Compass Diversified Holdings (NYSE: CODI)

Press Release

Press Release

<< Back
10/30/19
Compass Diversified Holdings Reports Third Quarter 2019 Financial Results

Generates Solid Revenue and Cash Flow, Exceeding Management’s Expectations

Branded Consumer Segment Generates Strong Results, Highlighted by 5.11 Tactical’s Double-Digit Revenue Growth

WESTPORT, Conn., Oct. 30, 2019 (GLOBE NEWSWIRE) -- Compass Diversified Holdings (NYSE: CODI) (“CODI,” “we,” “our” or the “Company”), an owner of leading middle market businesses, announced today its consolidated operating results for the three months ended September 30, 2019.

Third Quarter 2019 Highlights

  • Reported net sales of $388.3 million;
  • Reported net loss of $26.5 million inclusive of $33.4 million non-cash impairment charge at Velocity and $4.9 million loss on the sale of Tilray shares;
  • Reported non-GAAP Adjusted EBITDA of $63.8 million;
  • Reported Cash Provided by Operating Activities of $22.9 million, and Generated non-GAAP Cash Flow Available for Distribution and Reinvestment (“CAD”) of $30.2 million for the third quarter of 2019;
  • Paid a third quarter 2019 cash distribution of $0.36 per share on CODI’s common shares in October 2019, bringing cumulative distributions paid to $18.5952 per common share since CODI’s IPO in May of 2006;
  • Paid a quarterly cash distribution of $0.453125 per share on the Company’s 7.250% Series A Preferred Shares and $0.4921875 per share on the Company's 7.875% Series B Preferred Shares in October 2019;
  • Received approximately C$64 million of deferred consideration from the sale of Manitoba Harvest, comprised of cash and Tilray shares.

“During the third quarter our group of leading and diversified businesses generated solid revenue and cash flow, exceeding our expectations,” said Elias Sabo, CEO of Compass Diversified Holdings. “We are especially pleased with the performance of our branded consumer businesses, driven by 5.11 Tactical’s double digit revenue and EBITDA growth. 5.11 continues to exceed our expectations, as the company successfully expands into a consumer lifestyle apparel business. During the third quarter, 5.11 continued to invest in its omni channel consumer strategy, adding experiential retail stores and enhancing its online capabilities. We are pleased with 5.11’s progress and believe in its transformational potential for CODI, as 5.11 expands to meet the needs of its passionate and highly engaged customer base.”

Mr. Sabo continued, “Following the two opportunistic divestitures in the first half of 2019, we received C$64 million in deferred consideration from the sale of Manitoba Harvest in the third quarter of 2019.  During the third quarter, we sold all of our shares in Tilray received as part of the consideration, and have now successfully monetized all of the proceeds from the Manitoba Harvest sale and realized a gain of $121.7 million on our investment. The sales of Manitoba Harvest and Clean Earth in 2019 have resulted in significantly less financial leverage and greatly enhanced liquidity, positioning CODI with the strongest balance sheet in our history. Since going public in 2006, we have now realized gains for our shareholders in excess of $1 billion, and we have paid a sizeable and consistent distribution to our common shareholders, now reaching nearly $18.60, or 124% of our IPO price.  Based on the strength of our third quarter financial results, we now expect our fourth quarter results to exceed our original expectations.”

Operating Results

Net sales for the quarter ended September 30, 2019 were $388.3 million, as compared to $360.3 million for the quarter ended September 30, 2018. The September 30, 2018 net sales do not include net sales attributable to Ravin prior to CODI’s ownership.

Net loss for the quarter ended September 30, 2019 was $26.5 million, as compared to net income of $5.8 million for the quarter ended September 30, 2018.  CODI recorded a $33.4 million impairment at our Velocity Outdoor subsidiary during the quarter ended September 30, 2019.

Adjusted EBITDA (see Note Regarding Use of Non-GAAP Financial Measures below) for the quarter ended September 30, 2019 was $63.8 million, as compared to $57.9 million for the quarter ended September 30, 2018. Adjusted EBITDA does not include the results of Ravin prior to CODI’s ownership.

