Earnings call transcript Q4 2022

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Operator

Good afternoon and welcome to the Cadre Holdings Fourth Quarter and Full Year Ended December 31, 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. Mr. ahead, go Please Berkowitz.

Matt Berkowitz

welcome conference Holdings call. and full quarter year XXXX to you, fourth Cadre and Thank

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

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

call Warren to Kanders. At this would turn Chairman Cadre's time, I CEO, and to over like the

Warren Kanders

President, the fourth joined XXXX. earnings CFO, discuss you Cadre's results call today Brad for and Blaine and I'm thank Browers. afternoon Good of Williams; to for by our joining quarter our

critical company, our model to read and full building more on and completed mission corporate a the are about as progress on we implementing out our welcome that demand our capitalizing now year fiscal tailwinds driving the website. you cadre to Having equipment operating continue for make first public

also that known significant solidified political, than is funding a approach. support well contribute country safety retirement case our across the the are majorities dynamics set that to police departments is best where and is bipartisan experiencing social business. generally, pulled higher of has and public issue attrition agree of It These and them to for typical all Speaking it and around political racial as that that socioeconomic we better the an police development factors more the almost attractive groups industry ongoing rates. expect

we proud will IPO the further our our fact the and that we go able the at to made a deliver the on of into of details have results we but the way of in since our then. Brad time been are Blaine moment, along investors to and commitments

we stakeholders. completed disruption acquisitions two them and During their seamlessly without and XXXX, various to integrated

bringing been able employ have by we significant business we of We pursue meaningfully already bear believe improve all the across acquisitions. capacity to At the and time, that generating additional to we to operating same tools provides are flow cash free businesses. each practices best our

environment, and inflation pricing company. are for met expectations out to our we earnings challenging that equity analyst set the We maintain by margins are to our exceeding pleased targets research and cover growth have us

on. we is capacity something and M&A of that of substantial to time equity take Since fact as about to our strategy on and Developing are sheet a executing business amount outlook, we've addition balance our have I generation. personally we of team our is in strong to that long from a a in medium this cashflow completed offering and optimistic spend benefits solid successfully Looking we term the element model confused substantial advantage environment. follow-on XXXX, ahead, focusing our a

we impacted Fed Adding various psychology in the the there the is have substantially risks interest rates makes durability stating geopolitical now. on the to of by around we of be obvious, This us rise reminds concern to grateful on focus invested significant and M&A macros, and the and us targets in uncertainty economy. transactions. about and businesses the of to businesses comment the that, inflation are resilience the in trajectory why To when of prioritizing response our

or for also be risk debt more by since It issues to on or creates buyers opportunity reliant an other active. many our other robust factors potential company are portfolio either frozen markets generally

it months, Given better the in owners environment lack and last to macro activity Cadre. to looking for transact longer the business the pent-up of of nine the six this persists, backlog build, my M&A over is to continues the opinion,

for more year. a XXXX in in have since this are and and company to through of hope continue predecessor and Cadre, have economic we with to decade a that different it the or on different seen I Putting many is cycles. best through some the that these What lived markets and see context last arise been for on I when Cadre credit opportunities have Today choppy. things compelling effort opportunities report we dislocated and to have work

previously we prioritizing of addition consistent with plays diversification these businesses pursuing we that to focus our are traction increasing on pursuing acquiring types discussed, we areas of safety gotten complement and have about as Speaking have on focus in businesses. and our core,

banks. led we America, bank we have risk of believe we set not freeze we've place deals. we one we approach which we add in have Bank believe regional expect have and evaluate year, do to two of for and do and pipeline to quickly credit team activity able beyond. integrate so should or this ourselves would that, recent related place patient, to thoughtful acquire to to the the we of Having up as about conditions by for this businesses to the be and that XXXX them our using facilities is thorough, able and our all of disciplined, on I our area, the group Based be devoted and level in PNC said we remain this

our current portion recall, probably of last you As in beginning the a year. we borrowings hedged substantial of

end operating debt, to cost So leverage net blended the interest cash X%. approximately through rates our year. lowered we X.X generation, remained with at below de-lever higher slightly and expect times the of year of our further we to Through the free flow even

considered, a that about are the year drivers pursuing are tailwinds the macros we to organic we favorable our prospects with are things in long and All accretive world, of foundation stand in that excited Considering industry this have continue acquisitions. solid and we state solid comfortable we the believe our and our and we drive maintain where term. for the businesses confident business

call I to you. over thank Brad. the will for With Brad, with over being you to today that, us and turn

