- Earnings call transcript Q3 2022

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Operator

Good afternoon, everyone, and welcome to the Cadre Holdings Third Quarter Ended September 30, 2022 Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Mr. Matt Berkowitz of The IGB Group for introductions and the reading of the safe harbor statement. Please go ahead, sir.

Matt Berkowitz

to third welcome call. XXXX and you, Cadre quarter Holdings conference Thank

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

Warren Kanders

driving and and our for our first joined our survivability Brad you significant Williams; of year company, safety Matt. for the for demand to our third you, we afternoon Good the President, In Browers. Blaine I'm today tailwinds, as earnings have public Cadre's results by made and on Chief mission-critical capitalizing long-term call progress Officer, Financial a Thank joining quarter equipment. thank discuss attractive XXXX.

cash are strategy and target We X% margins significant our exceeding above free M&A our growth standing pricing material while flow, generating delivering inflation. on

model operating resilient macro has environment, we challenging reaffirm been pleased and XXXX Our to a in are guidance.

ahead, we outlook. about excited long-term our Looking are

model flow generation business and balance strong Our from cash solid. is sheet our benefits

So I as we of strategy element of believe on personally we M&A and on. this a our are pipeline. a a advantage of team spend substantial take we that something positioned Executing well focusing amount to robust is time

in consistent complement actionable safety addition have seen short-to-medium In be we our types pursuing and to of some businesses these on businesses acquiring diversification are will survivability. plays And with core, that that we our evidence term. focus the

few approach about be minutes our it deals. worth from presentation, we believe actively discussing expect incur expenses we evaluate is to see fourth will can and a transaction expenses disciplined are transaction in additional macro third we the quarter, continue we incurred It how thoughtful to the shows spending you that in objectives. the which activity our thorough, and As quarter the environment this engaged and M&A as and in impacts

there. easing the that We The time, to the substantial challenging. largely down, regardless markets borrowings some tightening, we and First, in same the the the our from of as have sectors. the quantitative the shape others equity the been reflecting the credit have capital interest of in banks credit are rates of cost sectors tightened, underlying portion cost. get the with hedged and beginning the and current good other generally markets quantitative ability all, some Fed central borrowing for of everyone and year up increasing have to volatile the switched At raised impacting cases, markets are at performance in of

as [ph] the the to of X.X of expect leverage end the the and through Our net quarter of end was times year. delever debt-to-EBITDA, further net we

in have are tailwinds ability to thank the believe that highly pursuing foundation you. macros, call for and Considering we communication financial industry also climate organic the constant businesses terms that, of being create accretive us additional opportunity will our with acquisitions. compelling turn today, bank on with spite over to Brad. organize favorable markets, are of to in We Brad, a and you drivers we syndicate over continue our our should for the solid capital I overall With attractive to the confident our crystallize. and

Brad Williams

Thank you, Warren.

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

X. Slide on begin will We

mentioned, going our about since As execution strong. ago Warren public has just one-year been

difficult inflationary supply environment and by macro disruptions advanced persistent we objectives a navigating pressures. Importantly, characterized chain strategic have while

have in the stakeholders. tackle to these customers about to operating which and enable and implementation our we will excited We are create team an challenges, model, Cadre value further all exceptional of our place continued for

we performance execution term. We our core differentiators and will continued to continue Cadre material position maintain to pricing QX again above we over X% inflationary to exceeded pricing what inflation. believe amid be our Turning the superior believe quality for pressures serve power products target growth us and as near

low high of the EBITDA adjusted range of guidance reflects flow was once the cash and end conversion our QX again of in our Our significant model, rate resulting strength above CapEx XX% generation.

that adjusted third points. was higher margin more an basis I'd increased by was our highlight driven As This strong. due shipments. favorable we year to our like also XXX to the anticipated, and product improved in backlog remains EBITDA margins quarter orders mix

recent large demand XXXX, orders, at million, and as acquisitions anticipated. had XX, armor September of by by in As government as our reduction stood backlog well EOD that $XXX.X we strong a primarily for federal driven offset backlog

flows. Building accretive acquisitions to to remain a continue revenues our on organic we greater on well-positioned will and remain the we Later M&A, leading call, our on detail. of high-margin growth complementing in cash two strong capitalize pipeline, market strategy actively pursue positions robust terms focused our companies on year-to-date, attractive pipeline Blaine opportunities In M&A and with and initiatives. and discuss recurring core

flow November, dividend the acquisitions strong evidenced Finally, throughout poised return quarter our as our capital execute declared generation XXXX, of consistently and cash both In and in by consecutive we fifth to remain shareholders. to $X.XX. quarterly we

macro Cadre's to fairly on as and demand fundamental current throughout remained two XXXX. we our consistent have X, discuss tailwinds sustainable drivers long-term On an products, trends. of which well growth, slides, highlight update the provide Slide Moving supporting as next we'll mission-critical visibility for market

on see midterm focus a the during to budgets than we With refund cycle, crime election this continue rather push defund. to police

