Cadre (US:CDRE)2024-05-08 20:16Financial Performance - Net sales for the three months ended March 31, 2024, were $137.9 million, representing a 23.4% increase from $111.7 million in the same period of 2023[111]. - Gross profit for the same period was $57.6 million, up 23.6% from $46.6 million year-over-year[111]. - Net income for the three months ended March 31, 2024, was $6.9 million, a slight decrease of 1.1% from $7.0 million in the prior year[111]. - Operating income for the three months ended March 31, 2024, was $12.0 million, reflecting a 6.8% increase from $11.2 million in the previous year[111]. - Adjusted EBITDA for the three months ended March 31, 2024, was $24,488, up from $18,592 in the same period of 2023, reflecting a growth of 31.5%[238]. Expenses and Costs - Selling, general and administrative expenses increased by 15.5% to $40.7 million, up from $35.3 million in the same period last year[111]. - The company incurred $3,087,000 in restructuring and transaction costs during the quarter, indicating ongoing strategic adjustments[132]. - The company incurred acquisition-related costs of $4,399 for the acquisition of Alpha Safety, all recognized during the three months ended March 31, 2024[177]. Cash Flow and Financing - Cash provided by operating activities was $2,137,000, a significant decrease from $12,722,000 in the same period last year[134]. - Net cash used in investing activities totaled $142,636,000, compared to $580,000 in the prior year, primarily due to business acquisitions[134]. - Net cash provided by financing activities was $139,786,000, a substantial increase from a net cash used of $9,303,000 in the previous year[134]. - The company issued 2,200,000 shares of common stock at $35.00 per share, resulting in net proceeds of $72,813 thousand after expenses[165]. Assets and Liabilities - As of March 31, 2024, total assets increased to $599,442 thousand from $431,179 thousand as of December 31, 2023, representing a growth of approximately 39.1%[156]. - Current assets rose to $269,328 thousand, up from $245,843 thousand, indicating an increase of about 9.5%[156]. - Long-term debt rose significantly to $200,601 thousand from $127,812 thousand, marking an increase of about 56.8%[156]. - The company had $215.8 million in outstanding debt, an increase from $140.1 million as of December 31, 2023[266]. Acquisitions - The company acquired ICOR Technology Inc. for $40.4 million in January 2024, contributing to the increase in orders backlog[105]. - The company completed the acquisition of ICOR on January 9, 2024, and Alpha Safety on February 29, 2024, as part of its strategy to expand into new markets and enhance product offerings[174][177]. - The acquisition of Alpha Safety Intermediate, LLC had a total consideration of $102,011, with customer relationships valued at $17,000, technology at $35,800, and trademarks at $4,700[177][179]. Orders and Backlog - Orders backlog increased by $32.4 million to $159.1 million as of March 31, 2024, compared to $126.7 million on December 31, 2023[88][109]. - The company’s orders backlog may experience volatility due to customer order volumes and fulfillment speed[264]. Shareholder Information - The company reported a basic net income per share of $0.18 for the three months ended March 31, 2024, compared to $0.19 for the same period in 2023[132]. - Shareholders' equity increased to $270,701 thousand as of March 31, 2024, compared to $197,162 thousand at the end of 2023, reflecting a growth of approximately 37.3%[156]. Legal and Compliance - The company is involved in various legal disputes but believes that reasonably possible losses would not have a material adverse effect on its financial position[225]. - The effective tax rate for the three months ended March 31, 2024, was 22.1%, down from 29.6% in the same period of 2023[249].