Cadre Holdings, Inc. · NYSE:CDRE
Cadre — Q4 2024 Earnings Presentation
22 slides from Cadre's earnings presentation, Mar 12, 2025
Slide 1: Fourth Quarter 2024
LADRE HOLDINGS FOURTH QUARTER i= 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Please note that in this presentation 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
Slide 3: Today's Presenters
TODAY’S PRESENTERS WARREN KANDERS BRAD WILLIAMS BLAINE BROWERS Chief Executive Officer and President Chief Financial Officer Chairman of the Board 4
Slide 4: Agenda
AGENDA • Q4 and FY Highlights • Business Overview • Financial Summary • Full Year Outlook • Conclusion and Q&A 4
Slide 5: Continued Execution in Q4 and YTD
CONTINUED EXECUTION IN Q4 AND YTD Cadre continues to deliver on strategic objectives and capitalize on favorable market trends driving strong demand for mission-critical safety equipment Commentary: Pricing Growth: ✓ Exceeded target Q4 Mix: ✓ Favorable mix driven by Duty Gear volume Orders Backlog:
Slide 6: Long-Term Industry Tailwinds Supporting Sustainable Growth Opportunity
LONG-TERM INDUSTRY TAILWINDS SUPPORTING SUSTAINABLE GROWTH OPPORTUNITY Public Safety Tailwinds Police protection expenditures have continued to trend upward even during previous financial and industrial recessions Major US cities continue to increase police budgets European leaders continue to advoc
Slide 7: Latest Market Trends
LATEST MARKET TRENDS North American Law Enforcement • New administration has shown a continued commitment to prioritizing public safety Geopolitical Landscape • Focused on planning contingencies in a rapidly changing environment Consumer • Second consecutive year of high-single digit growth in Consu
Slide 8: Key M&A Criteria
KEY M&A CRITERIA Business Leading market position Cost structure where material > labor High cost of substitution Leading and defensible technology Mission-critical to customer Strong brand recognition Financial Recurring revenue profile Asset-light Attractive ROIC Market Niche market No large-cap c
Slide 9: Agreement to Acquire Carr's Engineering Division
AGREEMENT TO ACQUIRE CARR’S ENGINEERING DIVISION OVERVIEW & STRATEGIC RATIONALE CADRE’S KEY M&A CRITERIA MET • In January 2025 announced agreement to acquire the Carr’s Engineering division from Carr’s • Leading market position Group plc for an enterprise value of £75mm • Subject to regulatory appro
Slide 10: Q4 Financial Results
Q4 Financial Results 10
Slide 11: Fourth Quarter and Full Year 2024 Highlights
FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS Q4 2024 Q4 2023 FY 2024 FY 2023 NET SALES $176.0M $124.6M $567.6M $482.5M GROSS MARGIN 43.9% 39.9% 41.1% 41.6% $13.0M $9.6M $36.1M $38.6M NET INCOME / $0.32 / $0.25 / $0.90 / $1.02 per diluted share per diluted share per diluted share per diluted share AD
Slide 12: Net Sales and Adjusted EBITDA
NET SALES AND ADJUSTED EBITDA NET SALES ($MM) ADJ. EBITDA1 ($MM) % CAGR % CAGR 13.2% % Y/Y 10.3% % Y/Y GROWTH GROWTH 4.9% at guidance 3.3% at $104.8 midpoint guidance $567.6 FY 2025 midpoint FY 2025 Guidance $85.8 $482.5 Guidance Range Range $105M to $572M to $115M $601M 2023 2024 2025 2023 2024 202
Slide 13: Q4 2024 Capital Structure
Q4 2024 CAPITAL STRUCTURE December 31, 2024 (in thousands) Cash and cash equivalents $ 124,933 Debt: Revolver $ — Current portion of long-term debt 11,375 Long-term debt 214,001 Capitalized discount/issuance costs (2,171) Total debt, net $ 223,205 Net debt (Total debt net of cash) $ 98,272 Total deb
Slide 14: 2025 Management Outlook
2025 MANAGEMENT OUTLOOK 2025 GUIDANCE NET SALES $572M to $601M ADJ. EBITDA $105M to $115M CAPITAL EXPENDITURES $7M to $9M 14 1. A non-GAAP financial measure. See slide 21 for definitions and reconciliations to the nearest GAAP measures
Slide 15: Conclusion
CONCLUSION Execution in line with strategic objectives in Q4 Ongoing implementation of Cadre operating model Committed to improving gross and Adj. EBITDA margins Continuously focused on M&A opportunities Capitalizing on strong macro tailwinds driving demand and visibility for Cadre's mission-critica
Slide 16: Appendix
APPENDIX & - me Rio
Slide 17: Balance Sheet
BALANCE SHEET UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) December 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 124,933 $ 87,691 Accounts receivable, net 93,523 58,360 Inventories 82,351 80,976 Prepaid expenses 19,027 11,930 Other current assets 7,737
Slide 18: Statement of Operations
STATEMENT OF OPERATIONS UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net sales $ 175,984 $ 124,583 $ 567,561 $ 482,532 Cost of goods sold 98,797 74,825 334,080 281,806 Gross profit 77,187 49,758 233,481 200,7
Slide 19: Statement of Cash Flows
STATEMENT OF CASH FLOWS UNAUDITED (IN THOUSANDS) Year Ended December 31, 2024 2023 Cash Flows From Operating Activities: Net income $ 36,133 $ 38,641 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 16,420 15,737 Amortization of original
Slide 20: Statement of Cash Flows - Continued
STATEMENT OF CASH FLOWS - CONTINUED UNAUDITED (IN THOUSANDS) Year Ended December 31, 2024 2023 Cash Flows From Financing Activities: Proceeds from revolving credit facilities 5,500 — Principal payments on revolving credit facilities (5,500) — Proceeds from term loans 129,422 — Principal payments on
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (IN THOUSANDS) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income $ 12,983 $ 9,594 $ 36,133 $ 38,641 Add back: Depreciation and amortization 4,095 3,352 16,420 15,737 Interest expense 2,191 804 7,822 4,531 Provision for income taxes 9,733 2
Slide 22: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The presentation contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), (ii)