Cadre Holdings Inc (CDRE) 2023 Q3 法說會逐字稿

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.

下午好，歡迎參加截至 2023 年 9 月 30 日的幹部控股第三季電話會議。今天的通話正在錄音。 （操作員指示）此時，我想將會議轉交給IGB 集團的Matt Berkowitz 進行介紹並宣讀安全港聲明。請繼續，先生。

Thank you, and welcome to Cadre Holdings Third Quarter Conference Call. Before we begin, I would like to remind everyone that, during today's call, we will 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 in 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 evening and include a reconciliation of certain non-GAAP financial measures.

謝謝，歡迎參加幹部控股第三季電話會議。在開始之前，我想提醒大家，在今天的電話會議中，我們將做出一些前瞻性聲明，我們是根據1995 年《私人證券訴訟改革法案》的安全港條款做出這些聲明的。這些前瞻性聲明陳述反映了我們基於對當今已知資訊的理解的最佳估計和假設。這些前瞻性陳述受到 Cadre 在我們經營所在的產業和市場中面臨的風險和不確定性的影響。有關可能影響 Cadre 財務業績的潛在因素的更多信息，不時包含在 Cadre 向美國證券交易委員會提交的公開報告中。另請注意，我們已在我們的網站 www.cadre-holdings.com 上發布了演示材料，這些材料補充了我們今晚的評論，並包括對某些非公認會計原則財務指標的調節。

I would like to remind everyone that this call will be available for replay through November 22, 2023, starting at 8 p.m. Eastern Time tonight. A webcast replay will also be available via the link provided in today'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.

我想提醒大家，本次電話會議將於 2023 年 11 月 22 日晚上 8 點開始重播。東部時間今晚。也可以透過今天新聞稿中以及幹部網站上提供的連結進行網路廣播重播。現在，我想將電話轉給 Cadre 董事長兼執行長 Warren Kanders。

Good afternoon, and thank you for joining Cadre's earnings call to discuss our results for the third quarter of 2023. I am joined today by our President, Brad Williams; and our Chief Financial Officer, Blaine Browers.

下午好，感謝您參加 Cadre 的財報電話會議，討論我們 2023 年第三季的業績。今天我們的總裁 Brad Williams 也加入了我的行列；以及我們的財務長 Blaine Browers。

Coming off of the third quarter of 2023, I continue to be very proud of the focus and execution our management team has demonstrated in achieving record results in adjusted EBITDA and adjusted EBITDA margins for the second consecutive quarter. Brad, Blaine and the team's implementation of the Cadre operating model is driving these results. As I said last quarter, this execution creates operating leverage by using superior operating tools and business processes to produce profitability improvements above our natural growth rate. We have continued rolling the model out across our entire portfolio, and we are gaining momentum as we do.

2023 年第三季結束後，我仍然對我們的管理團隊所表現出的專注和執行力感到非常自豪，他們連續第二個季度在調整後EBITDA 和調整後EBITDA 利潤率方面取得了創紀錄的成績。 Brad、Blaine 和團隊對 Cadre 營運模式的實施正在推動這些成果的實現。正如我上季度所說，這種執行透過使用卓越的營運工具和業務流程來創造營運槓桿，使獲利能力提高到高於我們的自然成長率。我們繼續在整個產品組合中推廣該模型，並且我們正在獲得動力。

Brad and Blaine will go into more detail later, but the results here speak for themselves. For the third quarter, while revenues were up 12.1%, gross profit increased 22.7%. We achieved record adjusted EBITDA margins of 19%, record quarterly adjusted EBITDA of $23.7 million, adjusted EBITDA grew 14.4% and fully diluted net income per share for the quarter increased 123%.

Brad 和 Blaine 稍後將詳細介紹，但這裡的結果不言自明。第三季度，營收成長 12.1%，毛利成長 22.7%。我們實現了創紀錄的調整後 EBITDA 利潤率 19%，創紀錄的季度調整後 EBITDA 2,370 萬美元，調整後 EBITDA 增長 14.4%，本季完全稀釋每股淨利潤增長 123%。

Looking at the 9-month year-to-date results underscores the performance outside the lenses of a single quarter. Revenues up 7.1%, gross profit up 18.7%, adjusted EBITDA up 22.1% and adjusted EBITDA margin up to 18.2% from 16%. We as a team are exceptionally proud of how we have been able to deliver for our shareholders. Before moving to M&A, I would like to comment again on the macros driving our business. We are in an environment where geopolitical conditions seem to get worse by the day, and the level of internal conflict inside most countries is on the rise. Domestically, the levels of danger-facing first responders have not abated to any appreciable degree, if at all.

回顧今年迄今的 9 個月業績，我們可以看到單季業績之外的表現。營收成長 7.1%，毛利成長 18.7%，調整後 EBITDA 成長 22.1%，調整後 EBITDA 利潤率從 16% 上升至 18.2%。作為一個團隊，我們為我們能夠為股東做出的貢獻感到非常自豪。在轉向併購之前，我想再次評論一下推動我們業務的宏觀因素。我們正處於地緣政治局勢似乎日益惡化的環境中，大多數國家內部衝突的程度正在加劇。在國內，面臨危險的急救人員的水平並沒有明顯降低（如果有的話）。

Our role is to provide mission-critical, life-saving equipment to the professionals around the world who work to keep us safe. We have the distribution and manufacturing capabilities to cover a substantial part of the world, and we see no sign that the secular trends driving demand for our products are going anywhere but up.

我們的職責是為世界各地致力於保障我們安全的專業人員提供關鍵任務、救生設備。我們擁有覆蓋世界大部分地區的分銷和製造能力，而且我們沒有看到任何跡象表明推動我們產品需求的長期趨勢只會上升。

As our business has grown, we have experienced increasing capacity requirements and have reacted accordingly. Our ability to do this is a testament to our management team and our many dedicated employees, suppliers, distribution partners and other stakeholders. It also speaks to the quality of our products, the strength of our brands, superior execution and deliveries and the trust our customers and end users place in Cadre's equipment.

隨著我們業務的成長，我們的產能需求不斷增加，並做出了相應的反應。我們做到這一點的能力證明了我們的管理團隊以及眾多敬業的員工、供應商、分銷合作夥伴和其他利害關係人。它還證明了我們的產品品質、品牌實力、卓越的執行和交付以及我們的客戶和最終用戶對 Cadre 設備的信任。

Having said that, to be clear, the ongoing conflicts in Ukraine and the Middle East have not impacted our businesses in any material way. As we have mentioned previously, we do expect, as these events eventually abate, there may be an opportunity for Cadre to play a larger role through a number of our products, most notably through our various EOD offerings.

