Cadre Holdings, Inc. · NYSE:CDRE
Cadre — Q3 2021 Earnings Presentation
18 slides from Cadre's earnings presentation, Dec 2, 2021
Slide 1: Cadre Holdings Third Quarter 2021
~HADRE HOLDINGS THIRD QUARTER 2021
Slide 2: Forward-Looking Statements
2 FORWARD - LOOKING STATEMENTS Except for historical information, certain matters discussed in this presentation 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
Slide 3: Today's Presenters
TODAY’S PRESENTERS 3 BRAD WILLIAMS President BLAINE BROWERS Chief Financial Officer WARREN KANDERS Chief Executive Officer and Chairman of the Board
Slide 4: Agenda
4 AGENDA • Q3 and YTD Developments • Cadre Overview • Financial Summary • Conclusion and Q&A
Slide 5: Third Quarter 2021 Highlights and YTD Developments
1. Includes $15.2 million loss on extinguishment of debt 2. Includes $12.5 million gain due to earn out and long lived asset sale.. THIRD QUARTER 2021 HIGHLIGHTS AND YTD DEVELOPMENTS 5 Q3 2021 Q3 2020 YTD 2021 YTD 2020 NET SALES $98.7M $105.7M $323.8M $297.0M GROSS MARGIN 39.8% 37.8% 40.6% 38.1% NET
Slide 6: Who Is Cadre?
WHO IS CADRE? 5 BODY ARMOR EOD DUTY GEAR KEY FACTS AND FIGURES 2,380+ 23,000+ 55+ 85+ 104+ 15 Employees First Responders and Federal Agencies that Rely on Cadre’s Products Years in Business Design Engineers and Technicians Countries in which Cadre’s Products are Sold Manufacturing Facilities 6 T OGE
Slide 7: Attractive Tailwinds Driving Demand and Visibility for Cadre's Products
7 8.9 8.8 9.1 9.3 9.4 9.8 9.9 10.3 10.7 11.0 11.6 11.9 12.3 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Public budget proposals (2007 - 2019), Federal Reserve, U.S. Census Bureau, 2008 - 2018 Annual Surveys of State and Local Government Finances 1. Includes Los Angeles,
Slide 8: Mission-Critical Products with Recurring Demand Characteristics
MISSION - CRITICAL PRODUCTS WITH RECURRING DEMAND CHARACTERISTICS Over 80% of Cadre’s products are tied to customer refresh cycles, which drive a predictable revenue stream BODY ARMOR EOD TOOLS & EQUIPMENT DUTY GEAR 5 - to 10 - Year 7 - to 10 - Year 4 - to 7 - Year Refresh Rate Refresh Rate Refresh
Slide 9: Net Sales and Gross Profit
9 $140.1 $152.9 $40.0 $39.3 $113.2 $131.5 $5.9 2019A 2020A Q3 2020 Q3 2021 YTD 2020 YTD 2021 NET SALES AND GROSS PROFIT NET SALES AND GROWTH PROFILE ($MM) GROSS PROFIT ($MM) $401.9 $404.6 $105.7 $98.7 $297.0 $323.8 $18.8 2019A 2020A Q3 2020 Q3 2021 YTD 2020 YTD 2021 $420.7 Gross Margin (%) 34.7% 37.
Slide 10: Adj. EBITDA and Free Cash Flow Generation
10 1. Non - GAAP financial measures. See slide 15 and 16 for definitions and reconciliations to the nearest GAAP measures 2. Adj. EBITDA conversion (%) defined as (Adj. EBITDA – capital expenditure) / Adj. EBITDA ADJ. EBITDA AND FREE CASH FLOW GENERATION $40.6 $53.3 $13.8 $14.7 $38.6 $53.9 2019A 202
Slide 11: Pro Forma 3Q21 Capital Structure
11 PRO FORMA 3Q21 CAPITAL STRUCTURE Actual 9/30/21 ($MM) Actual 9/30 Pro - forma for IPO ($MM) Cash and cash equivalents $ 15,275 $ 29,141 DEBT: Revolver $ 25,500 $ - Current portion of long - term debt 12,904 12,904 Long - term debt 190,113 151,176 Capitalized Discount/Issuance (2,667) (2,147) Tota
Slide 12: Conclusion
12 CONCLUSION 12 Warren Kanders ’ Strong Track Record of Creating Shareholder Value Leadership Position s for Mission - critical Products with Recurring Demand Entrenched Position in Large and Expanding TAM Robust Acquisition Pipeline to Accelerate Growth Strong Free Cash Flow Generation
Slide 13: Appendix
13 APPENDIX
Slide 14: Income Statement
14 INCOME STATEMENT 14 UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net sales $ 98,654 $ 105,735 $ 323,751 $ 297,019 Cost of goods sold 59,346 65,739 192,256 183,869 Gross
Slide 15: 1. Reflects the “Restructuring and transaction costs” line item on our consolidated statement of
15 1. Reflects the “Restructuring and transaction costs” line item on our consolidated statement of operations, which primarily inc lud es transaction costs composed of legal and consulting fees. 2. Reflects the “Other general income” line item on our consolidated statement of operations and include
Slide 16: 1. Reflects the “Restructuring and transaction costs” line item on our consolidated statement of
16 1. Reflects the “Restructuring and transaction costs” line item on our consolidated statement of operations, which primarily inc lud es transaction costs composed of legal and consulting fees. 2. Reflects the “Other general income” line item on our consolidated statement of operations and include
Slide 17: Statement of Cash Flows
17 STATEMENT OF CASH FLOWS 17 UNAUDITED (IN THOUSANDS) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Cash Flows From Operating Activities: Net income $ 8,373 $ 22,673 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amorti
Slide 18: Balance Sheet
18 BALANCE SHEET 18 UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) September 30, 2021 December 31, 2020 ASSETS Current assets Cash and cash equivalents $ 15,275 $ 2,873 Accounts receivable, net of allowance for doubtful accounts of $624 and $1,113, respectively 42,230 43,646 Inventorie