UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
COMPASS GROUP DIVERSIFIED HOLDINGS LLC
(Exact name of registrant as specified in its charter)
| Delaware | 001-34926 | 20-3812051 | ||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (203 ) 221-1703
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Section 2 Financial Information
Item 2.02 Results of Operations and Financial Condition
On November 3, 2022, Compass Diversified Holdings (NYSE: CODI) and Compass Group Diversified Holdings LLC (collectively “CODI”) issued a press release announcing its consolidated operating results for the three and nine months ended September 30, 2022. A copy of the press release is furnished within this report as Exhibit 99.1.
Section 7 Regulation FD
Item 7.01 Regulation FD Disclosure
CODI has updated its investor presentation and will make it available on its website at ir.compassdiversified.com. CODI management uses this presentation from time to time when interacting with investors and analysts to discuss the operations and strategies of our businesses.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 3, 2022 | COMPASS DIVERSIFIED HOLDINGS | ||||||||||
| By: | /s/ Ryan J. Faulkingham | ||||||||||
| Ryan J. Faulkingham | |||||||||||
| Regular Trustee | |||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 3, 2022 | COMPASS GROUP DIVERSIFIED HOLDINGS LLC | ||||||||||
| By: | /s/ Ryan J. Faulkingham | ||||||||||
| Ryan J. Faulkingham | |||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 99.1
Compass Diversified Reports Record Third Quarter 2022 Financial Results
Net Sales Growth of 22% Drives Record Quarterly Results
Raises 2022 Outlook Given Continued Strong Performance
Westport, Conn., November 3, 2022 – 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.”
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: | |||||||
| Compass Diversified | The IGB Group | |||||||
| irinquiry@CompassDiversified.com | Leon Berman | |||||||
| 212.477.8438 | ||||||||
| lberman@igbir.com | ||||||||
| Cody Slach | ||||||||
| Gateway Group | ||||||||
| 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) | (453) | (1,032) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 639 | 572 | 434 | — | 275 | 253 | 124 | 257 | 8 | 330 | 2,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition expenses | 39 | — | — | — | 1,827 | — | — | — | — | — | — | 1,866 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integration services fees | — | — | 1,100 | — | — | — | — | — | — | — | — | 1,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 187 | 273 | — | — | — | — | — | — | — | — | — | 460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | (14,421) | $ | 16,792 | $ | 13,845 | $ | 2,723 | $ | 3,452 | $ | 5,983 | $ | 16,251 | $ | 7,442 | $ | 8,783 | $ | 6,583 | $ | 10,171 | $ | 77,604 | ||||||||||||||||||||||||||||||||||||||||||||
(1) As a result of the sale of Liberty Safe in August 2021, Adjusted EBITDA for the three months ended September 30, 2021 does not include $0.2 million in Adjusted EBITDA from Liberty.
Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Nine 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 | $ | (51,431) | $ | 15,540 | $ | 37,122 | $ | (634) | $ | 21,871 | $ | 8,374 | $ | (8,492) | $ | 7,826 | $ | 9,510 | $ | 7,149 | $ | 7,217 | $ | 2,337 | $ | 56,389 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 12,119 | 4,999 | 6,819 | 432 | 5,863 | 2,821 | (3,570) | 2,372 | 2,600 | 2,907 | 2,768 | (929) | 39,201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 57,559 | 12 | (19) | 2 | 12 | 13 | (4) | 142 | — | — | 20 | — | 57,737 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intercompany interest | (71,727) | 9,501 | 5,634 | 4,000 | 7,841 | 4,649 | 3,251 | 6,987 | 4,851 | 7,844 | 3,947 | 13,222 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 534 | — | — | — | — | — | — | — | — | — | — | — | 534 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 862 | 16,804 | 16,345 | 6,061 | 8,385 | 9,558 | 4,194 | 9,981 | 1,634 | 12,254 | 6,065 | 15,272 | 107,415 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (52,084) | 46,856 | 65,901 | 9,861 | 43,972 | 25,415 | (4,621) | 27,308 | 18,595 | 30,154 | 20,017 | 29,902 | 261,276 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense | (73) | 93 | 498 | 4 | 2 | (1,829) | 260 | 1,154 | 251 | 219 | — | (1,185) | (606) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 1,210 | 1,889 | 1,154 | 800 | 1,089 | — | 742 | 372 | 910 | 38 | 647 | 8,851 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition expenses | — | — | — | — | — | — | 5,680 | 222 | — | 216 | — | — | 6,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integration services fee | — | — | — | — | 1,688 | — | 1,063 | — | — | — | — | — | 2,751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | 250 | — | 1,802 | — | — | 853 | — | — | 1,211 | 4,116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (52,157) | $ | 48,159 | $ | 68,288 | $ | 11,269 | $ | 46,462 | $ | 26,477 | $ | 2,382 | $ | 29,426 | $ | 20,071 | $ | 31,499 | $ | 20,055 | $ | 30,575 | $ | 282,506 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Compass Diversified Holdings
Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Nine 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 | $ | (64,717) | $ | 14,318 | $ | 16,908 | $ | 3,071 | $ | 681 | $ | 9,485 | $ | 19,157 | 10,366 | $ | 5,892 | $ | 3,839 | $ | 1,491 | $ | 20,491 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | — | 4,857 | 2,165 | 1,357 | 304 | 2,920 | 5,381 | 2,547 | 2,867 | 2,062 | 202 | 24,662 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 42,464 | 8 | — | — | — | 5 | 125 | — | — | 5 | — | 42,607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intercompany interest | (53,234) | 8,743 | 6,320 | 1,514 | 548 | 1,890 | 5,586 | 5,484 | 5,075 | 4,128 | 13,946 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 33,305 | — | — | — | — | — | — | — | — | — | — | 33,305 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 642 | 16,762 | 15,033 | 6,377 | 70 | 6,377 | 9,489 | 1,658 | 9,022 | 5,822 | 16,313 | 87,565 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (41,540) | 44,688 | 40,426 | 12,319 | 1,603 | 20,677 | 39,738 | 20,055 | 22,856 | 15,856 | 31,952 | 208,630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense | (286) | (302) | 190 | — | 22 | 881 | 2,611 | 123 | (399) | (51) | (883) | 1,906 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 1,926 | 1,655 | 1,241 | — | 826 | 777 | 372 | 770 | 16 | 913 | 8,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition expenses | 39 | — | — | — | 1,827 | — | — | — | — | 310 | — | 2,176 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integration services fees | — | — | 3,300 | — | — | 1,000 | — | — | — | — | — | 4,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 1,085 | 273 | — | — | — | (2,300) | — | — | — | 333 | (609) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | (40,702) | $ | 46,585 | $ | 45,571 | $ | 13,560 | $ | 3,452 | $ | 23,384 | $ | 40,826 | $ | 20,550 | $ | 23,227 | $ | 16,131 | $ | 32,315 | $ | 224,899 | |||||||||||||||||||||||||||||||||||||||||||||||
(1) As a result of the sale of Liberty Safe in August 2021, Adjusted EBITDA for the nine months ended September 30, 2021 does not include $12.7 million in Adjusted EBITDA from Liberty.
Compass Diversified Holdings
Non-GAAP Adjusted EBITDA
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Branded Consumer | ||||||||||||||||||||||||||
| 5.11 | $ | 18,172 | $ | 16,792 | $ | 48,159 | $ | 46,585 | ||||||||||||||||||
| BOA | 19,113 | 13,845 | 68,288 | 45,571 | ||||||||||||||||||||||
| Ergobaby | 2,963 | 2,723 | 11,269 | 13,560 | ||||||||||||||||||||||
Lugano (1) | 16,528 | 3,452 | 46,462 | 3,452 | ||||||||||||||||||||||
Marucci Sports | 10,694 | 5,983 | 26,477 | 23,384 | ||||||||||||||||||||||
PrimaLoft (2) | 2,382 | — | 2,382 | — | ||||||||||||||||||||||
| Velocity Outdoor | 14,015 | 16,251 | 29,426 | 40,826 | ||||||||||||||||||||||
| Total Branded Consumer | $ | 83,867 | $ | 59,046 | $ | 232,463 | $ | 173,378 | ||||||||||||||||||
| Niche Industrial | ||||||||||||||||||||||||||
| Advanced Circuits | $ | 6,457 | $ | 7,442 | $ | 20,071 | $ | 20,550 | ||||||||||||||||||
| Altor Solutions | 11,000 | 8,783 | 31,499 | 23,227 | ||||||||||||||||||||||
| Arnold Magnetics | 7,370 | 6,583 | 20,055 | 16,131 | ||||||||||||||||||||||
| Sterno | 8,416 | 10,171 | 30,575 | 32,315 | ||||||||||||||||||||||
| Total Niche Industrial | $ | 33,243 | $ | 32,979 | $ | 102,200 | $ | 92,223 | ||||||||||||||||||
Corporate expense | (18,784) | (14,421) | (52,157) | (40,702) | ||||||||||||||||||||||
| Total Adjusted EBITDA | $ | 98,326 | $ | 77,604 | $ | 282,506 | $ | 224,899 | ||||||||||||||||||
| (1) | The above results for Lugano do not include management's estimate of Adjusted EBITDA, before the Company's ownership, of $5.5 million and $24.1 million, respectively, for the three and nine months ended September 30, 2021. Lugano was acquired on September 3, 2021. | |||||||
| (2) | The above results for PrimaLoft do not include management's estimate of Adjusted EBITDA, before the Company's ownership, of $1.4 million and $24.8 million, respectively, for the three and nine months ended September 30, 2022, and $4.2 million and $20.1 million, respectively, for the three and nine months ended September 30, 2021. PrimaLoft was acquired on July 12, 2022. | |||||||
Compass Diversified Holdings
Net Sales to Pro Forma Net Sales Reconciliation
(unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Net Sales | $ | 597,607 | $ | 488,158 | $ | 1,669,123 | $ | 1,372,266 | ||||||||||||||||||
Acquisitions (1) | 2,319 | 31,581 | 55,185 | 123,446 | ||||||||||||||||||||||
| Pro Forma Net Sales | $ | 599,926 | $ | 519,739 | $ | 1,724,308 | $ | 1,495,712 | ||||||||||||||||||
(1) Acquisitions reflects the net sales for Lugano and PrimaLoft on a pro forma basis as if the Company had acquired these businesses on January 1, 2021.
