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Compass Diversified Reports Record Third Quarter 2022 Financial Results

Compass Diversified Holdings
Compass Diversified Holdings

Net Sales Growth of 22% Drives Record Quarterly Results

Raises 2022 Outlook Given Continued Strong Performance

WESTPORT, Conn., Nov. 03, 2022 (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, 2022.

“Our third quarter results yet again demonstrate the quality of CODI’s subsidiary businesses, as we delivered another consecutive quarter of record financial performance,” said Elias Sabo, CEO of Compass Diversified. “Our subsidiaries on a combined basis continue to deliver excellent results despite inflationary pressures impacting consumer discretionary spending. End market demand for our core consumer products remains strong, and with many of our consumer businesses taking market share, we believe our businesses can outperform the general market and deliver strong financial results.”

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Third Quarter 2022 Financial Highlights vs. Same Year-Ago Quarter (where applicable)

  • Net sales up 22% to $597.6 million, and up 15% on a pro forma basis.

  • Branded consumer net sales up 34% to $378.2 million, and up 21% on a pro forma basis.

  • Niche industrial net sales up 7% to $219.4 million.

  • Operating income up 16% to $48.7 million.

  • Net income down to $2.6 million vs. $90.2 million in the elevated year-ago period, primarily a result of the $72.7 million gain on the sale of Liberty Safe in August 2021.

  • Adjusted Earnings, a non-GAAP financial measure, up 28% to $46.0 million.

  • Adjusted EBITDA, a non-GAAP financial measure, up 27% to $98.3 million.

  • Paid a third quarter 2022 cash distribution of $0.25 per share on CODI's common shares in October 2022.

Third Quarter 2022 Business Highlights

  • Appointed Mr. Larry L. Enterline as Chairman of the Board of Directors effective July 2, 2022. Additionally, Ms. Teri R. Shaffer was appointed to the Board and designated as a member of the Board’s Audit Committee.

  • On July 12, 2022, CODI completed the acquisition of PrimaLoft Technologies Holdings, Inc., the parent company of PrimaLoft, Inc. ("PrimaLoft"), a leading provider of branded, high-performance synthetic insulation and materials used primarily in outerwear and accessories.

  • 5.11 Tactical subsidiary announced the opening of its 100th retail store location, continuing the execution of expanding its retail footprint.

Third Quarter 2022 Financial Results

Net sales in the third quarter of 2022 were $597.6 million, up 22% compared to $488.2 million in the third quarter of 2021. The increase was due to strong performance at its branded consumer and niche industrial subsidiaries. On a pro forma basis, assuming CODI had acquired Lugano and PrimaLoft on January 1, 2021, net sales were up 15% compared to the prior year period.

Branded consumer net sales, pro forma for the Lugano and PrimaLoft acquisitions, increased 21% in the third quarter of 2022 to $380.5 million compared to $314.8 million in the third quarter of 2021. Niche industrial net sales increased 7% in the third quarter of 2022 to $219.4 million compared to $205.0 million in the third quarter of 2021.

Net income for the third quarter of 2022 decreased to $2.6 million compared to net income of $90.2 million in the third quarter of 2021. Income from continuing operations for the third quarter of 2022 decreased to $1.1 million compared to $18.7 million in the third quarter of 2021. The decreases in net income and income from continuing operations were a result of higher interest expense related to the funding of the acquisitions of PrimaLoft and Lugano and provisions for income tax primarily as a result of the reclassification of Advanced Circuits to continuing operations. Additionally, the Company’s net income in the year-ago period included a $72.7 million gain from the sale of Liberty Safe in August 2021. Operating income for the third quarter of 2022 increased 16% to $48.7 million compared to $41.9 million in the third quarter of 2021.

Adjusted Earnings (see “Note Regarding Use of Non-GAAP Financial Measures” below) for the third quarter of 2022 increased 28% to $46.0 million compared to $35.8 million in the third quarter of 2021. CODI's weighted average number of shares outstanding for the quarter ended September 30, 2022, was 71.9 million and, for the quarter ended September 30, 2021, was 64.9 million.

Adjusted EBITDA (see "Note Regarding Use of Non-GAAP Financial Measures" below) in the third quarter of 2022 was $98.3 million, up 27% compared to $77.6 million in the third quarter of 2021. The increase was primarily due to the strong performance across the branded consumer and niche industrial businesses on a combined basis and the impact of the PrimaLoft and Lugano acquisitions. The Company no longer adds back management fees in its calculation of Adjusted EBITDA. Management fees incurred during the third quarter were $16.7 million.

