Cadre Holdings, Inc.

Good morning and welcome to Cadre Holdings fourth quarter of 2024 conference call. Today's call is being recorded. All lines have been placed on mute. If you would like to ask a question at the end of the prepared remarks, please press the star keys and the number one on your touchtone phone. 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 Harbour Statement. Please go ahead, sir.

Thank you, and welcome to today's conference call to discuss CADRE's fourth quarter and full year results. Before we begin, I'd like to remind everyone that during today's call, we'll be making several forward-looking statements, and we make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to the risks and uncertainties that face CADRE and the industries and markets in which we operate. More information on potential factors that could affect CADRE's financial results is included from time to time in CADRE's public reports filed with the Securities and Exchange Commission. Please also note that we have posted presentation materials on our website at www.cadre-holdings.com, which supplement our comments this morning and include a reconciliation of certain non-GAAP financial measures. I'd like to remind everyone that this call will be available for replay through March 26, 2025. A webcast replay will also be available via the link provided in yesterday's press release, as well as on CADRE's website. At this time, I would like to turn the call over to CADRE's Chairman and CEO, Warren Kanders.

Good morning, and thank you for joining CADRE's fourth quarter earnings call. I am joined today by our President, Brad Williams, and Chief Financial Officer, Blaine Browers. We are pleased to have reported strong fourth quarter and full year results, reflective of CADRE's outstanding strategic execution and positive demand trends across our law enforcement, first responder, military, and nuclear markets. Results were in line with our full year 2024 guidance, driven by an exceptional fourth quarter during which CADRE achieved record quarterly revenue, gross margin, adjusted EBITDA, and adjusted EBITDA margin. Full-year revenue grew 18% and adjusted EBITDA grew 22%, resulting in year-over-year adjusted EBITDA margin improvement of 70 basis points. The effectiveness of our operating model and resilience of our businesses were again evident in these strong financials. Since our IPO, CADRE has had great success executing against our strategic plan and delivering on our commitment to building value for customers and shareholders alike. Mergers and acquisitions has been a key tenet of this strategy, and I am particularly happy about the recent progress we have made on our M&A program to begin the year. In January, we announced an agreement to acquire the engineering division from Kars Group, which includes multiple best-in-class brands at the forefront of nuclear safety. Assistant with our track record of building value, we view this acquisition as a critical next step in scaling the nuclear safety vertical we established in early 2024. We continue to believe in the consistent growth profile of the nuclear sector, underpinned by complex and evolving industry needs and macro tailwinds that have only grown stronger. Importantly, the acquisition expands our international footprint and grows our addressable market with entry into new nuclear areas like automation, robotics, and nuclear medicine. The brands we have agreed to acquire are complementary to our existing nuclear business and support mission-critical initiatives with Blue Chip customers in more than 20 countries. We believe this acquisition will enable additional M&A in the nuclear sector, and we maintain a robust pipeline of targets. Overall, we see opportunities across our current verticals, including in law enforcement and military markets, and remain committed to evaluating transactions in line with our highly selected key criteria. As always, we will be patient and disciplined. In the context of our M&A program, I would also like to highlight CADRAC's significant financial flexibility, supported by a strong balance sheet. In the fourth quarter, we closed on new financing, that provides the company upsize 590 million credit facilities with favorable terms and extended maturities, enhancing our ability to capitalize on meaningful organic and inorganic growth opportunities ahead. Additionally, with our continued strong free cash flow generation, we have capacity to make growing dividend payments while also supporting our M&A objectives. In January, we increased our quarterly dividend reflecting our confidence in our business's fundamentals and a continued commitment to delivering value for shareholders. While our businesses have historically been very resilient across economic, political, geopolitical, and other cycles, Brad and Blaine will discuss later on the call a number of macro factors we are watching for in 2025 that could affect performance. Longer term, we see our overarching thesis holding true that priorities will continue to shift towards public safety spending and ensuring those who protect and service are equipped with the safest and most reliable products. Notwithstanding the uncertainty in 2025, we believe CADRE is well positioned to continue to grow our platform and further enhance our market leadership over the long term, supported by our strong balance sheet, robust acquisition pipeline, and operating model. With that, Thank you for being with us today, and I will turn the call over to Brad. Brad, over to you.