Brad Williams

Thank you, Warren.

strategy four, business to cover performance we'll moving overview, slide call a new and quarterly outlook, on review a So today's XXXX and provide followed our financial on a M&A update products including by Q&A our and and session. of

have record in We'll pleased quarter, for a environment. we to challenging strategic begin on objectives is and XXXX us advanced, the fourth year X; are further important, Slide despite a macro

teams global security and done to work of to to outstanding and an continue protect innovations lines enforcement, add on job we military, the Our law that professionals. new have group Cadre product premier

equity. in again, innovation fourth the share we've launched and the to update products brand Once growth exceeded call demonstrate to quarter. target three we X% level new of I'm commitment our that maintaining our on material excited the inflation price highest regarding later an above

pressures. maintain premium cost to and a of With we said, our strive and to performance the assist products, our Cadre's to us superior the appreciate means enabling quality position. recognize with position labor that market monitor use as material Customers in and and to continue productivity

continue the to teams Our a rollout job around little globe of with great day progress structured our a at operating the Cadre every have operating and model. done better

Fourth low model, significant quarter reflects generation. and XX% cash EBITDA strength at of adjusted strong conversion our driving remains CapEx the

fourth product driven see the continued higher year due quarter, was of their QX related expectation. improved EOD with we the to In year, mix, to better mix was Turning shipments. to in consistent first by and half which mix to the

a inventory same acquisitions As up last points, QX impact to margin step margins basis compared improved result, from the gross excluding year. the period -- XXX

remained Regarding backlog, our it orders strong.

$XXX.X of million. stood our XX, As XXXX, December at backlog

the of year XX% the total QX, was our backlog is which decline from versus reflected and the While increased this in period. end significant revenue, QX anticipated prior

a of maintain M&A opportunities. Warren we As funnel is and priority healthy mentioned, a top

the navigate deals on in in with we later detail greater environment, the we key discuss actively evaluating our will Blaine current our on remain and pipeline criteria. call. As line focused strategy M&A

sixth Finally, our capital consecutive to $X.XX. I'd consistently our highlight us dividend quarterly strong February, only like that to cash generation positions of also flow execute paid shareholders. we In but not return acquisitions,

in Slide six, mission-critical and continue intact growth. markets. sustainable drive Cadre's outlines visibility long-term our These both and tailwinds tailwinds domestic and international for to remain products demand supporting macro

last the business our two latest consistent to these on several over fairly Slide the affecting have seven, months. Turning remained market trends

American We healthy. continue positions. departments increasing that spin that With to open police officer remain fill signs see given still budgets are per said, of struggling to North

we have to As historical return past, headcount to the levels. we to take some time in for noted expected officer

the to war point. be our and to is there expectation up opportunities orders the in have that we Ukraine, above EOD related will over this Additionally, seen

timing, demand once would we conflict of the terms In anticipate deescalates. additional

during The next quarter of raw year-to-date, bullets of are are flow in various experiencing delays, and impacting and the the trends we pockets seen supply and expanded the the labor times have but lead fourth in disruptions chain still less focused market; on the availability materials.

labor chains, to supply force remain ability Mexico labor focused the to attract needs, and face have challenges. continue this appropriate difficult. of an managing employees actively and we near-shoring to increases we to At in comfortable developments meet minimum As our time, in made but on retaining hiring our more related wage our certain also with our we're monitor force

to to is as not and While a are this it we view a wane our business, trend watching options we hindrance major address. do

of macro demand consumer concerns terms about despite stable our In demand broader weakness. remains segment,

to channel Cadre. a segment is new this monitor high this with trends We margin products continue along launching as in for

market briefly three Before Blaine, introduced about. to I'd the that are recently we new call over I products turn to like excited to highlight extremely the

terminate categories We've we our earned premium innovation, share company which maintain was on do. and relentlessly product work commitment in Our proposition. leading market founded to all that continues value to to our

present latest On our holster customers began Slide this eight, to month. Safari-Vault, offering which shipping we

of wanted enhancements and offers As improved an design durable that adaptability enforcement law we the needs with officers holster to incredibly evolved, functionality. create

leader decades, in shared with product almost help this retention our Importantly, has is us we firearm can for the made features position. differentiating six that Safariland, industry defining believe maintain and key the has performance brands consistent our that

capitalizes teams, special officers Slide our and more market hard is more was at adjustability, armor that and a platform, technology. weight ballistics of nine, niche in and tactical our material, strengths armor excess SWAT and canine soft customization product give highlight while eliminating ops and new to This units, aimed on Next, HYPERX, we designed on and comfort bulk.