American mission-critical continue the more anticipated demand next on our addressable products, latest funding well resulting Additional we trends Rescue plan internationally. supporting long-term total long-term the demand police market the and to Ukraine from for opportunities affecting as business our discuss long-term tailwinds as to represent Cadre's We'll conflict. include Slide market These particularly anticipate grow, X.

police fill in and of seeing As noted signs we are departments however, per American open an have Hiring, spend past, struggling are we issue remain healthy as to increasing still budgets remains officer. positions. the North

to levels. headcount time to We officer return expect to it for historical take some

number As orders. received on, continued, of in smaller Ukraine carries War inbound have inquiries and the a we have

opportunities conflict expect in Europe, ongoing that will EOD. incremental primarily provide We in the

our our closely to worked well, these disruptions environment. various partners lines. to power and chains, have availability ability serve which in Turning fabrics, and and team's to product backdrop, difficult electronic we challenges to the continue of our on with pricing our delays, materials. on proud we of Against flow supply experience continues have incredibly head this and us a the certain address impact to reduce affected components macro raw our We're

CFO, continue call trends macros. Blaine now stable we our demand monitoring but in to to are Regarding consumer Browers. over the segment, I'll turn see the our

Blaine Browers

record remarks a by Warren's strategy Thank with you, I'll positions leading the Cadre environment. acquisition and recurring criteria long leadership, and key acquiring, high-margin always investor strong market our general process. with integrating patient that and summarizes M&A Cadre's begin Brad. optimizing Under companies cash Slide a M&A successfully X rate has drive been and [ph] the track flows. of discussing my revenues

accretive businesses Cadre disciplined completed in past, expand both As markets This product two and anticipate seek multiple added year, offerings, Cadre's we we and that enter our has progressed geographic further of technology tools. the acquisitions have progress international ongoing and to have expected, compelling implementing and either new to presence we operating opportunities avenues. remain Integration continue expanded we will as footprint. and/or outlined growth grow our

funnel of a we terms of In M&A, have and actively key to targets evaluate criteria. deals continue robust consistent with our future

opportunities refinance, pricing we've and current to market. in we still On XX quarter more becoming on difficult As we and believe lead we discussed based last disconnect to point, expectations our acquisition for which environment. seen to could quarter, sellers between Slides XXXX market new But third XX, a what businesses detail this up results. there's the it's the

and our year. each the to $XX.X by the the mix you The in our half Distribution As million in in margin acquisitions segment margin our Brad the XXXX order sales similar favorable illustrating see, and XX.X% be quarter improvement, sequential of we operating a increase EBITDA by last armor demand that the quarter, result volume, partially was same segment. was the the adjusted that our EBITDA contractual a prior improved half margins was of generated and more agency second sequentially, Cadre segment, goods. large that for significant would income, adjusted net the resilient can mentioned margins product In net model XXXX. strong QX held earlier. primarily as a million for driven year offset for Gross increase $XXX.X to expectation saw armor in third first of with compared profit hard recent product was consistent

a XX, ended a on the XXXX of million debt refinance. QX Net to acquisition, step-up quarter third profit net million the XXXX, Cyalume included of Excluding $X.X for which XXXX the XX.X%. August to on quarter loss income of $X.X amortization debt was the inventory for compared was September the related margin the loss gross extinguishment

more a XX% more quarter quarter. compared of as mix, second As increased product favorable the to than QX result third profit the

very Third approximately free low of flow. perspective, or remind we And cash our produce annually, a upgrades. strong excluding generation ability quarter cash revenue have EBITDA a needs like I'd of everyone X% from expansion ongoing that to facility at is of CapEx conversion indication to XX%

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

to grow was inorganically leverage Our and below $XXX.X net on times debt XX. guidance more significant believe flexibility importantly, organically provided we net We Slide our million, financial acquisitions. X provides through and

chain. and expects in to generate to As could of performance we year dollar $XX.X around If million approach to between EBITDA this the of million and most our million the like reaffirming the due supply hold, our $XXX to based our strength see Of XXXX we expectations. for and conclusion ongoing $XX.X were FX with net for we U.S. in the quarter sales are million date strong be XXXX between the note, the continue Cadre to our headwind pressure XXXX versus and rates with fourth challenges overseas, exposure million. of $XXX and FX businesses adjusted on outlook $X year, guidance.

