Content Detail

• Content META

  Title	Compass Diversified Completes Restatement of Previously Issued Financial Statements
  ID	29087932
  External ID	115000499
  Author
  Published Date	Dec. 8, 2025, 5:50 a.m.
  Summary	This is a paid press release. Contact the press release distributor directly with any inquiries. Compass Diversified Completes Restatement of Previously Issued Financial Statements Compass Diversified
  Tags
  URL	https://finance.yahoo.com/news/compass-diversified-completes-restatement-previously-115000499.html
  Sentiment	Negative: 0.01387    Neutral: 0.13361    Positive: 0.85251
  Relevance	0.03030

• Content Details

  Content ID	36690847
  Key	0b796eed-b049-4a50-88ed-83f2669b0e01
  Content	This is a paid press release. Contact the press release distributor directly with any inquiries. Compass Diversified Completes Restatement of Previously Issued Financial Statements Compass Diversified Holdings Mon, December 8, 2025 at 3:50 AM PST 21 min read CODI CODI-PA CODI-PB Compass Diversified Holdings WESTPORT, Conn., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle-market branded consumer and industrial businesses, today announced the filing of its restated financial results for fiscal years 2022, 2023, and 2024 and the financial information for each of the interim periods included within those years. “We are pleased to have completed this extensive restatement process. The financial and accounting fraud perpetrated by the former CEO of Lugano Holding, Inc. (“Lugano”) was pervasive, complex and isolated to Lugano. Our restatement is an important step in putting this chapter behind us,” said Elias Sabo, CEO of CODI. “We are focused on reducing our leverage and continuing to execute on the strategy that has made CODI successful since inception: managing and growing high-quality middle-market companies to generate durable, long-term value for our shareholders.” “Importantly, our eight other subsidiaries were not involved with the events at Lugano and, collectively, continue to perform well. Their execution highlights the strength of these businesses and the resilience of our business model,” Sabo continued. “As a result, we are adjusting our full year 2025 guidance for Subsidiary Adjusted EBITDA to between $330 million and $360 million, which is consistent with our prior guidance, when you exclude Lugano.” Sabo added, “We are in active discussions with our senior lenders regarding an amendment to our credit agreement that would provide additional relief and flexibility with respect to our current leverage profile and certain other covenants. We currently anticipate announcing an amendment in the coming weeks.” In the coming weeks CODI also expects to file 2025 first, second and third quarter financial results on Form 10-Q, which will bring the Company back into compliance with the Securities and Exchange Commission’s annual and quarterly filing requirements. Note Regarding Use of Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP measure used by the Company to assess its performance. We have reconciled Adjusted EBITDA to Income (Loss) from Continuing Operations on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA. We believe that Adjusted EBITDA provides useful information to investors and reflects important financial measures as it excludes the effects of items which reflect the impact of long-term investment decisions, rather than the performance of near-term operations. When compared to Income (Loss) from Continuing Operations, Adjusted EBITDA is limited in that it does not reflect the periodic costs of certain capital assets used in generating revenues of our businesses or the non-cash charges associated with impairments, as well as certain cash charges. The presentation of Adjusted EBITDA allows investors to view the performance of our businesses in a manner similar to the methods used by us and the management of our businesses, provides additional insight into our operating results and provides a measure for evaluating targeted businesses for acquisition. Story Continues In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled 2025 Subsidiary Adjusted EBITDA to its comparable GAAP measure because we do not provide guidance on Net Income (Loss) from Continuing Operations or the applicable reconciling items as a result of the uncertainty regarding, and the potential variability of, these items. