Cadre Holdings Reports Fourth Quarter and Full Year 2023 Financial Results
- Cadre achieved impressive annual net sales of $483 million, with a gross margin of 41.6% and net income of $39 million.
- The company generated record annual Adjusted EBITDA and Adjusted EBITDA Margin.
- Cadre projects full-year 2024 net sales to be in the range of $553 to $572 million and Adjusted EBITDA between $104 to $108 million.
- The CEO, Warren Kanders, highlighted the company's strong performance in 2023, driven by strategic execution and high demand for safety equipment.
- Cadre's recent acquisitions of ICOR Technology and Alpha Safety aim to enhance its product offerings and market position.
- The company's liquidity improved, with cash and cash equivalents increasing to $87.7 million and total debt decreasing to $140.1 million as of December 31, 2023.
- Cadre declared a quarterly cash dividend of $0.0875 per share, representing a 9.4% increase over the previous annualized dividend.
- The company provided an optimistic outlook for 2024, expecting revenue and Adjusted EBITDA growth of 16.5% and 23.5%, respectively.
- None.
Insights
The reported annual net sales of $483 million and a gross margin of 41.6% by Cadre Holdings, Inc. indicate a robust performance, particularly when considering the net income of $39 million. This performance is noteworthy as it signifies a strong revenue stream and cost-effective operations. The company's ability to maintain a high gross profit margin above 40% suggests effective pricing strategies and cost control, which is essential for profitability in the manufacturing and distribution sector. The growth in net sales and gross profit margin compared to the previous year also reflects positively on the company's market positioning and operational efficiency.
Furthermore, the company's forecast for 2024, with expected net sales between $553 to $572 million and Adjusted EBITDA of $104 to $108 million, projects confidence in sustained growth. This guidance anticipates significant year-over-year growth, which could be an indicator of strong demand for the company's products and a positive outlook on the execution of its business strategy. The emphasis on Adjusted EBITDA is particularly relevant for investors as it excludes non-cash and one-time expenses, providing a clearer picture of the company's operating profitability.
The strategic acquisitions of ICOR Technology and Alpha Safety by Cadre are strategic moves that could potentially expand the company's market share and diversify its product offerings. ICOR Technology's focus on EOD robots complements Cadre's existing safety equipment portfolio, potentially opening up new government and law enforcement contracts. Alpha Safety's niche in nuclear safety solutions introduces Cadre to a new industry vertical with a growing total addressable market. These acquisitions, funded through cash and debt, reflect Cadre's aggressive growth strategy and its ability to leverage its balance sheet for expansion.
Another point of interest is the increase in the quarterly cash dividend, which signals the company's financial health and commitment to returning value to shareholders. A 9.4% increase in the dividend rate is considerable and could attract income-focused investors. This move, combined with the company's performance and growth outlook, could contribute to positive investor sentiment and potentially impact the company's stock valuation positively.
The company's performance, particularly in the context of macroeconomic factors such as inflation and currency exchange rates, is commendable. The ability to increase gross profit margins in the face of inflationary pressures and a stronger Mexican peso suggests effective cost management and pricing power. This resilience to external economic pressures is a significant indicator of the company's strength. Moreover, the reduction in net debt by $52.0 million enhances the company's financial stability and could improve its creditworthiness, potentially lowering future borrowing costs.
Looking ahead, the company's optimistic 2024 outlook, with projected revenue and Adjusted EBITDA growth of 16.5% and 23.5% respectively, indicates a positive economic forecast for the safety equipment industry. This growth may be supported by secular tailwinds such as increased global emphasis on safety and security. However, investors should also consider potential risks such as geopolitical tensions, supply chain disruptions and changes in government spending on defense and law enforcement, which could impact demand for Cadre's products.
