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Cadre Holdings IPO Presentation Deck

EBITDA RECONCILIATION ADJUSTED EBITDA AND EBITDA CONVERSION RECONCILIATION (SMM) Net Sales Net Income (Loss) Depreciation & Amortization Interest Expense Provision (Benefit) For Income Taxes EBITDA 1 Restructuring and Transaction Costs 2 Other General Income 3 Other (Expense) Income, Net 4 Contingent Consideration and Other 5 LTIP Bonus 6 Goodwill Impairment Adj. EBITDA - Total¹ Adj. EBITDA Margin (%) ² Capital Expenditures Adj. EBITDA - Capex Adj. EBITDA Conversion Rate (%)³ CADRE HOLDINGS 1. 2019A 420.7 ($1.9) 15.4 (0.1) $43.2 0.9 (7.6) (0.4) 0.0 0.0 7.6 $43.7 10.4% (3.1) $40.6 92.9% 2020A $404.6 $38.5 14.7 (10.6) $67.0 5.8 (11.0) (2.7) (1.2) $58.0 14.3% (4.7) $53.3 91.9% LTM 6/30/2021 $438.5 $35.9 14.1 (5.7) $66.8 0.0 (1.2) 1.3 0.0 $71.2 16.2% (3.6) $67.7 95.0% 2020 $191.3 $16.2 12.6 1.1 $37.6 3.0 (11.0) (2.1) $27.4 14.3% (2.6) $24.8 90.4% 2021 $225.1 $13.7 7.0 10.7 6.0 $37.3 Adj. EBITDA defined as earnings before interest, taxes, depreciation and amortization + adjustments Adj. EBITDA margin (%) defined as Adj. EBITDA/ net sales Adi EBITDA conversion rate (N) defined as (Adj. EBITDA-capex)/Ad. EBITDA 1.5 0.5 1.3 0.0 $40.7 18.1% (1.5) $39.2 96.3% DESCRIPTION OF ADJUSTMENTS 1 2 Includes a gain from a long-lived asset sale and earn-out stock payments in 2020A and gain from Mustang sale and earn-out stock payments in 2019A. 3 Transaction costs composed of legal and consulting fees in 2020A and termination benefits and relocation of employees associated with consolidating or closing of facilities in 2019A. Includes realized gain on equity securities offset in part by a stock collar transaction entered into in order to mitigate the impact of market volatility in 2020A and unrealized gains on equity securities offset by losses on foreign currency transactions in 2019A. 4 Reflects a gain on the settlement of contingent consideration offset partially by debt extinguishment write-offs. 6 5 Reflects the cost of a cash-based long-term incentive plan awarded to employees that vest over three years. Reflects primarily goodwill impairment expense in 2019A relating to the distribution reporting unit.
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