Liquidity and Capital Resources

As of September 30, 2022, CODI had approximately $61.3 million in cash and cash equivalents, $113 million outstanding on its revolver, $397.5 million outstanding in term loans, $1.0 billion outstanding in 5.250% Senior Notes due 2029 and $300 million outstanding in 5.000% Senior Notes due 2032.

As of September 30, 2022, the Company had no significant debt maturities until 2027 and had net borrowing availability of approximately $485 million under its revolving credit facility.

Third Quarter 2022 Distributions

On October 4, 2022, CODI's Board of Directors (the “Board”) declared a third quarter distribution of $0.25 per share on the Company's common shares. The cash distribution was paid on October 27, 2022, to all holders of record of common shares as of October 20, 2022.

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, July 30, 2022, up to, but excluding, October 30, 2022. The distribution for such period was payable on October 30, 2022, to all holders of record of Series A Preferred Shares as of October 15, 2022. The payment occurred on October 31, 2022, the next business day following the payment date.

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, July 30, 2022, up to, but excluding, October 30, 2022. The distribution for such period was payable on October 30, 2022 to all holders of record of Series B Preferred Shares as of October 15, 2022. The payment occurred on October 31, 2022, the next business day following the payment date.

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, July 30, 2022, up to, but excluding, October 30, 2022. The distribution for such period was payable on October 30, 2022 to all holders of record of Series C Preferred Shares as of October 15, 2022. The payment occurred on October 31, 2022, the next business day following the payment date.

Increases 2022 Outlook

As a result of CODI’s strong financial performance in the third quarter, its expectations for the remainder of 2022 and its current view of the economy, the Company is raising its outlook. CODI expects its current subsidiaries to produce consolidated subsidiary Adjusted EBITDA for the full year 2022 of between $460 million and $470 million. This estimate is based on the summation of the Company’s expectations for its current subsidiaries in 2022, absent additional acquisitions or divestitures, includes a reduction for management fees paid at the subsidiaries of approximately $7.5 million and excludes corporate expenses such as interest expense, management fees paid at CODI and corporate overhead. In addition, the Company expects to earn between $145 million and $155 million in Adjusted Earnings for the full year 2022.

Conference Call

Management will host a conference call on Thursday, November 3, 2022, 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) 396-8049 and the dial-in number for international callers is (416) 764-8646. The Conference ID is 66435663. 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 Thursday, November 10, 2022. 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 reflects important financial measures as it 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. We believe Adjusted EBITDA and Adjusted Earnings are also useful in measuring our ability to service debt and other payment obligations.

Pro forma net sales is defined as net sales including the historical net sales relating to the pre-acquisition periods of Lugano and PrimaLoft, assuming that the Company acquired Lugano and PrimaLoft on January 1, 2021. 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 2022 Adjusted EBITDA or 2022 Adjusted Earnings to their comparable GAAP measure 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 (“CODI”)

Since its founding in 1998, CODI has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche 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 2022 Adjusted EBITDA, our 2022 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; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, 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); general considerations associated with the COVID-19 pandemic and its impact on the markets in which we operate; 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 divestitures 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:

Media Contact:

irinquiry@compassdiversified.com

The IGB Group

 

Leon Berman

Cody Slach

212.477.8438

Gateway Group

lberman@igbir.com

949.574.3860

 

CODI@gatewayir.com

 



Compass Diversified Holdings
Condensed Consolidated Balance Sheets

 

 

 

 

 

September 30, 2022

 

December 31, 2021

(in thousands)

(Unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

61,252

 

$

160,733

Accounts receivable, net

 

326,266

 

 

277,710

Inventories, net

 

725,902

 

 

565,743

Prepaid expenses and other current assets

 

81,130

 

 

57,006

Total current assets

 

1,194,550

 

 

1,061,192

Property, plant and equipment, net

 

193,749

 

 

186,477

Goodwill

 

1,194,251

 

 

882,083

Intangible assets, net

 

1,096,020

 

 

872,690

Other non-current assets

 

162,727

 

 

141,819

Total assets

$

3,841,297

 

$

3,144,261

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

100,511

 

