Compass Diversified to Discuss Differentiated Permanent Capital Model, Portfolio Transformation, Strong Financial Performance...
December 10 2020 - 8:00AM
Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an
owner of leading middle market businesses, today will host its 2020
Virtual Investor Day, where it will discuss how CODI’s
differentiated permanent capital model has positioned the Company
for growth in 2020 and the Company’s anticipated outlook for 2021.
The event will also include a presentation from Shawn Neville, CEO
of BOA Technology (“BOA”), CODI’s newest subsidiary company,
acquired in October 2020.
“We are excited to update the investor community on CODI’s
significant progress in 2020 and our optimism for the year ahead,”
said Elias Sabo, Chief Executive Officer of CODI. “CODI’s permanent
capital model has enabled our team to transform our portfolio over
the past three years and provided us with what we believe is a
clear structural advantage in the current dislocated market. We are
confident that our capital allocation strategy, active management
style and diverse group of subsidiaries have positioned us to
proactively execute on our growth strategy and we expect that these
factors will drive meaningful shareholder value in 2021 and
beyond.”
Compelling Value Proposition
In today’s presentation, CODI will outline the central tenants
that continue to drive the Company’s performance:
- Permanent capital
model allows the Company to be patient in
acquiring and actively managing leading middle market
businesses.
- Active management
style focuses on core areas that translate into
the highest value creation for shareholders.
- Management team is fully aligned with
shareholders and invests alongside them.
- Diverse set of niche, market-leading companies
reduces the volatility in CODI’s financial results, and the recent
acquisitions of BOA and Marucci only serve to further enhance that
diversification and the breadth of end markets served, as well as
strengthen CODI’s overall growth prospects.
Presentation from Newest Subsidiary – BOA
Technology
Over the past nearly two decades, the BOA Fit System has become
the global leader in performance fit solutions integrated into
market-leading, well-known premium brand partner products. At
today’s event, BOA CEO, Shawn Neville, will provide an overview of
BOA’s:
- History and expansion into new categories;
- Competitive advantages including diverse intellectual property
portfolio;
- Large and growing addressable consumer market; and
- Focus on being a good corporate citizen and doing good for its
communities and the environment.
Continued Strong Financial Performance
In today’s presentation, CODI will also discuss the Company’s
strong financial position, including:
- How CODI’s strong balance sheet positioned the Company to
execute on the compelling acquisitions of Marucci Sports and BOA in
2020;
- CODI’s leverage ratio history and optimum leverage level for
the business;
- Efforts to drive CODI’s cost of capital lower;
- 2020 financial performance substantially exceeding
expectations; and
- Providing an update on guidance, including that CODI expects to
be at the higher end of the previously disclosed guidance for
2020.
Webcast Information
Today’s Virtual Investor Day will begin at 1:00 pm ET. A live
video webcast including audio, video, presentation materials and an
archived replay, is available here: 2020 Virtual
Investor Day, or on the investor relations page of the
Company’s website IR.CompassDiversified.com. Please allow extra
time prior to the start of the event to download any necessary
software that may be needed to view the webcast.
About Compass Diversified (“CODI”)
CODI owns and manages a diverse set of highly defensible North
American middle market businesses. Each of its current subsidiaries
is a leader in its niche market. For more information,
visit compassdiversified.com.
Leveraging its permanent capital base, long-term disciplined
approach and actionable expertise, CODI maintains controlling
ownership interests in each of its subsidiaries, maximizing its
ability to impact long-term cash flow generation and value
creation. The Company provides both debt and equity capital for its
subsidiaries, contributing to their financial and operating
flexibility. CODI utilizes the cash flows generated by its
subsidiaries to invest in the long-term growth of the Company and
has consistently generated strong returns through its culture of
transparency, alignment and accountability.
Our ten majority-owned subsidiaries are engaged in the following
lines of business:
- The design and marketing of purpose-built technical apparel and
gear serving a wide range of global customers
(5.11);
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold
Magnetic Technologies);
- The design and marketing of dial-based fit systems that deliver
performance fit across footwear, headwear and medical bracing
products (BOA Technology);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of custom molded protective foam
solutions and OE components (Foam
Fabricators);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The design and manufacture of baseball and softball equipment
and apparel (Marucci
Sports);
- The manufacture and marketing of portable food warming systems
used in the foodservice industry, creative indoor and outdoor
lighting, and home fragrance solutions for the consumer markets
(Sterno); and
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Velocity
Outdoor).
Forward-Looking Statements
This press release contains, and the webcast will contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to, statements as to the
future performance or liquidity of CODI and its subsidiaries, such
as expectations regarding our 2020 guidance or 2021 outlook as well
as other statements with regard to the future performance of CODI
and its subsidiaries.
We may use words such as “anticipate,” “believe,” “expect,”
“intend,” “will,” “should,” “may,” “seek,” “look,” and similar
expressions to identify forward-looking statements. The
forward-looking statements contained in this press release and
webcast involve risks and uncertainties. Actual results could
differ materially from those implied or expressed in the
forward-looking statements for any reason, including the factors
set forth in “Risk Factors” and elsewhere in CODI’s annual report
on Form 10-K and its quarterly reports on Form 10-Q. Other factors
that could cause actual results to differ materially include: the
impact, in the near, medium and long-term, of the COVID-19 pandemic
or social or political unrest on our business, results of
operations, financial position, liquidity, cash flows or ability to
make distributions; our business prospects and the prospects of our
portfolio companies; the impact of investments that we make or
expect to make; the dependence of our future success on the general
economy and its impact on the industries in which we operate; the
ability of our portfolio companies to achieve their objectives; the
adequacy of our cash resources and working capital; the timing of
cash flows, if any, from the operations of our portfolio companies;
changes in the economy, financial markets and political
environment; risks associated with possible disruption in CODI’s
operations or the economy generally due to terrorism, natural
disasters, social, civil and political unrest or the COVID-19
pandemic; future changes in laws or regulations (including the
interpretation of these laws and regulations by regulatory
authorities); and other considerations that may be disclosed from
time to time in CODI’s publicly disseminated documents and filings.
Undue reliance should not be placed on such forward-looking
statements as such statements speak only as of the date on which
they are made. Although, except as required by law, CODI undertakes
no obligation to revise or update any forward-looking statements,
whether as a result of new information, future events or otherwise,
you are advised to consult any additional disclosures that CODI may
make directly to you or through reports that it in the future may
file with the SEC, including annual reports on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K.
Contacts
Investor Relations:The IGB GroupLeon
Berman212-477-8438lberman@igbir.com
Media Contact:Joele Frank, Wilkinson Brimmer
KatcherJon Keehner / Kate Thompson / Julia
Sottosanti212-355-4449
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