On August 9, 2024, Cadre Holdings Inc (CDRE, Financial) released its 8-K filing reporting robust financial results for the second quarter of 2024. Cadre Holdings Inc is engaged in the design and manufacture of a diversified product portfolio of critical safety and survivability equipment to protect first responders, federal agencies, outdoor recreation, and personal protection markets. The Company's equipment provides critical protection to allow its users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. Its operations are comprised of two reportable segments: Products and Distribution.
Performance Overview
Cadre Holdings Inc (CDRE, Financial) reported net sales of $144.3 million for the quarter ended June 30, 2024, surpassing the analyst estimate of $142.05 million. This represents a 19% increase from the $121.1 million reported in the same quarter of 2023. The company's net income also saw a 14% year-over-year increase, reaching $12.6 million compared to $11.0 million in the prior year period.
Key Financial Achievements
Cadre Holdings Inc (CDRE, Financial) achieved an adjusted EBITDA of $28.3 million for Q2 2024, reflecting a 24% increase from $22.8 million in Q2 2023. The adjusted EBITDA margin improved to 19.6%, up from 18.8% in the previous year. This improvement underscores the company's effective cost management and operational efficiency.
“Cadre delivered strong second quarter results, driven by outstanding execution in line with our strategic objectives, as well as significant demand for our mission-critical safety equipment,” said Warren Kanders, CEO and Chairman.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $144.3 million | $121.1 million |
| Gross Profit | $58.7 million | $50.7 million |
| Net Income | $12.6 million | $11.0 million |
| Adjusted EBITDA | $28.3 million | $22.8 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Cadre Holdings Inc (CDRE, Financial) reported total assets of $620.6 million, up from $431.2 million as of December 31, 2023. The increase in assets was primarily driven by recent acquisitions and higher demand for armor and duty gear products. The company's cash and cash equivalents stood at $105.9 million, reflecting a strong liquidity position.
Challenges and Outlook
Despite the positive performance, Cadre Holdings Inc (CDRE, Financial) faced challenges due to a cyber incident in July 2024, which temporarily limited production at several facilities. The company has since contained the incident and resumed operations. As a result, Cadre has adjusted its full-year guidance for 2024, now expecting net sales in the range of $571 million to $582 million and adjusted EBITDA between $103 million and $109 million.
“Supported by Cadre’s entrenched positions and favorable industry trends across our law enforcement, first responder, military, and nuclear end-markets, we continue to see attractive long-term growth opportunities throughout the business,” added Mr. Kanders.
Conclusion
Cadre Holdings Inc (CDRE, Financial) has demonstrated strong financial performance in Q2 2024, exceeding analyst estimates and showing significant year-over-year growth in net sales and net income. The company's strategic acquisitions and increased demand for its products have contributed to its robust results. However, challenges such as the recent cyber incident highlight the importance of maintaining strong cybersecurity measures. Investors will be keen to see how Cadre navigates these challenges and capitalizes on future growth opportunities.
Explore the complete 8-K earnings release (here) from Cadre Holdings Inc for further details.
