Compass Diversified Reports Third Quarter 2024 Financial Results
Compass Diversified (NYSE: CODI) reported strong Q3 2024 financial results with net sales up 11.8% to $582.6 million. The company saw double-digit sales growth driven by Branded Consumer businesses, while Industrial businesses showed low single-digit growth. Key highlights include:
- Income from continuing operations of $31.5 million vs previous loss of $14.0 million
- Adjusted EBITDA up 28% to $114.0 million
- Adjusted Earnings increased 65% to $48.7 million
- Announced $100 million share repurchase program
- Raised 2024 outlook with expected consolidated pro-forma subsidiary Adjusted EBITDA between $510-525 million
Compass Diversified (NYSE: CODI) ha riportato risultati finanziari forti per il terzo trimestre del 2024, con vendite nette in aumento dell'11,8% a 582,6 milioni di dollari. L'azienda ha registrato una crescita delle vendite a doppia cifra trainata dalle attività di consumo a marchio, mentre le attività industriali hanno mostrato una crescita di poco inferiore al 10%. I punti salienti includono:
- Reddito dalle operazioni continuative di 31,5 milioni di dollari rispetto a una perdita precedente di 14,0 milioni di dollari
- EBITDA aggiustato in aumento del 28% a 114,0 milioni di dollari
- Utile per azione aggiustato aumentato del 65% a 48,7 milioni di dollari
- Annuncio di un programma di riacquisto di azioni da 100 milioni di dollari
- Elevata la previsione per il 2024 con un EBITDA aggiustato pro-forma consolidato delle controllate atteso tra 510 e 525 milioni di dollari
Compass Diversified (NYSE: CODI) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ventas netas que aumentaron un 11.8% a 582.6 millones de dólares. La empresa experimentó un crecimiento de ventas de dos dígitos impulsado por los negocios de consumidores de marca, mientras que los negocios industriales mostraron un crecimiento de un solo dígito bajo. Los aspectos destacados incluyen:
- Ingreso de operaciones continuas de 31.5 millones de dólares frente a una pérdida previa de 14.0 millones de dólares
- EBITDA ajustado que aumentó un 28% a 114.0 millones de dólares
- Ganancias ajustadas aumentadas un 65% a 48.7 millones de dólares
- Anuncio de un programa de recompra de acciones de 100 millones de dólares
- Aumento de la perspectiva para 2024 con un EBITDA ajustado pro-forma consolidado de subsidiarias previsto entre 510 y 525 millones de dólares
컴퍼스 다이버시파이드 (NYSE: CODI)는 2024년 3분기 강력한 재무 결과를 발표했습니다. 순매출이 11.8% 증가하여 5억 8,260만 달러에 달했습니다. 이 회사는 브랜드 소비자 사업에 의해 두 자릿수 매출 성장을 경험했으며, 산업 분야는 소수 성장에 그쳤습니다. 주요 하이라이트는 다음과 같습니다:
- 계속 운영에서의 수익 3,150만 달러 대 이전 손실 1,400만 달러
- 조정된 EBITDA 28% 증가하여 1억 1,400만 달러
- 조정된 이익 65% 증가하여 4,870만 달러
- 1억 달러 규모의 주식 매입 프로그램 발표
- 2024년 전망 상향 조정, 예상 통합 프로포르마 자회사 조정 EBITDA는 5억 1천-5억 2천 5백만 달러 사이
Compass Diversified (NYSE: CODI) a annoncé de solides résultats financiers pour le troisième trimestre de 2024, avec des ventes nettes en hausse de 11,8 % à 582,6 millions de dollars. L'entreprise a enregistré une croissance à deux chiffres, stimulée par les activités de consommation de marque, tandis que les activités industrielles ont montré une faible croissance à un chiffre. Les points forts incluent :
- Revenus des opérations continues de 31,5 millions de dollars contre une perte précédente de 14,0 millions de dollars
- EBITDA ajusté en hausse de 28 % à 114,0 millions de dollars
- Bénéfice ajusté en augmentation de 65 % à 48,7 millions de dollars
- Annonce d'un programme de rachat d'actions de 100 millions de dollars
- Perspectives 2024 rehaussées avec un EBITDA ajusté pro forma consolidé des filiales prévu entre 510 et 525 millions de dollars
Compass Diversified (NYSE: CODI) hat starke Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit einem Nettoumsatz von 582,6 Millionen Dollar, der um 11,8% gestiegen ist. Das Unternehmen verzeichnete ein zweistelliges Umsatzwachstum, das von den Markenverbrauchergeschäften angetrieben wurde, während die Industriegeschäfte ein geringes einstelliges Wachstum zeigten. Wichtige Höhepunkte sind:
- Einkommen aus fortgeführten Aktivitäten von 31,5 Millionen Dollar gegenüber einem vorherigen Verlust von 14,0 Millionen Dollar
- Bereinigtes EBITDA stieg um 28% auf 114,0 Millionen Dollar
- Bereinigte Erträge stiegen um 65% auf 48,7 Millionen Dollar
- Ankündigung eines Aktienrückkaufprogramms über 100 Millionen Dollar
- Anhebung der Prognose für 2024 mit erwartetem konsolidierten Pro-Forma-Bereich Adjusted EBITDA der Tochtergesellschaften zwischen 510-525 Millionen Dollar
- Net sales increased 11.8% to $582.6 million
- Adjusted EBITDA grew 28% to $114.0 million
- Adjusted Earnings up 65% to $48.7 million
- Branded Consumer net sales increased 9.2% to $399.2 million
- Industrial net sales grew 1.2% to $183.4 million
- Operating income improved to $70.3 million from $17.4 million YoY
- Announced $100 million share repurchase program
- Outstanding debt of $1.79 billion including term loans and senior notes
