CDRE - Earnings call 3 2023 | Cadre Holdings, Inc.

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Operator

Good afternoon, and welcome to Cadre Holdings Third Quarter ended September 30, 2023 Conference Call. Today's call is being recorded. [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.

Matthew Berkowitz

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

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

Warren Kanders

margins model and EBITDA you and joining Officer, management Browers. Coming Cadre and demonstrated in and the joined thank driving has adjusted team achieving is Blaine XXXX, team's of XXXX. the off by the very am discuss Brad be third our quarter. implementation in focus of quarter for of for Financial these afternoon, Cadre's of proud adjusted results execution to results. I to the earnings second operating Brad, EBITDA today and President, the record consecutive for third quarter our our our Good Chief results Williams; call the of Blaine I continue

growth by operating quarter, processes creates rate. operating and using natural improvements profitability As I business this above execution our said superior last to produce tools leverage

for rolling the as into themselves. gaining continued speak Blaine portfolio, later, results the more detail but we do. Brad our entire we across go model momentum and here have out and We are will

XX%, adjusted For the grew We XX.X%, the per XXX%. of quarterly record $XX.X record gross third revenues diluted and XX.X% margins million, income EBITDA adjusted net increased were up profit increased EBITDA quarter quarter, while for share XX.X%. of fully achieved EBITDA adjusted

the quarter. We shareholders. Looking up able lenses at the are X.X%, as XX.X% underscores team gross results Revenues X-month a deliver XX.X%, of adjusted up have single outside profit been of a performance XX.X% and to margin how we for EBITDA year-to-date XX%. from up the our exceptionally proud EBITDA up to adjusted

macros to would moving the Before business. our comment on I M&A, again driving like to

environment the not have of Domestically, to geopolitical an We rise. level countries worse abated appreciable is most the if any the to seem at are conditions get the all. on degree, by danger-facing first of levels where conflict in day, internal and inside responders

the life-saving provide who keep the to work equipment role mission-critical, Our professionals safe. to us is world around to

We but for have that world, of going substantial are and the anywhere distribution demand products we sign our driving the and manufacturing part no secular trends up. capabilities to the cover see a

and experienced we As reacted our increasing business capacity grown, accordingly. requirements have has have

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most number larger our our role we through of previously, as mentioned offerings. these play products, have notably may there abate, events we for do Cadre to expect, eventually be various opportunity a through As an EOD a

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While work our that we due deal. and cannot have and be a in due believe confidentiality broadly, this more as continue targeted more we obligations, soon. More we is to the about is we a M&A speak are tuck-in business specific pipeline, underway, to hard type a for on traction. to we hope more category to Confirmatory get we priority starting diligence

very were They XXXX. predicting or of mid-XXXX worse. In only That south aware, last net the and happen, debt debt markets net Xx would conditions this in substantial company, generating credit EBITDA the not standing at quarter. than cash all while credit weak. are approach context in less improve of the have time the started we our second quarters with have free and, markets sheet, patient gotten did going you the in first remain bankers at to and balance As year, end to been M&A disciplined to deliver and our our of the adjusted fortify flow

to types, to anemic credit have founders, adjusting such have persisted valuations including to realities. weak financial a these an engage M&A As reflect for signs and not improving, are of and long market sell, in sellers and many decided sponsors of shown discussions time conditions different and

and letter actionable of to position us on more addition capitalize and opportunities intent themselves. these they sheet as balance current well, opportunities, we the have executed, we financial seeing performance present our In are

approach way commitments I for the conclusion, our Lastly, contact our we on over for this for which the indicated and months quarter we delivered the X have have our them the results constant of proud of they years. In to in are banks, am with first in year. our and support their given

earnings as into are on based and the remainder be guidance We performance to our for focus. of year to year the increase happy our able the again comes

As I businesses have are said resilient. before, our

with setting for things that, XXXX. With over we you. excited we for results, you us to I will Our thank think and call over today, are Brad, to this being the out how play Brad. and will how operating up model are with turn year is and showing

Brad Williams

today's Thank QX a by including call, business Blaine followed recent Q&A performance you, On I trends will overview, session. and provide update a and and financial Warren.

