WESTPORT, Conn., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI”) today announced that its subsidiary, Altor Solutions (“Altor”), a leading designer and manufacturer of custom protective and cold-chain packaging solutions for the industrial and life sciences markets, completed a sale-leaseback transaction involving certain Altor-owned real estate assets, generating approximately $11 million in immediately-available cash proceeds. Altor will continue to operate at the facilities pu ...

Summary of Compass Diversified (NYSE:CODI) Conference Call on January 16, 2026 Company Overview - **Company**: Compass Diversified (Cody) - **Acquisition Target**: The Honeypot Company, a leading feminine care brand - **Transaction Value**: $380 million enterprise value, excluding working capital adjustments [doc id='15'] Key Points and Arguments Acquisition Announcement - Cody has entered into a definitive agreement to acquire The Honeypot Company, which is recognized for its innovative and effective feminine care products [doc id='4'] - The acquisition aligns with Cody's strategy of acquiring high-free cash flow businesses and expanding into the personal care sector [doc id='4'][doc id='5'] Competitive Advantages - Cody's lower-weighted average cost of capital, supported by long-term unsecured bonds, enables it to acquire quality businesses while competitors are sidelined [doc id='5'] - A recent $75.2 million equity investment from Allspring Global Investments has provided the necessary capital for this acquisition [doc id='5'] Honeypot Company Overview - Honeypot is positioned as a premium feminine care brand with a complete care system of clinically tested products [doc id='8'] - The brand has achieved over 50% gross sales CAGR since 2020, with estimated gross sales exceeding $121 million and adjusted EBITDA of approximately $29 million for the trailing 12 months [doc id='14'] - The company has a strong retail presence, with distribution in over 33,000 doors, including major retailers like Target and Walmart [doc id='22] Market Potential - The addressable market for Honeypot is valued at over $17 billion, indicating significant growth potential [doc id='12'] - Despite being the fifth-largest feminine care brand, Honeypot's brand awareness and household penetration are low compared to legacy competitors, presenting an opportunity for accelerated growth through increased marketing efforts [doc id='13'] Growth Strategy - Honeypot plans to expand its product offerings and distribution channels, including entering the club channel and enhancing its e-commerce presence [doc id='10][doc id='20'] - The company aims to leverage its innovative product development and marketing strategies to capture market share from stagnant legacy brands [doc id='11'] Financial Outlook - Honeypot's business model benefits from low capital expenditure (CapEx) requirements, with CapEx around 2% of net sales, and a strong free cash flow profile [doc id='15] - The acquisition is expected to be funded entirely with cash on hand, with a projected total outstanding indebtedness of approximately $1.7 billion post-transaction [doc id='16] Management and Cultural Fit - The management team of Honeypot, led by co-founder and CEO Beatrice Dixon, will continue to lead the company post-acquisition, ensuring continuity and alignment with Cody's values [doc id='15][doc id='28] - Cody emphasizes a long-term partnership approach with management teams, which is crucial for the success of the acquisition [doc id='6] Market Dynamics - The current market conditions for consumer products are weak, allowing Cody to acquire Honeypot at a favorable valuation compared to historical multiples for similar wellness brands [doc id='31] - The acquisition is seen as a strategic move to capitalize on the growing demand for better-for-you products in the feminine care market [doc id='31] Additional Important Insights - The acquisition reflects Cody's strategy of identifying middle-market leaders and supporting them in achieving their growth potential [doc id='11] - The focus on consumer education and destigmatization of feminine health issues is a core part of Honeypot's brand strategy, resonating particularly with younger consumers [doc id='12][doc id='26] This summary encapsulates the key points discussed during the conference call, highlighting the strategic acquisition of The Honeypot Company and its implications for Compass Diversified's growth trajectory in the personal care market.

The Honey Pot Company Overview - The Honey Pot Company emerged in 2012 as a leading holistic feminine care brand powered by herbs[8] - The company addresses unmet needs in the feminine care industry, such as the lack of a human-first approach, inclusivity, transparency, and efficacy[9] - The brand offers a complete feminine care system powered by herbs, focusing on efficacy, community, and normalizing the normal[10] Product Portfolio and Strategy - The Honey Pot Co has 31 SKUs in personal care, 11 SKUs in menstrual needs, and 20 SKUs in consumer health & sexual wellness[13,15,17] - The company uses plant-derived ingredients and formulas designed for efficacious results, supported by clinical testing[11,19] - The brand employs a retailer-first strategy, with a strong presence in mass retail and whitespace opportunity in grocery, drug, club, and eCommerce[20] Market Position and Financials - The Honey Pot Co is an innovation leader in the growing "better-for-you" feminine wellness market[24] - The company estimates to have only 4.5% household penetration[25,28] - The company has approximately $121 million in gross sales and approximately $29 million of adjusted EBITDA[33] - The company has experienced approximately 54% gross sales CAGR since 2020[34] Transaction Details - CODI will acquire The Honey Pot Co at a $380 million enterprise value, with $347 million funded by CODI[39]

Elias Sabo: Thank you, Ben. And good afternoon, everyone. With today's filing, we are now current with our SEC filings for 2025. We're also back in compliance with the reporting requirements under our credit facility and bond indentures, and we're returning to a more normal operating cadence. It's been a long road thus far, and I want to thank everyone for their patience throughout this process. We appreciate the support you've shown as we've worked through it. Before I discuss our performance, I want to gi ...

