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Cadre (CDRE) - 2024 Q1 - Quarterly Report
2024-05-08 20:16
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 (CDRE) - 2024 Q1 - Earnings Call Transcript
2024-05-08 00:23
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 ...
Cadre (CDRE) - 2024 Q1 - Earnings Call Presentation
2024-05-07 23:27
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) Q1 Earnings Lag Estimates
Zacks Investment Research· 2024-05-07 23:11
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 ...
Cadre (CDRE) - 2024 Q1 - Quarterly Results
2024-05-07 20:15
[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)
Cadre Holdings Announces Pricing of Public Primary and Secondary Offering of Common Stock
Businesswire· 2024-03-14 22:40
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a global leader in the manufacturing and distribution of safety equipment for professionals, today announced the pricing of the public offering of 3,638,127 shares of its common stock, including 2,200,000 shares of common stock offered by the Company and 1,438,127 shares of common stock offered by Kanders SAF, LLC (the “Selling Stockholder”), an entity wholly-owned by Mr. Warren B. Kanders, the Chairman of the ...
Cadre Holdings Announces Launch of Public Primary and Secondary Offering of Common Stock
Businesswire· 2024-03-13 20:15
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a global leader in the manufacturing and distribution of safety equipment for professionals, today announced the commencement of a proposed public offering of 3,475,000 shares of its common stock, of which 2,200,000 shares of common stock will be offered by the Company and 1,275,000 shares of common stock will be offered by Kanders SAF, LLC (the “Selling Stockholder”), an entity wholly-owned by Mr. Warren B. K ...
Here's Why Cadre Holdings, Inc. (CDRE) is a Great Momentum Stock to Buy
Zacks Investment Research· 2024-03-11 17:01
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...
Cadre (CDRE) - 2023 Q4 - Annual Report
2024-03-11 16:00
26 In connection with our general growth strategy of acquiring businesses and assets, we may be forced to writedown or write-off assets, restructure our operations, or incur impairment or other charges that could result in us reporting losses. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we report charges of this nature could contribute to negative market perceptions about us or our common stock. Risks Related to Ownership of our Common Sto ...
Why Cadre Holdings, Inc. (CDRE) Might be Well Poised for a Surge
Zacks Investment Research· 2024-03-08 18:21
Cadre Holdings, Inc. (CDRE) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate rev ...