CDRE - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to Cadre Holdings Second Quarter Ended June 30, 2022 Conference Call. Today's call is being recorded. 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

to Second welcome Call. XXXX and you Cadre Quarter Holdings Conference Thank

statements, these we to provisions of will These based call, forward-looking like I and of assumption be A best August estimate forward-looking we everyone several tonight. X:XX time, to Before well Litigation in to the would on XXXX. today’s press the remind Private as begin, starting Reform replay safe will via reconciliation note comments under with financial statements Chairman certain presentation the for that www.cadre-holdings.com, at link Securities during making statements Exchange have our posted website also be will and Cadre's harbor a our on p.m. CEO, that us to operate. our the call measures. today's today. make release Eastern be replay but I that provided At These Cadre Act on and are website. and would XX would this statements we supplement to Cadre's Commission. available as through industries include to Cadre’s we uncertainties potential More the factors we information of forward-looking Please materials Kanders. and remind that risks that our Cadre’s subject everyone markets and from at like also this non-GAAP call included public I could like evening XXXX over time the and available is time face on which in the filed and reports affect understanding in results to reflect financial information this turn webcast Warren Securities

Warren Kanders

Brad our the and joining our thank equipment, Financial President, our to in focus to as on mission-critical safety call Blaine months quarter XXXX. XX positioning over shareholder joined Officer, survivability Chief our leadership, value today results, long-term. and our you has of and providing to Cadre's earnings afternoon am I Browers. create the further Good sustained Since Williams; enhance going been for by second for we public ago Cadre seek discuss

resilient we guidance. law enforcement Our and initiatives, our secondary our markets, position model, first XXXX have well continues cash entrenched well-positioned responder our military strong further on capitalize serve robust reaffirmed we and our to core us organic oversubscribed flows to earnings with M&A operating on and all Complementing are pipeline. draw recent offering, to growth our a in combined

over we our pleased are currently evaluating. year-to-date two Brad, We about are acquisitions are to and opportunities, excited compelling accretive you. that with additional

Brad Williams

you, Thank Warren.

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

second our I'll team's to discuss Slide First execution in X, turning quarter. the strong

quarter, in the as to some pressures macro operate in inflationary we disruptions. During cases as well a ongoing supply continued chain difficult worsening increasing environment, with and

of especially against and how markets has seeing an these objectives. the able to proud open positions. not of increasing our of fill being are our in agencies, challenges also enforcement law We strategic international executed I'm examples number team navigated

well watch performance we and pricing our CapEx on power. rate X% material we position Drawing since our to model, above of our we inflation. done quarter believe pricing target a to And conversion continue products high-quality public, As low mission-critical maintain have going XX%. generated growth exceeded closely while developments, we every engineering strong macro us we

the quarter gear year. a products, continue lower armor expectations year. to our Our higher-margin more structural and volumes control by was in and and mix last duty the we was consistent anticipate, with in in order favorable Mix a the second second large half mix QX of the crowd affected

evidence forward-looking demand markets. of of quarter, this Importantly, and effective for within in in view enforcement trusted We we products our military backlog also grew the indicator law responder the our sales. strong potential the backlog first orders

year, As the of by soft June the since well driven higher acquisitions recent XX, XXXX as for as our orders primarily by demand $XX.X backlog of armor. increased start million

quarter Regarding M&A, in Technologies, completed during the life military leader the for forces. acquisition second US chemical we and native world the Cyalume of solutions the

opportunities leading We companies actively cash our greater of Based focus recent high M&A continue on a with robust of and on evaluate and flows. are in with about our success Blaine pipeline, pleased detail and integration, we Later discuss on the pipeline including and comments another most revenues market business, with recurring are margin, high-quality to adding strategy acquisition with the the will consistent acquisition. strong criteria. on excited positions call, key additional a our

our shareholders. Finally, a continues cash model to operating -- share. drive fourth $X.XX flow return and paid capital generation, to We free both accretive initiatives of of inquisitive consecutive quarterly enabling resilient dividend per strong consistent growth our

budgets. products. police the advocating police, funding significant sustainable and Plan slides, leaders update long-term as two six, well from rising provide Cadre's EU more drivers include current going slide demand Rescue These discuss tailwinds visibility on On and macro next growth trends. for budgets mission-critical supporting tensions the outlined fundamental market are of to geopolitical American for refund, increases Moving we'll in defund an our we as where to defense