Before take expand continuing like Cadre's fulfill results, Save a moment I into about I'd quarter to success dive Warren's of to We operating "Together to and our comments on Lives". third our model mission

of the every We model our of are the advancing we as better operating excited progress pursuit day. idea in organization about engage the Cadre

partners in feel our our supporting our sense hearts end and purpose special not which Our extraordinary associates, and of team customers. members lives an extends to just channel the minds of mission, but

we wearing Safe the ago was to life-threatening which know, grown up products. you club has of what responders We're have saves about using or per set year. to many first call we X,XXX saves. situations This our survive As recognize XX that Club, years many averaging

you are keep we we equipment that continuing men minute, every approximately and come to what forward X and that live who with who women military safe. do law and about security their all home to think if look a day. families get equates and that protects professionals that to and or enforcement, to us of proud We're the friends So their lives provide best-in-class

now to X. our We'll on Turning begin third Slide quarter.

sequentially increased entrenched on the and in continued quarterly to gross law net margin year-over-year. responders quarter, military and income markets first enforcement, positions revenue, and Cadre's capitalize the we company During as

by in we premium the of strong third our we combined products have strategic safety managing the Our well survivability value outstanding relationships continued we as the the for our product results continued reflect demand mix model, market. Combined to execution team's customers, gains our significant quarter, in with with equipment. success driven portfolio productivity and and achieved the of mid-critical favorable QX margin operating We sustained expansion. strong have implementation continue with as

Third armor our highest gross was going EBITDA margins basis mix margin product mix quarter. increased reflected the QX adjusted quarter XXX in public, of since favorable and points. product by XX%

we Looking focused opportunities strong and September backlog, year. remain executing order start which of maintain was as XX, a funnel the we million that since We actively of our is on to $XXX.X $X.X in still believe healthy million the continue increase an M&A evaluate. ahead,

to model, to our Warren growth soon. Based while us $X.XX. enables mentioned, an of returning dividend recently attractive we and capital Slide acquire continue growth we quarterly opportunity On foreseeable Last consecutive LOI ninth of our cash to take more the have advantage generate opportunities able declared strong macro shareholders. [indiscernible] for that highlight free CapEx future. share on to new month, expect a be X, business, flow sustainable As low we Cadre we signed to to supporting tailwinds

to the these long-term. both safety We public believe and secular ideally and positioned to U.S. prioritize a over is see abroad broad the continue medium- and to capitalize on push Cadre tailwinds in

on in zoom our Turning X. and to moment impact trends to I'll their business. on a take market Slide current

spending and is any protective have signs easier, even determining continued officer. police upward continue to becoming recessions. but past drive prioritized matter hiring We healthy seen protection increased consistently trend industrial the no Cadre's budgets officer equipment economic per are is when departments not Police environment. needs, expenditures mission-critical have police that to during financial

Moving to the next bullet.

meet the to partners the businesses, customers landscape to current that of orders Ukraine consequences we for next geopolitical as that our terms expect to its that could moving said, demand core our engage globally there shifts in continue fit phase. movement With In and forward, model. products, creates we with be and our for word

the for discussions we've been rather having mix ground, Cadre could providing mine clear and Ukraine, of protective situation on will ordinance the lead on down which EOD the take suits. than of on vast cycle in decades EOD on active For equipment to focused side amount the the wear but about EOD example, anticipate to will Based of expands unexploded road. we opportunity tools opportunities the likely the it higher be

Turning in supply has chain labor been and environment stable The recent trends. to months.

year proactively to issues, continues chain do of behind mostly we addressing saw outstanding extended job Our supply team that last to times appear be us. lead an and

pleased be labor with continue meet attracting to on our needs. to We and our progress retaining

growth this launch side, new Strategic. been driven of very our consumer focus has On in by which the IncogX on holster, with space. example partnership launched One in the X% is we duty in gear that our sales Haley the saw successful we products

law In markets. to enforcement, holster is in allows our a innovation the commitment & Ammo's position Year. fact, premium core the our and differentiator key of us maintain first to Cadre's military Guns responder IncogX Holster and won

soft HyperX. I'll our directly tactical the call turn related to the first and of period Blaine now over compared Following the in of X to launched continue XD in HyperX last of app platform, feedback months, positive we've of all Expert from introduction Of a body and Tactical note, with SafariVault sizing to same increase year, XX% hear holsters last Browers. X line the armor experienced XXXX the of to growth quarters our Fit tied we Armor customers. CFO,

Blaine Browers

discussing expand environment. footprint. is Thanks, LOI by we confidentiality I'll signed market and those be Slide the transactions We very high summarizes cannot cash the and well with enable Warren's platform, geographic consistent will within can business this flows M&A Cadre's target we X We and about potential begin categories I our new will those to our us recurring and with key its more due leading remarks, criteria. within to Brad. profile grow our strong general that - But our that positions recent drive and businesses specific obligations. earlier share remarks will acquisition margins, M&A much our that X view those enter fits revenues. Per process. products, that key markets the that of suite our strategy criteria

