|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
|
|
001-34927
|
|
57-6218917
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
|
|
Delaware
|
|
001-34926
|
|
20-3812051
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of Each Class
|
|
Trading Symbol(s)
|
|
Name of Each Exchange on Which Registered
|
Shares representing beneficial interests in Compass Diversified Holdings
|
|
CODI
|
|
New York Stock Exchange
|
Series A Preferred Shares representing Series A Trust Preferred Interest in Compass Diversified Holdings
|
|
CODI PR A
|
|
New York Stock Exchange
|
Series B Preferred Shares representing Series B Trust Preferred Interest in Compass Diversified Holdings
|
|
CODI PR B
|
|
New York Stock Exchange
|
|
|
|
|
Emerging growth company
|
o
|
Date: July 1, 2019
|
COMPASS DIVERSIFIED HOLDINGS
|
||
|
|
|
|
|
By:
|
|
/s/ Ryan J. Faulkingham
|
|
|
|
|
|
|
|
Ryan J. Faulkingham
|
|
|
|
Regular Trustee
|
Date: July 1, 2019
|
COMPASS GROUP DIVERSIFIED HOLDINGS LLC
|
||
|
|
|
|
|
By:
|
|
/s/ Ryan J. Faulkingham
|
|
|
|
|
|
|
|
Ryan J. Faulkingham
|
|
|
|
Chief Financial Officer
|
Compass Diversified Holdings
Ryan J. Faulkingham
Chief Financial Officer
203.221.1703
ryan@compassequity.com
|
Investor Relations and Media Contact:
The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com
|
•
|
The design and marketing of purpose-built tactical 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 manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (
Arnold Magnetic Technologies
);
|
•
|
The design and marketing of wearable baby carriers, strollers and related products (
Ergobaby
);
|
•
|
The design and manufacture of custom molded protective foam solutions and OE components (
Foam Fabricators
);
|
•
|
The design and manufacture of premium home and gun safes (
Liberty Safe
);
|
•
|
The manufacture and marketing of portable food warming fuels for the hospitality and consumer markets, flameless candles and house and garden lighting for the home decor market, and wickless candle products used for home decor and fragrance systems (
The Sterno Group
); and
|
•
|
The design, manufacture and marketing of airguns, archery products, optics and related accessories (
Velocity Outdoor
).
|
|
■
|
|
The non-recurring gain on the Clean Earth Disposition. The gain will be included in the Company’s results for the three and six month periods ended June 30, 2019, and,
|
|
■
|
|
Certain non-recurring transaction costs on closing of the sale estimated to be approximately $10.7 million.
|
|
|
|
|
Clean Earth Disposition
|
|
|
||||||||||
(in thousands)
|
|
Compass Diversified Holdings as Reported
|
|
Less: Clean Earth as Reported
|
|
Clean Earth Pro Forma Adjustments
|
|
Pro Forma Consolidated Compass Diversified Holdings
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
39,837
|
|
|
$
|
(462
|
)
|
|
$
|
458,739
|
|
(1a)
|
$
|
498,114
|
|
Accounts receivable, net
|
|
263,494
|
|
|
(58,025
|
)
|
|
—
|
|
|
205,469
|
|
||||
Inventories
|
|
313,910
|
|
|
—
|
|
|
—
|
|
|
313,910
|
|
||||
Prepaid expenses and other current assets
|
|
87,964
|
|
|
(7,765
|
)
|
|
—
|
|
|
80,199
|
|
||||
Total current assets
|
|
705,205
|
|
|
(66,252
|
)
|
|
458,739
|
|
|
1,097,692
|
|
||||
Property, plant and equipment, net
|
|
203,549
|
|
|
(61,420
|
