Compass Diversified Declares Fourth Quarter 2024 Distributions on Common and Series A, B and C Preferred Shares

Core Points - Compass Diversified (CODI) announced a quarterly cash distribution of $0.25 per share on its common shares, payable on January 23, 2025, to holders of record as of January 16, 2025 [1] - The Board declared cash distributions for its preferred shares:$0.453125 per share for Series A, $0.4921875 per share for Series B, and$0.4921875 per share for Series C, all payable on January 30, 2025, to holders of record as of January 15, 2025 [2][3][4] Financial Overview - CODI's common and preferred cash distributions are expected to generally constitute "qualified dividends" for U.S. federal income tax purposes, contingent on being paid from "earnings and profits" [5] - The company does not expect all distributions in the 2024 taxable year to be qualified dividends, as earnings and profits are anticipated to be below cash distributions [6] - CODI anticipates that all distributions in 2025 may be treated as a return of capital, with final tax status to be reported in early 2026 [7] Company Background - Since its IPO in 2006, CODI has focused on owning and managing a diverse set of middle-market businesses across industrial, branded consumer, and healthcare sectors [8] - The company leverages its permanent capital base and long-term approach to maintain controlling ownership interests in its subsidiaries, enhancing cash flow generation and value creation [8]