M&A significantly be standards. to tightened Regarding as their financing broader have market lenders it lending tough a markets, continues

Bloomberg the environment from slides detail turns new be X.X year that is our fact, recently sellers ago, a closing. The this new X us next appears In have gap performance. deals quarter financial reported on multiple average between and LBO buyers down third shows the reflecting to

This sales, net Slide income, sequential on As net and margin, products. by in driven significant net and higher by products see and you hard for adjusted year-over-year partially goods. EBITDA quarter, mainly on The margin our decreased reflects demand orders increased armor orders for gross large crowd both was and was increase adjusted domestic can X, for control offset demand agency EBITDA the in sales a third basis. backlog we

per share, XXX% Third QX. quarter net compared $X.XX nearly income to last million, was or grew year's $XX.X

margin premium portfolio As the to products and management our of model positioning we significant during our achieved we quarter, of implement continue third expansion. operating

and For our adjusted XXX XX% our net going EBITDA highest gross of growth Slide adjusted public, Illustrated margin year-over-year. basis sales XX the quarter, consecutive is and on second year-over-year. was increased margins since EBITDA points

versus raised X-month and Cadre's for profit As the up management's remainder year, of adjusted and XX. guidance guidance driven our you last quarter the have EBITDA increased moment. On can of our guidance. in we structure range capital of sales performance XXXX EBITDA XX% the see, was margin, XX, year. Based on revenue XXXX increased improved a of our third the and outlook new present by net we discuss as year midpoint adjusted our full I'll gross midpoint our Slide September

Our the inorganically flexibility levels, was This $XX full reduction X.Xx. raising million, of do between both we net sales the through million. year $XXX We've further provided maintain XXXX $XXX updated grow midpoint. to XX. million XXXX gives leverage acquisitions. We of significant expect since and us on debt and These our a QX. Slide We end financial of XX% net organically range, guidance to sales net tightened be net

implies annual between range guidance forecast the X% of year. on EBITDA $XX at growth Our the initial million XX% our versus upwardly and $XX beginning million adjusted of revised EBITDA adjusted of

Additionally, XX.X%, guidance original implied our for rise adjusted the of in EBITDA has midpoints, adjusted full-year XX.X%. to the our margin significantly the expectations Based midpoint margins the on updated increased of success year-to-date EBITDA our whereas margins.

our quarter the revenue expect of While largest watermark for prior revenue. be that the QX high now will year, we QX in the was year,

to over One We QX, expect these and in volume ahead mix was the shipped I we for this also normal. like concluding reiterate sequentially. the Based to time changing along to international large expect be of expectation. to the EOD of be days expected the of mix orders XX most on our that have developments, do in backlog any down ship QX of margins turn only and sequentially lower with return time. I'll given comments. less to profitable to we it businesses, actually armor that, for to to products, at would XX visibility shifting we Brad to now

Brad Williams

our quarter and generated operating which summary, exceptional we margins and strategic Blaine. Once to implement on as and the continue X-month EBITDA record EBITDA focused with our in in financial are results. we execution Thank you, In reflected highly pleased is results. year-to-date, strong attaining third our adjusted quarterly sustaining again, we model

continues we We raise that outlook. M&A our a EBITDA criteria. and the XXXX revenue are midpoints to both adjusted intent and a a signed business meets full-year to letter pleased recently be key with of of focus, our

operator, remain we ahead. more increasing confident capitalize opportunities industry further will the of to attractive growth and on positioned we Cadre budgets in favorable additional tailwinds believe brands, these to dynamics, opportunities We Q&A. expect and ideally public safety macro safety lines related forward. With is months by premium to see platform up open that Backed of that, grow our for moving please leading the

Operator

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

Daniel Imbro

market Maybe one international side. on the

new East, Warren, was kind it into it yet. business I a comments you materialized to the think I encouraging your won think hear contract of there. guys signaled Middle hasn't wasn't really that

what's long to would going into So conflict be two, given materialize one, you before comment orders you evolving contract? products? international won safety guys' globally, you on it what then, you And that market expect can some the for on how

Brad Williams

the referenced part, planned control contract can on the large you can in first I that QX, jump in. the was that's I actually a and originally international [indiscernible] order Warren, the in in products. North QX America U.S. outside take When

been said, point. demining some material EOD. that really, for had the orders have will of consistent, And be it in for to think not as I we Ukraine, world it's but We this side

of That the be So protective the a sense, won't makes EOD that which in it less It will in be suits. suit. demining, is really version Daniel?