Achieved Annual Net Sales of
Generated Record Annual Adjusted EBITDA and Adjusted EBITDA Margin
Expects Full Year 2024 Net Sales of
-
Net sales of
$124.6 million $482.5 million -
Gross profit margin of
39.9% for the fourth quarter; gross profit margin of41.6% for the year ended December 31, 2023 -
Net income of
$9.6 million $0.25 $38.6 million $1.02 -
Adjusted EBITDA of
$20.7 million $85.8 million -
Adjusted EBITDA margin of
16.6% for the fourth quarter; Adjusted EBITDA margin of17.8% for the year ended December 31, 2023 -
Declared quarterly cash dividend of
$0.08 75$0.03 9.4% per share, over the previous annualized dividend of$0.32
“2023 was a record year, reflective of Cadre’s outstanding strategic execution and the strong and recurring demand for our best-in-class, mission-critical safety equipment,” said Warren Kanders, CEO and Chairman. “Strong fourth quarter results capped off an outstanding year, in which we generated our highest annual revenue, Adjusted EBITDA, gross margin, and Adjusted EBITDA margin since inception. Based on the ongoing, successful implementation of the Cadre operating model, strong secular tailwinds, and confidence in our leading platform of premium safety brands moving forward, our 2024 guidance shared today implies at its midpoints full-year revenue and adjusted EBITDA growth next year of
Mr. Kanders added, “M&A has been a key tenet of our strategy to seek to unlock long-term value, and we are pleased to have recently capitalized on attractive opportunities to add two high-margin safety businesses with recurring revenues. With the acquisition of ICOR Technology, we’ve considerably expanded our ability to provide mission-critical EOD robots to law enforcement agencies and military organizations. Additionally, the acquisition of Alpha Safety represents an important step in diversifying Cadre’s platform, as we enter an attractive new adjacent vertical with a large and growing total addressable market. Supported by a robust acquisition pipeline, as well as favorable industry dynamics, we believe Cadre is ideally positioned to continue to grow our platform and further enhance our market leadership over the long-term.”
Fourth Quarter and Year Ended 2023 Operating Results
For the quarter ended December 31, 2023, Cadre generated net sales of
For the year ended December 31, 2023, Cadre generated net sales of
For the quarter ended December 31, 2023, Cadre generated gross profit of
Gross profit margin was
Gross profit margin was
Net income was
Net income was
Cadre generated
Cadre generated
Product segment gross profit margin was
Distribution segment gross profit margin was
Liquidity, Cash Flows and Capital Allocation
-
Cash and cash equivalents increased by
$42.4 million $45.3 million $87.7 million -
Total debt decreased by
$9.6 million $149.7 million $140.1 million -
Net debt (total debt net of cash and cash equivalents) decreased by
$52.0 million $104.4 million $52.4 million -
Capital expenditures totaled
$2.7 million $7.0 million $1.5 million $4.7 million
Dividend
On January 23, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of
Acquisition of ICOR Technology
On January 10, 2024, Cadre announced the completion of its accretive acquisition of ICOR Technology, a leading manufacturer and distributor of EOD and tactical robots and specialized protective security equipment for EOD and military organizations worldwide. The purchase price was funded through available cash on the Company’s balance sheet.
Acquisition of Alpha Safety
On March 1, 2024, Cadre completed its accretive acquisition of Alpha Safety, a leading nuclear safety solutions company, for
2024 Outlook
For the full year 2024, Cadre expects to generate net sales in the range of
Conference Call
Cadre management will host a conference call on Tuesday, March 5, 2024, at 5:00 PM EST to discuss the latest corporate developments and financial results. The dial-in number for callers in the US is (888)-596-4144 and the dial-in number for international callers is 646-968-2525. The access code for all callers is 3272793. A live webcast will also be available on the Company’s website at https://www.cadre-holdings.com/.