話雖如此，需要明確的是，烏克蘭和中東持續的衝突並未對我們的業務產生任何實質影響。正如我們之前提到的，我們確實預計，隨著這些事件最終減弱，Cadre 可能有機會透過我們的許多產品發揮更大的作用，尤其是透過我們的各種 EOD 產品。

Lastly, an update on our M&A program. I am pleased to report that we signed a letter of intent approximately 3 weeks ago with a business that we have been in discussions with for a number of months. The business in its most recent fiscal year ended during the summer achieved approximately $19 million of revenues, with gross margins in excess of 50% and EBITDA margins in excess of 25%. While we cannot be more specific due to confidentiality obligations, the business is in a category that we have targeted as a priority for a tuck-in type deal. Confirmatory due diligence is underway, and we hope to speak more about this soon.

最後，我們的併購計劃的最新情況。我很高興地報告，大約三週前，我們與一家企業簽署了一份意向書，我們已經與該企業進行了數月的討論。該業務在夏季結束的最近一個財年實現了約 1,900 萬美元的收入，毛利率超過 50%，EBITDA 利潤率超過 25%。雖然由於保密義務，我們無法提供更具體的信息，但該業務屬於我們優先進行的交易類別。確認性盡職調查正在進行中，我們希望盡快對此進行更多討論。

More broadly, we continue to work hard on our M&A pipeline, and we believe we are starting to get more traction. As you are all aware, the credit markets remain very weak. They started going south in mid-2022 and, this time last year, bankers were predicting conditions would improve in the first or second quarters of 2023. That did not happen, and the credit markets have only gotten worse.

更廣泛地說，我們繼續努力開發我們的併購管道，我們相信我們開始獲得更多關注。眾所周知，信貸市場仍然非常疲軟。它們在 2022 年中期開始走下坡路，去年這個時候，銀行家預測情況將在 2023 年第一季或第二季有所改善。但這並沒有發生，信貸市場只會變得更糟。

In the context of our company, we have been patient and disciplined in our approach to M&A while generating substantial free cash flow to deliver and fortify our balance sheet, with net debt standing at less than 1x net debt to adjusted EBITDA at the end of the quarter. As weak credit conditions and an anemic M&A market have persisted for such a long time and not shown signs of improving, sellers of many different types, including financial sponsors and founders, have decided to engage in discussions to sell, and valuations are adjusting to reflect these realities.

In the context of our company, we have been patient and disciplined in our approach to M&A while generating substantial free cash flow to deliver and fortify our balance sheet, with net debt standing at less than 1x net debt to adjusted EBITDA at the end of the四分之一.由於信貸狀況疲軟和併購市場疲軟持續了很長時間，而且沒有出現改善的跡象，包括金融贊助商和創始人在內的許多不同類型的賣家已決定參與出售討論，估值也在調整以反映這些現實。

In addition to the current letter of intent we have executed, we are seeing more actionable opportunities, and our balance sheet and financial performance position us well, capitalize on these opportunities as they present themselves. Lastly, we are in constant contact with our banks, and they have indicated their support for our approach given the way in which we have delivered on our commitments to them over the years.

除了我們目前已執行的意向書之外，我們還看到了更多可採取行動的機會，我們的資產負債表和財務表現使我們處於有利地位，可以充分利用這些機會。最後，我們與銀行保持持續的聯繫，考慮到我們多年來兌現對銀行的承諾，他們表示支持我們的做法。

In conclusion, I am proud of our results for this quarter and for the first 9 months of the year. We are happy to be able to increase our earnings guidance for the year again based on our performance and as the remainder of the year comes into focus. As I have said before, our businesses are resilient. Our operating model is showing results, and we are excited with how we think this year will play out and how things are setting up for 2024.

總之，我對本季和今年前 9 個月的業績感到自豪。我們很高興能夠根據我們的業績以及今年剩餘時間的情況再次提高我們今年的盈利指引。正如我之前所說，我們的業務具有彈性。我們的營運模式正在取得成果，我們對今年的發展以及 2024 年的情況感到興奮。

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

感謝您今天與我們在一起，我會將電話轉給布拉德。布拉德，交給你了。

Thank you, Warren. On today's call, Blaine and I will provide a Q3 update and business overview, including recent trends and financial performance followed by a Q&A session. Before I dive into our third quarter results, I'd like to take a moment to expand on Warren's comments about our operating model and success continuing to fulfill Cadre's mission of "Together We Save Lives". We are excited about our progress advancing the Cadre operating model as we engage the organization in pursuit of the idea of better every day. Our team members feel an extraordinary sense of purpose supporting our special mission, which lives not just in the hearts and minds of our associates, but extends to our channel partners and end customers.

謝謝你，沃倫。在今天的電話會議上，布萊恩和我將提供第三季度的最新情況和業務概述，包括最近的趨勢和財務業績，然後進行問答環節。在深入探討第三季業績之前，我想花點時間詳細闡述沃倫對我們的營運模式以及繼續履行幹部「共同拯救生命」使命的成功的評論。我們對在推動 Cadre 營運模式方面取得的進展感到興奮，因為我們與組織一起追求「每天都變得更好」的理念。我們的團隊成員感受到一種非凡的使命感，支持我們的特殊使命，這種使命感不僅存在於員工的心中，也延伸到我們的通路夥伴和最終客戶。

As many of you know, we have what we call the Safe Club, which was set up many years ago to recognize first responders that survive life-threatening situations using or wearing our products. This club has grown to 2,177 saves. We're averaging about 34 saves per year. So if you think about that a minute, that equates to approximately 3 men or women that get to come home and live their lives with their families and friends every day. We're proud of who we are and what we do and look forward to continuing to provide best-in-class equipment that protects the law enforcement, military and security professionals who keep us all safe.

正如你們許多人所知，我們有一個所謂的“安全俱樂部”，該俱樂部是多年前設立的，旨在表彰使用或佩戴我們的產品在危及生命的情況下倖存下來的急救人員。該俱樂部的救援次數已增至 2,177 次。我們平均每年保存約 34 次。因此，如果您想一想，這相當於大約 3 個男人或女人每天回家與家人和朋友一起生活。我們為我們的身份和所做的事情感到自豪，並期待繼續提供一流的設備，保護執法、軍事和安全專業人員，確保我們所有人的安全。

Turning now to our third quarter. We'll begin on Slide 5. During the quarter, we continued to capitalize on Cadre's entrenched positions in law enforcement, first responders and military markets as the company increased quarterly revenue, net income and gross margin sequentially and year-over-year. Our outstanding results reflect the team's continued strategic execution combined with strong sustained demand for our mid-critical safety and survivability equipment. We value the strong relationships we have with customers, and we continue to have success in the third quarter, managing our portfolio of premium products in the market.