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

Brad Williams

Blaine. Thank you,

team while Before since note to has been XXXX be our customers are for chain in that the long-term this conscious have our operating an IPO persisting continue create and progress supply and focused strong believe inflationary on pressures, and and headwinds, we XXXX we which questions, environment implementing shareholders. amid macro further model, exceptional November we a call our opening to to will of navigate in value

over Further drive selling of opportunities. seek end achieve market product to long draw over will our capitalize time. our a positions we the the XXXX, operating to entrenched on and EBITDA adjusted year life-saving and continue continue priority, will approach and gross across on we term the and improving margins we structure categories optimization to leverage remains cost margin leading As additional expect look and to to expansion towards

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

Operator

Thank today you. first Instructions] hear Imbro [Operator Daniel Stephens. We'll from with

Daniel Imbro

I'm guys. How you there, to I you side Thanks our the taking the how strength market wins your sales. there chain? driving seen armor noted evening that release, want is for competitor and this on comment in question. would handling is product kind And Or stronger developing Have year? curious, Good the great? Hey. large supply strength? you be saw any armor competitively? that what's update any primary of share

Brad Williams

Daniel. Thanks Yes.

intelligence in Do and is we wins in terms consistent that our position So market do marketplace. talked proposition the we've marketplace? on, have, those of the based in we do. us seen the value competitors how really we what really we strong from chain this couple of and brand about doing. the have they're like And we've Yes, of product in pretty we have based competitive wins our have the the in in supply on with past, the space with

Daniel Imbro

Got you market, getting ultimately there opportunity long-term thinking plus of that over share obviously so that in strong have one, learned From different on market achieved that about on Europe then, on from learnings the anything market the or and about there, And holsters? kind share that ultimately holsters really growth look to far, could it. XX% you've just Europe maybe armor. what early there? you U.S. Is would guys any share, inhibit between the like

Blaine Browers

for its and Radar Yes. was and market, of process getting This Blaine. markets. not And first is I impact Yes, being localization market, a single made. Europe It's are see we customer think more step closer that us, multiple what the in that different a is decisions the to of right? an in having where

sharing board goal It's They locally sharing U.S., possible. information certain it the don't that Radar will think position and of wall-off easier. it's get the in lot long even Europe the certainly of quite U.S. or Europe, superior other between time brand kind do. take overnight, do much nationally, and think much agencies a in get little with you overnight now, departments and it's to today either. more term, is, little didn't us our I sense little we will more as we a they're in just as happen there think So, a just difficult because that it's the following what sharing into and that's With products not a information in get some here on I but and

Daniel Imbro

to the EBITDA Got it. at And The then just a bit quarter. financial nice one, a from guide of some some XQ saw improvement. margin further sequential Blaine, wrap-up. third Obviously, midpoint just expansion implies the

blocks expansion kind margin from you to that to curious, So XQ gets are what can the building that EBITDA of XQ? talk

Blaine Browers

to within signs of products that's drives then Yes, in as of mix execution with products. done have portfolio the the And of and seeing around you slowing. productivity limited that down of mix, what really the most a it between kind teams mix mix price also QX, both know, itself. comes the but or on we backlog, lot different and no product of happy have, of that kind Very view

So it's to that EOD about in as is really more which looks. in us. and to for we QX, heavier be always talk a mix helpful little Looks bit particular,

Daniel Imbro

it. appreciate helpful. forward go I guys. That's [indiscernible]

Brad Williams

Daniel. Thanks

Blaine Browers

you. Thank

Operator

next from Stifel. Bert Subin We'll hear with

Bert Subin

time. the for and afternoon you Good thank Hey.

Warren Kanders

Hi, thank Bert, you.

Brad Williams

Hi, Bert.