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. Adjusted EBITDA is not meant to be a substitute for GAAP measures and may be different from or otherwise inconsistent with non-GAAP financial measures used by other companies. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, CODI’s expectations with respect to the timing of its delinquent financial statements, CODI’s expectations regarding its future performance, liquidity and leverage, the future performance of CODI’s subsidiaries, potential amendments to CODI’s credit agreement and potential relief granted by CODI’s lenders and the filing or delay of CODI’s periodic reports. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believe,” “expect,” “may,” “could,” “would,” “plan,” “intend,” “estimate,” “predict,” “potential,” “continue,” “should” or “anticipate” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on beliefs and assumptions by CODI’s Board of Directors and management, and on information currently available to CODI’s Board of Directors and management. These statements involve risk and uncertainties that could cause CODI’s actual results and outcomes to differ, perhaps materially, including but not limited to: the discovery of additional information relevant to the Lugano investigation; a further material delay in CODI’s financial reporting or ability to hold an annual meeting of stockholders; the impacts of restatement; CODI’s ability to regain compliance with NYSE continued listing requirements; the cooperation of, and future concessions granted by, CODI’s lenders; control deficiencies identified or that may be identified in the future that will result in material weaknesses in CODI’s internal control over financial reporting; and litigation relating to the investigation, including CODI’s representations regarding its financial statements, and current and future litigation, enforcement actions or investigations relating to CODI’s internal controls, restatement reviews, the Lugano investigation or related matters. Please see CODI’s Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2024 filed with the SEC on December 8, 2025 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements have been made. Except as required by law, CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events. Investor Relations Compass Diversified irinquiry@compassdiversified.com Compass Diversified Holdings Condensed Consolidated Balance Sheets (in thousands) December 31, 2024 (As Restated) December 31, 2023 (As Restated) Assets Current assets Cash and cash equivalents $ 59,659 $ 446,616 Accounts receivable, net 207,172 185,237 Inventories, net 571,248 522,509 Prepaid expenses and other current assets 126,692 77,769 Current assets of discontinued operations — 36,915 Total current assets 964,771 1,269,046 Property, plant and equipment, net 244,746 191,283 Goodwill 895,916 773,569 Intangible assets, net 983,396 808,344 Other non-current assets 208,593 195,016 Non-current assets of discontinued operations — 87,883 Total assets $ 3,297,422 $ 3,325,141 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 103,239 $ 90,708 Accrued expenses 318,476 237,817 Due to related parties 18,036 16,025 Current portion, long-term debt 1,774,290 1,671,879 Subsidiary financing arrangements 169,765 100,741 Other current liabilities 49,617 34,812 Current liabilities of discontinued operations — 8,986 Total current liabilities 2,433,423 2,160,968 Deferred income taxes 108,091 103,264 Other non-current liabilities 225,334 203,207 Non-current liabilities of discontinued operations — 1,277 Total liabilities 2,766,848 2,468,716 Stockholders' equity Total stockholders' equity attributable to Holdings 678,620 929,660 