$

124,203

Accrued expenses

 

211,633

 

 

190,348

Due to related party

 

15,368

 

 

12,802

Current portion, long-term debt

 

10,000

 

 

Other current liabilities

 

39,378

 

 

34,269

Total current liabilities

 

376,890

 

 

361,622

Deferred income taxes

 

153,202

 

 

97,763

Long-term debt

 

1,784,365

 

 

1,284,826

Other non-current liabilities

 

134,857

 

 

115,520

Total liabilities

 

2,449,314

 

 

1,859,731

Stockholders' equity

 

 

 

Total stockholders' equity attributable to Holdings

 

1,171,565

 

 

1,111,816

Noncontrolling interest

 

220,418

 

 

172,714

Total stockholders' equity

 

1,391,983

 

 

1,284,530

Total liabilities and stockholders’ equity

$

3,841,297

 

$

3,144,261

 

 

 

 

Compass Diversified Holdings
Consolidated Statements of Operations
(Unaudited)

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

(in thousands, except per share data)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net sales

$

597,607

 

 

$

488,158

 

 

$

1,669,123

 

 

$

1,372,266

 

Cost of sales

 

358,291

 

 

 

296,027

 

 

 

996,210

 

 

 

818,307

 

Gross profit

 

239,316

 

 

 

192,131

 

 

 

672,913

 

 

 

553,959

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative expense

 

148,700

 

 

 

118,818

 

 

 

403,428

 

 

 

337,815

 

Management fees

 

16,717

 

 

 

12,398

 

 

 

46,304

 

 

 

34,504

 

Amortization expense

 

25,152

 

 

 

19,056

 

 

 

67,191

 

 

 

56,502

 

Operating income

 

48,747

 

 

 

41,859

 

 

 

155,990

 

 

 

125,138

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense, net

 

(22,799

)

 

 

(13,855

)

 

 

(57,737

)

 

 

(42,607

)

Amortization of debt issuance costs

 

(1,004

)

 

 

(759

)

 

 

(2,735

)

 

 

(2,167

)

Loss on debt extinguishment

 

(534

)

 

 

 

 

 

(534

)

 

 

(33,305

)

Other income (expense), net

 

(2,141

)

 

 

1,031

 

 

 

606

 

 

 

(1,906

)

Net income from continuing operations before income taxes

 

22,269

 

 

 

28,276

 

 

 

95,590

 

 

 

45,153

 

Provision for income taxes

 

21,163

 

 

 

9,556

 

 

 

39,201

 

 

 

24,662

 

Income from continuing operations

 

1,106

 

 

 

18,720

 

 

 

56,389

 

 

 

20,491

 

Income (loss) from discontinued operations, net of income tax

 

 

 

 

(1,309

)

 

 

 

 

 

7,665

 

Gain on sale of discontinued operations

 

1,479

 

 

 

72,745

 

 

 

6,893

 

 

 

72,745

 

Net income

 

2,585

 

 

 

90,156

 

 

 

63,282

 

 

 

100,901

 

Less: Net income from continuing operations attributable to noncontrolling interest

 

4,359

 

 

 

2,201

 

 

 

14,927

 

 

 

7,915

 

Less: Net income (loss) from discontinued operations attributable to noncontrolling interest

 

 

 

 

(145

)

 

 

 

 

 

522

 

Net income (loss) attributable to Holdings

$

(1,774

)

 

$

88,100

 

 

$

48,355

 

 

$

92,464

 

 

 

 

 

 

 

 

 

Amounts attributable to Holdings

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(3,253

)

 

 

16,519

 

 

 

41,462

 

 

 

12,576

 

Income (loss) from discontinued operations

 

 

 

 

(1,164

)

 

 

 

 

 

7,143

 

Gain on sale of discontinued operations, net of income tax

 

1,479

 

 

 

72,745

 

 

 

6,893

 

 

 

72,745

 

Net income (loss) attributable to Holdings

$

(1,774

)

 

$

88,100

 

 

$

48,355

 

 

$

92,464

 

 

 

 

 

 

 

 

 

Basic income (loss) per common share attributable to Holdings

 

 

 

 

 

 

 

Continuing operations

$

(0.23

)

 

$

(0.13

)

 

$

0.10

 

 

$

(0.46

)

Discontinued operations

 

0.02

 

 

 

1.10

 

 

 

