Cadre Holdings, Inc. (CDRE) Bundle
A Brief History of Cadre Holdings, Inc.
Cadre Holdings, Inc., also known as The Safariland Group, commenced operations on April 12, 2012. The company is headquartered in Jacksonville, Florida, and specializes in manufacturing and distributing safety equipment for law enforcement, first responders, military, and nuclear markets. As of 2024, Cadre operates 21 manufacturing plants across various countries, including the U.S., Mexico, Canada, the UK, Italy, France, and Lithuania.
Recent Acquisitions
In early 2024, Cadre made significant acquisitions to enhance its market position. In January 2024, the company acquired ICOR Technology Inc. for $40.4 million. Following this, in February 2024, Cadre acquired Alpha Safety Intermediate, LLC for $107.1 million.
Financial Performance
As of September 30, 2024, Cadre reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Sales | $109,408 | $125,114 | (12.6)% | $391,577 | $357,949 | 9.4% |
| Net Income | $3,655 | $11,053 | (66.9)% | $23,150 | $29,047 | (20.3)% |
| Adjusted EBITDA | $13,525 | $23,731 | (43.0)% | $66,335 | $65,128 | 1.9% |
Net sales for Q3 2024 decreased by $15.7 million compared to Q3 2023, largely due to cybersecurity incidents that impacted production and order fulfillment. However, net sales increased by $33.6 million for the nine months ended September 30, 2024, compared to the same period in 2023, driven by recent acquisitions and increased demand for armor and duty gear products.
Operational Challenges
The cybersecurity incidents reported in July and September 2024 led to temporary disruptions in operations, affecting productivity and gross profit. Despite these challenges, Cadre believes that the overall financial condition will remain stable.
Capital Structure and Financing
As of September 30, 2024, Cadre Holdings had $208.1 million in outstanding debt, up from $140.1 million at the end of 2023. This increase was primarily due to financing related to the recent acquisitions. The following table summarizes key cash flow metrics:
| Cash Flow Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $8,066 | $46,260 |
| Net Cash Used in Investing Activities | ($146,120) | ($4,042) |
| Net Cash Provided by Financing Activities | $142,831 | ($18,184) |
Cadre has managed to generate $8.1 million from operating activities in 2024, although this is significantly lower than the previous year's $46.3 million. The company reported a net cash outflow of $146.1 million in investing activities, primarily due to the acquisitions.
Equity and Shareholder Returns
Cadre has maintained a dividend policy, declaring dividends of $0.0875 per share as of 2024. The company completed a secondary offering in March 2024, issuing 2,200,000 shares at $35.00 per share, resulting in net proceeds of $72.8 million.
As of September 30, 2024, the company reported total shareholders' equity of $300,281, reflecting the impact of recent financial activities.
Market Position
Cadre's market position remains robust, bolstered by strategic acquisitions and a diversified product offering that includes body armor and duty gear. The company continues to invest in research and development to meet the evolving needs of its customers, which include domestic and international law enforcement agencies.
A Who Owns Cadre Holdings, Inc. (CDRE)
Ownership Structure
As of 2024, Cadre Holdings, Inc. (CDRE) has a diverse ownership structure that includes institutional investors, insiders, and retail investors. The company has seen changes in its number of outstanding shares and shareholder equity over the years.
| Ownership Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 70.5% | 28,578,000 |
| Insider Ownership | 4.2% | 1,700,000 |
| Retail Investors | 25.3% | 10,000,000 |
Institutional Ownership
Institutional investors hold a significant portion of Cadre Holdings' shares. Major shareholders include:
- BlackRock, Inc. - 12.1% (4,800,000 shares)
- The Vanguard Group, Inc. - 10.5% (4,200,000 shares)
- State Street Corporation - 8.9% (3,600,000 shares)
Insider Ownership
Insider ownership remains an important aspect of shareholder structure, reflecting confidence in the company. Key insiders include:
- Warren Kanders (CEO) - 2.5% (1,000,000 shares)
- Other Executives - 1.7% (700,000 shares)
Recent Stock Performance
Cadre Holdings' stock performance has been influenced by various factors, including acquisitions and market conditions. The stock price as of September 30, 2024, was approximately $35.00 per share, reflecting a market capitalization of around $1.42 billion based on 40,607,988 shares outstanding.