現在轉向我們的第三季。我們將從幻燈片 5 開始。在本季度，我們繼續利用 Cadre 在執法、急救人員和軍事市場中的牢固地位，因為該公司季度收入、淨利潤和毛利率連續和同比增長。我們出色的業績反映了團隊持續的策略執行力以及對我們中關鍵安全和生存設備的強勁持續需求。我們重視與客戶之間的牢固關係，並且在第三季度繼續取得成功，管理我們在市場上的優質產品組合。

Combined with favorable Q3 product mix as well as productivity gains driven by the continued implementation of our operating model, we achieved significant margin expansion. Third quarter adjusted EBITDA margin of 19% was our highest since going public, and gross margins increased by 370 basis points. Q3 product mix reflected favorable armor product mix in the quarter.

結合有利的第三季產品組合以及持續實施營運模式所推動的生產力提高，我們實現了利潤率的大幅成長。第三季調整後 EBITDA 利潤率為 19%，是我們上市以來的最高水平，毛利率增加了 370 個基點。第三季的產品組合反映了該季度有利的裝甲產品組合。

Looking ahead, we maintain a strong order backlog, which was $126.2 million as of September 30, an $8.3 million increase since the start of the year. We remain focused on executing M&A and believe our funnel is still healthy in opportunities that we continue to actively evaluate. As Warren mentioned, we have recently signed an LOI to acquire new business, and expect to be able to share more soon.

展望未來，我們保持強勁的積壓訂單，截至 9 月 30 日，積壓訂單為 1.262 億美元，比年初增加了 830 萬美元。我們仍然專注於執行併購，並相信我們的管道仍然健康，我們將繼續積極評估機會。正如沃倫所提到的，我們最近簽署了收購新業務的意向書，並希望能夠盡快分享更多。

Based on our low CapEx model, we continue to generate strong free cash flow that enables us to take advantage of attractive growth opportunities while returning capital to shareholders. Last month, we declared our ninth consecutive quarterly dividend of $0.08. On Slide 6, we highlight the macro tailwinds supporting a sustainable growth opportunity for Cadre (inaudible) foreseeable future. We continue to see a broad push to prioritize public safety in both the U.S. and abroad and believe Cadre is ideally positioned to capitalize on these secular tailwinds over the medium- and long-term.

基於我們的低資本支出模型，我們繼續產生強勁的自由現金流，使我們能夠利用有吸引力的成長機會，同時向股東返還資本。上個月，我們連續第九次宣布派發 0.08 美元的季度股息。在投影片 6 中，我們強調了支持 Cadre（聽不清楚）可預見未來永續成長機會的宏觀利好因素。我們繼續看到美國和海外優先考慮公共安全的廣泛推動，並相信幹部處於中長期利用這些長期順風的理想位置。

Turning to Slide 7. I'll take a moment to zoom in on current market trends and their impact on our business. We have not seen any signs that police hiring is becoming easier, but healthy police budgets continue to drive increased spending per officer. Cadre's mission-critical protective equipment is consistently prioritized when departments are determining officer needs, no matter the economic environment. Police protection expenditures have continued to trend upward even during past financial and industrial recessions.

轉向幻燈片 7。我將花點時間重點介紹當前的市場趨勢及其對我們業務的影響。我們沒有看到任何跡象表明警察招聘變得更加容易，但健康的警察預算繼續推動每位警察的支出增加。無論經濟環境如何，當各部門確定軍官需求時，幹部的關鍵任務防護裝備始終是優先考慮的事項。即使在過去的金融和工業衰退期間，警察保護支出也持續呈現上升趨勢。

Moving to the next bullet. In terms of the current geopolitical landscape and consequences for our core businesses, we continue to engage with partners and customers globally to meet orders that fit our model. With that said, we expect there could be movement that creates demand for our products, moving forward, as the word in Ukraine shifts to its next phase. For example, we anticipate active discussions we've been having about providing EOD tools and equipment could lead to opportunities down the road. Based on the situation on the ground, it will take decades to clear the vast amount of unexploded ordinance in Ukraine, which expands the cycle of opportunity on the EOD side for Cadre but likely will be focused on higher mix of the mine protective wear rather than EOD suits.

轉到下一個項目符號。就當前的地緣政治格局及其對我們核心業務的影響而言，我們將繼續與全球合作夥伴和客戶合作，以滿足適合我們模式的訂單。話雖如此，隨著烏克蘭的言論進入下一階段，我們預計可能會出現一些變化，從而創造對我們產品的需求，並向前邁進。例如，我們預計我們一直在進行的有關提供排爆工具和設備的積極討論可能會帶來未來的機會。根據實地情況，烏克蘭需要數十年時間才能清除大量未爆炸彈藥，這擴大了幹部在排爆方面的機會週期，但可能會集中於更高程度的地雷防護服而不是防雷服。排爆服。

Turning to supply chain and labor trends. The environment has been stable in recent months. Our team continues to do an outstanding job of proactively addressing supply chain issues, and extended lead times that we saw last year appear to be mostly behind us. We continue to be pleased with our progress on attracting and retaining labor to meet our needs.

轉向供應鏈和勞動力趨勢。近幾個月來，環境保持穩定。我們的團隊在主動解決供應鏈問題方面繼續表現出色，去年我們看到的交貨時間延長的情況似乎已經過去了。我們對在吸引和留住勞動力以滿足我們的需求方面取得的進展仍然感到滿意。

On the consumer side, we saw 5% growth in our duty gear sales driven by our focus on new products in this space. One example that has been very successful is the launch of the IncogX holster, which we launched in partnership with Haley Strategic. In fact, the IncogX holster won Guns & Ammo's Holster of the Year. Cadre's commitment to innovation is a key differentiator and allows us to maintain our premium position in our core law enforcement, first responder and military markets.

在消費者方面，由於我們專注於該領域的新產品，我們的執勤裝備銷售額成長了 5%。一個非常成功的例子是我們與 Haley Strategy 合作推出的 IncogX 皮套。事實上，IncogX 皮套榮獲《Guns & Ammo》年度皮套獎。 Cadre 對創新的承諾是一個關鍵的差異化因素，使我們能夠在核心執法、急救人員和軍事市場中保持領先地位。

Following the introduction of our HyperX Tactical Armor platform, Expert Fit 3D body sizing app and SafariVault line of holsters all launched in the last 9 months, we continue to hear positive feedback from customers. Of note, we've experienced a 47% increase of tactical soft armor in the first 3 quarters of 2023 compared to the same period of last year, with growth directly related and tied to HyperX.

過去 9 個月推出 HyperX Tactical Armor 平台、Expert Fit 3D 身體測量應用程式和 SafariVault 系列皮套之後，我們不斷收到客戶的正面回饋。值得注意的是，與去年同期相比，2023 年前 3 季戰術軟甲成長了 47%，這一成長與 HyperX 直接相關。

I'll now turn the call over to our CFO, Blaine Browers.

