Cadre (US:CDRE)2025-11-04 21:15Financial Performance - Quarterly net sales increased by 42% year-over-year to $155.9 million, and net sales for the nine months ended September 30, 2025, reached $443.1 million, up from $391.6 million in the prior year[3][4][5] - Gross profit for the third quarter was $66.6 million, representing a gross profit margin of 42.7%, compared to 36.6% in the same quarter last year[6][7] - Adjusted EBITDA for the third quarter was $29.8 million, with an Adjusted EBITDA margin of 19.1%, an increase of 670 basis points year-over-year[10][11] - Net income for the third quarter was $10.9 million, or $0.27 per diluted share, compared to $3.7 million, or $0.09 per diluted share, in the same quarter last year[8][5] - Operating income for the nine months ended September 30, 2025, was $46.9 million, compared to $37.4 million for the same period in 2024, reflecting a 25.5% increase[27] - Net income for the nine months ended September 30, 2025, was $32.4 million, a 40% increase from $23.2 million in 2024[28] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $66,335,000, with an adjusted EBITDA margin of 19.1% for the three months ended September 30, 2025[31] - The EBITDA for the last twelve months was reported at $96,420,000, showcasing strong operational performance[31] Cash and Debt Management - Cash and cash equivalents increased by $25.9 million to $150.9 million as of September 30, 2025, while total debt rose by $88.0 million to $311.2 million[16] - Cash and cash equivalents increased to $150.9 million as of September 30, 2025, from $124.9 million at the end of 2024[28] - Total assets grew to $792.1 million as of September 30, 2025, compared to $652.7 million at the end of 2024, marking a 21.4% increase[26] - Total liabilities increased to $451.7 million as of September 30, 2025, from $341.2 million at the end of 2024, representing a 32.5% rise[26] Business Developments - The company announced an agreement to acquire TYR Tactical for $175 million, expected to close in the first half of 2026, which produced approximately $92.6 million in revenue in 2024[14] - Med-Eng, a subsidiary, was awarded a $50 million contract by the Department of Defense, with the first purchase order of $10 million to be shipped in 2026[15] - Organic backlog increased by $20 million from Q2 to Q3 2025, indicating strong demand and growth potential[1] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, totaled $140.1 million, up from $118.9 million in 2024, reflecting a 17.5% increase[27] - The company incurred $89.6 million in business acquisitions during the nine months ended September 30, 2025[28] - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $16,420,000, and interest expense, net, was $7,822,000 for the same period[31] - Restructuring and transaction costs amounted to $7,757,000 for the year ended December 31, 2024, reflecting significant transaction-related expenses[31] - Stock-based compensation expense was $8,369,000 for the year ended December 31, 2024, indicating a substantial investment in employee incentives[31] - The company incurred contingent consideration expenses of $1,185,000 related to the acquisition of ICOR[31] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.095 per share, with an annualized basis of $0.38 per share[17] Currency and Other Expenses - Other net expenses included a loss of $1,555,000 for the three months ended September 30, 2025, primarily due to foreign currency fluctuations[31] - The company reported a net provision for income taxes of $18,085,000 for the year ended December 31, 2024[31]