CDRE - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to the Cadre Holdings First Quarter ended March 31, 2022 Conference Call. Today’s conference is being recorded, and all lines have been placed on mute. [Operator Instructions] At this time, I would like to turn the conference over to Matt Berkowitz of the IGB Group for introductions and the reading of the safe harbor statement. Please go ahead, sir.

Matt Berkowitz

Thank you, and welcome to Cadre Holdings First Quarter 2022 Conference Call.

the would will remind statements, Reform be make statements I today’s that and Act begin, of these we provisions call, making under of we XXXX. like Securities everyone to during we the Before Private harbor Litigation safe several forward-looking These reflect estimate our assumption understanding on our forward-looking information to statements and us best based today.

measures. information that with markets risks CEO, p.m. financial to Cadre call May like non-GAAP note X time at will certain via in and Forward-looking a the tonight. affect presentation at Cadre’s will available face in Securities have comments we results today’s we statements call well from website. supplement Kanders. press Cadre also Exchange public remind materials on I’d this XX, for release that this also which available include are Chairman reports is this the Please factors and be time but subject uncertainties on our and in website operate. Cadre’s filed of financial I replay www.cadre-holdings.com, through More time, as Cadre’s to Commission. A could industries and to webcast to At turn Eastern everyone link over like starting that replay posted would and on reconciliation and Time potential the included the as that be our XXXX, Warren evening to provided the

Warren Kanders

joined our Brad afternoon. Blaine to discuss our first Thank CFO, XXXX. quarter the Thank Browers. for Call today President, much, Earnings results you you by very and and I’m joining Williams; good for Cadre’s of

of position EBITDA and record of shareholder successful included sales value. create long-term continue Cadre to Following we the IPO, a adjusted that our also to year net completion

and X accretive November avenues. multiple Cadre’s further that expand completed XXXX international We our since IPO add acquisitions presence growth now have

long-term progress public our about short made company, to We investors. reflective environment. accelerating of and excited team’s through as M&A strategy increased we over in a laid and macro challenging XXXX to as out our a success well time considerable acquisitions we our our you. both delivering are This as is outlook a incredibly growth on Brad, proud have have our period strong near-term guidance. remain execution that the We of in

Brad Williams

Thank you, Warren.

X and cover You’ll outlook a and business update today’s review on followed acquisition see our recent provide Q&A quarterly Slide and performance most that a financial overview, XXXX session. we’ll including by on M&A of and call, strategy our a

in Slide delivered mission-critical ongoing of our entrenched first markets. attractive to quarter execution X. drivers demand continue Against the capitalize we and responder to strategic our on first as discuss and objectives. inflationary I’ll the strong supply pressures, long-term our we First, in the turning tailwinds recurring disruptions backdrop chain on

operating environment. our significantly a into the maintain enabled is During power of a growth pricing pricing goes X% mission-critical this has inflation. that point target the quarter, challenging we a in us reflection price and first engineering above believe performance which premium to material exceeded products, our We direct

and command to constraints, to related pricing developments chain that will we inflation trusted we continue While price, enable power watch of material reputation forward. macro going to us unparalleled expect brands our supply

with the model generated quarter EBITDA our low consistent of was conversion strong Our XX%, in guidance. CapEx evident as we a

favorable we our year. the last indicated half a of In we in terms of as mix more quarter, second product anticipate portfolio mix, the

law remain responder the offset our operational trusted we higher-margin in enforcement, EOD From volumes as QX, continue growth and to were categories first perspective, an for entrenched markets. in segment. the within strong Distribution positions benefit from by During product gear brands and duty our military down. demand

the the from body the domestic of indicator of due March backlog U.S. gear was for both by of project primarily backlog. RADAR. is $X.X Offset EOD believe the acquisition as in potential XX, an forward-looking distribution duty as we and in shipments million a reductions demand past effective year. increased and driven by of orders end sales armor, reduction soft result This which of Our increased