0.10

 

 

 

1.23

 

 

$

(0.21

)

 

$

0.97

 

 

$

0.20

 

 

$

0.77

 

 

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

71,910

 

 

 

65,008

 

 

 

70,514

 

 

 

64,936

 

 

 

 

 

 

 

 

 

Cash distributions declared per Trust common share

$

0.25

 

 

$

1.24

 

 

$

0.75

 

 

$

1.96

 

Compass Diversified Holdings
Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA
(Unaudited)

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

(in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income

$

2,585

 

 

$

90,156

 

 

$

63,282

 

 

$

100,901

 

Gain on sale of discontinued operations

 

1,479

 

 

 

72,745

 

 

 

6,893

 

 

 

72,745

 

Income (loss) from discontinued operations, net of tax

 

 

 

 

(1,309

)

 

 

 

 

 

7,665

 

Income from continuing operations

$

1,106

 

 

$

18,720

 

 

$

56,389

 

 

$

20,491

 

Less: income from continuing operations attributable to noncontrolling interest

 

4,359

 

 

 

2,201

 

 

 

14,927

 

 

 

7,915

 

Net income (loss) attributable to Holdings - continuing operations

$

(3,253

)

 

$

16,519

 

 

$

41,462

 

 

$

12,576

 

Adjustments:

 

 

 

 

 

 

 

Distributions paid - Preferred Shares

 

(6,045

)

 

 

(6,045

)

 

 

(18,136

)

 

 

(18,136

)

Amortization expense - intangibles and inventory step up

 

26,241

 

 

 

19,056

 

 

 

72,092

 

 

 

56,502

 

Loss on debt extinguishment

 

534

 

 

 

 

 

 

534

 

 

 

33,305

 

Stock compensation

 

3,242

 

 

 

2,892

 

 

 

8,851

 

 

 

8,496

 

Acquisition expenses

 

5,902

 

 

 

1,866

 

 

 

6,118

 

 

 

2,176

 

Integration Services Fee

 

1,625

 

 

 

1,100

 

 

 

2,750

 

 

 

4,300

 

Held-for-sale tax impact - corporate

 

16,457

 

 

 

 

 

 

12,119

 

 

 

 

Other

 

1,287

 

 

 

460

 

 

 

4,116

 

 

 

(609

)

Adjusted Earnings

$

45,990

 

 

$

35,848

 

 

$

129,906

 

 

$

98,610

 

Plus (less):

 

 

 

 

 

 

 

Depreciation

 

11,284

 

 

 

10,372

 

 

 

32,589

 

 

 

28,896

 

Income taxes

 

21,163

 

 

 

9,556

 

 

 

39,201

 

 

 

24,662

 

Held-for-sale tax impact - corporate

 

(16,457

)

 

 

 

 

 

(12,119

)

 

 

 

Interest expense, net

 

22,799

 

 

 

13,855

 

 

 

57,737

 

 

 

42,607

 

Amortization of debt issuance

 

1,004

 

 

 

759

 

 

 

2,735

 

 

 

2,167

 

Noncontrolling interest

 

4,359

 

 

 

2,201

 

 

 

14,927

 

 

 

7,915

 

Preferred distributions

 

6,045

 

 

 

6,045

 

 

 

18,136

 

 

 

18,136

 

Other expense (income)

 

2,139

 

 

 

(1,032

)

 

 

(606

)

 

 

1,906

 

Adjusted EBITDA

$

98,326

 

 

$

77,604

 

 

$

282,506

 

 

$

224,899

 

Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Three months ended September 30, 2022
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

5.11

 

BOA

 

Ergo

 

Lugano

 

Marucci Sports

 

PrimaLoft

 

Velocity Outdoor

 

ACI

 

Altor Solutions

 

Arnold

 

Sterno

 

Consolidated

Income (loss) from continuing operations

 

$

(29,950

)

 

$

5,905

 

$

8,935

 

 

$

(759

)

 

$

8,095

 

$

4,230

 

 

$

(8,492

)

 

$

4,679

 

$

2,426

 

$

2,765

 

$

3,475

 

$

(203

)

 

$

1,106

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

 

16,457

 

 

 

1,906

 

 

1,776

 

 

 

(410

)

 

 

1,166

 

 

1,609

 

 

 

(3,570

)

 

 

1,416

 

 

671

 

 

805

 

 