share in against this and we've our grow of companies specialize indications to that initial the tactical share is gain armor goal Our market seen in area.

developed Third, in we've proprietary called a Using and a Slide XD app we measurement method digital into model outlined XD partnership XX with to with two sizing XPERTFIT, convert XD over full look, body a photos introduced on points. XX. technology

technology, with decades industry of the has measures. Before this development spent first tape measuring the responders manually

our of and is Cadre. individuals our position comfort. exclusive fully recommended fit consuming believe fit size of The highest process dressed responders, to is first coverage in industry different measure protective expert is optimize and the technology can a in important We representatives. The for recommended with Determining this our extremely sales seconds. Safariland very a distributors, accuracy time app for determining

lower. which to early space where have have new cycles, share tactical body too armor tell wins the our the is in what products our to high to maintain will meaningful refresh share we won drive extent and positions opportunities summary, experienced much early is In

Blaine. the to I'll call now turn over

Blaine Browers

I'll begin process. criteria remarks the M&A in Thanks Slide XX the acquisition general drive discussing my Cadre's Brad. by summarizes strategy that environment. our key M&A

focused companies grow As our either on new and and our strong well, with leading and expand positions footprint. markets, margin cash familiar with Cadre market investors are technology flows geographic and/or that product we recurring high revenues know enter adding offerings,

both we multiple growth track focus, that drive and expanded successfully remain international strategic Integration presence progress. businesses two has of and on we the Cadre efficient further been businesses operating avenues. with added Cadre's XXXX in implementing added tools Consistent to further

continue and targets In of a patient robust funnel criteria. with actively of M&A forward, remain key evaluate terms opportunities moving will we consistent our to

our year and XX, and detail XXXX XX quarter Slides results. fourth On full we

adjusted EBITDA a As of results significantly net you off financial evidenced capped very QX can increased solid our and XXXX. see, by year sales strong in

the illustrating more were we with earlier. our these this operating to in resilient out in laid Brad EBITDA Importantly, year, saw mentioned sales, net income favorable model the earlier improved in line Sequentially, the QX adjusted we that year. net guidance QX and QX mix

orders digit project In sales The This impact goods. agency strong and was offset products. XX% increases gear EOD and by was fourth quarter by control addition crowd timing Armor, increase in in partially the driven duty acquisitions. of driven segment, to our demand products, the for percent double our backlog increase distribution recent net our hard reflects was for by

Gross profit of as saw be XX.X% second similar margin margins year. our with note last in the quarter, the We XXXX. margins fourth that first strong half would was full gross year XXXX we was for margin XX.X% consistent half to the that XX.X% profit compared to expectation

of XX.X%. up Radar and on the step Excluding XXXX profit inventory acquisitions, margin was Cyalume amortization gross year the full

XXXX year net in range. on expense, EBITDA compensation and in of and of Fourth $XX.X debt and offset XXXX of was last million to of net of line guidance income indication sales free was income the the related XX% full strong year, a August, produce an respectively with our of This $X.X quarter our is debt by cash million as extinguishment compared flow. result ability increase conversion to a XX% refi. stock-based to primarily loss increased partially net as

growth slide, for our adjusted and Cadre's and we Turning net approximately I'll EBITDA XXXX a both sales annual on expect growth adjusted rates full organic over EBITDA XX.X% time adjusted EBITDA of in X.X% net sales and sales to From Based range, guidance our the year and net a the sales highs. years. XXXX the growth midpoints last we Notably, for net adjusted X% of next we in XXXX. and EBITDA all achieved were illustrate moment, which through respectively. CAGR three XXXX, discuss

structure of capital Slide XX, our XX. present as December we

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

XX. Slide provide on We our XXXX guidance

of ahead, macro to the due As reflects and natural an this outlook our we some downward uncertain cycle look EOD on environment pressure business.