A replay of the call will be available through March 19, 2024. To access the replay, please dial 800-770-2030 in the
About Cadre
Headquartered in
Use of Non-GAAP Measures
The Company reports its financial results in accordance with
Forward-Looking Statements
Except for historical information, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors could cause actual results to differ materially from projections or forward-looking statements, including without limitation, the availability of capital to satisfy our working capital requirements; anticipated trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; our expectations regarding market acceptance of our products; the success of competing products by others that are or become available in the market in which we sell our products; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; changes in political, social, economic or regulatory conditions generally and in the markets in which we operate; our ability to maintain or broaden our business relationships and develop new relationships with strategic alliances, suppliers, customers, distributors or otherwise; our ability to retain and attract senior management and other key employees; our ability to quickly and effectively respond to new technological developments; the effect of an outbreak of disease or similar public health threat, such as the COVID-19 pandemic, on the Company’s business; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; our ability to protect our trade secrets or other proprietary rights and operate without infringing upon the proprietary rights of others and prevent others from infringing on the proprietary rights of the Company; our ability to maintain a quarterly dividend; logistical challenges related to supply chain disruptions and delays; the impact of inflation; the increased expenses associated with being a public company; and the related increased disclosure and reporting obligations; our ability to integrate the operations of the businesses we have acquired, including, without limitation, ICOR Technology Inc. and Alpha Safety, and may acquire in the future; and any material differences in the actual financial results of the Company’s past and future acquisitions as compared with the Company’s expectation. More information on potential factors that could affect the Company’s financial results are more fully described from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
CADRE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) |
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December 31, |
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2023 |
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2022 |
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Assets |
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Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
87,691 |
|
|
$ |
45,286 |
|
Accounts receivable, net |
|
|
58,360 |
|
|
|
64,557 |
|
Inventories |
|
|
80,976 |
|
|
|
70,273 |
|
Prepaid expenses |
|
|
11,930 |
|
|
|
10,091 |
|
Other current assets |
|
|
6,886 |
|
|
|
6,811 |
|
Total current assets |
|
|
245,843 |
|
|
|
197,018 |
|
Property and equipment, net |
|
|
44,647 |
|
|
|
45,285 |
|
Operating lease assets |
|
|
6,554 |
|
|
|
8,489 |
|
Deferred tax assets, net |
|
|
4,004 |
|
|
|
2,255 |
|
Intangible assets, net |
|
|
43,472 |
|
|
|
50,695 |
|
Goodwill |
|
|
81,667 |
|
|
|
81,576 |
|
Other assets |
|
|
4,992 |
|
|
|
6,634 |
|
Total assets |
|
$ |
431,179 |
|
|
$ |
391,952 |
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|
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Liabilities, Mezzanine Equity and Shareholders' Equity |
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Current liabilities |
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Accounts payable |
|
$ |
28,418 |
|
|
$ |
23,406 |
|
Accrued liabilities |
|
|
44,524 |
|
|
|
38,720 |
|
Income tax payable |
|
|
9,944 |
|
|
|
4,584 |
|
Current portion of long-term debt |
|
|
12,320 |
|
|
|
12,211 |
|
Total current liabilities |
|
|
95,206 |
|
|
|
78,921 |
|
Long-term debt |
|
|
127,812 |
|
|
|
137,476 |
|
Long-term operating lease liabilities |