- $110 million outstanding on revolving credit facility
Insights
CODI delivered a robust Q3 2024 with significant improvements across key metrics. Net sales increased by
The company's financial position remains solid with
Management's increased guidance for 2024, projecting Adjusted EBITDA of
The strategic diversification across consumer and industrial segments is proving effective in navigating market challenges. The
The acquisition of Lifoam Industries strengthens CODI's position in the growing cold-chain packaging solutions market. The company's ability to maintain growth despite macroeconomic headwinds suggests effective execution of its middle-market investment strategy and robust operational management across its portfolio companies.
WESTPORT, Conn., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today its consolidated operating results for the three months ended September 30, 2024.
“Despite a dynamic macroeconomic environment, we had another great quarter,” said Elias Sabo, CEO of Compass Diversified. “Our differentiated business model and strong operating companies position us to create long-term value for all stakeholders. In the third quarter, we saw double-digit sales growth driven by continued demand in our Branded Consumer businesses. Our Industrial businesses are stabilizing and delivered low single-digit growth in the quarter. Given our momentum, we are raising our 2024 outlook and believe we are well positioned for growth in 2025 and beyond.”
Third Quarter 2024 Financial Summary vs. Same Year-Ago Period (where applicable)
- Net sales up
11.8% to$582.6 million and up6.6% on a pro forma basis. - Branded Consumer net sales up
9.2% on a pro forma basis to$399.2 million . - Industrial net sales up
1.2% to$183.4 million . - Income from continuing operations of
$31.5 million vs. loss from continuing operations of$14.0 million . - Net income of
$31.5 million vs. net loss of$3.8 million . - Adjusted Earnings, a non-GAAP financial measure, up
65% to$48.7 million vs.$29.6 million . - Adjusted EBITDA, a non-GAAP financial measure, was up
28% to$114.0 million vs.$89.0 million
Recent Business Highlights
- On October 24, 2024, CODI paid a third quarter 2024 cash distribution of
$0.25 per share on its common shares. - On October 16, 2024, CODI announced a
$100 million share repurchase program through December 31, 2024, subject to extension by the Company’s board. - On October 1, 2024, Altor Solutions, a subsidiary of CODI and a leading designer and manufacturer of custom protective and cold-chain packaging solutions for the industrial and life sciences markets, completed the acquisition of Lifoam Industries, a manufacturer and distributor of temperature-controlled shipping solutions.
- On August 26, 2024, CODI announced the appointment of Stephen Keller as Chief Financial Officer.
Third Quarter 2024 Financial Results
Net sales in the third quarter of 2024 were
On a pro forma basis, Branded Consumer net sales increased
Industrial net sales increased
Operating income for the third quarter of 2024 was
Income from continuing operations in the third quarter of 2024 was
Net income in the third quarter of 2024 was
Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the third quarter of 2024 increased
Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) in the third quarter of 2024 was
Liquidity and Capital Resources
As of September 30, 2024, CODI had approximately
As of September 30, 2024, the Company had no significant debt maturities until 2027 and had net borrowing availability of approximately
Third Quarter 2024 Distributions
On October 3, 2024, CODI’s board of directors declared a third quarter distribution of
The board also declared a quarterly cash distribution of
The board also declared a quarterly cash distribution of
The board also declared a quarterly cash distribution of
2024 Outlook
As a result of CODI’s strong financial performance in the third quarter, the Company is raising its Adjusted EBITDA and Adjusted Earnings outlook (see “Note Regarding Use of Non-GAAP Financial Measures” below). For the full year 2024, CODI now expects consolidated pro-forma subsidiary Adjusted EBITDA of between
Of this range, CODI now expects its Branded Consumer vertical to deliver between
CODI expects to earn Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below), which includes management fees and corporate expenses, of between
The Company further expects Adjusted Earnings to be between
In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, CODI has not reconciled 2024 subsidiary Adjusted EBITDA, 2024 Adjusted EBITDA or 2024 Adjusted Earnings to their comparable GAAP measure because it does not provide guidance on Income (Loss) from Continuing Operations or Net Income (Loss) or the applicable reconciling items as a result of the uncertainty regarding, and the potential variability of, these items. For the same reasons, CODI is unable to address the probable significance of the unavailable information, which could be material to future results.
