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These factors contribute to an attractive set of industry dynamics that we expect to support the ongoing development of our business. Brad and Blaine will go into the details of our results further in a moment, but we are proud of the fact that we have been able to deliver on the commitments we made to our investors at the time of our IPO and along the way since then. During 2022, we completed two acquisitions and integrated them seamlessly and without disruption to their various stakeholders. We believe we have already been able to meaningfully improve each business by bringing to bear the operating tools and best practices we employ across all of our businesses. At the same time, we are generating significant free cash flow that provides capacity to pursue additional acquisitions.

We are exceeding our pricing growth targets to maintain margins and challenging inflation environment, and we are pleased to have met earnings expectations set out for us by the equity research analyst that cover our company. Looking ahead, we are optimistic about our medium to long term outlook, in addition to the fact that our business model benefits from strong cashflow generation. Since we've successfully completed a follow-on equity offering in 2022, our balance sheet is solid and we have substantial capacity to take advantage of a confused M&A environment. Developing and executing on this element of our strategy is something that we as a team and I personally spend a substantial amount of time focusing on. To comment on the macros, stating the obvious, the rise of interest rates by the Fed in response to inflation have substantially impacted psychology around transactions.

Adding to that, there is significant uncertainty and concern about various geopolitical risks and the trajectory of the economy. This reminds us of why we focus on the durability and resilience of our businesses when prioritizing M&A targets and makes us grateful to be invested in the businesses we are in now. It also creates an opportunity for our company since many other potential buyers are either more reliant on robust debt markets or generally frozen by other risk factors or portfolio issues to be active. Given the lack of M&A activity over the last six to nine months, the pent-up backlog of business owners looking to transact continues to build, and in my opinion, the longer this macro environment persists, the better it is for Cadre.

Putting it in a different context through a predecessor company for Cadre and for the last decade with Cadre, I have been in these markets since 1996 and have lived through many different economic and credit cycles. What I have seen is that some of the best opportunities arise when things are dislocated or choppy. Today we continue to see and work on compelling opportunities and we hope to have more to report on that effort this year. Speaking about areas of focus as we have previously discussed, in addition to acquiring businesses that complement our core, we are pursuing and prioritizing diversification plays consistent with our focus on safety and we have gotten increasing traction on pursuing these types of businesses. Based on our pipeline and the level of activity we've devoted to this area, we believe we should be able to acquire one or two businesses this year, which have the team in place to integrate them quickly and set ourselves up for 2024 and beyond.

I would add that we expect to be able to do this using the credit facilities we have in place and our bank group is led by PNC and Bank of America, so we do not believe we have risk related to the recent freeze of conditions for regional banks. Having said all of that, we remain patient, thorough, disciplined, and thoughtful about our approach as we evaluate deals. As you probably recall, we hedged a substantial portion of our current borrowings in the beginning of last year. So our blended cost of debt, even with higher interest rates remained slightly below 4%. Through free cash flow generation, we lowered our operating net leverage at the end of the year to approximately 1.4 times and we expect to further de-lever through the year. All things considered, we are comfortable with where we stand and are excited about our prospects this year and in the long term.

Considering the state of the world, we are confident in the tailwinds and favorable industry macros that drive our business and we believe we have solid organic drivers for our businesses that maintain a solid foundation to continue pursuing accretive acquisitions. With that, thank you for being with us today and I will turn the call over to Brad. Brad, over to you.

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Brad Williams: Thank you, Warren. So moving on to slide four, on today's call we'll provide a quarterly update and business overview, including a review of new products and our M&A strategy and cover our financial performance and 2023 outlook, followed by a Q&A session. We'll begin on Slide 5; 2022 is a record year for us and we are pleased to have further advanced, important, strategic objectives in the fourth quarter, despite a challenging macro environment. Our global teams have done an outstanding job and we continue to work on new innovations to add to the premier group of Cadre product lines that protect law enforcement, military, and security professionals. I'm excited to share an update later on the call regarding three new products we've launched that demonstrate our commitment to innovation and maintaining the highest level of brand equity.

Once again, we exceeded our 1% price growth target above material inflation in the fourth quarter. Customers recognize and appreciate the superior quality and performance of Cadre's products, enabling us to maintain our premium position. With that said, we continue to monitor our position in the market and strive to use material and labor productivity as a means to assist with cost pressures. Our teams around the globe have done a great job at operating a little better every day and continue to progress with our structured rollout of the Cadre operating model. Fourth quarter adjusted EBITDA conversion remains strong at 93% and reflects the strength of our low CapEx model, driving significant cash generation. Turning to product mix, we continued to see improved mix in Q4 related to the first half of the year, which was consistent with their expectation.

