附录99.1
compass diversified公布2024年第一季度财务结果
2024年5月1日，康涅狄格州威斯特波特。 －纽交所上市的摩根士丹利（纽交所：CODI）（"CODI"或"公司"），一家拥有主要中小型企业的所有者，今天宣布截至2024年3月31日为止的三个月的合并营运结果。
“我们在2024年以强劲的姿态开局，特别是当您看到我们品牌消费业务的表现时，这更凸显了我们明确、战略性转变的有效性，主导并管理处于创新和颠覆性增长前沿的公司。”Compass Diversified的CEO埃利亚斯·萨博表示。“Lugano Diamonds和BOA都有出色的第一季表现，而The Honey Pot Co.作为我们在第一季度才收购的公司，已与新任命的世界级董事会整合在一起，我们期待著今年的余下部分。鉴于我们的第一季度业绩和我们许多业务所看到的势头，我们对未来感到乐观，并提高了我们的前景。”
2024年第一季财务摘要与去年同期（如适用）相比
•净销售额增长8％至52430万美元，按照虚拟形式增长4％。
•品牌消费者净销售额按照赋型基础增长11%，达3,7540万美元。
•工业净销售额下降10%，为15960万美元。
•持续营运收入为240万美元，比160万美元。
•580万美元的净利润相对于10960万美元主要是因为2023年2月爱文思控股的出售带来的9800万美元收益。
•调整后盈利，这是一个非通用会计财务指标，较1980万美元上升了73%，达到3430万美元。
•经调整的EBITDA，一项非常准的财务指标，增长了28％至9480万美元。
•于2024年4月向CODI普通股股东支付每股$0.25的2024年第一季现金分派。
最近业务亮点
•2024年4月30日，CODI宣布将其子公司Velocity Outdoor的空气枪部门Crosman Corporation剥离。
•2024年4月18日，CODI旗下领先的保健型女性护理品牌The Honey Pot Co.宣布任命三位新女性成员加入其董事会。
•2024年3月5日，CODI宣布约书亚·盖诺被任命为卢加诺钻石公司的总裁。
•2024年2月1日，CODI宣布与领先的更好的女性护理品牌The Honey Pot Co. 完成合作，企业价值为38000万美元。
2024年第一季财务业绩
2024年第一季度的净销售额为5,243,000美元，较2023年第一季度的4,839,000美元增加了8%。这是由卢加诺净销售额增加61%和收购The Honey Pot Co.推动的。根据假设CODI在2023年1月1日收购The Honey Pot Co.的形势，净销售额增加了4%。
就拟议基础而言，品牌消费者净销售额较2023年第一季增加11%，达37540万美元。
工业网络销售额较2023年第一季度减少10%，至15960万美元。
2024年第一季的营业收入为3860万美元，较2023年第一季的3460万美元有所增加。2024年第一季的营业收入反映出自The Honey Pot Co.收购以及与Velocity Outdoor相关的820万美元非现金减值费用的较高SG&A。
2024年第一季持续营运收入较2023年第一季的160万美元增加了51%，达到240万美元。
2024年第一季的净利润为580万美元，相比于2023年第一季的10960万美元，反映了2023年2月爱文思控股销售所带来的9800万美元收益。
2024年第一季调整后盈利（请参阅下方“有关使用非GAAP财务指标的说明”）同比增长73%，达到3430万美元，较去年同期的1980万美元高。CODI在2024年第一季的加权平均流通股份为7527万，较去年同期的7218万高。
2024年第一季度调整后的EBITDA（请参见下方“有关非GAAP财务指标使用备忘录”）为9,480万美元，比2023年第一季度的7,410万美元增长了28%。这一增长主要是由Lugano业务的良好表现所致。公司不再在调整后的EBITDA计算中新增管理费。第一季度产生的管理费为1,810万美元。
流动性和资本资源
截至2024年3月31日，CODI大约有6470万现金及现金等价物，其循环信贷仍有4600万未偿还，长期贷款尚有38250万未偿还，2029年到期的5.250%优先票据尚有10亿未偿还，而到2032年到期的5.000%优先票据则有30000万未偿还。
截至2024年3月31日，该公司在2027年之前没有重大到期债务，并且在其循环信贷设施下的净借款额度约为$55160万。
2024年第一季度分配
2024年4月4日，CODI董事会宣布对公司普通股宣布第一季度每股0.25美元的股息。现金股息于2024年4月25日支付给截至2024年4月18日持有登记普通股的所有股东。
董事会还宣布对公司的7.250% A顺位优先股（「A顺位优先股」）每股分派现金0.453125美元。 A顺位优先股的分派涵盖从2024年1月30日开始至2024年4月30日（不含当日）。该时期的分派应于2024年4月30日支付给所有截至2024年4月15日的A顺位优先股记录持有人。
董事会还宣布，对公司的7.875% B系列优先股（“B系列优先股”）每股分派0.4921875美元现金股利。B系列优先股的股利包括从2024年1月30日起至2024年4月30日（不含当日）的期间。该期间的股利将于2024年4月30日支付，支付对象为2024年4月15日之前持有 B系列优先股的所有持有人。
董事会还宣布，对公司的7.875% C级优先股（" C级优先股"）每股派发0.4921875美元的季度现金分配。 C级优先股的分配涵盖了从2024年1月30日（含）到2024年4月30日（不含）的期间。 此期间的分配于2024年4月30日支付给2024年4月15日之前持有C级优先股记录的所有持有人。
2024年展望
由于公司品牌消费子公司的强势表现，其调高了子公司调整后EBITDA展望1000万美元。然而，由于最近Crosman的出售，公司将相应减少展望金额。因此，CODI预期其目前的子公司，包括The Honey Pot Co.，假设从2024年1月1日开始拥有，且不包括Crosman，将在2024年全年产生48000万至52000万的子公司调整后EBITDA（参见下文“关于非依照GAAP财务指标使用说明”）。在这个区间内，CODI预期其品牌消费垂直将产生35500万至38500万，而其工业垂直则将产生12500万至13500万。此估算基于公司对其2024年目前子公司的预期总和，并不包括额外的收购或出售，以及排除利息费用、CODI支付的管理费用和公司总部的企业开支。
Inclusive of the strong performance of the Company’s branded consumer subsidiaries and the sale of Crosman, CODI expects to earn Adjusted EBITDA (see “Note Regarding Use of Non-GAAP Financial Measures” below), which includes management fees and corporate expenses, of $390 million to $430 million for the full year 2024. Adjusted EBITDA only includes results from The Honey Pot Co. from the date of acquisition.