Conference Call
In conjunction with this announcement, CODI will host a conference call on October 30, 2024, at 5:00 p.m. E.T. / 2:00 p.m. PT with the Company’s Chief Executive Officer, Elias Sabo, the Company’s Chief Financial Officer, Stephen Keller, and Pat Maciariello, the Chief Operating Officer of Compass Group Management. A live webcast of the call will be available on the Investor Relations section of CODI’s website. To access the call by phone, please go to this link (registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.
Note Regarding Use of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Earnings are non-GAAP measures used by the Company to assess its performance. We have reconciled Adjusted EBITDA to Income (Loss) from Continuing Operations and Adjusted Earnings to Net Income (Loss) on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA and Net Income (Loss) to be the most directly comparable GAAP financial measure to Adjusted Earnings. We believe that Adjusted EBITDA and Adjusted Earnings provides useful information to investors and reflect important financial measures as each excludes the effects of items which reflect the impact of long-term investment decisions, rather than the performance of near-term operations. When compared to Net Income (Loss) and Income (Loss) from Continuing Operations, Adjusted Earnings and Adjusted EBITDA, respectively, are each limited in that they do not reflect the periodic costs of certain capital assets used in generating revenues of our businesses or the non-cash charges associated with impairments, as well as certain cash charges. The presentation of Adjusted EBITDA allows investors to view the performance of our businesses in a manner similar to the methods used by us and the management of our businesses, provides additional insight into our operating results and provides a measure for evaluating targeted businesses for acquisition. The presentation of Adjusted Earnings provides insight into our operating results.
Pro forma net sales is defined as net sales including the historical net sales relating to the pre-acquisition periods of The Honey Pot Co., assuming that the Company acquired The Honey Pot Co. on January 1, 2023. We have reconciled pro forma net sales to net sales, the most directly comparable GAAP financial measure, on the attached schedules. We believe that pro forma net sales is useful information for investors as it provides a better understanding of sales performance, and relative changes thereto, on a comparable basis. Pro forma net sales is not necessarily indicative of what the actual results would have been if the acquisition had in fact occurred on the date or for the periods indicated nor does it purport to project net sales for any future periods or as of any date.
Adjusted EBITDA, Adjusted Earnings and pro forma net sales are not meant to be a substitute for GAAP measures and may be different from or otherwise inconsistent with non-GAAP financial measures used by other companies.
About Compass Diversified
Since its IPO in 2006, CODI has consistently executed 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
Certain statements in this press release may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements as to our future performance or liquidity, such as expectations regarding our results of operations and financial condition, our 2024 Subsidiary Adjusted EBITDA, our 2024 Adjusted EBITDA, our 2024 Adjusted Earnings, our pending acquisitions and divestitures, and other statements with regard to the future performance of CODI. We may use words such as “plans,” “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “seek,” “look,” and similar expressions to identify forward-looking statements. The forward-looking statements contained in this press release involve risks and uncertainties. Actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in CODI’s annual report on Form 10-K and its quarterly reports on Form 10-Q. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment, including changes in inflation and interest rates; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, war, natural disasters or social, civil and political unrest; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); environmental risks affecting the business or operations of our subsidiaries; disruption in the global supply chain, labor shortages and high labor costs; our business prospects and the prospects of our subsidiaries; the impact of, and ability to successfully complete and integrate, acquisitions that we may make; the ability to successfully complete when we’ve executed divestitures agreements; the dependence of our future success on the general economy and its impact on the industries in which we operate; the ability of our subsidiaries to achieve their objectives; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our subsidiaries; and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. Although, except as required by law, CODI undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that CODI may make directly to you or through reports that it in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
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
Compass Diversified Holdings Condensed Consolidated Balance Sheets | |||||
September 30, 2024 | December 31, 2023 | ||||
(in thousands) | (Unaudited) | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 71,948 | $ | 450,477 | |
Accounts receivable, net | 412,688 | 318,241 | |||
Inventories, net | 939,361 | 740,387 | |||
Prepaid expenses and other current assets | 100,550 | 94,715 | |||
Total current assets | 1,524,547 | 1,603,820 | |||
Property, plant and equipment, net | 186,555 | 192,562 | |||
Goodwill | 1,004,084 | 901,428 | |||
Intangible assets, net | 1,062,425 | 923,905 | |||
Other non-current assets | 183,803 | 195,266 | |||
Total assets | $ | 3,961,414 | $ | 3,816,981 | |
Liabilities and stockholders’ equity | |||||
Current liabilities | |||||
Accounts payable and accrued expenses | $ | 293,267 | $ | 250,868 | |
Due to related party | 18,116 | 16,025 | |||
Current portion, long-term debt | 12,500 | 10,000 | |||
Other current liabilities | 37,337 | 35,465 | |||
Total current liabilities | 361,220 | 312,358 | |||
Deferred income taxes | 135,777 | 120,131 | |||
Long-term debt | 1,763,687 | 1,661,879 | |||
Other non-current liabilities | 198,849 | 203,232 | |||
Total liabilities | 2,459,533 | 2,297,600 | |||
Stockholders' equity | |||||
Total stockholders' equity attributable to Holdings | 1,236,965 | 1,326,750 | |||
Noncontrolling interest | 264,916 | 192,631 | |||
Total stockholders' equity | 1,501,881 | 1,519,381 | |||
Total liabilities and stockholders’ equity | $ | 3,961,414 | $ | 3,816,981 | |
Compass Diversified Holdings Consolidated Statements of Operations (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net sales | $ | 582,623 | $ | 521,065 | $ | 1,649,508 | $ | 1,491,887 | |||||||
Cost of sales | 308,045 | 295,754 | 873,989 | 844,871 | |||||||||||
Gross profit | 274,578 | 225,311 | 775,519 | 647,016 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expense | 158,754 | 132,944 | 460,914 | 396,963 | |||||||||||
Management fees | 18,758 | 18,471 | 55,689 | 51,536 | |||||||||||
Amortization expense | 26,798 | 23,955 | 80,547 | 71,906 | |||||||||||
Impairment expense | — | 32,568 | 8,182 | 32,568 | |||||||||||
Operating income | 70,268 | 17,373 | 170,187 | 94,043 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (27,358 | ) | (27,560 | ) | (77,494 | ) | (80,353 | ) | |||||||
Amortization of debt issuance costs | (1,005 | ) | (1,005 | ) | (3,014 | ) | (3,034 | ) | |||||||
Gain (loss) on sale of Crosman | 388 | — | (24,218 | ) | — | ||||||||||
Other income (expense), net | (78 | ) | 1,045 | (4,327 | ) | 2,100 | |||||||||
Net income (loss) from continuing operations before income taxes | 42,215 | (10,147 | ) | 61,134 | 12,756 | ||||||||||
Provision for income taxes | 10,754 | 3,837 | 40,960 | 15,077 | |||||||||||
Income (loss) from continuing operations | 31,461 | (13,984 | ) | 20,174 | (2,321 | ) | |||||||||
Income from discontinued operations, net of income tax | — | 8,950 | — | 21,790 | |||||||||||
Gain on sale of discontinued operations | — | 1,274 | 3,345 | 103,495 | |||||||||||
Net income (loss) | 31,461 | (3,760 | ) | 23,519 | 122,964 | ||||||||||
