Cadre (US:CDRE)2025-11-04 21:17Financial Performance - For the three months ended September 30, 2025, net sales increased to $155,869,000, a 42.5% increase from $109,408,000 in the same period of 2024[20] - Gross profit for the nine months ended September 30, 2025, was $187,005,000, representing a 19.6% increase compared to $156,294,000 for the same period in 2024[20] - Operating income for the three months ended September 30, 2025, rose to $18,674,000, up 244.5% from $5,426,000 in the prior year[20] - Net income for the nine months ended September 30, 2025, was $32,400,000, a 40% increase from $23,150,000 in the same period of 2024[20] - The company’s diluted net income per share for the three months ended September 30, 2025, was $0.27, compared to $0.09 for the same period in 2024, reflecting a 200% increase[20] - Net income for the quarter ending June 30, 2025, was reported at $10,941,000, compared to $9,248,000 for the previous quarter, indicating a sequential increase of 18.4%[25] - For the three months ended September 30, 2025, net income was $10,941,000, compared to $3,655,000 for the same period in 2024, representing a significant increase[49] - Adjusted EBITDA for the three months ended September 30, 2025, was $29.8 million, compared to $13.5 million in the same period of 2024, reflecting a significant increase in operational performance[130] Cash and Assets - Cash and cash equivalents increased to $150,875,000 as of September 30, 2025, compared to $124,933,000 at the end of 2024, reflecting a growth of 20.7%[17] - Total assets grew to $792,055,000 as of September 30, 2025, up 21.4% from $652,713,000 at the end of 2024[17] - As of September 30, 2025, total shareholders' equity increased to $340,374,000 from $311,515,000 as of December 31, 2024, reflecting a growth of approximately 9.3%[25] - The company reported a net cash provided by operating activities of $42,455,000 for the nine months ended September 30, 2025, significantly higher than $8,066,000 in the same period of 2024[24] - The company had $150.9 million in cash and cash equivalents at the end of the period on September 30, 2025, compared to $92.9 million at the end of 2024[192] Liabilities and Debt - Total liabilities increased to $451,681,000 as of September 30, 2025, compared to $341,198,000 at the end of 2024, marking a 32.5% rise[17] - Total long-term debt as of September 30, 2025, is $294,971, an increase from $211,830 as of December 31, 2024[78] - Outstanding debt increased to $311.2 million as of September 30, 2025, up from $223.2 million as of December 31, 2024, primarily related to term loan facilities[175] Acquisitions - Business acquisitions for the nine months ended September 30, 2025, totaled $89,590,000, down from $141,813,000 in the same period of 2024[24] - The total consideration for the acquisition of Zircaloy was $89,590,000, net of cash acquired, with total acquisition-related costs amounting to $4,520,000[53] - The company signed a definitive agreement to acquire Tyr Tactical, LLC for a total consideration of $175,000, including $150,000 in cash at closing[121] - The acquisition of ICOR resulted in total consideration of $39,282,000, net of cash acquired, with contingent consideration of $2,226,000 included[56] - The acquisition of Alpha Safety had a total consideration of $102,531, with goodwill of $49,133, indicating anticipated profitability from market expansion[63] Revenue Segments - Net sales for the Product segment for the three months ended September 30, 2025, were $138,789, an increase from $96,493 in the same period of 2024[120] - The Product segment net sales increased by $42.3 million, or 43.8%, to $138.8 million for the three months ended September 30, 2025, primarily due to the Zircaloy acquisition and stronger demand for armor and duty gear products[146] - Distribution segment net sales increased by $8.7 million, or 48.5%, to $26.5 million for the three months ended September 30, 2025, driven by stronger demand for hard goods[146] - Product segment net sales increased by $48.0 million, or 14.0%, from $343.7 million to $391.7 million for the nine months ended September 30, 2025, primarily due to the Zircaloy acquisition and increased demand for duty gear products[155] - Distribution segment net sales increased by $8.3 million, or 11.5%, from $71.6 million to $79.9 million for the nine months ended September 30, 2025, driven by stronger demand for hard goods[155] Expenses - Selling, general and administrative expenses increased by $19.2 million, or 17.0%, for the nine months ended September 30, 2025, primarily due to the Zircaloy acquisition and increased payroll expenses[157] - Interest expense, net increased by $3.2 million for the nine months ended September 30, 2025, primarily due to debt assumed from the Zircaloy acquisition[161] Tax and Other Income - Provision for income taxes was $12.3 million for the nine months ended September 30, 2025, with an effective tax rate of 27.5%[163] - Other income, net was $6.6 million for the nine months ended September 30, 2025, compared to other expense, net of $0.2 million for the same period in 2024, primarily due to changes in foreign currency exchange rates[162] Market Risks - The company is exposed to foreign currency exchange risk, primarily with the Canadian dollar and Mexican peso, due to its geographically diverse operations[214] - Forward contracts have been established to hedge forecasted costs in Mexican pesos, designated as cash flow hedges to manage foreign currency transaction risk[215] - Market risks, including interest rate and foreign currency exchange risks, are not currently significant to the company's results of operations but may become so in the future[207]