We have spend mix the Blaine strategic year call. based more have time strong later on on our the full more increased and favorable our expectation and backlog made that XXXX executing increasing our we our outlook guidance addressing objectives. becomes progress will

generation us unlock shareholder flow Importantly, long-term attractive our to drive on continues free resilient model enabling strong capitalize strong opportunities operating to value. that to cash is

a international expected. a supports Specifically, footprint acquisition in our growth The adding innovation, with safety and gear our penetration in market, and January, the premium going to and we completed the brand well of quality. in U.K. division multiple the further process avenues. provides Radar integration for duty and Lithuania Leather The as RADAR reputation accretive acquisition European of is

has been focus Italy. and working with the initial Our on supply in localization the team chain

the will this have to accessories. process that and recurring acquisition strong holsters recently, greater discuss acquired produce light runoff Technologies, market in initial on revenues continue detail, chemical call, engineering U.S. military success high-margin adding positions for Later we and forces. note world to and cash in companies pleased with NATO of We’re Blaine and the but I flows. leading Cyalume have the to More leader the solutions we begun some

disciplined capital we’re well. about us our excited will allocation prospects believe serve approach forward, our Moving and long-term

we capital value to returning to to strategy M&A to our addition shareholders leverage through for our to continue targeted $X.XX In expect further shareholders. unlock quarterly dividend,

robust, actively targets and funnel of consistent acquisition remains opportunities with evaluating criteria. M&A we our key Our are

for X/X the update and Cadre’s as increases growth opportunity and Slide X, current Starting security. demand trends. on On a supporting the with targets sustainable of products such abroad long-term both market These countries remain on cities major drivers, Cadre, continued increased intact and on as provide we on past NATO demand for less demand which next of drivers domestically defense X all outlined significant we the X% macro driving discussed U.S. are an police and slides, GDP we’ll have spending mission-critical spending in things as for internationally. in focused well visibility budgets discuss tailwinds potential and than

our total opportunities see We market addressable continue to to grow share. market and to expand anticipate

of on they immediate-term like certain Zooming in outlined the trends impacting tailwinds, highlight several While markets thesis. in Slide to not are long-term necessarily on investment the represent we supporting I’d currently this developments X. our opportunities operate, which on slide

that law enforcement levels. to years While headcount officers healthy take experiencing is acceptable many grow a of domestic back budgets the U.S. are shortage to will

for current doesn’t What With fit is that for said, demand model. could we attractive premium having demand to anticipate been we forward Ukraine, equipment, as lead in providing discussions we’ve landscape products movement war receive we tools the active to for lower creates amidst expect be to opportunities. that shifts end next our EOD and could seen we which thus assess our As phase, we’ve inquiries. worst far the its the about higher-end inbound there equipment geopolitical continue more example, moving

prepared remaining with comes. the We’re to in them situation be contact regular serve to watching time when the and customers closely

Turning to supply chain constraints.

various challenging very are experienced We times lead proud to Operationally, components a ability electronic team’s with extended execute materials. and raw environment. of have we our in

strong rate outlook Regarding I’ll call supports to the CFO, has holsters This for our over consumer the demand now year. run our the half for turn of Blaine trends, the second stabilized. Browers.

Blaine Browers

Brad. you, Thank

on criteria I’ll comment Brad’s key M&A begin on expanding We’re remarks M&A by X, slide. my strategy. about our the Slide

and our course by history, the asset-light track the acquiring, high with of demonstrated have of integrating models. free record optimizing Over team cash value long Ward a and creation businesses flow

buckets. on X mentioned take very targeted a have previously, we focused approach we As

survivability evaluating have third, acquisitions, and expansion businesses core markets, and military geographic a markets; with a favor safety and new second, expanding market attractive products position in technology strong First, we into products leading introducing brand landscape. of within markets; products our our outside law of leading safety adjacencies the that expanding new portfolio defensible and existing recognition. current potential and core in enforcement In and

In addition, attractive light cash and EBITDA an that a it target relative profile, invested to capital. is generation has has on recurring return business asset a high critical revenue is

in discuss evaluating Following the which the will other acquisition we opportunities. actively of of compelling process are I in moment, currently a Cyalume,

In expect this M&A valuations, see multiples terms compress. could we in that environment, of we

the in adjustments we our company price origins for line to ammunition among pro and it’s acquisition has million, ago. customary to tracing a light subject the of and and supplier just indebtedness among the calendar illumination Slide million chemical, X. U.S. back other that other for capital, sticks, lifesaving the over completed business generate to Moving working $XX X Cyalume Today, criteria outlined, enforcement transaction Cyalume chemical years December credit to Warren commercial and commercial ending XX, expected existing of forma and solutions followed to perfectly forces revenues infrared U.S. law history forces roots devices with that’s on expenses and net Cyalume decades, leading The mission. withdrawal military is rich a markets. XX over our In illumination the with the aligned was NATO acquisition business year I $XX of funded this of chemical with for to approximately through the markets. and facilities. luminescent military provides XXXX. NATO recently purchase The has was