Less: Net income from continuing operations attributable to noncontrolling interest | 9,397 | 5,721 | 22,632 | 13,390 | |||||||||||
Less: Net income from discontinued operations attributable to noncontrolling interest | — | 673 | — | 725 | |||||||||||
Net income (loss) attributable to Holdings | $ | 22,064 | $ | (10,154 | ) | $ | 887 | $ | 108,849 | ||||||
Amounts attributable to Holdings | |||||||||||||||
Income (loss) from continuing operations | $ | 22,064 | $ | (19,705 | ) | $ | (2,458 | ) | $ | (15,711 | ) | ||||
Income from discontinued operations | — | 8,277 | — | 21,065 | |||||||||||
Gain on sale of discontinued operations, net of income tax | — | 1,274 | 3,345 | 103,495 | |||||||||||
Net income (loss) attributable to Holdings | $ | 22,064 | $ | (10,154 | ) | $ | 887 | $ | 108,849 | ||||||
Basic income (loss) per common share attributable to Holdings | |||||||||||||||
Continuing operations | $ | 0.08 | $ | (0.45 | ) | $ | (1.18 | ) | $ | (1.00 | ) | ||||
Discontinued operations | — | 0.12 | 0.04 | 1.69 | |||||||||||
$ | 0.08 | $ | (0.33 | ) | $ | (1.14 | ) | $ | 0.69 | ||||||
Basic weighted average number of common shares outstanding | 75,645 | 71,881 | 75,437 | 71,996 | |||||||||||
Cash distributions declared per Trust common share | $ | 0.25 | $ | 0.25 | $ | 0.75 | $ | 0.75 | |||||||
Compass Diversified Holdings Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income (loss) | $ | 31,461 | $ | (3,760 | ) | $ | 23,519 | $ | 122,964 | ||||||
Income from discontinued operations, net of tax | — | 8,950 | — | 21,790 | |||||||||||
Gain on sale of discontinued operations, net of tax | — | 1,274 | 3,345 | 103,495 | |||||||||||
Net income (loss) from continuing operations | $ | 31,461 | $ | (13,984 | ) | $ | 20,174 | $ | (2,321 | ) | |||||
Less: income from continuing operations attributable to noncontrolling interest | 9,397 | 5,721 | 22,632 | 13,390 | |||||||||||
Net income (loss) attributable to Holdings - continuing operations | $ | 22,064 | $ | (19,705 | ) | $ | (2,458 | ) | $ | (15,711 | ) | ||||
Adjustments: | |||||||||||||||
Distributions paid - preferred shares | (6,345 | ) | (6,045 | ) | (18,491 | ) | (18,136 | ) | |||||||
Amortization expense - intangibles and inventory step up | 26,798 | 23,956 | 84,553 | 73,081 | |||||||||||
Impairment expense | — | 32,568 | 8,182 | 32,568 | |||||||||||
Tax effect - impairment expense | — | (4,308 | ) | — | (4,308 | ) | |||||||||
(Gain) loss on sale of Crosman | (388 | ) | — | 24,218 | — | ||||||||||
Tax effect - loss on sale of Crosman | — | — | 7,254 | — | |||||||||||
Stock compensation | 4,769 | 2,750 | 13,026 | 7,598 | |||||||||||
Acquisition expenses | — | — | 3,479 | — | |||||||||||
Integration services fee | 875 | — | 1,750 | 2,375 | |||||||||||
Other | 963 | 349 | 1,368 | 1,129 | |||||||||||
Adjusted Earnings | $ | 48,736 | $ | 29,565 | $ | 122,881 | $ | 78,596 | |||||||
Plus (less): | |||||||||||||||
Depreciation expense | 10,366 | 11,994 | 31,763 | 35,255 | |||||||||||
Income tax provision | 10,754 | 3,837 | 40,960 | 15,077 | |||||||||||
Interest expense | 27,357 | 27,560 | 77,494 | 80,353 | |||||||||||
Amortization of debt issuance costs | 1,005 | 1,005 | 3,014 | 3,034 | |||||||||||
Tax effect - loss on sale of Crosman | — | (7,254 | ) | — | |||||||||||
Income from continuing operations attributable to noncontrolling interest | 9,397 | 5,721 | 22,632 | 13,390 | |||||||||||
Distributions paid - preferred shares | 6,345 | 6,045 | 18,491 | 18,136 | |||||||||||
Other (income) expense | 79 | (1,045 | ) | 4,327 | (2,100 | ) | |||||||||
Adjusted EBITDA | $ | 114,039 | $ | 88,990 | $ | 314,308 | $ | 246,049 | |||||||
Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended September 30, 2024 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (8,715 | ) | $ | 9,737 | $ | 3,902 | $ | (3,229 | ) | $ | 24,272 | $ | (4,273 | ) | $ | (160 | ) | $ | 1,831 | $ | 2,682 | $ | 2,260 | $ | 3,154 | $ | 31,461 | ||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | 1,782 | 1,451 | 136 | 8,342 | (2,315 | ) | (20 | ) | (2,223 | ) | 1,466 | 1,196 | 939 | 10,754 | |||||||||||||||||||||||||||||||
