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Cadre Holdings Reports Third Quarter 2024 Financial Results

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Cadre Holdings (NYSE: CDRE) reported Q3 2024 financial results with net sales of $109.4 million, down from $125.1 million in Q3 2023, primarily due to cybersecurity incidents in July and September 2024. Net income was $3.7 million ($0.09 per diluted share), compared to $11.1 million in Q3 2023. Gross profit margin decreased to 36.6% from 42.8% year-over-year. The company modified its full-year 2024 guidance, now expecting net sales between $560-571 million and Adjusted EBITDA of $101-107 million. A quarterly dividend of $0.0875 per share was declared.

Cadre Holdings (NYSE: CDRE) ha riportato i risultati finanziari del terzo trimestre 2024 con vendite nette di 109,4 milioni di dollari, in calo rispetto ai 125,1 milioni di dollari del terzo trimestre 2023, principalmente a causa di incidenti di cybersecurity avvenuti a luglio e settembre 2024. Il reddito netto è stato di 3,7 milioni di dollari (0,09 dollari per azione diluita), rispetto agli 11,1 milioni di dollari nel terzo trimestre 2023. Il margine di profitto lordo è diminuito al 36,6% rispetto al 42,8% dell'anno precedente. L'azienda ha modificato le previsioni per l'intero anno 2024, ora prevedendo vendite nette comprese tra 560 e 571 milioni di dollari e un EBITDA rettificato di 101-107 milioni di dollari. È stato dichiarato un dividendo trimestrale di 0,0875 dollari per azione.

Cadre Holdings (NYSE: CDRE) reportó los resultados financieros del tercer trimestre de 2024 con ventas netas de 109.4 millones de dólares, una disminución desde los 125.1 millones de dólares en el tercer trimestre de 2023, principalmente debido a incidentes de ciberseguridad en julio y septiembre de 2024. El ingreso neto fue de 3.7 millones de dólares (0.09 dólares por acción diluida), en comparación con 11.1 millones de dólares en el tercer trimestre de 2023. El margen de beneficio bruto disminuyó al 36.6% desde el 42.8% del año anterior. La empresa modificó su guía para todo el año 2024, ahora esperando ventas netas entre 560-571 millones de dólares y un EBITDA ajustado de 101-107 millones de dólares. Se declaró un dividendo trimestral de 0.0875 dólares por acción.

Cadre Holdings (NYSE: CDRE)는 2024년 3분기 재무 결과를 발표했으며 순매출은 1억 9천4백만 달러로, 2023년 3분기 1억 2천5백1백만 달러에서 감소했습니다. 이는 주로 2024년 7월과 9월에 발생한 사이버 보안 사건 때문입니다. 순이익은 370만 달러(희석주당 0.09 달러)로, 2023년 3분기 1천1백만 달러에 비해 감소했습니다. 총 이익률은 작년의 42.8%에서 36.6%로 감소했습니다. 이 회사는 2024년 전체 연도 가이드를 수정하여 순매출을 5억 6천만에서 5억 7천1백만 달러 사이로 예상하고 조정된 EBITDA를 1억 1천만에서 1억 7천만 달러로 예상하고 있습니다. 주당 0.0875 달러의 분기 배당금이 선언되었습니다.

Cadre Holdings (NYSE: CDRE) a publié les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires net de 109,4 millions de dollars, en baisse par rapport à 125,1 millions de dollars au troisième trimestre 2023, principalement en raison d'incidents de cybersécurité survenus en juillet et septembre 2024. Le revenu net s'élevait à 3,7 millions de dollars (0,09 dollar par action diluée), contre 11,1 millions de dollars au troisième trimestre 2023. La marge brute a diminué à 36,6% contre 42,8% l'année précédente. L'entreprise a modifié ses prévisions pour l'année entière 2024, s'attendant désormais à des ventes nettes comprises entre 560 et 571 millions de dollars et un EBITDA ajusté de 101 à 107 millions de dollars. Un dividende trimestriel de 0,0875 dollar par action a été déclaré.

