Cadre Holdings Inc (NYSE:CDRE) stock fell 4.65% (As on Mar 11, 11:05:07 AM UTC-4, Source: Google Finance) after the company generated net sales of $103.5 million for the fourth quarter, as compared to $107.6 million for the quarter ended December 31, 2020. For the quarter ended December 31, 2021, Cadre generated gross profit of $39.2 million, as compared to $39.8 million for the prior year period. Gross profit margin was 37.9% for the quarter ended December 31, 2021, as compared to 37.0% for the prior year period, mainly driven by favorable pricing and product mix. Net income was $4.3 million for the quarter ended December 31, 2021, as compared to net income of $15.8 million for the quarter ended December 31, 2020, primarily as a result of an increase in provision for income taxes due to the release of a valuation allowance on a portion of the Company’s deferred tax assets in December 2020, offset in part by a reduction in interest expense as a result of the Company’s August 2021 debt refinance for the year ended December 31, 2021.

Moreover, Cadre generated $15.3 million of Adjusted EBITDA for the quarter ended December 31, 2021, as compared to $15.5 million for the quarter ended December 31, 2020. Adjusted EBITDA margin was 14.7% for the quarter ended December 31, 2021, as compared to 14.4% for the prior year period. Product segment gross margin was 38.8% for the fourth quarter and Distribution segment gross margin was 23.9% for the fourth quarter. Cadre’s cash and cash equivalents increased by $31.0 million from $2.9 million as of December 31, 2020, to $33.9 million as of December 31, 2021. Capital expenditures totaled $0.8 million for the fourth quarter and $3.0 million for the year ended December 31, 2021, compared with $0.8 million for the fourth quarter and $4.7 million for the year ended December 31, 2020. Net debt decreased by $53.1 million from $212.8 million as of December 31, 2020, to $159.7 million as of December 31, 2021.

Meanwhile, on November 3, 2021, the Company completed the closing of its initial public offering of 6.9 million shares, including the full exercise of the underwriters’ option, at a price to the public of $13.00 per share, for net proceeds of approximately $78.6 million. The Company has utilized proceeds received in connection with the initial public offering and repaid $38.9 million and $20.5 million, respectively, of borrowings outstanding under its current term loan and revolving credit facility