Noncontrolling interest (148,046 ) (89,991 ) Noncontrolling interest of discontinued operations — 16,756 Total stockholders' equity 530,574 856,425 Total liabilities and stockholders’ equity $ 3,297,422 $ 3,325,141 Compass Diversified Holdings Consolidated Statements of Operations Year ended December 31, (in thousands, except per share data) 2024 (As Restated) 2023 (As Restated) Net revenues $ 1,788,013 $ 1,689,920 Cost of revenues 1,037,594 1,015,200 Gross profit 750,419 674,720 Operating expenses: Selling, general and administrative expense 587,521 502,013 Management fees 74,767 67,945 Amortization expense 94,817 83,574 Impairment expense 8,182 90,597 Operating income (loss) (14,868 ) (69,409 ) Other income (expense): Interest expense, net (122,802 ) (109,892 ) Amortization of debt issuance costs (4,018 ) (4,038 ) Loss on sale of Crosman (24,218 ) — Other income (expense), net (143,304 ) (83,114 ) Net income (loss) before income taxes (309,210 ) (266,453 ) Provision for income taxes 18,612 8,198 Income (loss) from continuing operations (327,822 ) (274,651 ) Income (loss) from discontinued operations, net of income tax (6,905 ) 24,208 Gain on sale of discontinued operations 11,957 283,025 Net income (322,770 ) 32,582 Less: Net income (loss) attributable to noncontrolling interest (111,025 ) (75,761 ) Less: Net income (loss) from discontinued operations attributable to noncontrolling interest (2,884 ) (304 ) Net income attributable to Holdings $ (208,861 ) $ 108,647 Basic income (loss) per common share attributable to Holdings Continuing operations $ (3.94 ) $ (3.57 ) Discontinued operations 0.11 4.27 $ (3.83 ) $ 0.70 Basic weighted average number of common shares outstanding 75,454 72,105 Cash distributions declared per Trust common share $ 1.00 $ 1.00 Restatement of Previously Issued Consolidated Financial Statements The Company has restated its consolidated financial statements for the fiscal years ended December 31, 2024 and 2023 below. Below is a summary description of the significant adjustments made in connection with the restatement of the Consolidated Balance Sheet and Consolidated Statement of Operations for the fiscal years ended December 31, 2024 and 2023: Consolidated Balance Sheets ADJ 1 Accounts Receivable - amounts were recorded at Lugano as accounts receivable which did not represent activity associated with a valid revenue transaction. ADJ 2 Inventory and Other Current Assets - amounts were recorded at Lugano as purchases of inventory or vendor prepayments which did not represent valid purchases. Invalid inventory transactions were also recorded in connection with barter purchases of jewelry or gems from customers in exchange for reducing accounts receivable transactions, and in connection with invalid revenue transactions. Other current assets increased as a result of the revised Lugano tax provision and a tax receivable that was recorded in each of the years presented in the consolidated financial statements. ADJ 3 Goodwill and Intangible Assets - the purchase price allocation of the assets acquired and liabilities assumed in the acquisition of Lugano in September 2021 was based upon materially incorrect financial information. As a result, the Company re-performed the purchase price allocation, which resulted in a change in the fair value of the intangible assets acquired and the calculation of goodwill. Additionally, due to the adjustments to historical financial information that resulted from the Lugano Investigation, the Company determined that a triggering event had occurred as of December 31, 2021 and December 31, 2022 and performed impairment testing of the goodwill and definite lived intangibles at Lugano as of these dates, resulting in the impairment of these balances. ADJ 4 Accrued expenses - Unrecorded liabilities related to inventory transactions at Lugano and accrued interest associated with the Lugano Financing Arrangements have been recorded in the consolidated balance sheets ADJ 5 Financing arrangements - Lugano entered into various financing arrangements