CODI - Compass Diversified Reports Fourth Quarter and Full Year 2023 Financial Results
WESTPORT, Conn., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market branded consumer and industrial businesses, announced today its consolidated operating results for the three and twelve months ended December 31, 2023.
“Our fourth quarter results exceeded our expectations and demonstrate that owning premium businesses with defensible competitive moats drives strong financial performance,” said Elias Sabo, CEO of Compass Diversified. “At a consolidated level, our business saw strong revenue, net income, and Subsidiary Adjusted EBITDA growth in the fourth quarter led by Lugano Diamonds. While the economic backdrop remains uncertain for many, our diversified business model continues to shine, and has us feeling optimistic that we will provide a strong shareholder return in the coming year.”
Sabo continued: “Our differentiated competitive advantage of a permanent capital structure and a lower cost of capital enabled our opportunistic sale of Marucci Sports in November and our acquisition of The Honey Pot Company in early 2024. Inclusive of The Honey Pot Company acquisition, we expect to see above trend growth in consolidated financial performance in 2024, on a pro forma basis.”
Fourth Quarter and Full Year 2023 Financial Summary vs. Same Year-Ago Period (where applicable)
- Net sales in the fourth quarter up 7% to $567.0 million. For the full year 2023, net sales up 2% to $2.1 billion, and roughly flat on a pro forma basis.
- Branded consumer net sales in the fourth quarter up 13% to $371.9 million. For the full year 2023, branded consumer pro forma net sales up 3% to $1.3 billion.
- Industrial net sales in the fourth quarter down 3% to $195.1 million. For the full year 2023, industrial net sales down 5% to $728.5 million.
- Net income in the fourth quarter of $139.4 million vs. $8.7 million last year. For the full year 2023, net income of $262.4 million vs. $51.4 million. The increase in both periods was primarily due to the $179.5 million gain on the sale of Marucci Sports in November 2023 and the $98.0 million gain on the sale of Advanced Circuits in February 2023.
- Loss from continuing operations in the fourth quarter of $36.4 million vs. $4.6 million in the prior year period. For the full year 2023, loss from continuing operations of $38.7 million vs. income from continuing operations of $3.7 million for full year 2022. The increases in net loss from continuing operations were primarily due to non-cash impairment charges associated with PrimaLoft and Velocity Outdoor.
- Adjusted Earnings, a non-GAAP financial measure, in the fourth quarter was $38.1 million vs. $16.3 million for the fourth quarter of 2022. For the full year 2023, Adjusted Earnings was $116.7 million vs. $110.2 million in the prior year.
- Adjusted EBITDA, a non-GAAP financial measure, in the fourth quarter was up 35% to $94.8 million. For the full year 2023, Adjusted EBITDA was up 11% to $340.9 million.
- Paid a fourth quarter 2023 cash distribution of $0.25 per share on CODI's common shares in January 2024.
Recent Business Highlights
- On February 1, 2024, CODI announced the completion of its partnership with The Honey Pot Company, a leading “better-for-you” feminine care brand, for an enterprise value of $380 million.
- On January 17, 2024, CODI hosted an Investor Day in Newport Beach, California, showcasing its Lugano Diamonds and 5.11 subsidiaries. A replay of the Lugano Diamonds and Compass Diversified presentations has been made available on the Investor Relations page of the Company’s website at compassdiversified.com .
- On December 21, 2023, CODI announced the completion of a private placement of approximately 3.6 million of its common shares to a mutual fund managed by Allspring Global Investments, LLC for $21.18 per share, or an aggregate sale price of approximately $75.2 million, before commissions and expenses.
- On December 19, 2023, PrimaLoft Inc., a subsidiary of CODI and a leading provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear and accessories, announced the appointment of Anne Cavassa as CEO.
- On November 15, 2023, CODI announced the completion of the sale of Marucci Sports to Fox Factory Holding Corp. (Nasdaq: FOXF) for an enterprise value of $572 million. CODI realized a $179.5 million gain on the sale of Marucci Sports.
Fourth Quarter and Full Year 2023 Financial Results
Net sales in the fourth quarter of 2023 were $567.0 million, up 7% compared to $529.7 million in the fourth quarter of 2022. For the full year 2023, net sales were $2.1 billion, up 2% compared to $2.0 billion a year ago. This was driven by a 63% increase in Lugano net sales, somewhat offset by lower net sales at PrimaLoft and Velocity Outdoor due to inventory destocking headwinds and reduced wholesale demand. On a pro forma basis, assuming CODI had acquired PrimaLoft on January 1, 2022, net sales were roughly flat in the full year 2023.
Branded consumer net sales increased 13% in the fourth quarter of 2023 to $371.9 million compared to the fourth quarter of 2022. On a pro forma basis, branded consumer net sales increased 3% to $1.3 billion in the full year 2023 compared to a year ago.
Industrial net sales decreased 3% in the fourth quarter of 2023 to $195.1 million compared to the fourth quarter of 2022, and decreased 5% to $728.5 million in the full year 2023 compared to a year ago.
Operating loss for the fourth quarter of 2023 was $4.0 million compared to operating income of $26.8 million in the fourth quarter of 2022. For the full year 2023, operating income decreased 31% to $90.1 million compared to $130.8 million a year ago. The decline was primarily due to a $56.8 million non-cash impairment expense associated with PrimaLoft in the fourth quarter of 2023.
Net income in the fourth quarter of 2023 was $139.4 million compared to net income of $8.7 million in the fourth quarter of 2022. For the full year 2023, net income was $262.4 million compared to $51.4 million a year ago. The increases in net income were due primarily to the $179.5 million gain on the sale of Marucci Sports in November 2023 and the $98.0 million gain on the sale of Advanced Circuits in February 2023.
Loss from continuing operations in the fourth quarter of 2023 was $36.4 million compared to $4.6 million in the fourth quarter of 2022. For the full year 2023, loss from continuing operations was $38.7 million compared to income from continuing operations of $3.7 million a year ago. The increases in net loss from continuing operations were primarily due to the non-cash impairment expenses associated with PrimaLoft and Velocity Outdoor.
Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the fourth quarter of 2023 was $38.1 million compared to $16.3 million a year ago. For the full year 2023, Adjusted Earnings was $116.7 million compared to $110.2 million a year ago. CODI's weighted average number of shares outstanding in the fourth quarter of 2023 was 72.43 million compared to 72.20 million in the prior year fourth quarter. For the full year 2023, CODI’s weighted average number of shares outstanding was 72.11 million compared to 70.72 million in 2022.
Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) in the fourth quarter of 2023 was $94.8 million, up 35% compared to $70.0 million in the fourth quarter of 2022. For the full year 2023, Adjusted EBITDA was $340.9 million, up 11% compared to $306.0 million a year ago. The increases were primarily due to strong results at Lugano and the Company’s Industrial subsidiaries. The Company no longer adds back management fees in its calculation of Adjusted EBITDA. Management fees incurred during the fourth quarter and full year were $16.9 million and $68.4 million, respectively.
Liquidity and Capital Resources
As of December 31, 2023, CODI had approximately $450.5 million in cash and cash equivalents, $2.2 million outstanding on its revolver, $385.0 million outstanding in term loans, $1.0 billion outstanding in 5.250% Senior Notes due 2029 and $300.0 million outstanding in 5.000% Senior Notes due 2032.
As of December 31, 2023, the Company had no significant debt maturities until 2027 and had net borrowing availability of approximately $598 million under its revolving credit facility.
Fourth Quarter 2023 Distributions
On January 4, 2024, CODI’s Board declared a fourth quarter distribution of $0.25 per share on the Company's common shares. The cash distribution was paid on January 25, 2024, to all holders of record of common shares as of January 18, 2024.
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, October 30, 2023, up to, but excluding, January 30, 2024. The distribution for such period was payable on January 30, 2024, to all holders of record of Series A Preferred Shares as of January 15, 2024.
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, October 30, 2023, up to, but excluding, January 30, 2024. The distribution for such period was payable on January 30, 2024, to all holders of record of Series B Preferred Shares as of January 15, 2024.
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, October 30, 2023, up to, but excluding, January 30, 2024. The distribution for such period was payable on January 30, 2024, to all holders of record of Series C Preferred Shares as of January 15, 2024.
2024 Outlook
CODI expects its current subsidiaries, inclusive of The Honey Pot Company as if we owned it from January 1, 2024, to produce consolidated Subsidiary Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the full year 2024 of between $480 million and $520 million. Of this range, CODI expects its Branded Consumer vertical to produce $355 million to $385 million and its Industrial vertical to produce $125 million to $135 million. This estimate is based on the summation of the Company’s expectations for its current subsidiaries in 2024, and is absent additional acquisitions or divestitures, and excludes corporate expenses such as interest expense, management fees paid by CODI and corporate overhead.
CODI is now providing guidance for Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below) including management fees and corporate expenses, and expects to earn between $390 million and $430 million for the full year 2024. Adjusted EBITDA only includes results from The Honey Pot Company from the date of acquisition.
In addition, the Company expects to earn between $145 million and $160 million in Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the full year 2024.
In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, CODI has not reconciled 2024 consolidated 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
Management will host a conference call on Wednesday, February 28, 2024, at 5:00 p.m. ET to discuss the latest corporate developments and financial results. The dial-in number for callers in the U.S. is (888) 259-6580 and the dial-in number for international callers is (416) 764-8624. The Conference ID is 60782779. The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of CODI's website. An online replay of the webcast will be available on the same website following the call. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast. A replay of the call will be available through Wednesday, March 6, 2024. To access the replay, please dial (877) 674-7070 in the U.S. and (416) 764-8692 outside the U.S.
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 and provides a measure for evaluating earnings from continuing operations available to common shareholders.
Pro forma net sales is defined as net sales including the historical net sales relating to the pre-acquisition periods of PrimaLoft, assuming that the Company acquired PrimaLoft on January 1, 2022. 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.
In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled 2024 consolidated Subsidiary Adjusted EBITDA, 2024 Adjusted EBITDA or 2024 Adjusted Earnings to their comparable GAAP measures because we do not provide guidance on Net 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, we are unable to address the probable significance of the unavailable information, which could be material to future results.
