Compass Diversified Declares Third Quarter 2022 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 common shares, payable on October 27, 2022. The record date for this payment is October 20, 2022. Additional distributions for preferred shares are also declared, with $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on October 30, 2022. These distributions generally qualify as “qualified dividends” for U.S. federal income tax, ensuring beneficial tax treatment for shareholders.

Positive

• CODI declared a quarterly cash distribution of $0.25 per share for common shares.
• Preferred shareholders will receive distributions of $0.453125 (Series A), $0.4921875 (Series B), and $0.4921875 (Series C).
• The distributions are scheduled for payment on October 30, 2022, which is a positive indication of cash flow stability.

Negative

• None.

WESTPORT, Conn., Oct. 04, 2022 (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 September 30, 2022 is payable on October 27, 2022 to all holders of record of Common Shares as of October 20, 2022.

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, 2022, up to, but excluding, October 30, 2022. The distribution for such period is payable on October 30, 2022 to all holders of record of Series A Preferred Shares as of October 15, 2022. The payment will occur on October 31, 2022, 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, 2022, up to, but excluding, October 30, 2022. The distribution for such period is payable on October 30, 2022 to all holders of record of Series B Preferred Shares as of October 15, 2022. The payment will occur on October 31, 2022, 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, 2022, up to, but excluding, October 30, 2022. The distribution for such period is payable on October 30, 2022 to all holders of record of Series C Preferred Shares as of October 15, 2022. The payment will occur on October 31, 2022, 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 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 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, CODI has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche industrial and branded consumer 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, 2021 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 cash distribution amount for Compass Diversified's common shares?

Compass Diversified announced a cash distribution of $0.25 per share for its common shares.

When will Compass Diversified's distributions be paid?

The distributions for common and preferred shares are payable on October 30, 2022.

What are the cash distributions for preferred shares of Compass Diversified?

The cash distributions for preferred shares are $0.453125 for Series A, and $0.4921875 for Series B and Series C.

What is the record date for the common share distribution of Compass Diversified?

The record date for the common share distribution is October 20, 2022.

Do the cash distributions from Compass Diversified qualify as qualified dividends?

Yes, the cash distributions generally qualify as 'qualified dividends' for U.S. federal income tax purposes.