particularly and market We continue expand total to grow long-term. to market share see our over the to abroad opportunities addressable anticipate

hold in departments seven. budgets Focusing we on larger and fill trends operate war police of funding open US back highlight end scale What At demand academies that products years interest currently positions Ukraine, seen countries. Canada, and forward. impacting still In that from will struggling far Cadre many thus premium for with there higher anticipate could to closely in the active a discussions reinforces movement in led sizes. has and though small Amid that officers be for we not orders the several slide the we there belief healthy monitor the I'll agencies opportunities to larger we the with attractive increasing to we've indications getting levels. the we class This remain for more NATO that further to customers. have are and acceptable uptick continue as are an on carries which continuing on on markets conflict to will situation our training headcount expect point, this seen are be take grow to creates moving shortage

fabrics, Regarding our capacity raw we lead-times rely we're extended materials components, various upon and supply for and chain, electronic experiencing materials. constraints certain including

product job challenges outstanding an done partners to closely has continue reduce our team with to these and we on work addressing the lines. impact our Our

to by a trends, for stronger supported demand more second customer larger the to year run and rate half orders. stabilized for our outlook Turning continues timing holster of of a the be EOD

I'd Blaine to captures solve day. focus turn upon and in every by the It briefly others, the built mastering the side is on each leadership-centric excellence. to I a with the over framework Before to that about maturity organization within enables engaging call of we Cadre foundation operating person problems, guides The model. better model our our to operating and excellence speak beginning The behavior-based move financial implementation illustrates customers how for performance, slide fundamentals eight communities. the we fundamentals of right discuss cover our create Cadre of as and and operating pictured purposeful M&A idea like model all sequence The that to value some and stakeholders. greater the left customers other innovate, a pursuit every work, tools the solid is engage from gained how of with improve, to

proven performance. locations our before Jacksonville Blaine implementing come Both at stage the fundamentals We that CFO, the model. are first going advancing over I'll of organizations are the now our to at step turn Browers. the very for and call Blaine sustained to now I of repeatable had of about other from and Cadre's implementation we history facilities striving continuous towards broader our and a improvement operating excited

Blaine Browers

M&A talking by remarks bit my a strategy. our begin I'll Brad. more about Thanks

defensible unlock position focused strong that led have to revenue has our by optimizing leading long to leverage brand generation. M&A We continue cash a and track we for Warren of to market integrating asset-light team expect with value high and cash further and recognition, businesses recurring high on remain targeted successfully with profile, shareholders. a acquiring technology, flow free businesses strategy Our a

businesses past, within As buckets. target we I've in fall one outlined of three the the

markets; final bucket the survivability expansion current First law markets safety products bucket expanding geographic and and within space. existing of safety products our adjacencies attractive and expanding portfolio core new second introducing the our new in bucket is markets; the products enforcement military core into of outside and in

us with leverage, and for larger Keep deals. transformational continue comfortable We quickly generation to have two a and pursue balance delever criteria acquisitions our flow, smaller created long as with sheet once our with around in maximize lever evaluate strong transaction. acquisitions model of to as but deals mind to sizable a strong cash from and allows these we'll to targets funnel organically. term We opportunistic Cadre our We're up transformational relationships, cash value times customer acquisitions completed. robust well enable our operating consistent both and from the believe be combined

M&A to the becoming more opportunities we've for activity, in of new difficult businesses terms In seen acquisition could the it market. which in lead refinance, to current environment

We also that global outlook we economic multiples expect the could compress as uncertain. see remains

gear of in an Cyalume, and our recurring our business illumination base. Italian follows to strategic Completed our and law in of most RADAR, supported the European market supplier added to Cyalume international next increasing provide further addition wallet within acquisition on penetration military, XX, I'll January NATO chemical acquisition share in premier on update military slide current a commercial leading and training on which May, Turning application, the customer other duty solutions Cyalume our among recent that commercial enforcement the entrenched our advances is the footprint. business to our markets. combat of objective military US forces and

stage and that the pleased another completed stream We've integration on to focus continue are process. revenue recurring process our to the will factors results. to produce prioritize analysis portfolio We add XX/XX of to best the the resilient

