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Mar 31, 2020
Compass Diversified Q1 2020 Earnings Report
Achieved solid operating results and generated strong cash flow, exceeding expectations.
Key Takeaways
Compass Diversified Holdings reported solid first-quarter operating results with strong cash flow, exceeding management's expectations. The company reported net sales of $333.4 million and net income of $4.9 million.
Net sales were reported at $333.4 million.
Net income was reported at $4.9 million.
Adjusted EBITDA was reported at $46.0 million.
Cash Flow Available for Distribution and Reinvestment (CAD) was reported at $17.7 million.
Forward Guidance
Due to the current economic uncertainty caused by COVID-19, the Company has decided to withdraw full-year 2020 Adjusted EBITDA and Payout Ratio guidance until a clearer picture emerges for its businesses. The Company anticipates that COVID-19 will have a negative impact on its results of operations, financial condition and cash flows for the second quarter ended June 30, 2020. The Company estimates its second quarter 2020 Total Adjusted EBITDA will decrease approximately 30% to 50% as compared to the Total Adjusted EBITDA from the prior year second quarter.
Positive Outlook
- Company believes that it currently has adequate liquidity and capital resources to meet its existing obligations
- Company believes that it currently has adequate liquidity and capital resources to meet quarterly distributions to its shareholders
- The health of the CODI team and its various stakeholders is the Company’s highest priority
- Company is closely monitoring the impact of the COVID-19 outbreak on all aspects of its business
- The company is working with management at each of its businesses to reduce controllable costs
Challenges Ahead
- COVID-19 will have a negative impact on its results of operations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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