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 founding in 1998 and IPO in 2006, CODI has consistently executed on 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 consolidated 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, social, civil and political unrest or the COVID-19 pandemic; 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
irinquiry@compassdiversified.com
Gateway Group
Cody Slach
949.574.3860
CODI@gateway-grp.com
Media Relations
Mediainquiry@compassdiversified.com
The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com
| Compass Diversified Holdings |
| Condensed Consolidated Balance Sheets |
| (in thousands) |
| December 31, 2023 |
| December 31, 2022 |
| Assets |
| Current assets |
| Cash and cash equivalents |
| $ |
| 450,477 |
| $ |
| 56,599 |
| Accounts receivable, net |
| 318,241 |
| 297,722 |
| Inventories, net |
| 740,387 |
| 680,545 |
| Prepaid expenses and other current assets |
| 94,715 |
| 73,200 |
| Current assets of discontinued operations |
| — |
| 102,119 |
| Total current assets |
| 1,603,820 |
| 1,210,185 |
| Property, plant and equipment, net |
| 192,562 |
| 184,501 |
| Goodwill |
| 901,428 |
| 991,007 |
| Intangible assets, net |
| 923,905 |
| 1,015,497 |
| Other non-current assets |
| 195,266 |
| 162,392 |
| Non-current assets of discontinued operations |
| — |
| 286,049 |
| Total assets |
| $ |
| 3,816,981 |
| $ |
| 3,849,631 |
| Liabilities and stockholders’ equity |
| Current liabilities |
| Accounts payable |
| $ |
| 93,412 |
| $ |
| 82,942 |
| Accrued expenses |
| 150,725 |
| 177,245 |
| Deferred revenue |
| 6,731 |
| 7,093 |
| Due to related parties |
| 16,025 |
| 15,495 |
| Current portion, long-term debt |
| 10,000 |
| 10,000 |
| Other current liabilities |
| 35,465 |
| 35,286 |
| Current liabilities of discontinued operations |
| — |
| 31,771 |
| Total current liabilities |
| 312,358 |
| 359,832 |
| Deferred income taxes |
| 120,131 |
| 142,627 |
| Long-term debt |
| 1,661,879 |
| 1,824,468 |
| Other non-current liabilities |
| 203,232 |
| 139,267 |
| Non-current liabilities of discontinued operations |
| — |
| 21,475 |
| Total liabilities |
| 2,297,600 |
| 2,487,669 |
| Stockholders' equity |
| Total stockholders' equity attributable to Holdings |
| 1,326,750 |
| 1,136,920 |
| Noncontrolling interest |
| 192,631 |
| 203,464 |
| Noncontrolling interest of discontinued operations |
| — |
| 21,578 |
| Total stockholders' equity |
| 1,519,381 |
| 1,361,962 |
| Total liabilities and stockholders’ equity |
| $ |
| 3,816,981 |
| $ |
| 3,849,631 |
| Compass Diversified Holdings |
| Consolidated Statements of Operations |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands, except per share data) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Net revenues |
| $ |
| 566,989 |
| $ |
| 529,682 |
| $ |
| 2,058,876 |
| $ |
| 2,009,130 |
| Cost of revenues |
| 320,682 |
| 327,934 |
| 1,165,553 |
| 1,226,078 |
| Gross profit |
| 246,307 |
| 201,748 |
| 893,323 |
| 783,052 |
| Operating expenses: |
| Selling, general and administrative expense |
| 152,626 |
| 132,969 |
| 549,589 |
| 484,369 |
| Management fees |
| 16,909 |
| 17,050 |
| 68,445 |
| 62,604 |
| Amortization expense |
| 23,914 |
| 24,886 |
| 95,820 |
| 84,689 |
| Impairment expense |
| 56,832 |
| — |
| 89,400 |
| 20,552 |
| Operating income (loss) |
| (3,974 |
| ) |
| 26,843 |
| 90,069 |
| 130,838 |
| Other income (expense): |
| Interest expense, net |
| (24,826 |
| ) |
| (25,768 |
| ) |
| (105,179 |
| ) |
| (83,492 |
| ) |
| Amortization of debt issuance costs |
| (1,004 |
| ) |
| (1,005 |
| ) |
| (4,038 |
| ) |
| (3,740 |
| ) |
| Loss on debt extinguishment |
| — |
| — |
| — |
| (534 |
| ) |
| Other income (expense), net |
| (357 |
| ) |
| (1,349 |
| ) |
| 1,743 |
| (2,321 |
| ) |
| Net income (loss) before income taxes |
| (30,161 |
| ) |
| (1,279 |
| ) |
| (17,405 |
| ) |
| 40,751 |
| Provision (benefit) for income taxes |
| 6,254 |
| 3,313 |
| 21,331 |
| 37,093 |
| Income (loss) from continuing operations |
| (36,415 |
| ) |
| (4,592 |
| ) |
| (38,736 |
| ) |
| 3,658 |
| Income (loss) from discontinued operations, net of income tax |
| (3,674 |
| ) |
| 10,800 |
| 18,116 |