In addition, the Company is raising its Adjusted Earnings guidance and now expects to earn between $148 million and $163 million ($145-$160 million previously) (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the full year 2024. The increased range includes the outperformance of CODI’s Branded Consumer subsidiaries in the first quarter of 2024, the sale of Crosman, and the interest savings on its outstanding floating rate debt as a result of the use of proceeds from the Crosman sale to pay down its revolver balance outstanding.
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 May 1, 2024, at 5:00 p.m. E.T. / 2:00 p.m. PT with the Company’s Chief Executive Officer, Elias Sabo, Chief Financial Officer, Ryan Faulkingham, and Compass Group Management’s Chief Operating Officer, Pat Maciariello. 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 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 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 on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the industrial, branded consumer, and healthcare sectors. CODI 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. CODI 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
| March 31, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | (Unaudited) | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
Cash and cash equivalents | $ | 64,715 | $ | 450,477 | |||||||
Accounts receivable, net | 338,310 | 318,241 | |||||||||
| Inventories, net | 788,809 | 740,387 | |||||||||
Prepaid expenses and other current assets | 126,764 | 94,715 | |||||||||
Total current assets | 1,318,598 | 1,603,820 | |||||||||
| Property, plant and equipment, net | 191,869 | 192,562 | |||||||||
| Goodwill | 1,023,024 | 901,428 | |||||||||
| Intangible assets, net | 1,145,439 | 923,905 | |||||||||
| Other non-current assets | 186,099 | 195,266 | |||||||||
| Total assets | $ | 3,865,029 | $ | 3,816,981 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued expenses | $ | 258,073 | $ | 250,868 | |||||||
| Due to related party | 17,202 | 16,025 | |||||||||
| Current portion, long-term debt | 10,000 | 10,000 | |||||||||
| Other current liabilities | 37,681 | 35,465 | |||||||||
Total current liabilities | 322,956 | 312,358 | |||||||||
| Deferred income taxes | 139,861 | 120,131 | |||||||||
| Long-term debt | 1,705,982 | 1,661,879 | |||||||||
| Other non-current liabilities | 202,019 | 203,232 | |||||||||
| Total liabilities | 2,370,818 | 2,297,600 | |||||||||
| Stockholders' equity | |||||||||||
| Total stockholders' equity attributable to Holdings | 1,251,271 | 1,326,750 | |||||||||
| Noncontrolling interest | 242,940 | 192,631 | |||||||||
Total stockholders' equity | 1,494,211 | 1,519,381 | |||||||||
| Total liabilities and stockholders’ equity | $ | 3,865,029 | $ | 3,816,981 | |||||||
Compass Diversified Holdings
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands, except per share data) | 2024 | 2023 | |||||||||
| Net sales | $ | 524,290 | $ | 483,933 | |||||||
| Cost of sales | 282,463 | 278,869 | |||||||||
| Gross profit | 241,827 | 205,064 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative expense | 150,714 | 130,264 | |||||||||
| Management fees | 18,067 | 16,270 | |||||||||
| Amortization expense | 26,288 | 23,973 | |||||||||
| Impairment expense | 8,182 | — | |||||||||
| Operating income | 38,576 | 34,557 | |||||||||
| Other income (expense): | |||||||||||
| Interest expense, net | (23,575) | (26,180) | |||||||||
| Amortization of debt issuance costs | (1,005) | (1,005) | |||||||||
