Compass Diversified Trust (CODI) filed Quarterly Report for the period ended 2009-09-30.
Compass Diversified Trust has a market cap of $394.45 million; its shares were traded at around $10.77 with a P/E ratio of 17.1 and P/S ratio of 0.26. The dividend yield of Compass Diversified Trust stocks is 12.63%.
Highlight of Business Operations:
Pursuant to the Management Services Agreement, we pay CGM a quarterly management fee equal to 0.5% (2.0% annually) of our consolidated adjusted net assets. We accrue for the management fee on a quarterly basis. For the three months ended September 30, 2009 and 2008 we incurred approximately $3.3 million and $3.8 million, respectively, in expense for these fees. For the nine-months ended September 30, 2009 and 2008 we incurred approximately $9.8 million and $11.0 million, respectively, in expense for these fees. The decrease in management fees for the nine months ended September 30, 2009 is due principally to the decrease in consolidated adjusted net assets as of September 30, 2009 resulting from the $75.0 million pay down of our Term Loan Facility with available cash in February 2009 and the $59.8 million impairment charge in 2009.
Net sales for the three months ended September 30, 2009 decreased approximately $2.6 million or 18.1% over the corresponding three month period ended September 30, 2008. Decreased sales from long-lead time and sub-contract PCBs ($0.5 million), quick-turn production ($1.4 million) and prototype PCBs ($0.9 million) are responsible for this decrease. These decreases are the result of the overall economic slowdown in the economy and we expect that net sales for the remainder of fiscal 2009 will track lower than comparable periods in 2008. Sales from quick-turn and prototype PCB’s represented approximately 64.4% of gross sales in the three months ended September 30, 2009 compared to 68.0% in the same period of 2008. This decrease in the percent of gross sales in 2009 is due in large part to additional long-lead sales attributable to ACI’s add-on acquisition in the second quarter of 2009.
Net sales for the nine months ended September 30, 2009 were approximately $34.4 million compared to approximately $42.7 million for the same period in 2008, a decrease of approximately $8.4 million or 19.6%. Decreased sales from long-lead time and sub-contract PCBs ($4.3 million), quick-turn production ($2.3 million) and prototype PCBs ($2.7 million) are principally responsible for this decrease. These decreases are the result of the overall economic slowdown in the economy and we expect that net sales for the remainder of fiscal 2009 will track lower than comparable periods in 2008. These decreases were offset in part by an increase in assembly sales ($0.8 million). Sales from quick-turn and prototype PCBs represented approximately 67.1% of gross sales in the nine months ended September 30, 2009 compared to 65.7% in the same period of 2008. This increase in the percent of net sales is due to the fact that these sales are impacted less by the overall economic slowdown than long-lead and subcontract sales whose end user is often the retail market.
Net sales for the three months ended September 30, 2009 increased approximately $1.7 million or 5.3% compared to the corresponding three months ended September 30, 2008. Stationary product sales increased approximately $3.0 million which was offset in part by a decrease in motion and recliner sales totaling approximately $0.9 million and occasional and accent sales of $0.4 million. The increase in net sales of stationary product is principally due to the inability to ship product in 2008 as a result of the lack of product resulting from the fire that destroyed the finished goods warehouse and most of the manufacturing facilities in February 2008. The decrease in net sales of motion and recliner product in 2009 is the result of the continuing soft retail environment in those more expensive retail categories. Stationary product represented 68% of net sales in the third quarter of 2009 compared to 60% in 2008.
Net sales for the nine months ended September 30, 2009 increased $8.8 million or 8.8% compared to the corresponding nine months ended September 30, 2008. Stationary product sales increased $13.8 million in the 2009 period and motion and recliner product sales decreased approximately $2.3 million and occasional and accent sales decreased approximately $1.7 million. The increase in net sales of stationary product is principally due to our inability to ship product in 2008 as a result of the lack of product resulting from the fire that destroyed the finished goods warehouse and most of the manufacturing facilities in February 2008. The decrease in net sales of motion and recliner product is the result of the continuing soft retail environment in those more expensive retail categories. Stationary product represented 68% of net sales in the first nine months of 2009 compared to 60% in the same period of 2008.
Cost of sales increased approximately $8.0 million in the nine months ended September 30, 2009 compared to the same period of 2008 due principally to the corresponding increase in sales. Gross profit as a percentage of sales was 19.8% in the nine months ended September 30, 2009 compared to 20.8% in the corresponding period in 2008. The reduction of gross profit as a percent of sales of 1.0% in 2009 is attributable to increases in 2009 for : (i) raw material costs ($1.0 million), (ii) third-party shipping costs ($2.0 million) offset in part by (i) labor efficiencies achieved due to the increased volume and the new building and (ii) incremental business interruption proceeds ($0.2 million). During 2009, management estimates that it utilized third-party carriers for approximately 70% of its customer shipments compared to approximately 50% in 2008.
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