HALO/Lee Wayne Parent Company Reports Earnings
Compass Diversified Holdings, Westport, Conn., an owner of leading middle market businesses including HALO/Lee Wayne, Sterling, Ill., announced its consolidated operating results for the three and 12 months ended December 31, 2009.
Fourth Quarter and Full Year 2009 Highlights
- Generated cash flow available for distribution and reinvestment ("CAD" or "cash flow") of $17.9 million for the fourth quarter of 2009 and $37.0 million for the full year 2009;
- Reported a net loss of $0.1 million for the fourth quarter of 2009 and a net loss of $39.6 million for the full year 2009, which includes a $24.6 million negative impact from one-time noncash items
- Paid a fourth quarter 2009 cash distribution of $0.34 per share, bringing cumulative distributions paid to $4.64 per share since CODI's IPO in May of 2006
CODI reported cash flow (see note regarding use of non-GAAP Financial Measures below) of $17.9 million for the quarter ended December 31, 2009, as compared to $11.2 million for the prior year period. CODI's cash flow for the year ended December 31, 2009 was $37.0 million as compared to $50.6 million for the prior year period. CODI's weighted average number of shares outstanding for the quarter and twelve months ended December 31, 2009 was approximately 36.6 million and 34.4 million, respectively.
The approximate 60 percent improvement in cash flow for the fourth quarter of 2009 compared to the year-earlier period was due to strengthening revenue trends at a number of CODI's subsidiaries, as well as a variety of cost containment measures across its businesses. CODI's cash flow decline for the year ended December 31, 2009 compared to the prior year was largely attributable to the negative impact of the economy, particularly on the Company's Staffmark subsidiary.
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 subsidiary for the periods during which CODI owned them. However, cash flow excludes the gains from sales of businesses, which have totaled over $109 million since 2007.