wallet advances training chemical Cyalume of and share portfolio. our with supplier products resilient to focus enforcement applications. in revenue combat current a U.S. recurring is law our of nations, on to of Department As entrenched strategic a our customer addition light and adds increasing military Allied and recurring base NATO Cyalume Defense, leading the military, in stream commercial The

integration Moving forward, the we’re focused process. on

seasonality in million $XX.X and for margins was Net second the expanding to to million the large the loss competency ended first last detail which demand and tools. expense, XXXX cash basics favorable along by reflects of control half teams, last utilizing primarily a compensation core flow, guidance XX, produce in XX.X% generating and first remind and The highlight the last in we of with margin less Cyalume first expertise success with remained across needs saw profit year QX our importantly, was cash our strong results we working discussed quarter our gear Slides include optimizing XXX-day provided for strong XXXX, everyone offset commercial by the don’t $XXX.X price. was QX to was result We we XX to a with generation best commercial high business, selling line Brad mainly we decline duty revenue I’d driven with by we like Cyalume top EBITDA expansion forward quarter penetration and quarter, that versus $XX.X higher and Gross combined leveraging Cadre first net demand expect products to federal margin at million On the our that Cadre of results. the approximately shipment annually. selling Our to markets and significant functional product priorities stock integration, portfolio that leveraging strong from have X% factors teams global teams deep mix implementing I’d quarter look and generally crowd military a the similar growth be new U.S. quarter XX% half free XX/XX XXXX, customer XX, that range operating sales Cyalume of year. strong illustrating the and in of relationships, the have the of very on first CapEx for end partially rule low like perspective, XXXX. our guidance. March the resources. in we and will first and our more prioritize of our earlier, quarter. of exceeded conversion XXXX

the year the full growth to and EBITDA XXXX. we slide, adjusted next Turning anticipated top line for illustrate

present structure XXXX X% sales and Warren full we net adjusted our ranges. On XX. we as March Based sales both of and midpoints, net expect Brad EBITDA. capital EBITDA XX, growth adjusted Slide we on As upwardly for mentioned, and their revised year have annual our

updated net Our through financial we a provide and $XXX net more Slide provides inorganically was around acquisitions. believe leverage our on guidance flexibility and debt significant We importantly, million, XX. to Xx our organically grow

$XXX portfolio $XX.X product to mentioned, M&A, we strong our backlog, EBITDA $XXX and and objectives $XX.X of expects our related million generate XXXX our increasing and and million. we’ve adjusted in sales and forward. As XXXX between normalizes net to strategic expectation our moving million mix increased progress outlook. executing Cadre XXXX on in between million based that

Brad for XX% we the year now it Additionally, between full XXXX. be and to adjusted turn XX% EBITDA to comments. expect I’ll for back conversion concluding

Brad Williams

Blaine. you, Thank

challenging on supply the Before opening our to to objectives on a strategic call that note deliver the exceed metrics and as we chain in record following in a that we questions, track to those XXXX, XXXX I inflationary continue remain environment.

provide Body In our three adjusted our life-saving our continuously core growth categories, going that is our drive continue is across to Armor, growth, focus We revenue to to room and global terms expansion entrenched we Duty achieve EOD, product gear margin, improving operating gross accelerating growth on there margin organically EBITDA and structure to positions believe of Complementing leading commitment market opportunities. optimization achieve leverage and cost gross margins. seek to and forward. expect further compelling

our Finally, product enter both active and track expand we more new grow footprint. opportunities our on smaller offerings and us technology and acquisition pipeline and strong add-ons markets to positions record accretive believe geographic and well robust transformational our focused

Q&A. operator, visibility for open and Cadre’s macro this We’re mission-critical extremely by optimistic for and driving With please the domestically that, underpinned long-term robust pipeline prospects the both about up demand our products lines strong and tailwinds internationally.

