Compass Diversified (CODI), the parent of the 5.11, Boa and Primaloft brands in the active lifestyle space, and an owner of middle-market branded consumer and industrial businesses, has filed 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. was pervasive, complex and isolated to Lugano. Our restatement is an important step in putting this chapter behind us,” said Elias Sabo, CEO of Compass Diversified. “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.”
The CEO continued, “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 its 2025 first-, second- and third-quarter financial results on Form 10-Q, bringing the company back into compliance with the Securities and Exchange Commission’s annual and quarterly filing requirements.
Image courtesy Lugano/Compass Diversified
