JACKSONVILLE, Fla.--(BUSINESS WIRE)--Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a global leader in the manufacturing and distribution of safety and survivability equipment for first responders, today announced that its Board of Directors has declared a quarterly cash dividend of $0.0875 per share, or $0.35 per share on an annualized basis, on the Company’s common stock. On an annualized basis the newly declared cash dividend represents an increase of 3 cents, or 9%, over the previous annu ...

Financial Data and Key Metrics Changes - For Q3 2023, the company reported a 12.1% increase in revenues, with gross profit rising by 22.7% and adjusted EBITDA margins reaching a record 19% [29][38] - Year-to-date results showed revenues up 7.1%, gross profit up 18.7%, and adjusted EBITDA up 22.1%, with adjusted EBITDA margin increasing from 16% to 18.2% [29][38] - The net income for Q3 was $11.1 million, or $0.29 per share, reflecting a nearly 125% growth compared to Q3 of the previous year [38] Business Line Data and Key Metrics Changes - The company experienced a 5% growth in duty gear sales, driven by new product launches, including the INCOG X holster, which won an award [20][99] - Tactical soft armor sales increased by 47% in the first three quarters of 2023 compared to the same period last year, attributed to the success of the HyperX product line [21] Market Data and Key Metrics Changes - The company maintained a strong orders backlog of $126.2 million as of September 30, 2023, an increase of $8.3 million since the start of the year [18] - The geopolitical landscape, particularly the ongoing conflict in Ukraine, is expected to create future demand for the company's products, especially in EOD tools and equipment [19] Company Strategy and Development Direction - The company is focused on executing its M&A strategy, with a recent letter of intent signed for a business that aligns with its growth criteria, targeting high-margin opportunities [30][39] - The management emphasized the importance of maintaining financial flexibility, with net debt reduced to $74 million, representing a net leverage of 0.8 times [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging geopolitical environment, stating that demand for mission-critical equipment is expected to rise [14][19] - The company raised its full-year adjusted EBITDA guidance, anticipating 10% annual growth compared to an initial forecast of 4% [27] Other Important Information - The company declared its ninth consecutive quarterly dividend of $0.08, reflecting its commitment to returning capital to shareholders [33] - The "Safe Club," recognizing first responders who survived life-threatening situations using the company's products, has grown to 2,177 saves [32] Q&A Session Summary Question: Can you comment on the international markets and the recent contract won? - The large international contract referenced was for gun control products outside the US, with some orders related to Ukraine, but not material at this point [40] Question: What are the strategic uses of excess cash on the balance sheet? - The company is focused on reinvesting cash into transactions that meet its ROI criteria, targeting businesses with low CapEx and high margins [41][54] Question: Can you provide insights on the demining suit pricing compared to the full EOD suit? - The demining suit is generally priced below $5,000, while the full EOD suit is around $30,000, with the demining market being higher volume but lower margin [60] Question: What are the growth drivers for Q3 and how do they impact the guidance for Q4? - The growth was primarily driven by volume, with significant contributions from a large international order and increased demand for armor products [69] Question: How is the company positioned for M&A in the current market? - The management is optimistic about M&A opportunities, focusing on businesses that can benefit from the company's operating model and have strong margins [88][94]

The Company follows the guidance of Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This guidance also establishes the following three-level hierarchy based upon the transparency of inputs to the valuation of an asset or liability on the measurement date: Level 1: Observable inputs that reflect unadjusted quoted prices for identical a ...

FORWARD-LOOKING STATEMENTS 2 2 BRAD WILLIAMS President 3 • Q2 Highlights • Financial Summary • Conclusion and Q&A | --- | --- | --- | --- | |-----------------------------------|-------|-----------------------------------------------------------------------------------------------------------------------|-------| | CONTINUED EXECUTION IN Q2 | | | | | | | Cadre continues to deliver on strategic objectives, generating record quarterly adj. EBITDA and achieving significant | | | margin expansion | | Commentary: ...

16 CADRE HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) (in thousands, except share and per share amounts) Goodwill | --- | --- | --- | --- | --- | |------------------------------------------------|---------------------|-------|------------------------|-----------------| | Balance, December 31, 2022 | Product \n$78,960 | $ | Distribution \n2,616 | Total \n$81,576 | | Measurement period adjustments | (593) | | — | (593) | | Foreign currency translation adjustments | 309 | | ...

Financial Data and Key Metrics Changes - Revenues increased by 7.7%, gross margin improved by 320 basis points, gross profit rose by 16%, and adjusted EBITDA grew by 30.8% [13][16][31] - Net cash provided by operating activities surged by 42.7% [13][21] - Net income for Q1 was $7 million, showing year-over-year and sequential growth [21] Business Line Data and Key Metrics Changes - The Consumer segment continues to see stable demand, with a strong orders backlog growing by $19.1 million since the start of the year, driven by recent acquisitions and high demand for EOD, Armor, and crowd control products [9][27] - The introduction of new products is being monitored, with early refresh cycles showing positive results [7] Market Data and Key Metrics Changes - Police budgets remain healthy, with increased spending per officer, which is expected to drive further investments in public safety [29] - The ongoing war in Ukraine is not anticipated to create additional opportunities until the conflict de-escalates [29] Company Strategy and Development Direction - The company maintains a robust M&A pipeline and is focused on strategic acquisitions that expand product offerings and geographic footprint while ensuring high margins and strong cash flows [20][24] - The company is committed to returning capital to shareholders, having declared its seventh consecutive quarterly dividend of $0.08 per share [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and highlighted the importance of mission-critical safety equipment [14][25] - The company expects another record year in 2023, reaffirming guidance for approximately 4% annual growth in both net sales and adjusted EBITDA [31][34] Other Important Information - The company is actively managing workforce challenges, particularly in Mexico, related to near-shoring and minimum wage increases [9] - The capital structure remains conservative, with net debt at $97.9 million and a net leverage of 1.2 times adjusted EBITDA [32] Q&A Session Summary Question: What are the holdups around M&A deals? - Management indicated that higher interest rates have increased the cost of capital, affecting pricing and slowing down sellers' responses [36][49] Question: Any updates on international opportunities? - Management noted upcoming larger tenders in body armor and holster categories, indicating continued activity in international markets [53] Question: Can you discuss pricing actions in Q1? - The company exceeded pricing growth targets, with no specific product standing out, but overall pricing remains consistent amid inflation challenges [54] Question: What is the outlook for Q2 revenue? - Revenue is expected to be flat compared to Q1, with gross margin rates anticipated to be slightly lower but still above last year [58] Question: How does the profitability profile of international business compare to the U.S.? - International business tends to have a lighter SG&A load compared to the U.S., which requires more outreach to numerous smaller agencies [79][89]

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Cadre Holdings, Inc. (NYSE:CDRE) Q4 2022 Earnings Conference Call March 15, 2023 5:00 PM ET Company Participants Matt Berkowitz - Investor Relations Warren Kanders - Chairman and Chief Executive Officer Brad Williams - President Blaine Browers - Chief Financial Officer Conference Call Participants Scott Forbes - Jefferies Jeff Van Sinderen - B. Riley Matt Koranda - ROTH Capital Mark Smith - Lake Street Capital Markets Bert Subin - Stifel Operator Good afternoon and welcome to the Cadre Holdings Fourth Quart ...

FOURTH QUARTER 2022 Except for historical information, certain matters discussed in this presentation may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors ...

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