Cadre (CDRE) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 financial performance with net sales of $144.3 million, up 19% year-over-year, and net income of $12.6 million, up 14%, driven by acquisitions and strong demand for armor and duty gear products.

• Adjusted EBITDA for Q2 2024 was $28.3 million, up 24% year-over-year, with margin improving to 19.6%.

• Continued focus on operational excellence, innovation, disciplined M&A, and automation to drive long-term growth and market leadership.

• Declared eleventh consecutive quarterly dividend, with a quarterly cash dividend of $0.0875 per share in July 2024.

• Benefiting from long-term industry tailwinds in public safety and nuclear safety sectors, with stable or increasing budgets.

Financial highlights

• Q2 2024 net sales were $144.3 million, net income was $12.6 million ($0.31 per diluted share), and adjusted EBITDA was $28.3 million.

• Gross profit margin for Q2 2024 was 40.6%–40.7%, impacted by acquisition-related costs and inflation.

• Six-month net sales reached $282.2 million, up from $232.8 million year-over-year.

• Orders backlog as of June 30, 2024, was $126.7 million to $151 million, reflecting acquisition contributions.

• Cash and cash equivalents at June 30, 2024, totaled $105.9 million.

Outlook and guidance

• Full-year 2024 net sales guidance is $571–$582 million, with adjusted EBITDA expected at $103–$109 million.

• Q3 2024 results expected to be impacted by a July cyber incident, mainly deferring revenue to Q4; no significant changes to full-year guidance anticipated.

• Capital expenditures for 2024 projected at $7–$9 million.

• Management believes liquidity and cash flows are sufficient to meet requirements for at least the next 12 months.

• Organic growth guidance for the back half of the year is about 5%, with a long-term target of 3–5%.