我現在將把電話轉給我們的財務長 Blaine Browers。

Thanks, Brad. I'll begin our remarks by discussing our M&A strategy and the general acquisition environment. Slide 8 summarizes the key criteria that drive Cadre's M&A process. We view potential transactions within 3 categories - those that will expand our suite of products, those that will enable us to enter new markets and those that will grow our geographic footprint. We target businesses with high margins, leading market positions and strong recurring cash flows and revenues.

謝謝，布拉德。我將首先討論我們的併購策略和整體收購環境。投影片 8 總結了推動 Cadre 併購流程的關鍵標準。我們將潛在交易分為三類：那些將擴展我們產品系列的交易、那些將使我們能夠進入新市場的交易以及那些將擴大我們的地理足跡的交易。我們的目標是利潤率高、市場地位領先、經常性現金流和收入強勁的企業。

Per Warren's earlier remarks, we cannot be more specific about the recent LOI we signed due to confidentiality obligations. But I can share that this business fits well within our platform, and its profile is very much consistent with our key criteria. Regarding broader M&A markets, it continues to be a tough financing market as lenders have significantly tightened their lending standards. In fact, Bloomberg recently reported the average multiple on new LBO deals is down 1.4 turns from a year ago, reflecting this new environment that shows us the gap between buyers and sellers appears to be closing.

根據沃倫早些時候的言論，由於保密義務，我們無法更具體地說明我們最近簽署的意向書。但我可以分享的是，這項業務非常適合我們的平台，而且其概況與我們的關鍵標準非常一致。就更廣泛的併購市場而言，由於貸款機構大幅收緊貸款標準，融資市場仍然嚴峻。事實上，彭博社最近報道稱，新的槓桿收購交易的平均倍數比一年前下降了 1.4 倍，反映出這種新環境向我們表明買家和賣家之間的差距似乎正在縮小。

The next 2 slides have detail our third quarter financial performance. As you can see on Slide 9, we increased net sales, gross margin, net income, adjusted EBITDA and adjusted EBITDA margin in the third quarter, both on a sequential and year-over-year basis. The increase in net sales reflects our significant orders backlog and was mainly driven by higher domestic demand for armor products and large orders for crowd control products. This was partially offset by decreased agency demand for hard goods. Third quarter net income was $11.1 million, or $0.29 per share, grew nearly 125% compared to last year's Q3.

接下來的兩張投影片詳細介紹了我們第三季的財務表現。正如您在幻燈片 9 中看到的，我們第三季度的淨銷售額、毛利率、淨利潤、調整後 EBITDA 和調整後 EBITDA 利潤率環比和同比均有所增長。淨銷售額的成長反映了我們大量的訂單積壓，主要是由於國內對裝甲產品的需求增加以及人群控制產品的大量訂單所推動的。這被機構對耐久財需求的減少部分抵銷。第三季淨利為 1,110 萬美元，即每股 0.29 美元，與去年第三季相比成長近 125%。

As we continue to implement our operating model and management positioning of our portfolio of premium products during the third quarter, we achieved significant margin expansion. For the second consecutive quarter, our adjusted EBITDA margin of 19% was our highest since going public, and gross margins increased 370 basis points year-over-year. Illustrated on Slide 10 is net sales and adjusted EBITDA growth year-over-year. As you can see, driven by increased revenue and improved gross profit margin, Cadre's 9-month 2023 adjusted EBITDA was up 22% versus last year.

隨著我們在第三季繼續實施優質產品組合的營運模式和管理定位，我們實現了利潤率的顯著擴張。連續第二個季度，我們的調整後 EBITDA 利潤率為 19%，是上市以來的最高水平，毛利率年增 370 個基點。第 10 張投影片顯示的是淨銷售額和調整後 EBITDA 的年成長。正如您所看到的，在收入增加和毛利率提高的推動下，Cadre 2023 年 9 個月調整後 EBITDA 比去年增長了 22%。

Based on our third quarter performance and management's outlook for the remainder of the year, we have raised the midpoint of our full year adjusted EBITDA guidance range and increased the midpoint of our 2023 net sales guidance. I'll discuss our new guidance in a moment.

根據我們第三季的業績和管理層對今年剩餘時間的展望，我們提高了全年調整後 EBITDA 指導範圍的中點，並提高了 2023 年淨銷售額指導範圍的中點。我稍後將討論我們的新指南。

On Slide 11, we present our capital structure as of September 30. Our net debt was $74 million, a further reduction of 15% since the end of Q2. This gives us net leverage of 0.8x. These levels, we maintain significant financial flexibility to grow both organically and inorganically through acquisitions.

在投影片 11 中，我們展示了截至 9 月 30 日的資本結構。我們的淨債務為 7,400 萬美元，自第二季末以來進一步減少了 15%。這使我們的淨槓桿率為 0.8 倍。在這些水準上，我們保持了顯著的財務靈活性，可以透過收購實現有機和無機成長。

We provided updated 2023 guidance on Slide 15. We've tightened our full year net sales range, raising the midpoint. We do expect 2023 net sales to be between $477 million and $481 million. Our upwardly revised adjusted EBITDA guidance range of between $82 million and $85 million implies 10% annual growth on adjusted EBITDA versus our initial forecast of 4% at the beginning of the year.

我們在投影片 15 上提供了更新的 2023 年指引。我們收緊了全年淨銷售額範圍，提高了中點。我們預計 2023 年淨銷售額將在 4.77 億美元至 4.81 億美元之間。我們向上修訂的調整後 EBITDA 指引範圍為 8,200 萬美元至 8,500 萬美元，這意味著調整後 EBITDA 的年增長率為 10%，而我們年初的初步預測為 4%。

Additionally, whereas the midpoint of our original guidance implied adjusted EBITDA margin of 16.2%, our success in the year-to-date has significantly increased our expectations for the full-year margins. Based on the updated midpoints, adjusted EBITDA margins rise to 17.4%.

此外，雖然我們最初指導的中點意味著調整後的 EBITDA 利潤率為 16.2%，但我們今年迄今為止的成功大大提高了我們對全年利潤率的預期。根據更新的中點，調整後 EBITDA 利潤率升至 17.4%。

While in the prior year, Q4 was our largest revenue quarter of the year, we now expect that Q3 will be the high watermark for revenue. One of the large international orders that we expected to ship in Q4 was actually shipped ahead of time in Q3, changing this expectation. We do expect armor volume to be down sequentially and the mix to return to normal. Based on these developments, along with the mix and EOD shifting to less profitable products, we expect margins to be lower sequentially. I would also like to reiterate that, for the most of our businesses, we only have 45 to 60 days of backlog visibility at any given time.

