Compass Diversified Declares Fourth Quarter 2021 Distributions on Common and Series A, B and C Preferred Shares
03 Januar 2022 - 10:15PM
Compass Diversified (NYSE: CODI) (“CODI” or the Company”), an owner
of leading middle market businesses, announced today that its Board
of Directors (the “Board”) has declared a quarterly cash
distribution of $0.25 per share on the Company’s common shares (the
“Common Shares”). The distribution for the three months ended
December 31, 2021 is payable on January 20, 2022 to all holders of
record of Common Shares as of January 13, 2022.
“We are excited to begin our first full year
treated as a corporation for U.S. federal income tax purposes,”
said Elias Sabo, CEO of CODI. “With the removal of certain
administrative requirements for our shareholders, we expect to be
able to expand our shareholder base and improve the likelihood of
our stock’s inclusion within stock indices. CODI is now entering
its next stage of growth and we are confident that our simplified
tax structure puts us in position to unlock substantial long-term
value for our shareholders.”
As previously announced and disclosed by CODI,
the reduction in the fourth quarter common distribution is a result
of the Company’s tax reclassification which became effective on
September 1, 2021 and the assumption of corporate tax liability.
The 2021 Schedule K-1, which is anticipated to be issued to
shareholders in late February 2022, will represent shareholder tax
liability from the beginning of 2021 through the Company’s tax
reclassification, and is expected to be the final Schedule K-1
distributed by the Company.
CODI’s common and preferred cash distributions
should constitute “qualified dividends” for U.S. federal income tax
purposes to the extent paid from “earnings and profits” (as
determined under U.S. federal income tax principles), provided that
the requisite holding period is met. To the extent that the amount
of the cash distributions exceeds earnings and profits, such
distribution will first be treated as a non-taxable return of
capital to the extent of the holder’s adjusted tax basis in the
shares, and thereafter be treated as capital gain from the sale or
exchange of such shares.
The Board also declared a quarterly cash
distribution of $0.453125 per share on the Company’s 7.250% Series
A Preferred Shares (the “Series A Preferred Shares”). The
distribution on the Series A Preferred Shares covers the period
from, and including, October 30, 2021, up to, but excluding,
January 30, 2022. The distribution for such period is payable on
January 30, 2022 to all holders of record of Series A Preferred
Shares as of January 15, 2022. The payment will occur on January
31, 2022, the next Business Day following the payment date.
The Board also declared a quarterly cash
distribution of $0.4921875 per share on the Company’s 7.875% Series
B Preferred Shares (the “Series B Preferred Shares”). The
distribution on the Series B Preferred Shares covers the period
from, and including, October 30, 2021, up to, but excluding,
January 30, 2022. The distribution for such period is payable on
January 30, 2022 to all holders of record of Series B Preferred
Shares as of January 15, 2022. The payment will occur on January
31, 2022, the next Business Day following the payment date.
The Board also declared a quarterly cash
distribution of $0.4921875 per share on the Company’s 7.875% Series
C Preferred Shares (the “Series C Preferred Shares”). The
distribution on the Series C Preferred Shares covers the period
from, and including, October 30, 2021, up to, but excluding,
January 30, 2022. The distribution for such period is payable on
January 30, 2022 to all holders of record of Series C Preferred
Shares as of January 15, 2022. The payment will occur on January
31, 2022, the next Business Day following the payment date.
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 design and manufacture of
custom packaging, insulation and componentry (Altor
Solutions);
- The manufacture of engineered
magnetic solutions for a wide range of specialty applications and
end-markets (Arnold Magnetic Technologies);
- The design, engineering and
marketing of dial based fit systems delivering a scientifically
proven performance advantage for athletes (BOA
Technology);
- The design and marketing of
wearable baby carriers, strollers and related products
(Ergobaby);
- The design, manufacture, and
marketing of high-end, one-of-a kind jewelry (Lugano
Diamonds);
- 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 may contain certain
forward-looking statements, including statements with regard to the
future performance of CODI. Words such as “believes,” “seek,”
“expects,” “projects,” and “future” or similar expressions, are
intended to identify forward-looking statements. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain
factors could cause actual results to differ materially from those
projected in these forward-looking statements, and some of these
factors are enumerated in the risk factor discussion in the Form
10-K filed by CODI with the SEC for the year ended December 31,
2020, as supplemented by the risk factor discussion in the Form
10-Q filed by CODI with the SEC for the quarter ended September 30,
2021, and other filings with the SEC. Except as required by law,
CODI undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations:The IGB Group
Leon Berman 212.477.8438 lberman@igbir.com |
Media Contact:Joele Frank, Wilkinson Brimmer KatcherJon Keehner /
Kate Thompson / Lyle Weston212-355-4449 |
Compass Diversified (NYSE:CODI)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Compass Diversified (NYSE:CODI)
Historical Stock Chart
Von Jul 2023 bis Jul 2024