Bert Subin

the police to is just detail So to better anything product over when just pricing? you greater sort you stands that net is can been last seeing also days. noted I by, of were you about more trending? there a doing days? data understand growth that Brad, additionally, share is sort hiring XX officer? what that the per of Is then how you is these some the of if you're spend and officer noted last hard increasing, And officer quarter know you to police sales research but is where think come it's Or breadth any higher

Brad Williams

those work backwards. I'll Bert, Hey,

have So that would there. say, I pricing information indications any, there spend we things. on that topic. are not the there's indications broadening on we've side But of necessarily seen higher And don't solid some some of

is. being lot of their the We headcount of like estimate due it XX% on expect we not there, agency. is to The biggest again, but And it's headcount down data or upwards a good one spins. depending

them being ability headcount focus potential gives smaller with on to down, and of a continue to it officers. the So to continue upgrade cases that and funding less group

Bert Subin

side. XXXX. to just on helpful. EBITDA growth you realize midpoint more maybe That's The the up of this follow guidance And versus Okay. financial year about then I implies on X% ahead we level, are of high giving guys if to your just year, guidance XX% we should annual greater target look growth? XXXX, than next EBITDA but not about how think for

Blaine Browers

Yes.

about of process always a top. rate XXXX, of we've in volume obviously that of armor about So depending if That's piece that's for evaluating the the will or that where large is back orders EBITDA like. we upwards currently run to what there's on we're on from for we downwards what evaluating core, think business And look one to the very talked expansion call we're repeatable. come goes And of impact kind directly have portion coming there. of then internally that something kind or instance, the things you kind

talked one So the about, the of EOD cycle products, to I on we in backlog duty-gear go what and tailwinds and what looks as we'll like the core the looks kind Brad side to mentioned, the think have armor, of world Warren through have like. then see those

Bert Subin

just where there provide can opportunity on today? you update maybe And an is blast stands sensor Okay. finally,

Brad Williams

definitely, Bert. Yes,

continuing we're sensor blast project the down So phases. various

only that consider there's good the successfully not II with what delivered successfully from trials So we findings also completed Phase would and trials. were it, SOCOM we delivered for but

deliverables III. is Phase work in XXst III Phase we're XXXX. Phase entering various So into be completed That with the in March involved expected to of now of III

on that's what next. So what's we've up really and what's deck, done

Bert Subin

Thank you.

Operator

Elizabeth next Greenfield of We'll with America. Bank [ph] move to

Unidentified Analyst

Hi, good evening.

missed and think I and the I would what what year? quarter what around the be thought it FX you you impact the it was said in for

Blaine Browers

about really $X being year about talked million we for Elizabeth, headwind of the guidance. versus

Unidentified Analyst

guidance flows? And the for original FX

Blaine Browers

is No, guidance. this our from

from $X original guidance. So a million it's headwind our

Unidentified Analyst

the we forward, going then so And sales about XXXX? starting should how think in Okay. mix

Blaine Browers

expect where us gap. some the XXXX, mentioned, we complete up that increase. good to tailwinds have be entered headcounts wouldn't to do year. armor some that behind to kind officer have filling We be expect as But as we Brad you of

So expect a tailwind gear world, as of be the as given guns really down. the us. nailed because more but to holsters. then we'd the EODs same street a it that little for on and time kind have And is want to to Due side programmatic, officers the much they're we take more go of we of with

Unidentified Analyst

Great. Alright. so Thank Okay. you much.

Blaine Browers

Thank you.

Operator

We'll to Sheila Jefferies. move next with Kahyaoglu

Sheila Kahyaoglu

guys Hi. thank Good first for and afternoon Cadre. our you

chain, called you you're weakness XXXX? that and supply top Can you out materials line how working for capital thinking some going expect talk about shortages then fabrics. to or And of XXXX In that around the impact raw terms and into also you maybe and how electronics about impact?

