Cadre (CDRE) - 2024 Q4 - Annual Report

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$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$482,532 in 2023[328]. - Total net sales for the year ended December 31, 2024, reached $567,561, an increase of 17.7$482,532 in 2023[413]. - Gross profit for 2024 was $233,481, reflecting a gross margin of 41.1$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$1,760 million in 2024 from $1,610 million in 2023, reflecting a rise of approximately 9.3%[373].