| 38,387 |
| Gain on sale of discontinued operations |
| 179,530 |
| 2,500 |
| 283,025 |
| 9,393 |
| Net income |
| 139,441 |
| 8,708 |
| 262,405 |
| 51,438 |
| Less: Net income (loss) attributable to noncontrolling interest |
| 2,555 |
| (1,131 |
| ) |
| 15,945 |
| 10,367 |
| Less: Net income (loss) from discontinued operations attributable to noncontrolling interest |
| (551 |
| ) |
| 1,255 |
| 174 |
| 4,684 |
| Net income attributable to Holdings |
| $ |
| 137,437 |
| $ |
| 8,584 |
| $ |
| 246,286 |
| $ |
| 36,387 |
| Basic income (loss) per common share attributable to Holdings |
| Continuing operations |
| $ |
| (0.74 |
| ) |
| $ |
| (0.50 |
| ) |
| $ |
| (1.71 |
| ) |
| $ |
| (0.66 |
| ) |
| Discontinued operations |
| 2.44 |
| 0.16 |
| 4.17 |
| 0.56 |
| $ |
| 1.70 |
| $ |
| (0.34 |
| ) |
| $ |
| 2.46 |
| $ |
| (0.10 |
| ) |
| Basic weighted average number of common shares outstanding |
| 72,429 |
| 72,203 |
| 72,105 |
| 70,715 |
| Cash distributions declared per Trust common share |
| $ |
| 0.25 |
| $ |
| 0.25 |
| $ |
| 1.00 |
| $ |
| 1.00 |
| Compass Diversified Holdings |
| Net Income to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA - 2023 |
| (Unaudited) |
| Three months ended |
| Year ended |
| (in thousands) |
| March 31, 2023 |
| June 30, 2023 |
| September 30, 2023 |
| December 31, 2023 |
| December 31, 2023 |
| Net income (loss) |
| $ |
| 109,601 |
| $ |
| 17,123 |
| $ |
| (3,760 |
| ) |
| $ |
| 139,441 |
| $ |
| 262,405 |
| Gain on sale of discontinued operations, net of tax |
| 97,989 |
| 4,232 |
| 1,274 |
| 179,530 |
| 283,025 |
| Income (loss) from discontinued operations, net of tax |
| 10,000 |
| 2,840 |
| 8,950 |
| (3,674 |
| ) |
| 18,116 |
| Net income (loss) from continuing operations |
| $ |
| 1,612 |
| $ |
| 10,051 |
| $ |
| (13,984 |
| ) |
| $ |
| (36,415 |
| ) |
| $ |
| (38,736 |
| ) |
| Less: income from continuing operations attributable to noncontrolling interest |
| 4,171 |
| 3,498 |
| 5,721 |
| 2,555 |
| 15,945 |
| Net income (loss) attributable to Holdings - continuing operations |
| $ |
| (2,559 |
| ) |
| $ |
| 6,553 |
| $ |
| (19,705 |
| ) |
| $ |
| (38,970 |
| ) |
| $ |
| (54,681 |
| ) |
| Adjustments: |
| Distributions paid - preferred shares |
| (6,045 |
| ) |
| (6,046 |
| ) |
| (6,045 |
| ) |
| (6,045 |
| ) |
| (24,181 |
| ) |
| Amortization expense - intangible assets and inventory step-up |
| 25,148 |
| 23,977 |
| 23,956 |
| 23,914 |
| 96,995 |
| Impairment expense |
| — |
| — |
| 32,568 |
| 56,832 |
| 89,400 |
| Tax effect - impairment expense |
| — |
| — |
| (4,308 |
| ) |
| 978 |
| (3,330 |
| ) |
| Non-controlling interest - impairment expense |
| — |
| — |
| — |
| (5,382 |
| ) |
| (5,382 |
| ) |
| Non-controlling shareholder compensation |
| 1,641 |
| 3,207 |
| 2,750 |
| 3,067 |
| 10,665 |
| Acquisition expense |
| — |
| — |
| — |
| 321 |
| 321 |
| Integration services fee |
| 1,187 |
| 1,188 |
| — |
| — |
| 2,375 |
| Other |
| 432 |
| 348 |
| 349 |
| 3,377 |
| 4,506 |
| Adjusted earnings |
| $ |
| 19,804 |
| $ |
| 29,227 |
| $ |
| 29,565 |
| $ |
| 38,092 |
| $ |
| 116,688 |
| Plus (less): |
| Depreciation expense |
| 11,155 |
| 12,107 |
| 11,994 |
| 11,291 |
| 46,547 |
| Income tax provision |
| 6,920 |
| 4,320 |
| 3,837 |
| 6,254 |
| 21,331 |
| Interest expense |
| 26,180 |
| 26,613 |
| 27,560 |
| 24,826 |
| 105,179 |
| Amortization of debt issuance costs |
| 1,005 |
| 1,024 |
| 1,005 |
| 1,004 |
| 4,038 |
| Income from continuing operations attributable to noncontrolling interest |
| 4,171 |
| 3,498 |
| 5,721 |
| 2,555 |
| 15,945 |
| Distributions paid - preferred shares |
| 6,045 |
| 6,046 |
| 6,045 |
| 6,045 |
| 24,181 |
| Tax effect - impairment expense |
| — |
| — |
| 4,308 |
| (978 |
| ) |
| 3,330 |
| Non-controlling interest - impairment expense |
| — |
| — |
| — |
| 5,382 |
| 5,382 |
| Other |
| (1,160 |
| ) |
| 105 |
| (1,045 |
| ) |
| 357 |
| (1,743 |
| ) |
| Adjusted EBITDA |
| $ |
| 74,120 |
| $ |
| 82,940 |
| $ |
| 88,990 |
| $ |
| 94,828 |
| $ |
| 340,878 |
| Compass Diversified Holdings |
| Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA - 2022 |
| (Unaudited) |
| Three months ended |
| Year ended |
| (in thousands) |
