Cadre Holdings, Inc. · NYSE:CDRE
Cadre — Q1 2022 Earnings Presentation
20 slides from Cadre's earnings presentation, May 12, 2022
Slide 1: First Quarter 2022
ADRE fal) (EID) | NGS FIRST QUARTER 5 2022
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 • Q1 Review • Business Overview • Financial Summary • Full Year Outlook • Conclusion and Q&A
Slide 5: Continued Execution in Q1
5 CONTINUED EXECUTION IN Q1 5 Commentary Pricing Growth: ✅ Significantly exceeded our 1% target above material inflation Adjusted EBITDA Conversion: ✅ Generated strong EBITDA conversion of 92% in Q1 Q1 Mix: ❌ Duty gear and EOD volume down, offset by Distribution segment growth Orders Backlog: ✅ Incr
Slide 6: Macro Tailwinds Support Long Term Sustainable Growth Opportunity
6 MACRO TAILWINDS SUPPORT LONG TERM SUSTAINABLE GROWTH OPPORTUNITY Two - thirds of all NATO countries spend less than 2% of GDP targets on defense and security Amidst current geopolitical turmoil, European leaders have advocated for significant increases in defense budgets Police protection expendit
Slide 7: Latest Market Trends
7 7 • Budgets are healthy but police departments are struggling to fill open positions • Watching customer priorities closely amid War in Ukraine • Inquiries continue but no large opportunities to provide our safety and survivability equipment yet • Experiencing extended lead times with electronic c
Slide 8: Cadre's Key M&A Criteria
8 20 20 13 CADRE'S KEY M&A CRITERIA Niche market No large - cap competition Leading market position Cost structure where material > labor Leading and defensible technology High cost of substitution Mission - critical to customer Recurring revenue profile Asset - light Business Financial Market Stron
Slide 9: Cyalume Acquisition and Integration Priorities
9 21 21 Over 60 years as a leading manufacturer of chemical light solutions .. Preeminent supplier of light sticks, chemi - luminescent ammunition and infra - red devices to US, NATO military forces, and commercial and law enforcement markets .. KEY M&A CRITERIA MET Leading market position Mission -
Slide 10: First Quarter 2022 Financial Performance
FIRST QUARTER 2022 FINANCIAL PERFORMANCE 10 Q1 2022 Q1 2021 NET SALES $104.4M $110.5M GROSS MARGIN 38.5% 39.8% NET (LOSS) INCOME ($10.2M) / ($0.30) per share $6.9M / $0.25 per share ADJUSTED EBITDA 1 $14.2M $20.2M ADJUSTED EBITDA MARGIN 1 13.6% 18.3% 1. Non - GAAP financial measures. See slide 17 fo
Slide 11: Net Sales and Adjusted EBITDA
11 Net Sales / Adj. EBITDA Full Year Guidance for Net Sales / Adj. EBITDA NET SALES AND ADJUSTED EBITDA NET SALES ($MM) $427.3M $104.4M 1Q21 FY 2022 Guidance Range $444M to $452M 2021 2022 YTD % Y/Y GROWTH 4.8 % at Guidance Midpoint ADJ. EBITDA 1 ($MM) $71.4m $14.2M 1Q21 FY 2022 Guidance Range $72.5
Slide 12: 1Q22 Capital Structure
12 1Q22 CAPITAL STRUCTURE 1. Non - GAAP financial measures. See slide 17 definitions and reconciliations to the nearest GAAP measures March 31, 2022 (in thousands) Cash and cash equivalents $ 9,877 Debt: Revolver $ — Current portion of long - term debt 11,700 Long - term debt 146,599 Capitalized dis
Slide 13: 2022 Management Outlook
13 2022 MANAGEMENT OUTLOOK Prior NET SALES $434M to $441M Adj. EBITDA $70.0M to $75.5M Adj. EBITDA Conversion 92% to 95% 2022 GUIDANCE Current NET SALES $444M to $452M Adj. EBITDA $72.5M to $77.5M Adj. EBITDA Conversion 92% to 95%
Slide 14: Conclusion
CONCLUSION 14 Accelerate Organic Revenue Growth Pursue M&A Opportunities Continuously Improve Gross and Adj. EBITDA Margins
Slide 15: Appendix
APPENDIX ~ Sie
Slide 16: Statement of Operations
16 STATEMENT OF OPERATIONS 16 UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended March 31, 2022 2021 Net sales $ 104,406 $ 110,536 Cost of goods sold 64,217 66,577 Gross profit 40,189 43,959 Operating expenses Selling, general and administrative 53,950 28,051 Restructuri
Slide 17: Non-GAAP Reconciliation Footnotes
17 1. Reflects the “Restructuring and transaction costs” line item on our consolidated statements of operations, which primarily in clu des transaction costs composed of legal and consulting fees. 2. Reflects losses incurred in connection with the August 2021 debt refinance. 3. Reflects the “Other e
Slide 18: Statement of Cash Flows
18 STATEMENT OF CASH FLOWS 18 UNAUDITED (IN THOUSANDS) Continued on next slide Three Months Ended March 31, 2022 2021 Cash Flows From Operating Activities: Net (loss) income $ (10,165) $ 6,864 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortiza
Slide 19: Statement of Cash Flows - Continued
19 STATEMENT OF CASH FLOWS - CONTINUED 19 UNAUDITED (IN THOUSANDS) Three Months Ended March 31, 2022 2021 Cash Flows From Financing Activities: Proceeds from revolving credit facilities — 88,593 Principal payments on revolving credit facilities — (88,593) Principal payments on term loans (2,506) (56
Slide 20: Balance Sheet
20 BALANCE SHEET 20 UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) March 31, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 9,877 $ 33,857 Accounts receivable, net of allowance for doubtful accounts of $749 and $645, respectively 52,001 48,344 Inventories 69,4