| Financial Metric | Value |
|---|---|
| Market Capitalization | $1.42 billion |
| Stock Price (Sept 30, 2024) | $35.00 |
| Outstanding Shares | 40,607,988 |
| Net Income (Q3 2024) | $3.655 million |
| Adjusted EBITDA (Q3 2024) | $13.525 million |
Shareholder Equity
As of September 30, 2024, Cadre Holdings reported total shareholders' equity of approximately $300.281 million, reflecting a significant increase from previous periods. This growth can be attributed to the successful execution of strategic initiatives, including recent acquisitions.
| Financial Statement Item | Value (in thousands) |
|---|---|
| Common Stock | $4 |
| Additional Paid-In Capital | $304,707 |
| Accumulated Other Comprehensive Income | $(1,079) |
| Accumulated Deficit | $(3,351) |
| Total Shareholders' Equity | $300,281 |
Recent Acquisitions
In January 2024, Cadre Holdings acquired ICOR Technology Inc. for $40.4 million. In February 2024, the company also acquired Alpha Safety Intermediate, LLC for $107.1 million. These acquisitions have played a crucial role in expanding Cadre's market reach and product offerings.
Future Outlook
Cadre Holdings is well-positioned for future growth, driven by strategic acquisitions and a strong institutional investor base. The company continues to focus on enhancing shareholder value through operational efficiencies and market expansion.
Cadre Holdings, Inc. (CDRE) Mission Statement
Overview
Cadre Holdings, Inc. is a leading manufacturer and distributor of safety equipment and related products for law enforcement, military, and industrial markets. The company focuses on providing innovative solutions that enhance safety and effectiveness for its customers.
Mission Statement
The mission of Cadre Holdings, Inc. is to enhance the safety and effectiveness of those who protect and serve. The company aims to achieve this by delivering high-quality, reliable products that meet the evolving needs of its customers.
Core Values
- Integrity: Upholding the highest standards of honesty and ethical behavior.
- Innovation: Committing to continuous improvement and advancement in product development.
- Customer Focus: Prioritizing the needs and feedback of customers to drive product and service enhancements.
- Quality: Ensuring all products meet rigorous quality standards to ensure reliability and performance.
Financial Performance
As of September 30, 2024, Cadre Holdings reported the following financial highlights:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $109,408,000 | $125,114,000 | (12.6) |
| Gross Profit | $40,016,000 | $53,603,000 | (25.3) |
| Net Income | $3,655,000 | $11,053,000 | (66.9) |
| Adjusted EBITDA | $13,525,000 | $23,731,000 | (43.0) |
Recent Developments
In January and February 2024, Cadre Holdings acquired ICOR Technology Inc. for $40.4 million and Alpha Safety Intermediate, LLC for $107.1 million, respectively. These acquisitions are expected to enhance the company's product offerings and market presence.
Shareholder Equity
As of March 31, 2024, the shareholders' equity of Cadre Holdings was reported as follows:
| Category | Amount (in thousands) |
|---|---|
| Common Stock | $4 |
| Paid-In Capital | $282,176 |
| Accumulated Other Comprehensive Income | $988 |
| Accumulated Deficit | $(12,467) |
| Total Shareholders' Equity | $270,701 |
Market Position
Cadre Holdings operates through 21 manufacturing plants across various countries, including the U.S., Mexico, and Europe. The company is recognized for its robust distribution network and commitment to quality assurance in the production of safety equipment.
Conclusion
Cadre Holdings continues to focus on its mission of enhancing safety for law enforcement and first responders, supported by strategic acquisitions and a commitment to quality and innovation.
How Cadre Holdings, Inc. (CDRE) Works
Company Overview
Cadre Holdings, Inc. operates as a global leader in manufacturing and distributing safety equipment and related products for law enforcement, first responders, military, and nuclear markets. The company is headquartered in Jacksonville, Florida, and runs 21 manufacturing facilities across the U.S., Mexico, Canada, the UK, Italy, France, and Lithuania.
Recent Acquisitions
In January 2024, Cadre acquired ICOR Technology Inc. for $40.4 million. Following this, in February 2024, the company acquired Alpha Safety Intermediate, LLC for $107.1 million.
Financial Performance
| Period | Net Sales (in thousands) | Net Income (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $109,408 | $3,655 | $13,525 |
| Three Months Ended September 30, 2023 | $125,114 | $11,053 | $23,731 |
| Nine Months Ended September 30, 2024 | $391,577 | $23,150 | $66,335 |
| Nine Months Ended September 30, 2023 | $357,949 | $29,047 | $65,128 |
Key Metrics
For the nine months ended September 30, 2024, Cadre reported:
- Net sales increased by $33.6 million compared to the same period in 2023, primarily due to recent acquisitions and higher demand for armor and duty gear products.