Brad Williams

Hey, this is Brad.

inconsistent on be from of it's chain. in same, the based think supply has So fairly within going year which some to XXXX chain versus perspective, we're a seeing this what the supply been XXXX we

within safety partner and have helpful, expected items areas have to the our four those where chain in and various our of too. which either walls suppliers, work suppliers or stocks So those worked to our from within We've teams been pop with increasing facilities those focus longer-term some has on on facilities issues. type time have suppliers that up we time with supply

forward, be go the job teams it. next So we but feel great like done will managing as through have we year a similar

Blaine Browers

in related on about flows on timing strategic capital another we million, reserve, in the of area about saw And take in particular, holistic QX. a your here use just working the question, cash half to and did to The ballistics, that inventory, one really is of really half the quarter. impact you in that view the is cash $X.X

or continue So not on flow to drag to at next evaluate. year, this it's cash expect a but we working something it we'll do capital point, be significant

Sheila Kahyaoglu

like raw just the what the deliveries? Or that the is terms And Is a of material it is in slow specific is it being material? supply issue? chain

Blaine Browers

be fabrics. An example would

calls facilities ballistic as common their it of stems type supply supply For example, in it's issues. know, terms or the chain, chain us biggest one with one the of across been many within within has we one has on that chain, supply been step labor whether of the fairly the from. in we do labor group suppliers their materials most common some within those Typically, of the that is, back have globe availability which of issues, the

monitor that of. So continue that and to have would we sure we're in to make control be one example

Sheila Kahyaoglu

Okay.

Now that makes sense.

Brad Williams

Just holistic shortage. and or it is This supplier don't both would one that EOD. chain the throughout think a intermittent that's different as cover with supply about materials particular material armor on

Sheila Kahyaoglu

police then are if one positions ask Okay. maybe How talked of a you No. City in fill guys over bit. those seeing the That's I you looking more, super transport And the background, New are about could York struggling helpful. trends and to time? in sirens sort in not being intentional, the police department have but

Blaine Browers

they what as going have gotten our Those down, continue, recruit classes. And recruit that have or look going seems, they large our things our feet but into recruit, if and also continue the we it sales owned and classes Yes. that was we as aren't continued. distributors most would things improving the in own see on are force. third-party it the we to had like folks and up street agencies Coast as information past. worse, then to distributors up able specific through Those not have continue data then to some and company-owned at get also to have wish and East I Again, be our trends

comparatively it's discussed. feel to we've like previous So flat quarters I that pretty

Sheila Kahyaoglu

Okay. Great. you. Thank

Blaine Browers

Thank you.

Operator

Riley. hear now We'll B. Instructions] Van Jeff with [Operator Sinderen from

Jeff Van Sinderen

I ask improve there to create to opportunities contribution Hi you're see guess, from everyone. did efficiencies, relevant Most but of to the Cyalume seeing new my have Cyalume? you questions grow, to want of, latest about kind been I answered,

Brad Williams

Brad. step our Yes. playbook the our Most is one. take in far Cyalume This in that Hey, so been model. of work operating one has I'll is implementing

making of process, power worked pricing been as there terms tools with monthly implementation management, business great So a them. we've daily progress the of reviews, budgeting lot with we've in that

So the marketplace other a team the selling like that both we have on Cyalume next separate steps terms side of there working scenes, approach in could do the selling that's coming been and the and of core with with far. Behind areas various initial up the so the products things team we their Safariland be with selling on focus opportunities, within how growth feel the of within. then a product some couple we team,

dive come all of Cyalume. ourselves and will quarter into the through with those within side it to things. be the decisions are we nothing on our our in to first And Safariland we and as we that leveraging organize get later way how So brand could the have as going some make do we channel

Jeff Van Sinderen

mentioned some then you I Ukraine. stemming orders think small maybe And from

was. gathered I'm time frame that I just I as XXXX heading to wondering we're any that? maybe think how and that around was expect into it And progress you how

Blaine Browers

offensive at currently You demining now, and definitely put around the look for the weapons. you think out heavily is Cadre funding, EOD a Right the we recently funding of is U.S. Ukraine. applications, where military in which got really engaged the comment towards when opportunity for with for right. it's We're been Ukraine, countries couple

I Street Korea buying artillery military and pop South U.S. Wall a Journal rounds up or around shipping In think from fact, article them I saw over.

very pick of as teams are high too the think as conflict with working Ukrainian XXXX, contacts we is as but So very government we and get being context well. a tempo up in in the little do well both still proactive expect serious, to local for them the that to bit

Jeff Van Sinderen

Okay. Great my to taking of hear. best luck questions of the remainder QX. Thanks for for an

Blaine Browers

Thank you.

Brad Williams

Thanks.

