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Dec 31, 2023

Cadre Holdings Q4 2023 Earnings Report

Cadre Holdings' Q4 2023 earnings were reported, revealing a mix of increased revenue and strategic acquisitions.

Key Takeaways

Cadre Holdings reported Q4 2023 net sales of $124.6 million compared to $123.6 million for the same quarter in the prior year. Net income for the quarter was $9.6 million, or $0.25 per diluted share, compared to $6.6 million in the prior year. The company's Adjusted EBITDA for the quarter was $20.7 million, representing a 16.6% margin.

Net sales for the fourth quarter reached $124.6 million.

Gross profit margin for the fourth quarter was 39.9%.

Net income for the fourth quarter was $9.6 million, or $0.25 per diluted share.

Adjusted EBITDA for the fourth quarter was $20.7 million, with a margin of 16.6%.

Total Revenue
$125M
Previous year: $124M
+0.8%
EPS
$0.25
Previous year: $0.17
+47.1%
Adjusted EBITDA
$20.7M
Previous year: $22.4M
-7.6%
Adjusted EBITDA Margin
16.6%
Previous year: 18.1%
-8.3%
Gross Profit Margin
39.9%
Previous year: 39.2%
+1.8%
Gross Profit
$49.8M
Previous year: $48.5M
+2.5%
Cash and Equivalents
$87.7M
Previous year: $45.3M
+93.6%
Free Cash Flow
$24.5M
Previous year: $15.4M
+59.4%
Total Assets
$431M
Previous year: $392M
+10.0%

Cadre Holdings

Cadre Holdings

Cadre Holdings Revenue by Segment

Forward Guidance

For the full year 2024, Cadre expects to generate net sales in the range of $553 million to $572 million and Adjusted EBITDA in the range of $104 million and $108 million. We expect capital expenditures to be in the range of $8 million to $10 million.

Positive Outlook

  • Anticipates net sales between $553 million and $572 million for full year 2024.
  • Expects Adjusted EBITDA to be in the range of $104 million to $108 million for full year 2024.
  • Capital expenditures are projected to be between $8 million and $10 million.
  • Strategic acquisitions of ICOR Technology and Alpha Safety are expected to contribute to growth.
  • Ongoing implementation of the Cadre operating model and strong secular tailwinds are expected to drive performance.

Challenges Ahead

  • Has not provided net income guidance due to forecasting difficulty.
  • Logistical challenges related to supply chain disruptions and delays
  • The impact of inflation
  • Increased expenses associated with being a public company
  • Our ability to integrate the operations of the businesses we have acquired, including, without limitation, ICOR Technology Inc. and Alpha Safety, and may acquire in the future

Revenue & Expenses

Visualization of income flow from segment revenue to net income