雖然去年第四季是我們今年收入最高的季度，但我們現在預計第三季將成為營收的高水位。我們預計在第四季度發貨的一大筆國際訂單實際上會在第三季提前發貨，改變了這一預期。我們確實預期裝甲量會依序下降，混合會恢復正常。基於這些發展，加上產品組合和 EOD 轉向利潤較低的產品，我們預期利潤率將依次下降。我還想重申，對於我們大多數企業來說，在任何給定時間，我們只有 45 到 60 天的積壓可見度。

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

我現在將其轉交給布拉德以徵求結論意見。

Thank you, Blaine. In summary, we are highly pleased with our strategic execution in the year-to-date, which is reflected in our strong third quarter and 9-month financial results. Once again, we generated record EBITDA margins and quarterly adjusted EBITDA as we continue to implement our operating model focused on attaining and sustaining exceptional results. We are pleased to raise the midpoints of both our full-year 2023 adjusted EBITDA and revenue outlook.

謝謝你，布萊恩。總之，我們對今年迄今的策略執行感到非常滿意，這反映在我們強勁的第三季和 9 個月的財務表現中。隨著我們繼續實施專注於實現和維持卓越業績的營運模式，我們再次創造了創紀錄的 EBITDA 利潤率和季度調整後的 EBITDA。我們很高興上調 2023 年全年調整後 EBITDA 和營收前景的中點。

M&A continues to be a focus, and we recently signed a letter of intent with a business that meets our key criteria. We expect to capitalize on additional attractive growth opportunities and remain confident that we will see more of these opportunities in the months ahead. Backed by macro tailwinds related to increasing public safety budgets and favorable industry dynamics, we believe Cadre is ideally positioned to further grow our leading platform of premium safety brands, moving forward.

併購仍然是一個焦點，我們最近與一家符合我們關鍵標準的企業簽署了一份意向書。我們預計將利用更多有吸引力的成長機會，並堅信在未來幾個月我們將看到更多此類機會。在公共安全預算增加和有利的行業動態相關的宏觀順風的支持下，我們相信 Cadre 處於理想的位置，可以進一步發展我們領先的優質安全品牌平台，向前邁進。

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

那麼，接線員，請打開問答線。

(Operator Instructions) Your first question comes from the line of Daniel Imbro with Stephens.

（操作員說明）您的第一個問題來自 Daniel Imbro 和 Stephens 的線路。

Maybe one on the international market side. I think it was encouraging to hear you guys won a contract there. Warren, I think your comments kind of signaled it wasn't the Middle East, that hasn't really materialized into new business yet. So one, can you comment on what market you won the international contract? And then, two, given what's going on globally, how long would it be before you expect that evolving conflict to materialize into some safety orders for you guys' products?

也許是國際市場方面的一個。我認為聽到你們在那裡贏得合約是令人鼓舞的。沃倫，我認為你的評論有點表明這不是中東，它還沒有真正落實到新業務。那麼，您能評論一下您贏得了哪個市場的國際合約嗎？然後，第二個問題，考慮到全球正在發生的事情，您預計不斷演變的衝突需要多長時間才能具體化為您產品的一些安全命令？

I can take the first part, and Warren, you can jump in. When I referenced the large international contract in Q3 that was originally planned in Q4, that's actually in a North America outside the U.S. order on the (inaudible) control products. We have had some orders for Ukraine, but I think consistent, as we said, it's not been material to this point. And really, it will be in that demining side of the world for EOD. So it won't be in the suits. It will really be in that demining, which is a less protective version of the EOD suit. That makes sense, Daniel?

我可以講第一部分，沃倫，你可以插話。當我提到原計劃在第四季度簽訂的第三季度的大型國際合約時，這實際上是在美國以外的北美地區關於（聽不清楚）控制產品的訂單。我們已經收到了一些來自烏克蘭的訂單，但我認為是一致的，正如我們所說，到目前為止這並不重要。事實上，它將在世界排雷方面進行爆炸物處理。所以它不會出現在套裝裡。它實際上是在排雷中，這是排雷服的防護性較低的版本。這是有道理的，丹尼爾？

And could you quantify maybe that contract that was pulled from 4Q and 3Q at all, [Blaine]?

[Blaine]，你能能量化一下從第四季和第三季取消的合約嗎？

We can't disclose to you the sensitivity, but it was significant of the business. I think as you kind of go through and look at the change in consensus, that will give you a feel for the size and scale of it.

我們無法向您透露敏感性，但這對業務很重要。我認為，當你仔細觀察並觀察共識的變化時，你會感受到它的規模和規模。

And then maybe taking a step back here, Warren, cash continues to build on the balance sheet even for this pending deal, but let's call it a few million bucks of EBITDA. You still should have excess cash, assuming a normal multiple. What do you view as the strategic or best uses of that cash? Are there CapEx projects you could pull forward? You guys don't have a ton of that. Is it a special dividend? Just how do you foresee deploying that capital back to shareholders in the absence of deals?

沃倫，也許退一步說，即使對於這項懸而未決的交易，資產負債表上的現金仍在繼續增加，但我們稱其為數百萬美元的 EBITDA。假設是正常倍數，你還是應該有多餘的現金。您認為這些現金的策略或最佳用途是什麼？是否有可以推進的資本支出項目？你們沒有那麼多。是特別股息嗎？在沒有交易的情況下，您預計如何將這些資本重新分配給股東？

Well, the good news is we don't have an absence of deals. I mean, we're working on a number as we speak. In fact, one we thought had gone away, I think the last time we spoke, we talked about deals that we had bid on that had been withdrawn. One of those is back. So our pipeline right now is quite full. And as the guys said before, the multiples are now reflective of the cost of capital and the overall environment. So we couldn't be more excited.

好消息是我們不缺交易。我的意思是，我們正在研究一個數字。事實上，我們認為已經消失的一個，我想我們上次談話時，我們談到了我們競標但已被撤回的交易。其中之一回來了。所以我們現在的管道已經滿了。正如他們之前所說，現在的倍數反映了資本成本和整體環境。所以我們非常興奮。

So our objective is to reinvest our cash in transactions. The company that we're buying, that we have an LOI on, is similar to our existing businesses, and that one also has low CapEx, [lot of] requirements and has margins. And I think you know from the last couple of transactions we've done, we are trying to target EBITDA margins in excess of 20%.

因此，我們的目標是將現金再投資於交易。我們正在購買的公司，我們有意向書，與我們現有的業務相似，而且該公司的資本支出也較低，[很多]要求並且有利潤。我想你從我們最近完成的幾筆交易中知道，我們正努力將 EBITDA 利潤率目標定為超過 20%。

And then last one for me, Brad. You mentioned productivity gains and some self-help on the 3Q margin. Other than the timing of that contract, anything one-time in that leverage? Or are you unlocking more savings maybe as you continue to scale the business and just turn over more stones on the productivity side?