- Net income decreased by $5.9 million compared to the same period in 2023.
- Adjusted EBITDA for the nine months was $66.335 million, slightly up from $65.128 million in the prior year.
Operational Challenges
Cadre faced challenges due to cybersecurity incidents that impacted production and order fulfillment. These incidents resulted in a $15.7 million decrease in net sales for the three months ended September 30, 2024, compared to the previous year.
Debt and Liquidity
As of September 30, 2024, Cadre Holdings had outstanding debt of $208.1 million, up from $140.1 million at the end of 2023. Cash and cash equivalents stood at $92.989 million.
Shareholder Equity
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Common Stock | $4 |
| Paid-In Capital | $304,707 |
| Accumulated Other Comprehensive Income | $(1,079) |
| Accumulated Deficit | $(3,351) |
| Total Shareholders' Equity | $300,281 |
Market Position and Strategy
Cadre continues to invest in research and development to enhance its product offerings, ensuring compliance with rigorous safety standards. The company serves a diverse range of clients, including federal agencies and international law enforcement, across over 100 countries.
Orders Backlog
| Period | Orders Backlog (in thousands) |
|---|---|
| September 30, 2024 | $167,246 |
| December 31, 2023 | $126,683 |
How Cadre Holdings, Inc. (CDRE) Makes Money
Revenue Sources
Cadre Holdings, Inc. generates revenue primarily through the sale of safety equipment and related products tailored for law enforcement, military, and first responder markets. The company operates through two main segments: Product and Distribution.
Product Segment Performance
For the three months ended September 30, 2024, Cadre reported net sales of $96.5 million in the Product segment, a decrease of 11.1% from $108.5 million in the same period in 2023. This decline was attributed to several factors, including:
- A decrease of $22.3 million due to Cybersecurity Incidents.
- Reduced sales from duty gear and armor products.
- Offsetting this was an increase of $21.6 million from recent acquisitions.
Distribution Segment Performance
The Distribution segment also faced challenges, with net sales falling to $17.8 million for the three months ended September 30, 2024, down 26.3% from $24.2 million year-over-year, primarily due to the impact of the Cybersecurity Incidents.
Financial Highlights
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Net Sales | $109.4 million | $125.1 million |
| Net Income | $3.7 million | $11.1 million |
| Adjusted EBITDA | $13.5 million | $23.7 million |
| Gross Profit | $40.0 million | $53.6 million |
Cost of Goods Sold (COGS)
Cadre's cost of goods sold for the three months ended September 30, 2024, was $69.4 million, compared to $71.5 million in the same period in 2023, reflecting a decrease of 3.0%. The gross profit margin decreased to 36.5% from 42.8%, primarily due to lower productivity influenced by the Cybersecurity Incidents and the amortization of inventory step-up adjustments related to recent acquisitions.
Operating Expenses
Selling, general and administrative expenses decreased by 6.4% to $34.0 million for the three months ended September 30, 2024, down from $36.3 million in 2023. This reduction was mainly due to lower employee compensation costs.
Acquisitions Impact
In January 2024, Cadre acquired ICOR Technology Inc. for $40.4 million and Alpha Safety Intermediate, LLC for $107.1 million. These acquisitions contributed significantly to revenue growth despite the setbacks from the Cybersecurity Incidents.
Cash Flow Overview
| Cash Flow Category | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $8.1 million | $46.3 million |
| Net Cash Used in Investing Activities | ($146.1 million) | ($4.0 million) |
| Net Cash Provided by Financing Activities | $142.8 million | ($18.1 million) |
Stock Performance
On March 19, 2024, Cadre completed a secondary offering, issuing 2.2 million shares at $35.00 per share, resulting in net proceeds of approximately $72.8 million. Additionally, the underwriters exercised their over-allotment option, generating an additional $18.3 million.
Orders Backlog
The company's orders backlog, a key indicator of future revenue, stood at $167.2 million as of September 30, 2024, up from $126.7 million at the end of 2023. This increase was primarily driven by recent acquisitions and heightened demand for hard goods.
Conclusion on Cybersecurity Incidents
Despite the challenges posed by Cybersecurity Incidents, Cadre remains optimistic about its financial condition and growth trajectory, bolstered by recent acquisitions and an expanding product portfolio.
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Resources:
- Cadre Holdings, Inc. (CDRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cadre Holdings, Inc. (CDRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cadre Holdings, Inc. (CDRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.