Compass Diversified Declares Third Quarter 2020 Distributions on Common and Series A, B and C Preferred Shares

Rhea-AI Summary

Compass Diversified (NYSE: CODI) announced a quarterly cash distribution of $0.36 per share on its common shares, marking the 39th consecutive quarter of such distributions. This payment is due on October 22, 2020, for shareholders recorded by October 15, 2020. Additionally, the company declared distributions of $0.453125 per Series A Preferred Share, and $0.4921875 per Series B and C Preferred Shares, all payable on October 30, 2020. CEO Elias Sabo highlighted the company's resilience amidst the COVID-19 pandemic and its successful business model.

Positive

• Sustained quarterly distribution of $0.36 per common share for the 39th consecutive quarter.
• Distributions on preferred shares showcasing strong cash flow generation.
• Positive remarks from the CEO about the company’s resilience during the pandemic.

Negative

• None.

WESTPORT, Conn., Oct. 01, 2020 (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 $0.36 per share on the Company’s common shares (the “Common Shares”). The distribution for the three months ended September 30, 2020 is payable on October 22, 2020 to all holders of record of Common Shares as of October 15, 2020.

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, July 30, 2020, up to, but excluding, October 30, 2020. The distribution for such period is payable on October 30, 2020 to all holders of record of Series A Preferred Shares as of October 15, 2020.

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, July 30, 2020, up to, but excluding, October 30, 2020. The distribution for such period is payable on October 30, 2020 to all holders of record of Series B Preferred Shares as of October 15, 2020.

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, July 30, 2020, up to, but excluding, October 30, 2020. The distribution for such period is payable on October 30, 2020 to all holders of record of Series C Preferred Shares as of October 15, 2020.

“We are pleased that our Board declared a quarterly cash distribution of $0.36 per share on our Common Shares for the 39th consecutive quarter, as well as distributions on our Series A, B and C Preferred Shares,” said Elias Sabo, CEO of Compass Diversified. “Our ability to pay sizable distributions to shareholders every quarter as a publicly listed company, especially amidst the COVID-19 pandemic, is a differentiator in the market and underscores the advantages of our business model. We continue to showcase how our unique permanent capital structure allows us to make compelling acquisitions as evidenced by the recent BOA announcement, and our focus on working with top-tier management teams across highly diversified businesses has positioned us to consistently drive strong subsidiary performance and long-term value for our shareholders.”

About Compass Diversified (“CODI”)
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.

CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long-term cash flow generation and value. 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 to make cash distributions to its shareholders.

Our nine majority-owned subsidiaries are engaged in the following lines of business:

• The design and marketing of purpose-built technical apparel and gear serving a wide range of global customers (5.11);
  
  
• The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
  
  
• The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
  
  
• The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
  
  
• The design and manufacture of custom molded protective foam solutions and OE components (Foam Fabricators);
  
  
• The design and manufacture of premium home and gun safes (Liberty Safe);
  
  
• The design and manufacture of baseball and softball equipment and apparel (Marucci Sports);
  
  
• The manufacture and marketing of portable food warming systems used in the foodservice industry, creative indoor and outdoor lighting, and home fragrance solutions for the consumer markets (Sterno); and
  
  
• The design, manufacture and marketing of airguns, archery products, optics and related accessories (Velocity Outdoor).
  

This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI. Words such as "believes," "expects," “anticipates,” “estimate,” "projects," 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, 2019, and 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: The IGB Group Leon Berman 212.477.8438 lberman@igbir.com

Media Contact: Joele Frank, Wilkinson Brimmer Katcher Jon Keehner / Julie Oakes / Kate Thompson 212-355-4449

FAQ

What is the cash distribution declared by Compass Diversified for common shares?

Compass Diversified has declared a quarterly cash distribution of $0.36 per common share.

When will the cash distribution for common shares be paid?

The cash distribution for common shares will be paid on October 22, 2020.

What is the dividend amount for Series A Preferred Shares?

The Series A Preferred Shares will receive a distribution of $0.453125 per share.

When will the preferred shares distributions be paid?

Distributions on the preferred shares will be payable on October 30, 2020.

How long has Compass Diversified been making cash distributions to shareholders?

Compass Diversified has made cash distributions to shareholders for 39 consecutive quarters.