Operator

Stephens. will go Instructions] Our question first Imbro from ahead. Daniel [Operator with Please come

Daniel Imbro

on or revenue Blaine, want to I Brad. start outlook maybe the

the strong strong release called control. XQ, out a last from consumer you lapping in we think crowd year, demand guys were I some

you’re do that suppliers Just that I Are revenue the half you in this mentioned improving, chain your hearing outlook, when that comparisons you to happen? back to you and improving? already to is expecting supply supply what the throughput begin curious, in related guess, assuming that to maybe improve And already those you’re the improvement seeing then Just back normalize year? understand are half. underpins through trying from

Blaine Browers

Sure.

back easier guess year. half the the I in question, on comp So this of first the becomes

first half, last half and year. half, year second kind of get at comps back only get kind we easier, results the like last you look will So of so the the as first will half of the not if but the in of look more

drives of So we last of federal duty side, It’s you when the the supplying just through first kind shipment. that not around. And with of of were got along first as that remember, gear really large the really the a think the we crowd business the kind margin half, consumer it’s combination. mix a kind side on enforcement year It’s on demand in still to the comp about half And law well. issue. control

of we that couple things we forward, look the as happen. have do being it lift larger will a half, we well the kind back EOD duty As some to will there’s of as stronger that ship is in expect orders back One which in half.

one we talked We of products kind So business do to have the that -- before, is of visibility and that’s businesses rate. has when or EOD, the it Daniel. our -- than about more comes run typical in

half the feeling So for as kind what said previously, year the are results of of QX we’re still as the kind mentioned guidance. this we good our is And in of in about kind expected. call and QX kind this very first of the we outlook of

Daniel Imbro

Cyalume you acquisition. that’s then category to to Got like product the new a it. for And helpful. I It over guys. shift want seems

what does discuss do asset a bring And Cadre table to you quick help that strategic accelerate follow-up What to guys the after that. to you their Brad, synergies can to strategically, existing you business? I the just then growth? have maybe the financial What bring So are?

Brad Williams

great think question. I

the company, any no matter couple and So talked implemented One, about in we of products operating is company, lot it in things. we’ve that there’s like to a continue it and are, are we’ve feel of lot we’ll that that the model implement a backgrounds refine table and broader that past, through area. the we as the our bring something to a what

but companies. So any not environment these of a what transactional only also brings the operational excellence, within perspective within from that is manufacturing

we’ve that’s first that seen. So thing the

will like company. Safari potentially synergy our The second heavily that is land the also around front a be but customer for Cyalume for So or feel the slanted okay? of things. side their commercial military business, is the to end synergy the base we of

there’s where we also an especially products. our and leverage and us the Cyalume know, buying you the feel those those to then As for of is Holster buying continue relationships potentially they’re like across business holsters business Cadre and to products slated they’re where EOD not accounts brand also not opportunity to board, there our

two So move see and the the to company are that continue biggest forward. opportunities we dig within those we as

Daniel Imbro

That’s then Blaine. one, helpful. great. financial That’s a And just

you about guidance, revenue think the of million, you the $XX the hear but up right, I Cyalume about took year. should On $XX million guide this I add revenue

guess, up is business if the I is full only if softened So a $XX is adding what that that guide core right, few months Cyalume going in XX%, ago the year million. from

Blaine Browers

Thanks, Dan. Yes.

comfortable so we level and is the as first the caution very with get the it have a won’t we more is, recent acquisition, business outlook. of So part

as back larger we half, do the we in expect addition, mentioned orders. In some

we’re as kind of reevaluate being there. how And outlook. that a we our orders look think get our just those So from and little I we’ll on tighten QX, position, through cautious guidance

Operator

Our Riley. next B. question with Sinderen will come from Jeff Van

Jeff Van Sinderen

the anything margin do certain areas? on think then to going I other you as know raise tell, tough And of that? remainder year, forward? in the thoughts color on it’s that? you environment, to your but more for relevant where or to Wanted be gross thinking risk cost us the maybe then around need pressure I if the be you’re circle to sense could I where, -- and the mentioned slowness -- you you where I chain latest Where pressures electronics mentioned it -- think sort in might then cost is? think give guess, if your inflationary I you chips. going of might on, sort Or I of the chain just know you guess, that? guess, supply we could supply any back prices about And to inflationary forward

Brad Williams

Yes.

