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]

Group 1: Acquisition Overview - Highlander Partners has acquired Ergobaby, the global market leader in premium baby carriers, from Compass Diversified [3] - Ergobaby was founded in 2003 and is headquartered in Los Angeles, California, employing 170 people and distributing products in over 75 countries [3][4] - The acquisition aligns with Highlander's strategy of investing in category-leading branded consumer product companies, emphasizing growth through product innovation and market expansion [1][8] Group 2: Product Portfolio - Ergobaby's product line includes baby carriers, wraps, strollers, bouncers, highchairs, maternity support bands, and nursing accessories, designed to support parents and babies through pregnancy and early development [4] - The company also features two other brands: Tula, known for functional carriers, and Belly Bandit, which focuses on maternity and postpartum solutions [7] Group 3: Management Insights - Jason Frame, CEO of Ergobaby, expressed excitement about the partnership with Highlander, highlighting the management team's energy and a full pipeline of new opportunities [8] - Highlander Partners has over $3 billion in assets under management and employs a buy and build investment approach to create value through organic growth and acquisitions [8]

Core Viewpoint - Compass Diversified has completed the sale of its majority-owned subsidiary, Ergobaby, to Highlander Partners, aiming to utilize the proceeds for debt reduction and corporate purposes while continuing to acquire innovative brands [1][3]. Group 1: Company Overview - Compass Diversified (CODI) is an owner of leading middle-market businesses, focusing on industrial, branded consumer, and healthcare sectors since its IPO in 2006 [4]. - The company employs a strategy of maintaining controlling ownership interests in its subsidiaries to maximize long-term cash flow generation and value creation [4]. - CODI leverages its permanent capital base and expertise to provide both debt and equity capital for its subsidiaries, contributing to their financial flexibility [4]. Group 2: Transaction Details - The sale of Ergobaby was executed through a definitive agreement with Highlander Partners, a private investment firm based in Dallas [1]. - Proceeds from the transaction will be allocated to pay down debt and for general corporate purposes, indicating a focus on financial health and operational flexibility [3]. - The CEO of Compass Diversified expressed confidence in the future, stating the intention to use the sale proceeds to acquire and manage innovative brands, thereby driving long-term shareholder value [2]. Group 3: Leadership Comments - Elias Sabo, CEO of Compass Diversified, acknowledged Ergobaby's position as a global leader in premium juvenile products and expressed gratitude for the contributions of the Ergobaby team [2]. - Jason Frame, CEO of Ergobaby, expressed appreciation for the support from CODI and optimism for future success under Highlander Partners [4].

Group 1 - The financial markets are recognized as a reliable means for long-term wealth generation [1] - The timing of retirement is crucial, despite the adage that "Time in the market beats timing the market" [1] - High Dividend Opportunities (HDO) is a prominent community for income investors and retirees, boasting over 8,000 members [1] Group 2 - HDO's Income Method is designed to yield strong returns irrespective of market volatility, simplifying retirement investing [1] - The company is promoting a Model Portfolio that targets a yield of 9-10% [2] - A limited-time offer includes a 17% discount on the annual price of $599.99, along with a 14-day free trial [2]

Compass Diversified (NYSE:CODI) Q3 2024 Results Conference Call October 30, 2024 5:00 PM ET Company Participants Cody Slach - Senior MD & Director of Investor Relation Elias Sabo - Partner & CEO Patrick Maciariello - Partner & COO Stephen Keller - Executive Vice President & CFO Conference Call Participants Larry Solow - CJS Securities Matt Koranda - ROTH Capital Matthew Howlett - Jefferies Robert Dodd - Raymond James Operator Good afternoon, and welcome to Compass Diversified's Third Quarter 2024 Conferenc ...