Compass Diversified Holdings
Subsidiary Pro Forma Net Sales
(unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Branded Consumer | ||||||||||||||||||||||||||
| 5.11 | $ | 126,537 | $ | 111,099 | $ | 350,608 | $ | 321,009 | ||||||||||||||||||
| BOA | 50,019 | 39,496 | 166,215 | 120,033 | ||||||||||||||||||||||
| Ergobaby | 21,540 | 19,816 | 68,256 | 69,100 | ||||||||||||||||||||||
Lugano (1) | 51,145 | 29,498 | 137,229 | 81,881 | ||||||||||||||||||||||
| Marucci Sports | 42,753 | 25,040 | 122,481 | 86,328 | ||||||||||||||||||||||
PrimaLoft (1) | 13,031 | 12,906 | 65,897 | 52,388 | ||||||||||||||||||||||
| Velocity Outdoor | 75,482 | 76,901 | 180,774 | 205,891 | ||||||||||||||||||||||
| Total Branded Consumer | $ | 380,507 | $ | 314,756 | $ | 1,091,460 | $ | 936,630 | ||||||||||||||||||
| Niche Industrial | ||||||||||||||||||||||||||
| Advanced Circuits | $ | 21,788 | $ | 23,182 | $ | 67,194 | $ | 67,209 | ||||||||||||||||||
| Altor Solutions | 69,618 | 44,122 | 199,590 | 122,582 | ||||||||||||||||||||||
| Arnold Magnetics | 39,377 | 36,852 | 116,319 | 101,893 | ||||||||||||||||||||||
| Sterno | 88,636 | 100,827 | 249,745 | 267,398 | ||||||||||||||||||||||
| Total Niche Industrial | $ | 219,419 | $ | 204,983 | $ | 632,848 | $ | 559,082 | ||||||||||||||||||
| Total Subsidiary Net Sales | $ | 599,926 | $ | 519,739 | $ | 1,724,308 | $ | 1,495,712 | ||||||||||||||||||
(1) Net sales for Lugano and PrimaLoft are pro forma as if the Company had acquired these businesses on January 1, 2021. Historical net sales for Lugano prior to acquisition on September 3, 2021 were $18.7 million and $71.2 million, respectively, for the three and nine months ended September 30, 2021. Historical net sales for PrimaLoft prior to acquisition on July 12, 2022 were $2.3 million and $55.2 million, respectively, for the three and nine months ended September 30, 2022, and $12.9 million and $52.4 million, respectively, for the three and nine months ended September 30, 2021.
Compass Diversified Holdings
Condensed Consolidated Cash Flows
(unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (4,585) | $ | 37,714 | $ | (39,923) | $ | 147,148 | |||||||||||||||
| Net cash used in investing activities | (576,713) | (149,733) | (598,951) | (202,429) | |||||||||||||||||||
| Net cash provided by financing activities | 538,531 | 72,195 | 542,128 | 54,872 | |||||||||||||||||||
| Foreign currency impact on cash | (1,603) | (104) | (2,735) | (96) | |||||||||||||||||||
| Net decrease in cash and cash equivalents | (44,370) | (39,928) | (99,481) | (505) | |||||||||||||||||||
| Cash and cash equivalents - beginning of the period | 105,622 | 110,167 | 160,733 | 70,744 | |||||||||||||||||||
| Cash and cash equivalents - end of the period | $ | 61,252 | $ | 70,239 | $ | 61,252 | $ | 70,239 | |||||||||||||||
| Compass Diversified Holding | ||||||||||||||||||||||||||
| Selected Financial Data - Cash Flows | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Changes in operating assets and liabilities | $ | (63,998) | $ | (11,566) | $ | (223,164) | $ | (14,720) | ||||||||||||||||||
| Purchases of property and equipment | $ | (15,086) | $ | (11,423) | $ | (39,683) | $ | (28,001) | ||||||||||||||||||
| Distributions paid - common shares | $ | (17,931) | $ | (80,476) | $ | (52,794) | $ | (127,204) | ||||||||||||||||||
| Distributions paid - preferred shares | $ | (6,045) | $ | (6,045) | $ | (18,136) | $ | (18,136) | ||||||||||||||||||