| Other income (expense), net | (2,874) | 1,160 | |||||||||
| Net income from continuing operations before income taxes | 11,122 | 8,532 | |||||||||
| Provision for income taxes | 8,686 | 6,920 | |||||||||
| Income from continuing operations | 2,436 | 1,612 | |||||||||
| Income from discontinued operations, net of income tax | — | 10,000 | |||||||||
| Gain on sale of discontinued operations | 3,345 | 97,989 | |||||||||
| Net income | 5,781 | 109,601 | |||||||||
| Less: Net income from continuing operations attributable to noncontrolling interest | 7,429 | 4,171 | |||||||||
| Less: Net income from discontinued operations attributable to noncontrolling interest | — | 33 | |||||||||
| Net income (loss) attributable to Holdings | $ | (1,648) | $ | 105,397 | |||||||
| Amounts attributable to Holdings | |||||||||||
| Loss from continuing operations | $ | (4,993) | $ | (2,559) | |||||||
| Income from discontinued operations | — | 9,967 | |||||||||
| Gain on sale of discontinued operations, net of income tax | 3,345 | 97,989 | |||||||||
| Net income (loss) attributable to Holdings | $ | (1,648) | $ | 105,397 | |||||||
| Basic income (loss) per common share attributable to Holdings | |||||||||||
| Continuing operations | $ | (0.89) | $ | (0.19) | |||||||
| Discontinued operations | 0.04 | 1.48 | |||||||||
| $ | (0.85) | $ | 1.29 | ||||||||
| Basic weighted average number of common shares outstanding | 75,274 | 72,178 | |||||||||
| Cash distributions declared per Trust common share | $ | 0.25 | $ | 0.25 | |||||||
Compass Diversified Holdings
Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Net income | $ | 5,781 | $ | 109,601 | |||||||
| Income from discontinued operations, net of tax | — | 10,000 | |||||||||
| Gain on sale of discontinued operations, net of tax | 3,345 | 97,989 | |||||||||
| Net income from continuing operations | $ | 2,436 | $ | 1,612 | |||||||
| Less: income from continuing operations attributable to noncontrolling interest | 7,429 | 4,171 | |||||||||
| Net loss attributable to Holdings - continuing operations | $ | (4,993) | $ | (2,559) | |||||||
| Adjustments: | |||||||||||
| Distributions paid - preferred shares | (6,045) | (6,045) | |||||||||
| Amortization expense - intangibles and inventory step up | 29,114 | 25,148 | |||||||||
| Impairment expense | 8,182 | — | |||||||||
| Stock compensation | 4,330 | 1,641 | |||||||||
| Acquisition expenses | 3,479 | — | |||||||||
| Integration services fee | — | 1,187 | |||||||||
| Other | 274 | 432 | |||||||||
| Adjusted Earnings | $ | 34,341 | $ | 19,804 | |||||||
| Plus (less): | |||||||||||
| Depreciation expense | 10,892 | 11,155 | |||||||||
| Income tax provision | 8,686 | 6,920 | |||||||||
| Interest expense | 23,575 | 26,180 | |||||||||
| Amortization of debt issuance costs | 1,005 | 1,005 | |||||||||
| Income from continuing operations attributable to noncontrolling interest | 7,429 | 4,171 | |||||||||
| Distributions paid - preferred shares | 6,045 | 6,045 | |||||||||
| Other (income) expense | 2,874 | (1,160) | |||||||||
| Adjusted EBITDA | $ | 94,847 | $ | 74,120 | |||||||
Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Three Months Ended March 31, 2024
(Unaudited)
| Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (5,248) | $ | 3,400 | $ | 3,351 | $ | (1,831) | $ | 20,204 | $ | (1,313) | $ | (3,490) | $ | (15,973) | $ | 693 | $ | 1,651 | $ | 992 | $ | 2,436 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | — | 1,203 | 540 | (1,310) | 7,044 | (80) | (1,167) | 579 | 628 | 796 | 453 | 8,686 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 23,593 | (3) | (3) | — | 3 | (2) | (22) | 44 | — | (35) | — | 23,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intercompany interest | (39,938) | 3,526 | 5,492 | 2,123 | 11,758 | 4,616 | 1,996 | 3,218 | 2,009 | 1,700 | 3,500 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 254 | 5,873 | 5,438 | 2,185 | 2,347 | 5,327 | 5,138 | 3,276 | 4,085 | 2,153 | 4,935 | 41,011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (21,339) | 13,999 | 14,818 | 1,167 | 41,356 | 8,548 | 2,455 | (8,856) | 7,415 | 6,265 | 9,880 | 75,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense | (39) | (34) | 75 | (5) | 76 | — | (17) | (297) | 3,236 | 52 | (173) | 2,874 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling shareholder compensation | — | 534 | 1,429 | 259 | 504 | 680 | 145 | 194 | 252 | 4 | 329 | 4,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment expense | — | — | — | — | — | — | — | 8,182 | — | — | — | 8,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition expenses | — | — | — | — | — | — | 3,479 | — | — | — | — | 3,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | 90 | — | — | — | 184 | 274 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (21,378) | $ | 14,499 | $ | 16,322 | $ | 1,421 | $ | 41,936 | $ | 9,228 | $ | 6,152 | $ | (777) | $ | 10,903 | $ | 6,321 | $ | 10,220 | $ | 94,847 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Three Months Ended March 31, 2023
(Unaudited)
| Corporate | 5.11 | BOA | Ergobaby | Lugano | PrimaLoft | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (14,212) | $ | 2,150 | $ | 5,368 | $ | (1,235) | $ | 9,968 | $ | (1,227) | $ | (4,501) | $ | 2,701 | $ | 2,305 | $ | 295 | $ | 1,612 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | — | 726 | 622 | (551) | 3,387 | 1,949 | (1,455) | 1,094 | 1,040 | 108 | 6,920 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 26,052 | (1) | (2) | — | 4 | (2) | 124 | — | 5 | — | 26,180 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intercompany interest | (31,467) | 4,799 | 1,792 | 2,149 | 6,284 | 4,322 | 3,128 | 2,874 | 1,649 | 4,470 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 316 | 6,452 | 5,693 | 2,039 | 2,850 | 5,360 | 3,387 | 4,165 | 2,019 | 5,027 | 37,308 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (19,311) | 14,126 | 13,473 | 2,402 | 22,493 | 10,402 | 683 | 10,834 | 7,018 | 9,900 | 72,020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense | (128) | (77) | 114 | — | — | (104) | (675) | 204 | (2) | (492) | (1,160) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling shareholder compensation | — | 252 | 664 | 312 | 395 | (708) | 230 | 316 | 9 | 171 | 1,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integration services fee | — | — | — | — | — | 1,187 | — | — | — | — | 1,187 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — | — | 432 | 432 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (19,439) | $ | 14,301 | $ | 14,251 | $ | 2,714 | $ | 22,888 | $ | 10,777 | $ | 238 | $ | 11,354 | $ | 7,025 | $ | 10,011 | $ | 74,120 | ||||||||||||||||||||||||||||||||||||||||||||||
Compass Diversified Holdings
Non-GAAP Adjusted EBITDA
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Branded Consumer | |||||||||||