Brad and teams process XXXX aim continued deep new teams' EBITDA growth model. anticipate operating implementation improved ongoing to increased and sales Cadre XX.X% net profit resources. slides for acquisitions demand. income On steps the of military we XX last XX along with include Net and global QX the armor compared that mix $XXX.X driven and primarily each the due of adjusted quarter inventory on across sequentially, Net generated collaboration earlier, margin expand, penetration inventory points and Gross customer Cyalume's by of expertise step-up on increased our note, product from Cadre was basis $XXX.X has sales, quarter second mentioned amortization selling efficient markets, impact our sales this The quarter. been leveraging margin acquisition-related illustrating about million between same the operating Next and year, as XXX and from a and mainly detail of amortization less portfolio to second the we'll Cyalume's net resilient acquisitions Of margin for our step-up core further and our and to optimize Cadre's by competency we progress to selling strong improvements. the results. as partially was Cyalume XX% commercial to relationships, million, tools. recent QX. recent offset quarter favorable pricing Cyalume

$X.X expect transactions ended to The $X.X income stock-based the primarily to remainder currency increased margin quarter resulted decrease the compensation partially expense, revenue. was of year. XXXX. expenses the acquisition-related XX, continue June increased on the Net million by second expansion discrete for quarter million We of offset foreign compared and losses from income during net for

indicated down QX. year. QX from the stock-based hold levels And the compensation we expected at we last to of remainder As was quarter, for

of remind free by XX%. flow low generating We X% exemplified a revenue EBITDA a very at significant approximately from needs I'd perspective, of to cash everyone cash annually. conversion second generation our like have continue successfully CapEx that quarter we

June adjusted anticipated net On and present we guidance EBITDA. XX, XX. illustrate both X% the sales capital Turning year as the full range structure growth we adjusted full for midpoint EBITDA the Based we slide of annual year and our expect XXXX. our of to next on top slide for line growth

and provides we leverage believe organically acquisitions. flexibility financial significant Our was more importantly, $XXX.X net our grow through debt times and inorganically around two million net to

exposure normalizes oversubscribed the offering capital our $XX strategic Warren after Cadre reaffirming underwriter on guidance result offering executing our strong earlier. and with with sales our as expectation as in million If mentioned between structure we $XXX The much Our and of continued in million XXXX enhanced $X.X and this EBITDA hold businesses on million challenges supply are proceeds position dollar our that fees to $XXX commission our to rates the of XX. Cadre could to the provide objectives to year. overseas to moving XXXX our discounts of $XX.X headwind reflects like liquidity are We net Based U.S. to-date as note, progress strength and of portfolio due seeing the expects for expenses. a were resulted net related mix and secondary chain. our performance that and Of in generate guidance. most FX and slide of pressure $XX.X M&A forward, product the we million adjusted million million. between in be

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

Brad Williams

you, Thank Blaine.

half strategic execution note macro XXXX we call strong. that, mindful headwinds questions to in of during that the year, to against first persist our the we of opening been I expect Before be while to objectives has continue the

the of product opportunities our and positions across pressures the through year, increasing and market growing, will navigate disruptions. on progress selling to leading capitalize supply we our life-saving chain focus remainder our inflationary on entrenched As on remain categories and

We also margins further and over EBITDA adjusted to gross remain the improving long-term. committed

structure drive leverage to expansion operating We optimization seek going achieve margin to expect forward. continue to cost and

compelling lines year-to-date, product and and Finally, about acquisitions visibility and continue our Q&A. offerings remain this will our please driving our our robust see both pipeline operator, optimistic expand tailwinds we grow on accretive prospects markets extremely We in strong technology internationally. long-term opportunities underpinned Cadre's open With and new enter the robust by two for that to footprint. geographic macro mission-critical and building products, our that, pipeline domestically for demand the M&A

Operator

the first [Operator from comes Instructions] with question Imbro Daniel Your line of Stephens.

open. is line Your

Daniel Imbro

evening Yeah. Hi. question. my for Good guys and thanks taking

Brad Williams

Daniel. Hi

Daniel Imbro

the guess expect Brad to the continued categories It that passing I release, start I brand to in changes want to backdrop M&A targets pricing speaks less one or really in maybe you Are illumination the in have. you're equity the any But the Just you rational on backdrop. entering, be ask how more outlook? power? in pricing say you've customers? to I kind product the of through obviously pricing pricing of the past. be mix new some is change that want laid curious momentum we the price. that similarly, Should out of I'd shifts Do the those same? have backdrop? any

Brad Williams

Yes.

there's niche high that which look engineered fairly marketplace, at share they'll highly command criteria in you So one acquisition when pricing. our also means the of criteria is where products, a

of So a businesses to within we'll as we resemble opportunities look and have evaluate within acquisitions, which we continue of other look for lot Cadre. those kind what

Daniel Imbro

helpful. maybe the quarter in more That's revenue relative margin, even dollars. then little XQ, And the Blaine despite pressure gross a higher to on

basis but seasonality the I just there's of walk of half start should through the if sure not here year? alleviate So back pieces like XXX year-over-year of the in the you mean could pieces bridge decline those which point to maybe

Blaine Browers

Yes.

a down from with It's QX XXX a of while and of QX. offset really duty gives kind year it that So the about on us. year-over-year, comes you After you do sequentially, to to acquisition, far expect we volume in challenge. of When is margins mix step-up more to little being move being bps consistent to of down. of the the Cyalume we been half volume that flip the pretty contributor which back for kind right, the had armor those kind as up, on armor year into a of the and get that pressure. bit biggest we And mix by –

half. shifts as over pull-through natural the the that back expecting into we're mix So

Daniel Imbro

That's a then just helpful. And clarifier. quick

on headwind year. mentioned that revenue Was you or a $X.X FX Blaine? the think EBITDA million for is I

Blaine Browers

EBITDA, yes. Adjusted was adjusted That on EBITDA.

Daniel Imbro

details. the the all luck. on results best appreciate of and I Congrats

Blaine Browers

you. Thank

Brad Williams

Thank you.

Operator

question Your Van B. is line Riley. with the Jeff of next Sinderen from

open. Your line is

Jeff Van Sinderen

supply everyone. strong also to Hi, other where up Congratulations areas? product areas follow price And on some on just on the increase metrics. you in what wanted I seeing any then in you're thoughts chain. may

Blaine Browers

it. that take can I address Yes, one

the we're one quarter comparing quarter we're first the within we've at third raw really we're the suppliers in So anything of I in toward smaller quarter chain where in it's then to the labor to second seen what what supply far enough would from has of end is, seeing first product the supply issues and in having they so the from experiencing on increased material-type overall, each shortages categories range that various say frequency our those. of but not capacity of And that experiencing. they're some chain,

Jeff Van Sinderen

Okay.

Blaine Browers

And then…

Jeff Van Sinderen

go Sorry, ahead.

Blaine Browers

look product our of a value to good side competitors and should job opportunities where have in understanding pricing I the where on DNA we versus then like we a continuously be feel and our what of feature out really product positioned of teams we're by And Yes. part marketplace at there our do standpoint. at lines. the things, from

product So we as we there's here quarter. of opportunities the do potential we go of move into feel the into as year rest some for some like the lines first again the and

we're opportunities actually So now evaluating and working like. what looks that on those

Jeff Van Sinderen

a touch then Cyalume it for I minute. know I just months. you've now And wanted to few for Okay. on had a

if and wondering sort about maybe of some learned there? that of you the business incremental anything the you're Just seeing opportunities more

Brad Williams

Yes.

So of described to opportunities I that's is feel and I Cyalume within an we inflation. business, like the inflation as that's there gap been in area compared our staying of a think just what in business, front do which speaking

from those have So have we we working folks that on where increased team costs pricing of a evaluating coming opportunity. are and where power

have markets within and in. good with product they know they're end standpoint the line that that really As do that share you company, various

pricing that there we're details next of So terms those through step expect in have the we'll but working we power is. what

Jeff Van Sinderen

my taking questions for Thanks and luck. Okay. best Fair enough. of

Brad Williams

You’re welcome.

Operator

from Koranda ROTH Capital. is with line next Matt of Your question the

Your line open. is

Matt Koranda

from point mix the looking on Seems half. EBITDA. kind what's and of implied step-up year? second decent Q&A first benefit the this could And which but finer the afternoon. on in in in just driving was step-up range, revenue nice a at just like a Good if the I you half for like looks referenced maybe pretty you a Hey, a to curious of maybe the I earlier the there back margin outlook. to the half in had Maybe think imply some XX% XX% EBITDA expectation of like margin put guys. just

Blaine Browers

absolutely. Yes,

do we back So a expect stronger much half.