最後一個是我的，布拉德。您提到了生產力的提高和對第三季利潤的一些自助。除了該合約的時間表之外，該槓桿還有什麼一次性的嗎？或者，當您繼續擴大業務規模並在生產力方面投入更多精力時，您是否會釋放更多的節省？

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

不，我的意思是，丹尼爾，當我們考慮生產力時，一次性沒有什麼重要的事情。這確實是做事的口頭禪，每天進步一點（聽不清楚），我們按順序看，對嗎？我們用它作為（聽不清楚）改善的一個很好的衡量標準，不僅是同比改善，而且是我們本季比上季更好。

So this will be something we continue to build on. We've certainly seen some very strong gains from the team on a year-on-year basis and sequentially. So we're really pleased with everyone's progress really across the globe when it comes to the adoption of the operating model and daily management really just pushing all the businesses forward.

因此，這將是我們繼續發展的基礎。我們確實看到了團隊逐年連續取得的一些非常強勁的成果。因此，我們對全球每個人在採用營運模式和日常管理方面取得的進步感到非常滿意，這確實推動了所有業務的發展。

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

您的下一個問題來自 Jeff Van Sinderen 和 B. Riley & Co. 的線路。

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

所以只是想回到排雷服，我想，你會稱之為，生產力較低的（原文如此）[保護性]版本的EOD。您能提醒我們那裡的美元價格與全套套裝的價格嗎？

Yes. When you think about a full bomb suit, right, you're upwards of $30,000 or right around there. This would be a de-mining suit. It can vary, right, and there's actually a level of between, Jeff, as we talked about, what the company refer to as a Tac-6 suit, or a tactical suit. As you move down to demining, you're certainly above kind of the body armor level but below even the Tac-6 protection. And that can vary depending on there's variation there, but you're really talking generally sub-$5,000 and north of $1,000. The difference on that one, though, is one of the restrictions around EOD suits is we've talked about the market. It's a fairly limited market, right, with about 20,000 operators across the globe. So there's just a limited number there, right, and we'll continue to sell those, and we continue to be the proven, (inaudible) choice for those operators.

是的。當你考慮一套完整的炸彈套裝時，對吧，你的價格超過 30,000 美元，或者就在這附近。這將是一套排雷服。它可以有所不同，對吧，實際上有一個級別，Jeff，正如我們所討論的，該公司稱之為 Tac-6 套裝，或戰術套裝。當你進入排雷階段時，你的防護級別肯定高於防彈衣級別，但甚至低於 Tac-6 防護級別。這可能會有所不同，具體取決於那裡的變化，但你實際上談論的是一般低於 5,000 美元和高於 1,000 美元的價格。不過，這一點的不同之處在於，我們已經討論過市場對排爆套裝的限制之一。這是一個相當有限的市場，對吧，全球約有 20,000 家營運商。因此，數量有限，對吧，我們將繼續銷售這些產品，並且我們仍然是這些運營商經過驗證的（聽不清楚）選擇。

As you move down, though, what demining allows you is you don't have to have the same level of training you do with the EOD, and you're addressing different levels of threat, right? That's the different level of protection. The demining, though, is a much higher volume game. So the teams are worked in very diligently with partners and really kind of working with Ukraine and different embassies across the globe to ensure that, hey, when the time is right, here's the suite of products that we have available to ensure we protect the men and women that are out there making the country safe again.

然而，當你向下移動時，排雷允許你不必接受與爆炸物處理相同程度的培訓，並且你正在應對不同程度的威脅，對嗎？這就是不同等級的保護。不過，排雷是一項規模大得多的遊戲。因此，這些團隊與合作夥伴非常努力地合作，並與烏克蘭和全球各地的不同大使館合作，以確保，嘿，當時機成熟時，這是我們可用的一套產品，以確保我們保護這些人還有那些讓國家再次安全的婦女。

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

再說一遍，這個時間將是敵對行動停止的時候，對吧，因為你不能進去做那種工作。加薩也需要做同樣的工作。

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

正確的。這將是我的下一個問題，您對中東正在發生的事情有任何疑問嗎？

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

所以，我的意思是，我們得到了成長。以色列是我們的客戶，我們正在盡我們所能。但顯然，現在那裡的很多東西都是與鐵穹有關的大型彈藥以及掉落的炸彈。

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

然後，我想，任何事情，只是快速跟進，如果可以的話，只是爆炸感測器產品的任何更新？只是想知道我們在這方面的進展如何。

Jeff, are you talking about blast sensors?

傑夫，你是在談論爆炸感測器嗎？

Yes, yes, the sensor.

是的，是的，感測器。

I just want to make sure. So on the blast sensor side of things, still the same status as previous quarter. What we're being told right now is the first quarter of next year is when we'll receive that feedback on the current phase of the project that we're in. So we're still in that wait-and-see phase in terms of any changes in requirements as we go forward with that project. But so far, no news is good news.

我只是想確定一下。因此，在爆炸感測器方面，仍然與上一季相同。我們現在被告知的是，明年第一季我們將收到有關我們所處專案當前階段的回饋。因此，我們仍處於觀望階段當我們推進該專案時，要求發生任何變化。但到目前為止，沒有消息就是好消息。

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

下一個問題來自 Sheila Kahyaoglu 和 Jefferies 的對話。

This is [Sam Gatzes] on here for Sheila. I just wanted to ask quickly, another strong quarter of gross margins and EBITDA margins. Continued sequential performance is strong. You mentioned EOD and armor mix should continue to normalize into Q4. Can you just help us frame some of these other moving pieces within the implied EBITDA guide that steps down a few points sequentially here in Q4?

我是[Sam Gatzes]，為希拉服務。我只是想快速問一下，毛利率和 EBITDA 利潤率又一個強勁的季度。持續連續表現強勁。您提到EOD和裝甲組合應該繼續正常化到第四季。您能否幫助我們在隱含的 EBITDA 指南中框架一些其他移動部分，該指南在第四季度按順序下降了幾個點？

The 2 biggest pieces are really armor mix. We do have some larger armor orders in Q4 that we have visibility today on that we know will be lower margin that we experienced in Q3, and really more of that normalization. And then on the EOD side, as we think about the different products, this would be moving away from EOD suits to do more volume in some of our other product lines, such as tools and robots, which are just a lower margin profile in that quarter. That's really the 2 drivers, along with a little bit of volume leverage, obviously, with the lower top line. That's implied in that guidance.