Cadre Holdings (NYSE: CDRE) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht, mit Nettoverkaufszahlen von 109,4 Millionen Dollar, was einem Rückgang von 125,1 Millionen Dollar im dritten Quartal 2023 entspricht, hauptsächlich aufgrund von Cybersecurity-Vorfällen im Juli und September 2024. Der Nettoertrag betrug 3,7 Millionen Dollar (0,09 Dollar pro verwässertem Anteil), verglichen mit 11,1 Millionen Dollar im dritten Quartal 2023. Die Bruttogewinnmarge sank im Jahresvergleich von 42,8% auf 36,6%. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 angepasst und erwartet nun Nettoverkäufe zwischen 560 und 571 Millionen Dollar sowie ein bereinigtes EBITDA von 101 bis 107 Millionen Dollar. Eine vierteljährliche Dividende von 0,0875 Dollar pro Aktie wurde erklärt.

Positive
  • Net sales for nine months increased to $391.6M from $357.9M YoY
  • Strong cash position with $93.0M in cash and cash equivalents
  • Continued dividend payment of $0.0875 per share
  • Higher demand for armor and duty gear products
Negative
  • Q3 net sales declined 12.5% YoY to $109.4M
  • Q3 gross profit margin decreased to 36.6% from 42.8% YoY
  • Q3 net income dropped to $3.7M from $11.1M YoY
  • Cybersecurity incidents disrupted business operations
  • Total debt increased by $68.0M to $208.1M
  • Reduced full-year guidance due to operational disruptions

Insights

The Q3 results reveal significant challenges, with net sales declining to $109.4M from $125.1M year-over-year, primarily due to cybersecurity incidents. Gross profit margins contracted to 36.6% from 42.8%, while net income dropped to $3.7M from $11.1M. The revised full-year guidance, projecting sales of $560-571M and Adjusted EBITDA of $101-107M, reflects these operational disruptions.

Despite headwinds, the company maintains a strong balance sheet with $93M in cash. The consistent quarterly dividend of $0.0875 per share and stable demand in core markets demonstrate resilience. However, investors should monitor cybersecurity remediation efforts and margin recovery, as recent incidents have materially impacted operational efficiency.

The multiple cybersecurity incidents in July and September 2024 have had material impacts on operations, forcing production limitations and affecting order fulfillment. While management claims to have contained the threats, the implementation of ongoing countermeasures and engagement of external experts suggests significant infrastructure vulnerabilities that required substantial remediation.

The sequential occurrence of incidents raises concerns about the robustness of initial security improvements. The business disruption's financial impact highlights the critical nature of cybersecurity in manufacturing operations, particularly for companies serving law enforcement and military markets where security is paramount.

Favorable Market Trends Continue to Drive Strong Demand for Cadre’s Mission Critical Safety Equipment

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “Company”), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today its consolidated operating results for the three and nine months ended September 30, 2024.

  • Net sales of $109.4 million for the third quarter; net sales of $391.6 million for the nine months ended September 30, 2024.
  • Gross profit margin of 36.6% for the third quarter; gross profit margin of 39.9% for the nine months ended September 30, 2024.
  • Net income of $3.7 million, or $0.09 per diluted share, for the third quarter; net income of $23.2 million, or $0.58 per diluted share, for the nine months ended September 30, 2024.
  • Adjusted EBITDA of $13.5 million for the third quarter; Adjusted EBITDA of $66.3 million for the nine months ended September 30, 2024.
  • Adjusted EBITDA margin of 12.4% for the third quarter; Adjusted EBITDA margin of 16.9% for the nine months ended September 30, 2024.
  • Declared quarterly cash dividend of $0.0875 per share in October 2024.

“During the third quarter we continued to see strong and recurring demand for Cadre’s best-in-class, mission-critical safety equipment,” said Warren Kanders, CEO and Chairman. “While events unrelated to business macros have impacted our short-term financial performance, we’ve been pleased with the teams’ overall progress and execution leveraging the Cadre operating model to drive constant organizational improvement and create greater value for customers and shareholders. Cadre continues to benefit from an innovative product offering, premium brands, and leading positions across our law enforcement, first responder, military and nuclear markets, supported by outstanding leadership.”