| March 31, 2022 |
| June 30, 2022 |
| September 30, 2022 |
| December 31, 2022 |
| December 31, 2022 |
| Net income (loss) |
| $ |
| 29,740 |
| $ |
| 30,957 |
| $ |
| 2,585 |
| $ |
| (11,844 |
| ) |
| $ |
| 51,438 |
| Gain (loss) on sale of discontinued operations, net of tax |
| 5,993 |
| (579 |
| ) |
| 1,479 |
| 2,500 |
| 9,393 |
| Income from discontinued operations, net of tax |
| 13,059 |
| 4,371 |
| 10,157 |
| 10,800 |
| 38,387 |
| Net income (loss) from continuing operations |
| $ |
| 10,688 |
| $ |
| 27,165 |
| $ |
| (9,051 |
| ) |
| $ |
| (25,144 |
| ) |
| $ |
| 3,658 |
| Less: income (loss) from continuing operations attributable to noncontrolling interest |
| 4,388 |
| 3,813 |
| 3,297 |
| (1,131 |
| ) |
| 10,367 |
| Net income (loss) attributable to Holdings - continuing operations |
| $ |
| 6,300 |
| $ |
| 23,352 |
| $ |
| (12,348 |
| ) |
| $ |
| (24,013 |
| ) |
| $ |
| (6,709 |
| ) |
| Adjustments: |
| Distributions paid - preferred shares |
| (6,045 |
| ) |
| (6,046 |
| ) |
| (6,045 |
| ) |
| (6,045 |
| ) |
| (24,181 |
| ) |
| Amortization expense - intangible assets and inventory step-up |
| 19,691 |
| 20,258 |
| 24,400 |
| 26,454 |
| 90,803 |
| Impairment expense |
| — |
| — |
| — |
| 20,552 |
| 20,552 |
| Tax effect - impairment expense |
| — |
| — |
| — |
| (3,557 |
| ) |
| (3,557 |
| ) |
| Non-controlling interest - impairment expense |
| — |
| — |
| — |
| (3,120 |
| ) |
| (3,120 |
| ) |
| Loss on debt extinguishment |
| — |
| — |
| 534 |
| — |
| 534 |
| Non-controlling shareholder compensation |
| 2,405 |
| 2,404 |
| 2,581 |
| 4,608 |
| 11,998 |
| Acquisition expense |
| 216 |
| — |
| 5,902 |
| — |
| 6,118 |
| Integration services fee |
| 563 |
| 563 |
| 1,625 |
| 1,312 |
| 4,063 |
| Corporate tax effect |
| — |
| (4,338 |
| ) |
| 16,457 |
| — |
| 12,119 |
| Other |
| — |
| 1,027 |
| 434 |
| 119 |
| 1,580 |
| Adjusted earnings |
| $ |
| 23,130 |
| $ |
| 37,220 |
| $ |
| 33,540 |
| $ |
| 16,310 |
| $ |
| 110,200 |
| Plus (less): |
| Depreciation expense |
| 9,450 |
| 9,741 |
| 10,149 |
| 10,690 |
| 40,030 |
| Income tax provision |
| 7,970 |
| 6,926 |
| 18,884 |
| 3,313 |
| 37,093 |
| Corporate tax effect |
| — |
| 4,338 |
| (16,457 |
| ) |
| — |
| (12,119 |
| ) |
| Tax effect - impairment expense |
| — |
| — |
| — |
| 3,557 |
| 3,557 |
| Non-controlling interest - impairment expense |
| — |
| — |
| — |
| 3,120 |
| 3,120 |
| Interest expense |
| 17,419 |
| 17,509 |
| 22,796 |
| 25,768 |
| 83,492 |
| Amortization of debt issuance costs |
| 866 |
| 865 |
| 1,004 |
| 1,005 |
| 3,740 |
| Income from continuing operations attributable to noncontrolling interest |
| 4,388 |
| 3,813 |
| 3,297 |
| (1,131 |
| ) |
| 10,367 |
| Distributions paid - preferred shares |
| 6,045 |
| 6,046 |
| 6,045 |
| 6,045 |
| 24,181 |
| Other |
| (226 |
| ) |
| (718 |
| ) |
| 1,916 |
| 1,349 |
| 2,321 |
| Adjusted EBITDA |
| $ |
| 69,042 |
| $ |
| 85,740 |
| $ |
| 81,174 |
| $ |
| 70,026 |
| $ |
| 305,982 |
| Compass Diversified Holdings |
| Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation |
| Three Months Ended December 31, 2023 |
| (Unaudited) |
| (in thousands) |
| Corporate |
| 5.11 |
| BOA |
| Ergo |
| Lugano |
| PrimaLoft |
| Velocity Outdoor |
| Altor Solutions |
| Arnold |
| Sterno |
| Consolidated |
| Net income (loss) from continuing operations |
| $ |
| (10,847 |
| ) |
| $ |
| 9,840 |
| $ |
| 1,345 |
| $ |
| (1,487 |
| ) |
| $ |
| 20,847 |
| $ |
| (64,383 |
| ) |
| $ |
| (3,183 |
| ) |
| $ |
| 4,260 |
| $ |
| 3,523 |
| $ |
| 3,670 |
| $ |
| (36,415 |
| ) |
| Adjusted for: |
| Provision (benefit) for income taxes |
| 301 |
| 1,004 |
| 639 |
| (37 |
| ) |
| 4,293 |
| (2,549 |
| ) |
| 289 |
| 1,797 |
| 921 |
| (406 |
| ) |
| 6,252 |
| Interest expense, net |
| 24,732 |
| (4 |
| ) |
| (9 |
| ) |
| — |
| — |
| (2 |
| ) |
| 120 |
| — |
| (11 |
| ) |
| — |
| 24,826 |
| Intercompany interest |
| (35,402 |
| ) |
| 4,546 |
| 2,548 |
| 2,111 |
| 10,177 |
| 4,780 |
| 3,440 |
| 2,303 |
| 1,728 |
| 3,769 |
| — |
| Depreciation and amortization |
| 342 |
| 6,143 |
| 5,496 |
| 1,998 |
| 2,258 |
| 5,394 |
| 3,259 |
| 4,183 |
| 2,193 |
| 4,943 |
| 36,209 |
| EBITDA |
| (20,874 |
| ) |
| 21,529 |
| 10,019 |