there mentioned year-over-year create EOD can limited the before, we cycles swings up As users both in of given of the of and timing number down any are products and year. refresh

refresh around headwind by Our $X driven revenue of million reflects timing. guidance that

air Despite armor duty to and products that we're price about margins this continue our offset offset drive mixed optimistic push and pressure, productivity up and inflation can We'll to pressure. this. the and

two of growth. that are we ongoing our true revenue, needs is CapEx XXXX, strategic about for before, investments mentioned future will are we've which X% but As also enable making

one-time times exciting we're in growth, their five we the investing in many team. which and for Jacksonville about for First, today and The currently three any our years people the more us duty facility. is years, gear as ago. expanding did Due investments to facility building continued we seen major as need for have space, and have we a hasn't many

EBITDA cloud between also $XX generate and million moving million. adjusted expects some next are and million $XXX an XXXX in locations ERP million our to and We $XX making in year. Cadre investment in net to XXXX between of sales $XXX solutions of

full to EBITDA XX% XXXX. for and be Additionally, we the XX% year between adjusted expect conversion

Brad I'll it to comments. back for now turn concluding

Brad Williams

I'd by military reiterating in year for like our and outstanding Blaine. enforcement, of Cadre, and supply backdrop and markets. against chain first is XXXX you, inflationary pressures, team's disruptions to a held positions Thank responder insurance our that conclude execution was we law excellent persistent an

adjusted inflation above X% each pricing record sales quarter Cadre full growth target exceeded EBITDA. generated year net our and and

in at pleased acquisitions commitments our XXXX. are to time accretive We deliver to able including to on two and made IPO subsequent we been have the of investors completed

to survivability prospects are equipment. ideally As mission-critical Cadre and confident believe positioned and our and our and providing business enhance further we safety leadership is we in look ahead, strategy

to structure to also strategic over seek value, we objectives to achieve time. continue for expansion we build margin leverage execute and significant look As opportunity drive our cost operating and

the Lastly, disciplined are current while our line we actively focused deals environment, maintaining have discussed approach. the criteria navigating in evaluating our challenges of we with key M&A on in

hope year. to compelling pursue to later more continue share to and We opportunities have this

the With Q&A. up for that please lines open operator,

Operator

Stephens. [Operator first from afternoon this Daniel We'll take our Imbro instructions] question of

Unidentified Analyst

Was Looking one-time for compare and year? quarter maybe in came anything thoughts than provide this on at some how higher next should could quarter. SG&A there dollar the growth there expectation our growth you

Warren Kanders

second next needle real onto year, on Sure. we stack this forever, Maybe move timing we're that one-timers SG&A. right? the That's of it well. our think we similar When question. larger year, just this that and projects in year. of basically, next part seeing I think There timing can That as I no dependent not the is start very very about up similar kind meaningful quarter will to with just your year for and that's I'd the year then next solved hold reflect something

Some normal. just than commissions around of very but reflected other that's that and volume,

Unidentified Analyst

helpful, That's thank you.

follow-up acquisitions a How's are the recently? that in last organic As there the organic these years. you accelerating couple in growth fast businesses? market in, some added Europe, within acquired been you've growth how that Or

Warren Kanders

the European it's different really different growth Yeah, businesses stories. for and drivers both organic our

the they've about well the in So done UK facility, as in significant facility they've Australia or as businesses we well the UK. gains armor waning think with share experienced

So impact. and have say, organic seen, though Smaller single they've can I businesses would an growth. outsized solid customer

unique and the departments the necessarily connections and and at on due police former I Pedro, With there's there to owners cross was bank this the what agencies their be radar, of and looked continue we we opportunities year. owners selling with opportunities to Paul Italian line corrections think But of expected holster, growth with of acquisition for in some, the as we Radar didn't their I and Italian think, etcetera.

organization. -- model operating So drive there model the and going deeper future about the forward to operating the into very that excited continue

Unidentified Analyst

Super helpful. you guys. Thank

Operator

of now take from of Bank next Elizabeth America. question we'll Greenville [ph] our And

Unidentified Analyst

organic what out into break bit quarter? fourth in growth just more. little you Hi, specifically good Did organic the I wanted to a evening. growth was the dive

Blaine Browers

the We we That's a basis the we on And, saw basis in acquisitions the year-over-year in haven't the disclosed duty what business not that really year-over-year completely in organic was is pretty QX. growth as the the size a business by saw well on are armor certainly driven clear. drivers year-over-year and it's as but, strong acquisition. performance QX gear those

Unidentified Analyst

you're is we line end. low Okay. the on somewhere top top X% to talking think guide implies, the I the target And X% about M&A for excluding I doing as that's line then the XXXX, between right, and any X% assume and think X% growth, that's below about

So was sort of driving the what where high curious I low and just -- factors the end the there.