Mr. Kanders added, “Cadre’s resilience through cycles is a primary strength of our business, highlighted by the Company’s track record of consistent and stable growth regardless of economic, political or geopolitical conditions. We remain focused on taking advantage of the favorable industry trends fueling strong global demand for our highly engineered safety products. With a robust M&A pipeline, we continue to diligently evaluate potential transactions to add complementary businesses with strong margins, leading and defensible market positions, and recurring revenue profiles. We are confident in Cadre's forward outlook and believe we are ideally positioned to further expand our platforms and enhance our market leadership positions.”

Third Quarter and Nine-Month 2024 Operating Results

For the quarter ended September 30, 2024, Cadre generated net sales of $109.4 million, as compared to $125.1 million for the quarter ended September 30, 2023. This was primarily a result of the cybersecurity incident that Cadre reported in July 2024 and a subsequent, negligible cybersecurity incident that occurred in September 2024. Each of these incidents led the Company to take certain containment and mitigation measures out of an abundance of caution, resulting in temporary interruptions or disruptions of normal business operations for select business units, which temporarily impacted the Company’s production and order fulfillment activities.

For the nine months ended September 30, 2024, Cadre generated net sales of $391.6 million, as compared to $357.9 million for the nine months ended September 30, 2023, primarily as a result of recent acquisitions and higher demand for armor and duty gear products, partially offset by the cybersecurity incidents.

For the quarter ended September 30, 2024, Cadre generated gross profit of $40.0 million, as compared to $53.6 million for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, Cadre generated gross profit of $156.3 million, as compared to $151.0 million for the prior year period.

Gross profit margin was 36.6% for the quarter ended September 30, 2024, as compared to 42.8% for the quarter ended September 30, 2023, mainly driven by lower productivity in the Product segment due to the cybersecurity incidents and the amortization of inventory step up adjustments related to 2024 acquisitions, as well as unfavorable mix in the Distribution segment. Gross profit margin was 39.9% for the nine months ended September 30, 2024, as compared to 42.2% for the prior year period.

Net income was $3.7 million for the quarter ended September 30, 2024, as compared to net income of $11.1 million for the quarter ended September 30, 2023. The decrease resulted primarily from reduced gross profit driven by lower productivity and lower revenue due to the cybersecurity incidents.

Net income was $23.2 million for the nine months ended September 30, 2024, as compared to net income of $29.0 million for the prior year period, primarily as a result of an increase in gross profit driven by recent acquisitions, offset by an increase in selling, general and administrative expenses.

Cadre generated $13.5 million of Adjusted EBITDA for the quarter ended September 30, 2024, as compared to $23.7 million for the quarter ended September 30, 2023. Adjusted EBITDA margin was 12.4% for the quarter ended September 30, 2024, as compared to 19.0% for the prior year period.

Cadre generated $66.3 million of Adjusted EBITDA for the nine months ended September 30, 2024, as compared to $65.1 million for the prior period. Adjusted EBITDA margin was 16.9% for the nine months ended September 30, 2023, as compared to 18.2% for the prior year period.

Product segment gross margin was 37.4% and 40.7% for the third quarter and first nine months of 2024, respectively, compared to 44.3% and 43.9% for the prior year periods.

Distribution segment gross margin was 21.9% and 22.9% for the third quarter and first nine months of 2024, respectively, compared to 22.7% and 23.3% for the prior year periods.