Interest expense, net | 27,238 | (2 | ) | (4 | ) | — | — | (10 | ) | (3 | ) | (1 | ) | — | 139 | — | 27,357 | |||||||||||||||||||||||||||||
Intercompany interest | (41,375 | ) | 3,334 | 4,925 | 2,116 | 15,080 | 4,480 | 2,907 | 2,038 | 1,735 | 1,816 | 2,944 | — | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 118 | 5,617 | 5,402 | 2,053 | 2,699 | 5,337 | 4,166 | 1,397 | 4,080 | 2,340 | 4,960 | 38,169 | ||||||||||||||||||||||||||||||||||
EBITDA | (22,734 | ) | 20,468 | 15,676 | 1,076 | 50,393 | 3,219 | 6,890 | 3,042 | 9,963 | 7,751 | 11,997 | 107,741 | |||||||||||||||||||||||||||||||||
Other (income) expense | — | 13 | (110 | ) | 17 | (68 | ) | 1 | 25 | (164 | ) | 58 | — | (81 | ) | (309 | ) | |||||||||||||||||||||||||||||
Noncontrolling shareholder compensation | — | 544 | 1,504 | 232 | 459 | 828 | 540 | 186 | 237 | 4 | 235 | 4,769 | ||||||||||||||||||||||||||||||||||
Integration services fee | — | — | — | — | — | — | 875 | — | — | — | — | 875 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | 880 | 83 | 963 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (22,734 | ) | $ | 21,025 | $ | 17,070 | $ | 1,325 | $ | 50,784 | $ | 4,048 | $ | 8,330 | $ | 3,064 | $ | 10,258 | $ | 8,635 | $ | 12,234 | $ | 114,039 | |||||||||||||||||||||
Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (13,750 | ) | $ | 5,834 | $ | 4,257 | $ | (261 | ) | $ | 14,584 | $ | (4,893 | ) | $ | (28,881 | ) | $ | 5,042 | $ | 2,103 | $ | 1,981 | $ | (13,984 | ) | |||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | 1,920 | 865 | (620 | ) | 4,210 | (2,566 | ) | (2,951 | ) | 1,460 | 876 | 643 | 3,837 | ||||||||||||||||||||||||||||
Interest expense, net | 27,525 | (2 | ) | (4 | ) | — | — | (3 | ) | 38 | — | 6 | — | 27,560 | ||||||||||||||||||||||||||||
Intercompany interest | (34,708 | ) | 5,477 | 1,571 | 2,144 | 8,930 | 4,635 | 3,633 | 2,549 | 1,706 | 4,063 | — | ||||||||||||||||||||||||||||||
Depreciation and amortization | 380 | 6,573 | 5,930 | 2,033 | 2,081 | 5,361 | 3,272 | 4,215 | 2,126 | 4,984 | 36,955 | |||||||||||||||||||||||||||||||
EBITDA | (20,553 | ) | 19,802 | 12,619 | 3,296 | 29,805 | 2,534 | (24,889 | ) | 13,266 | 6,817 | 11,671 | 54,368 | |||||||||||||||||||||||||||||
Other (income) expense | — | 98 | (63 | ) | — | 71 | (9 | ) | (425 | ) | (362 | ) | 8 | (363 | ) | (1,045 | ) | |||||||||||||||||||||||||
Noncontrolling shareholder compensation | — | 258 | 736 | 312 | 472 | 262 | 228 | 234 | 8 | 240 | 2,750 | |||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | 32,568 | — | — | — | 32,568 | |||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | 349 | 349 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (20,553 | ) | $ | 20,158 | $ | 13,292 | $ | 3,608 | $ | 30,348 | $ | 2,787 | $ | 7,482 | $ | 13,138 | $ | 6,833 | $ | 11,897 | $ | 88,990 | |||||||||||||||||||
Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine Months Ended September 30, 2024 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (21,151 | ) | $ | 18,594 | $ | 16,248 | $ | (6,337 | ) | $ | 59,257 | $ | (5,261 | ) | $ | (7,764 | ) | $ | (53,368 | ) | $ | 6,076 | $ | 6,169 | $ | 7,711 | $ | 20,174 | |||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | 4,792 | 3,920 | 516 | 20,010 | (1,731 | ) | (2,589 | ) | 7,074 | 3,192 | 3,182 | 2,594 | 40,960 | ||||||||||||||||||||||||||||||||
Interest expense, net | 77,280 | (3 | ) | (16 | ) | — | 3 | (15 | ) | (28 | ) | 53 | — | 220 | — | 77,494 | ||||||||||||||||||||||||||||||
Intercompany interest | (122,209 | ) | 10,114 | 15,716 | 6,364 | 40,417 | 13,526 | 7,827 | 7,620 | 5,612 | 5,313 | 9,700 | — | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 552 | 17,198 | 16,251 | 6,427 | 7,571 | 15,987 | 14,811 | 6,679 | 12,250 | 6,754 | 14,850 | 119,330 | ||||||||||||||||||||||||||||||||||
EBITDA | (65,528 | ) | 50,695 | 52,119 | 6,970 | 127,258 | 22,506 | 12,257 | (31,942 | ) | 27,130 | 21,638 | 34,855 | 257,958 | ||||||||||||||||||||||||||||||||
Other (income) expense | 462 | 86 | 22 | 12 | (61 | ) | 5 | (5 | ) | 25,734 | 2,722 | (9 | ) | (423 | ) | 28,545 | ||||||||||||||||||||||||||||||
Non-controlling shareholder compensation | — | 1,630 | 4,352 | 738 | 1,662 | 1,823 | 1,157 | 556 | 741 | 13 | 354 | 13,026 | ||||||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | — | 8,182 | — | — | — | 8,182 | ||||||||||||||||||||||||||||||||||