Warren Kanders

Sure, yeah.

the -- end headcounts, by while we're in businesses. us, for particular replacements, duty is and both and consumer side impact the On the a really things for scale isn't the is watching consumer driven it Other through is, main that have low around and does really and pull the armor are, officer of outsize on things. that's huge piece for margins higher on two favorable drop end the an gear margin

One on year. expected, There we're faster could did products we've we new assumption the itself call new accelerate new three would all technologies the drive that feedback adopt about be If the not so past the talked on market adoption both the in is products, products. by and excited slow to is is certainly the rates in the than so Brad's is new far certainly possibility the it. as huge or gotten that

we just a is have to is funnel that And a large out this projects, and robust lot internationally, another of to movement. internationally those EOD, is tend piece exclusive there see of but not

better to between us they but, assumptions those we're high could about we that wise drive our two around end. in the expected careful projects, those, those timing So come and as certainly

Operator

Scott from we'll And Jefferies. now Forbes of hear next

Scott Forbes

taking guys, my for Hey question. thanks

the some extended You've times lead continuing. materials and talked raw of about

we guidance, do into the think you supply Just about XXXX as what's within how think about chain baked that?

Warren Kanders

as constraints our supply picked We're Yeah, hard chain, products. some the I armor in seeing we're around areas of demand's supply think that the on up. one demand also armor is chain seeing increased hard

a we're our taking So of kind view I of we're taking think guidance, sides -- the both in realistic outcome. on

say say I that there's I last not saw where would the quarter year -- when view is, increased we're incremental the stay but is. hard and gotten, more if is is, to gets on supply face more likely back holistically they the say way when some of it went volume year chain assuming, it the I the worse, two, on clear, whole, say constraints. it armor stays thinking not first half and or our not we're we we be we really of We're It's constraints. into kind stays today, will it the would But significantly where way next

Scott Forbes

just the the through on how And quarter that then progressed where on sensor blast any today? stands maybe opportunity, update and that's

Brad Williams

can hey, is Brad. I an this Yeah, on give update you, it.

things phase testing went We testing, And two our testing pleased So the of through. overall the results on going with in concluded that few it up a October. by that on customer we're there. finished

We're currently complete human due be blast the type no testing. to than to to days would in October support and three phase phase three April with then timing. in testing a couple later SOCOM really which XXX customer has factors testing, And that deliveries of sensors type

is the before that funding funding blast learned has discussions we've have this present project committee recently will sensor or move There with additional permit the And findings for project SOCOM happened what house that SOCOM. required with forward. is that some

looking So regardless today. we're to we're project, from that of That's overall potentially at XXXX push at the XXXX funding overall. where for a

Operator

B. you. We now next Sinderen go Thank Van at Riley. to Jeff

Jeff Van Sinderen

potential for some so is how to drive your if things on the holster these cycle? on upgrade there's that's but to Hi add to touched I that what see platform everyone, gone launch, of far, at know comments, just and you do this maybe the you think prepared and juncture, wanted in new the more

gains. there's how about also bit there in share latest more you're the speak And the fit, more if could speak being tactical seeing provides a you that lightweight armor and new little maybe potential custom wondering about to just if then more market a characterize that's received,

Warren Kanders

absolutely. Yeah,

at Show So, January, our in some the started Shot shipping product, Vault with this fits of month. line new launched we and Glock then officially holster the we the Safari

testing a of major So, there's the damage the weapon is for we've we're and we've testing moving been holster do agencies write-ups and mechanism interesting can the here What's out gates. doesn't to potential and that of snag draws some definitely because out the do had product ALS. some it locking not in of change that the so made inside happen holster that the that how

giving where of They're great giving opened on brass on holster and They're that. feedback the great get feedback lodged can the end caught.

