Q3 2024 Compass Diversified Holdings Earnings Call Transcript
Key Points
- Compass Diversified Holdings (CODI) reported a record quarterly adjusted EBITDA of $114 million, marking a 28% increase over the same period in 2023.
- The company raised its full-year guidance for 2024, reflecting confidence in continued strong performance.
- CODI's branded consumer segment showed robust growth, with Pro Forma revenues increasing by 10.3% and adjusted EBIT rising by 27% year-over-year.
- The company successfully raised over $17 million in preferred stock capital, enhancing financial flexibility.
- CODI announced a new $100 million share repurchase program, indicating confidence in the intrinsic value of its business.
- The industrial segment experienced a decline, with revenues down by 4% and adjusted EBITA decreasing by 6.1% year-to-date.
- Altor Solutions faced challenges with its cold chain distribution partners, impacting performance.
- The company incurred approximately $900,000 in one-time costs due to Arnold's transition to a new facility, with further costs expected in Q4.
- Corporate costs and management fees increased by over $2 million year-over-year, partly due to non-recurring CFO transition expenses.
- The M&A market remains muted, limiting opportunities for strategic acquisitions.
Good afternoon and welcome to Compass Diversified's Third Quarter 2024 Conference Call. Today's call is being recorded. All lines have been placed on mute.
If you would like to ask a question at the end of the prepared remarks, please press star 11 on your touchtone phone. At this time, I would like to turn the conference call over to Cody Slach of Gateway Group for introductions and the reading of the state our statement. This is so you may begin the conference.
Thank you and welcome to Compass Diversified's Third Quarter 2024 Conference Call representing the company today are Elias Sabo, CODI's CEO; Stephen Keller, CODI's CFO; and Pat Maciariello, COO of Compass Group management.
Before we begin, I would like to point out that the Q3 2024 press release including the financial tables and non-GAAP financial measure reconciliations for subsidiary adjusted EBITA adjusted EBITA adjusted earnings and pro forma net. Sales are available at the investor relations section on the company's website at compassdiversified.com.
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