Compass Diversified (NYSE: CODI) owns and manages a diverse group of leading middle-market businesses Currently own and manage seven branded consumer and three niche industrial subsidiaries CODI BY THE NUMBERS How Are We Different? $7.0B + Aggregate Acquisitions 23 Platforms & 32 Add-Ons Our ESG framework is built on two key pillars, and supported by eight priority areas, collectively underpinned by sound governance practices Governance Business Transformation Capital Allocation Healthcare Vertical Growth D ...

| --- | --- | --- | --- | --- | --- | |---------------------------------|-------------------------------------------------|---------------|------------------------------------------|-------|---------------| | | June 30, 2023 \nEffective Interest Rate | \nAmount | December \nEffective Interest Rate | 31, | 2022 \nAmount | | 2029 Senior Notes | 5.25% | $ 1,000,000 | 5.25% | $ | 1,000,000 | | 2032 Senior Notes | 5.00% | 300,000 | 5.00% | | 300,000 | | 2022 Term Loan | 7.10% | 390,000 | 5.20% | | 395,000 | | 20 ...

Financial Data and Key Metrics Changes - Consolidated net income for Q1 2023 was $109.6 million, a significant increase from $29.7 million in the prior year, primarily due to a $98 million gain on the sale of Advanced Circuits [16] - Adjusted EBITDA for Q1 2023 was $91.9 million, up 11% from $83.2 million in Q1 2022, driven by the PrimaLoft acquisition [56] - Revenue for Q1 2023 was $542.2 million, a 6% increase compared to $510.5 million in the prior year period [32] Business Line Data and Key Metrics Changes - Niche industrial businesses saw flat revenues but a 19% increase in adjusted EBITDA, with margin expansion of over 250 basis points [11] - Consumer businesses experienced a 2% increase in revenues but a 5% decline in adjusted EBITDA due to excess inventory impacting BOA, PrimaLoft, and Velocity [12] - Lugano reported a strong quarter with revenues and adjusted EBITDA growing by 36% and 38% respectively [13] Market Data and Key Metrics Changes - The affluent consumer segment continues to spend, as evidenced by strong performance at Lugano [9] - BOA is gaining market share despite experiencing significant inventory destocking, which is currently outpacing market share gains [7] - PrimaLoft's performance has not fully met expectations, but it is believed to be taking market share amidst inventory rebalancing [14] Company Strategy and Development Direction - The company is focused on a diversified group of subsidiaries to reach a broad set of end markets and consumer demographics, which has driven strong results [22] - The strategy includes a commitment to high-quality, high-growth assets, with expectations for a snapback in revenue growth once inventory destocking issues are resolved [23][24] - The company plans to prioritize capital allocation towards high-return opportunities within its portfolio, particularly in Lugano and 5.11 [87] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to ongoing inventory destocking and macroeconomic headwinds, but remains confident in growth for the second half of 2023 [25][26] - The company anticipates a challenging Q2 but expects strong performance in the second half of the year, driven by strong end demand [25][26] - Management noted that the current inventory issues are expected to correct in the latter half of the year, leading to improved revenue and profitability [92] Other Important Information - The company has substantial liquidity with approximately $53.7 million in cash and $590 million available on its revolver, with leverage at 3.87 times [17] - Capital expenditures for 2023 are anticipated to be between $60 million and $70 million, primarily for new retail salons at Lugano and store expansions at 5.11 [36] - The company received a silver badge from Catalyst 2030 for its commitment to sustainable development goals [37] Q&A Session Summary Question: What is the outlook for Q2 given the strong start to the year? - Management indicated a more conservative outlook for Q2 due to macroeconomic concerns and inventory destocking, but remains confident in achieving annual growth [66][128] Question: How is the DTC business performing? - The DTC business remains positive in Q1, although growth is slightly slower compared to previous periods [70] Question: What is the status of inventory levels and restocking? - Management expects Q2 to be better than Q1, with a gradual improvement in inventory levels as the year progresses [80] Question: What are the plans for acquisitions in the healthcare sector? - The company is focused on add-on acquisitions rather than platform acquisitions due to high pricing in the current market [86][100] Question: How confident is management in the snapback for BOA and PrimaLoft? - Management is confident in a strong snapback but cannot predict the exact timing, expecting improvements in Q3 and Q4 [92][93]