On Brad. the this is --

areas not keep electronics look mind, a in it when it our of also, piece relate of next helmets. is our supply On X business suit side electronics. is then large the in at electronics, of biggest chain we’re the are does it’s seeing into percentage side to things, bond the side the so of because And you things overall comps of the that the And business. built our

any to areas the like every those everyone being our marketplace in to that and are we’re that the that team just is X this At haven’t seen it’s of teams the So of we point, sure -- major chips, supply on else major, feel we our which and and as EOD, like chain on out day that’s delivered. electronics continue handle fight important the been supply has a good delays the needs we part go that more side forward, there. business, make

as terms we some in of Now see on as look we and the in especially an the in that raw outward-looking, of we starts side armor business. the potential forward, area to kind has of materials, chain supply been continue stops go

We’re enough our it’s that not to product fortunate lines down. say any so shutting of far,

issues in major We it. haven’t had any

We’re have closely many to with where monitor have important years. and business. just to good material a worked And for very, some strong, work extremely very it really, that we in it situation just very with of top partners. stay we’re many, our partners armor and we’ve Luckily, you on raw relationships really are and those their

as so that’s an what we really far. So see outlook

I think.

Jeff Van Sinderen

the know had any circle wondering And were spoken back wanted then explosive on, for previously on. to military. That on I think I if was competing Good I’m there’s that you Okay. to just working update sensor sensors you’re hear. program we -- about the that. to just I

Brad Williams

Yes.

the sensor the special continuing U.S. I with R&D project, on say, forces. would efforts So we’re

project that continues. So

project phase We the second of are that in overall.

delays with side U.S. in things. at and continuing it. just feedback to we’re on we’ve reported the customer government we the some the test last base product time, And point, As the get of from this project seen

XX-plus and project sign in that point demand also. prototypes think so look have good is at mentioned them we There from at those we they for Walter on for for also. was seen I request Another can that Reed evaluate which additional X time a sensors

it in testing forces. it as good the stay have we’ll progresses to the continue focused continue and as forward, to area, fare So in go on we special well with interest U.S. process continue this to

Operator

next Stifel. will from come Our from Bert Subin question

Bert Subin

had about comes first pro add -- you million, full won’t some right? rate $XX clarification which just amount, XX%. a I guidance. Brad, your to out think question adding You’ll to on question the like be the

thinking the be of the if sort to right? Is So lower the like we’re about in that at $X guidance math first relative that just change million midpoint. quarter, approximately would

Brad Williams

The XX% on basis. full close. is Correct. And we didn’t obviously, just a year

So I think you got it.

Bert Subin

Brad, getting police going then, police either issues getting police join mentioned you as seeing dilemma follow-up, any Okay. the or But officers sort weird have stay on visibility into getting because force It’s budgets the All actually what shortage. right. a police funded. to whether you Is there of worse? any of are what’s there? there’s my commentary better provide And you you’re for on shortage, Do the about or in force. can terms it’s the

Blaine Browers

Yes.

So I around data guess the first thing that. is there’s no objective

couple fill East company-owned marketplace So Coast. that there’s is of distributors And and the have side our customers. that rates and the of that areas our looks at we’ve ways of open -- with across us force asked that the get way agency the with me, not end that to within in so third and up scoured Believe we a hiring how U.S. and sales headcount have the way details is we’ve U.S. second work the then in our around, third-party we’ve for we discussions, that from talked, distributors the things. database by information positions a

mixed is having So the hiring, a we across cetera. with it’s country. they’re the et doing feedback most bag how just of discussions, get And those

that are find You’ll process. that well. other you’ll with that and medium struggling agencies agencies large hiring doing are that agencies find small, and

things try talent to attract bonuses continue have into like we’ll Some to signing profession. and tried the

to state, headcount doesn’t attracting in overall which help the from actually are increase the talent Some state U.S.

seeing order overall. at about of you the side ago. our look the in we have we Armor with have look sign also due to have continuing some to we’re the we backlog don’t of they’re a And the missing. there, to good run When that -- at about gear while continue we they’re the rates we top exact that things, good that’s but headcount So then you number portion visibility on little which talked that, of to a it, that U.S., visibility is move that forward

Bert Subin

any, understand of additional good, break give probably sounds going been -- in you information pricing it fair? but of guess, above I this that and Is you a much, little terms that inflation, I a Can have but volumes not result you’re to too been like so has pricing up impaired likely as shortage.

