Cadre Holdings Inc 2024年度报告

www.cadre-holdings.com OUR MISSION Our creed, Together, We Save Lives®,is inherent in the life-saving products wedeliver. Through integration, innovation,and the constant pursuit of perfection,we intend to empower, equip and protectfirst responders and government agencypersonnel with the best protectiveproducts on the planet. DEAR FELLOW SHAREHOLDERS, Once again, I am very happy to be writing this letter to you as the CEO and Chairman ofCadre Holdings, Inc. after the completion of another successful year. Cadre Holdingsis comprised of a number of businesses—many with decades of history—that design,manufacture, and distribute highly engineered safety and survivability products.While our foundation has long been in public safety, we are evolving into a diversifiedindustrial company focused on mission-critical products serving demanding endmarkets. This strategic evolution reflects our commitment to innovation, operationalexcellence, and long-term value creation. Our accomplishments for the year are noteworthy. We successfully completed andintegrated two acquisitions, while delivering record operating results. Our managementteam also continued the roll-out of the Cadre Operating Model both in our newlyacquired businesses and our existing portfolio. These two things are related—drivingforward with the Cadre Operating Model yields superior financial performance andinforms our point of view on targeted acquisition opportunities. Each reinforces theother, and I am proud of our team for their continued focus on execution. Warren B. KandersChief Executive Officer &Chairman of the Board On a macro level, 2024 continued to be a turbulent year economically and geopolitically.Interest rates remained elevated as the Federal Reserve took a cautious approach tocutting, despite signs of inflation easing. Geopolitical instability persisted, particularlyin Eastern Europe and the Middle East, contributing to global uncertainty. Meanwhile,U.S. employment levels remained strong, though consumer confidence fluctuated.In our end markets, spending levels moved in the right direction, but first responderrecruiting remained challenging. CADRE OPERATING MODEL The CADRE Operating Model is abehavior-based, leadership-centricoperating “way” that enables us tocreate greater value for our customersand stakeholders. It guides howwe work, innovate, solve problems,improve, and engage with each other,customers, and communities. Through all of this, our business once again proved its resilience, demonstrating thestrength of our portfolio, the discipline of our operating model, and the durability ofour customer relationships. We believe this consistency provides us with a uniqueplatform to continue executing on our M&A strategy and long-term growth objectives. 2024 RECORD FINANCIAL RESULTS The model guides our approachto leadership capabilities andmanagement processes. That inturn supports the Cadre ExcellenceMaturity Model, a leadershipoperating model supported by leantools, variability reduction tools, andKaizen methodology. One criticaloutput is leadership in product growthand innovation that allows us tocapitalize on our position as a leadingglobal provider of safety equipment. 2024 was another record year for Cadre, with revenue growing by 17.6% to $567.6 milliondriven by strong organic growth and the impact of our recent acquisitions. Thisperformance came despite an uncertain macroeconomic backdrop. Our gross margin increased to 41.1%, driven by price discipline, favorable product mix,and continued improvements from our operational initiatives. Our Product segmentsaw gains in pricing and productivity, while our Distribution segment benefited fromvolume growth, despite some offsetting third-party manufacturing costs. These improvements led to 16.3% growth in gross profit and a 22.2% increase inAdjusted EBITDA*, which reached $104.8 million for the year. And while our net cashfrom operating activities declined year over year, that largely reflected the recordfourth quarter. $104.8mAdjusted EBITDA* 17.6%Revenue growth 0.9xNet Debt / AdjustedEBITDA* * Adjusted EBITDA is a non-GAAP financial measure. Reconciliation of this non-GAAP measure to Net Income, the mostdirectly comparable GAAP measure, is included in the accompanying Annual Report on Form 10-K for the year endedDecember 31, 2024. LOOKING FORWARD CAPITAL STRUCTURE AND ACCRETIVE M&A Cadre entered 2024 with a strong balance sheet and generatedsignificant free cash flow throughout the year. We ended 2024with net debt of approximately $98.3 million, representing a netdebt / Adjusted EBITDA* ratio of just 0.9x. This financial flexibilityenabled us to both invest in growth and returncapital to shareholders. In January 2025, we signed a definitive agreement to acquirethe engineering division of Carrs, a well-established providerof products focused on our nuclear vertical. We expect thetransaction to close in the second quarter of 2025, pendingcustomary closing condition