Liquidity, Cash Flows and Capital Allocation

  • Cash and cash equivalents increased by $5.3 million from $87.7 million as of December 31, 2023 to $93.0 million as of September 30, 2024.
  • Total debt increased by $68.0 million from $140.1 million as of December 31, 2023 to $208.1 million as of September 30, 2024.
  • Net debt (total debt net of cash and cash equivalents) increased by $62.7 million from $52.4 million as of December 31, 2023 to $115.1 million as of September 30, 2024.
  • Capital expenditures totaled $1.1 million for the third quarter and $4.5 million for the nine months ended September 30, 2024, compared with $1.8 million for the third quarter and $4.3 million for the nine months ended September 30, 2023.

Dividend

On October 22, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.0875 per share, or $0.35 per share on an annualized basis. Cadre's dividend payment will be made on November 15, 2024 to shareholders of record as of the close of business on the record date of November 1, 2024. The declaration of any future dividend is subject to the discretion of the Company's Board of Directors.

2024 Outlook

Following the July cybersecurity incident and subsequent incident that occurred in September 2024, Cadre has implemented a number of countermeasures to improve the Company’s infrastructure and will continue implementing additional countermeasures to protect its systems and data. Cadre has engaged a number of outside experts to assist in this effort. The Company believes it has contained the threat posed by the cybersecurity incidents and their associated risks and has resumed all affected business operations. The incidents caused Cadre to limit production to a greater extent than was originally forecasted in a number of its facilities during the investigation and remediation periods. As a result, the Company has modified its full year guidance for 2024 and now expects to generate net sales in the range of $560 million to $571 million and Adjusted EBITDA in the range of $101 million and $107 million. We expect capital expenditures to be in the range of $6 million to $8 million.

Conference Call

Management will host a conference call on Wednesday, November 6, 2024, at 5:00 p.m. EST to discuss the latest corporate developments and financial results. The dial-in number for callers in the US is (800)-715-9871 and the dial-in number for international callers is 646-307-1963. 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 November 20, 2024. To access the replay, please dial 800-770-2030 in the U.S. or +1-609-800-9909 if outside the U.S., and then enter the access code 3272793.

About Cadre

Headquartered in Jacksonville, Florida, Cadre is a global leader in the manufacturing and distribution of safety products. Cadre's equipment provides critical protection to allow users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. The Company's core products include body armor, explosive ordnance disposal equipment, duty gear and nuclear safety products. Our highly engineered products are utilized in over 100 countries by federal, state and local law enforcement, fire and rescue professionals, explosive ordnance disposal teams, and emergency medical technicians. Our key brands include Safariland® and Med-Eng®, amongst others.

Use of Non-GAAP Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The press release contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), (ii) adjusted EBITDA, (iii) adjusted EBITDA margin and (iv) last twelve months adjusted EBITDA. The Company believes the presentation of these non-GAAP measures provides useful information for the understanding of its ongoing operations and enables investors to focus on period- over-period operating performance, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the fiscal year 2024 to net income for the fiscal year 2024, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

Forward-Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, potential legal, reputational, operational and financial effects on the Company resulting from the cybersecurity incident that the Company reported in July 2024 and/or future cybersecurity incidents on the Company’s business, operations and financial results as well as the effectiveness of the Company’s response and mitigation efforts to any such cybersecurity incidents, as well as those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

92,989

 

 

$

87,691

 

Accounts receivable, net of allowance for doubtful accounts of $1,317 and $635, respectively

 

 

69,432

 

 

 

58,360

 

Inventories

 

 

99,583

 

 

 

80,976

 

Prepaid expenses

 

 

15,603

 

 

 

11,930

 

Other current assets

 

 

8,305

 

 

 

6,886

 

Total current assets

 

 

285,912

 

 

 

245,843

 

Property and equipment, net of accumulated depreciation and amortization of $53,098 and $50,968, respectively

 

 

46,221

 

 

 

44,647

 

Operating lease assets

 

 

16,922

 

 

 

6,554

 

Deferred tax assets, net

 

 

3,870

 

 

 

4,004

 

Intangible assets, net

 

 

111,024

 

 

 

43,472

 

Goodwill

 

 

148,944

 

 

 

81,667

 

Other assets

 

 

3,722

 

 

 

4,992

 

Total assets

 

$

616,615

 

 