with third parties that were not previously recorded in the historical financial statements of Lugano as debt. In connection with the Lugano Investigation, the Company determined that certain cash recorded as reduction of accounts receivable or purchases of inventory actually represented unrecorded financing arrangements made with third parties to purportedly jointly invest with Lugano in the purchase of a specified jewelry piece. These arrangements represent debt that has been recorded on the Company's consolidated balance sheets as such. ADJ 6 Noncontrolling interest - the correction of the misstatements resulted in a decrease in the balance of noncontrolling interest at Lugano, and reduced the noncontrolling income that previously had been recorded related to Lugano. Consolidated Statement of Operations ADJ 7 Net revenues - net revenues at Lugano were overstated in each of the periods presented as a result of the recording of invalid revenue transactions or the misrepresentation of funds received as revenue. ADJ 8 Cost of revenues - cost of revenues at Lugano was overstated in each of the periods presented as a result of the recording of the cost of revenues associated with invalid revenue transactions and the misapplication of funds paid as inventory purchases. ADJ 9 Interest expense, net - interest expense associated with the Lugano financing arrangements described above have been recorded in the consolidated statement of operations in each of the periods presented. ADJ 10 Other income (expense), net - reflects the expense recognized at Lugano related to losses resulting from the accounting for the transactions associated with the Lugano financing arrangements. ADJ 11 Income tax provision (benefit) - the income tax provision (benefit) at Lugano has been recalculated in each of the periods presented as a result of the effect of the aforementioned adjustments to the consolidated statement of operations. Compass Diversified Holdings Consolidated Balance Sheet December 31, 2024 ADJ Reference As Reported Adjustments As Restated Assets Current assets: Cash and cash equivalents $ 59,727 (68 ) $ 59,659 Accounts receivable, net ADJ 1 444,386 (237,214 ) 207,172 Inventories, net ADJ 2 962,408 (391,160 ) 571,248 Prepaid expenses and other current assets ADJ 2 101,129 25,563 126,692 Total current assets 1,567,650 (602,879 ) 964,771 Property, plant and equipment, net 244,746 — 244,746 Goodwill ADJ 3 982,253 (86,337 ) 895,916 Intangible assets, net ADJ 3 1,049,186 (65,790 ) 983,396 Other non-current assets 208,587 6 208,593 Total assets $ 4,052,422 $ (755,000 ) $ 3,297,422 Liabilities and stockholders’ equity Current liabilities: Accounts payable 104,304 (1,065 ) 103,239 Accrued expenses ADJ 4 197,829 120,647 318,476 Due to related parties 18,036 — 18,036 Current portion, long-term debt (1) 15,000 1,759,290 1,774,290 Subsidiary financing arrangements ADJ 5 — 169,765 169,765 Other current liabilities 49,617 — 49,617 Total current liabilities 384,786 2,048,637 2,433,423 Deferred income taxes 119,948 (11,857 ) 108,091 Long-term debt (1) 1,759,290 (1,759,290 ) — Other non-current liabilities 225,334 — 225,334 Total liabilities 2,489,358 277,490 2,766,848 Stockholders’ equity Trust preferred shares, 50,000 authorized; 17,497 shares issued and outstanding at December 31, 2024 Series A preferred shares, no par value, 4,551 shares issued and outstanding at December 31, 2024 109,159 — 109,159 Series B preferred shares, no par value, 6,192 shares issued and outstanding at December 31, 2024 147,906 — 147,906 Series C preferred shares, no par value, 6,754 shares issued and outstanding at December 31, 2024 161,767 — 161,767 Trust common shares, no par value, 500,000 authorized; 76,135 shares issued and 75,236 shares outstanding at December 31, 2024 1,289,010 — 1,289,010 Treasury shares, at cost (18,910 ) — (18,910 ) Accumulated other comprehensive income (loss) (5,815 ) 478 (5,337 ) Accumulated deficit (386,324 ) (618,651 ) (1,004,975 ) Total stockholders’ equity attributable to Holdings 1,296,793 (618,173 ) 678,620 Noncontrolling interest ADJ 6 266,271 (414,317 ) (148,046 ) Total stockholders’ equity 1,563,064 (1,032,490 ) 530,574 Total liabilities and stockholders’ equity $ 4,052,422 $ (755,000 ) $ 3,297,422 (1) In retrospectively testing financial covenant compliance under the Company's 2022 Credit Facility in each of the years ended December 31, 2024, 2023 and 2022 in reliance on the restated consolidated financial information, the Company would not have been in compliance with such financial covenants as of the years ended December 31, 2024 and 2023. As a result, the 2022 Term Loan and 2022 Revolving Credit Facility have been classified as current in the Consolidated Financial Statements as of December 31, 2024 and 2023. Additionally, because the 2029 Senior Notes and 2032 Senior Notes may have been subject to acceleration had the lenders under the 2022 Credit Facility exercised their acceleration rights during such historical periods, the 2029 Senior Notes and 2032 Senior Notes have also been classified as current at December 31, 2024 and 2023. Compass Diversified Holdings Consolidated Statement of Operations Year Ended December 31, 2024 ADJ Reference As Reported Adjustments As Restated Net revenues ADJ 7 $ 2,198,233 $ (410,220 ) $ 1,788,013 Cost of revenues ADJ 8 1,197,873 (160,279 ) 1,037,594 Gross profit 1,000,360 (249,941 ) 750,419 Operating expenses: Selling, general and administrative expense 587,521 — 587,521 Management fees 74,767 — 74,767 Amortization expense ADJ 3 99,760 (4,943 ) 94,817 Impairment expense 8,182 — 8,182 Operating income (loss) 230,130 (244,998 ) (14,868 ) Other income (expense): Interest expense, net ADJ 9 (106,683 ) (16,119 ) (122,802 ) Amortization of debt issuance costs (4,018 ) — (4,018 ) Loss on sale of Crosman (24,218 ) — (24,218 ) Other income (expense), net ADJ 10 (3,902 ) (139,402 ) (143,304 ) Income (loss) from continuing operations before income taxes 91,309 (400,519 ) (309,210 ) Provision for income taxes ADJ 11 49,012 (30,400 ) 18,612 Income (loss) from continuing operations 42,297 (370,119 ) (327,822 ) Loss from discontinued operations, net of income tax (6,905 ) — (6,905 ) Gain on sale of discontinued operations, net of income tax 11,957 — 11,957 Net income (loss) 47,349 (370,119 ) (322,770 ) Less: Net income (loss) from continuing operations attributable to noncontrolling interest 37,426 (148,451 ) (111,025 ) Less: Net loss from discontinued operations attributable to noncontrolling interest (2,884 ) — (2,884 ) Net income (loss) attributable to Holdings $ 12,807 $ (221,668 ) $ (208,861 ) Amounts attributable to common shares of Holdings: Income (loss) from continuing operations $ 4,871 $ (221,668 ) $ (216,797 ) Loss from discontinued operations, net of income tax (4,021 ) — (4,021 ) Gain on sale of discontinued operations, net of income tax 11,957 — 11,957 Net income (loss) attributable to Holdings $ 12,807 $ (221,668 ) $ (208,861 ) Basic and fully diluted income (loss) per share attributable to Holdings Continuing operations (1.25 ) (2.69 ) (3.94 ) Discontinued operations 0.11 — 0.11 $ (1.14 ) $ (2.69 ) $ (3.83 ) Compass Diversified Holdings Consolidated Balance Sheet December 31, 2023 ADJ Reference As Reported Adjustments As Restated Assets Current assets: Cash and cash equivalents 446,684 (68 ) 446,616 Accounts receivable, net ADJ 1 308,183 (122,946 ) 185,237 Inventories, net ADJ 2 723,194 (200,685 ) 522,509 Prepaid expenses and other current assets ADJ 2 88,844 (11,075 ) 77,769 Current assets of discontinued operations 36,915 — 36,915 Total current assets 1,603,820 (334,774 ) 1,269,046 Property, plant and equipment, net 191,283 — 191,283 Goodwill ADJ 3 859,907 (86,338 ) 773,569 Intangible assets, net ADJ 3 879,078 (70,734 ) 808,344 Other non-current assets 195,010 6 195,016 Non-current assets of discontinued operations 87,883 — 87,883 Total assets $ 3,816,981 $ (491,840 ) $ 3,325,141 Liabilities and stockholders’ equity Current liabilities: Accounts payable 91,089 (381 ) 90,708 Accrued expenses ADJ 4 151,443 86,374 237,817 Due to