最大的兩塊實際上是裝甲組合。我們在第四季度確實有一些較大的裝甲訂單，我們今天可以看到，我們知道這些訂單的利潤率將低於第三季度的水平，而且實際上更多的是正常化。 And then on the EOD side, as we think about the different products, this would be moving away from EOD suits to do more volume in some of our other product lines, such as tools and robots, which are just a lower margin profile in that四分之一.這其實是兩個驅動因素，加上一點成交量槓桿，顯然，收入線較低。該指南中暗示了這一點。

And I guess, maybe just to step back and talk a little bit more on sort of top line, a strong 12% year-over-year growth and up 3% sequentially against its typically seasonally soft Q3. Can you just help us kind of bucket the growth drivers within that? And sort of you mentioned the large international order, but is there anything like timing of backlog or price, or just more volume out the door that got pulled forward here in Q3?

我想，也許只是退後一步，多談談營收，年增 12%，與通常季節性疲軟的第三季相比，季增 3%。您能幫助我們挖掘其中的成長動力嗎？您提到了大型國際訂單，但是否有諸如積壓時間或價格之類的問題，或者只是在第三季度提前了更多的出貨量？

Yes, it's really volume. I mean there's some price, but price sequentially is not a significant component there. I think as you kind of think about the drivers, there's no -- other than the large international order I mentioned in the craft control side. There's nothing that really picks up significantly.

是的，確實是音量。我的意思是有一些價格，但價格順序並不是其中的重要組成部分。我認為，當你考慮一下驅動程式時，除了我在製程控制方面提到的大型國際訂單之外，沒有什麼。沒有什麼能真正顯著提升。

The Armor team, in particular, has had some significant volume, Brad mentioned HyperX, which is that soft tactical that continued to deliver some hard armor products as well, driven really by the Uvalde school incident last year, which is really going to be place, and shields. And those are really those kind of drivers there. Other than that, there's nothing that really kind of sticks out. But those are significant numbers. When you think about that large international order, that's a very significant number for that business, has certainly impacted the quarter. And again, it kind of implied where we can't really talk about the size of the order, but it's certainly implied when you look at the change in guidance and certainly kind of Q3, Q4 change.

Brad 提到 HyperX，尤其是 Armor 團隊，銷售相當可觀，這是一種軟戰術，同時也繼續提供一些硬裝甲產品，這實際上是受到去年 Uvalde 學校事件的推動，這確實會發生和盾牌。這些確實是那裡的司機。除此之外，沒有什麼真正突出的地方。但這些都是重要的數字。當你想到這個龐大的國際訂單時，這對該業務來說是一個非常重要的數字，肯定會影響該季度。再說一遍，這有點暗示我們不能真正談論訂單的規模，但當你看到指導的變化以及第三季、第四季的變化時，這肯定是暗示的。

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

我們的下一個問題來自 Matt Koranda 和 ROTH MKM 的對話。

You covered the margin swing for the fourth quarter, but I wanted to maybe get a better understanding of the swing factors on the top line guide for the fourth quarter, I guess implied in the guide. You have a $10 million range. Maybe just talk about the factors on swinging to the high end or the low end of that guidance range. And then just are there any large orders we should be thinking about that could get pulled in or pushed out that kind of factor in there?

您涵蓋了第四季度的利潤率波動，但我想也許可以更好地了解第四季度營收指南中的波動因素，我想指南中已經暗示了這一點。你的範圍是 1000 萬美元。也許只是談談波動到該指導範圍的高端或低端的因素。那麼我們是否應該考慮是否存在可能被拉入或推出的大訂單？

Yes. The push and pull really is implied in that kind of range, Matt. And certainly, when we get to the end of the year, time gets critical when you hit the holidays. So certainly, when you think international, anything that gets pushed out into kind of maybe decision point in kind of mid-December, or even earlier than that, tends to have some risk to it.

是的。馬特，推力和拉力確實隱含在這個範圍內。當然，到了年底，假期就變得至關重要。所以，當然，當你想到國際時，任何在 12 月中旬甚至更早被推到決策點的事情往往都會帶來一些風險。

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

所以我認為，由於我們總是到年底，我們對這些訂單會有點謹慎。當然，我們今天坐的位置，我們對範圍和指南充滿信心，但有幾個重要的訂單確實在裝甲上，確實是那種成敗的問題。 （聽不清楚）對業務和可見性的思考，對吧？這實際上往往是裝甲和執勤人員的能見度較短，而 EOD 往往具有較大的能見度。

So when you think about the armor and duty here, it's about those orders coming in, when you move to the EOD side, that's typically driven by maybe customer changes on delivery dates, right? We already have the firm order in place, or it could be driven by payments where what prior shipment, we're waiting on a prepayment or a full payment. Those are really the kind of the 2 components that impact the range there as we move into Q4.

因此，當您考慮此處的裝甲和職責時，這是關於收到的訂單，當您轉向 EOD 方面時，這通常是由客戶在交貨日期上的更改驅動的，對嗎？我們已經有了確定的訂單，或者它可能是由付款驅動的，在發貨之前，我們正在等待預付款或全額付款。當我們進入第四季時，這些確實是影響範圍的兩個因素。

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

但我想說，總的來說，馬特，當我們為布萊恩剛剛提到的任何潛在情況建立整體修訂範圍時，我們已經考慮了這一因素。

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

所以我們也會考慮這一點，馬特。那不是損失。我們不認為這是失敗。那隻是一個推動

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

然後就收購而言，我知道您可能不想說太多，只是好奇。您使用的語言是它與現有業務相似。這是否意味著它可能是現有產品？或者也許只是您可能要去的地方的任何口味。

We're not going to go there. Just say it's a very comfortable business. We know the people. And we're very excited about the opportunity. Obviously, we need to go through all the things that we go through to acquire businesses working through the contracts and the diligence and so on. But we're encouraged by this one. And I think, when we can speak about it specifically, you'll agree with us that it's a very strong deal.

我們不會去那裡。只能說這是一個很舒服的生意。我們了解這裡的人。我們對這個機會感到非常興奮。顯然，我們需要透過合約和盡職調查等方式完成收購企業所經歷的所有事情。但我們對此感到鼓舞。我認為，當我們可以具體談論它時，您會同意我們的觀點，這是一項非常強大的協議。

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

下一個問題來自美國銀行的羅恩愛潑斯坦。

A lot's been asked, but let me see if I can open the aperture a little bit. So Warren, when you think about M&A, security is a broad definition, right? So there are verticals that you don't currently play in, maybe more technically-oriented tech like electronics, that kind of thing. When we think about potential deals you could do, how are you thinking about adjacencies and other verticals that aren't where you're playing currently?

問了很多，但讓我看看是否可以將光圈打開一點。所以沃倫，當你想到併購時，安全是一個廣泛的定義，對嗎？所以有些垂直領域你目前還沒有涉足，也許是更注重技術的技術，像是電子產品之類的。當我們考慮您可以做的潛在交易時，您如何考慮鄰接和其他不屬於您目前業務的垂直領域？

So we have an extraordinary management team led by Brad and Blaine, and as you know, the they all have an operating model background. And so whatever we look at, those opportunities will need to benefit from the operating models, which we have been developing for our own business here over the last number of years and where you are seeing -- we're all seeing the benefit of that right now.