)
|
|
—
|
|
|
142,129
|
|
||||
Operating lease right-of-use assets
|
|
103,442
|
|
|
(17,037
|
)
|
|
—
|
|
|
86,405
|
|
||||
Goodwill
|
|
611,883
|
|
|
(140,483
|
)
|
|
—
|
|
|
471,400
|
|
||||
Intangible assets, net
|
|
733,347
|
|
|
(131,342
|
)
|
|
—
|
|
|
602,005
|
|
||||
Other non-current assets
|
|
12,200
|
|
|
(3,903
|
)
|
|
—
|
|
|
8,297
|
|
||||
Total assets
|
|
$
|
2,369,626
|
|
|
$
|
(420,437
|
)
|
|
$
|
458,739
|
|
|
$
|
2,407,928
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
|
$
|
91,341
|
|
|
$
|
(20,846
|
)
|
|
$
|
—
|
|
|
$
|
70,495
|
|
Accrued expenses
|
|
115,824
|
|
|
(11,809
|
)
|
|
—
|
|
|
104,015
|
|
||||
Due to related party
|
|
10,609
|
|
|
—
|
|
|
—
|
|
|
10,609
|
|
||||
Current portion, long-term debt
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
||||
Current portion, operating lease liabilities
|
|
19,574
|
|
|
(3,165
|
)
|
|
—
|
|
|
16,409
|
|
||||
Other current liabilities
|
|
7,764
|
|
|
(384
|
)
|
|
—
|
|
|
7,380
|
|
||||
Total current liabilities
|
|
250,112
|
|
|
(36,204
|
)
|
|
—
|
|
|
213,908
|
|
||||
Deferred income taxes
|
|
61,023
|
|
|
(28,704
|
)
|
|
—
|
|
|
32,319
|
|
||||
Long-term debt
|
|
955,395
|
|
|
—
|
|
|
(85,000
|
)
|
(1b)
|
870,395
|
|
||||
Operating lease liabilities
|
|
90,701
|
|
|
(14,065
|
)
|
|
—
|
|
|
76,636
|
|
||||
Other non-current liabilities
|
|
11,614
|
|
|
(4,607
|
)
|
|
—
|
|
|
7,007
|
|
||||
Total liabilities
|
|
1,368,845
|
|
|
(83,580
|
)
|
|
(85,000
|
)
|
|
1,200,265
|
|
||||
Stockholders’ equity
|
|
|
|
|
|
|
|
—
|
|
|||||||
Stockholders’ equity
|
|
948,594
|
|
|
—
|
|
|
216,090
|
|
(1c)
|
1,164,684
|
|
||||
Noncontrolling interest
|
|
52,187
|
|
|
(9,208
|
)
|
|
|
|
42,979
|
|
|||||
Total stockholders’ equity
|
|
1,000,781
|
|
|
(9,208
|
)
|
|
216,090
|
|
|
1,207,663
|
|
||||
Total liabilities and stockholders’ equity
|
|
$
|
2,369,626
|
|
|
$
|
(92,788
|
)
|
|
$
|
131,090
|
|
|
$
|
2,407,928
|
|
|
|
|
|
Clean Earth Disposition
|
|
|
||||||||||
(in thousands, except per share data)
|
|
Compass Diversified Holdings as Reported
|
|
Less: Clean Earth as Reported
|
|
Clean Earth Pro Forma Adjustments
|
|
Pro Forma Consolidated Compass Diversified Holdings
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
402,489
|
|
|
$
|
63,632
|
|
|
$
|
—
|
|
|
$
|
338,857
|
|
Cost of sales
|
|
266,300
|
|
|
46,998
|
|
|
—
|
|
|
219,302
|
|
||||
Gross profit
|
|
136,189
|
|
|
16,634
|
|
|
—
|
|
|
119,555
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expense
|
|
93,199
|
|
|
11,436
|
|
|
—
|
|
|
81,763
|
|
||||
Management fees
|
|
11,082
|
|
|
—
|
|
|
307
|
|
(1d)
|
11,389
|
|
||||
Amortization expense
|
|
17,040
|
|
|
3,450
|
|
|
—
|
|
|
13,590
|
|
||||
Operating income
|
|
14,868
|
|
|
1,748
|
|
|
(307
|
)
|
|
12,813
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
(18,582
|
)
|
|
(129
|
)
|
|
978
|
|
(1e)
|
(17,475
|
)
|
||||
Amortization of debt issuance costs
|
|
(927
|
)
|
|
—
|
|
|
—
|
|
|
(927
|
)
|
||||
Loss on sale of securities
|
|
(5,300
|
)
|
|
—
|
|
|
—
|
|
|
(5,300
|
)
|
||||
Other expense, net
|
|
(571
|
)
|
|
—
|
|
|
—
|
|
|
(571
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
|
(10,512
|
)
|
|
1,619
|
|
|
671
|
|
|
(11,460
|
)
|
||||
Provision for income taxes
|
|
403
|
|
|
(1,022
|
)
|
|
—
|
|
|
1,425
|
|