businesses, to that to margin been orders government light a world being more the And much the year then be that in the the side. crowd gear other looks drive relatively segment component. had is, really first kind on half The overall and were a that so particular and half and big than The in have one half, or particularly in the business portfolio out certainly distribution duty in favorable some which the that's factor half will historically. in stronger favorable flips we around the of of quarters in will they coming later we of second of also kind had back is, suits, in mix ship favorable the control side also the EOD to first year, prior

to gross So in really back that there's half mean, drives on lower certainly EBITDA. will of out slightly drivers. related a the be be are some that would them negative Cyalume but I that, margin. Those we adjusted adjust unadjusted the margin step-up for the mix kind

Matt Koranda

it with you if small start inquiries thus saw latest associated know, to then at get opportunities on opportunity curious I pertains around touched and what smaller terms that? of about how of and far? And that as orders but little could the filter orders see from to into that Ukraine, into you Super timing the flow broadly seen opportunities? more sort you what we've gotten then it some the we in just curious, Okay. through you've then point upon turns speak those just a helpful. the larger to last bigger And of, bit of call, your the thinking

Brad Williams

Yeah.

everyone to orders were term but general believe and crystal world of smaller say, a some be EOD There inquiries a slowdown I and we around happen in Matt, of seen difficult out expect were really business, – the smaller on lift cycle next it but that else that the we're We've I'd kind and the the it's on, where news. of of don't earlier the early over this tempo our until put armor really would we the but EOD, operations it's in kind don't there. went for lot around ball, and far, products shipments there pin year, obviously we'd longer in thinking have the like – year. of think but side So particular. watching And will us learning is

Matt Koranda

fair. there, it Totally I’ll leave Thank you. guys.

Brad Williams

Matt. Thanks,

Operator

Subin next Your with Instructions] from question Bert [Operator Stifel. is

Bert Subin

Great. Thanks, Operator.

line just like that here? In duty made some items. gone just of just that through after? starts what versus Could the the into And of of in and granular getting guys Is you to of little armor body seeing you know terms ultimately XXXX product down of then walk maybe discussion, there expectation there. a still the you terms give comments a on across into I you're playing some rebound have legs more business then the EOD us sort

Brad Williams

maybe end. start at Sure, of kind the

kind expectation. So of the it's business, right in line EOD with

Ukraine XXXX. on de-mining that I could lift from in the depending provide in possibility go and munition they disposal broad think a some there's how

So part Bert. kind your know, I don't of the if last that question, of answered

Bert Subin

based refresh you of telegraphed the got expect update start I just ultimately cycle, you Yeah, gotten XXXX. growing business business I just declines a on there just recently. some latter of guess project that in good we I half it would the I that that and once haven't on into you – to sort maybe could since before and you that think see some previous had

So curious, was. line business on commentary your what that I was just

Brad Williams

Yeah. Sure.

or kind that's side in timing is the that timing the I various XXXX really of project or pushes there right be it EOD BEMO filling world. late shipment the be project That really like on we've the really would like uplift. to talked of order kind XXXX. now relative really a that and about looks So of BEMO – the into because think some, sensor blast And previously project would looks

the on it's kind Now line product mix, the first the in year. half – expected as as consistent we what with of pretty of had far

Armor of stronger news expected, we in some been I Obviously, events orders. with Uvalde think in frequently driving the drives been has volume. the more increased surprises. particular has than Ukraine much but no turning on of great that real those inquiries, some which that's like are into the

smaller are the large of also way think these driven of, is you're government that's if really side really contracts well. half thinking duty crowd that you orders. would the kind back on orders in tailwind on but Ukraine, gear same that And Now, than side volume control government there world, by that, has some the driven pickup. been the the that as then of is driving by And

So is kind or half government the back particular of up for everything stacked into in the this US federal. year, with

crowd gear true duty for control. that and EOD holds both So

Bert Subin

on to then point a put fine just And that.

of commercial an strong I or Has guys the of is back sort that On side, pandemic. sort that flatlined? know unusually up you had peaked

Brad Williams

was -- volatile flat. year. It's last stable. It quite been Relatively very

was half First strong. very

got Second been pretty But January, stable half it for for us. that of last spiky has since business. year particularly

Bert Subin

would digits reduction very pricing Street or do pre-pandemic. but you still this of case. And competition, the good that ballpark of single several just for one pricing fair then to somewhere tight? been that's pretty so, hard reported there Brad, know, data, the think last has Is across are if and barriers largest Journal you month low ultimately the I'm double asked me. comments curious that seen say think high relative departments police it the to volume to if of rate in before were it. you decline? and on find your workforce And Got XX% more upbeat. the Wall you've made the it's do I've I to that outpaced that attract just follow-up pretty