CODI reported CAD (see Note Regarding Use of Non-GAAP Financial Measures below) of $30.2 million for the quarter ended September 30, 2019, as compared to $26.4 million for the prior year’s comparable quarter.  CODI’s CAD is calculated after taking into account all interest expense, cash taxes paid and maintenance capital expenditures, and includes the operating results of each of our businesses for the periods during which CODI owned them. However, CAD excludes the gains from monetizing interests in CODI’s subsidiaries, which have totaled over $1 billion since going public in 2006. The increase in CAD over the prior year quarter is primarily the result of 5.11 Tactical’s improved operating performance, lower maintenance capital expenditures at our existing businesses, offset by the loss of cash flow from our two divestitures in the first half of 2019.

Liquidity and Capital Resources

For the quarter ended September 30, 2019, CODI reported Cash Provided by Operating Activities of $22.9 million, as compared to Cash Provided by Operating Activities of $23.5 million for the quarter ended September 30, 2018.

CODI’s weighted average number of shares outstanding for the quarters ended September 30, 2019 and September 30, 2018 were 59.9 million.

As of September 30, 2019, CODI had approximately $285.8 million in cash and cash equivalents, $298.8 million outstanding on its term loan facility, $400 million outstanding in 8.00% Senior Notes due 2026 and no outstanding borrowings under its revolving credit facility.  In July 2019, CODI repaid $193.8 million on its term loan facility.

The Company has no significant debt maturities until 2023 and had net borrowing availability of $596.4 million at September 30, 2019 under its revolving credit facility.

Concurrent with the June 2019 sale of Clean Earth, Compass Group Management volunteered to waive the management fee on cash balances held at CODI, commencing with the management fee due for the quarter ended June 30, 2019 and continuing until the quarter during which the Company next borrows under its revolving credit facility.

Third Quarter 2019 Distributions

On October 3, 2019, CODI’s Board of Directors (the “Board”) declared a third quarter distribution of $0.36 per share on the Company’s common shares. The cash distribution was paid on October 24, 2019 to all holders of record of common shares as of October 17, 2019. Since its IPO in May of 2006, CODI has paid a cumulative distribution of $18.5952 per common share.

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 covered the period from and including July 30, 2019, up to, but excluding, October 30, 2019. The distribution for such period was paid on October 30, 2019 to all holders of record of Series A Preferred Shares as of October 15, 2019.

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 covered the period from and including July 30, 2019, up to, but excluding, October 30, 2019. The distribution for such period was paid on October 30, 2019 to all holders of record of Series B Preferred Shares as of October 15, 2019.

Conference Call

Management will host a conference call on Wednesday, October 30, 2019 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 (855) 212-2368 and the dial-in number for international callers is (315) 625-6886. The access code for all callers is 3219678. A live webcast will also be available on the Company's website at https://www.compassequity.com/.

A replay of the call will be available through November 6, 2019. To access the replay, please dial (855) 859-2056 in the U.S. and (404) 537-3406 outside the U.S., and then enter the access code 3219678.

Note Regarding Use of Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP measure used by the Company to assess its performance.  We have reconciled Adjusted EBITDA to Net Income (Loss) on the attached schedules. We consider Net Income (Loss) to be the most directly comparable GAAP financial measure to Adjusted EBITDA. We believe that Adjusted EBITDA 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), Adjusted EBITDA is limited in that it does 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. This presentation also 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. We believe Adjusted EBITDA is also useful in measuring our ability to service debt and other payment obligations.

CAD is a non-GAAP measure used by the Company to assess its performance, as well as its ability to sustain quarterly distributions.  We have reconciled CAD to Net Income (Loss) and Cash Flow from Operating Activities on the attached schedules. We consider Net Income (Loss) and Cash Flow from Operating Activities to be the most directly comparable GAAP financial measures to CAD.

CAD is calculated after taking into account all interest expense, cash taxes paid and maintenance capital expenditures, and includes the operating results of each of our businesses for the periods during which CODI owned them.  We believe that CAD provides investors additional information to enable them to evaluate our performance and ability to make anticipated quarterly distributions.

Neither of Adjusted EBITDA nor CAD is 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 Holdings (“CODI”)
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.

CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long term cash flow generation and value. 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 to make cash distributions to its shareholders.