||||
Income (loss) from continuing operations
|
|
(10,915
|
)
|
|
2,641
|
|
|
671
|
|
|
(12,885
|
)
|
||||
Loss from discontinued operations, net of income tax
|
|
(586
|
)
|
|
—
|
|
|
—
|
|
|
(586
|
)
|
||||
Gain on sale of discontinued operations
|
|
121,659
|
|
|
—
|
|
|
—
|
|
|
121,659
|
|
||||
Net income
|
|
110,158
|
|
|
2,641
|
|
|
671
|
|
|
108,188
|
|
||||
Less: Net income from continuing operations attributable to noncontrolling interest
|
|
1,300
|
|
|
(68
|
)
|
|
—
|
|
|
1,368
|
|
||||
Less: Net loss from discontinued operations attributable to noncontrolling interest
|
|
(450
|
)
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
||||
Net income attributable to Holdings
|
|
$
|
109,308
|
|
|
$
|
2,709
|
|
|
$
|
671
|
|
|
$
|
107,270
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - Basic and Fully Diluted
|
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations attributable to Holdings
|
|
$
|
(12,215
|
)
|
|
|
|
|
|
$
|
(14,253
|
)
|
||||
Less: Distributions paid - Preferred Shares
|
|
3,781
|
|
|
|
|
|
|
3,781
|
|
||||||
Less: Accrued Distributions - Preferred Shares
|
|
1,334
|
|
|
|
|
|
|
1,334
|
|
||||||
Less: Effect of contribution based profit - Holding Event
|
|
981
|
|
|
|
|
—
|
|
(1f)
|
981
|
|
|||||
Net loss from continuing operations attributable to common shares of Holdings
|
|
$
|
(18,311
|
)
|
|
|
|
|
|
$
|
(20,349
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted average shares outstanding
|
|
59,900
|
|
|
|
|
|
|
59,900
|
|
||||||
Basic and fully diluted loss per share attributable to Holdings - continuing operations
|
|
$
|
(0.31
|
)
|
|
|
|
|
|
$
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
Clean Earth Disposition
|
|
|
||||||||||||||
(in thousands, except per share data)
|
|
Compass Diversified Holdings as Reported
|
|
Less: Manitoba Harvest as Reported
|
|
Compass Diversified Holdings as Adjusted
|
|
Less: Clean Earth as Reported
|
|
Clean Earth Pro Forma Adjustments
|
|
Pro Forma Consolidated Compass Diversified Holdings
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
1,691,673
|
|
|
$
|
(67,437
|
)
|
|
$
|
1,624,236
|
|
|
$
|
(266,916
|
)
|
|
$
|
—
|
|
|
$
|
1,357,320
|
|
Cost of sales
|
|
1,117,485
|
|
|
(38,560
|
)
|
|
1,078,925
|
|
|
(191,446
|
)
|
|
—
|
|
|
887,479
|
|
||||||
Gross profit
|
|
574,188
|
|
|
(28,877
|
)
|
|
545,311
|
|
|
(75,470
|
)
|
|
—
|
|
|
469,841
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative expense
|
|
392,500
|
|
|
(25,741
|
)
|
|
366,759
|
|
|
(46,677
|
)
|
|
—
|
|
|
320,082
|
|
||||||
Management fees
|
|
44,294
|
|
|
(350
|
)
|
|
43,944
|
|
|
—
|
|
|
(1,412
|
)
|
(1d)
|
42,532
|
|
||||||
Amortization expense
|
|
68,076
|
|
|
(4,540
|
)
|
|
63,536
|
|
|
(13,850
|
)
|
|
—
|
|
|
49,686
|
|
||||||
Operating income
|
|
69,318
|
|
|
1,754
|
|
|
71,072
|
|
|
(14,943
|
)
|
|
1,412
|
|
|
57,541
|
|
||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
|
(55,577
|
)
|
|
13
|
|
|
(55,564
|
)
|
|
319
|
|
|
2,835
|
|
(1e)
|
(52,410
|
)
|
||||||
Amortization of debt issuance costs
|
|
(3,905
|
)
|
|
—
|
|
|
(3,905
|
)
|
|
—
|
|
|
—
|
|
|
(3,905
|
)
|
||||||
Other income (expense), net
|
|
(6,336
|
)
|
|
16
|
|
|
(6,320
|
)
|
|
430
|
|
|
—
|
|
|
(5,890
|
)
|
||||||
Income (loss) from continuing operations before income taxes
