Cadre Holdings, Inc., a company specializing in orthopedic, prosthetic, and surgical appliances, disclosed a cybersecurity incident on Monday, where unauthorized access to certain company technology systems was detected. The Jacksonville, Florida-based company, listed on the New York Stock Exchange under the ticker NYSE:CDRE, reported the breach in a Form 8-K filed with the Securities and Exchange Commission on Friday.
The incident, which occurred on July 15, 2024, prompted Cadre Holdings to implement its response protocols, including an investigation with external experts, notifying federal law enforcement, and temporarily shutting down some of its systems as a precaution. The company's efforts to contain and remediate the breach are ongoing.
At this time, the full extent, nature, and consequences of the unauthorized access are not fully known. Cadre Holdings has stated that while some operations have been impacted, it is currently unclear whether the breach will materially affect the company's financial health or operational results.
The company's statement in the SEC filing included forward-looking remarks about the incident's potential implications on its business and financial outcomes. However, Cadre Holdings acknowledged that the ongoing evaluation of the breach could lead to new findings, and it cautioned that the incident could pose legal, reputational, and financial risks.
In other recent news, Cadre Holdings reported a strong first quarter in 2024 with record net sales of $137.9 million, the highest since its inception, and significant margin expansions. These results were largely driven by the company's strategic mergers and acquisitions (M&A) program, which has already seen two successful acquisitions this year. CEO Warren Kanders reaffirmed the 2024 guidance for net sales and adjusted EBITDA, with expected growth rates of 16.6% and 23.5%, respectively.
Despite transaction expenses and amortization of intangibles impacting earnings per share, Cadre generated strong free cash flow and remains committed to returning capital to shareholders. The company anticipates strong demand for its products due to ongoing geopolitical uncertainty and the importance of defense budgets. Cadre expects to continue its M&A strategy, aiming for long-term EBITDA margin expansion. The company is confident in its double-digit growth objective and has reaffirmed its commitment to this goal. Revenue projections for the year were discussed, with different divisions expected to contribute varying amounts to the annual revenue. The company's marketing and e-commerce teams are focused on growing their consumer channel presence and increasing visibility.
InvestingPro Insights
In light of the recent cybersecurity incident at Cadre Holdings, Inc., investors may be closely monitoring the company's financial metrics and market performance. According to real-time data from InvestingPro, Cadre Holdings has a market capitalization of $1.53 billion and is trading at a P/E ratio of 38.09, which adjusts to 33.96 when considering the last twelve months as of Q1 2024. The company's revenue growth for the same period was a robust 9.34%, with a quarterly surge of 23.37% in Q1 2024.
InvestingPro Tips suggest that Cadre Holdings is trading at a low P/E ratio relative to near-term earnings growth, which could be an attractive point for investors seeking value. Additionally, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. With a strong return of 67.51% over the last year, Cadre Holdings has demonstrated significant market performance.
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