Acquisition expenses | — | — | — | — | — | — | 3,479 | — | — | — | — | 3,479 | ||||||||||||||||||||||||||||||||||
Integration services fee | — | — | — | — | — | — | 1,750 | — | — | — | — | 1,750 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | 90 | — | — | 880 | 398 | 1,368 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (65,066 | ) | $ | 52,411 | $ | 56,493 | $ | 7,720 | $ | 128,859 | $ | 24,334 | $ | 18,728 | $ | 2,530 | $ | 30,593 | $ | 22,522 | $ | 35,184 | $ | 314,308 | |||||||||||||||||||||
Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine Months Ended September 30, 2023 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (40,914 | ) | $ | 11,850 | $ | 15,151 | $ | (1,114 | ) | $ | 31,468 | $ | (5,500 | ) | $ | (36,862 | ) | $ | 12,244 | $ | 6,911 | $ | 4,445 | $ | (2,321 | ) | ||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | 3,990 | 2,224 | (1,272 | ) | 10,295 | (3,125 | ) | (5,905 | ) | 4,094 | 3,264 | 1,512 | 15,077 | |||||||||||||||||||||||||||||
Interest expense, net | 80,123 | (4 | ) | (9 | ) | — | 4 | (9 | ) | 232 | — | 16 | — | 80,353 | |||||||||||||||||||||||||||||
Intercompany interest | (99,433 | ) | 15,698 | 5,032 | 6,484 | 22,660 | 13,343 | 10,070 | 8,183 | 5,078 | 12,885 | — | |||||||||||||||||||||||||||||||
Depreciation and amortization | 1,056 | 19,866 | 17,436 | 6,112 | 6,971 | 16,084 | 10,023 | 12,558 | 6,248 | 15,016 | 111,370 | ||||||||||||||||||||||||||||||||
EBITDA | (59,168 | ) | 51,400 | 39,834 | 10,210 | 71,398 | 20,793 | (22,442 | ) | 37,079 | 21,517 | 33,858 | 204,479 | ||||||||||||||||||||||||||||||
Other (income) expense | (128 | ) | (103 | ) | 117 | 29 | (5 | ) | 130 | (1,179 | ) | 201 | (1 | ) | (1,161 | ) | (2,100 | ) | |||||||||||||||||||||||||
Non-controlling shareholder compensation | — | 988 | 2,069 | 936 | 1,312 | 219 | 686 | 800 | 26 | 562 | 7,598 | ||||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | 32,568 | — | — | — | 32,568 | ||||||||||||||||||||||||||||||||
Integration services fee | — | — | — | — | — | 2,375 | — | — | — | — | 2,375 | ||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | 1,129 | 1,129 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (59,296 | ) | $ | 52,285 | $ | 42,020 | $ | 11,175 | $ | 72,705 | $ | 23,517 | $ | 9,633 | $ | 38,080 | $ | 21,542 | $ | 34,388 | $ | 246,049 | ||||||||||||||||||||
Compass Diversified Holdings Non-GAAP Adjusted EBITDA (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Branded Consumer | |||||||||||||||
5.11 | $ | 21,025 | $ | 20,158 | $ | 52,411 | $ | 52,285 | |||||||
BOA | 17,070 | 13,292 | 56,493 | 42,020 | |||||||||||
Ergobaby | 1,325 | 3,608 | 7,720 | 11,175 | |||||||||||
Lugano | 50,784 | 30,348 | 128,859 | 72,705 | |||||||||||
PrimaLoft | 4,048 | 2,787 | 24,334 | 23,517 | |||||||||||
The Honey Pot Co.(1) | 8,330 | — | 18,728 | — | |||||||||||
Velocity Outdoor | 3,064 | 7,482 | 2,530 | 9,633 | |||||||||||
Total Branded Consumer | $ | 105,646 | $ | 77,675 | $ | 291,075 | $ | 211,335 | |||||||
Niche Industrial | |||||||||||||||
Altor Solutions | 10,258 | 13,138 | 30,593 | 38,080 | |||||||||||
Arnold Magnetics | 8,635 | 6,833 | 22,522 | 21,542 | |||||||||||
Sterno | 12,234 | 11,897 | 35,184 | 34,388 | |||||||||||
Total Niche Industrial | $ | 31,127 | $ | 31,868 | $ | 88,299 | $ | 94,010 | |||||||
Corporate expense | (22,734 | ) | (20,553 | ) | (65,066 | ) | (59,296 | ) | |||||||
Total Adjusted EBITDA | $ | 114,039 | $ | 88,990 | $ | 314,308 | $ | 246,049 |
(1) The above results for The Honey Pot Co. do not include management's estimate of Adjusted EBITDA, before the Company's ownership of
Compass Diversified Holdings Net Sales to Pro Forma Net Sales Reconciliation (unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
Net Sales | $ | 582,623 | $ | 521,065 | $ | 1,649,508 | $ | 1,491,887 | |||
Acquisitions(1) | — | 25,560 | 10,671 | 82,447 | |||||||
Pro Forma Net Sales | $ | 582,623 | $ | 546,625 | $ | 1,660,179 | $ | 1,574,334 |
(1) Acquisitions reflects the net sales for The Honey Pot Co. on a pro forma basis as if the Company had acquired The Honey Pot Co. on January 1, 2023.