|
|
3,500
|
|
|
1,783
|
|
|
5,283
|
|
|
(14,194
|
)
|
|
4,247
|
|
|
(4,664
|
)
|
||||||
Provision for income taxes
|
|
6,548
|
|
|
1,460
|
|
|
8,008
|
|
|
2,458
|
|
|
—
|
|
|
10,466
|
|
||||||
Income (loss) from continuing operations
|
|
(3,048
|
)
|
|
323
|
|
|
(2,725
|
)
|
|
(16,652
|
)
|
|
4,247
|
|
|
(15,130
|
)
|
||||||
Gain on sale of discontinued operations, net of income tax
|
|
1,258
|
|
|
—
|
|
|
1,258
|
|
|
|
|
—
|
|
|
1,258
|
|
|||||||
Net income (loss)
|
|
(1,790
|
)
|
|
$
|
323
|
|
|
$
|
(1,467
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
4,247
|
|
|
$
|
(13,872
|
)
|
|
Less: Income from continuing operations attributable to noncontrolling interest
|
|
3,912
|
|
|
$
|
1,283
|
|
|
$
|
5,195
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
5,217
|
|
|
Net income (loss) attributable to Holdings
|
|
$
|
(5,702
|
)
|
|
$
|
(960
|
)
|
|
$
|
(6,662
|
)
|
|
$
|
(16,674
|
)
|
|
$
|
4,247
|
|
|
$
|
(19,089
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share - Basic and Fully Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss from continuing operations attributable to Holdings
|
|
$
|
(6,960
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(20,347
|
)
|
||||||||
Less: Distributions paid - Preferred Shares
|
|
12,179
|
|
|
|
|
|
|
|
|
|
|
12,179
|
|
||||||||||
Less: Accrued Distributions - Preferred Shares
|
|
1,334
|
|
|
|
|
|
|
|
|
|
|
1,334
|
|
||||||||||
Less: Effect of contribution based profit - Holding Event
|
|
5,893
|
|
|
|
|
|
|
|
|
—
|
|
(1f)
|
5,893
|
|
|||||||||
Net loss from continuing operations attributable to common shares of Holdings
|
|
$
|
(26,366
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(39,753
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic and diluted weighted average shares outstanding
|
|
59,900
|
|
|
|
|
|
|
|
|
|
|
59,900
|
|
||||||||||
Basic and fully diluted loss per share attributable to Holdings - continuing operations
|
|
$
|
(0.44
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(0.66
|
)
|
|
|
|
|
|
|
|
|
Clean Earth Disposition
|
|
|
||||||||||||||
(in thousands, except per share data)
|
|
Compass Diversified Holdings as Reported
|
|
Less: Manitoba Harvest
|
|
Compass Diversified Holdings as Adjusted
|
|
Less: Clean Earth as Reported
|
|
Clean Earth Pro Forma Adjustments
|
|
Pro Forma Consolidated Compass Diversified Holdings
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
1,269,729
|
|
|
$
|
(55,699
|
)
|
|
$
|
1,214,030
|
|
|
$
|
(211,247
|
)
|
|
$
|
—
|
|
|
$
|
1,002,783
|
|
Cost of sales
|
|
822,020
|
|
|
(30,598
|
)
|
|
791,422
|
|
|
(150,028
|
)
|
|
—
|
|
|
641,394
|
|
||||||
Gross profit
|
|
447,709
|
|
|
(25,101
|
)
|
|
422,608
|
|
|
(61,219
|
)
|
|
—
|
|
|
361,389
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative expense
|
|
318,484
|
|
|
(21,092
|
)
|
|
297,392
|
|
|
(35,875
|
)
|
|
—
|
|
|
261,517
|
|
||||||
Management fees
|
|
32,693
|
|
|
(350
|
)
|
|
32,343
|
|
|
—
|
|
|
3,388
|
|
(1d)
|
35,731
|
|
||||||
Amortization expense
|
|
52,003
|
|
|
(4,530
|
)
|
|
47,473
|
|
|
(12,807
|
)
|
|
—
|
|
|
34,666
|
|
||||||
Impairment expense
|
|
17,325
|
|
|
(8,461
|
)
|
|
8,864
|
|
|
—
|
|
|
—
|
|
|
8,864
|
|
||||||
Operating income
|
|
27,204
|
|
|
9,332
|
|
|
36,536
|
|
|
(12,537
|
)
|
|
(3,388
|
)
