Compass Diversified Declares Second Quarter 2024 Distributions on Common and Series A, B and C Preferred Shares

Rhea-AI Summary

Compass Diversified (NYSE: CODI) announced a quarterly cash distribution for Q2 2024 on its common and preferred shares. Common shareholders will receive $0.25 per share, payable on July 25, 2024, to holders of record as of July 18, 2024.

Series A Preferred shareholders will receive $0.453125 per share, Series B Preferred shareholders will receive $0.4921875 per share, and Series C Preferred shareholders will also receive $0.4921875 per share. These distributions are payable on July 30, 2024, to holders of record as of July 15, 2024.

CASH distributions are generally expected to be qualified dividends for U.S. federal income tax purposes, with the final tax status reported in early 2025.

Positive

• Declared quarterly cash distribution of $0.25 per common share.
• Declared quarterly cash distribution of $0.453125 per Series A Preferred share.
• Declared quarterly cash distribution of $0.4921875 per Series B and C Preferred shares.

Negative

• Final tax status of 2024 distributions is uncertain and will only be determined in early 2025.

WESTPORT, Conn., July 02, 2024 (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 June 30, 2024, is payable on July 25, 2024, to all holders of record of Common Shares as of July 18, 2024.

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, April 30, 2024, up to, but excluding, July 30, 2024. The distribution for such period is payable on July 30, 2024, to all holders of record of Series A Preferred Shares as of July 15, 2024.

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, April 30, 2024, up to, but excluding, July 30, 2024. The distribution for such period is payable on July 30, 2024, to all holders of record of Series B Preferred Shares as of July 15, 2024.

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, April 30, 2024, up to, but excluding, July 30, 2024. The distribution for such period is payable on July 30, 2024, to all holders of record of Series C Preferred Shares as of July 15, 2024.

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.

CODI anticipates, but is not certain, that all 2024 distributions will be treated as qualified dividends, provided that the requisite holding periods are met. The final tax status of such amounts will be made and reported to shareholders in early 2025, when the determination of earnings and profits for the 2024 year is completed. The final tax status of the 2024 distributions may differ from this preliminary expectation.

About Compass Diversified (“CODI”)

Since its 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 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, 2023 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@gateway-grp.com

Media Relations
Compass Diversified
mediainquiry@compassdiversified.com

The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com

FAQ

What is the dividend for Compass Diversified common shares for Q2 2024?

Compass Diversified declared a quarterly cash distribution of $0.25 per common share for Q2 2024, payable on July 25, 2024.

When are the dividends payable for CODI preferred shares?

The quarterly cash distributions for Series A, B, and C Preferred shares are payable on July 30, 2024.

What are the dividend amounts for Compass Diversified's preferred shares?

Series A Preferred shares will receive $0.453125 per share, while Series B and C Preferred shares will each receive $0.4921875 per share.

What is the record date for CODI's common shares dividend for Q2 2024?

The record date for CODI's common shares dividend for Q2 2024 is July 18, 2024.

What tax status are CODI’s 2024 distributions expected to have?

CODI anticipates that all 2024 distributions will be treated as qualified dividends, but the final tax status will be determined and reported to shareholders in early 2025.