| 5.11 | $ | 14,499 | $ | 14,301 | |||||||
| BOA | 16,322 | 14,251 | |||||||||
| Ergobaby | 1,421 | 2,714 | |||||||||
| Lugano | 41,936 | 22,888 | |||||||||
| PrimaLoft | 9,228 | 10,777 | |||||||||
The Honey Pot Co. (1) | 6,152 | — | |||||||||
| Velocity Outdoor | (777) | 238 | |||||||||
| Total Branded Consumer | $ | 88,781 | $ | 65,169 | |||||||
| Niche Industrial | |||||||||||
| Altor Solutions | 10,903 | 11,354 | |||||||||
| Arnold Magnetics | 6,321 | 7,025 | |||||||||
| Sterno | 10,220 | 10,011 | |||||||||
| Total Niche Industrial | $ | 27,444 | $ | 28,390 | |||||||
Corporate expense | (21,378) | (19,439) | |||||||||
| Total Adjusted EBITDA | $ | 94,847 | $ | 74,120 | |||||||
| (1) | The above results for The Honey Pot Co. do not include management's estimate of Adjusted EBITDA, before the Company's ownership, of $3.9 million and $10.8 million, respectively, for the three months ended March 31, 2024 and March 31, 2023. The Honey Pot Co. was acquired on January 31, 2024. | |||||||
Compass Diversified Holdings
Net Sales to Pro Forma Net Sales Reconciliation
(unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Net Sales | $ | 524,290 | $ | 483,933 | |||||||
Acquisitions (1) | 10,671 | 31,878 | |||||||||
| Pro Forma Net Sales | $ | 534,961 | $ | 515,811 | |||||||
(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 March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Branded Consumer | |||||||||||
| 5.11 | $ | 124,974 | $ | 124,452 | |||||||
| BOA | 42,903 | 37,986 | |||||||||
| Ergobaby | 21,218 | 22,418 | |||||||||
| Lugano | 103,039 | 63,887 | |||||||||
| PrimaLoft | 22,541 | 24,529 | |||||||||
The Honey Pot (1) | 30,836 | 31,878 | |||||||||
| Velocity Outdoor | 29,899 | 34,040 | |||||||||
| Total Branded Consumer | $ | 375,410 | $ | 339,190 | |||||||
| Niche Industrial | |||||||||||
| Altor Solutions | 53,404 | 61,512 | |||||||||
| Arnold Magnetics | 41,287 | 40,090 | |||||||||
| Sterno | 64,860 | 75,019 | |||||||||
| Total Niche Industrial | $ | 159,551 | $ | 176,621 | |||||||
| Total Subsidiary Net Sales | $ | 534,961 | $ | 515,811 | |||||||
(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 March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Net cash provided by (used in) operating activities | $ | (13,201) | $ | 15,545 | |||||||
| Net cash provided by (used in) investing activities | (382,478) | 154,724 | |||||||||
| Net cash provided by (used in) financing activities | 10,905 | (178,446) | |||||||||
| Foreign currency impact on cash | (989) | 562 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (385,763) | (7,615) | |||||||||
Cash and cash equivalents - beginning of the period(1) | 450,478 | 61,271 | |||||||||
Cash and cash equivalents - end of the period(2) | $ | 64,715 | $ | 53,656 | |||||||
(1) Includes cash from discontinued operations of $4.7 million at January 1, 2023.
(2) Includes cash from discontinued operations of $3.8 million at March 31, 2023.
| Compass Diversified Holding | |||||||||||
| Selected Financial Data - Cash Flows | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Changes in operating assets and liabilities | $ | (60,854) | $ | (36,892) | |||||||
| Purchases of property and equipment | $ | (7,747) | $ | (14,897) | |||||||
| Distributions paid - common shares | $ | (18,818) | $ | (18,051) | |||||||
| Distributions paid - preferred shares | $ | (6,045) | $ | (6,045) | |||||||