|
|
3,186 |
|
|
|
4,965 |
|
Deferred tax liabilities |
|
|
4,843 |
|
|
|
3,508 |
|
Other liabilities |
|
|
2,970 |
|
|
|
1,192 |
|
Total liabilities |
|
|
234,017 |
|
|
|
226,062 |
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|
|
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Mezzanine equity |
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Preferred stock ( |
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— |
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|
— |
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Shareholders' equity |
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Common stock ( |
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4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
212,630 |
|
|
|
206,540 |
|
Accumulated other comprehensive income |
|
|
634 |
|
|
|
2,087 |
|
Accumulated deficit |
|
|
(16,106 |
) |
|
|
(42,741 |
) |
Total shareholders’ equity |
|
|
197,162 |
|
|
|
165,890 |
|
Total liabilities, mezzanine equity and shareholders' equity |
|
$ |
431,179 |
|
|
$ |
391,952 |
|
CADRE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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Net sales |
|
$ |
124,583 |
|
|
$ |
123,645 |
|
|
$ |
482,532 |
|
|
$ |
457,837 |
|
Cost of goods sold |
|
|
74,825 |
|
|
|
75,117 |
|
|
|
281,806 |
|
|
|
282,159 |
|
Gross profit |
|
|
49,758 |
|
|
|
48,528 |
|
|
|
200,726 |
|
|
|
175,678 |
|
Operating expenses |
|
|
|
|
|
|
|
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|
|
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Selling, general and administrative |
|
|
34,904 |
|
|
|
34,698 |
|
|
|
140,519 |
|
|
|
153,129 |
|
Restructuring and transaction costs |
|
|
1,060 |
|
|
|
975 |
|
|
|
2,192 |
|
|
|
4,355 |
|
Related party expense |
|
|
1,117 |
|
|
|
132 |
|
|
|
1,496 |
|
|
|
1,478 |
|
Total operating expenses |
|
|
37,081 |
|
|
|
35,805 |
|
|
|
144,207 |
|
|
|
158,962 |
|
Operating income |
|
|
12,677 |
|
|
|
12,723 |
|
|
|
56,519 |
|
|
|
16,716 |
|
Other expense |
|
|
|
|
|
|
|
|
|
|
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|
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Interest expense |
|
|
(804 |
) |
|
|
(1,710 |
) |
|
|
(4,531 |
) |
|
|
(6,206 |
) |
Other income (expense), net |
|
|
541 |
|
|
|
1,675 |
|
|
|
936 |
|
|
|
(1,137 |
) |
Total other expense, net |
|
|
(263 |
) |
|
|
(35 |
) |
|
|
(3,595 |
) |
|
|
(7,343 |
) |
Income before provision for income taxes |
|
|
12,414 |
|
|
|
12,688 |
|
|
|
52,924 |
|
|
|
9,373 |
|
Provision for income taxes |
|
|
(2,820 |
) |
|
|
(6,089 |
) |
|
|
(14,283 |
) |
|
|
(3,553 |
) |
Net income |
|
$ |
9,594 |
|
|
$ |
6,599 |
|
|
$ |
38,641 |
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|
$ |
5,820 |
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Net income per share: |
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Basic |
|
$ |
0.26 |
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|
$ |
0.18 |
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|
$ |
1.03 |
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|
$ |
0.16 |
|
Diluted |
|
$ |
0.25 |
|
|
$ |
0.17 |
|
|
$ |
1.02 |
|
|
$ |
0.16 |
|
Weighted average shares outstanding: |
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Basic |
|
|
37,586,756 |
|
|
|
37,332,271 |
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|
|
37,533,818 |
|
|
|
36,109,844 |
|
Diluted |
|
|
38,125,787 |
|
|
|
37,887,600 |
|
|
|
37,920,488 |
|
|
|
36,122,374 |
|
CADRE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) |
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Year Ended December 31, |
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|
2023 |
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2022 |
|
2021 |
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Cash Flows From Operating Activities: |
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Net income |
|
$ |
38,641 |
|
|
$ |
5,820 |
|
|
$ |
12,661 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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|
|
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|||
Depreciation and amortization |
|
|