In the fourth quarter, better mix was driven by higher due to year and EOD shipments. As a result, Q4 margin -- gross margins improved 235 basis points, excluding the inventory step up impact from acquisitions compared to the same period last year. Regarding our orders backlog, it remained strong. As of December 31, 2022, our backlog stood at $117.9 million. While the backlog total decline from the end of Q3, this was anticipated and is reflected in our significant Q4 revenue, which increased 19% versus the prior year period. As Warren mentioned, M&A is a top priority and we maintain a healthy funnel of opportunities. As we navigate the current environment, we remain focused on actively evaluating deals in line with our key criteria. Blaine will discuss our M&A strategy and pipeline in greater detail later on the call.

Finally, I'd like to highlight that our strong cash flow generation not only positions us to execute acquisitions, but also consistently return capital shareholders. In February, we paid our sixth consecutive quarterly dividend of $0.08. Slide six, outlines macro tailwinds supporting our long-term sustainable growth. These tailwinds remain intact and continue to drive demand and visibility for Cadre's mission-critical products in both domestic and international markets. Turning to the latest market trends affecting our business on Slide seven, these two have remained fairly consistent over the last several months. We continue to see signs of increasing spin per officer given that North American police budgets remain healthy. With that said, departments are still struggling to fill open positions.

As we have noted in the past, we expected to take some time for officer headcount to return to historical levels. Additionally, related to the war in Ukraine, our expectation is there will be EOD opportunities over and above the orders that we have seen up to this point. In terms of timing, we would anticipate additional demand once the conflict deescalates. The next bullets are focused on the supply chain and trends in the labor market; during the fourth quarter and the year-to-date, we have seen less disruptions in delays, but are still experiencing pockets of expanded lead times impacting the flow and availability of various raw materials. As we continue to actively monitor our supply chains, we also remain focused on managing our labor force in the face of certain challenges.

At this time, we're comfortable with our ability to attract an appropriate labor force to meet our needs, but developments related to near-shoring and minimum wage increases in Mexico have made hiring and retaining employees more difficult. While we do not view this as a major hindrance to our business, it is a trend we are watching and wane options to address. In terms of our consumer segment, demand remains stable despite broader macro concerns about demand weakness. We continue to monitor trends in this segment along with launching new products as this is a high margin channel for Cadre. Before I turn the call over to Blaine, I'd like to briefly highlight three new products recently introduced to the market that we are extremely excited about.

Our company was founded on commitment to innovation, which continues to terminate all that we do. We've earned leading market share in our product categories and work relentlessly to maintain our premium value proposition. On Slide eight, we present our latest holster offering Safari-Vault, which began shipping to customers this month. As the needs of law enforcement officers evolved, we wanted to create an incredibly durable holster that offers adaptability with design enhancements and improved functionality. Importantly, this product is consistent with the defining performance that has made our key brands Safariland, the industry leader in firearm retention for almost six decades, and we believe has differentiating features that can help us maintain our shared position.

Next, on Slide nine, we highlight our new tactical armor platform, HYPERX, that capitalizes on our strengths and hard armor and soft ballistics technology. This product is aimed at a more niche in market of canine units, SWAT and special ops teams, and was designed to give officers more adjustability, customization and comfort while eliminating excess material, weight and bulk. Our goal is to grow our share in the tactical armor market and we've seen initial indications of share gain against companies that specialize in this area. Third, we've introduced a 3D body sizing app called XPERTFIT, outlined on Slide 10. Using proprietary technology and in partnership with 3D look, we developed a digital method to convert two photos into a full 3D model with over 80 measurement points.

Before the development of this technology, the industry has spent decades manually measuring first responders with tape measures. Determining our recommended size in our industry is extremely important to optimize protective coverage and comfort. The process of determining a recommended fit is very time consuming for first responders, distributors, and our sales representatives. The Safariland expert fit app can measure fully dressed individuals with the highest position of accuracy in seconds. We believe this exclusive technology is a different for Cadre. In summary, what is too early to tell the extent to which new products will drive early refresh cycles, we have experienced meaningful wins to maintain our high share positions and have won opportunities in the tactical body armor space where our share is much lower.

I'll now turn the call over to Blaine.

Blaine Browers: Thanks Brad. I'll begin my remarks by discussing our M&A strategy in the general acquisition environment. Slide 11 summarizes the key criteria that drive Cadre's M&A process. As investors familiar with Cadre know well, we are focused on adding high margin companies with leading market positions and strong recurring revenues and cash flows that either expand our product and technology offerings, enter new markets, and/or grow our geographic footprint. Consistent with the strategic focus, we successfully added two businesses in 2022 that further expanded Cadre's international presence and added multiple growth avenues. Integration of both businesses has been efficient and we remain on track implementing Cadre operating tools to drive further progress.

