NYSE$CODI

Compass Diversified · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Achieved solid operating results and generated strong cash flow, exceeding expectations.

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.

Headline financials

Total Revenue

$333M

Previous: $402M-17.2%
EPS (adj)

-$0.26

Previous: -$0.09-188.9%
Adjusted EBITDA

$46M

Previous: $48.5M-5.2%
Capital Expenditures

-$6.6M

Previous: -$7.53M+12.3%
Free Cash Flow

-$2.94M

Previous: $102M-102.9%
Net Income

$3.67M

Previous: $109M-96.6%
Operating Income

$13.6M

Previous: $14.9M-8.8%
Gross Profit

$119M

Previous: $136M-12.3%
Cash & Equivalents

$291M

Previous: $39.8M+630.5%
Total Assets

$2.05B

Previous: $2.37B-13.7%

Revenue & EPS history

Compass Diversified · Revenue · Quarterly

$333M

Q1 2020-17.2%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • COVID-19 will have a negative impact on its results of operations
  • COVID-19 will have a negative impact on its financial condition
  • COVID-19 will have a negative impact on its 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.
  • CODI’s subsidiaries experienced reductions in customer demand in several end-markets in the first quarter of 2020 and the Company believes this will continue in the near-term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.7%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+0.5%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+8.8%

Q4 2024

Best reaction

-12.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+4.9%-8.6%
Q4 2025-10.4%-15.1%-20.1%
Q3 2025-0.4%-2.8%+18.6%
Q1 2025-3.6%-0.4%+12.3%
Q4 2024+8.8%+0.9%-6.5%
Q3 2024+4.1%+0.9%+13.7%
Q2 2024-9.9%-15.1%-7.1%
Q1 2024-2.9%+0.5%+3.6%
Q4 2023+1.4%+2.2%+6.1%
Q3 2023+8.6%+7.9%+19.8%
Q2 2023-0.1%-1.2%-5.9%
Q1 2023+2.9%+3.3%+11.7%
Q4 2022-5.2%-7.9%-12.4%
Q3 2022-8.1%-9.3%-9.8%
Q2 2022+0.9%-2.6%-15.4%
Q1 2022+8.4%-0.9%+8.8%
Q4 2021+2.6%-1.1%+3.1%
Q3 2021+1.6%+1.1%+2.6%
Q2 2021+0.0%+1.0%+18.8%
Q1 2021+0.9%+3.6%+2.9%
Q4 2020+4.0%-0.8%+2.4%
Q3 2020+0.2%-0.3%+11.0%
Q2 2020-0.9%+1.4%+8.3%
Q1 2020-12.7%-20.5%-18.4%
Q4 2019-6.1%-5.0%-30.7%
Q3 2019+2.0%+10.0%+17.0%
Q2 2019-4.3%-8.0%-6.3%
Q1 2019-0.7%+3.0%-6.0%
Q4 2018-1.2%+0.9%-1.5%
Q3 2018-5.6%-3.6%-3.7%
Q2 2018+1.1%+1.1%+2.3%
Q1 2018-0.6%+1.9%+7.4%
Q4 2017+0.3%+0.0%-0.6%
Q3 2017-0.9%-2.1%-0.9%
Q2 2017+0.9%+0.9%-1.7%
Q1 2017-1.5%-2.7%-3.0%
Q4 2016-2.7%-2.7%-0.3%
Q3 2016-3.5%-3.0%+2.7%
Q2 2016+4.0%+3.1%+3.4%
Q1 2016-1.1%
Q4 2015+1.6%
Q3 2015+0.0%
Q2 2015+0.5%
Q1 2015-1.7%
Q4 2014+1.3%
Q3 2014-0.8%
Q2 2014-1.1%
Q1 2014-5.1%
Q4 2013-2.5%
Q3 2013-1.3%
Q2 2013+0.7%
Q1 2013+3.2%
Q4 2012+0.3%
Q3 2012-3.7%
Q2 2012+1.1%
Q1 2012-5.1%
Q4 2011+2.1%
Q3 2011-4.2%
Q2 2011-9.8%
Q1 2011+5.1%
Q4 2010-1.2%
Q3 2010-3.4%
Q2 2010-0.1%
Q1 2010+6.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro