Cadre Holdings, Inc. · NYSE:CDRE
Cadre — Q1 2025 Earnings Presentation
22 slides from Cadre's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025
LADRE HOLDINGS FIRST QUARTER 2025
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 • Q1 Highlights • Business Overview • Financial Summary • Full Year Outlook • Conclusion and Q&A 4
Slide 5: Continued Execution in Q1
CONTINUED EXECUTION IN Q1 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 Q1 Mix: − Less favorable mix driven by Alpha Safety and EOD volume Orders B
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 demonstrated commitment to prioritizing public safety Geopolitical • Continued expectation that demand for EOD products after global conflicts de- Landscape escalate will lead to future opportunities Consumer • Monitoring b
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: Acquisition of Carr's Engineering Division
ACQUISITION OF CARR’S ENGINEERING DIVISION OVERVIEW & STRATEGIC RATIONALE CADRE’S KEY M&A CRITERIA MET • In April 2025 completed acquisition of Carr’s Engineering division from Carr’s Group plc for an • Leading market position enterprise value of £75 million • Set of leading, niche global brands pro
Slide 10: Q1 Financial Results
Q1 Financial Results 10
Slide 11: First Quarter 2025 Highlights
FIRST QUARTER 2025 HIGHLIGHTS Q1 2025 Q4 2024 Q1 2024 NET SALES $130.1M $176.0M $137.9M GROSS MARGIN 43.1% 43.9% 41.8% $9.2M / $13.0M $6.9M / NET INCOME $0.23 per / $0.32 $0.18 per diluted share per diluted share diluted share ADJUSTED EBITDA 1 $20.5M $38.5M $24.5M ADJUSTED EBITDA MARGIN 1 15.8% 21.
Slide 12: Net Sales and Adjusted EBITDA
NET SALES AND ADJUSTED EBITDA NET SALES ($MM) ADJ. EBITDA1 ($MM) % CAGR % CAGR 14.5 % % Y/Y GROWTH 16.8% % Y/Y GROWTH 11.5% at guidance 11.6% midpoint at guidance FY 2025 midpoint FY 2024 Guidance FY 2025 $567.6M Range Guidance FY 2024 $618M to Range $104.8M $648M $112M to $122M FY 2023 FY 2023 $482
Slide 13: Q1 2025 Capital Structure
Q1 2025 CAPITAL STRUCTURE March 31, 2025 (in thousands) Cash and cash equivalents $ 133,431 Debt: Revolver $ — Current portion of long-term debt 11,380 Long-term debt 211,197 Capitalized discount/issuance costs (2,063) Total debt, net $ 220,514 Net debt (Total debt net of cash) $ 87,083 Total debt /
Slide 14: 2025 Management Outlook
2025 MANAGEMENT OUTLOOK 2025 GUIDANCE • Reaffirms prior organic guidance with higher midpoints reflective of the NET SALES completed acquisition of $618M to $648M Carr’s Engineering Division • Assumes Engineering Division ADJ. EBITDA Contributions of ~$46M Net Sales and ~$6.5M EBITDA $112M to $122M
Slide 15: Conclusion
CONCLUSION Execution in line with strategic objectives in Q1 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 16
Slide 17: Balance Sheet
BALANCE SHEET UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 133,431 $ 124,933 Accounts receivable, net of allowance for doubtful accounts of $858 and $876, respectively 82,902 93,523 Inventories 91,786
Slide 18: Statement of Operations
STATEMENT OF OPERATIONS UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended March 31, 2025 2024 Net sales $ 130,106 $ 137,860 Cost of goods sold 73,975 80,232 Gross profit 56,131 57,628 Operating expenses Selling, general and administrative 41,753 40,719 Restructuring and
Slide 19: Statement of Cash Flows
STATEMENT OF CASH FLOWS UNAUDITED (IN THOUSANDS) Year Ended March 31, 2025 2024 Cash Flows From Operating Activities: Net income $ 9,248 $ 6,928 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,856 3,942 Amortization of original issue
Slide 20: Statement of Cash Flows – Continued
STATEMENT OF CASH FLOWS – CONTINUED UNAUDITED (IN THOUSANDS) Year Ended March 31, 2025 2024 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
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (IN THOUSANDS) Year ended Three Months Ended March 31, LTM December 31, 2024 2025 2024 March 31, 2025 Net income $ 36,133 $ 9,248 $ 6,928 $ 38,453 Add back: Depreciation and amortization 16,420 3,856 3,942 16,334 Interest expense 7,822 2,231 1,637 8,416 Provision for income t
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)