Daniel Imbro

and maybe [ XQ from quantify contract Blaine all, at pulled XQ you that could ]? And that was

Blaine Browers

of it was significant disclose We business. the the you to sensitivity, but can't

that feel as look think it. through of kind give you in at of go the scale the and consensus, change you will and I a for size

Daniel Imbro

of cash taking then EBITDA. And call bucks the Warren, for continues build million maybe a on pending here, but this step even it few balance to sheet a deal, back let's

have ton cash, view Is forward? excess in multiple. do the shareholders that best how Are strategic or still dividend? do capital there the foresee assuming projects that. You What you to guys deploying CapEx that of of pull have cash? deals? you don't a Just of special a absence a it should You uses normal could as back you

Warren Kanders

news we we of we're good absence the as an I a speak. working have don't is mean, Well, number deals. on

In withdrawn. one fact, we spoke, had away, think thought I time been we had gone deals that had the talked we about last on we bid that

is those of One back.

as capital the said overall multiples environment. is cost So quite before, the the now And full. are our the of reflective right now and guys of pipeline

excited. we be So couldn't more

requirements that cash has have similar So we in company is low our that our know of and to The last XX%. on, margins couple buying, of margins. transactions. to CapEx, we our objective trying [ from reinvest are think existing one you I to that businesses, LOI of lot EBITDA and we're an we've is ] done, also transactions the has And excess target in

Daniel Imbro

And one Brad. me, last for then

productivity Other one-time on gains on as continue savings timing are margin. productivity more you turn than unlocking anything that business just self-help you XQ more over mentioned that the Or and the You and contract, the scale maybe to some of stones leverage? side? the in

Brad Williams

of significant than basis, Daniel, doing were of at little better is better nothing year-over-year things that Just We on good I but [indiscernible] use we gauge just that than of this This really improving not mean, a a No, look as day each last mantra as sequentially, productivity. we quarter look kind [indiscernible] right? we there's one-time, quarter. a

be some continue sequentially. certainly a basis We've gains seen year-on-year on team the on. build will this to we very from strong So and something

the adoption really to just the across when really model and really all the pleased it forward. everyone's pushing operating the management So businesses of progress globe we're daily with comes

Operator

Co. with & from Riley Jeff Van comes of Sinderen the Your next B. line question

Jeff Van Sinderen

So just go would remind (sic) of versus you to it, ] us productive the demining of the the EOD. the you Can [ call guess, point the suit, back wanted just less protective there price I to full version suit? dollar

Blaine Browers

When about, a be This would upwards a as company there's as Tac-X actually suit. can we the level or talked Jeff, suit, of a of between, and right, think a a refer there. Yes. tactical right, about to bomb suit. full $XX,XXX right around you're or you It suit, de-mining what vary,

protection. that there, below As $X,XXX. globe. you generally certainly one the of the restrictions of move north depending The the level talking down you're really a we've but on around but difference on armor variation vary sub-$X,XXX Tac-X to talked and about is there's you're It's about though, kind demining, the that above one, limited the can XX,XXX right, across operators even suits of body EOD market, market. with is fairly And

So there's there, sell choice we'll just to operators. continue and continue those, those to a right, and proven, be limited the we number for [indiscernible]

you is move same have demining, you of different what you As of higher you different volume the and of demining do is the with That's though, though, much have to level training protection. don't right? levels game. down, EOD, a the allows addressing The level threat, you're

worked there here's products again. are that, making really the very embassies right, ensure in country globe to of that safe the men across available are teams the diligently different time have suite Ukraine the we the the of is So ensure working hey, with we women out protect when and with that and partners and kind to

Warren Kanders

in will kind that when will because Again, the And to well. Gaza, of timing that cease, be be and go work. in hostilities as you same the can't work do that need done of right,

Jeff Van Sinderen

have in Middle going inquiries question, was what's next around Right. happening had any be just That was yet you the to East? my

Warren Kanders

we of bombs increase. stuff Iron Israel the drop. we're kind now that's we a what But lot So, Dome is there that get customer, and the can. obviously, munitions to and I a big of over going related right mean, doing is just

Jeff Van Sinderen

I kind are then that. update I blast Just of could, And guess, we quick if sensor on with anything, any wondering where just, just follow-up, a the product? just

Blaine Browers

are Jeff, talking sensors? you about blast

Jeff Van Sinderen

yes, the Yes, sensor.

