & Chief Executive Officer Brad Williams - President Blaine Browers - Chief Financial Officer Conference Call Participants Jeff Van Sinderen - B. Riley Matt Koranda - ROTH MKM Mark Smith - Lake Street Operator Good afternoon, and welcome to the Cadre Holdings First Quarter 2024 Conference Call. Today's call is being recorded. All lines have been pl ...

FORWARD-LOOKING STATEMENTS TODAY'S PRESENTERS President AGENDA • Full Year Outlook FIRST QUARTER 2024 2 2 WARREN KANDERS Chief Executive Officer and Chairman of the Board 4 • Business Overview • Conclusion and Q&A 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 Re ...

Cadre Holdings, Inc. (CDRE) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -28%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.29, delivering a surprise of 61.11%.Over the last four quarters, the compa ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) This section summarizes Cadre Holdings' record Q1 2024 performance, driven by strong sales growth, improved profitability, and strategic acquisitions [Q1 2024 Performance Summary](index=1&type=section&id=Q1%202024%20Performance%20Summary) Cadre Holdings reported record first-quarter net sales of $137.9 million, a 23% year-over-year increase, and a gross profit of $57.6 million, with Adjusted EBITDA growing to $24.5 million and an improved margin of 17.8% Q1 2024 Financial Metrics | Financial Metric | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | | Net Sales | $137.9 million | +23.5% | | Gross Profit | $57.6 million | +23.6% | | Gross Profit Margin | 41.8% | +10 bps | | Net Income | $6.9 million | -1.0% | | Adjusted EBITDA | $24.5 million | +31.7% | | Adjusted EBITDA Margin | 17.8% | +120 bps | - CEO Warren Kanders highlighted the effectiveness of the operating model, citing the **23% net sales growth** and **120 basis point improvement in Adjusted EBITDA margin** year-over-year[7](index=7&type=chunk) - The company completed the strategic acquisitions of ICOR Technology and Alpha Safety, expanding its platform into EOD robots and nuclear safety solutions[12](index=12&type=chunk)[16](index=16&type=chunk)[33](index=33&type=chunk) - Cadre reaffirmed its full-year 2024 guidance, signaling confidence in continued demand for its mission-critical safety equipment[15](index=15&type=chunk)[19](index=19&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth review of Q1 2024 financial performance, segment results, and changes in financial position and cash flow [Q1 2024 Financial Performance](index=1&type=section&id=Q1%202024%20Financial%20Performance) In Q1 2024, net sales rose 23.5% to $137.9 million, driven by acquisitions and organic demand, while net income slightly declined to $6.9 million due to higher SG&A expenses [Revenue and Profitability](index=1&type=section&id=Revenue%20and%20Profitability) Net sales growth was primarily attributed to recent acquisitions and increased demand, with gross profit margin remaining steady at 41.8% and Adjusted EBITDA margin improving to 17.8% Q1 2024 vs Q1 2023 Key Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $137.9M | $111.7M | | Gross Profit | $57.6M | $46.6M | | Net Income | $6.9M | $7.0M | | Adjusted EBITDA | $24.5M | $18.6M | - The primary drivers for the increase in net sales were recent acquisitions, higher demand for armor and EOD products, and increased agency demand for hard goods through the Distribution segment[30](index=30&type=chunk) - Net income decreased slightly due to a rise in SG&A expenses resulting from acquisitions and transaction expenses, which offset the increase in gross profit[31](index=31&type=chunk) - The gross profit margin of **41.8%** was mainly driven by favorable pricing and mix, offset by the amortization of inventory step-up adjustments from acquisitions and inflation[9](index=9&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The Product segment achieved a gross profit margin of 43.0% in Q1 2024, a slight decrease from 43.6% in the prior year, while the Distribution segment's gross profit margin was 23.5% Q1 2024 Segment Performance | Segment | Q1 2024 Net Sales | Q1 2024 Gross Profit | Q1 2024 Gross Margin | | :--- | :--- | :--- | :--- | | Product | $118.8M | $51.0M | 43.0% | | Distribution | $28.2M | $6.6M | 23.5% | - The Product segment's gross margin decreased to **43.0%** from **43.6%** in the prior year period[10](index=10&type=chunk) - The Distribution segment's gross margin decreased to **23.5%** from **24.2%** in the prior year period[32](index=32&type=chunk) [Financial