537

 

 

(1,200

)

 

 

21,163

Interest expense, net

 

 

22,725

 

 

 

2

 

 

(7

)

 

 

 

 

 

3

 

 

3

 

 

 

(4

)

 

 

70

 

 

 

 

 

 

7

 

 

 

 

 

22,799

Intercompany interest

 

 

(28,762

)

 

 

3,503

 

 

1,808

 

 

 

1,737

 

 

 

3,263

 

 

1,812

 

 

 

3,251

 

 

 

2,997

 

 

1,621

 

 

2,821

 

 

1,402

 

 

4,547

 

 

 

Loss on debt extinguishment

 

 

534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

534

Depreciation and amortization expense

 

 

285

 

 

 

5,766

 

 

5,577

 

 

 

2,033

 

 

 

3,083

 

 

2,504

 

 

 

4,194

 

 

 

3,420

 

 

538

 

 

4,124

 

 

1,936

 

 

5,069

 

 

 

38,529

EBITDA

 

 

(18,711

)

 

 

17,082

 

 

18,089

 

 

 

2,601

 

 

 

15,610

 

 

10,158

 

 

 

(4,621

)

 

 

12,582

 

 

5,256

 

 

10,515

 

 

7,357

 

 

8,213

 

 

 

84,131

Other (income) expense

 

 

(73

)

 

 

709

 

 

403

 

 

 

 

 

 

 

 

(1

)

 

 

260

 

 

 

971

 

 

224

 

 

110

 

 

 

 

(463

)

 

 

2,140

Non-controlling shareholder compensation

 

 

 

 

 

381

 

 

621

 

 

 

362

 

 

 

356

 

 

537

 

 

 

 

 

 

240

 

 

124

 

 

375

 

 

13

 

 

232

 

 

 

3,241

Acquisition expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,680

 

 

 

222

 

 

 

 

 

 

 

 

 

 

 

5,902

Integration services fee

 

 

 

 

 

 

 

 

 

 

 

 

 

562

 

 

 

 

 

1,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,625

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

853

 

 

 

 

 

 

434

 

 

 

1,287

Adjusted EBITDA

 

$

(18,784

)

 

$

18,172

 

$

19,113

 

 

$

2,963

 

 

$

16,528

 

$

10,694

 

 

$

2,382

 

 

$

14,015

 

$

6,457

 

$

11,000

 

$

7,370

 

$

8,416

 

 

$

98,326

Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Three months ended September 30, 2021
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

5.11

 

 

BOA

 

Ergo

 

Lugano

Marucci Sports

 

Velocity Outdoor

 

ACI

 

Altor Solutions

 

Arnold

 

Sterno

 

Consolidated

Income (loss) from continuing operations

$

(10,553

)

 

$

5,223

 

 

$

4,256

 

$

(531

)

 

$

681

$

2,235

 

 

$

8,568

 

 

$

3,821

 

$

2,594

 

 

$

2,245

 

 

$

181

 

 

$

18,720

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

 

 

 

1,830

 

 

 

700

 

 

329

 

 

 

304

 

631

 

 

 

2,334

 

 

 

1,093

 

 

1,336

 

 

 

1,058

 

 

 

(58

)

 

 

9,557

 

Interest expense, net

 

13,813

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

35

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

13,855

 

Intercompany interest

 

(17,717

)

 

 

2,960

 

 

 

1,958

 

 

441

 

 

 

548

 

697

 

 

 

1,902

 

 

 

1,792

 

 

1,657

 

 

 

1,313

 

 

 

4,449

 

 

 

 

Depreciation and amortization

 

243

 

 

 

5,868

 

 

 

5,149

 

 

2,050

 

 

 

70

 

2,155

 

 

 

3,161

 

 

 

557

 

 

3,206

 

 

 

2,005

 

 

 

5,722

 

 

 

30,186

 

EBITDA

 

(14,214

)

 

 

15,882

 

 

 

12,063

 

 

2,289

 

 

 

1,603

 

5,719

 

 

 

16,000

 

 

 

7,263

 

 

8,793

 

 

 

6,626

 

 

 

10,294

 

 

 

72,318

 

Other (income) expense

 

(433

)

 

 

(2

)

 

 

110

 

 

 

 

 

22

 

(11

)

 

 

(2

)

 

 

55

 

 

(267

)

 

 

(51

)