NYSE$CDRE

Cadre Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Increased quarterly revenue, net income, and gross margin sequentially and year-over-year and achieved second consecutive quarter of record adjusted EBITDA and adjusted EBITDA margin.

Cadre Holdings reported strong Q3 2023 results with increased revenue, net income, and gross margin year-over-year. The company achieved a record adjusted EBITDA margin and raised its full-year adjusted EBITDA guidance range.

  • Net sales reached $125.1 million for the third quarter.
  • Gross profit margin was 42.8% for the third quarter.
  • Net income was $11.1 million, or $0.29 per diluted share, for the third quarter.
  • Adjusted EBITDA was $23.7 million for the third quarter, with an Adjusted EBITDA margin of 19.0%.

Headline financials

Total Revenue

$125M

Previous: $112M+12.2%
EPS (adj)

$0.29

Previous: $0.13+123.1%
Adjusted EBITDA

$23.7M

Previous: $20.7M+14.5%
Adjusted EBITDA Margin

19.0%

Previous: 18.6%+2.2%
Gross Profit Margin

42.8%

Previous: 39.2%+9.2%
Capital Expenditures

-$4.25M

Previous: -$2.94M-44.6%
Free Cash Flow

$6.81M

Previous: $2M+239.7%
Net Income

$11.1M

Previous: $4.94M+123.7%
Operating Income

$16.7M

Previous: $10.3M+62.2%
Gross Profit

$53.6M

Previous: $43.7M+22.5%
Cash & Equivalents

$69.4M

Previous: $36.4M+91.0%
Total Assets

$421M

Previous: $375M+12.1%
Stock-Based Comp

$2.21M

Previous: $2.66M-17.0%

Revenue & EPS history

Cadre Holdings · Revenue · Quarterly

$125M

Q3 2023+12.2%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Cadre Holdings · $24.2M total across 1 segment · Q3 2023

  • Distribution
    $24.2M-67.2%

Forward guidance

Cadre expects to generate net sales in the range of $477 million to $481 million and Adjusted EBITDA in the range of $82 million to $85 million for the full year 2023, with capital expenditures expected to be in the range of $7.0 million to $8.0 million.

Tailwinds

  • Expects record full-year 2023 net sales between $477 to $481 Million.
  • Raises 2023 full-year Adjusted EBITDA guidance range to $82 to $85 Million.
  • Strong, sustained demand for mission-critical safety and survivability equipment.
  • Implementation of the Cadre operating model, focused on constant improvement and the optimization of outcomes.
  • Broad push to prioritize public safety in both the US and internationally.

Headwinds

  • Changes to global, social and political economic conditions.
  • Spending patterns of government agencies.
  • Competitive pressures.
  • Logistical challenges related to disruptions and delays.
  • Risks of doing business in the markets in which we operate, including foreign countries.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

64%

14 / 22 earnings

Positive

+20.3%

Q1 2025

Best reaction

-13.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-1.0%-1.1%
Q4 2025-13.3%-19.2%-19.8%
Q3 2025-3.6%-3.3%-5.0%
Q1 2025+20.3%+20.8%+16.5%
Q4 2024+5.1%-3.3%-8.2%
Q3 2024-3.8%-1.5%+0.5%
Q2 2024-0.6%-0.7%-1.0%
Q1 2024-12.2%-9.5%-6.8%
Q4 2023+0.2%+3.9%-2.9%
Q3 2023+6.3%+12.0%+11.6%
Q2 2023+8.5%+7.5%+10.1%
Q1 2023+2.7%+2.7%-3.6%
Q4 2022-7.3%-7.9%+9.3%
Q3 2022+4.1%-11.4%-18.5%
Q2 2022-4.1%+1.2%+3.9%
Q1 2021+0.6%+0.5%-20.2%
Q1 2022+3.1%+3.8%-7.7%
Q2 2021+4.7%+6.6%+3.9%
Q4 2021-2.8%+7.9%+3.9%
Q4 2020+1.1%-1.3%+27.0%
Q3 2020+1.1%-1.3%+27.0%
Q3 2021+1.1%-1.3%+27.0%
Q2 2020
Q1 2020

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