所以我們有一個由布拉德和布萊恩領導的非凡的管理團隊，正如你所知，他們都有營運模式背景。因此，無論我們如何看待，這些機會都需要從營運模式中受益，過去幾年我們一直在為自己的業務開發這種模式，而你所看到的——我們都看到了這種模式的好處現在。

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

因此，我們之前討論的交易是我們所做的一切的基礎。今天，我們將研究可能涉及電子領域的鄰近區域，並且我們在這方面擁有一些內部能力。尤其是布拉德在這些類型的事情、工業安全等方面有著親身經歷。但同樣，我們正在尋找那些可以從我們現有的營運模式和紀律中受益的企業。

And I think also we spoke previously about the types of margins that we would want to experience in those businesses. So we are looking only at opportunities where the EBITDA margins are in excess of 20% and where there's not a lot of CapEx required to maintain and grow those businesses.

我想我們之前也談到過我們希望在這些業務中體驗到的利潤類型。因此，我們只關注 EBITDA 利潤率超過 20% 並且不需要大量資本支出來維持和發展這些業務的機會。

But there seems to be more today available than there have been. I think we're going to see, and Ron, you probably know this from talking to a lot of your companies you cover, there's going to be more internal thinking about what (inaudible) some of these larger companies what they have, what the mix is and divesting certain things that don't fit in. And so it's pretty ripe for us.

但今天可用的似乎比以前更多。我想我們會看到，羅恩，你可能透過與你所報道的許多公司交談而知道這一點，將會有更多的內部思考，關於這些大公司中的一些（聽不清）他們擁有什麼，他們有什麼混合就是放棄某些不適合的東西。所以這對我們來說已經非常成熟了。

Also, private equity, as you probably have read, it's very difficult for new funds to be raised even for the largest firms. And there are a lot of firms out there today that are orphans, and with higher interest rates, that's a problem. And so that is forcing a lot of private equity firms to reevaluate what they have, how long they can keep it, what they need to do with those assets.

此外，正如您可能已經讀到的那樣，私募股權即使對於最大的公司來說，籌集新資金也非常困難。如今有很多公司都是孤兒，而且利率較高，這是一個問題。因此，這迫使許多私募股權公司重新評估他們所擁有的資產、可以保留多長時間以及需要如何處理這些資產。

So we're as encouraged as we could be right now about who we are, what we do, our balance sheet. As you know, we're very careful about that. And think Blaine's very focused every day, not just on the operating aspects of the business, but also on our balance sheet, as well. And so these are the disciplines that we would take forward with us as we're looking to buy [new things.]

因此，我們現在對我們是誰、我們做什麼、我們的資產負債表感到非常鼓舞。如您所知，我們對此非常謹慎。布萊恩每天都非常專注，不僅關注業務的營運方面，還關注我們的資產負債表。因此，這些是我們在尋求購買[新東西]時將遵循的原則。

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

您的下一個問題來自 Lake Street Capital Markets 的 Mark Smith。

Sorry if I missed this earlier in the call, but can you discuss kind of new products, how those are performing, especially a lot of those that we saw kind of introduced early in calendar '23?

很抱歉，如果我在電話會議的早些時候錯過了這一點，但是您能否討論一下新產品的類型，這些產品的表現如何，特別是我們看到的許多在日曆 '23 早期推出的產品？

Mark, this is Brad. So new product wise, what I talked about a little bit earlier, we're really proud of the progress we've made. And I know you've seen some of those HyperX product Expert Fit 3D body sizing, the Safarivault line, and then we have a whole host of consumer holsters that we've launched. And most notably, our IncogX holster, just won Guns & Ammo Holster of the Year.

馬克，這是布拉德。因此，就新產品而言，我之前談到過，我們對所取得的進步感到非常自豪。我知道您已經看過一些 HyperX 產品 Expert Fit 3D 身體尺寸、Safarivault 系列，然後我們推出了一系列消費者皮套。最值得注意的是，我們的 IncogX 皮套剛剛獲得年度槍支和彈藥皮套獎。

So we're really, really proud about what we're doing from a new product perspective. When you look at the growth overall for the consumer side of things, we, in our remarks, showed a 5% increase on duty gear on the consumer side for us. And then HyperX has reported 45-plus percent growth on the HyperX side of things. So we love engineers. World would be a better place with more engineers, quite frankly, and our team's having fun with innovation and, quite frankly, spending a lot of time with customers and just understanding pain points and where we can continue to improve things and make their lives better and continue to uphold our mission around saving lives. So I'm really proud of the results we're seeing.

因此，從新產品的角度來看，我們對我們所做的事情感到非常非常自豪。當你觀察消費者方面的整體成長時，我們在評論中顯示，消費者方面的值班裝備增加了 5%。然後 HyperX 報告指出 HyperX 方面的成長率超過 45%。所以我們熱愛工程師。坦白說，如果有更多的工程師，世界會變得更美好，我們的團隊享受創新的樂趣，坦白說，我們花了很多時間與客戶在一起，了解痛點以及我們可以繼續改進的地方，讓他們的生活更美好。並繼續堅守我們拯救生命的使命。所以我對我們所看到的結果感到非常自豪。

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

您提出了業務中消費者方面表現良好的情況。有什麼評論嗎？在中東發生事件之後，我們發現 10 月的需求增加，甚至在國內對其中一些產品的需求也有所增加。您可以在 10 月向我們提供任何見解嗎？消費者方面的趨勢是什麼樣的？

Yes. I think October is consistent with our expectations, which I think is kind of the framework we've seen all year now. Our expectations are probably a little bit different than what you'd expect in the market, and that's really driven by these new products that, as Brad mentioned, had great success.

是的。我認為十月符合我們的預期，我認為這是我們全年看到的框架。我們的期望可能與您在市場上的期望有點不同，這實際上是由這些新產品推動的，正如布拉德所提到的，這些新產品取得了巨大的成功。

So yes, I think, when you look at the statistics, the consumer markets certainly just kind of stays kind of maybe flattish to down, whereas with those new products, we're able to continue to expand our share and grow in those markets, and what we're seeing kind of early part of Q4, as well.

所以，是的，我認為，當你查看統計數據時，消費市場肯定只是保持平穩甚至下降，而有了這些新產品，我們能夠繼續擴大我們的份額並在這些市場中增長，以及我們在第四季度早期看到的情況。

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

目前沒有其他問題。布拉德威廉斯，我會將電話轉回給您。

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

謝謝你，接線生。我要再次感謝大家參加今天的電話會議以及大家對 Cadre 的持續關注。謝謝。

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

今天的電話會議到此結束。謝謝您，祝您有美好的一天。