WESTPORT, Conn. - Compass Diversified Holdings (NYSE: NYSE:CODI), a company with a diverse portfolio of middle-market businesses and a market capitalization of $1.73 billion, announced a change in its board committee leadership today. According to InvestingPro data, the company has maintained dividend payments for 19 consecutive years, demonstrating strong commitment to shareholder returns. Director Gordon M. Burns has decided not to stand for re-election at the 2025 annual shareholders meeting due to other commitments.
Burns, who has been a member of the Compass Diversified board since May 2008, also resigned as the Chair of the Nominating & Corporate Governance Committee effective January 3, 2025. However, he will continue to serve on the board and remain a member of both the Nominating Committee and Compensation Committee until the next shareholders meeting.
CEO Elias Sabo acknowledged Burns' contributions, stating, "Over the past fifteen years, Gordon has made a meaningful contribution to our Board, particularly with respect to our capital raising and capital allocation efforts."
Nancy B. Mahon, who joined the board in May of 2023, has been appointed to succeed Burns as the Chair of the Nominating Committee. Mahon's background includes her current position as Chief Sustainability Officer at The Estée Lauder Companies, Inc. and her legal expertise as an attorney admitted to practice in state and federal jurisdictions.
Larry Enterline, Board Chair, commented on the board's evolution, noting, "Over the past two years, we have taken concrete steps to strengthen and diversify our Board as we prepare for the next phase of our development."
Compass Diversified Holdings, known for owning and managing a range of defensible businesses across various sectors, has been operating since its IPO in 2006. The company is recognized for its permanent capital base and long-term approach, aiming to generate strong returns through a culture of transparency, alignment, and accountability. With a healthy current ratio of 4.22 and revenue growth of 16.7% in the last twelve months, CODI maintains a strong financial position. InvestingPro analysis reveals several more key metrics and insights available to subscribers, including detailed Fair Value assessments and comprehensive financial health scores.
This announcement is based on a press release statement and includes forward-looking statements regarding the company's future performance. While analysts maintain a positive outlook with expectations of profitability this year, these statements are subject to uncertainties, and actual results could differ materially due to various factors, including economic changes, market conditions, and the impact of events such as the COVID-19 pandemic. For comprehensive analysis and detailed insights, investors can access CODI's full Pro Research Report, available exclusively on InvestingPro.
In other recent news, Compass Diversified reported a robust third quarter in 2024, with a significant 25% increase in adjusted EBITDA to $114 million and double-digit growth in combined revenue. The company also raised its full-year 2024 guidance and introduced the CODI Momentum Index, indicating a stable economic outlook. Compass Diversified's success is attributed to its focus on acquiring and managing innovative middle-market companies, with recent capital raises and a $100 million share repurchase program announced.
The company's consolidated net sales reached $582.6 million, up 11.8% year-over-year, and net income improved to $31.5 million from a net loss of $3.8 million in Q3 2023. However, the industrial segment revenue declined by 4%, mainly due to challenges at Altor Solutions. Despite this, the company's full-year adjusted EBITDA guidance increased to between $510 million and $525 million, driven by increased expectations in the branded consumer vertical.
These recent developments reflect Compass Diversified's strong performance and positive outlook for the future. The company's Investor and Analyst Day is scheduled for January 16, 2025, in New York City. The company's board is also evaluating potential locations for new Lugano stores, including international markets, with preliminary estimates of two new stores next year.
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