Compass Diversified Announces Second Quarter 2024 Distributions for Series A, B and C Common Stock and Preferred Stock

July 2, 2024

WESTPORT, Conn., July 2, 2024 (GLOBE NEWSWIRE) — Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market companies, today announced that its board of directors (the “Board”) has declared a quarterly cash distribution of $0.25 per share on the Company’s common stock (the “Common Stock”). The distribution for the three months ended June 30, 2024 will be paid on July 25, 2024 to all holders of Common Stock as of July 18, 2024.

The Board of Directors has also declared a quarterly cash distribution of $0.453125 per share on the Company’s 7.250% Series A Preferred Stock (the “Series A Preferred Stock”). The distribution on the Series A Preferred Stock will cover the period from April 30, 2024, inclusive, to July 30, 2024, excluding the period. The distribution for such period will be paid on July 30, 2024 to all holders of record of Series A Preferred Stock as of July 15, 2024.

The Board of Directors has also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series B Preferred Stock (the “Series B Preferred Stock”). The distribution on the Series B Preferred Stock will cover the period from April 30, 2024, inclusive, to July 30, 2024, excluding the period. The distribution for such period will be paid on July 30, 2024 to all holders of record of Series B Preferred Stock as of July 15, 2024.

The Board of Directors has also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series C Preferred Stock (the “Series C Preferred Stock”). The distribution on the Series C Preferred Stock will cover the period from April 30, 2024, inclusive, to July 30, 2024, excluding the period. The distribution for such period will be paid on July 30, 2024 to all holders of record of Series C Preferred Stock as of July 15, 2024.

CODI’s cash distributions of common stock and preferred stock generally should constitute “qualified dividends” for U.S. federal income tax purposes if paid out of “earnings and income” (as determined under U.S. federal income tax principles), provided the required holding period is met. To the extent that the amount of the cash distribution exceeds the earnings and income, such distribution will be treated first as a tax-free return of capital in an amount equal to the holder’s adjusted tax basis in the shares and thereafter as a capital gain on the sale or exchange of such shares.

CODI expects, but is not certain, that all 2024 distributions will be treated as qualified dividends, provided the required holding periods are met. The final tax status of these amounts will be determined in early 2025 and communicated to shareholders when determination of earnings and income for 2024 is completed. The final tax status of the 2024 distributions may differ from this preliminary expectation.

About Compass Diversified (“CODI”)

Since its IPO in 2006, CODI has consistently executed on its strategy of owning and managing a diverse range of highly fungible middle market companies in the industrials, branded consumer goods and healthcare sectors. The Company leverages its durable capital base, long-term disciplined approach and actionable expertise to maintain controlling interests in all of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity to its subsidiaries, contributing to their financial and operational flexibility. CODI leverages the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently delivered strong returns through its culture of transparency, alignment and accountability. For more information, visit compassdiversified.com.

Forward-looking statements
This press release may contain certain forward-looking statements, including statements regarding the future performance of CODI and its subsidiaries. Words such as “believes,” “expects” 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 certain of these factors are set forth in the Risk Factors discussion in CODI’s Form 10-K filed with the SEC for the year ended December 31, 2023 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.

Investor Relations
Compass Diversified
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Gateway Group
Cody Slach
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The IGB Group
Leon Berman
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