Our eight majority-owned subsidiaries are engaged in the following lines of business:

  • The design and marketing of purpose-built tactical apparel and gear serving a wide range of global customers (5.11);
  • The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);
  • The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);
  • The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);
  • The design and manufacture of custom molded protective foam solutions and OE components (Foam Fabricators);
  • The design and manufacture of premium home and gun safes (Liberty Safe);
  • The manufacture and marketing of portable food warming fuels for the hospitality and consumer markets, flameless candles and house and garden lighting for the home decor market, and wickless candle products used for home decor and fragrance systems (The Sterno Group); and
  • The design, manufacture and marketing of airguns, archery products, optics and related accessories (Velocity Outdoor).

This press release may contain certain forward-looking statements, including expectations for our fourth quarter results and other statements with regard to the future performance of CODI. Words such as "believes," "expects," "projects," and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the risk factor discussion in the Form 10-K filed by CODI with the SEC for the year ended December 31, 2018 and other filings with the SEC. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Compass Diversified Holdings
Ryan J. Faulkingham
Chief Financial Officer
203.221.1703
ryan@compassequity.com
Investor Relations and Media Contact:
The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com


Compass Diversified Holdings
Condensed Consolidated Statements of Operations
(unaudited)
               
               
               
  Three months ended
September 30,
  Nine months ended
September 30,
(in thousands, except per share data) 2019   2018   2019   2018
Net sales $ 388,313     $ 360,284     $ 1,063,254     $ 986,402  
Cost of sales 251,778     236,286     684,601     640,039  
Gross profit 136,535     123,998     378,653     346,363  
Operating expenses:              
Selling, general and administrative expense 82,027     79,578     243,736     241,253  
Management fees 8,874     10,768     28,352     32,204  
Amortization expense 13,520     12,788     40,632     35,533  
Impairment expense 33,381         33,381      
Operating income (loss) (1,267 )   20,864     32,552     37,373  
Other income (expense):              
Interest expense, net (11,525 )   (15,635 )   (48,424 )   (35,227 )
Amortization of debt issuance costs (770 )   (927 )   (2,625 )   (2,978 )
Loss on paydown of debt (5,038 )       (5,038 )   (744 )
Loss on sale of Tilray securities (4,893 )       (10,193 )    
Other income (expense), net (689 )   511     (1,213 )   (2,285 )
Income (loss) from continuing operations before income taxes (24,182 )   4,813     (34,941 )   (3,861 )
Provision for income taxes 4,400     5,470     10,375     7,557  
Income (loss) from continuing operations (28,582 )   (657 )   (45,316 )   (11,418 )
Income from discontinued operations, net of income tax     6,423     16,901     14,931  
Gain on sale of discontinued operations 2,039         330,203     1,165  
Net income (loss) (26,543 )   5,766     301,788     4,678  
Less: Income from continuing operations attributable to noncontrolling interest 1,242     688     3,997     2,475  
Less: Income (loss) from discontinued operations attributable to noncontrolling interest     352     (266 )   726  
Net income (loss) attributable to Holdings $ (27,785 )   $ 4,726     $ 298,057     $ 1,477  
               
Basic income (loss) per common share attributable to Holdings            
Continuing operations $ (1.33 )   $ (0.16 )   $ (1.95 )   $ (0.45 )
Discontinued operations 0.03     0.09     5.80     0.25  
  $ (1.30 )   $ (0.07 )   $ 3.85     $ (0.20 )
               
Basic weighted average number of common shares outstanding 59,900     59,900     59,900     59,900  
               
Cash distributions declared per Trust common share $ 0.36     $ 0.36     $ 1.08     $ 1.08  
               


Compass Diversified Holdings
Net Sales to Pro Forma Net Sales Reconciliation
(unaudited)
                 
    Three months ended September 30,   Nine months ended September 30,
    2019   2018   2019   2018
                 
Net Sales   $ 388,313     $ 360,284     $ 1,063,254     $ 986,402  
Acquisitions (1)               39,828  
Pro Forma Net Sales   $ 388,313     $ 360,284     $ 1,063,254     $ 1,026,230  
                 


(1 )   Net sales of Foam Fabricators and Rimports (Sterno Group add-on) as if those businesses were acquired January 1, 2018.