Blaine Browers

sure. want I to make just

is now blast we're sensor of being we're on the the as of first the we'll on receive What So status same told feedback quarter when still right of phase is that side current quarter. next the the year things, that project previous in.

we're in in terms wait-and-see So good news. we any changes no with so as forward is still requirements in go far, that But of news project. phase that

Operator

line next the And Sheila the of Kahyaoglu Jefferies. comes question from with

Unknown Analyst

on another quickly, quarter here margins. gross for wanted margins This of is Sheila. [ Sam EBITDA to just ask I Gatzes strong and ]

Continued performance strong. sequential is

help pieces You us mentioned EOD few QX? down moving continue normalize these points to a EBITDA sequentially steps frame guide in here into should QX. and of some the mix just armor implied within Can other that you

Blaine Browers

from robots, That's EOD a product away guidance. some obviously, bit just be this volume really the X we and biggest quarter. about suits that orders with as We That's top mix. are in lower more The on know will as have leverage, that tools in we X the in the side, armor moving normalization. today And be the do experienced that have larger other to such would we lower with we that then pieces volume that different do of margin of really QX, QX line. some little on along EOD implied visibility in in margin of think profile more drivers, products, that a armor really which and lines, our lower are

Unknown Analyst

And that out timing drivers there growth more volume QX? mentioned the the order, or us guess, of is maybe strong line, of And year-over-year you XX% bucket of of against backlog door international like got on little kind growth forward up a just QX. seasonally to bit Can and you I X% more sort just top step and or the price, within typically help but its here that? back sequentially pulled soft sort in large a talk anything just

Blaine Browers

there's there. volume. component price, a sequentially but Yes, mean really price not I is some it's significant

that think really there. Other that the think particular, in -- it of that team, up order quarter. that, business, than some mentioned I Armor no has of you There's nothing numbers. international has drivers, large very the about as that's are international significantly. The large significant think those about there's than picks in had significant other there's kind I the side. well, craft kind of that kind sticks out. But those deliver which is to When a that those products And soft order, year, nothing for tactical you really school the really are number by incident as which last that drivers some where to certainly HyperX, shields. really driven size implied is hard going mentioned place, about continued Uvalde QX implied be impacted really armor Brad and really of volume, certainly guidance significant at change And certainly in look we can't of kind but again, the of change. talk it's kind the you order, when QX, the the and control

Operator

MKM. the question ROTH next Our from with Matt of line comes Koranda

Matt Koranda

swing swing covered You top of implied the for factors the get quarter, a the guess guide. understanding to maybe wanted on guide fourth I margin fourth but quarter, I the better the the for line in

there that or of swinging You out the that orders end And large range. pushed high have we end could the be kind or about the about just just on thinking are of a that get talk in pulled in low Maybe factors $XX million factor to any guidance there? then range. should

Blaine Browers

when hit holidays. push The get And implied that range, Yes. end in the of really year, when the critical time we Matt. you pull the and of kind is to certainly, gets

tends that, anything decision international, point kind to to think of have gets when of So maybe some kind risk in certainly, earlier you it. pushed than mid-December, or into out even that

a get of cautious of think, we in the make business on get confident or armor those I orders. visibility, that here we there's larger of thinking be orders range where tends the be to end kind And armor, to a and but little tends EOD Certainly That and shorter as today, is have visibility, that the break. that the significant whereas the year, always visibility. guide, right? couple sit really So going and really to we the to that feel kind on [indiscernible] really about kind of we have duty

customer and waiting order delivery orders the you the about have the by think those in right? to you duty We typically side, dates, about coming that's it's armor on when already firm maybe be here, could prior in, a or when the So EOD driven move changes place, are we're full payment. move into Those prepayment it kind X as shipment, that of we the impact driven QX. where on components what or range really payments a the by there

Brad Williams

when any Blaine factored I range potential for we those that overall kind of overall, that But was say, would built referencing. revised situations just Matt, in of we've

Blaine Browers

So we Matt. a of don't We kind that think That's would too, about about push think That that a losing. loss. be as just not

Matt Koranda

you then existing I just it, mean too say business. that want just on it's to it there. an acquisition, where might know don't just you The to probably on the headed could And the but be that much existing of you products? flavor be curious. Or similar language that used was maybe Does any for sort

