Compass Diversified Stock Price, News & Analysis

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

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

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

Compass Diversified (NYSE: CODI) will host its Investor Day on January 19, 2023, at 11 am ET in New York City. The event will include presentations from CODI management and its subsidiary, PrimaLoft, along with Q&A sessions. The agenda features:

• 11:00am – 11:40am: Check-in and CODI’s consumer business walkthrough
• 11:40am – 12:00pm: PrimaLoft product experience
• 12:00pm – 12:30pm: Lunch
• 12:15pm – 12:45pm: PrimaLoft presentation
• 12:45pm – 1:30pm: Compass Diversified presentation

RSVP for in-person attendance or register for virtual attendance.

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

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

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

Compass Diversified (CODI) has announced a quarterly cash distribution of $0.25 per share for common shares, payable on October 27, 2022. The record date for this payment is October 20, 2022. Additional distributions for preferred shares are also declared, with $0.453125 for Series A, $0.4921875 for Series B, and $0.4921875 for Series C, all payable on October 30, 2022. These distributions generally qualify as “qualified dividends” for U.S. federal income tax, ensuring beneficial tax treatment for shareholders.

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