$263M • World-class design capabilities creates exquisite, one-of-akind jewelry • Unique retail strategy improves client experience • Highly effective event-driven marketing strategy • Long-lasting client connections bring high-value, discerning and loyal clientele DESCRIPTION COMPASS VALUE ADDED Working with management to support retail rollout plans and build infrastructure to support growth P PRIMALOFT. DESCRIPTION The leading provider of branded, high-performance synthetic insulation used primarily in c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMPASS DIVERSIFIED HOLDINGS Delaware 001-34926 20-3812051 (State or other jurisdiction of incorporation or organization) (Commission file number) (I.R.S. employer id ...

Building on 16+ years of success, C-Corp taxation would drive greater value for all CODI shareholders over time 42 • Improves cost of equity capital and shares become more attractive currency • Improves profile with rating agencies • Reduces administrative costs • Eliminates K-1 and UBTI 35 Net Income (Loss) to Non-GAAP Adjusted Earnings (2022) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------|-------|-- ...

Compass Diversified (NYSE:CODI) Q4 2022 Earnings Conference Call March 1, 2023 5:00 PM ET Company Participants Cody Slach - Gateway Group Elias Sabo - CEO Ryan Faulkingham - CFO Pat Maciariello - Chief Operating Officer, Compass Group Management Conference Call Participants Cris Kennedy - William Blair Larry Solow - CJS Securities Matt Koranda - ROTH Robert Dodd - Raymond James Matthew Howlett - B. Riley Barry Haimes - Sage Asset Management Operator Good afternoon, and welcome to the Compass Diversified Fou ...

5.11 competes in the global marketplace for purpose-built technical apparel, footwear and gear. Management believes 5.11 has competitive advantages through its global omnichannel business model, which is comprised of a rapidly growing DTC channel and recurring Wholesale channel. 5.11 competes against activewear, outdoor and specialty apparel brands such as Nike, Under Armour, The North Face, Patagonia, Lululemon, Arc'teryx, Carhartt, Propper and Fecheimer Brothers. 5.11 competes with footwear brands such as ...

Compass Diversified (NYSE:CODI) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Cody Slach – Gateway Group Elias Sabo – Chief Executive Officer Pat Maciariello – Chief Operating Officer Ryan Faulkingham – Chief Financial Officer Conference Call Participants Larry Solow – CJS Securities Cris Kennedy – William Blair Matt Koranda – ROTH Capital Matthew Howlett – B. Riley Operator Good afternoon, and welcome to Compass Diversified Third Quarter 2022 Conference Call. Today’s cal ...

Company Overview - Compass Diversified Holdings (CODI) manages \$3.3 billion in assets across 11 subsidiary platforms [6] - CODI's strategy involves long-term ownership of middle-market businesses through a permanent capital base [5] - The company has a diversified portfolio of seven branded consumer and four niche industrial subsidiaries [5] Financial Performance - CODI's TTM Proforma Revenue is over \$2.3 billion [6] - TTM Proforma Adjusted EBITDA is \$464 million [6] - The company's TTM Adjusted Earnings as of September 30, 2022, were \$167 million [6] - CODI has approximately \$550 million available in revolver and cash [6] - The company anticipates full year 2022 Pro Forma Subsidiaries Adjusted EBITDA guidance of \$460 million - \$470 million, implying 12% YOY growth at midpoint [28] - Full year 2022 Adjusted Earnings guidance is \$145 million - \$155 million, implying 11% YOY growth at midpoint [28] Capital Allocation and Growth Strategy - CODI aims to acquire 1 to 2 platform businesses per year, targeting companies in the \$200 million - \$600 million size range [16] - The company targets 2-3 strategic add-ons per year and \$20 million - \$40 million per year in growth capital expenditures for its subsidiaries [16]