Operator

Lake to Markets. Capital Mark on Smith move We'll with Street

Mark Smith

guys. Hi

First off, big picture just a question.

on these we historical Historically, but maybe as products, contracts guys you the bigger be on have consumer thinking about seeing and recessionary of as we from some seen are guys also far as Just on historical your thinking environment about, business? you budgets? a in impact impact impact what smaller recession

Blaine Browers

Yes.

commercial right? generally that On going the products, So you I it follow that will be impacted. consumer-facing have to that's side, think as recession one,

good our I is think the portion not our significant that's revenue. a about business news of

side, stable times police. police day looked over as the On during we recessionary the funding years, been the kind at the the of has for

in those to downdrafts a environments non-discretionary it significant seen haven't past. in When funding, products. the government we're comes again, we So generally

those So timing around I But you would supports the don't say during XXXX the a trended around teens. financial orders funding. session cases and even than timing is or some XXXX, think the in though data or during municipality the and from significantly perspective may industrial movement more down spending seen we've headlines When not the there's crisis shipments. the where we've in early it, even the you other really a think I that lost where the case recession do see in I movement normally.

Mark Smith

is talked start opening to that then capital M&A see pipeline seeing expand? that before guys up guys Or And to some Are early opportunities. tough we markets you start you still it Perfect. about potentially being similarly, and expand?

Blaine Browers

last in funnel, the we've XX say XX added would targets more has which certainly positive. I into the days, Yes. to been

believe these it the out I remain comments, get along at level As for and time to for activity. waiting in it's targets I and come think there, the of market It's effect other Capital But refis which really a companies door with current are and expensive I mentioned Warren may my the expectations to that, to timing, as looking conditions. the activity, tough out increased open the their rates some alluded sellers it, into and take number adjust on just bullish will just we that is there. right. to

Mark Smith

last Okay. to the the And on just FX. question, clarify

million from You against we FX? $X.X As quite seeing guidance. think, headwind Can to the tied of pretty expense it quantify about that as FX you're said, I not kind impact of is other it, through year? look the what some $X throughout you or much million

Blaine Browers

is question So through the year? the

Mark Smith

it quantify you if year-to-date? maybe Yes,

Blaine Browers

a little million, our into QX. bit of versus guidance, $X Year-to-date more it's about go to $XXX,XXX

Mark Smith

Okay. Perfect. Thank you.

Operator

ROTH Matt our Koranda with And has question. next Capital

Matt Koranda

evening. been understand lot Hey to sure make A wanted answered, but mine and I I guidance implied guys. of sort and fourth here. have quarter the of just asked Good clarify

like looks so. it $XXX So million midpoint at the or

Just quarter. curious in guys I in had mentioned seasonal you the fourth Cyalume and Radar know comes from towards as more Radar past assuming how much the a quarter. little we're bit the

sense a get to go any thoughts wanted kind just organic of growth and there contribution forward? rough So maybe on for

Blaine Browers

Yes.

a business. it's Cyalume For very steady

been on revenue we've a this looked looks of Again, talked Radar's it, the fairly frame, kind in that comes a Radar's historically it's chain good time again, level happening majority visibility orders December We be have their large portion quarters, supply at which managing through of just in and about September really of As business. we've backlog really loaded. a not to year. seen but definitely

what go going of that overall to significantly needle on you move we paid back If to revenue. the kind it, for it's not

Matt Koranda

once kind is on I that heard the of fourth just richer point you could year-over-year pretty for Okay. finer like, margin if put baked I it Got a hearing assumed. improvement EBITDA it's product put And of point if at And kind it. the And into it think you more through a just fourth mention in year-over-year, could that finer quarter? just just and I'm mix of healthy sounded quarter, you correctly, but margin a look EOD, improvement then on I what's the from revenue. improvement you where coming go

Blaine Browers

Sure. Sure.

and around were that so but a this last is it's the a gear. back one drivers. side talked since So which the for the year far, is year coming drivers strong unpredictable of been bigger more and component, certainly the quite half. half is as due lift and comment, is another of then about into being first that bit in large us. and steady volume consumer through to certainly that's a channel on EOD volume big year then of but a well little really a year in great, is We've normalize very is the sequential second of that that the the And consumer We markets commercial softer markets, duty unpredictable seen and one big the half change mix

Matt Koranda

Thanks. Okay. Very helpful. I leave it there.

Blaine Browers

Thanks.

Operator

back at I And would things time, to all remarks. closing questions for with no you turn like to other this

Brad Williams

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

Operator

Thank day. have And conference you. a today's all, conclude you great does and Thank call. this

Cadre (CDRE) 13 Nov 222022 Q3 Earnings call transcript