Brad Williams

in our it’s X I if kind what good. number ability ability sense. said but selling, and to pricing been kind the Perfect. -- impairing months, of think to fulfill think makes there’s openings higher not nothing get that we’re that’s kind fulfill flipped drive talking accurate, of so in that Yes, And next pairing volume, volume, our the if to to has if of versus you’re we’re would that switch current we today of fully a going I Bert,

to As of we’ll It’s X% we’re all of watching across seeing to as consumers we Very all we on, the with board, of work -- material that as year inflation. results. QX sitting target go right goes getting something as obviously right? kind We’re the continue we’re price happy even that and above ahead forward. very mentioned, stay closely the we have

Bert Subin

Armor. as going ago, on an that result Body opportunity Ukraine? perhaps you any Russia, of what’s mentioned of say, let’s Are seeing early Got sort to the It it sort I you on and with sales final of know X holsters European improvement, a I it. little And XX just a appreciate days one. tell. was be in could questions

Just anything has curious there. if changed

Blaine Browers

significant. Yes. Thanks, Nothing Bert.

that’s countries and Ukraine the providers, where And low-cost not really Eastern nothing Really we providers. primarily play, successfully significant and on with armorfulfillment but can’t the done moves destined whole in those for focused for for the that we’ve have kind just company. compete of has We the what needle orders the we seen some of Ukraine Europe, low-cost countries kind right? around

the space. Some about the play of the the same reasons talked decision not military in intentional decision to we’ve U.S.

is as They’re that’s they’re fitted they much product can Our and for. now. comfortable for the looking get for semi-custom individuals, what not as light, looking

Now dealing and a what we inquiries we’ve longer with do the bit is aftermath. and that’s seen term, little believe,

dismantled or munitions on have be -- governments working you’ve if and market. seen is we the as that there you as So there’s or that leading supplier some that product stories, closely EOD of unexploded the in kind Europe EOD And solve conflict with to in the and of guys solutions reminding mines have Eastern deescalates, there’s to the that.

So that capitalize comes. positioned to when we demand we’re very believe well the

Operator

will Our with come next question Koranda from Matt ROTH Capital.

Matt Koranda

million. spinning just you Maybe that $X million did back of $X trim the sounds guidance about core to to sort and it the there, like

just whether little supply provide due was program would they commentary But to could out, is was wanted may customer larger it Just maybe more just were category around question you related like that that, those that slip slip in it second chain? -- half be clarify, more a and that and more and product to for trend. Or the a bit challenges? delays to sounded you plan in the the talking about some rationale orders in the

Blaine Browers

Yes.

it’s out it’s moved of a year I kind So it’s duty side, be -- specifically little the of order kind year, The on expected slip, of be a clear, the bit. want to to it’s was not miss. and a middle

year. falls whether it And question next it into through of this get of year we early time so it’s kind get to the or in order a

be style, just we the there’s and outlook. to in closed In want addition, right, on cautious

a comfort get have And We do approach reason of have kind evaluations, closely some at it. that’s us for some to around to point. part business more and cautious of over look at the this the little

Matt Koranda

the around to potentially guys And longer-term wanted was conflict. helpful way potential being see, EOD opportunity I potentially pretty your and And settle more also the be we that’s given you uncertain, to that’s -- Or even things the sales out you an is quantifying helpful. talking going it Ukraine of I then it Russia But around it’s address further obviously, there. if just opportunity here hear out explanation to ‘XX? opportunity any Very term near XXXX? then the are in can Curious know down if to the have of control. something impactful timing-wise, into

Brad Williams

we it mentioned, for we really, And that have think to which suits mining how phase things, of it’s bomb conflict continues drive demand progress, the side right? the suits I Blaine the it that overall. that is or more Matt, mining and about moves whether to full do

things. can Ukraine and terms for hard customer So a I current -- it’s What is perspective, us timing current share side that we in are really is they tell suits, dialoguing think EOD to so clear around from our things of today of likely that a a far is SP-XX. been it a and be at couple this questions progress. that as timing approached around not phases but for of EOD would have we asking us so them point, with

Matt Koranda

Great. Okay.