Position & Cash Flow](index=2&type=section&id=Financial%20Position%20%26%20Cash%20Flow) As of March 31, 2024, total debt increased to $215.8 million and net debt rose to $128.8 million, primarily due to acquisitions, while operating cash flow significantly decreased Balance Sheet Highlights | Balance Sheet Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $87.1M | $87.7M | | Total debt | $215.8M | $140.1M | | Net debt | $128.8M | $52.4M | Q1 2024 Cash Flow Activities | Cash Flow Activity (Q1 2024) | Amount | | :--- | :--- | | Net cash provided by operating activities | $2.1M | | Net cash used in investing activities | ($142.6M) | | Net cash provided by financing activities | $139.8M | - The significant increase in debt was primarily to fund business acquisitions, which totaled **$141.3 million** (net of cash acquired) during the quarter[11](index=11&type=chunk)[25](index=25&type=chunk) [Strategic Developments & Outlook](index=1&type=section&id=Strategic%20Developments%20%26%20Outlook) This section covers Cadre Holdings' recent M&A activities, capital allocation decisions, and the company's reaffirmed full-year 2024 financial guidance [Mergers & Acquisitions (M&A)](index=1&type=section&id=Mergers%20%26%20Acquisitions%20%28M%26A%29) During Q1 2024, Cadre completed two key acquisitions, ICOR Technology and Alpha Safety, expanding its platform into EOD robots and nuclear safety solutions, while continuing to seek attractive M&A opportunities - Completed the acquisition of ICOR Technology, a leading manufacturer of EOD and tactical robots, on **January 9, 2024**[16](index=16&type=chunk)[33](index=33&type=chunk) - Completed the accretive acquisition of Alpha Safety, a leading nuclear safety solutions company, on **March 1, 2024**[12](index=12&type=chunk)[16](index=16&type=chunk) - The M&A strategy remains focused on current verticals, including law enforcement, military, and nuclear markets, with a disciplined approach targeting companies with strong margins and market positions[16](index=16&type=chunk) [Capital Allocation and 2024 Outlook](index=2&type=section&id=Capital%20Allocation%20and%202024%20Outlook) Cadre remains committed to shareholder returns, declaring a quarterly cash dividend of $0.0875 per share, and reaffirmed its full-year 2024 outlook for net sales and Adjusted EBITDA - The Board of Directors declared a quarterly cash dividend of **$0.0875 per share**, payable on **May 17, 2024**[15](index=15&type=chunk)[18](index=18&type=chunk) 2024 Full-Year Guidance | 2024 Full-Year Guidance | Range | | :--- | :--- | | Net Sales | $553M - $572M | | Adjusted EBITDA | $104M - $108M | | Capital Expenditures | $8M - $10M | [Financial Statements & Reconciliations](index=3&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents Cadre Holdings' unaudited consolidated financial statements and a detailed reconciliation of GAAP to non-GAAP financial measures [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section includes the unaudited Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Cash Flows, and Segment Information for Q1 2024 and prior periods - Presents the Condensed Consolidated Balance Sheets[23](index=23&type=chunk)[38](index=38&type=chunk) - Presents the Condensed Consolidated Statements of Operations[24](index=24&type=chunk)[39](index=39&type=chunk) - Presents the Condensed Consolidated Statements of Cash Flows[25](index=25&type=chunk)[47](index=47&type=chunk) - Presents Segment Information for Product and Distribution[26](index=26&type=chunk)[40](index=40&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The company provides a detailed reconciliation from GAAP Net Income to non-GAAP Adjusted EBITDA, adjusting for items such as depreciation, amortization, restructuring, and transaction costs Q1 2024 Reconciliation to Adjusted EBITDA | Reconciliation Item (Q1 2024) | Amount (in thousands) | | :--- | :--- | | **Net Income (GAAP)** | **$6,928** | | Depreciation and amortization | $3,942 | | Interest expense | $1,637 | | Provision for income taxes | $1,970 | | **EBITDA** | **$14,477** | | Restructuring and transaction costs | $4,837 | | Other (income) expense, net | $1,444 | | Stock-based compensation expense | $2,067 | | Other Adjustments | $1,663 | | **Adjusted EBITDA (Non-GAAP)** | **$24,488** | - Key adjustments to reconcile Net Income to Adjusted EBITDA include transaction costs related to acquisitions, stock-based compensation, and amortization of inventory step-up[4](index=4&type=chunk)[28](index=28&type=chunk)[44](index=44&type=chunk)