Core Insights - Compass Diversified (NYSE:CODI) reported an EPS of -$0.98, missing the estimated EPS of $0.70, with revenue of $472.6 million falling short of the expected $637 million [1][6] Financial Metrics - The company has a negative P/E ratio of -2.83, indicating ongoing losses [2][6] - CODI's price-to-sales ratio is low at 0.21, suggesting potential undervaluation relative to its sales [2] - The enterprise value to sales ratio stands at 1.14, providing a valuation perspective relative to revenue [2] Cash Flow and Profitability - The enterprise value to operating cash flow ratio is high at 222.90, indicating low operating cash flow compared to enterprise value [3] - A negative earnings yield of -35.34% highlights the company's current unprofitability [3] Debt and Liquidity - CODI's debt-to-equity ratio is 3.62, reflecting a heavy reliance on debt, which poses risks in a challenging economic environment [4][6] - The current ratio of 0.39 suggests potential liquidity issues, indicating difficulties in meeting short-term liabilities with short-term assets [4] Strategic Focus - Despite financial challenges, CODI remains committed to long-term growth and profitability through strategic partnerships and investments [5][6]

Later in the call, Sabo also recognized the retirement of James Bottiglieri from the CODI board at the end of last year, citing his contributions to the firm’s IPO and his long-standing guidance as a board member.Sabo noted organizational changes at Compass Group Management (CGM), the company’s external manager. Pat Maciariello retired at the end of 2025 after 20 years with CGM. Zach Sawtelle, who has been with CGM since 2009 and previously led the East Coast office, stepped into the role of COO. Sabo said ...

Compass Diversified (NYSE:CODI) Q3 2025 Earnings call January 14, 2026 05:00 PM ET Company ParticipantsBen Tapper - VP of Investor RelationsStephen Keller - Managing DirectorElias Sabo - CEOConference Call ParticipantsChris Kennedy - AnalystLawrence Solow - AnalystLance Vitanza - AnalystMatt Koranda - AnalystPat Maciariello - AnalystTimothy DeAgostino - AnalystOperatorAt this time, I would like to turn the call over to Ben Tapper, Vice President, Investor Relations. Ben, please go ahead.Ben TapperThank you, ...