Compass Diversified Holdings
Subsidiary Pro Forma Net Sales
(unaudited)
             
    Three months ended
September 30,
  Nine months ended
September 30,
(in thousands)   2019   2018   2019   2018
                 
Branded Consumer                
5.11 Tactical   $ 98,053     $ 83,342     $ 278,978     $ 252,022  
Ergobaby   23,318     24,260     68,741     70,376  
Liberty   24,729     17,872     67,566     61,741  
Velocity Outdoor (2)   46,647     34,289     107,395     94,266  
Total Branded Consumer   $ 192,747     $ 159,763     $ 522,680     $ 478,405  
                 
Niche Industrial                
Advanced Circuits   $ 21,897     $ 23,424     $ 67,405     $ 68,454  
Arnold Magnetics   30,895     29,891     90,404     90,486  
Foam Fabricators (1)   31,304     33,336     93,634     97,022  
Sterno Group (1)   111,470     113,870     289,131     291,863  
Total Niche Industrial   $ 195,566     $ 200,521     $ 540,574     $ 547,825  
                 
    $ 388,313     $ 360,284     $ 1,063,254     $ 1,026,230  


(1 )   Foam Fabricators and Rimports (Sterno Group add-on) are pro forma as if those businesses were acquired January 1, 2018.
     
(2 )   The above 2018 results exclude management's estimate of net sales of $11.9 million and $33.5 million for the three and nine months ended September 30, 2018, respectively, at Ravin before our ownership.  Ravin was acquired by Velocity Outdoor in September 2018.


Compass Diversified Holdings
Net Income to Adjusted EBITDA and Cash Flow Available for Distribution and Reinvestment
(Unaudited)
               
  Three months ended
September 30,
  Nine months ended
September 30,
(in thousands) 2019   2018   2019   2018
Net income (loss) $ (26,543 )   $ 5,766     $ 301,788     $ 4,678  
Income from discontinued operations, net of income tax     6,423     16,901     14,931  
Gain on sale of discontinued operations 2,039         330,203     1,165  
Income (loss) from continuing operations $ (28,582 )   $ (657 )   $ (45,316 )   $ (11,418 )
Provision for income taxes 4,400     5,470     10,375     7,557  
Income (loss) from continuing operations before income taxes $ (24,182 )   $ 4,813     $ (34,941 )   $ (3,861 )
Other income (expense), net (5,727 )   511     (6,251 )   (3,029 )
Amortization of debt issuance costs (770 )   (927 )   (2,625 )   (2,978 )
Loss on sale of Tilray securities (4,893 )       (10,193 )    
Interest expense, net (11,525 )   (15,635 )   (48,424 )   (35,227 )
Operating income (loss) $ (1,267 )   $ 20,864     $ 32,552     $ 37,373  
Adjusted For:              
Depreciation 8,402     8,016     24,628     22,925  
Amortization 13,520     14,783     40,632     42,761  
Non-controlling shareholder compensation 936     1,973     4,265     5,972  
Acquisition expenses     1,362         2,156  
Integration services fees     562     281     3,551  
Management fees 8,874     10,768     28,352     32,204  
Impairment expense 33,381         33,381      
Other     (415 )   324     (1,320 )
Adjusted EBITDA $ 63,846     $ 57,913     $ 164,415     $ 145,622  
Interest at Corporate, net of unused fee (1) (10,772 )   (15,931 )   (43,137 )   (38,174 )
Swap payment (372 )   (358 )   (675 )   (1,444 )
Management fees (8,874 )   (10,768 )   (28,352 )   (32,204 )
Capital expenditures (maintenance) (3,256 )   (4,783 )   (11,265 )   (15,481 )
Current tax expense (cash taxes) (2) (6,572 )   (4,441 )   (12,582 )   (7,580 )
Preferred share distributions (3,781 )   (4,773 )   (11,344 )   (8,398 )
Discontinued operations     9,054     16,986     27,415  
Miscellaneous items     515         985  
Cash Flow Available for Distribution and Reinvestment ('CAD') $ 30,219     $ 26,428     $ 74,046     $ 70,741  


(1 )   Interest expense at Corporate reflects consolidated interest expense less non-cash components such as, unrealized gains and losses on our swap and original issue discount amortization.  We include the cash component of our swap payment above in our reconciliation to CAD.
     
