Cadre (US:CDRE)2024-03-11 16:00Debt and Interest Rate Exposure - The company has $138.6 million in outstanding floating rate debt, with an interest rate of 5.36% plus 1.60% as of December 31, 2023[449]. - A 100 basis point change in interest rates would result in a $1.4 million change in annual interest expense on the principal amount of debt[450]. - The company is exposed to market risks including interest rate and foreign currency exchange risks, which may impact financial condition or results of operations[448]. Currency Exchange Impact - A 10% increase or decrease in the value of the Canadian dollar would have caused reported net sales to increase or decrease by approximately $1.3 million for the year ended December 31, 2023[450]. - A 10% fluctuation in the Canadian dollar would have impacted reported net income by approximately $0.2 million for the year ended December 31, 2023[450]. - A 10% change in the value of the Mexican peso would have caused reported net income to increase or decrease by approximately $0.7 million for the year ended December 31, 2023[450]. Labor and Operational Challenges - The company may face challenges in hiring and retaining quality team members, which could increase labor costs and negatively impact profitability[49]. - The company has experienced a shortage of labor for certain functions, which has increased labor costs and negatively impacted profitability[49]. - Potential future legislative initiatives may increase federal and state minimum wage rates, impacting operating costs and financial condition[50]. Reputation and Demand Risks - Adverse publicity could damage the company's reputation and negatively affect long-term demand for its products[45].