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Dec 31, 2023
Compass Diversified Q4 2023 Earnings Report
Announced strong Q4 2023 financial results, driven by its unique business model and significant competitive advantage.
Key Takeaways
Compass Diversified reported strong Q4 2023 results, exceeding expectations with significant growth in revenue, net income, and Subsidiary Adjusted EBITDA, led by Lugano Diamonds. The company's diversified business model and strategic sale of Marucci Sports contributed to the positive performance.
Net sales in the fourth quarter increased by 7% to $567.0 million.
Branded consumer net sales in the fourth quarter were up 13% to $371.9 million.
Net income in the fourth quarter reached $139.4 million, compared to $8.7 million in the previous year.
Adjusted EBITDA in the fourth quarter increased by 35% to $94.8 million.
Compass Diversified
Compass Diversified
Compass Diversified Revenue by Segment
Revenue by Segment
Branded Consumer Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
CODI expects its current subsidiaries, inclusive of The Honey Pot Company as if we owned it from January 1, 2024, to produce consolidated Subsidiary Adjusted EBITDA for the full year 2024 of between $480 million and $520 million. Adjusted EBITDA only includes results from The Honey Pot Company from the date of acquisition. In addition, the Company expects to earn between $145 million and $160 million in Adjusted Earnings for the full year 2024.
Positive Outlook
- Expects current subsidiaries, inclusive of The Honey Pot Company, to produce consolidated Subsidiary Adjusted EBITDA between $480 million and $520 million for full year 2024.
- Branded Consumer vertical is expected to produce $355 million to $385 million in Subsidiary Adjusted EBITDA.
- Industrial vertical is expected to produce $125 million to $135 million in Subsidiary Adjusted EBITDA.
- Expects Adjusted EBITDA between $390 million and $430 million for full year 2024.
- Expects Adjusted Earnings between $145 million and $160 million for full year 2024.
Challenges Ahead
- Guidance is based on the summation of the Company’s expectations for its current subsidiaries in 2024, and is absent additional acquisitions or divestitures.
- Guidance excludes corporate expenses such as interest expense, management fees paid by CODI and corporate overhead.
- Adjusted EBITDA only includes results from The Honey Pot Company from the date of acquisition.
- Uncertainty regarding Income (Loss) from Continuing Operations or Net Income (Loss) or the applicable reconciling items.
- Unable to address the probable significance of the unavailable information, which could be material to future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income