related parties 16,025 — 16,025 Current portion, long-term debt (1) 10,000 1,661,879 1,671,879 Subsidiary financing arrangements ADJ 5 — 100,741 100,741 Other current liabilities 34,812 — 34,812 Current liabilities of discontinued operations 8,986 — 8,986 Total current liabilities 312,355 1,848,613 2,160,968 Deferred income taxes 118,882 (15,618 ) 103,264 Long-term debt (1) 1,661,879 (1,661,879 ) — Other non-current liabilities 203,207 — 203,207 Non-current liabilities of discontinued operations 1,277 — 1,277 Total liabilities 2,297,600 171,116 2,468,716 Stockholders’ equity Trust preferred shares, 50,000 authorized; 12,600 shares issued and outstanding at December 31, 2023 Series A preferred shares, no par value, 4,000 shares issued and outstanding at December 31, 2023 96,417 — 96,417 Series B preferred shares, no par value, 4,000 shares issued and outstanding at December 31, 2023 96,504 — 96,504 Series C preferred shares, no par value, 4,600 shares issued and outstanding at December 31, 2023 110,997 — 110,997 Trust common shares, no par value, 500,000 authorized; 75,753 shares issued and 75,270 shares outstanding at December 31, 2023 1,281,303 — 1,281,303 Treasury shares, at cost (9,339 ) — (9,339 ) Accumulated other comprehensive income (loss) 111 (108 ) 3 Accumulated deficit (249,243 ) (396,982 ) (646,225 ) Total stockholders’ equity attributable to Holdings 1,326,750 (397,090 ) 929,660 Noncontrolling interest ADJ 6 175,875 (265,866 ) (89,991 ) Noncontrolling interest of discontinued operations 16,756 — 16,756 Total stockholders’ equity 1,519,381 (662,956 ) 856,425 Total liabilities and stockholders’ equity $ 3,816,981 $ (491,840 ) $ 3,325,141 (1) In retrospectively testing financial covenant compliance under the Company's 2022 Credit Facility in each of the years ended December 31, 2024, 2023 and 2022 in reliance on the restated consolidated financial information, the Company would not have been in compliance with such financial covenants as of the years ended December 31, 2024 and 2023. As a result, the 2022 Term Loan and 2022 Revolving Credit Facility have been classified as current in the Consolidated Financial Statements as of December 31, 2024 and 2023. Additionally, because the 2029 Senior Notes and 2032 Senior Notes may have been subject to acceleration had the lenders under the 2022 Credit Facility exercised their acceleration rights during such historical periods, the 2029 Senior Notes and 2032 Senior Notes have also been classified as current at December 31, 2024 and 2023. Compass Diversified Holdings Consolidated Statement of Operations Year Ended December 31, 2023 ADJ Reference As Reported Adjustments As Restated Net revenues ADJ 7 $ 1,965,017 $ (275,097 ) $ 1,689,920 Cost of revenues ADJ 8 1,132,014 (116,814 ) 1,015,200 Gross profit 833,003 (158,283 ) 674,720 Operating expenses: Selling, general and administrative expense 502,013 — 502,013 Management fees 67,945 — 67,945 Amortization expense ADJ 3 88,396 (4,822 ) 83,574 Impairment expense 89,400 1,197 90,597 Operating income (loss) 85,249 (154,658 ) (69,409 ) Other income (expense): Interest expense, net ADJ 9 (105,179 ) (4,713 ) (109,892 ) Amortization of debt issuance costs (4,038 ) — (4,038 ) Other income (expense), net ADJ 10 1,779 (84,893 ) (83,114 ) Income (loss) from continuing operations before income taxes (22,189 ) (244,264 ) (266,453 ) Provision for income taxes ADJ 11 22,639 (14,441 ) 8,198 Income (loss) from continuing operations (44,828 ) (229,823 ) (274,651 ) Income (loss) from discontinued operations, net of income tax 24,208 — 24,208 Gain on sale of discontinued operations, net of income tax 283,025 — 283,025 Net income 262,405 (229,823 ) 32,582 Less: Net income from continuing operations attributable to noncontrolling interest 16,423 (92,184 ) (75,761 ) Less: Net income (loss) from discontinued operations attributable to noncontrolling interest (304 ) — (304 ) Net income attributable to Holdings $ 246,286 $ (137,639 ) $ 108,647 Amounts attributable to common shares of Holdings: Loss from continuing