Compass Diversified - CODI STOCK NEWS

Compass Diversified (CODI) has announced a quarterly cash distribution of $0.25 per share for its common shares, payable on April 27, 2023, to record holders by April 20, 2023. Additionally, the Board declared distributions for its preferred shares: $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on April 30, 2023. CODI's cash distributions are expected to generally qualify as "qualified dividends" for U.S. tax purposes. The company continues to manage a diverse portfolio of middle-market businesses, facilitating long-term growth and cash flow generation.

Compass Diversified Holdings (NYSE: CODI) announced the nomination of Ms. Nancy B. Mahon for election to its Board of Directors at the 2023 Annual Meeting scheduled for May 25, 2023. Mahon, a seasoned executive with over 17 years at Estée Lauder, is expected to contribute her expertise in ESG and governance if elected. Current director Sarah G. McCoy will not seek re-election, while Teri R. Shaffer will take over as Chair of the Audit Committee on April 1, 2023. This leadership change aims to enhance CODI's strategic direction and governance.

Compass Diversified (NYSE: CODI) reported strong financial results for the fourth quarter and full year 2022, with net sales increasing 6% to $594.9 million in Q4 and 17% to $2.3 billion for the full year. However, the company faced a net loss of $11.8 million in Q4, contrasted with a net income of $25.9 million in the previous year, attributed to a $20.6 million impairment related to the Ergobaby subsidiary. Adjusted EBITDA rose 5% to $87.3 million in Q4, while full-year Adjusted EBITDA increased 20% to $369.8 million. Looking ahead, CODI expects 2023 Adjusted EBITDA between $420 million and $460 million, and Adjusted Earnings of $105 million to $135 million.

Compass Diversified (NYSE: CODI) announced plans to release its financial results for the fourth quarter ended December 31, 2022, on March 1, 2023, after market close. The Company will hold a conference call to discuss these results at 5:00 p.m. ET on the same day. Interested participants can join the call by dialing (888) 396-8049 domestically or (416) 764-8646 internationally, with a Conference ID of 74552633. Those unable to attend can access a replay until March 8, 2023, and the webcast will be available on its Investor Relations website for 30 days.

CODI specializes in owning and managing a portfolio of middle-market businesses across various sectors, leveraging a permanent capital base for growth and stability.

Compass Diversified (NYSE: CODI) has completed the sale of its majority-owned subsidiary, Advanced Circuits, Inc., to APCT, Inc. for an enterprise value of $220 million. After adjustments, CODI received approximately $170 million in proceeds from the transaction. The sale is expected to generate a pre-tax gain of $100 million to $110 million for CODI. The net proceeds will be utilized to pay off outstanding revolving credit borrowings.

CEO Elias Sabo expressed pride in the partnership over the past sixteen years, emphasizing the value generated for shareholders. The deal was advised by Jefferies LLC and legal counsel provided by Ropes & Gray LLP.

Compass Diversified Holdings (NYSE: CODI) has authorized a share repurchase program allowing for the buyback of up to $50 million of its common shares. This initiative reflects the company's strong financial performance and operational results, with CEO Elias Sabo emphasizing confidence in CODI's future. The repurchases may occur through various means until December 31, 2023, considering market conditions and regulatory compliance. CODI's strategy involves maintaining controlling interests in middle-market businesses, enabling long-term cash flow generation and value creation.

Compass Diversified (NYSE: CODI) hosted its Investor Day in New York City on January 19, 2023, featuring presentations from CODI management and Mike Joyce, CEO of PrimaLoft. The event showcased CODI’s consumer businesses and discussed strategic initiatives, including expansion into the Healthcare vertical. CEO Elias Sabo highlighted the company's transformation and ongoing core growth. The agenda included a financial performance overview, M&A market expectations for 2023, and updates on ESG initiatives. The presentations aimed to reinforce CODI’s strong financial standing and growth opportunities across its diversified portfolio.

Compass Diversified (NYSE: CODI) has announced a definitive agreement to sell its majority-owned subsidiary, Advanced Circuits, to APCT for an enterprise value of $220 million in cash. The transaction is expected to result in a pre-tax gain of $100 million to $110 million for CODI. The sale proceeds will be utilized to pay off outstanding borrowings. This strategic move is viewed as beneficial for CODI, as it aims to strengthen financial flexibility and create shareholder value. The deal is anticipated to close in February 2023, subject to regulatory approval.

Compass Diversified (NYSE: CODI) announced a quarterly cash distribution of $0.25 per common share, payable on January 26, 2023. The Board also declared distributions for its preferred shares: $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on January 30, 2023. The distributions are expected to be classified as qualified dividends for U.S. federal income tax purposes. CODI anticipates cash distributions will exceed earnings and profits for the 2022 taxable year, benefiting certain retirement accounts.