We if have inside an agency weapon that that's holster. recruits the can't holster you and brass been an and issue re if with training, have you the happens, new that down

been So that's a big positive.

significantly guiding the weapon of feedback is great in what's a into been the The holster weapon improved, point. the stabilization of also

So, it's good really from customers. the some -- in we're we've initial getting but indications here, very, game very early getting

had to is the these features the refresh Now see as we've will product, and we forward. the the see the don't product's Safari to trip We benefits the And results short it new if product, longer don't going been We'll trip cycle? know on additional go than so we've question product and -- that cycle. will added HYPERX be then we We'll answer. is far. that great that Vault out yet

the product with various to teams, in also we've for been teams, not great and marketplace. win, able reorganized is product. our we've does resource the with opportunities making his a SWAT bit of tactical and on special that all spend so We've a canine a product armor Customers units, strides in this focused ops new he's that been time have pulled one XXX% out category, we he that resource

as we're So these pleased gates. very two outta we've gotten products with the

Jeff Van Sinderen

kind of the characterize front, the seeing to backdrop thinking on kind That's where out there to pressure sellers than tone later? you're the rather great you then to compelling may price hear. could their guess be is maybe if latest applying the acquisition regarding And levels, adjusting take acquisition of the on more or able out of realistic sooner I opportunities point real advantage to you there just broader

Warren Kanders

seeing what seeing change talked massively interested often we're Yeah, I we we to haven't companies from would then seen really selling about not really than not say year. it in early. not, last more --

pro get discount they're adjustments, try trailing in that way XX take case, to have the rather fall still, paid up they're the especially towards -- whether leaning letting pro those I front. forma get where than into they think formas and case on a the 'em more

the But I'd say good. level activity's

plenty companies Warren It's out can there's to to said be of it's we're be right, We I as there game. we and first is when. are going our on a real return a that And that just work make turn. want of matter long ourselves for So the earlier, this careful capital. spending think how -- careful

Jeff Van Sinderen

Yep.

As you should be.

Okay, thank in queue. I'll the my you for questions. jump taking back

Operator

ROTH next go we'll now at And to Matt Koranda Capital.

Matt Koranda

evening. taking Hey guys, Thanks for the questions. good

in anything the out do there's that you assuming curious if called to know you $X Just million headwind the your on guide. can you're end kind of compress refresh cycle. I

or you XXXX? that there which actually scenario the under a $X that you aren't any of is in whole get So portion million assuming

Warren Kanders

that it Yeah, on civilians safe where larger or be creating probably of focus would our If weight stronger that could the creating see to offset that in safe certainly change certainly can't but, pretty areas kind a than other help something lift goes, to We take there's refresh it for that headwind, there. the we predict Ukraine -- for unexpected significant military I wouldn't to areas this replacing much enter, point but drive cycle could that would it. up. a we lifted have guidance whole demand than get a be currently don't in that would it where

Matt Koranda

the just seasonality Okay, we that's for terms fair. not that help of any yet just cadence can you then meaningful be think the I think Should change guys you us of could. that have of revenue not anything? we're this part anything radar given And it kind a help stream, revenue last but or for is just cadence help year, couple about in calling us year, said if back qualitatively QX, maybe Blaine know on more to that acquisitions we the you it type does thinking out season kind year about weighted just another half organization of

Blaine Browers

Yeah, are comes businesses when that it to asylum timing. different very right,

a differences been much the not business any more And evenly major quarter-to-quarter. generally between no there's say has Asylum seasonality, quarters be not spread back tend we half. radar's to when whereas

When similar we cadence to about XXXX. XXXX, it looks the for think very

heavier than That's, that'll we see that back to sometimes year. QX early. change one you'll as So in are head little kind tends right project half the bit, thing and of coming a first through half go those in move that projects out certainly

we we we to be something XXXX. always saw expect to similar in very it or it's in XXXX So we watch, it but what very looks to what similar saw

Matt Koranda

ask more then great. on the of margin. one pretty about it eats We'll And when it of price the guide, kind color looks above before, the if midpoint just around likely more guys of what EBITDA was it's I flattish of any into that X% you material think have. just but much question I Okay, just inflation asked in, on like could just and sneak that usually kind

kind headwinds assuming. material and or a curious that labor it's if more thing Just of if you're it's mix

Just that'd help put helpful. be a any that, on fire point

Warren Kanders

on much it's more Yeah, the about the component margin. mix

achieved above X% businesses there, the So, have X% that in material that in guide, all inflation. the we

elsewhere, but lose volume our a there's in that mix for lines like saw feel the don't changes us. of margin that then so in products year, that just coming into we or anything what there and view and serious particular are unfavorable it's as there our and So, the on profitable EOD armor we one more we risk

Matt Koranda

Thanks helpful. Super guys. Okay.