| 2,585 |
| 37,575 |
| (56,760 |
| ) |
| 3,925 |
| 12,543 |
| 8,354 |
| 11,976 |
| 30,872 |
| Other (income) expense |
| — |
| (412 |
| ) |
| (19 |
| ) |
| 7 |
| (75 |
| ) |
| (66 |
| ) |
| (31 |
| ) |
| 1,239 |
| (4 |
| ) |
| (280 |
| ) |
| 359 |
| Non-controlling shareholder compensation |
| — |
| 203 |
| 950 |
| 278 |
| 162 |
| 761 |
| 228 |
| 186 |
| 1 |
| 298 |
| 3,067 |
| Impairment expense |
| — |
| — |
| — |
| — |
| — |
| 57,810 |
| (978 |
| ) |
| — |
| — |
| — |
| 56,832 |
| Acquisition expenses |
| — |
| — |
| — |
| 321 |
| — |
| — |
| — |
| — |
| — |
| — |
| 321 |
| Other |
| — |
| — |
| 3,072 |
| — |
| — |
| — |
| — |
| — |
| — |
| 305 |
| 3,377 |
| Adjusted EBITDA |
| $ |
| (20,874 |
| ) |
| $ |
| 21,320 |
| $ |
| 14,022 |
| $ |
| 3,191 |
| $ |
| 37,662 |
| $ |
| 1,745 |
| $ |
| 3,144 |
| $ |
| 13,968 |
| $ |
| 8,351 |
| $ |
| 12,299 |
| $ |
| 94,828 |
| Compass Diversified Holdings |
| Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation |
| Three Months Ended December 31, 2022 |
| (Unaudited) |
| (in thousands) |
| Corporate |
| 5.11 |
| BOA |
| Ergo |
| Lugano |
| PrimaLoft |
| Velocity Outdoor |
| Altor Solutions |
| Arnold |
| Sterno |
| Consolidated |
| Net income (loss) from continuing operations |
| $ |
| (16,856 |
| ) |
| $ |
| 7,093 |
| $ |
| 5,491 |
| $ |
| (18,035 |
| ) |
| $ |
| 6,063 |
| $ |
| (9,249 |
| ) |
| $ |
| (3,699 |
| ) |
| $ |
| 2,513 |
| $ |
| 466 |
| $ |
| 1,069 |
| $ |
| (25,144 |
| ) |
| Adjusted for: |
| Provision (benefit) for income taxes |
| — |
| 2,126 |
| (292 |
| ) |
| (4,706 |
| ) |
| 6,026 |
| (308 |
| ) |
| (810 |
| ) |
| 267 |
| 561 |
| 449 |
| 3,313 |
| Interest expense, net |
| 25,684 |
| (12 |
| ) |
| (6 |
| ) |
| 8 |
| 4 |
| (3 |
| ) |
| 87 |
| — |
| 6 |
| — |
| 25,768 |
| Intercompany interest |
| (29,950 |
| ) |
| 4,260 |
| 1,776 |
| 2,026 |
| 4,932 |
| 4,261 |
| 3,295 |
| 2,898 |
| 1,571 |
| 4,931 |
| — |
| Depreciation and amortization |
| 342 |
| 6,168 |
| 5,648 |
| 2,033 |
| 3,148 |
| 6,271 |
| 3,393 |
| 4,149 |
| 1,976 |
| 5,021 |
| 38,149 |
| EBITDA |
| (20,780 |
| ) |
| 19,635 |
| 12,617 |
| (18,674 |
| ) |
| 20,173 |
| 972 |
| 2,266 |
| 9,827 |
| 4,580 |
| 11,470 |
| 42,086 |
| Other (income) expense |
| 15 |
| (310 |
| ) |
| 545 |
| 2 |
| — |
| (148 |
| ) |
| 1,263 |
| 547 |
| (20 |
| ) |
| (545 |
| ) |
| 1,349 |
| Non-controlling shareholder compensation |
| — |
| 301 |
| 622 |
| 325 |
| 379 |
| 2,142 |
| 229 |
| 411 |
| 2 |
| 197 |
| 4,608 |
| Impairment expense |
| — |
| — |
| — |
| 20,552 |
| — |
| — |
| — |
| — |
| — |
| — |
| 20,552 |
| Integration services fee |
| — |
| — |
| — |
| — |
| — |
| 1,313 |
| — |
| — |
| — |
| — |
| 1,313 |
| Other |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 119 |
| 119 |
| Adjusted EBITDA |
| $ |
| (20,765 |
| ) |
| $ |
| 19,626 |
| $ |
| 13,784 |
| $ |
| 2,205 |
| $ |
| 20,552 |
| $ |
| 4,279 |
| $ |
| 3,758 |
| $ |
| 10,785 |
| $ |
| 4,562 |
| $ |
| 11,241 |
| $ |
| 70,027 |
| Compass Diversified Holdings |
| Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation |
| Year ended December 31, 2023 |
| (Unaudited) |
| (in thousands) |
| Corporate |
| 5.11 |
| BOA |
| Ergo |
| Lugano |
| PrimaLoft |
| Velocity Outdoor |
| Altor Solutions |
| Arnold |
| Sterno |
| Consolidated |
| Net income (loss) from continuing operations |
| $ |
| (51,761 |
| ) |
| $ |
| 21,690 |
| $ |
| 16,496 |
| $ |
| (2,601 |
| ) |
| $ |
| 52,315 |
| $ |
| (69,883 |
| ) |
| $ |
| (40,045 |
| ) |
| $ |
| 16,504 |
| $ |
| 10,434 |
| $ |
| 8,115 |
| $ |
| (38,736 |
| ) |
| Adjusted for: |
| Provision (benefit) for income taxes |
| 301 |
| 4,994 |
| 2,863 |
| (1,309 |
| ) |
| 14,589 |
| (5,672 |
| ) |
| (5,616 |
| ) |
| 5,890 |
| 4,185 |
| 1,106 |
| 21,331 |
| Interest expense, net |
| 104,855 |
| (8 |
| ) |
| (18 |
| ) |
| — |
| 4 |
| (11 |
| ) |
| 352 |
| — |
| 5 |
| — |
| 105,179 |
| Intercompany interest |
| (134,835 |
| ) |
| 20,244 |
| 7,580 |
| 8,595 |
| 32,837 |
| 18,123 |
| 13,510 |
| 10,486 |
| 6,806 |
| 16,654 |
| — |
| Loss on debt extinguishment |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| Depreciation and amortization |
| 1,399 |
| 26,009 |
| 22,932 |
| 8,110 |
| 9,229 |
| 21,478 |