Just for me. last a haven’t we X about lot RADAR. talked

you quarter. that seeing sort of for Just last be revenue the the there? from go-forward guys synergies. you’ve to X commercial curious as basis now part where in speak would synergies, of open just on to you the cost part had sort the RADAR maybe out operations first contribution then if for breaking And of the are months, some of better opportunities of you’re the seeing Maybe a opportunity

Brad Williams

the opportunities holsters supply that land What Safari chain And seen we by can we have what the far and Italy us mean market gives on manufactured in predominantly so localization a in U.S. manufacture localization. we’ve Yes. are of then to branded local also ability in Mexico that to terms that is in are RADAR with footprint that and we Europe so international there. in the and sell

that has the process for a points. of and been also of manufacturing date far So working we’ve Italian higher-volume had team to working just so I in that with holsters and into supply And evaluating facility. focus that chains our looking accessories and those the about the the leverage through talked process transition all category initial on fall

as and We of accessories have produced prototypes handful initial a holsters runoffs. and

careful company quality transition a that. that’s you We like are things around extremely as

the and the side that technology get team radar to Safari Italian versus of So differences sure we Holster land branded speed we to have products the the the make with in things. up

So Land so and positioning we we’ve that made is then that appropriate internationally, answer the if answer if we sure opportunities. focused RADAR Safari with X and terms able win have those we we the win X and tenders brand. RADAR as that in course, those, next if of we’re there most with tenders we’re with on Those that And get in brands the fashion positioning brands brand. brand are Safari areas to we’re happy now the are in the also the -- the we’re brand, the of pricing around those, we we’re one win those Land happy we big

Operator

Our next Mark Smith with from Street come Lake Capital Markets. question will

Mark Smith

bit, guidance guys back Can about all at circle to from Just little acquisition? the at a talk you just EBITDA want contribution to but Cyalume EBITDA. the look the

Blaine Browers

Yes.

rate So you have year Cyalume to of full EBITDA on a will overall revenue. basis be kind accretive and the

So I it think back you into can there. of kind

we restore mentioned, well as where as full of our them. kind business, a caution of we standpoint do have to to from includes where of that the kind top note think evaluation business the as of time of post-close kind and with spend of and kind kind bottom we I of a

if you’re of kind with out holding we’re XX/XX. familiar So

are One goals our and of effort and you’re to business pools appropriately. kind understand of those make resources aligning sure evaluate where the and there is differently that of really profitability the

markets we So we’re yes, those it’s our a one worthwhile how kind all play. in that’s just and we do markets, with evaluate businesses, enter of thing routinely if as doing long-term

Brad Williams

would I to just that. add And

mentioned, organization. The front-end things Cyalume, work through it the diligence that through And which one is diligence as to we that some overall growing on with like through haven’t especially lean thing side continue we of other business. we organization evaluated, we that invest through on fairly the so where is now, to went front the to about to a is the addressed work we’re going synergistic and we’ll opportunities process, have process, in, the of that the selling we begin especially talked of we that end things of feel can that haven’t we’ve part

Mark Smith

one. Okay. And an then just odd modeling

Just of the on puts remainder year outlook there lot. your -- walk stock-based and any a or was you and comp stock-based for the through maybe count? just Can takes up

Blaine Browers

Yes.

QX out as been pre-IPO. that’s years our K. That comp here year is dramatically, stock the would to drops as portion, decided was stock-based The was S-X -- So that that our -- the million the a in Phantom full stock well million. that cash to in settle comp a LTIP be we $XX which think so includes of portion around good for in $XX the around related award right company plan QX in

to as to go at you early I and decline drop obviously we forward, XXXX, on it answer, to of expect Mark, rates Phantom like off falls kind it but just So Plan. then to kind point, mean, the this maybe of XX% continue more

Mark Smith

last then for see big question. X move we NATO, me, does just any I’m curious, opportunities. if And impact just on into selling a picture make that Perfect. countries

official there For into instance, at we opportunity is was Finland today it any look NATO in versus selling if difference an if Finland, member.

Blaine Browers

there. don’t Yes. I mean it’s I there’s -- potential know. mean we that

of -- For Finland example, in the look our about of up terms joining EOD categories. then about especially EOD, especially European depends opportunity talked ends the things. example, holsters you at we’ve for And talked countries. developed our When and if it in side in we’ve on share of also globally, product

that So base is they’re accounts whether I we’ll these to within those customer the those as and continue we share to tell to we -- goal can just have forward or product categories. go NATO don’t major not, you our where have work

Operator

Brad will remarks. that question-and-answer I today’s session. conclude now like call turn closing Williams for over back Thanks. And would to to the

Brad Williams

everyone operator. interest us today’s like your call joining again Cadre. continued for you, on thank to I’d for in and Thank

Operator

Thank conference. now conclude will your and for participation, you that today’s may you disconnect. And

Cadre (CDRE) 14 May 222022 Q1 Earnings call transcript