Compass Diversified Declares First Quarter 2023 Distributions on Common and Series A, B and C Preferred Shares

Rhea-AI Summary

Compass Diversified (CODI) has announced a quarterly cash distribution of $0.25 per share for its common shares, payable on April 27, 2023, to record holders by April 20, 2023. Additionally, the Board declared distributions for its preferred shares: $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on April 30, 2023. CODI's cash distributions are expected to generally qualify as "qualified dividends" for U.S. tax purposes. The company continues to manage a diverse portfolio of middle-market businesses, facilitating long-term growth and cash flow generation.

Positive

• Quarterly cash distribution of $0.25 per common share.
• Preferred shares receive distributions of $0.453125 (Series A), $0.4921875 (Series B), and $0.4921875 (Series C).
• Distributions likely qualify as "qualified dividends" for U.S. tax purposes.

Negative

• None.

WESTPORT, Conn., April 03, 2023 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today that its Board of Directors (the “Board”) has declared a quarterly cash distribution of $0.25 per share on the Company’s common shares (the “Common Shares”). The distribution for the three months ended March 31, 2023 is payable on April 27, 2023 to all holders of record of Common Shares as of April 20, 2023.

The Board also declared a quarterly cash distribution of $0.453125 per share on the Company’s 7.250% Series A Preferred Shares (the “Series A Preferred Shares”). The distribution on the Series A Preferred Shares covers the period from, and including, January 30, 2023, up to, but excluding, April 30, 2023. The distribution for such period is payable on April 30, 2023 to all holders of record of Series A Preferred Shares as of April 15, 2023. The payment will occur on May 1, 2023, the next business day following the payment date.

The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series B Preferred Shares (the “Series B Preferred Shares”). The distribution on the Series B Preferred Shares covers the period from, and including, January 30, 2023, up to, but excluding, April 30, 2023. The distribution for such period is payable on April 30, 2023 to all holders of record of Series B Preferred Shares as of April 15, 2023. The payment will occur on May 1, 2023, the next business day following the payment date.

The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series C Preferred Shares (the “Series C Preferred Shares”). The distribution on the Series C Preferred Shares covers the period from, and including, January 30, 2023, up to, but excluding, April 30, 2023. The distribution for such period is payable on April 30, 2023 to all holders of record of Series C Preferred Shares as of April 15, 2023. The payment will occur on May 1, 2023, the next business day following the payment date.

CODI’s common and preferred cash distributions should generally constitute “qualified dividends” for U.S. federal income tax purposes to the extent they are paid from “earnings and profits” (as determined under U.S. federal income tax principles), provided that the requisite holding period is met. To the extent that the amount of the cash distributions exceeds earnings and profits, such distribution will first be treated as a non-taxable return of capital to the extent of the holder’s adjusted tax basis in the shares, and thereafter be treated as a capital gain from the sale or exchange of such shares. In addition, shareholders subject to tax rules regarding “unrelated business taxable income” (or “UBTI”) will no longer be allocated UBTI from CODI, allowing ownership by certain retirement accounts that previously created tax implications.

About Compass Diversified (“CODI”)

Since its founding in 1998, and IPO in 2006, CODI has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche industrial, branded consumer and healthcare sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit compassdiversified.com.

Forward Looking Statements
This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI and its subsidiaries. Words such as "believes," "expects," and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the risk factor discussion in the Form 10-K filed by CODI with the SEC for the year ended December 31, 2022 and in other filings with the SEC. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations
Compass Diversified
irinquiry@compassdiversified.com

Gateway Group
Cody Slach
949.574.3860
CODI@gatewayir.com

Media Relations
The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com

FAQ

What is the recent cash distribution by Compass Diversified (CODI)?

Compass Diversified declared a cash distribution of $0.25 per share for its common shares, payable on April 27, 2023.

When will the distributions for preferred shares of CODI be paid?

The distributions for Series A, B, and C preferred shares will be paid on April 30, 2023.

What are the amounts for the preferred share distributions by CODI?

The amounts declared are $0.453125 for Series A, and $0.4921875 for both Series B and C.

How does the cash distribution impact tax for CODI shareholders?

The cash distributions are expected to generally qualify as "qualified dividends" for U.S. federal income tax purposes.