|
|
20,611
|
|
||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
|
(27,623
|
)
|
|
41
|
|
|
(27,582
|
)
|
|
327
|
|
|
(48
|
)
|
(1e)
|
(27,303
|
)
|
||||||
Amortization of debt issuance costs
|
|
(4,002
|
)
|
|
—
|
|
|
(4,002
|
)
|
|
|
|
—
|
|
|
(4,002
|
)
|
|||||||
Loss on sale of investment
|
|
(5,620
|
)
|
|
—
|
|
|
(5,620
|
)
|
|
—
|
|
|
—
|
|
|
(5,620
|
)
|
||||||
Other income, net
|
|
2,634
|
|
|
191
|
|
|
2,825
|
|
|
(80
|
)
|
|
—
|
|
|
2,745
|
|
||||||
Income (loss) from continuing operations before income taxes
|
|
(7,407
|
)
|
|
9,564
|
|
|
2,157
|
|
|
(12,290
|
)
|
|
(3,436
|
)
|
|
(13,569
|
)
|
||||||
Provision for income taxes
|
|
(40,679
|
)
|
|
1,469
|
|
|
(39,210
|
)
|
|
15,469
|
|
|
—
|
|
|
(23,741
|
)
|
||||||
Income (loss) from continuing operations
|
|
33,272
|
|
|
8,095
|
|
|
41,367
|
|
|
(27,759
|
)
|
|
(3,436
|
)
|
|
10,172
|
|
||||||
Gain on sale of discontinued operations, net of income tax
|
|
340
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
—
|
|
|
340
|
|
||||||
Net income (loss)
|
|
33,612
|
|
|
8,095
|
|
|
41,707
|
|
|
(27,759
|
)
|
|
(3,436
|
)
|
|
10,512
|
|
||||||
Less: Income from continuing operations attributable to noncontrolling interest
|
|
5,621
|
|
|
2,959
|
|
|
8,580
|
|
|
(335
|
)
|
|
—
|
|
|
8,245
|
|
||||||
Net income (loss) attributable to Holdings
|
|
$
|
27,991
|
|
|
$
|
5,136
|
|
|
$
|
33,127
|
|
|
$
|
(27,424
|
)
|
|
$
|
(3,436
|
)
|
|
$
|
2,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share - Basic and Fully Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss from continuing operations attributable to Holdings
|
|
$
|
27,651
|
|
|
|
|
|
|
|
|
|
|
$
|
1,927
|
|
||||||||
Less: Distributions paid - Allocation Interests
|
|
39,188
|
|
|
|
|
|
|
|
|
|
|
39,188
|
|
||||||||||
Less: Distributions paid - Preferred Shares
|
|
2,457
|
|
|
|
|
|
|
|
|
|
|
2,457
|
|
||||||||||
Less: Effect of contribution based profit - Holding Event
|
|
12,726
|
|
|
|
|
|
|
|
|
(2,654
|
)
|
(1f)
|
10,072
|
|
|||||||||
Net loss from continuing operations attributable to common shares of Holdings
|
|
$
|
(26,720
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(49,790
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic and diluted weighted average shares outstanding
|
|
59,900
|
|
|
|
|
|
|
|
|
|
|
59,900
|
|
||||||||||
Basic and fully diluted loss per share attributable to Holdings - continuing operations
|
|
$
|
(0.45
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(0.83
|
)
|
|
|
|
|
|
|
|
|
Clean Earth Disposition
|
|
|
||||||||||||||
(in thousands, except per share data)
|
|
Compass Diversified Holdings as Reported
|
|
Less: Manitoba Harvest
|
|
Compass Diversified Holdings as Adjusted
|
|
Less: Clean Earth as Reported
|
|
Clean Earth Pro Forma Adjustments
|
|
Pro Forma Consolidated Compass Diversified Holdings
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
978,309
|
|
|
$
|
(59,323
|
)
|
|
$
|
918,986
|
|
|
$
|
(188,997
|
)
|
|
$
|
—
|
|
|
$
|
729,989
|
|
Cost of sales
|
|
651,739
|
|
|
(32,818
|
)
|
|
618,921
|
|
|
(134,667
|
)
|
|
—
|
|
|
484,254
|
|
||||||
Gross profit
|
|
326,570
|
|
|
(26,505
|
)
|
|
300,065
|
|
|
(54,330
|
)
|
|
—
|
|
|
245,735
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Selling, general and administrative expense
