Financial Data and Key Metrics Changes - For the full year 2024, the company achieved double-digit sales growth and increased adjusted EBITDA by more than 30% [10] - Consolidated net sales for Q4 were $620.3 million, representing a 13.8% increase year-over-year [36] - Adjusted EBITDA in Q4 was $118 million, a 29% increase compared to the same period in 2023 [38] Business Line Data and Key Metrics Changes - The consumer vertical saw pro forma revenues grow double digits, with adjusted EBITDA increasing by over 27% [25] - Lugano reported annual sales growth of more than 50% and adjusted EBITDA of $195 million, a 76.4% increase year-over-year [26] - The industrial segment experienced flat sales and a modest decline in adjusted EBITDA as the company focused on long-term repositioning [29] Market Data and Key Metrics Changes - The CODI Momentum Index, a gauge of economic activity, currently reads 1.06%, indicating a stable outlook despite a slight decline from year-end levels [18] - Consumer spending remains steady, particularly among higher-income consumers, which is expected to benefit the company's portfolio [19] Company Strategy and Development Direction - The company is shifting focus to more innovative and disruptive businesses to drive long-term value creation [11] - Strategic acquisitions included the purchase of Honey Pot and Lifoam, while divesting Ergobaby and the Crosman airgun business to optimize long-term focus [12] - The company aims to identify and support strong businesses with innovative and sustainable models, guided by a buy, build, and grow philosophy [21] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about prospects for 2025, expecting resilience and growth in the economy [17] - The company is monitoring geopolitical uncertainties and believes its subsidiaries are well-positioned to navigate the evolving tariff landscape [20] - The outlook for 2025 includes expected adjusted EBITDA between $570 million and $610 million, with a focus on growth investments [43] Other Important Information - The company raised over $115 million in preferred equity in 2024 to improve its capital structure [13] - A revised management services agreement aims to reduce long-term costs for shareholders and align management compensation with shareholder interests [15] Q&A Session Summary Question: Guidance on branded and industrial growth - Management indicated that growth from Lugano is expected to continue, but they have a more modest overall growth forecast [53][54] Question: Impact of PFAS charge on 5.11% - The $11 million charge related to PFAS regulations was noted, and management confirmed that adjusted EBITDA would have been significantly higher without this charge [57][58] Question: Tariff exposure and portfolio positioning - Management discussed the proactive steps taken to diversify supply chains and mitigate tariff impacts, feeling well-positioned compared to competitors [66][70] Question: M&A activity outlook for 2025 - Management expressed optimism about the M&A environment improving slightly in 2025, with a focus on acquiring innovative and disruptive businesses [72][74] Question: Performance of Lugano and EBITDA margins - Management attributed strong EBITDA margins at Lugano to operational leverage and effective buying strategies, while also noting potential margin dilution from new salon openings [86][88]

Exhibit 99.1 Compass Diversified Reports Fourth Quarter and Full Year 2024 Financial Results Strong Results Driven by CODI's Unique Business Model Westport, Conn., February 27, 2025 – Compass Diversified (NYSE: CODI) ("CODI" or the "Company"), an owner of leading middle market branded consumer and industrial businesses, announced today its consolidated operating results for the three months and full year ended December 31, 2024. "In 2024, we once again delivered strong financial results, achieving double di ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34927 Compass Diversified Holdings (Exact name of registrant as specified in its charter) Delaware 57-6218917 (State or other jurisdiction of i ...

Core Insights - Compass Diversified (CODI) reported strong financial results for 2024, achieving double-digit sales growth and over 30% growth in Adjusted EBITDA, driven by robust performance in both consumer and industrial sectors [2][5][12] Financial Performance - In Q4 2024, net sales reached $620.3 million, a 13.8% increase from $544.9 million in Q4 2023. For the full year, net sales totaled $2.2 billion, up 11.9% from $2.0 billion in 2023 [5][6] - Branded consumer net sales increased by 15.2% to $403.0 million in Q4 2024, while industrial net sales rose by 11.4% to $217.2 million [11] - Adjusted EBITDA for Q4 2024 was $118.2 million, a 29% increase compared to $91.6 million in Q4 2023. For the full year, Adjusted EBITDA was $424.8 million, up 30% from $326.5 million in 2023 [12][10] Income and Earnings - Operating income for Q4 2024 was $60.6 million, a significant recovery from an operating loss of $4.6 million in Q4 2023, primarily due to prior year impairment charges [7] - Net income for Q4 2024 was $23.8 million, down from $139.4 million in Q4 2023, largely due to significant gains from asset sales in the previous year [8] - Adjusted Earnings for the full year 2024 were $161.6 million, compared to $101.2 million in 2023 [10] Capital and Liquidity - As of December 31, 2024, CODI had approximately $59.7 million in cash and cash equivalents, with significant debt obligations including $375 million in term loans and $1 billion in senior notes [13][14] - The company raised around $90 million through preferred share issuance in Q4 2024 and repurchased over 400,000 common shares at an average price of $23.19 [11] Future Outlook - For 2025, CODI expects consolidated Subsidiary Adjusted EBITDA to be between $570 million and $610 million, with branded consumer vertical projected to contribute $440 million to $465 million [20][21] - The company anticipates Adjusted Earnings for 2025 to be between $170 million and $190 million [21]

Core Viewpoint - Compass Diversified (CODI) is set to release its financial results for Q4 and the full year of 2024 on February 27, 2025, after market close, followed by a conference call to discuss the results [1][2]. Group 1: Financial Results Announcement - CODI will announce its financial results for the fourth quarter and full year ended December 31, 2024, on February 27, 2025 [1]. - A conference call is scheduled for February 27, 2025, at 5:00 p.m. ET, featuring key executives including the CEO, CFO, and COO [2]. Group 2: Company Overview - Since its IPO in 2006, CODI has focused on owning and managing a diverse portfolio of middle-market businesses across various sectors, including industrial, branded consumer, and healthcare [3]. - The company utilizes its permanent capital base and long-term approach to maintain controlling ownership interests in its subsidiaries, enhancing cash flow generation and value creation [3]. - CODI provides both debt and equity capital to its subsidiaries, which supports their financial and operational flexibility [3].

Core Viewpoint - Compass Diversified Holdings has restructured its management fee agreement with Compass Group Management LLC, introducing a base management fee and an incentive management fee starting January 1, 2025 [1][2]. Management Fee Structure - The base management fee will be 2.0% of adjusted net assets up to $3.5 billion, with a tiered structure for higher asset levels: - 2.0% for assets ≤ $3.5 billion - 2.0% + 1.25% for assets > $3.5 billion and < $10 billion - 1.5% for assets ≥ $10 billion [1][2]. - The incentive management fee is set at 0.25% for adjusted net assets exceeding $3.5 billion, contingent on the company's annualized internal rate of return on equity exceeding 12% over the trailing three years [2]. Changes in Fee Agreement - The Amendment eliminates the integration services fee paid by subsidiaries to the Manager and excludes excess cash from the adjusted net assets calculation, with certain exceptions [3]. - Additional changes to the management services agreement are noted but not exhaustively detailed [4]. Company Overview - Since its IPO in 2006, Compass Diversified Holdings has focused on owning and managing a diverse portfolio of middle-market businesses across various sectors, including industrial, branded consumer, and healthcare [5]. - The company aims to leverage its permanent capital base and expertise to maintain controlling interests in subsidiaries, enhancing long-term cash flow and value creation [5].