In terms of M&A opportunities moving forward, we will remain patient and continue to actively evaluate a robust funnel of targets consistent with our key criteria. On Slides 12 and 13, we detail our fourth quarter and full year 2022 results. As you can see, our strong Q4 capped off a very solid year of financial results evidenced by significantly increased net sales and adjusted EBITDA in 2022. Importantly, these were in line with the guidance we laid out earlier in the year. Sequentially, Q3 to Q4 this year, we saw improved net sales, net income and adjusted EBITDA illustrating our resilient operating model in the more favorable Q4 mix that Brad mentioned earlier. The 19% fourth quarter increase in net sales reflects our strong orders backlog was driven by double digit percent increases for Armor, duty gear and crowd control products, in addition to the impact of recent acquisitions.

This was partially offset by project timing and our EOD products. In our distribution segment, the increase was driven by agency demand for hard goods. Gross profit margin was 39.2% for the fourth quarter, consistent with our expectation that second half 2022 margins would be similar to the strong margins we saw in the first half of 2021. We note that full year gross profit margin was 38.4% as compared to 39.9% last year. Excluding the amortization of inventory step up on the Cyalume and Radar acquisitions, full year 2022 gross profit margin was 39.3%. 2022 net income was $5.8 million as compared to net income of $12.7 million last year, primarily as a result of increased stock-based compensation expense, partially offset by an increase in net sales and the loss of on extinguishment of debt related to the August, 2021 debt refi.

Fourth quarter and full year EBITDA conversion of 93% and 94% respectively was in line with our guidance range. This is a strong indication of our ability to produce free cash flow. Turning to the next slide, we illustrate Cadre's net sales and adjusted EBITDA growth over the last three years. From 2020 through 2022, we achieved a CAGR growth rates of 6.4% and 14.3% for net sales and adjusted EBITDA respectively. Notably, our 2022 net sales and adjusted EBITDA were all time highs. Based on the midpoints of our guidance range, which I'll discuss in a moment, we expect approximately 4% annual organic growth for both full year net sales and adjusted EBITDA in 2023. Slide 14, we present our capital structure as of December 31. Our net debt was $104.4 million and we believe that our net leverage of 1.4 times provides significant financial flexibility to grow organically and more importantly, inorganically through acquisitions.

We provide our 2023 guidance on Slide 15. As we look ahead, our outlook reflects an uncertain macro environment and some downward pressure on EOD due to the natural cycle of this business. As we mentioned before, there are limited number of users of EOD products and the timing of the refresh cycles can create year-over-year swings both up and down in any given year. Our guidance reflects around $8 million of revenue headwind driven by that refresh timing. Despite this pressure, we're optimistic about that our armor and duty air products can offset this. We'll continue to push price and productivity to drive margins up and offset inflation and the mixed pressure. As we've mentioned before, our ongoing CapEx needs are about 1% of revenue, which is true for 2023, but we are also making two strategic investments that will enable future growth.

First, we're investing in and expanding our Jacksonville duty gear facility. Due to their continued growth, we have a one-time need for more space, which is exciting for us and the team. The facility hasn't seen any major investments for many years, and we currently have about three times as many people in the building today as we did five years ago. We are also making an investment in moving some of our locations to cloud ERP solutions next year. Cadre expects to generate net sales in 2023 between $463 million and $493 million and adjusted EBITDA in 2023 of between $76 million and $82 million. Additionally, we expect adjusted EBITDA conversion to be between 87% and 90% for the full year 2023. I'll now turn it back to Brad for concluding comments.

Brad Williams: Thank you, Blaine. I'd like to conclude by reiterating that 2022 is an outstanding year for Cadre, against a backdrop of persistent supply chain disruptions and inflationary pressures, our team's execution was excellent and we held our insurance positions in law enforcement, first responder and military markets. Cadre exceeded our 1% pricing growth target above inflation each quarter and generated record full year net sales and adjusted EBITDA. We are pleased to have been able to deliver on commitments we made to investors at the time of our IPO and subsequent including two accretive acquisitions completed in 2022. As we look ahead, we are confident in our business strategy and prospects and believe Cadre is ideally positioned to further enhance our leadership and providing mission-critical safety and survivability equipment.

As we seek to execute our strategic objectives and build significant value, we also continue to look for opportunity to achieve cost structure operating leverage and drive margin expansion over time. Lastly, while we have discussed the challenges of navigating the current M&A environment, we are focused on actively evaluating deals in line with our key criteria in maintaining our disciplined approach. We continue to pursue compelling opportunities and hope to have more to share later this year. With that operator, please open up the lines for Q&A.

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