Compass Diversified Holdings Subsidiary Pro Forma Net Sales (unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
Branded Consumer | |||||||||||
5.11 | $ | 139,218 | $ | 135,213 | $ | 387,393 | $ | 385,695 | |||
BOA | 45,607 | 37,281 | 142,670 | 113,390 | |||||||
Ergobaby | 21,755 | 23,218 | 71,530 | 71,785 | |||||||
Lugano | 118,584 | 78,735 | 320,981 | 203,571 | |||||||
PrimaLoft | 13,686 | 10,930 | 61,518 | 57,619 | |||||||
The Honey Pot(1) | 31,545 | 25,560 | 86,563 | 82,447 | |||||||
Velocity Outdoor | 28,809 | 54,469 | 77,419 | 126,348 | |||||||
Total Branded Consumer | $ | 399,204 | $ | 365,406 | $ | 1,148,074 | $ | 1,040,855 | |||
Niche Industrial | |||||||||||
Altor Solutions | 52,129 | 59,215 | 157,746 | 181,613 | |||||||
Arnold Magnetics | 46,103 | 41,819 | 130,545 | 122,047 | |||||||
Sterno | 85,187 | 80,185 | 223,814 | 229,819 | |||||||
Total Niche Industrial | $ | 183,419 | $ | 181,219 | $ | 512,105 | $ | 533,479 | |||
Total Subsidiary Net Sales | $ | 582,623 | $ | 546,625 | $ | 1,660,179 | $ | 1,574,334 |
(1) Net sales for The Honey Pot Co. are pro forma as if the Company had acquired this business on January 1, 2023.
Compass Diversified Holdings Condensed Consolidated Cash Flows (unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net cash provided by (used in) operating activities | $ | (29,227 | ) | $ | 19,713 | $ | (77,610 | ) | $ | 56,952 | |||||
Net cash provided by (used in) investing activities | (16,177 | ) | (13,538 | ) | (352,251 | ) | 104,291 | ||||||||
Net cash provided by (used in) financing activities | 47,516 | (8,308 | ) | 50,882 | (157,927 | ) | |||||||||
Foreign currency impact on cash | 1,466 | (484 | ) | 449 | 150 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 3,578 | (2,617 | ) | (378,530 | ) | 3,466 | |||||||||
Cash and cash equivalents - beginning of the period(1) | 68,370 | 67,354 | 450,478 | 61,271 | |||||||||||
Cash and cash equivalents - end of the period(2) | $ | 71,948 | $ | 64,737 | $ | 71,948 | $ | 64,737 |
(1) Includes cash from discontinued operations of
(2) Includes cash from discontinued operations of
Compass Diversified Holding | |||||||||||||||
Selected Financial Data - Cash Flows | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Changes in operating assets and liabilities | $ | (99,778 | ) | $ | (36,806 | ) | $ | (253,902 | ) | $ | (128,920 | ) | |||
Purchases of property and equipment | $ | (15,588 | ) | $ | (9,933 | ) | $ | (34,507 | ) | $ | (38,537 | ) | |||
Distributions paid - common shares | $ | (18,913 | ) | $ | (17,974 | ) | $ | (56,577 | ) | $ | (54,012 | ) | |||
Distributions paid - preferred shares | $ | (6,345 | ) | $ | (6,045 | ) | $ | (18,491 | ) | $ | (18,136 | ) |
FAQ
What was Compass Diversified's (CODI) revenue growth in Q3 2024?
How much was CODI's Adjusted EBITDA in Q3 2024?
What is CODI's 2024 Adjusted EBITDA guidance?