Compass Diversified Declares Third Quarter 2021 Distributions on Common and Series A, B and C Preferred Shares

Rhea-AI Summary

Compass Diversified (CODI) has declared a quarterly cash distribution of $0.36 per common share, payable on October 22, 2021. This marks the first distribution following the company's transition to a corporate structure, enhancing its capital efficiency and shareholder value.

Additionally, distributions were announced for preferred shares: $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on November 1, 2021. The company's strategy aims to leverage its permanent capital to drive sustained cash flow.

Positive

• Declared a quarterly cash distribution of $0.36 per common share.
• First distribution after transitioning to a corporate structure.
• Lowered cost of capital expected to unlock substantial shareholder value.

Negative

• None.

WESTPORT, Conn., Oct. 05, 2021 (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, 2021 is payable on October 22, 2021 to all holders of record of Common Shares as of October 15, 2021.

“Following our transition to be treated as a corporation and simplifying our tax structure last month, we are excited to mark the first time CODI will pay common and preferred cash distributions, which to the extent of earnings and profits, will be qualified dividends,” said Elias Sabo, CEO of CODI. “With a significantly lower cost of capital and a number of other tangible benefits, we are confident this was the right step for the company to unlock substantial value for our shareholders. We look forward to continuing to leverage our permanent capital structure to drive long term shareholder value.”

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, 2021, up to, but excluding, October 30, 2021. The distribution for such period is payable on October 30, 2021 to all holders of record of Series A Preferred Shares as of October 15, 2021. The payment will occur on November 1, 2021, 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, July 30, 2021, up to, but excluding, October 30, 2021. The distribution for such period is payable on October 30, 2021 to all holders of record of Series A Preferred Shares as of October 15, 2021. The payment will occur on November 1, 2021, 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, July 30, 2021, up to, but excluding, October 30, 2021. The distribution for such period is payable on October 30, 2021 to all holders of record of Series A Preferred Shares as of October 15, 2021. The payment will occur on November 1, 2021, the next Business Day following the payment date.

About Compass Diversified (“CODI”)
CODI owns and manages a diverse set of highly defensible North American middle market businesses. Each of its current subsidiaries is a leader in its niche market. For more information, visit compassdiversified.com.

Leveraging its permanent capital base, long-term disciplined approach and actionable expertise, CODI maintains 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.

Our ten 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 design and manufacture of custom packaging, insulation and componentry (Altor Solutions);
  
  
• The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
  
  
• The design and marketing of dial-based fit systems that deliver performance fit across footwear, headwear and medical bracing products (BOA Technology);
  
  
• The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
  
  
• The design, manufacture, and marketing of high-end, one-of-a kind jewelry (Lugano Diamonds);
  
  
• 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).
  

Forward Looking Statements

This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI. Words such as “believes,” “seek,” “expects,” “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, 2020 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 / Kate Thompson / Lyle Weston 212-355-4449

 

FAQ

What is the CODI quarterly cash distribution amount for October 2021?

Compass Diversified (CODI) declared a quarterly cash distribution of $0.36 per common share.

When will the CODI cash distribution be paid?

The distribution will be payable on October 22, 2021, to shareholders of record as of October 15, 2021.

What are the preferred share distributions declared by CODI?

CODI declared $0.453125 for Series A, and $0.4921875 for both Series B and Series C preferred shares.

When is the payment date for CODI preferred shares?

The payment for preferred shares will occur on November 1, 2021.

What does the transition to a corporate structure mean for CODI?

The transition allows CODI to improve its cost of capital and aims to create long-term shareholder value.