Operator

Markets. Mark next go Smith We'll Lake now instructions] of [Operator Capital Street to

Mark Smith

guys. Hi

the look cycle? You this probably products launched, pulls typical spoke of bit this some kind at were of new demand kind know I forward this little replacement that above indication a of question's as that any maybe early, and we but about the some

Warren Kanders

if on We'll holster not the of we'll things. premature dries especially in getting line happens of the rid a cycles. positioned what early, seven marketplace. Vault have new of they're that there it's see the we'll but, as product Mark, of series the XTs that's our currently holsters too And new of, see side see then Safari We're replacement of and line product, we'll

Mark Smith

development product anything have spend you on there, and your thoughts do know products you pipeline? pipeline? new but I feel R&D around Okay. level and kind really not new of out you confidence And this then can't your in tell that's any of how that us

Warren Kanders

what into them go but at with get that I'm got development We forward. are before talked right in major categories as that this we other our spend. consistent terms about be products point, excited about It'll in a Good. can't these we've details of R&D couple we've of and really there's now, under

And other what earned where that started. ourselves to are others wise where it of have. example, there keep in marketplace, duty gear that to the things, that categories XX least those there we We position we that from for innovation really continue US want mind do gain have. That's the share share we've at position to side that things high good there the we products to and are about company away spot then maintain lower in we over and years. have in share, Just to feel keep pull

Operator

We go Bert next at now Stifel. to Subin

Bert Subin

you a categories? for geographic standpoint and areas or you there certain a get product thank ebbing and afternoon and that prepared hiring highlighted correlate challenge. Brad, is sense Are seeing from police least in the you or any is improving a hiring with the your you how remarks, way remain the In to volumes at good you questions. are that Hey, flowing

Brad Williams

transfers we're what are like folks. of Yeah, recruiting terms better things lot new south from hearing in going -- attract the but answer headcount there improving, of that's there's there necessarily short bonuses southern is anecdotally, think and they're happening with to states getting A happened doing and that in south states of that don't board. on a northern job that's recruits the in from

some and an have opposite that customers us. that's have the direction is in also increase international seen recruiting they issues, today business have in we that with projects the countries some recurring we of What having and talent

new we're would say one not based material than is we've a up popped anything in So how overall that's across the geographies. more business around lines to what and that's seen quarters. But I previous diversified on it product

Bert Subin

sort up you should up? how slowly bag? of sounds previous a that's in snap 'XX trough. that in it side, just it about fast How Got area this back material on expectations line be 'XX and of just cadence like Could trough we trough the that or with could in for and is 'XX sort follow it. think the And, to step trending EOD growth of a things out and your

Brad Williams

too teams been, the of we on based we'll we it a bottom. that couple point At pull there's a on all really as know, kind to the out have of is think determining they have working we're of go And XXXX projects kind kind yeah, into and difficult when go years becomes far they production, project R&D It's of I that when that. Bert, but drive kind difficult. been that near -- for that number is the trigger of as

So I a the to down demand pickup, or to XXXX that years. wouldn't pickup, depends be expect could trail just this by customer. on continue could 'XX But a be coming the for XXXX the

Bert Subin

of And been noted on you it. last first -- discussion footprint. went view? still that international view Got when is your that your you public, a wanted just side, you there's lot back one one, Is M&A quick to guys the double

Brad Williams

that's the Yeah, space categories, you then typically and our armor typically and gear. duty US they're for product They're we shares want other and product -- in look some high in lines. smaller when at

So, major those our the and for us, shares categories are lower outside US.

want to continue we those So, regions. assets to in find

profiles look the overall. XX quite away of we've assets as gotten stepped over selective. and and, the lot at few at us makeup companies, months and looks with the fit the We've also last margin liking various from various very to not we've Now we been months XX a just a

they're was overall. company definitely position marketplace. in of type that and that like, it price of the the in like you point name continue we are, We'll the there. radar cultivate that like, sure and we we've a out they're team was Like us fit the make well to felt holster operation as type got we good but its a those that to for position we we'd like culture So,

Operator

we And I'll back for Mr. gentlemen, this have closing you afternoon. any hand questions no appears things it comments. Williams. further to

Brad Williams

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

Operator

conclude Good you XXXX so for earnings today. all QX bye. conference Thank a will much joining great Thank you remainder Holdings that you. Ladies us call. wish Cadre all and and gentlemen,

Cadre (CDRE) 15 Mar 232022 Q4 Earnings call transcript