$

431,179

 

 

 

 

 

 

 

 

Liabilities, Mezzanine Equity and Shareholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

27,565

 

 

$

28,418

 

Accrued liabilities

 

 

47,241

 

 

 

44,524

 

Income tax payable

 

 

7,141

 

 

 

9,944

 

Current portion of long-term debt

 

 

13,134

 

 

 

12,320

 

Total current liabilities

 

 

95,081

 

 

 

95,206

 

Long-term debt

 

 

194,949

 

 

 

127,812

 

Long-term operating lease liabilities

 

 

12,032

 

 

 

3,186

 

Deferred tax liabilities

 

 

8,782

 

 

 

4,843

 

Other liabilities

 

 

5,490

 

 

 

2,970

 

Total liabilities

 

 

316,334

 

 

 

234,017

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

 

 

 

 

Preferred stock ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2024 and December 31, 2023)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Common stock ($0.0001 par value, 190,000,000 shares authorized, 40,607,988 and 37,587,436 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively)

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

304,707

 

 

 

212,630

 

Accumulated other comprehensive (loss) income

 

 

(1,079

)

 

 

634

 

Accumulated deficit

 

 

(3,351

)

 

 

(16,106

)

Total shareholders’ equity

 

 

300,281

 

 

 

197,162

 

Total liabilities, mezzanine equity and shareholders' equity

 

$

616,615

 

 

$

431,179

 

CADRE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

$

109,408

 

 

$

125,114

 

 

$

391,577

 

 

$

357,949

 

Cost of goods sold

 

 

69,392

 

 

 

71,511

 

 

 

235,283

 

 

 

206,981

 

Gross profit

 

 

40,016

 

 

 

53,603

 

 

 

156,294

 

 

 

150,968

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

33,981

 

 

 

36,314

 

 

 

113,277

 

 

 

105,615

 

Restructuring and transaction costs

 

 

515

 

 

 

439

 

 

 

3,621

 

 

 

1,132

 

Related party expense

 

 

94

 

 

 

116

 

 

 

2,038

 

 

 

379

 

Total operating expenses

 

 

34,590

 

 

 

36,869

 

 

 

118,936

 

 

 

107,126

 

Operating income

 

 

5,426

 

 

 

16,734

 

 

 

37,358

 

 

 

43,842

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,991

)

 

 

(1,073

)

 

 

(5,631

)

 

 

(3,727

)

Other income (expense), net

 

 

1,555

 

 

 

(315

)

 

 

(225

)

 

 

395

 

Total other expense, net

 

 

(436

)

 

 

(1,388

)

 

 

(5,856

)

 

 

(3,332

)

Income before provision for income taxes

 

 

4,990

 

 

 

15,346

 

 

 

31,502

 

 

 

40,510

 

Provision for income taxes

 

 

(1,335

)

 

 

(4,293

)

 

 

(8,352

)

 

 

(11,463

)

Net income

 

$

3,655

 

 

$

11,053

 

 

$

23,150

 

 

$

29,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

 

$

0.29

 

 

$

0.58

 

 

$

0.77

 

Diluted

 

$

0.09

 

 

$

0.29

 

 

$

0.58

 

 

$

0.77

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,607,988

 

 

 

37,586,031

 

 

 

39,723,702

 

 

 

37,515,976

 

Diluted

 

 

40,949,461

 

 

 

37,930,888

 

 

 

40,118,729

 

 

 

37,830,790

 

CADRE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net income

 

$

23,150

 

 

$

29,047

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

12,325

 

 

 

12,385

 

Amortization of original issue discount and debt issue costs

 

 

787

 

 

 

359

 

Amortization of inventory step-up

 

 

3,851

 

 

 

 

Deferred income taxes

 

 

(11,627

)

 

 

1,317

 

Stock-based compensation

 

 

6,255

 

 

 

7,060

 

Remeasurement of contingent consideration

 

 

685

 

 

 

 

Provision for losses on accounts receivable

 

 

757

 

 

 

37

 