Brad Williams

the It depends on comment. first be my would category

head-to-head lines that need sure the we to make about in. in orders we that we've the we at at with From that but this at position any we where we of -- keep right an I value that And when that and like always US continue point the other additional the had a to want example marketplace, lost feel something in held I It's look the know be go product like had there's we have additional being the us that positioned, believe headcount in that we that for with at So looking or standpoint, any have, like to think at not officer the either major how product and of, price of look there, marketplace as they're when feel gaps command because certain we're back moment. except because categories in any power we increases feel marketplace very it's competitors forward. can our we're there's you Canada. price the to pricing the we that sensitive spot we've we're to by increases we taking not we price

they're graduated classes. examples incoming XX% So recruit they're on large recruit of customers cases And actually some many where have XX% about the in some about their only they're short by falling reporting we to specifically Canada that XX% standpoint. of in

expected. headwinds and terms farther those farther falling of in they're side creating have behind which there, So some would typically that Canadian in is incoming orders of some of we our armor things

Bert Subin

for you time. Great. Thank the

Brad Williams

welcome. You're

Warren Kanders

Thanks Bert.

Operator

is Mark next the Street with Markets. Capital Smith Lake from Your question line of

Your line is open.

Mark Smith

quarter? the that seeing did deeper you maybe guys. the outsized then little exceed Is inflationary that pricing, inflationary saw a a anywhere to just Hi inflationary pressure during you're about just that there want into pressure. your look but target to talked And bunch want pricing X% pressure? We've confirm that

Blaine Browers

Yeah.

by about about. that pricing the X% So did that point the exceed talked we've inflation that we've that material talked

team's can we seeing and you that -- are chips are certainly those think there's very we've not execution kind the place demand particular what pleased don't boards, consider marketplace with a say. products electronics, So Obviously that outsized seen outsized in product I items would the unlike premium. I'll inflation. the inflation, of significant

businesses, plastics obviously our then across with is the line have for fabrics ballistics being oil ballistic materials been and the which On fabrics, in moved the core pricing and are around and plastics, board. the relatively non-ballistics non-ballistic

that's So, something of else. there's Xx nothing

Mark Smith

look before improve, And decision just then into of is factor makers' and getting trends a as driving we employment inability at hiring that's just, dollars hiring it or is it we'll to the really budgets maybe law hire? really these within enforcement, the hands see the

Warren Kanders

at the Yes. hiring other a tough over it what's those harder. budgetary really sector, on of It's And that's couple the last the positions. it's to service It's like just of on necessarily law years, based various from side the it in happened things. manufacturing makes going position, not even enforcement of or it's companies, lot fill whether

of function and So, two, it's requirements budgets. that not really be to a want that trained. in one, profession that. And a they a be then be It's profession. function function in the to out of finding the folks, then and necessarily of can come It's pass

Mark Smith

Okay. And the last one for me.

see look to we see more are to deals like some to just are multiple then you out as Just opportunities, you want and A, contraction? but sounds starting B, market, at more I the -- M&A confirm. there; starting it

Blaine Browers

deals. understanding looks deals as of And looking no deals year significant to of a the have we significantly kind in high-teens of equity deals talking more and kind more you will looking the and surprise about the been firms and number the there XXs. market gotten banks think term not to investments, think which their kind with or think from of I of mark compression, our Yes. close flow We've I that opportunities. But and anyone. be expensive, of are private certainly that seat as end at we're don't on the change it's there's is debt what like, the we

So, the a M&A But because moving buying at it's hasn't point tough, certainly it times. is you at and other same deal significant pretty become multiple But X.X we're market don't we don't it gone a favorable you expect to way, the really compression look forward. price the at. -- have more

Mark Smith

you, Thank guys. Excellent.

Blaine Browers

Thank you.

Warren Kanders

Thank you.

Operator

now no further to will this turn I the Mr. call questions are There Williams. time. at Brad back

Brad Williams

the conclude Holdings continued your call. Cadre you and interest will very in Thank for that much

Operator

concludes you have conference Thank today's call. great a and This day.

Cadre (CDRE) 12 Aug 222022 Q2 Earnings call transcript