|
|
217,830
|
|
|
(21,329
|
)
|
|
196,501
|
|
|
(30,018
|
)
|
|
—
|
|
|
166,483
|
|
||||||
Management fees
|
|
29,406
|
|
|
(347
|
)
|
|
29,059
|
|
|
—
|
|
|
4,681
|
|
(1d)
|
33,740
|
|
||||||
Amortization expense
|
|
35,069
|
|
|
(4,508
|
)
|
|
30,561
|
|
|
(12,578
|
)
|
|
—
|
|
|
17,983
|
|
||||||
Impairment expense/ loss on disposal of assets
|
|
25,204
|
|
|
—
|
|
|
25,204
|
|
|
(3,305
|
)
|
|
—
|
|
|
21,899
|
|
||||||
Operating income
|
|
19,061
|
|
|
(321
|
)
|
|
18,740
|
|
|
(8,429
|
)
|
|
(4,681
|
)
|
|
5,630
|
|
||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, net
|
|
(24,651
|
)
|
|
10
|
|
|
(24,641
|
)
|
|
461
|
|
|
72
|
|
(1e)
|
(24,108
|
)
|
||||||
Amortization of debt issuance costs
|
|
(2,763
|
)
|
|
—
|
|
|
(2,763
|
)
|
|
—
|
|
|
—
|
|
|
(2,763
|
)
|
||||||
Gain on investment
|
|
74,490
|
|
|
—
|
|
|
74,490
|
|
|
—
|
|
|
|
|
74,490
|
|
|||||||
Other income, net
|
|
(2,919
|
)
|
|
2,804
|
|
|
(115
|
)
|
|
488
|
|
|
—
|
|
|
373
|
|
||||||
Income (loss) from continuing operations before income taxes
|
|
63,218
|
|
|
2,493
|
|
|
65,711
|
|
|
(7,480
|
)
|
|
(4,609
|
)
|
|
53,622
|
|
||||||
Provision for income taxes
|
|
9,469
|
|
|
1,682
|
|
|
11,151
|
|
|
2,782
|
|
|
—
|
|
|
13,933
|
|
||||||
Income (loss) from continuing operations
|
|
53,749
|
|
|
811
|
|
|
54,560
|
|
|
(10,262
|
)
|
|
(4,609
|
)
|
|
39,689
|
|
||||||
Income from discontinued operations, net of income tax
|
|
473
|
|
|
—
|
|
|
473
|
|
|
—
|
|
|
|
|
473
|
|
|||||||
Gain on sale of discontinued operations, net of income tax
|
|
2,308
|
|
|
—
|
|
|
2,308
|
|
|
—
|
|
|
—
|
|
|
2,308
|
|
||||||
Net income (loss)
|
|
$
|
56,530
|
|
|
$
|
811
|
|
|
$
|
57,341
|
|
|
$
|
(10,262
|
)
|
|
$
|
(4,609
|
)
|
|
$
|
42,470
|
|
Less: Income from continuing operations attributable to noncontrolling interest
|
|
1,961
|
|
|
1,165
|
|
|
3,126
|
|
|
79
|
|
|
—
|
|
|
3,205
|
|
||||||
Less: Loss from discontinued operations attributable to noncontrolling interest
|
|
(116
|
)
|
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
—
|
|
|
(116
|
)
|
||||||
Net loss attributable to Holdings
|
|
$
|
54,685
|
|
|
$
|
(354
|
)
|
|
$
|
54,331
|
|
|
$
|
(10,341
|
)
|
|
$
|
(4,609
|
)
|
|
$
|
39,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share - Basic and Fully Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations attributable to Holdings
|
|
$
|
51,788
|
|
|
|
|
|
|
|
|
|
|
$
|
36,559
|
|
||||||||
Less: Distributions paid - Allocation Interests
|
|
23,779
|
|
|
|
|
|
|
|
|
|
|
23,779
|
|
||||||||||
Less: Effect of contribution based profit - Holding Event
|
|
2,862
|
|
|
|
|
|
|
|
|
—
|
|
(1f)
|
2,862
|
|
|||||||||
Net loss from continuing operations attributable to common shares of Holdings
|
|
$
|
25,147
|
|
|
|
|
|
|
|
|
|
|
$
|
9,918
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic and diluted weighted average shares outstanding
|
|
54,591
|
|
|
|
|
|
|
|
|
|
|
54,591
|
|
||||||||||
Basic and fully diluted loss per share attributable to Holdings - continuing operations
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
$
|
0.18
|
|
|
Three months ended
|
|
Years ended
|
||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Effect of contribution based profit - Clean Earth Holding Event
|
—
|
|
|
—
|
|
|
2,654
|
|
|
—
|
|