Q2 2024 Compass Diversified Holdings Earnings Call Transcript
Key Points
- Compass Diversified Holdings (CODI) reported strong performance in its branded consumer vertical, with BOA, PrimaLoft, and Lugano leading the growth.
- The company experienced a 27% increase in adjusted EBITDA for the second quarter, driven by acquisitions and strong growth in key subsidiaries.
- Lugano's international expansion, particularly the new salon in London, exceeded expectations, indicating successful growth strategies.
- CODI maintained its full-year 2024 guidance, expecting to hit the high end of its consolidated guidance ranges, reflecting confidence in its business outlook.
- The company has a strong liquidity position with $68.4 million in cash and $544 million available on its revolver, providing financial flexibility for future investments.
- CODI's industrial vertical faced challenges, with a decline in both revenues and adjusted EBITDA due to a weakening global macro economy.
- The HoneyPot company underperformed slightly, with revenue and EBITDA below expectations due to the loss of non-core SKUs at a large retailer.
- The company reported a consolidated net loss of $13.7 million for the second quarter, impacted by a loss on the sale of Crosman and tax expenses.
- 5.11 faced operational challenges related to inventory fluctuations and the PFAS transition, affecting its financial performance.
- CODI's leverage ratio remains a focus, with plans to reduce it further, but it still poses a risk if significant acquisitions are pursued.
Good afternoon, and welcome to Compass Diversified second-quarter 2024 conference call. Today's call is being recorded. All lines have been placed on mute. (Operator Instructions)
At this time, I would like to turn the conference over to Cody Slach of Gateway Group for introductions and the reading of the safe harbor statement. Please go ahead, sir.
Thank you, and welcome to Compass Diversified second quarter 2024 conference call. Representing the company today are Elias Sabo, CODI's CEO; Ryan Faulkingham, CODI's CFO; and Pat Maciariello, COO of Compass Group Management.
Before we begin, I'd like to point out that the Q2 2024 press release, including the financial tables and non-GAAP financial measure reconciliations for subsidiary adjusted EBITDA, adjusted earnings and pro-forma net sales are available at the Investor Relations section on the company's website at compassdiversifi.com.
The company also filed its Form 10-Q with the SEC today after the market closed, which includes
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