(2 )   Current tax expense is calculated by deducting the change in deferred tax from the statement of cash flows from the income tax provision on the statement of operations.


Compass Diversified Holdings
Adjusted EBITDA (1)
(unaudited)
                 
    Three months ended
September 30,
  Nine months ended
September 30,
(in thousands)   2019   2018   2019   2018
                 
Branded Consumer                
5.11 Tactical   $ 12,049     $ 7,556     $ 31,610     $ 21,314  
Ergobaby   5,872     6,579     16,689     17,414  
Liberty   3,207     1,020     7,624     6,502  
Velocity Outdoor (2)   8,243     5,713     15,964     14,779  
Total Branded Consumer   $ 29,371     $ 20,868     $ 71,887     $ 60,009  
                 
Niche Industrial                
Advanced Circuits   $ 6,894     $ 7,853     $ 21,405     $ 21,929  
Arnold Magnetics   4,447     4,025     11,610     12,105  
Foam Fabricators (2)   7,629     7,735     22,675     19,123  
Sterno Group (2)   18,779     19,996     46,519     43,024  
Total Niche Industrial   $ 37,749     $ 39,609     $ 102,209     $ 96,181  
                 
Corporate expense (3)   (3,274 )   (2,564 )   (9,681 )   (10,565 )
Total Adjusted EBITDA   $ 63,846     $ 57,913     $ 164,415     $ 145,625  


(1 )   Please refer to our recently filed Form 10-Q for detail on subsidiary pro forma Adjusted EBITDA, and reconciliation to net income.
     
(2 )   The above 2018 results exclude management's estimate of Adjusted EBITDA, before our ownership, of $5.5 million at Rimports, $2.8 million at Foam Fabricators and $10.8 million at Ravin for the nine months ended September 30th, and $4.7 million at Ravin for the three months ended September 30th.
     
(3 )   Please refer to the recently filed Form 10-Q for a reconciliation of our Corporate expense to Net Income.


Compass Diversified Holdings
Summarized Statement of Cash Flows
(unaudited)
       
  Nine months ended September 30,
(in thousands) 2019   2018
Net cash provided by operating activities $ 31,584     $ 58,772  
Net cash provided by (used in) investing activities 760,148     (594,705 )
Net cash (used in) provided by financing activities (557,118 )   531,288  
Effect of foreign currency on cash (2,102 )   916  
Net increase (decrease) in cash and cash equivalents 232,512     (3,729 )
Cash and cash equivalents — beginning of period (1) 53,326     39,885  
Cash and cash equivalents — end of period $ 285,838     $ 36,156  
       

(1)  Includes cash from discontinued operations of $4.6 million at January 1, 2019 and $4.2 million at January 1, 2018.


Compass Diversified Holdings
Condensed Consolidated Table of Cash Flow Available for Distribution and Reinvestment
(unaudited)
               
  Three months ended
September 30,
  Nine months ended
September 30,
(in thousands) 2019   2018   2019   2018
Net income $ (26,543 )   $ 5,766     $ 301,788     $ 4,678  
Adjustments to reconcile net income to net cash provided by operating activities:              
Depreciation and amortization 21,922     30,747     78,413     87,878  
Gain on sale of business (2,039 )       (330,203 )   (1,165 )
Impairment expense 33,381         33,381      
Amortization of debt issuance costs and original issue discount 863     1,079     3,022     3,403  
Unrealized (gain) loss on derivatives 136     (749 )   3,486     (4,649 )
Noncontrolling stockholder charges 936     2,529     6,204     7,694  
Provision for loss on receivables 2,041     361     2,786     459  
Other 5,465     (90 )   5,961     46  
Deferred taxes (2,172 )   (3,380 )   (14,538 )   (6,622 )
Changes in operating assets and liabilities (11,060 )   (12,803 )   (58,716 )   (32,950 )
Net cash provided by operating activities 22,930     23,460     31,584     58,772  
Plus:              
Unused fee on revolving credit facility 511     427     1,393     1,282  
Successful acquisition costs     2,648     596     4,995  
Integration services fee (1)     562     281     2,156  
Realized loss from foreign currency effect (2)         363     1,364  
Changes in operating assets and liabilities 11,060     12,803     58,716     32,950  
Loss on sale of Tilray securities 4,893         10,193      
Other     95         885  
Less:              
Maintenance capital expenditures (3) 3,256     7,553     14,760     21,821  
Payment of interest rate swap 372     358     675     1,444  
Realized gain from foreign currency effect (2)     883          
Preferred share distributions 3,781     4,773     11,344     8,398  
Other 1,766         2,301      
CAD $ 30,219     $ 26,428     $ 74,046     $ 70,741  
               
