The public holding company that acquired mountain bike suspension maker Fox Factory in January dramatically narrowed its losses in the fourth quarter and said it increased its cash flow available for distribution by nearly 81 percent.
Compass Diversified Holdings and Compass Group Diversified Holdings LLC lost $3.4 million in the quarter ended Dec. 31, down from $21.6 million in the same quarter a year earlier. Sales rose nearly 68% to $288.1 million. Operating income reached $15.7 million, or 5.5% of net sales, compared to a loss of $8.6 million in the comparable quarter a year ago. The company said selling, general and administrative expenses shot up 125 percent to $39.4 million.
The company said cash flow available for distribution (“CAD”) reached $17.7 million, compared to $9.8 million in the prior year quarter. For the year ended Dec. 31, 2007, CAD was $46.3 million, compared to $23.7 million in 2006.
Since its initial public offering on May 16, 2006, through Dec. 31, CODI reported CAD of $70.0 million and a coverage ratio of approximately 1.4x on all distributions paid through Jan. 30, 2008.
The 2007 results reflect the full year operating results of Advanced Circuits, Anodyne Medical Device, CBS Personnel Holdings and Silvue Technologies Group. The figure also includes cash flows of American Furniture Manufacturing, Inc. which was acquired Aug. 31, 2007, as well as the cash flows of Halo Branded Solutions, Inc. and Aeroglide Corporation from the date of their respective acquisitions on Feb. 28, 2007.
CAD for 2007 does not include any operating results from Fox Factory, Inc., which was acquired by CODI on January 4, 2008.
CODI was formed to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies which have historically been owned by private equity firms, wealthy individuals or families.
