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Sep 30, 2023

Compass Diversified Q3 2023 Earnings Report

Reported remarkably strong third quarter results, driven by Lugano’s continued outperformance and the majority of companies performing above expectations.

Key Takeaways

Compass Diversified reported a decrease in net sales by 1% to $569.6 million, while experiencing a net loss of $3.8 million. Despite the net loss, Adjusted EBITDA increased by 13% to $103.9 million. The company raised its full-year Adjusted EBITDA outlook to between $450 million and $465 million and Adjusted Earnings to between $130 million and $140 million.

Net sales decreased by 1% to $569.6 million.

Branded consumer pro forma net sales increased 2% to $388.3 million.

Niche industrial net sales decreased 8% to $181.2 million.

Adjusted EBITDA increased 13% to $103.9 million.

Total Revenue
$570M
Previous year: $598M
-4.7%
EPS
$0.57
Previous year: $0.64
-10.9%
Adjusted EBITDA
$104M
Previous year: $98.3M
+5.7%
Gross Profit
$228M
Cash and Equivalents
$64.7M
Previous year: $61.3M
+5.6%
Free Cash Flow
$7.61M
Total Assets
$3.81B

Compass Diversified

Compass Diversified

Compass Diversified Revenue by Segment

Forward Guidance

Compass Diversified raised its full-year Adjusted EBITDA and Adjusted Earnings outlook.

Positive Outlook

  • Expects consolidated subsidiary Adjusted EBITDA of between $450 million and $465 million for the full year 2023.
  • Estimates are based on the summation of the Company’s expectations for its current subsidiaries in 2023, including Marucci.
  • Expects to earn between $130 million and $140 million in Adjusted Earnings for the full year 2023, including Marucci.

Revenue & Expenses

Visualization of income flow from segment revenue to net income