WESTPORT, Conn., Feb. 29, 2016 /PRNewswire/ -- Compass Diversified Holdings (NYSE: CODI) ("CODI," "we," "our" or the "Company"), an owner of leading middle market businesses, announced today its consolidated operating results for the three and twelve months ended December 31, 2015.

Fourth Quarter 2015 Highlights

• Generated Cash Flow Available for Distribution and Reinvestment ("CAD" or "Cash Flow") of $16.1 million for the fourth quarter of 2015 and $82.4 million for the full year 2015;

• Reported net loss of $1.5 million for the fourth quarter of 2015 and net income of $165.8 million for the full year 2015;

• Paid a fourth quarter 2015 cash distribution of $0.36 per share in January 2016, bringing cumulative distributions paid to $13.1952 per share since CODI's IPO in May of 2006; and

• Completed the add-on acquisition of Hemp Oil Canada, Inc. ("HOCI") by the Company's subsidiary Fresh Hemp Foods Ltd. ("Manitoba Harvest").

"We generated solid operating results for the fourth quarter 2015 and achieved a 42% increase in Cash Flow for the full-year 2015," stated Alan Offenberg, CEO of Compass Diversified Holdings. "Our fourth quarter performance reflects the continued strength of our middle market niche industrial and branded consumer businesses, including robust cash flow contributions from Clean Earth, Sterno Products, Liberty Safe and Ergobaby."

Mr. Offenberg added, "Reinvesting in the growth of our subsidiaries remains a core part of our strategy and we are pleased to have completed an accretive add-on acquisition for our Manitoba Harvest subsidiary in the fourth quarter, which will further drive the Company's already strong growth trajectory. In addition, we completed an add-on acquisition at Sterno Products subsequent to year end. We also completed the sale of American Furniture, realizing approximately $23.5 million of proceeds from the sale. Going forward, our emphasis remains on identifying attractive platform and add-on acquisition opportunities in leading niche businesses, as we seek to further grow our cash flows and provide attractive cash distributions to our shareholders."

Operating Results CODI reported Cash Flow (see Note Regarding Use of Non-GAAP Financial Measures below) of $16.1 million for the quarter ended December 31, 2015, as compared to $17.5 million for the prior year's comparable quarter. CODI's weighted average number of shares outstanding for the quarters ended December 31, 2015 and December 31, 2014 were 54.3 million and 51.4 million, respectively.

Cash Flow for the fourth quarter of 2015 reflects year-over-year growth in the Company's Clean Earth, Liberty Safe, Ergobaby, Sterno Products and Arnold Magnetic businesses, partially offset by a decline at the Company's Tridien and Advanced Circuits businesses. Cash flow for the fourth quarter of 2015 included contributions from HOCI from the date of acquisition.

For the year ended December 31, 2015, CODI reported Cash Flow of $82.4 million, as compared to $58.0 million for the year ended December 31, 2014. CODI's weighted average number of shares outstanding for the twelve month period ended December 31, 2015 was approximately 54.3 million, as compared to approximately 49.1 million for the twelve month period ended December 31, 2014.

CODI's Cash Flow is calculated after taking into account all interest expense, cash taxes paid and maintenance capital expenditures, and includes the operating results of each of our businesses for the periods during which CODI owned them. However, Cash Flow excludes the gains from monetizing interests in CODI's subsidiaries, which have totaled approximately $480 million since going public in 2006.

Net loss for the quarter ended December 31, 2015 was $1.5 million, as compared to net income of $8.9 million for the quarter ended December 31, 2014. During the fourth quarter of 2015, CODI reduced the previously recorded gain on the sale of CamelBak by $1.3 million as a result of a working capital adjustment. In addition, during the fourth quarter of 2015, CODI's equity method investment in Fox Factory Holding Corp. ("FOX", Nasdaq: FOXF) decreased $5.0 million. During the fourth quarter of 2014, CODI's equity method investment in FOX increased $11.0 million.

For the year ended December 31, 2015, CODI reported net income of $165.8 million, primarily as a result of the gain on the sale of CamelBak. This compared to net income of $291.2 million for the year ended December 31, 2014, which included a one-time accounting gain of approximately $264.3 million as a result of the deconsolidation of FOX, and results from FOX until its deconsolidation in July 2014.

Liquidity and Capital Resources As of December 31, 2015, CODI had approximately $85.9 million in cash and cash equivalents, $320 million outstanding on its term loan facility and no outstanding borrowings under its revolving credit facility. The Company has no significant debt maturities until 2019 and had net borrowing availability of approximately $396 million at December 31, 2015 under its revolving credit facility. In addition, the Company's equity investment in its former subsidiary FOX is valued at $249.7 million at December 31, 2015.

Fourth Quarter 2015 Distribution On January 7, 2016, CODI's Board of Directors declared a fourth quarter distribution of $0.36 per share. The cash distribution was paid on January 28, 2016 to all holders of record as of January 21, 2016. Since its IPO in May of 2006, CODI has paid a cumulative distribution of $13.1952 per share.

Conference Call Management will host a conference call on Tuesday, March 1, 2016 at 9:00 a.m. ET to discuss the latest corporate developments and financial results. The dial-in number for callers in the U.S. is (855) 212-2368 and the dial-in number for international callers is (315) 625-6886. The access code for all callers is 47935087. A live webcast will also be available on the Company's website at www.compassdiversifiedholdings.com.

A replay of the call will be available through March 9, 2016. To access the replay, please dial (855) 859-2056 in the U.S. and (404) 537-3406 outside the U.S., and then enter the access code 47935087.

Note Regarding Use of Non-GAAP Financial Measures CAD, or Cash Flow, is a non-GAAP measure used by the Company to assess its performance, as well as its ability to sustain and increase quarterly distributions. A number of CODI's businesses have seasonal earnings patterns. Accordingly, the Company believes that the most appropriate measure of its performance is over a trailing or expected 12-month period. We have reconciled CAD, or Cash Flow, to Net Income and Cash Flow Provided by Operating Activities on the attached schedules. We consider Net Income and Cash Flow Provided by Operating Activities to be the most directly comparable GAAP financial measures to CAD, or Cash Flow.

About Compass Diversified Holdings CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.

CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long term cash flow generation and value. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and to make cash distributions to its shareholders.

Our eight majority-owned subsidiaries are engaged in the following lines of business:

• The manufacture of quick-turn, small-run and production rigid printed circuit boards (Advanced Circuits);

• The design and manufacture of medical therapeutic support surfaces and other wound treatment devices (Anodyne Medical Device, also doing business and known as Tridien Medical);

• The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies);

• Environmental services for a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings (Clean Earth);

• The design and marketing of wearable baby carriers, strollers and related products (Ergobaby);

• The design and manufacture of premium home and gun safes (Liberty Safe);

• The manufacture and marketing of branded, hemp-based food products (Manitoba Harvest); and

• The manufacture and marketing of portable food warming fuels and creative ambience solutions for the hospitality and consumer industries (Sterno Products).

In addition, we own approximately 41% of the common stock of Fox Factory Holding Corp. ("FOX", Nasdaq: FOXF), a former subsidiary business that completed its initial public offering in August 2013. FOX designs and manufactures high-performance suspension products primarily for mountain bikes, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles.

This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI. 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 materially 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 filed by CODI with the SEC for the year ended December 31, 2015 and other filings with the SEC. 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.

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SOURCE Compass Diversified Holdings