| 13,282 |
| 16,741 |
| 8,441 |
| 19,959 |
| 147,580 |
| EBITDA |
| (80,041 |
| ) |
| 72,929 |
| 49,853 |
| 12,795 |
| 108,974 |
| (35,965 |
| ) |
| (18,517 |
| ) |
| 49,621 |
| 29,871 |
| 45,834 |
| 235,354 |
| Other (income) expense |
| (128 |
| ) |
| (515 |
| ) |
| 98 |
| 36 |
| (80 |
| ) |
| 62 |
| (1,210 |
| ) |
| 1,440 |
| (5 |
| ) |
| (1,441 |
| ) |
| (1,743 |
| ) |
| Non-controlling shareholder compensation |
| — |
| 1,191 |
| 3,019 |
| 1,214 |
| 1,474 |
| 980 |
| 914 |
| 986 |
| 27 |
| 860 |
| 10,665 |
| Impairment expense |
| — |
| — |
| — |
| — |
| — |
| 57,810 |
| 31,590 |
| — |
| — |
| — |
| 89,400 |
| Acquisition expenses |
| — |
| — |
| — |
| 321 |
| — |
| — |
| — |
| — |
| — |
| — |
| 321 |
| Integration services fee |
| — |
| — |
| — |
| — |
| — |
| 2,375 |
| — |
| — |
| — |
| — |
| 2,375 |
| Other |
| — |
| — |
| 3,072 |
| — |
| — |
| — |
| — |
| — |
| — |
| 1,434 |
| 4,506 |
| Adjusted EBITDA |
| $ |
| (80,169 |
| ) |
| $ |
| 73,605 |
| $ |
| 56,042 |
| $ |
| 14,366 |
| $ |
| 110,368 |
| $ |
| 25,262 |
| $ |
| 12,777 |
| $ |
| 52,047 |
| $ |
| 29,893 |
| $ |
| 46,687 |
| $ |
| 340,878 |
| Compass Diversified Holdings |
| Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation |
| Year ended December 31, 2022 |
| (Unaudited) |
| (in thousands) |
| Corporate |
| 5.11 |
| BOA |
| Ergo |
| Lugano |
| PrimaLoft |
| Velocity Outdoor |
| Altor Solutions |
| Arnold |
| Sterno |
| Consolidated |
| Net income (loss) from continuing operations |
| $ |
| (77,990 |
| ) |
| $ |
| 22,633 |
| $ |
| 42,613 |
| $ |
| (18,669 |
| ) |
| $ |
| 27,934 |
| $ |
| (17,741 |
| ) |
| $ |
| 4,127 |
| $ |
| 9,662 |
| $ |
| 7,683 |
| $ |
| 3,406 |
| $ |
| 3,658 |
| Adjusted for: |
| Provision (benefit) for income taxes |
| 12,119 |
| 7,125 |
| 6,527 |
| (4,274 |
| ) |
| 11,889 |
| (3,878 |
| ) |
| 1,562 |
| 3,174 |
| 3,329 |
| (480 |
| ) |
| 37,093 |
| Interest expense, net |
| 83,243 |
| — |
| (25 |
| ) |
| 10 |
| 16 |
| (7 |
| ) |
| 229 |
| — |
| 26 |
| — |
| 83,492 |
| Intercompany interest |
| (92,177 |
| ) |
| 13,761 |
| 7,410 |
| 6,026 |
| 12,773 |
| 7,512 |
| 10,282 |
| 10,742 |
| 5,518 |
| 18,153 |
| — |
| Loss on debt extinguishment |
| 534 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 534 |
| Depreciation and amortization |
| 1,405 |
| 22,972 |
| 21,993 |
| 8,094 |
| 11,533 |
| 10,465 |
| 13,374 |
| 16,403 |
| 8,041 |
| 20,293 |
| 134,573 |
| EBITDA |
| (72,866 |
| ) |
| 66,491 |
| 78,518 |
| (8,813 |
| ) |
| 64,145 |
| (3,649 |
| ) |
| 29,574 |
| 39,981 |
| 24,597 |
| 41,372 |
| 259,350 |
| Other (income) expense |
| (58 |
| ) |
| (217 |
| ) |
| 1,043 |
| 6 |
| 2 |
| 112 |
| 2,417 |
| 766 |
| (20 |
| ) |
| (1,730 |
| ) |
| 2,321 |
| Non-controlling shareholder compensation |
| — |
| 1,511 |
| 2,511 |
| 1,479 |
| 1,179 |
| 2,142 |
| 971 |
| 1,321 |
| 40 |
| 844 |
| 11,998 |
| Impairment expense |
| — |
| — |
| — |
| 20,552 |
| — |
| — |
| — |
| — |
| — |
| — |
| 20,552 |
| Acquisition expenses |
| — |
| — |
| — |
| — |
| — |
| 5,680 |
| 222 |
| 216 |
| — |
| — |
| 6,118 |
| Integration services fee |
| — |
| — |
| — |
| — |
| 1,688 |
| 2,375 |
| — |
| — |
| — |
| — |
| 4,063 |
| Other |
| — |
| — |
| — |
| 250 |
| — |
| — |
| — |
| — |
| — |
| 1,330 |
| 1,580 |
| Adjusted EBITDA |
| $ |
| (72,924 |
| ) |
| $ |
| 67,785 |
| $ |
| 82,072 |
| $ |
| 13,474 |
| $ |
| 67,014 |
| $ |
| 6,660 |
| $ |
| 33,184 |
| $ |
| 42,284 |
| $ |
| 24,617 |
| $ |
| 41,816 |
| $ |
| 305,982 |
| Compass Diversified Holdings |
| Adjusted EBITDA |
| (Unaudited) |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Branded Consumer |
| 5.11 |
| $ |
| 21,320 |
| $ |
| 19,626 |
| $ |
| 73,605 |
| $ |
| 67,785 |
| BOA |
| 14,022 |
| 13,784 |
| 56,042 |
| 82,072 |
| Ergobaby |
| 3,191 |
| 2,205 |
| 14,366 |
| 13,474 |
| Lugano |
| 37,662 |
| 20,552 |
| 110,368 |
| 67,014 |
| PrimaLoft (1) |
| 1,745 |
| 4,279 |
| 25,262 |
| 6,660 |
| Velocity Outdoor |
| 3,144 |
| 3,758 |
| 12,777 |
| 33,184 |
| Total Branded Consumer |
| $ |
| 81,084 |
| $ |
| 64,204 |
| $ |
| 292,420 |
| $ |
| 270,189 |
| Industrial |
| Altor Solutions |
| $ |
| 13,968 |
| $ |
| 10,785 |
| $ |
| 52,047 |
| $ |
| 42,284 |
| Arnold Magnetics |
| 8,351 |