Foreign exchange gain

 

 

(788

)

 

 

(243

)

Other loss (gain)

 

 

355

 

 

 

(394

)

Changes in operating assets and liabilities, net of impact of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

162

 

 

 

3,429

 

Inventories

 

 

(2,589

)

 

 

(12,229

)

Prepaid expenses and other assets

 

 

(4,161

)

 

 

(3,131

)

Accounts payable and other liabilities

 

 

(21,096

)

 

 

8,623

 

Net cash provided by operating activities

 

 

8,066

 

 

 

46,260

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(4,381

)

 

 

(4,248

)

Proceeds from disposition of property and equipment

 

 

74

 

 

 

206

 

Business acquisitions, net of cash acquired

 

 

(141,813

)

 

 

 

Net cash used in investing activities

 

 

(146,120

)

 

 

(4,042

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

Proceeds from revolving credit facilities

 

 

5,500

 

 

 

 

Principal payments on revolving credit facilities

 

 

(5,500

)

 

 

 

Proceeds from term loans

 

 

80,000

 

 

 

 

Principal payments on term loans

 

 

(9,562

)

 

 

(7,500

)

Proceeds from insurance premium financing

 

 

 

 

 

3,949

 

Principal payments on insurance premium financing

 

 

(2,187

)

 

 

(2,909

)

Payments for debt issuance costs

 

 

(844

)

 

 

 

Taxes paid in connection with employee stock transactions

 

 

(5,311

)

 

 

(2,725

)

Proceeds from secondary offering, net of underwriter discounts

 

 

91,776

 

 

 

 

Deferred offering costs

 

 

(683

)

 

 

 

Dividends distributed

 

 

(10,395

)

 

 

(8,999

)

Other

 

 

37

 

 

 

 

Net cash provided by (used in) financing activities

 

 

142,831

 

 

 

(18,184

)

Effect of foreign exchange rates on cash and cash equivalents

 

 

521

 

 

 

92

 

Change in cash and cash equivalents

 

 

5,298

 

 

 

24,126

 

Cash and cash equivalents, beginning of period

 

 

87,691

 

 

 

45,286

 

Cash and cash equivalents, end of period

 

$

92,989

 

 

$

69,412

 

Supplemental Disclosure of Cash Flows Information:

 

 

 

 

 

 

Cash paid for income taxes, net

 

$

22,761

 

 

$

7,923

 

Cash paid for interest

 

$

10,523

 

 

$

7,389

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

Accruals and accounts payable for capital expenditures

 

$

112

 

 

$

24

 

CADRE HOLDINGS, INC.

SEGMENT INFORMATION

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

96,493

 

$

17,836

 

$

(4,921

)

 

$

109,408

Cost of goods sold

 

 

60,386

 

 

13,936

 

 

(4,930

)

 

 

69,392

Gross profit

 

$

36,107

 

$

3,900

 

$

9

 

 

$

40,016

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

108,495

 

$

24,208

 

$

(7,589

)

 

$

125,114

Cost of goods sold

 

 

60,380

 

 

18,724

 

 

(7,593

)

 

 

71,511

Gross profit

 

$

48,115

 

$

5,484

 

$

4

 

 

$

53,603

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

343,711

 

$

71,615

 

$

(23,749

)

 

$

391,577

Cost of goods sold

 

 

203,771

 

$

55,216

 

$

(23,704

)

 

 

235,283

Gross profit

 

$

139,940

 

$

16,399

 

$

(45

)

 

$

156,294

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

305,057

 

$

74,594

 

$

(21,702

)

 

$

357,949

Cost of goods sold

 

 

171,204

 

 

57,200

 

 

(21,423

)

 

 

206,981

Gross profit

 

$

133,853

 

$

17,394

 

$

(279

)

 

$

150,968

____________________________

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

Three Months Ended

 

Nine Months Ended

 

Last Twelve

 

 

December 31,

 

September 30,

 

September 30,

 

Months

 

 

2023

 

 

2024

 

 

