Compass Diversified - CODI STOCK NEWS

Compass Diversified (CODI) reported a 22% increase in net sales for Q3 2022, reaching $597.6 million, driven by strong performance in branded consumer and niche industrial segments. Operating income rose 16% to $48.7 million, while adjusted earnings increased 28% to $46.0 million. However, net income fell significantly to $2.6 million compared to $90.2 million in Q3 2021, due to a one-time gain last year. The company also raised its full-year outlook for adjusted EBITDA to $460-$470 million.

Kurt Roth has been appointed as Partner and Head of Healthcare at Compass Diversified (NYSE: CODI) as part of the company's expansion into a new healthcare vertical. CEO Elias Sabo emphasized the importance of leadership in launching this segment, identifying healthcare as a high-growth sector with strong barriers to entry. Roth, formerly of Sotera Health Company, brings 25 years of strategic planning and deal-making expertise. CODI aims to leverage healthcare's growth potential to enhance its existing subsidiary capabilities, aligning with its long-term value creation strategy.

Compass Diversified (CODI) plans to release its third-quarter financial results for the period ending September 30, 2022, on November 3, 2022, after market close. A conference call is scheduled for the same day at 5:00 p.m. ET, where management will discuss the results. Participants can join by calling either (888) 396-8049 or (416) 764-8646 and entering Conference ID 66435663. The call will also be available via live webcast. A replay will be accessible until November 10, 2022.

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.

Sterno has launched the Bring the Heat campaign, recognizing the efforts of foodservice employees adapting to industry challenges. Nominations are open until October 28, 2022, for employees demonstrating leadership and customer service excellence. The winner will receive a $5,000 honorarium and a commemorative plaque. The foodservice sector is projected to rebound, reaching $898 billion in sales and adding 400,000 jobs in 2023. Craig Carnes, CEO of Sterno, emphasizes the resilience of these unsung heroes during recovery.

On September 15, 2022, 5.11 Tactical, a subsidiary of Compass Diversified (CODI), announced the grand opening of its 100^th retail store in Oxnard, California, scheduled for September 17, 2022. CEO Francisco J. Morales highlighted the milestone as a significant achievement in their retail strategy, which has expanded their customer engagement. Since partnering with CODI in 2016, 5.11 has experienced substantial revenue growth, achieving a 9% CAGR in revenue and a 23% CAGR in adjusted EBITDA from 2018 to 2021, aided by over $70 million in growth capital investment.

Compass Diversified (CODI) reported a 19% increase in net sales to $515.6 million in Q2 2022, marking its sixth consecutive quarter of record performance. Gross profit surged 38% to $50.3 million, and net income climbed to $31.0 million, a significant turnaround from a $11.3 million loss a year earlier. The company announced its acquisition of PrimaLoft and raised its full-year Adjusted EBITDA outlook to between $445 million and $470 million. CODI also declared a cash distribution of $0.25 per share, reflecting strong shareholder returns amidst macroeconomic challenges.

Compass Diversified (NYSE: CODI) announced the termination of the Merger Agreement with Tempo Automation, originally established on October 13, 2021, for the sale of its subsidiary, Advanced Circuits. This decision comes amid ongoing delays in a separate SPAC transaction that would have facilitated the merger. CEO Elias Sabo expressed confidence in Advanced Circuits' future and its performance under CODI's ownership, indicating potential value growth for shareholders.

Compass Diversified (CODI) will release its second-quarter financial results on August 3, 2022, after market close. A conference call to discuss the results is scheduled for 5:00 p.m. ET on the same day. Participants can join via phone or access a live webcast on CODI's investor relations website. The company has a history of managing a diverse portfolio of middle-market businesses, aiming for long-term growth through a disciplined approach. For those unable to attend live, a replay will be available until August 10, 2022.