operations $ (61,251 ) $ (137,639 ) $ (198,890 ) Income from discontinued operations, net of income tax 24,512 — 24,512 Gain on sale of discontinued operations, net of income tax 283,025 — 283,025 Net income attributable to Holdings $ 246,286 $ (137,639 ) $ 108,647 Basic and fully diluted income (loss) per share attributable to Holdings Continuing operations (1.81 ) (1.76 ) (3.57 ) Discontinued operations 4.27 — 4.27 $ 2.46 $ (1.76 ) $ 0.70 Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Year ended December 31, 2024 (Unaudited) (in thousands) Corporate 5.11 BOA Lugano (Restated) PrimaLoft THP Velocity Outdoor Altor Solutions Arnold Sterno Consolidated (Restated) Net income (loss) from continuing operations $ (35,634 ) $ 20,634 $ 20,791 $ (275,730 ) $ (10,575 ) $ (9,761 ) $ (54,851 ) $ 5,635 $ (2,969 ) $ 14,638 $ (327,822 ) Adjusted for: Provision (benefit) for income taxes (2,095 ) 4,526 4,962 904 (3,741 ) (2,894 ) 6,810 2,280 2,986 4,874 18,612 Interest expense, net 106,414 (14 ) (21 ) 16,122 (70 ) (52 ) 52 — 371 — 122,802 Intercompany interest (157,585 ) 13,366 20,125 56,013 17,916 10,552 9,255 10,771 7,121 12,466 — Depreciation and amortization 675 22,734 21,594 5,391 21,318 18,974 8,042 21,553 9,265 18,473 148,019 EBITDA (88,225 ) 61,246 67,451 (197,300 ) 24,848 16,819 (30,692 ) 40,239 16,774 50,451 (38,389 ) Other (income) expense 460 40 511 139,623 181 3 24,557 2,746 (9 ) (590 ) 167,522 Non-controlling shareholder compensation — 2,129 5,683 2,437 2,382 1,674 403 988 18 631 16,345 Impairment expense — — — — — 8,182 — — — 8,182 Acquisition expenses — — — — — 3,479 — 1,872 — — 5,351 Integration services fee — — — — — 2,625 — — — — 2,625 Other (1) — — — — — 90 1,500 696 10,426 476 13,188 Adjusted EBITDA $ (87,765 ) $ 63,415 $ 73,645 $ (55,240 ) $ 27,411 $ 24,690 $ 3,950 $ 46,541 $ 27,209 $ 50,968 $ 174,824 (1) Other represents non-recurring operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the current year, the calculation of Adjusted EBITDA for Arnold includes the add-back of certain expenses that have been incurred related to the relocation of two of Arnold's facilities in the United States. Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Year ended December 31, 2023 (Unaudited) (in thousands) Corporate 5.11 BOA Lugano (Restated) PrimaLoft Velocity Outdoor Altor Solutions Arnold Sterno Consolidated (Restated) Net income (loss) from continuing operations $ (60,454 ) $ 21,690 $ 16,496 $ (177,508 ) $ (69,883 ) $ (40,045 ) $ 16,504 $ 10,434 $ 8,115 $ (274,651 ) Adjusted for: Provision (benefit) for income taxes 301 4,994 2,863 148 (5,673 ) (5,616 ) 5,890 4,185 1,106 8,198 Interest expense, net 104,856 (8 ) (18 ) 4,716 (11 ) 352 — 5 — 109,892 Intercompany interest (126,240 ) 20,244 7,580 32,837 18,123 13,510 10,486 6,806 16,654 — Depreciation and amortization 1,498 26,009 22,932 3,232 21,478 13,282 16,741 8,441 19,959 133,572 EBITDA (80,039 ) 72,929 49,853 (136,575 ) (35,966 ) (18,517 ) 49,621 29,871 45,834 (22,989 ) Other (income) expense (130 ) (515 ) 98 84,815 62 (1,210 ) 1,440 (5 ) (1,441 ) 83,114 Non-controlling shareholder compensation — 1,191 3,019 1,474 980 914 986 27 860 9,451 Impairment expense — — — 1,197 57,810 31,590 — — — 90,597 Integration services fee — — — — 2,375 — — — — 2,375 Other — — 3,072 — — — — — 1,434 4,506 Adjusted EBITDA $ (80,169 ) $ 73,605 $ 56,042 $ (49,089 ) $ 25,261 $ 12,777 $ 52,047 $ 29,893 $ 46,687 $ 167,054 View Comments Terms and Privacy Policy CA Privacy Notice Your Privacy Choices Opted out of sale / share More Info
  Content Reference URL	None

• Publisher

  Publisher Name	Financial Planning (#6135)
  Publisher URL	https://finance.yahoo.com
  Description	None
  Trust Flow Score	83
  Citation Flow Score	57

• Data Source

  Data Source Name	Yahoo Finance News (#2)
  Data Source Type	news
  Data Source URL	https://finance.yahoo.com/
  Description	Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, press releases, financial reports, and original content. It also offers some online tools for personal finance management.
  Weight	10