| 4,562 |
| 29,893 |
| 24,617 |
| Sterno |
| 12,299 |
| 11,241 |
| 46,687 |
| 41,816 |
| Total Industrial |
| $ |
| 34,618 |
| $ |
| 26,588 |
| $ |
| 128,627 |
| $ |
| 108,717 |
| Corporate expense |
| (20,874 |
| ) |
| (20,765 |
| ) |
| (80,169 |
| ) |
| (72,924 |
| ) |
| Total Adjusted EBITDA |
| $ |
| 94,828 |
| $ |
| 70,027 |
| $ |
| 340,878 |
| $ |
| 305,982 |
| (1) The above results for PrimaLoft do not include management's estimate of Adjusted EBITDA, before our ownership, of $24.3 million for the twelve months ended December 31, 2022. PrimaLoft was acquired on July 12, 2022. |
| Compass Diversified Holdings |
| Net Sales to Pro Forma Net Sales Reconciliation |
| (unaudited) |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Net Sales |
| $ |
| 566,989 |
| $ |
| 529,682 |
| $ |
| 2,058,876 |
| $ |
| 2,009,130 |
| Acquisitions (1) |
| — |
| — |
| — |
| 55,185 |
| Pro Forma Net Sales |
| $ |
| 566,989 |
| $ |
| 529,682 |
| $ |
| 2,058,876 |
| $ |
| 2,064,315 |
| (1) Acquisitions reflects the net sales for PrimaLoft on a proforma basis as if we had acquired this business on January 1, 2022. |
| Compass Diversified Holdings |
| Subsidiary Pro Forma Net Sales |
| (unaudited) |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Branded Consumer |
| 5.11 |
| $ |
| 147,394 |
| $ |
| 135,605 |
| $ |
| 533,089 |
| $ |
| 486,213 |
| BOA |
| 42,435 |
| 42,473 |
| 155,825 |
| 208,688 |
| Ergobaby |
| 22,074 |
| 20,179 |
| 93,859 |
| 88,435 |
| Lugano |
| 104,750 |
| 64,278 |
| 308,321 |
| 201,507 |
| PrimaLoft (1) |
| 9,434 |
| 14,032 |
| 67,053 |
| 79,929 |
| Velocity Outdoor |
| 45,842 |
| 51,464 |
| 172,190 |
| 232,238 |
| Total Branded Consumer |
| $ |
| 371,929 |
| $ |
| 328,031 |
| $ |
| 1,330,337 |
| $ |
| 1,297,010 |
| Industrial |
| Altor Solutions |
| 56,417 |
| 61,748 |
| 238,030 |
| 261,338 |
| Arnold Magnetics |
| 44,632 |
| 37,496 |
| 166,679 |
| 153,815 |
| Sterno |
| 94,011 |
| 102,407 |
| 323,830 |
| 352,152 |
| Total Industrial |
| $ |
| 195,060 |
| $ |
| 201,651 |
| $ |
| 728,539 |
| $ |
| 767,305 |
| Total Subsidiary Net Sales |
| $ |
| 566,989 |
| $ |
| 529,682 |
| $ |
| 2,058,876 |
| $ |
| 2,064,315 |
| (1) Net sales for PrimaLoft are pro forma as if we had acquired this business on January 1, 2022. Historical net sales for PrimaLoft prior to acquisition on July 12, 2022, were $55.2 million for the twelve months ended December 31, 2022. |
| Compass Diversified Holdings |
| Condensed Consolidated Cash Flows |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Net cash provided by (used in) operating activities |
| $ |
| 21,128 |
| $ |
| 11,632 |
| $ |
| 78,080 |
| $ |
| (28,291 |
| ) |
| Net cash provided by (used in) investing activities |
| 466,213 |
| (27,774 |
| ) |
| 570,503 |
| (626,725 |
| ) |
| Net cash provided by (used in) financing activities |
| (102,236 |
| ) |
| 14,757 |
| (260,163 |
| ) |
| 556,885 |
| Foreign currency impact on cash |
| 636 |
| 1,404 |
| 786 |
| (1,331 |
| ) |
| Net increase (decrease) in cash and cash equivalents |
| 385,741 |
| 19 |
| 389,206 |
| (99,462 |
| ) |
| Cash and cash equivalents - beginning of the period (1) |
| 64,736 |
| 61,252 |
| 61,271 |
| 160,733 |
| Cash and cash equivalents - end of the period |
| $ |
| 450,477 |
| $ |
| 61,271 |
| $ |
| 450,477 |
| $ |
| 61,271 |
| (1) Includes cash from discontinued operations of $4.7 million at January 1, 2023 and $3.6 million at January 1, 2022. |
| Compass Diversified Holding |
| Selected Financial Data - Cash Flows |
| Three months ended December 31, |
| Year ended December 31, |
| (in thousands) |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Changes in operating assets and liabilities |
| $ |
| (24,390 |
| ) |
| $ |
| (27,722 |
| ) |
| $ |
| (153,310 |
| ) |
| $ |
| (224,587 |
| ) |
| Purchases of property and equipment |
| $ |
| (17,239 |
| ) |
| $ |
| (23,726 |
| ) |
| $ |
| (55,776 |
| ) |
| $ |
| (60,989 |
| ) |
| Distributions paid - common shares |
| $ |
| (17,955 |
| ) |
| $ |
| (18,051 |
| ) |
| $ |
| (71,967 |
| ) |
| $ |
| (70,845 |
| ) |
| Distributions paid - preferred shares |
| $ |
| (6,045 |
| ) |
| $ |
| (6,045 |
| ) |
| $ |
| (24,181 |
| ) |
| $ |
| (24,181 |
| ) |