Warren Kanders

there. We're to not go going

we're by comfortable we speak with this us so to Obviously, you'll diligence very excited we can strong And know through we all go it's the when the people. working very and business. that the think, and it agree a a one. deal. encouraged it's contracts on. businesses very And acquire about say the to I go We need things through through opportunity. Just specifically, about But that we're the

Operator

question And comes from of the next Epstein Ron with America. Bank

Ronald Epstein

A lot's the can let see if bit. been a little open I me asked, but aperture

playing a potential could currently we do, and play technically-oriented how electronics, kind about you're you currently? So deals that like When thing. definition, think M&A, So other aren't are tech where that Warren, you maybe thinking more about there broad of is are think about don't adjacencies in, you right? security when that you verticals verticals

Warren Kanders

team model all an know, management and the you have extraordinary they and as background. So by an led Brad we Blaine, operating have

last opportunities the operating And for to are seeing so models, those from of we're now. whatever will over seeing our business where have you own benefit need here which look all we number we and been developing right -- years benefit at, the that the of

types could Today, at So be electronics, some involve a the in for benefit areas in the think those safety in transaction Brad on margins of we and have. And that again, And that. that right have personal from we on. businesses. experience earlier, that But previously do. talked would has that that's to everything want would we businesses can top adjacencies those about looking we operating also in-house are the we spoke of we things, particular had industrial I we experience and capabilities of about that on and so discipline in looking that types we those model

are CapEx not at lot there only available more of opportunities today seems looking and been. have required are we there margins a businesses. But where in where the be of to those than to there's grow and EBITDA So maintain excess XX%

think Ron, your a companies going and about internal what talking have, see, what to be some companies that more don't this we're from mix you there's divesting certain [indiscernible] these probably to you things of I thinking of going to larger cover, what in. fit know and is they lot the

there problem. us. Also, there even And read, firms. are interest equity, lot new difficult with as so today largest ripe of to it's firms for be funds it's And you higher private that out are raised and a for rates, the that's a pretty probably for have very orphans,

with reevaluate of And equity do what keep that is they they private to it, have, long how so a assets. to can forcing firms need what lot they those

we're encouraged now could do, as our balance be right So what we who sheet. are, we as we about

the day, that. also as focused sheet, just the operating very balance very we're not about Blaine's think And on aspects As of but well. our business, you on careful know, every

as ] we are the would And we're forward [ disciplines things. looking so take these to us with new buy that

Operator

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

Mark Smith

new of those call, are calendar in those kind of Sorry products, how a lot saw if 'XX? this especially discuss the in can introduced you missed kind I early of that earlier we performing, but

Brad Williams

Brad. Mark, this is

notably, that new holster, Safarivault Expert So earlier, little of of I seen product & holsters Year. about some HyperX the we're IncogX what made. launched. I we know of talked you've and Holster the most a Ammo whole body wise, we've a sizing, host won we've And then Guns consumer have line, progress Fit bit those our of XD just And really the proud product

in a things. a consumer side side new overall the from When has doing we're And the growth of the things, product for increase our of what then consumer reported you for about gear perspective. remarks, HyperX at XX-plus duty percent we, us. proud on really really, look we're on side X% the So HyperX showed on growth

our So our we around engineers, lives would love frankly, with fun to with continue to points spending a lot and their more uphold saving quite customers improve lives. and, of continue better time and World can be and quite we frankly, with things place engineers. make understanding and a where mission pain and just having better team's innovation

proud So results I'm seeing. really we're the of

Mark Smith

even consumer side events East, for business bring the consumer the We've Middle like of you the higher those business? side of Any us up some looked You in give in can those the of insights Any demand domestically October October, trends maybe following kind doing in on well. commentary? products. seen of the what

Blaine Browers

Yes.

now. framework seen we've October is our think all I of year think the kind is consistent with I which expectations,

probably expect Brad that's are in what you'd that, and success. the these expectations products a Our by market, different as new had great driven mentioned, really bit little than

able the and look QX, statistics, of when those we're in down, markets, think, of as with products, kind of early stays new you I grow yes, the markets and certainly part just to of expand our to consumer share we're whereas well. flattish at what kind to kind seeing continue So those maybe

Operator

no And over you. questions this time. further there call to the will Brad Williams, I back are at turn

Brad Williams

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

Operator

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

Cadre (CDRE) 8 Nov 232023 Q3 Earnings call transcript