Compass Diversified Holdings (NYSE:CODI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:00 pm ET


Compass Diversified Holdings (NYSE:CODI) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Compass Diversified Holdings Fourth Quarter and Full-Year 2019 Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Matt Berkowitz of the IGB Group for introductions and the reading of the safe harbor statement. Sir, please go ahead.

Matt Berkowitz

Thank you, and welcome to Compass Diversified Holdings fourth quarter and full-year 2019 conference call. Representing the company today are Elias Sabo, CODI's CEO; Ryan Faulkingham, CODI's CFO; and Pat Maciariello, COO of Compass Group management.

Before we begin, I would like to point out that the Q4 and full-year 2019 press release, including the financial tables and non-GAAP financial measure reconciliations are available at the Investor Relations section on the company's website at

The company also filed its Form 10-K with the SEC today after the market closed, which includes reconciliations of non-GAAP financial measures discussed on this call. Please note that references to EBITDA in the following discussions refer to adjusted EBITDA, as reconciled to net income in the company's financial filings. The company does not provide a reconciliation of its payout ratio, which is the ratio of its distribution to its estimated cash flow available for distribution and reinvestment. This is because certain significant information is not available without unreasonable efforts, including, but not limited to, the company's future earnings, current taxes, capital expenditures and the distribution to be paid as approved quarterly by the company's Board of Directors. Throughout this call, we will refer to Compass Diversified Holdings as CODI or the Company. Now allow me to read the following safe harbor statement.

During this conference call, we may make certain forward-looking statements, including statements with regard to the future performance of CODI and its subsidiaries, words such as believes, 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 on a material basis 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 as filed with the Securities and Exchange Commission for the year ended December 31, 2019, as well as in other SEC filings.

In particular, the domestic and global economic environment has a significant impact on our subsidiary companies. 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. Throughout this presentation, references to revenue and EBITDA for Velocity including Ravin, Foam Fabricators and Sterno, including Rimports, are pro forma as if these businesses were acquired on January 1, 2018.

Please note that in 2018, CODI acquired Foam Fabricators on February 15, Rimports on February 26 and Ravin on September 4, and their pre-acquisition results described herein are not intended to be indicative of their respective results in the future under our ownership and management