15,737 |
|
|
|
15,651 |
|
|
|
13,718 |
|
Amortization of original issue discount and debt issue costs |
|
|
479 |
|
|
|
740 |
|
|
|
3,193 |
|
Amortization of inventory step-up |
|
|
— |
|
|
|
4,255 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
15,155 |
|
Deferred income taxes |
|
|
(210 |
) |
|
|
(1,087 |
) |
|
|
4,772 |
|
Stock-based compensation |
|
|
9,368 |
|
|
|
31,858 |
|
|
|
355 |
|
Provision for (recoveries from) losses on accounts receivable |
|
|
66 |
|
|
|
417 |
|
|
|
(188 |
) |
Foreign exchange (gain) loss |
|
|
(602 |
) |
|
|
1,517 |
|
|
|
102 |
|
Other |
|
|
(381 |
) |
|
|
(170 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net of impact of acquisitions: |
|
|
|
|
|
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|
|
|
|||
Accounts receivable |
|
|
6,602 |
|
|
|
(11,536 |
) |
|
|
(4,641 |
) |
Inventories |
|
|
(10,223 |
) |
|
|
1,162 |
|
|
|
(3,189 |
) |
Prepaid expenses and other assets |
|
|
(302 |
) |
|
|
(7,711 |
) |
|
|
(4,564 |
) |
Accounts payable and other liabilities |
|
|
14,034 |
|
|
|
5,493 |
|
|
|
2,720 |
|
Net cash provided by operating activities |
|
|
73,209 |
|
|
|
46,409 |
|
|
|
40,094 |
|
Cash Flows From Investing Activities: |
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Purchase of property and equipment |
|
|
(6,727 |
) |
|
|
(4,494 |
) |
|
|
(2,832 |
) |
Proceeds from disposition of property and equipment |
|
|
207 |
|
|
|
411 |
|
|
|
— |
|
Business acquisitions, net of cash acquired |
|
|
— |
|
|
|
(55,543 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(6,520 |
) |
|
|
(59,626 |
) |
|
|
(2,832 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|||
Proceeds from revolving credit facilities |
|
|
— |
|
|
|
43,000 |
|
|
|
257,980 |
|
Principal payments on revolving credit facilities |
|
|
— |
|
|
|
(43,000 |
) |
|
|
(258,612 |
) |
Proceeds from term loans |
|
|
— |
|
|
|
— |
|
|
|
198,716 |
|
Principal payments on term loans |
|
|
(10,000 |
) |
|
|
(10,116 |
) |
|
|
(266,000 |
) |
Proceeds from insurance premium financing |
|
|
3,949 |
|
|
|
3,989 |
|
|
|
5,010 |
|
Principal payments on insurance premium financing |
|
|
(3,973 |
) |
|
|
(4,952 |
) |
|
|
(3,061 |
) |
Payments for debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(2,198 |
) |
Payments on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(4,217 |
) |
Taxes paid in connection with employee stock transactions |
|
|
(2,725 |
) |
|
|
(6,300 |
) |
|
|
— |
|
Proceeds from initial public offering, net of underwriter discounts |
|
|
— |
|
|
|
— |
|
|
|
83,421 |
|
Proceeds from secondary offering, net of underwriter discounts |
|
|
— |
|
|
|
56,329 |
|
|
|
— |
|
Deferred offering costs |
|
|
— |
|
|
|
(2,953 |
) |
|
|
(4,841 |
) |
Dividends distributed |
|
|
(12,006 |
) |
|
|
(11,509 |
) |
|
|
(12,751 |
) |
Other |
|
|
33 |
|
|
|
(25 |
) |
|
|
(43 |
) |
Net cash (used in) provided by financing activities |
|
|
(24,722 |
) |
|
|
24,463 |
|
|
|
(6,596 |
) |
Effect of foreign exchange rates on cash and cash equivalents |
|
|
438 |
|
|
|
183 |
|
|
|
318 |
|
Change in cash and cash equivalents |
|
|
42,405 |
|
|
|
11,429 |
|
|
|
30,984 |
|
Cash and cash equivalents, beginning of period |
|
|
45,286 |
|
|
|
33,857 |
|
|
|
2,873 |
|
Cash and cash equivalents, end of period |
|
$ |
87,691 |
|
|
$ |
45,286 |
|
|
$ |
33,857 |
|
Supplemental Disclosure of Cash Flows Information: |
|
|
|
|
|
|
|
|
|
|||
Cash paid for income taxes, net |
|
$ |
8,729 |
|
|
$ |
1,395 |
|
|
$ |
1,158 |
|
Cash paid for interest |
|
$ |
10,090 |
|
|
$ |
6,109 |
|
|
$ |
13,336 |
|
Supplemental Disclosure of Non-Cash Investing and Financing Activities: |
|
|
|
|
|
|
|
|
|
|||
Accruals and accounts payable for capital expenditures |
|
$ |
234 |
|
|
$ |
172 |
|
|
$ |
197 |
|
CADRE HOLDINGS, INC. SEGMENT INFORMATION (Unaudited) (In thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2023 |
|||||||||||
|
|
|
|
|
|
|
|
Reconciling |
|
|
|
||
|
|
Product |
|
Distribution |
|
Items(1) |
|
Total |
|||||
Net sales |
|
$ |
105,768 |
|
$ |
27,777 |
|
$ |
(8,962 |
) |
|
$ |
124,583 |
Cost of goods sold |
|
|
62,733 |
|
|
21,135 |
|
|
(9,043 |
) |
|
|
74,825 |
Gross profit |
|
$ |
43,035 |
|
$ |
6,642 |