2023

 

2024

 

2023

 

 

September 30, 2024

Net income

 

$

38,641

 

 

$

3,655

 

 

$

11,053

 

$

23,150

 

$

29,047

 

 

$

32,744

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

15,737

 

 

 

3,763

 

 

 

4,165

 

 

12,325

 

 

12,385

 

 

 

15,677

 

Interest expense

 

 

4,531

 

 

 

1,991

 

 

 

1,073

 

 

5,631

 

 

3,727

 

 

 

6,435

 

Provision for income taxes

 

 

14,283

 

 

 

1,335

 

 

 

4,293

 

 

8,352

 

 

11,463

 

 

 

11,172

 

EBITDA

 

$

73,192

 

 

$

10,744

 

 

$

20,584

 

$

49,458

 

$

56,622

 

 

$

66,028

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and transaction costs(1)

 

 

3,192

 

 

 

515

 

 

 

439

 

 

5,371

 

 

1,132

 

 

 

7,431

 

Other general income(2)

 

 

(92

)

 

 

 

 

 

 

 

 

 

 

 

 

(92

)

Other (income) expense, net(3)

 

 

(936

)

 

 

(1,555

)

 

 

315

 

 

225

 

 

(395

)

 

 

(316

)

Stock-based compensation expense(4)

 

 

9,368

 

 

 

2,104

 

 

 

2,208

 

 

6,255

 

 

7,060

 

 

 

8,563

 

Stock-based compensation payroll tax expense(5)

 

 

234

 

 

 

 

 

 

 

 

441

 

 

220

 

 

 

455

 

LTIP bonus(6)

 

 

860

 

 

 

 

 

 

185

 

 

49

 

 

489

 

 

 

420

 

Amortization of inventory step-up(7)

 

 

 

 

 

1,541

 

 

 

 

 

3,851

 

 

 

 

 

3,851

 

Contingent consideration expense(8)

 

 

 

 

 

176

 

 

 

 

 

685

 

 

 

 

 

685

 

Adjusted EBITDA

 

$

85,818

 

 

$

13,525

 

 

$

23,731

 

$

66,335

 

$

65,128

 

 

$

87,025

 

Adjusted EBITDA margin(9)

16.5

 

%

 

12.4

 

%

 

19.0

%

 

16.9

%

18.2

%

 

____________________________

(1)

Reflects the “Restructuring and transaction costs” line item on our consolidated statement of operations, which primarily includes transaction costs composed of legal and consulting fees. In addition, this line item reflects a $1.0 million transaction fee payable to Kanders & Company, Inc. for services related to the acquisition of ICOR that was accrued for during the year ended December 31, 2023 and a $1.8 million transaction fee paid to Kanders & Company, Inc. for services related to the acquisition of Alpha Safety for the nine months ended September 30, 2024, which are included in related party expense in the Company’s consolidated statements of operations. Kanders & Company, Inc. is a company controlled by Warren B. Kanders, our Chairman of the Board and Chief Executive Officer.

 

(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 contingent consideration expense related to the acquisition of ICOR.

 

(9)

Reflects Adjusted EBITDA / Net sales for the relevant periods.

 

Contact:

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

Source: Cadre Holdings, Inc.

FAQ

What was Cadre Holdings (CDRE) Q3 2024 revenue?

Cadre Holdings reported Q3 2024 net sales of $109.4 million, down from $125.1 million in Q3 2023.

How did the cybersecurity incidents affect CDRE in Q3 2024?

The cybersecurity incidents in July and September 2024 caused temporary interruptions in business operations, impacting production and order fulfillment, leading to reduced revenue and productivity.

What is CDRE's updated guidance for full-year 2024?

Cadre Holdings updated its 2024 guidance to net sales of $560-571 million and Adjusted EBITDA of $101-107 million.

What dividend did CDRE declare for Q3 2024?

Cadre Holdings declared a quarterly cash dividend of $0.0875 per share, payable on November 15, 2024.

Cadre Holdings, Inc.

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