Community and Membership - HDO is the largest and most exciting community of income investors and retirees with over 8000 members [1] - The company is actively seeking more members to join its lively group [1] Investment Strategy - The Income Method generates strong returns regardless of market volatility, making retirement investing less stressful, simple, and straightforward [1] - The Model Portfolio targets a yield of 9-10% [1] - The company emphasizes the Power of Dividends as a key investment strategy [1] Membership Offer - A 17% discount and 14-day free trial are being offered on the annual price of $599 99 [1] Retirement Challenges - Achieving a secure retirement may be more challenging now than at any previous time [2] - The average life expectancy for an American who reaches age 65 is roughly 85 years, but many will live far beyond that [2]

Core Viewpoint - Compass Diversified Holdings announced an amendment to its existing credit agreement, allowing for an additional term loan of $200 million and delayed draw commitments of $100 million, aimed at supporting acquisitions and general corporate purposes [1][2][3]. Group 1: Credit Agreement Amendment - The amendment modifies the Third Amended and Restated Credit Agreement dated July 12, 2022, providing for an additional advance of $200 million and delayed draw commitments of $100 million [2]. - The Incremental Term Loan will require quarterly repayments ranging from $3.75 million to $11.25 million, starting March 31, 2025, with a final payment due on July 12, 2027 [3]. - The Incremental Delayed Draw Term Loan will also require quarterly repayments of 0.625% to 1.875% of the drawn amount, commencing after the loan is fully drawn or the end of the availability period [4]. Group 2: Use of Proceeds - Proceeds from the Incremental Term Loan and Incremental Delayed Draw Term Loan will be utilized for new acquisitions, working capital, capital expenditures, and other general corporate purposes [3]. Group 3: Company Overview - Since its IPO in 2006, Compass Diversified has focused on owning and managing a diverse portfolio of middle-market businesses across various sectors, leveraging its permanent capital base and expertise to maximize long-term cash flow and value creation [5].

Core Points - Compass Diversified Holdings (CODI) announced that director Gordon M. Burns will not seek re-election at the 2025 annual shareholders meeting due to other commitments [1] - Burns has been a board member since May 2008 and has stepped down as Chair of the Nominating & Corporate Governance Committee, but will remain on the board until the 2025 meeting [1][2] - Nancy B. Mahon has been appointed as the new Chair of the Nominating Committee, effective January 3, 2025 [2][3] - Mahon has been a director since May 2023 and is currently the Chief Sustainability Officer at The Estée Lauder Companies, Inc. [3] - The board aims to strengthen and diversify its governance, with Mahon bringing over a decade of experience in corporate citizenship and sustainability practices [4] Company Overview - CODI has consistently executed its strategy of owning and managing a diverse set of middle-market businesses across industrial, branded consumer, and healthcare sectors since its IPO in 2006 [5] - The company leverages its permanent capital base and long-term disciplined approach to maintain controlling ownership interests in its subsidiaries, maximizing long-term cash flow generation and value creation [5] - CODI provides both debt and equity capital for its subsidiaries, contributing to their financial and operational flexibility [5]

Core Points - Compass Diversified (CODI) announced a quarterly cash distribution of $0.25 per share on its common shares, payable on January 23, 2025, to holders of record as of January 16, 2025 [1] - The Board declared cash distributions for its preferred shares: $0.453125 per share for Series A, $0.4921875 per share for Series B, and $0.4921875 per share for Series C, all payable on January 30, 2025, to holders of record as of January 15, 2025 [2][3][4] Financial Overview - CODI's common and preferred cash distributions are expected to generally constitute "qualified dividends" for U.S. federal income tax purposes, contingent on being paid from "earnings and profits" [5] - The company does not expect all distributions in the 2024 taxable year to be qualified dividends, as earnings and profits are anticipated to be below cash distributions [6] - CODI anticipates that all distributions in 2025 may be treated as a return of capital, with final tax status to be reported in early 2026 [7] Company Background - Since its IPO in 2006, CODI has focused on owning and managing a diverse set of middle-market businesses across industrial, branded consumer, and healthcare sectors [8] - The company leverages its permanent capital base and long-term approach to maintain controlling ownership interests in its subsidiaries, enhancing cash flow generation and value creation [8]