|
$ |
81 |
|
|
$ |
49,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2022 |
|||||||||||
|
|
|
|
|
|
|
|
Reconciling |
|
|
|
||
|
|
Product |
|
Distribution |
|
Items(1) |
|
Total |
|||||
Net sales |
|
$ |
107,482 |
|
$ |
23,270 |
|
$ |
(7,107 |
) |
|
$ |
123,645 |
Cost of goods sold |
|
|
64,053 |
|
|
18,196 |
|
|
(7,132 |
) |
|
|
75,117 |
Gross profit |
|
$ |
43,429 |
|
$ |
5,074 |
|
$ |
25 |
|
|
$ |
48,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2023 |
|||||||||||
|
|
|
|
|
|
|
|
Reconciling |
|
|
|
||
|
|
Product |
|
Distribution |
|
Items(1) |
|
Total |
|||||
Net sales |
|
$ |
410,825 |
|
$ |
102,371 |
|
$ |
(30,664 |
) |
|
$ |
482,532 |
Cost of goods sold |
|
|
233,937 |
|
$ |
78,335 |
|
$ |
(30,466 |
) |
|
|
281,806 |
Gross profit |
|
$ |
176,888 |
|
$ |
24,036 |
|
$ |
(198 |
) |
|
$ |
200,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2022 |
|||||||||||
|
|
|
|
|
|
|
|
Reconciling |
|
|
|
||
|
|
Product |
|
Distribution |
|
Items(1) |
|
Total |
|||||
Net sales |
|
$ |
385,423 |
|
$ |
97,106 |
|
$ |
(24,692 |
) |
|
$ |
457,837 |
Cost of goods sold |
|
|
230,245 |
|
|
76,633 |
|
|
(24,719 |
) |
|
|
282,159 |
Gross profit |
|
$ |
155,178 |
|
$ |
20,473 |
|
$ |
27 |
|
|
$ |
175,678 |
| _______________________ | |
(1) |
Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments. |
CADRE HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
||||
Net income |
|
$ |
9,594 |
|
|
$ |
6,599 |
|
|
$ |
38,641 |
|
|
$ |
5,820 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
3,352 |
|
|
|
4,332 |
|
|
|
15,737 |
|
|
|
15,651 |
|
|
Interest expense |
|
|
804 |
|
|
|
1,710 |
|
|
|
4,531 |
|
|
|
6,206 |
|
|
Provision for income taxes |
|
|
2,820 |
|
|
|
6,089 |
|
|
|
14,283 |
|
|
|
3,553 |
|
|
EBITDA |
|
$ |
16,570 |
|
|
$ |
18,730 |
|
|
$ |
73,192 |
|
|
$ |
31,230 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restructuring and transaction costs(1) |
|
|
2,060 |
|
|
|
975 |
|
|
|
3,192 |
|
|
|
5,355 |
|
|
Other general income(2) |
|
|
(92 |
) |
|
|
(159 |
) |
|
|
(92 |
) |
|
|
(159 |
) |
|
Other (income) expense, net(3) |
|
|
(541 |
) |
|
|
(1,675 |
) |
|
|
(936 |
) |
|
|
1,137 |
|
|
Stock-based compensation expense(4) |
|
|
2,308 |
|
|
|
2,878 |
|
|
|
9,368 |
|
|
|
32,239 |
|
|
Stock-based compensation payroll tax expense(5) |
|
|
14 |
|
|
|
— |
|
|
|
234 |
|
|
|
305 |
|
|
LTIP bonus(6) |
|
|
371 |
|
|
|
436 |
|
|
|
860 |
|
|
|
1,369 |
|
|
Amortization of inventory step-up(7) |
|
|
— |
|
|
|
1,200 |
|
|
|
— |
|
|
|
4,255 |
|
|
Adjusted EBITDA |
|
$ |
20,690 |
|
|
$ |
22,385 |
|
|
$ |
85,818 |
|
|
$ |
75,731 |
|
|
Adjusted EBITDA margin(8) |
|
|
16.6 |
% |
|
18.1 |
% |
|
17.8 |
% |
|
16.5 |
% |
||||
| _______________________ | |
(1) |
Reflects the “Restructuring and transaction costs” line item on our consolidated statement of operations and comprehensive income, which primarily includes transaction costs composed of legal and consulting fees. In addition, this line item reflects |
(2) |
Reflects gains from long-lived asset sales. |
(3) |
Reflects the “Other income (expense), net” line item on our consolidated statements of operations and primarily includes gains and losses due to fluctuations in foreign currency exchange rates. |
(4) |
Reflects compensation expense related to equity and liability classified stock-based compensation plans. |
(5) |
Reflects payroll taxes associated with vested stock-based compensation awards. |
(6) |
Reflects the cost of a cash-based long-term incentive plan awarded to employees that vests over three years. |
(7) |
Reflects amortization expense related to the step-up inventory adjustment recorded as a result of our recent acquisitions. |
(8) |
Reflects Adjusted EBITDA / Net sales for the relevant periods. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305028123/en/
Gray Hudkins
Cadre Holdings, Inc.
203-550-7148
gray.hudkins@cadre-holdings.com
Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
212-477-8438 / 212-227-7098
lberman@igbir.com / mberkowitz@igbir.com
Media Contact:
Jonathan Keehner / Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Source: Cadre Holdings, Inc.
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