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $472.6 million, an increase of 3.5% year-over-year. Year-to-date consolidated net sales reached $1.4 billion, up 8.6% over the prior year, or 6.1% excluding the impact of Lugano [13][14] - The GAAP net loss for the quarter was $87.2 million, which includes expenses related to the Lugano investigation and operations [13] - Year-to-date subsidiary-adjusted EBITDA was $257 million, an increase of 5.8% over 2024 [15] Business Line Data and Key Metrics Changes - In the consumer vertical, sales grew 3.1%, driven by strong growth at The Honeypot, while BOA's sales declined slightly due to exiting a lower-value business in China [14][15] - The industrial vertical saw a 10.5% increase in sales, primarily due to Altor's acquisition of Lifoam, although Arnold faced near-term headwinds from geopolitical uncertainties [14][15] Market Data and Key Metrics Changes - The consumer market experienced low single-digit growth, while the industrial market delivered mid-single-digit growth [9][10] - The rare earth magnetics market faced disruptions due to export restrictions from China, impacting Arnold's performance but creating long-term growth opportunities [10][11] Company Strategy and Development Direction - The company is focused on reducing leverage to mitigate risk and ensure long-term financial flexibility while also aiming to return capital to shareholders [12] - There is a commitment to executing strategic transactions, including potential divestitures, to maximize shareholder value [30] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was marked by uncertainty due to geopolitical risks and a fluid tariff environment, but they expect to return to growth in 2026 [8][40] - Management expressed confidence in the long-term growth potential of Arnold, particularly as customers seek more stable supply chains for rare earth materials [73] Other Important Information - The company has restored compliance with SEC filings and credit facility requirements, allowing for a return to normal operations [4] - The management team has undergone changes, with Zach Sawtelle stepping into the COO role following Pat Maciariello's retirement [5][6] Q&A Session Summary Question: Performance of The Honeypot - Management indicated that The Honeypot is outperforming expectations due to increased shelf space and successful product launches in new categories [24][26] Question: Asset Divestiture Strategy - Management stated that all businesses are available for sale if the valuation is attractive, emphasizing a disciplined approach to divestments [28][30] Question: Economic Outlook - Management acknowledged a slowdown in growth but remains optimistic about future performance, expecting to achieve organic growth and free cash flow in 2026 [36][42] Question: Supply Chain Disruptions at Arnold - Management noted that supply chain disruptions from China are beginning to normalize, with expectations for improved performance in 2026 [71][73] Question: Free Cash Flow Expectations - Management anticipates generating between $50 million and $100 million of free cash flow in 2026, a significant improvement from previous years [83]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Performance - For Q3 2025, net sales reached $472.6 million, a 3% increase from $456.6 million in Q3 2024, while year-to-date net sales totaled $1.41 billion, up 8.6% from $1.29 billion in the same period last year [15]. - Gross profit for Q3 2025 was $207.7 million, compared to $196.6 million in Q3 2024, reflecting a gross margin improvement [15]. - Operating loss for Q3 2025 was $11.1 million, a decline from an operating income of $8.3 million in Q3 2024 [15]. - The company reported a net loss of $87.2 million for Q3 2025, compared to a net loss of $65.5 million in Q3 2024 [15]. - Adjusted EBITDA for the three months ended September 30, 2025, was $30,299,000, a decrease of 37.5% from $48,595,000 in the same period of 2024 [16]. - The total net loss from continuing operations for the nine months ended September 30, 2025, was $217,251,000, a decrease from $257,350,000 in the same period of 2024, showing a 15.6% improvement [19][20]. - The company reported an EBITDA of $54.794 million for the nine months ended September 30, 2025, compared to a negative EBITDA of $40.123 million in 2024, showing a turnaround in operational performance [19][20]. Assets and Liabilities - Total current assets as of September 30, 2025, were $1.01 billion, an increase from $964.8 million at the end of 2024 [13]. - Total liabilities increased to $2.93 billion as of September 30, 2025, compared to $2.77 billion at the end of 2024 [13]. - Cash and cash equivalents stood at $61.1 million as of September 30, 2025, up from $59.7 million at the end of 2024 [13]. Expenses - Selling, general and administrative expenses rose to $179.3 million in Q3 2025, compared to $146.0 million in Q3 2024, indicating increased operational costs [15]. - Total interest expense for the three months ended September 30, 2025, was $66,721,000, significantly higher than $31,620,000 in the same period of 2024, reflecting a 111% increase [16]. - The company incurred $9,715,000 in distributions paid on preferred shares for the three months ended September 30, 2025, compared to $6,345,000 in 2024, marking a 53% increase [16]. - Corporate expenses for the nine months ended September 30, 2025, were $99.493 million, up from $65.068 million in the same period of 2024, indicating a significant increase in corporate overhead [22]. - Interest expense for the nine months ended September 30, 2025, totaled $136.668 million, compared to $86.483 million in 2024, reflecting increased borrowing costs [19][20]. Impairment and Adjusted Earnings - The impairment expense recorded for the nine months ended September 30, 2025, was $31,515,000, compared to $8,182,000 in the same period of 2024, indicating a significant increase in impairment losses [16]. - The adjusted earnings for the three months ended September 30, 2025, were $(52,725,000), compared to $(12,172,000) in the same period of 2024, reflecting a substantial decline in performance [16]. - The company incurred an impairment expense of $31.515 million in 2025, which was not present in the previous year, impacting overall profitability [19][20]. Segment Performance - The total branded consumer segment reported an Adjusted EBITDA of $128.637 million for the nine months ended September 30, 2025, compared to $113.784 million in 2024, reflecting a 13.1% increase [22]. - The niche industrial segment's Adjusted EBITDA increased to $93.207 million for the nine months ended September 30, 2025, from $88.299 million in 2024, marking a 5.4% growth [22]. - Branded Consumer segment net sales for the nine months ended September 30, 2025, were $839.2 million, up from $732.3 million in 2024, reflecting a year-over-year increase of 14.6% [26]. - The Honey Pot Co. generated pro forma net sales of $34.7 million for the three months ended September 30, 2025, compared to $31.5 million in 2024, indicating a growth of 6.9% [26]. - Niche Industrial segment net sales for the three months ended September 30, 2025, totaled $191.0 million, compared to $183.4 million in 2024, marking a year-over-year increase of 4.3% [26]. - Altor Solutions reported net sales of $79.8 million for the three months ended September 30, 2025, significantly up from $52.1 million in 2024, representing a growth of 52.9% [26]. - Arnold Magnetics experienced a decline in net sales to $37.7 million for the three months ended September 30, 2025, down from $46.1 million in 2024, a decrease of 18.5% [26]. - Sterno's net sales for the three months ended September 30, 2025, were $73.5 million, down from $85.2 million in 2024, reflecting a decrease of 13.5% [26]. Future Outlook - The company is focused on executing strategic priorities to enhance profitability and drive performance across its subsidiaries [2]. - Future outlook remains positive with expectations of continued growth in both branded consumer and niche industrial segments, supported by strategic initiatives and potential acquisitions [26].