Distribution paid in April 2019/ 2018 $     $     $ 21,564     $ 21,564  
Distribution paid in July 2019/ 2018         21,564     21,564  
Distribution paid in October 2019/2018 21,564     21,564     21,564     21,564  
  $ 21,564     $ 21,564     $ 64,692     $ 64,692  

(1)     Represents fees paid by newly acquired companies to the Manager for integration services performed during the first year of ownership, payable quarterly.

(2)     Reflects the foreign currency transaction gain/ loss resulting from the Canadian dollar intercompany loans issued to Manitoba Harvest.

(3)     Excludes growth capital expenditures of approximately $4.3 million and $4.7 million for the three months ended September 30, 2019 and 2018, respectively, and $10.7 million and $17.5 million for the nine months ended September 30, 2019 and 2018, respectively.


Compass Diversified Holdings
Maintenance Capital Expenditures
(unaudited)
             
    Three months ended
September 30,
  Nine months ended
September 30,
(in thousands)   2019   2018   2019   2018
Branded Consumer                
5.11 Tactical   $ 211     $ 200     $ 1,547     $ 2,629  
Ergobaby   346     239     583     646  
Liberty   413     104     720     1,039  
Velocity Outdoor   1,056     764     2,096     3,063  
Total Branded Consumer   $ 2,026     $ 1,307     $ 4,946     $ 7,377  
                 
Niche Industrial                
Advanced Circuits   $     $ 646     $ 1,126     $ 1,169  
Arnold Magnetics   1,068     1,037     2,874     3,160  
Foam Fabricators   451     515     1,387     1,455  
Sterno Group   (289 )   1,278     932     2,320  
Total Niche Industrial   $ 1,230     $ 3,476     $ 6,319     $ 8,104  
                 
Total maintenance capital expenditures   $ 3,256     $ 3,476     $ 6,319     $ 8,104  


Compass Diversified Holdings
Condensed Consolidated Balance Sheets
       
  September 30, 2019   December 31, 2018
(in thousands) (unaudited)    
Assets      
Current assets      
Cash and cash equivalents $ 285,838     $ 48,771  
Accounts receivable, net 221,423     205,545  
Inventories 332,221     307,437  
Prepaid expenses and other current assets 41,975     29,670  
Current assets of discontinued operations     89,762  
Total current assets 881,457     681,185  
Property, plant and equipment, net 142,291     146,601  
Goodwill and intangible assets, net 1,013,373     1,086,707  
Other non-current assets 97,099     8,378  
Non-current assets of discontinued operations     449,464  
Total assets $ 2,134,220     $ 2,372,335  
       
Liabilities and stockholders’ equity      
Current liabilities      
Accounts payable and accrued expenses $ 210,960     $ 183,781  
Due to related party 8,142     11,093  
Current portion, long-term debt 5,000     5,000  
Other current liabilities 30,648     6,912  
Current liabilities of discontinued operations     52,494  
Total current liabilities 254,750     259,280  
Deferred income taxes 31,275     33,984  
Long-term debt 680,513     1,098,871  
Other non-current liabilities 87,427     12,615  
Non-current liabilities of discontinued operations     48,243  
Total liabilities 1,053,965     1,452,993  
Stockholders' equity      
Total stockholders' equity attributable to Holdings 1,032,810     859,372  
Noncontrolling interest 47,445     39,922  
Noncontrolling interest of discontinued operations     20,048  
Total stockholders' equity 1,080,255     919,342  
Total liabilities and stockholders’ equity $ 2,134,220     $ 2,372,335  
       

 

Compass Diversified Holdings Logo.JPG

Source: Compass Diversified Holdings